Micro environment rcfers to th0se factors which are in the imncdiate environment of businessaffecting itsperformance. "These includes the following:
(i) Suppliers:In any organisation the suppliers ofraw materials and other inputs play a very vital rolc. Timely procurement of materiáls from suppliers enables continuity in production and reduces the cost ofmaintaining stock/ inventory.
(ii) Customers : The aim of any business is to satisfy the needs of its customers. The customer is the king and the fulcrum around which thebusiness revolves.
(iii) Competitors:All organisationsface competition at all levels such as local, national and global. Itis important for a business to understand its competitors and modify their business strategies in the face of competition.
(iv) Financiers :The financiers of a business which includes the debenture holders and financial institutions play a significant part in the running of a business. Their financial capability, policies strategies, attitude towards risk and ability to give non-financial assistance are all important to a business.
(v)Marketing Channel members:The marketing inter-mediaries serve as a connecting link between the business and its customers. The middlemen like dealers, wholesalers and retailers ensure transfer of product to customers. Insurance firm is another marketing intermediary which provides coverage for risk in business.
(vi) Public: This refers to any group like media group, citizen action group and local public which has an impact on the business. Many companies had to face closure due to actions by local public.

.The macro environment factors are as follows:
(1) Economic environment: The business is an integral part of the econonnic systenn prevalent in a nation. The nmultiple variables in the macro environnnent system include:
(a) he nature of economy baned on the stage of development.
(b) lhe nature ofcconomie system.
(c) he economic pollckes of he natlon.
(d) he cconomtic indlces.
(e) Developmentof financial market.
(f) he economicstructure.
(ii) Socio-Cultural environment: Social environment refers to the sunm total of factors of the society inwhich the business is located. It is dynamic and includes the behaviour of individuals, the role and inmportance of family, customs, traditions, beliefs and values, religion and languages, thc ethical values.
(iii) Political and Legal environment : The framework for running a business is given by the political and legal environment. The success of a business lies in its ability to adapt and sustain to political and legal changes.
(iv) Geo-physical environment : Thenatural, geographical and ecological factors have a bearing onthe business. These are as follows :
(a) the availability of natural resources
(b) the weather and climatic conditions
(c) topographical factors
(d) ecological factors
(e) location of certain industries
(f) availability of natural harbours.
(v) Technological environment:  The development in the IT and telecommunications has created a global market. Technology is widely used in conducting market research for understanding the special needs ofthe customer..