Q.What is meant by micro environment? Name any three of its components.

The micro environment covers the players that interact directly and frequently with a business, closer to it than the broader economy-wide forces. …

The micro environment, also called the task environment, consists of those factors that are located close to a business and interact with it directly and on a regular basis. Unlike the macro environment, whose forces are broad and impersonal, micro-environment players often have a direct working relationship with the firm. The main components are: customers, whose needs and buying power decide what the firm can sell; competitors, whose pricing and strategies push the firm to remain efficient; suppliers, who provide the raw materials and inputs the firm depends on; marketing intermediaries such as wholesalers, retailers, and distributors, who carry the firm's products to the final consumer; and the public, including local communities, media, and financial institutions, whose opinion shapes the firm's reputation. A firm typically studies and manages its …

Students sometimes list macro-environment items (like 'government policy' or 'technology') as micro-environment components. Remember: micro-environment factors are specific to the firm's ow …