Macro environment refers to all those external environment factors that immensely influence the business success, strategies, and decision making. These external factors that highly influence the business success are not controlled by the organization easily.
In the world of business, think of it like playing a video game. There are parts you can control, like your character and your strategy, and parts you can’t control, like the game’s rules or the other players. Businesses operate in different ‘environments’ – some they can control (like the inside of their business), and others they can’t (like the economy or laws). Let’s break it down:
Micro Environment:
- What It Is: This is the part of the game you can control. The micro environment is all about what happens inside your business. It’s like your character in the game – you decide how it moves, what skills it learns, and how it interacts with immediate challenges.
- Control: Business owners and managers are in charge here. They make choices about who to hire, what products to sell, and where to sell them. It’s like choosing your equipment and strategies in the game to win small battles.
Market Environment:
- What It Is: Now, imagine the other players in the game. The market environment is about the things that affect your business but are still kind of close, like competitors and suppliers.
- Control: You can influence this environment a bit. Think of it like trying to outsmart other players in the game. Businesses can improve their products or change prices to stay ahead of competitors. They also deal with suppliers, like choosing the right tools or allies in the game.
Macro Environment:
- What It Is: This is the part of the game you can’t control. The macro environment includes big, external factors like the economy, social trends, and laws – stuff that affects the whole game world.
- Control: Businesses can’t really control this. It’s like the game’s rules or sudden changes in the game world. These factors can make the game easier or harder, and businesses just have to adapt to them.
So, just like in a game, businesses control some things but also have to adapt to others they can’t control. This understanding helps business owners and managers make better decisions, just like a good gamer knows how to play their character and adapt to the game world.