• Business
  • Finance
  • Banking
  • Education
  • General
  • Law
  • Science
  • IT
  • English

Key Differences

Know the Differences & Comparisons

Difference Between Micro and Macro Environment

Micro Environment Vs Macro EnvironmentEvery business organization is a part of the business environment, within which it operates. No entity can function in isolation because there are many factors that closely or distantly surrounds the business, which is known as a business environment. It is broadly classified into two categories, i.e. microenvironment, and macro environment. The former affects the working of a particular business only, to which they relate to, while the latter affects the functioning of all the business entities, operating in the economy.

While microenvironment has a direct impact on business activities, the macro environment is a general business environment, which influences all business groups at large. It is important to learn the business environment, so as to understand the effect of various forces on business. Take a read of the given article to know the difference between microenvironment and macro environment.

Content: Micro Environment Vs Macro Environment

  1. Comparison Chart
  2. Definition
  3. Key Differences
  4. Video
  5. Conclusion

Comparison Chart

Basis for ComparisonMicro EnvironmentMacro Environment
MeaningMicro environment is defined as the nearby environment, under which the firm operates.Macro environment refers to the general environment, that can affect the working of all business enterprises.
ElementsCOSMIC, i.e. Competitors, Organization itself, Suppliers, Market, Intermediaries and Customers.PESTLE, i.e. Political, Economic, Socio-cultural, Technological, Legal and Environmental.
Nature of elementsSpecificGeneral
Are these factors controllable?Yes, but to some extent onlyNo
InfluenceDirectly and RegularlyIndirectly and Distantly

Definition of Micro Environment

Microenvironment refers to the environment which is in direct contact with the business organization and can affect the routine activities of business straight away. It is associated with a small area in which the firm functions.

The microenvironment is a collection of all the forces that are close to the firm. These forces are very particular for the said business only. They can influence the performance and day to day operations of the company, but for the short term only. Its elements include suppliers, competitors, marketing intermediaries, customers and the firm itself.

Micro Environment

Micro Environment

  • Suppliers are the ones who provide inputs to the business like raw material, equipment and so on.
  • Competitors are the rivals, which compete with the firm in the market and resources as well.
  • Marketing intermediaries may include wholesalers, distributors, and retailers that make a link between the firm and the customers.
  • Customers / Consumers are the ones who purchase the goods for their own consumption. They are considered as the king of business.
  • The firm itself is an aggregate of a number of elements like owners like shareholders or investors, employees and the board of directors.

Definition of Macro Environment

The general environment within the economy that influences the working, performance, decision making and strategy of all business groups at the same time is known as Macro Environment. It is dynamic in nature. Therefore it keeps on changing.

It constitutes those outside forces that are not under the control of the firm but have a powerful impact on the firm’s functioning. It consists of individuals, groups, organizations, agencies and others with which the firm deals during the course of its business.

Macro Environment

Macro Environment

The study of Macro Environment is known as PESTLE Analysis. PESTLE stands for the variables that exist in the environment, i.e. Political, Economic, Socio-cultural, Technological, Legal and Environmental. These variables, consider both economic and non-economic factors like social concerns, government policies, family structure, population size, inflation, GDP aspects, income distribution, ethnic mix, political stability, taxes, and duties, etc.

Key Differences Between Micro Environment and Macro Environment

The following are the major difference between micro and macro environment:

  1. The microenvironment is the environment which is in immediate contact with the firm. The environment which is not specific to a particular firm but can influence the working of all the business groups is known as Macro Environment.
  2. The factors of the microenvironment affect the particular business only, but the macro-environmental factors affect all the business entities.
  3. The microenvironmental factors are controllable by the business but to some extent only. However, the macroeconomic variables are uncontrollable.
  4. The elements of the microenvironment affect directly and regularly to the firm which is just opposite in the case of the macro environment.
  5. The study of the microenvironment is described as COSMIC analysis. Conversely, PESTLE Analysis is a study of the macro environment.

Video: Micro Vs Macro Environment

Conclusion

Microenvironment and macro environment, both cover the overall environment of business. So, they are more complementary rather than contradictory. The study of these environments will help to know the strength, weakness, opportunity and threat of business.

You Might Also Like:

Micro Vs Macro EconomicsDifference Between Micro and Macro Economics internal vs external environmentDifference Between Internal and External Environment Business Risk vs Financial RiskDifference Between Business Risk and Financial Risk Shareholder Vs StakeholderDifference Between Shareholders and Stakeholders Difference Between Domestic and International Business Difference Between Strategic Planning and Operational Planning

Comments

  1. Preksha says

    January 12, 2017 at 11:34 am

    Wonderfully written.

    Reply
  2. Preksha says

    January 12, 2017 at 11:35 am

    In which category would service provider come?

    Reply
    • Surbhi S says

      January 12, 2017 at 12:15 pm

      Micro Environment

      Reply
      • samuel onyema says

        March 23, 2019 at 3:11 am

        can you help me with the Harvard referencing of your journal Difference between micro and macro environment

        Reply
  3. luthando says

    January 23, 2017 at 12:48 am

    Wonderfully written it makes sense

    Reply
  4. Timothy says

    March 4, 2017 at 9:03 pm

    Thanks

    Reply
    • Adane zewude says

      March 22, 2023 at 5:24 am

      Good view and written excellent definition

      Reply
  5. ntongo dianah says

    May 31, 2017 at 2:49 pm

    thank you it was on important value for my research

    Reply
  6. Siddharth Deshpande says

    December 20, 2017 at 8:19 pm

    Thank you so much for the article! Very well stated!

    Reply
  7. Arjit Sawhney says

    February 19, 2018 at 3:56 pm

    Far better than reading boring books with so much repetition. Thank you 🙂

    Reply
  8. Sesilie says

    February 23, 2018 at 4:48 pm

    Its helpful for my assignment

    Reply
  9. Henrietta Freeman says

    April 11, 2018 at 10:22 pm

    Well written & easy to understand

    Reply
  10. Sarah says

    February 11, 2019 at 2:56 pm

    Well written and it will definitely assist with my strategy module this year. thank you.

    Reply
  11. Tayo says

    February 23, 2019 at 4:30 am

    Quiet helpful.

    Reply
  12. Shery says

    April 9, 2019 at 11:23 am

    Easy and well written. It helped me a lot with my midterms, thank you :”D

    Reply
  13. ayo says

    July 2, 2019 at 3:08 pm

    It is very useful

    Reply
  14. Malith says

    July 8, 2019 at 1:04 am

    This is very nice and easy to understand. This helps me a lot to do my assignment

    Reply
  15. Maureen says

    August 17, 2019 at 10:30 pm

    The micro and macro environment that influence the business. I require reasons. please help me sir.

    Thank you.

    Reply
  16. BETTY says

    March 25, 2020 at 10:34 pm

    helpfull but i have to relate this to law enforcement enviroment

    help with Havard referencing

    Reply
  17. Isagani says

    November 27, 2020 at 5:26 am

    Thank you. It’s a big help to my research

    Reply
  18. Abena says

    November 29, 2020 at 5:51 pm

    This is a very, very clear article that has clarified the differences between the micro and macro environment. I found the advice to think of the environments as complementary rather than contradictory to be especially helpful. Thank you!

    Reply
  19. Matildah Chileshe says

    December 8, 2020 at 8:34 am

    wonderfully written and easy to understand.

    Reply
  20. Bright Musonda Kaoma says

    February 7, 2022 at 12:00 pm

    Thank you so much, this has added value to my assignment

    Reply
  21. Ivan says

    March 3, 2022 at 3:30 am

    It is short and well-structured. Very useful for beginners!

    Reply
  22. Donewell Chauke says

    June 16, 2022 at 1:48 am

    good deal,,i found everything i have been gasping for,,

    Thank yóu Author ❤️❤️❤️

    Reply
  23. Mary khoviwa says

    July 17, 2022 at 4:44 pm

    It is well explained. It has covered all elements needed in the topic. It is indeed helpful for all business players

    Thank you

    Reply
  24. wahab cheema says

    December 2, 2022 at 11:53 am

    Thanks for your information. I am read your article and I am very impressed.

    Reply
  25. Arielle Boyd says

    January 16, 2023 at 6:08 am

    Thanks for your information. I have read your article and I think there was a lot of information provided.

    Reply
  26. Tucker@mubs says

    January 21, 2023 at 5:55 am

    Very helpful summarized information. Thank you 😊

    Reply
  27. M.Tanvir says

    January 30, 2023 at 1:48 pm

    Thanks , This information is very helpful for everyone

    Reply
  28. Muhammad Adnan says

    March 19, 2023 at 12:41 pm

    very nice.

    Reply
  29. Zara Monster says

    October 16, 2023 at 3:16 pm

    This was good

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Top 5 Differences

  • Difference Between PERT and CPM
  • Difference Between Micro and Macro Economics
  • Difference Between Developed Countries and Developing Countries
  • Difference Between Management and Administration
  • Difference Between Qualitative and Quantitative Research



New Additions

  • Difference Between Deforestation, Reforestation and Afforestation
  • Difference Between Race and Ethnicity
  • Difference Between Customer Service and Customer Experience
  • Difference Between Human Capital and Human Development
  • Difference Between Systems Approach and Contingency Approach
  • Difference Between Industrial Relations and Employee Relations
  • Difference Between Introduction and Executive Summary
  • Difference Between Programmed and Non-programmed Decisions
  • Difference Between Depreciation and Devaluation of Currency
  • Difference Between Consumer Market and Business Market

Categories

  • Banking
  • Business
  • Education
  • English
  • Finance
  • General
  • IT
  • Law
  • Science
fb-follow youtube follow

Copyright © 2025 · Key Differences · Contact Us · About Us · Privacy