Macro Environment Analysis vs. Microenvironment Analysis

What's the difference.

Macro environment analysis and microenvironment analysis are both essential components of a company's strategic planning process. Macro environment analysis focuses on external factors that are beyond the control of the organization, such as economic conditions, political stability, and technological advancements. On the other hand, microenvironment analysis examines the internal factors that directly impact the company, such as customers, suppliers, competitors, and stakeholders. While macro environment analysis provides a broader perspective on the overall business environment, microenvironment analysis allows companies to identify specific opportunities and threats within their industry. Both analyses are crucial for developing effective strategies and staying competitive in the market.

AttributeMacro Environment AnalysisMicroenvironment Analysis
ScopeExternal factors that affect the organization as a wholeFactors that directly impact the organization and its operations
FocusIndustry trends, economic conditions, political factors, technological advancements, etc.Customers, suppliers, competitors, distributors, etc.
ImpactIndirect impact on the organizationDirect impact on the organization
ComplexityMore complex due to the wide range of factors involvedLess complex as it focuses on specific stakeholders

Further Detail

Introduction.

When it comes to analyzing the external factors that can impact a business, two key approaches are often used: Macro Environment Analysis and Microenvironment Analysis. Both of these methods are essential for understanding the external forces that can influence a company's operations and success. In this article, we will compare the attributes of Macro Environment Analysis and Microenvironment Analysis to highlight their differences and similarities.

Macro Environment Analysis

Macro Environment Analysis focuses on the broader external factors that can impact an organization. These factors are often beyond the control of the company and include economic, social, political, technological, environmental, and legal forces. By analyzing these macro-level factors, businesses can better understand the overall market conditions and trends that may affect their operations.

One key attribute of Macro Environment Analysis is its focus on the external environment as a whole. This approach allows businesses to gain a comprehensive understanding of the various forces at play in the market. Additionally, Macro Environment Analysis helps companies identify potential opportunities and threats that may arise from changes in the external environment.

Another important aspect of Macro Environment Analysis is its emphasis on long-term trends and developments. By looking at macro-level factors, businesses can anticipate future changes in the market and adjust their strategies accordingly. This proactive approach can help companies stay ahead of the competition and adapt to changing market conditions.

Overall, Macro Environment Analysis provides businesses with a broad perspective on the external forces that can impact their operations. By understanding these macro-level factors, companies can make informed decisions and develop strategies that are aligned with the overall market trends.

Microenvironment Analysis

Microenvironment Analysis, on the other hand, focuses on the specific external factors that directly impact a company's operations. These factors include customers, suppliers, competitors, and other stakeholders that have a direct influence on the business. By analyzing these micro-level factors, companies can better understand their immediate environment and make strategic decisions accordingly.

One key attribute of Microenvironment Analysis is its focus on the specific relationships and interactions that a company has with its stakeholders. By examining these micro-level factors, businesses can identify key opportunities for collaboration and partnership that can drive growth and success.

Another important aspect of Microenvironment Analysis is its emphasis on the immediate environment in which a company operates. By understanding the specific dynamics of their industry and market, businesses can tailor their strategies to meet the needs and expectations of their stakeholders.

Overall, Microenvironment Analysis provides businesses with a detailed understanding of the specific external factors that can impact their operations. By focusing on these micro-level factors, companies can develop targeted strategies that address the unique challenges and opportunities present in their immediate environment.

While Macro Environment Analysis and Microenvironment Analysis focus on different levels of external factors, they both play a crucial role in helping businesses understand and navigate the complexities of the market. Macro Environment Analysis provides a broad perspective on the overall market trends and forces, while Microenvironment Analysis offers a detailed understanding of the specific relationships and interactions that impact a company's operations.

  • Macro Environment Analysis focuses on the broader external factors that can impact a company, while Microenvironment Analysis looks at the specific external factors that directly influence a company's operations.
  • Macro Environment Analysis emphasizes long-term trends and developments in the market, while Microenvironment Analysis focuses on the immediate environment in which a company operates.
  • Both Macro Environment Analysis and Microenvironment Analysis are essential for businesses to make informed decisions and develop strategies that are aligned with the external forces that can impact their operations.

In conclusion, both Macro Environment Analysis and Microenvironment Analysis are valuable tools for businesses to understand and respond to the external forces that can impact their operations. By utilizing both approaches, companies can gain a comprehensive understanding of the market dynamics and develop strategies that are tailored to meet the challenges and opportunities present in their external environment.

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35 Micro Environmental Analysis Examples

🔝 top-10 micro environmental analysis examples, 🤔 what is micro environment in business, 📊 what are micro environmental factors, 🔎 what is a micro environment analysis, 🔧 micro environment analysis tools, 💡 essay ideas on micro environmental analysis.

Today, several internal and external factors come into play to drive sustainable growth for businesses. It takes seamless coordination and implementation between these elements to nurture the future development of a company.

Micro environmental analysis refers to internal factors like employees, customers, suppliers, shareholders, and competitors that lead to failure or success. Keep reading to learn more about it and find some excellent micro environment essay examples.

  • Marketing: Concept and Approaches
  • Coca-Cola Middle East: Coke Zero Marketing Strategy
  • Eastman Kodak Company's Marketing Analysis
  • Lolous Company's Marketing Plan
  • Atec Incorporation Marketing Plan
  • Marketing Techniques and Segmentation in Examples
  • Dior Company Marketing Strategies
  • Marks and Spencer Company's Marketing Principles
  • Toyota Motor Corporation's Marketing Plan
  • Eye2Go Company's Three Year Marketing Plan

Micro environment pinpoints an organizational environment that can directly influence day-to-day operations. It involves several internal forces that can lead to the success or failure of a company. Depending on the organizational issue, these internal factors are unique in nature. In fact, they can impact the company’s performance potential over time. 

In a competitive landscape, companies face a lot of challenges, and things get more complicated when internal micro environmental elements are distinctive.

Macro Vs. Micro Environment

It is more of a general environment that can impact all business functions.It refers to a close environment that dictates how the firm operates.
It is influenced by ( olitical, conomic, ocio-cultural, echnological, egal, and nvironmental) factors.It is influenced by COSMIC ( ompetitors, rganization, uppliers, arket, ntermediaries, and ustomers) factors.
Factors are uncontrollable.Factors are controllable.
It renders a distant and indirect impact.It renders regular and direct influence.

Suppliers can impact a company’s delivery network and customer value . Their reliability determines whether or not the business can maintain smooth operations. Typically, managers have to exercise full control over suppliers’ costs and availability. If the supply shortages and expenses are under control, the company won’t have to deal with customer dissatisfaction and decreased sales.

The Company

When reviewing micro environmental factors, it is crucial to consider top management, HR, finance, accounting, and research and development departments . There’s no rocket science – managers have to collaborate and bring stakeholders on the same page to make informed decisions and follow strategic plans.

Competitors

Competitors or rivals propel companies to improve their customer satisfaction and overall value. Businesses have to meet customers’ increasing demands and expectations to maintain a competitive edge in the market.

Marketing Intermediaries

In a standard value delivery network, marketing intermediaries play a crucial role for any company. Middlemen like merchants or agents help businesses find potential customers, whereas physical distribution entities like transportation and warehouses assist companies in stocking and moving goods.

In a company’s micro environment, customers are the most valuable actors. Companies need a solid value delivery system to engage customers and build long-term relationships to drive growth. Customer markets can include business, reseller, government, international, and consumer markets .

General Public

The general public is a potential group interested in the product or service offered by the company. The company can lose the general public’s interest if business offerings are not purposeful.

From a company’s perspective, the public falls into several categories:

  • media public,
  • citizen-action public,
  • financial public,
  • local public,
  • general public,
  • internal public.

A micro environment includes elements within a unique organizational environment. Micro doesn’t translate into a minor task or factor. It hints at one or more problems within a company and how often they can affect organizational growth .

Look at a micro environment analysis through the lens of the company rather than the industry. Technically, micro environment analysis refers to reviewed internal forces of a micro environment. It can be about the competitor, market, stakeholder, or supplier analyses.

A SWOT analysis is one of the most effective micro environment analysis tools. It helps you understand the strengths , opportunities , weaknesses , and threats of each internal force. You can use this method to paint a full picture of all internal elements that can influence the growth and performance of your business. SWOT analysis can work as a direct indicator to assess different organizational areas and determine if there’s been an improvement. An in-depth SWOT analysis helps organizations tackle challenges, threats, and avail opportunities.

Porter’s 5 Forces

Porter’s Five Forces refer to a model to review five key competitive factors that apply to all industries. This model makes it easier to spot the pros and cons of an industry. It includes the following:

  • Competitive rivalry in the same industry
  • Substitute threat of a product or service
  • The bargaining influence of customers
  • The bargaining influence of suppliers
  • The potential threat of new players in the market

Need some additional information? Check our more micro environment essay examples on the web page below.

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  • Marketing Plan for Kraft Foods Business essay sample: The marketing plan relates to Kraft Foods Incorporation which is a firm that operates within the United States food processing industry.
  • Toyota Prius, Green or Geek Machine-Case Study Business essay sample: The article examines the Toyota Prius hybrid car: what is the reason for its popularity, what challenges did Toyota face in its production and how it coped with them.
  • BEA19 Technologies Ltd: Opportunities in Sports Coaching Business essay sample: Essential GPS tracking devices are currently used in sports coaching to monitor athletes’ distance traveled and speed during a training session.
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  • The Unilever Group's Strategies for the Next Five Years Business essay sample: This paper provides a detailed analysis of the Unilever Group to determine the best strategies for the next five years.

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  • Product Lifecycle Analysis
  • Organizational Analysis
  • Stakeholders Analysis
  • Market Structure Analysis
  • STP Analysis
  • Benchmarking Analysis
  • Entrepreneur Feasibility Analysis
  • Functional Job Analysis
  • Spend Analysis
  • Corporate Reputation Analysis

Micro Environment Definition, Factors & Example

The micro environment in marketing includes all those micro factors that affect business strategy, decision making and performance. It is vital for business success to conduct macro environment and micro environment analysis before decision-making process. Macro environment f actors  include political, economic, social, technological, and legal factors. On the other hand, company micro environment factors include customers, suppliers, competitors, employees, shareholders and media.

Table of Contents

How Micro Environment Affect Business Decisions

Mostly, in the marketing environment, micro factors do not affect all the businesses in the industry in the same manner. The reason is that every business is different in size, capacity, financial resources, human resources and overall strategies.

For example, competitors affect the business decision-making process. MacBook Pro is a well-known brand of Apple Inc. Dell XPS 13 and HP Spectre 13 Laptops are giving Apple Inc. a tough time and certainly affect its decision making. Apple is already introduced a functional keys touch bar. It is possible that Apple Inc. introduces MacBook Pro with Intel Coffee Lake Processor in mid 2018 to compete with its rivals and sustain the customer base.

Examples of Micro Environment Factors Affect Business

The customers are the central part of any business as they tend to attract and retain most of the customers to generate revenue. Therefore, organizations must adopt a marketing strategy that attracts the potential customers and retains the existing customers by taking into consideration the wants and needs of customers and by providing the after sales services and value-added services.

Competitors

The competitors of an organization can have a direct impact on business strategies. The organization must know how to do a competitive analysis of competitors and have a competitive advantage.  An organization must understand, what value added services their competitor is providing or the unique selling point of their competitors. How they can differentiate from their competitors. What benefits a company can offer to the customers which competitors does not offer.

In other words, understand competitors marketing mix strategy i.e. product, price, placement, promotion, people, process and physical evidence. Other approaches for market competitive analysis is PEST Analysis , PESTLE Analysis and SWOT Analysis as well.

An organization must understand that unawareness of competitors can make it difficult beat the competitors and lead the market. It must know how competitors react when there is a change in market environment such as political and legal changes, technological change, change in consumers behaviours can impact their business. They should also analyze how their competitors are responding to market changes and what tactics they are using to come up with better planning to these changes.

For Instance, Videocon, BPL, Onida and others are competitors of Philip Television in Television Market. The other form of competition is “Product Form” in which customer seeks different features and functions in a product. For example, a customer is willing to purchase a two-wheeler car which can come with gears and without gear, automatic or manual. These are the features of product and services which customer would be considered during the purchase process.

Skilled employees can help an organization to achieve organizational goals and objectives. As skilled and experienced employees has expertise to support organization to get success. This begins with the hiring process and continues through regular and timely training and development sessions. The training and development process helps the employees to work effectively and efficiently in order to achieve the organizational goals, specifically in service sector.

To some extent employees affect business environment. If there is low motivation and low skilled employees, business would suffer as the employees would be least motivated towards sales.

Actions of a supplier can influence the business strategy, as they provide the materials for production. For instance, if their services will not reasonable and timely that will affect the production time and the sales due to delayed process of production.

If the supplier increases the prices of raw material they provide to the company, it will impact the marketing mix strategy of an organization, which will end-up with the increase in price of finished goods. Therefore keeping a strong relation with supplier can help a company in getting an edge over competitors.

Shareholders

Shareholders of an organization have an influence as the company want investors to increase for this they might make a decision to increase money by buoyant on stock market, i.e. shifting to public from private ownership. This change will pressure the company as the public shareholders seek returns on their investment.

The shareholders’ demand for raise in profit can influence the business success in longer-run. Therefore, it is important for top management to keep strong and better relations with shareholders to have a successful business on long-term basis.

Media and Social Media

The way media acts can make or break an organization. Organization should manage to keep a good relationship with media as whatever it shows will directly influence the organization business. If media will show positive aspect, this will increase the business of organization and vice-versa. In order to maintain good relations with media some organization do maintain a public relation department who manage events and deal with media on behalf of company

Organizations must understand the ways which they can reach their customers and have positive company and brand image in their mind. For this, some organization approaches newspapers to let people know about their business and some approach consumer television programs to have the attention of a large number of direct audience. These days social media applications are a good idea to reach customers in a more appropriate way i.e. Facebook, Youtube, Twitter and Instagram etc.

A story that has been done by the media on a one-off, could impact on a firms’ daily operations thus becoming that firms micro environment. However, a firm could be influenced to have long term operational decisions in a bid to avoid negative media stories.

It is not necessary that business will control microenvironment factors all the time. Since micro and macro environment affect marketing campaigns, companies should conduct environmental analysis before developing marketing strategy.

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Umar Farooq

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Business Jargons

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Micro Environment

Definition : Micro Environment, refers to the environment comprising of all the actors of an organization’s immediate environment which influences the performance of the company, as they have a direct bearing on the firm’s regular business operations.

The micro environment is popularly referred to as task environment or operating environment.

Elements of Micro Environment

The elements of the micro environment are closely associated with the company and they do not affect all the companies operating in the industry, in a similar manner, as some factors are specific to the firm.

So we can say that the micro environment is one which the firm addresses in its specific arena, such as the industry or the strategic group.

micro environment

Competitors

Competition is what keeps the firm thriving. Competitors are the rival sellers operating in the same industry. It must be noted that the nature and intensity of competition highly influence the firm’s products and services. Product Differentiation is something that helps the firm to beat the cut-throat competition in the market.

For a firm to survive competition it is required to keep a close watch on the competitors (both existing and potential) future moves and actions, so as to prepare in advance, as well as to predict the response of competitors to company’s moves. Moreover, competitor analysis also helps in maintaining or improving market share and position.

Suppliers are the one who provides inputs such as material, components, labour and other stock of goods to the firm, which is required to undertake manufacturing activities. when there is uncertainty as to the supply constraints, it usually builds pressure on the firms and they are required to maintain high inventories, which leads to cost increases.

Suppliers have the power to change the firm’s position in the market and its capabilities.

The relationship amidst the firm and its suppliers represents a power equation, based on the industry conditions and their dependence on each other.

The success of the organization greatly depends on how effectively the firm fulfils the needs and wants of the customers, which is profitable to the firm and also provides value to the customer. The firm needs to analyze what the customers expect from their products and services so that the firm can satisfy them.

It must be noted that without customers no business can survive for a long time. So, the primary objective of the firm is to create and retain customers, to keep itself going.

Intermediaries

Intermediaries refer to marketing intermediaries which cover agents, merchants, distributors, dealers, wholesalers, etc. that participate in the company’s supply chain, in stocking and transporting the goods from their source location to their destination.

It acts as a link between the business organization and the ultimate consumer.

Shareholders

Shareholders are the real owners of the company who invest their money in the company’s business, by purchasing the shares, for which they are paid a dividend every year as a return. Shareholders have the right to vote in the company’s general meeting.

Placing the right person at the right job and retaining them for the long term by keeping the staff motivated is very important for the strategic planning process. Training and development act as a guide to the firm’s employees which ensures an up-to-date workforce.

A qualified and competent workforce can help the firm to achieve success with little efforts.

We all know the power of media these days, it can make or break an organization or its products/services overnight.

Management of media whether electronic media, press media or social media is really important not just to create a positive and clean image of the company and its products in front of the audience but also to support the firm in building a good reputation in the market. The right use of media can do wonders for the company and boost its sales.

When the firm competes with the firm operating in the same industry, with the same micro environmental factors, the relative success of the company is based on the relative effectiveness of the company in dealing with these factors.

Related terms:

  • Monopolistic Competition
  • Porter’s Five Forces Model
  • Business Environment
  • Internal Environment
  • Macro Environment

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Kwanele says

April 24, 2021 at 6:43 pm

Who is the author of this article and when was it published?

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April 26, 2021 at 9:39 am

The author of this article is Surbhi S. and it was published on Feb 14, 2020

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November 6, 2021 at 8:12 pm

THANKS FOR THIS

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Thank you very much!

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great explanation

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8.4 A Firm's Micro Environment: Porter's Five Forces

  • What makes up a firm’s external micro environment, and what tools do strategists use to understand it?

A firm’s micro environment is illustrated in the green circle in Exhibit 8.4 . These entities are all directly connected to the firm in some way, and firms must understand the micro environment in order to successfully compete in an industry. All firms are part of an industry —a group of firms all making similar products or offering similar services, for example automobile manufacturers or airlines. Firms in an industry may or may not compete directly against one another, as we’ll discuss shortly, but they all face similar situations in terms of customer interests, supplier relations, and industry growth or decline.

Harvard strategy professor Michael Porter developed an analysis tool to evaluate a firm’s micro environment. Porter’s Five Forces is a tool used to examine different micro-environmental groups in order to understand the impact each group has on a firm in an industry ( Exhibit 8.6 ). Each of the forces represents an aspect of competition that affects a firm’s potential to be successful in its industry. It is important to note that this tool is different than Porter’s generic strategy typology that we will discuss later.

Industry Rivalry

Industry rivalry , the first of Porter’s forces, is in the center of the diagram. Note that the arrows in the diagram show two-way relationships between rivalry and all of the other forces. This is because each force can affect how hard firms in an industry must compete against each other to gain customers, establish favorable supplier relationships, and defend themselves against new firms entering the industry.

When using Porter’s model, an analyst will determine if each force has a strong or weak impact on industry firms. In the case of rivalry, the question of strength focuses on how hard firms must fight against industry rivals (competitors) to gain customers and market share. Strong rivalry in an industry reduces the profit potential for all firms because consumers have many firms from which to purchase products or services and can make at least part of their purchasing decisions based on prices. An industry with weak rivalry will have few firms, meaning that there are enough customers for everyone, or will have firms that have each staked out a unique position in the industry, meaning that customers will be more loyal to the firm that best meets their particular needs.

The Threat of New Entrants

In an industry, there are incumbent (existing) firms that compete against each other as rivals. If an industry has a growing market or is very profitable, however, it may attract new entrants . These either are firms that start up in the industry as new companies or are firms from another industry that expand their capabilities or target markets to compete in an industry that is new to them.

Different industries may be easier or harder to enter depending on barriers to entry , factors that prevent new firms from successfully competing in the industry. Common barriers to entry include cost, brand loyalty, and industry growth. For example, the firms in the airline industry rarely face threats from new entrants because it is very expensive to obtain the equipment, airport landing rights, and expertise to start up a new airline.

Brand loyalty can also keep new firms from entering an industry, because customers who are familiar with a strong brand name may be unwilling to try a new, unknown brand. Industry growth can increase or decrease the chances a new entrant will succeed. In an industry with low growth, new customers are scarce, and a firm can only gain market share by attracting customers of other firms. Think of all the ads you see and hear from competing cell phone providers. Cell phone companies are facing lower industry growth and must offer consumers incentives to switch from another provider. On the other hand, high-growth industries have an increasing number of customers, and new firms can successfully appeal to new customers by offering them something existing firms do not offer. It is important to note that barriers to entry are not always external, firms often lobby politicians for regulations that can be a barrier to entry. These types of barriers will be covered in greater depth in more upper level courses.

Threat of Substitutes

In the context of Porter’s model, a substitute is any other product or service that can satisfy the same need for a customer as an industry’s offerings. Be careful not to confuse substitutes with rivals. Rivals offer similar products or services and directly compete with one another. Substitutes are completely different products or services that consumers would be willing to use instead of the product they currently use. For example, the fast food industry offers quickly prepared, convenient, low-cost meals. Customers can go to McDonald’s, Wendy’s, Burger King, or Taco Bell—all of these firms compete against each other for business. However, their customers are really just hungry people. What else could you do if you were hungry? You could go to the grocery store and buy food to prepare at home. McDonald’s does not directly compete against Kroger for customers, because they are in different industries, but McDonald’s does face a threat from grocery stores because they both sell food. How does McDonald’s defend itself from the threat of Kroger as a substitute? By making sure their food is already prepared and convenient to purchase—your burger or salad is ready to eat and available without even getting out of your car.

Supplier Power

Virtually all firms have suppliers who sell parts, materials, labor, or products. Supplier power refers to the balance of power in the relationship between firms and their suppliers in an industry. Suppliers can have the upper hand in a relationship if they offer specialized products or control rare resources. For example, when Sony develops a new PlayStation model, it often works with a single supplier to develop the most advanced processor chip it can for their game console. That means its supplier will be able to command a fairly high price for the processors, an indication that the supplier has power. On the other hand, a firm that needs commodity resources such as oil, wheat, or aluminum in its operations will have many suppliers to choose from and can easily switch suppliers if price or quality is better from a new partner. Commodity suppliers usually have low power.

Buyer Power

The last of Porter’s forces is buyer power , which refers to the balance of power in the relationship between a firm and its customers. If a firm provides a unique good or service, it will have the power to charge its customers premium prices, because those customers have no choice but to buy from the firm if they need that product. In contrast, when customers have many potential sources for a product, firms will need to attract customers by offering better prices or better value for the money if they want to sell their products. One protection firms have against buyer power is switching costs , the penalty consumers face when they choose to use a particular product made by a different company. Switching costs can be financial (the extra price paid to choose a different product) or practical (the time or hassle required to switch to a different product). For example, think about your smartphone. If you have an iPhone now, what would be the penalty for you to switch to a non-Apple smartphone? Would it just be the cost of the new phone? Smartphones are not inexpensive, but even when cell phone service providers offer free phones to new customers, many people still don’t switch. The loss of compatibility with other Apple products, the need to transfer apps and phone settings to another system, and the loss of favorite iPhone features, such as iMessage, are enough to keep many people loyal to their iPhones.

Concept Check

  • Describe each of Porter’s Five Forces. What information does each provide a manager trying to understand her firm’s micro environment?

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  • Every Thing You Need to Know About Micro-environment!

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The business world as we see it today is more intense and competitive than ever before. In other words, the stakes for businesses were never this high and competition only gets fiercer each day. In such a scenario, organizations’ effectiveness in terms of strategic planning becomes a critical success factor for them.

Table of Contents

  • What is micro environment

Micro environment in business

  • Micro environment in marketing

Speaking of strategic planning, there are various dimensions that businesses take into account while realizing their strategic goals and objectives. These strategic goals explain the long-term plans that organizations have to ensure swift advancement and dominance in the industry. While there are various major considerations with respect to strategic planning, environmental analysis is a key objective for companies.

To explain, a lucid understanding of the internal environment, as well as the external environment corresponding to a company or industry, aids in setting business objectives and realizing the future course of action. The fact of the matter is that the external environment factors define the overall scenario in a specific industry as influenced by the macro environment.

In this blog, we delve further into understanding the conceptualization of the micro environment, the factors that are a part of the micro environment, and how they affect businesses. The blog highlights all the intricacies of micro environment in business and micro environment in marketing. So, let us get started with micro environment definition and contextual understanding.

What is micro environment?

Micro environment is a business term that refers to the direct factors existing within the company that can directly impact the operations and decision-making of the company. These factors play a crucial role in the context of a firm's business strategies and the setting of strategic business goals.

When a business creates a favourable operating environment, this will highlight various business opportunities for a firm, on the other hand, an unfavourable operating environment will point at the prevailing threats that a business needs to mitigate.

To further explain, the micro environment of an enterprise is inclusive of five prominent factors that include the following:

  • Competitors
  • Market intermediaries

As you can clearly identify, each of the above dimensions of micro-environment-factors is a crucial determinant in giving companies a clear direction with respect to strategic planning . Also, these factors directly affect the success and authority of a business in its corresponding industry.

This explains why organizations or business leaders associate such great significance with micro environment analysis to identify the immediate threats and opportunities in the operating environment. In fact, in this context, Porter’s Five Forces Analysis proves to be a highly effective and reliable strategic planning tool for the worthwhile assessment of the micro environment.

Probing further, the subsequent sections explain micro-environment-factors and sheds light on the influence of each micro environment factor on business strategies and business success.

Micro environment factors in business

For any business big or small, it is essential that the top management has great awareness of the operating environment. Any threat that a business does not identify in a timely manner can doom the business at a later stage. Similarly, any missed opportunity in the immediate environment could imply that the business missed out on scaling new heights. Having said that, for businesses, it is important to conduct a well-detailed micro environment analysis at regular intervals.

The bottom line is that an effective micro environment analysis facilitates strategic change management that could transform the destiny of an organization for the better. The role of the top management is not limited to realizing the threats and opportunities existing in the micro environment. The ultimate objective is to act upon those opportunities or threats to make a real difference in terms of business performance and success.

Now, let us comprehend how each dimension of micro-environment-factors can directly or indirectly impact an organization’s prospects of success. Besides, it also offers a lucid understanding of the reasons why organizations need to have their strategic goals and plans in alignment with the present state of micro environment factors.

Micro environment factors and their influence

Well, we already listed out the six verticals of micro environment that hold the key to micro environment analysis and subsequently, business planning. Now, let us find out in detail how each of these factors has a considerable influence.

1. Competitors

Competitor analysis not only helps companies to understand what is working well for their competitors but also helps them to realize the existing gaps in their own strategies. Having said that, for any firm, competitors make a vital part of the operating environment. Businesses can always learn from the strengths and weaknesses of their competitors.

Moreover, identifying and analyzing the competitors also helps companies to determine the degree of rivalry in the market. When the degree of competition or rivalry is high, the stakes are high too and there is no margin for error. For any firm, it is important to understand the magnitude of rivalry in the market or the operating environment so that they can set attainable goals for developing competitive advantages.

Moving forward, for a business, competition exists not only in the form of business rivals but also in terms of products and services. In a perfect competition market wherein all enterprises are offering identical products or services, consumers have readily available substitutes. Consumers can easily switch to new businesses or products when the threat of substitutes is high and consumer switching costs are low.

For instance, the degree of competition is high in the consumer goods market as all companies are equally placed and sell similar products. If you use the products of Unilever Global , making the switch to Procter & Gamble will not make much of a difference.

All in all, an analysis of competitors helps companies to recognize their competitive positioning in the market, the degree of rivalry, and the threat of substitutes from other companies or products. In accordance with the same, businesses formulate their strategies for expansion and growth. Lastly, with respect to assessing the competition in the market, realizing the threat posed by new players or emerging businesses is also vital.

2. Consumers

Let’s start with a simple question, can a business advance without consumers? Can a business scale new heights without acquiring new customers at all times? Certainly, the answer to both these questions is well known to all of us.

One of the most important objectives of any business is to create incremental consumer demand. As it is often said, “consumers are the king” and this fact will stay forever. With respect to the analysis of micro-environment-factors, it is not only important to realize consumer preferences and needs but also to recognize the bargaining power of consumers. If we look at the state of affairs in the contemporary business world, everything revolves around consumer experiences. Businesses are paying more heed to consumer feedback than ever before in the bid to acquire and retain customers with exceptional experiences.

However, in the context of micro-environment-factors specifically, the primary objective of an enterprise is to analyze the bargaining power of consumers. To explain, the bargaining power of consumers is a direct measure of the kind of influence that consumers can have on a company’s product quality, pricing strategies, and functional efficiency.

When consumers assume enormous bargaining power, they can exert massive influence on companies to offer the highest quality at the lowest possible price. But the real question is, under what conditions is the bargaining power of consumers high? What are the substantial determinants of the bargaining power of buyers?

The factors that influence the bargaining power of buyers are listed below:

1. The number of buyers

When there is a large number of buyers in the market, the bargaining power of buyers is low. However, when there are only a few buyers and each buyer holds a substantial market share, the bargaining power of buyers is very high.

2. Switching costs

Consumer switching cost simply refers to the additional costs that consumers will have to incur when they switch to a new brand or product. For consumers, switching costs is a major consideration. Having said that, if the switching cost is low, consumers assume a greater bargaining power as they can switch to a new brand or product easily. On the contrary, if switching costs are too high, the bargaining power of consumers reduces significantly.

For instance, the switching costs for buyers are almost negligible in the consumer goods and grocery market. However, in the automobile market or the consumer electronics market, the switching costs can be too overwhelming for consumers.

3. The threat of backward integration

The bargaining power of consumers is high when buyers can exert great influence in terms of forcing backward integration. To explain, backward integration is the process by which companies buy suppliers or vendors in the supply chain.

4. Nature of commodities

In a market with standardized products, the bargaining power of buyers is high as the switching costs are low. However, in a market with large scale product differentiation, the consumer switching costs are high and hence the bargaining power is low.

3. Suppliers

Every business has a large magnitude of dependence on supply chain management and this is where the relationship between businesses and suppliers holds immense significance. Further, in the operational environment of a given firm, the bargaining power of suppliers can largely affect business operations and strategic planning for a sustainable future.

To explain, the bargaining power of suppliers in micro environment explains the extent to which suppliers in an industry can influence product quality, supply chain operations, and prices of firms. In contemporary times, we often hear about a global supply chain crisis that is affecting supply chains and production across all industries. In times like these where companies are at a disadvantage, suppliers assume massive bargaining power.

However, that is just one aspect of the various factors that determine the bargaining power of suppliers. These factors are listed below:

1. Availability of substitutes

The bargaining power of suppliers will be next to negligible if there is a large number of suppliers in the industry and replacements are easily available. However, when there are only a few suppliers and substitutes are not easily available, suppliers will have a much greater influence on companies

2. Reliance of suppliers on the industry

In case the suppliers rely solely on one industry for their profitability, their bargaining power will be low while the bargaining power of companies in the industry will be very high. On the flip side, the suppliers get revenue from various industries and are not entirely dependent on one market, the bargaining power of the suppliers will be high.

3. Switching costs for enterprises

Switching cost is not only a consideration for consumers but also for businesses. For enterprises, switching costs exist in terms of the additional costs to be incurred when they switch from one supplier to another. Having said that, if the switching costs are too high for companies, suppliers will assume greater bargaining power. Alternatively, if the switching costs are low and there are plenty of suppliers to choose from, the bargaining power of the suppliers will be low.

4. The threat of forwarding integration

Another major consideration with respect to the analysis of suppliers is whether they can exert the risk of forward integration or not. To explain, forward integration is the process through which companies look to reduce operational costs by purchasing supplier firms. By doing so, companies can eliminate third-party reliance on suppliers for distribution.

In the context of the operating environment of a company, the micro environment factor of people pertains to the local public, consumer rights groups, environmentalists, and other segments of the general public that can potentially affect a business and its success metrics.

Having said that, it is important for companies to maintain a positive relationship with the segments of the general public for positive public perception and to manage business reputation effectively. When businesses have a positive reputation among the general public inclusive of various interest groups, it is likely to attract new customers.

On the contrary, a negative public perception can dent the business and it may end up losing investors’ and customers’ trust. For instance, Starbucks has drawn a lot of flak in the past from environmental groups for its disposable plastic cups adding immensely to pollution. The criticism of Starbucks majorly led by environmentalist groups compelled the eco-friendly customers to switch to other brands. Hence, the company had to address the ethical issues pertaining to environmental neglect with immediate effect and introduce reusable paper cups.

5. Marketing intermediaries

Marketing intermediaries include middlemen or intermediary agencies that assist businesses in terms of promotion, selling, and distribution of their products. To further elaborate, marketing intermediaries include sellers, resellers, wholesalers, and other agents in the distribution channel.

Now, it is a well-known fact that businesses need to maintain an extensive network of sellers and wholesalers to ensure smooth distribution channels that are vital for revenue generation. Hence, companies need to analyze the marketing intermediaries and the value drawn from them on a regular basis to remain competitive. Also, they need to review their relationship with the marketing intermediaries at regular intervals to plug the gaps in the best interest of business objectives.

Now you will definitely have a crystal clear idea of the significance and impact of each factor that is taken into account while analyzing micro-environment-factors. In addition to the macro environment in business, it is equally important for businesses to analyze the micro environment that gives a clear picture of the immediate operating environment.

Proceeding further, the purpose of analyzing the micro environment is not limited to refining or developing operational strategies. Even from the marketing perspective, the analysis of the micro environment is imperative. Having said that, the ensuing section sheds light on all that you need to know about the micro environment in marketing.

What is micro environment in marketing?

The 4 Ps of Marketing also called the marketing mix include Product, Price, Place, and Promotion. Having said that, from the marketing perspective, each marketing strategy is centered around these 4 Ps. What we need to acknowledge is that the micro-environment factors mentioned above also have a huge impact on the 4Ps of marketing.

Marketing Mix 4 Ps Model

Needless to say, marketing is one of the core functionalities of every business. If we look around, the most successful business organizations in contemporary times also have the most innovative marketing strategies. The bottom line is that irrespective of whether it is a highly established brand like Nike or an emerging startup, effective marketing is indispensable.

For businesses to acquire new leads and convert customers at a swift pace, they need to work consistently on marketing objectives that include enhanced market share, increased brand awareness, product launch, market penetration, and so on. These marketing SMART Goals are directly linked with greater business success in terms of customer acquisition, revenue generation, and profitability.

What we need to understand is how the micro environment factors influence the product or service being offered by a business, the pricing strategies linked to the product, the places where the product is promoted, and the promotional strategies implemented by a company. So, let us comprehend in detail how each factor can have a substantial influence on a brand’s marketing.

The product quality of competitors and how competitors promote their products directly impact the marketing strategies of a company. Also, competitors’ pricing strategies influence a company’s pricing strategies.

Hence, in the formulation of marketing plans, companies undertake the objective of competitor analysis to identify the marketing channels that competitor firms are using. In fact, companies analyze the 4 Ps marketing mix of competitor firms on a regular basis to constantly optimize their marketing.

In contemporary marketing, companies are very watchful of each other’s digital marketing strategies and promotional offers. For instance, when one major firm in the industry runs discount campaigns, other companies also come up with special promotional offers for customers. For instance, when Zara is selling its products at discounted rates, the likes of H&M will follow the same strategy along with other apparel brands. This is how competitor firms influence each other’s marketing strategies and brand positioning.

As discussed above, consumers directly influence the product quality and pricing strategies of a firm. For any brand, it is important to not only analyze the bargaining power of customers but also to identify the changing consumer needs and offer them the best-fit products or services.

Having said that, as per the bargaining power of the customers, companies decide their pricing strategies. Companies are less likely to introduce products or services with premium pricing where the bargaining power of customers is too high. Moreover, subject to the changing preferences of the consumer and their expectations of quality, companies change their product development strategies.

Companies look to consistently optimize their products or introduce new products in the market to stay ahead of the changing consumer preferences. This explains why automotive companies introduce facelifts of their best-performing cars after every two to three years to cater to the changing consumer preferences.

Moreover, based on consumer behavior, companies decide their promotional strategies. For instance, if a substantial proportion of consumer interactions start online or through social media, companies will lay greater emphasis on SEO, social media marketing, and other digital marketing strategies for customer acquisition. To gain further insights into optimizing your social media marketing efforts, you can read more about the services offered by a reputable social media marketing agency.

Like consumers, suppliers can also have a direct influence on product quality and pricing strategies. In a market where suppliers have enormous bargaining power, they can exploit the pricing strategies of companies.

Let us try to understand this by taking the example of the current scenario in the automotive industry. As most of us know, the global automotive industry is facing unprecedented losses because of supply chain bottlenecks primarily related to semiconductor shortages. In times when the industry is largely hit by semiconductor shortages, suppliers are assuming greater power and are exploiting the input costs for companies. Consequently, there is a price hike in the industry and hence a downfall in sales.

Through this example, we can clearly comprehend how suppliers can make a massive difference in the marketing micro environment. If suppliers choose to hoard back the supplies, it will put immense pressure on the supply chain operations of a firm. Consequently, it will directly impact product strategies and pricing strategies.

In the modern era, most companies want to position themselves as a sustainable brand that cares for the environment. Marketing on the lines of being a purpose driven brand has become the need of the hour for companies. This is for the simple reason that brands’ public perception is directly linked to their growth and the sustenance of their competitive advantages.

When brands promote their products along the lines of sustainability, they try to set a positive narrative among the general public and environmentalist groups. The preferences of the modern consumers are changing and they are being more watchful of brand perceptions than in the past. To substantiate, as per Business Wire , almost 80 percent of modern consumers want to buy from brands that are perceived as environment-friendly.

This explains why most brands and businesses are now promoting greater transparency in their sustainable approaches. Almost every business now provides a sustainability report in the public domain and has set targets for carbon neutrality. In fact, sustainability or CSR initiatives are now at the epicenter of marketing campaigns for most businesses.

To cite an example, big brands like Adidas are running exclusive sustainability campaigns for proactive marketing. Brands are now using sustainability as a unique selling proposition and to maintain a positive brand image among the general public and environmental activists. They realize that not doing so may harm the perception of their business and they may begin to lose customers to relatively more sustainable brands.

To cite another example, in recent times, PETA, a globally renowned animal rights organization, launched a campaign against Gucci for exploiting animals and treating them unethically for their exotic skins. Given the fact that PETA enjoys global recognition and influence, the campaign dented the public image of Gucci, the consequences of which would have surely been felt in terms of customer attrition. Again, very recently, Gucci was under criticism one more time as PETA called out the brand for using wild animals for its advertising campaigns.

Hence, while setting marketing objectives and formulating marketing plans, companies need to be considerate of the public view as that may have a significant impact on the achievement of marketing goals. Marketing dashboards examples can provide valuable insights into public perception and help companies make informed decisions.

As discussed above, marketing intermediaries have a direct correlation with the promotion and distribution of products. Companies’ relationship with the network of wholesalers, sellers, distributors and retailers is a key determinant of marketing and related operations. Also, the marketing intermediaries may have a substantial influence on the product and pricing strategies.

To explain, if a company is selling inferior products with an overpriced strategy, most wholesalers, distributors, or retailers would not want to deal with the company. On the other hand, if a company is selling a high-quality product with a penetration pricing strategy , most retailers and wholesalers will happily associate with that product.

For wholesalers, retailers, and distributors, the sole purpose of collaboration will be their own profitability rather than the company’s profitability. Having said that, they will only be interested in qualities that have substantial demand in the market for their quality and unique features.

Recommended Readings

What is macro environment?

Change management models businesses should know

To encapsulate, while macro environment factors offer an in-depth understanding of the overall industrial environment with respect to a country or market, the micro environment factors explain the immediate operating environment that surrounds a firm. For effective strategic planning, substantial analysis of both macro environment and micro environment is necessary. The findings of environmental analysis help the companies not only identify the threats or opportunities but also to chart a course of action for the future.

What is the difference between micro and macro environment?

The term "micro environment" describes the immediate context in which a firm operates, including elements like suppliers, clients, rival businesses, and other stakeholders. It is the particular setting in which an organisation runs and over which it has some degree of power or influence.

On the other hand, the term "macro environment" refers to the broader, uncontrollable external elements, such as economic, technological, demographic, political, and cultural aspects, that have an impact on the business environment. These variables are frequently out of the company's hands, yet they can have a big impact on how it runs and how well it performs.

What are the tools used to analyse the micro environment?

Businesses use a number of micro environment tools, such as SWOT analysis , Porter's Five Forces analysis, PESTEL analysis , and customer analysis, to analyse their microenvironment. Businesses can discover their internal strengths and weaknesses as well as external opportunities and dangers by using a SWOT analysis.

By analysing the bargaining power of suppliers and customers, the threat posed by new competitors, the threat posed by substitutes, and the level of existing rivalry, Porter's Five Forces study aids firms in understanding the competitive environment. The political, economic, social, technical, environmental, and legal elements that could have an impact on the firm are taken into account by PESTEL analysis. Understanding a customer's requirements and preferences can help a business build better products and more effective marketing plans.

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6.4 A Firm’s Micro Environment: Porter’s Five Forces

  • What makes up a firm’s external micro environment, and what tools do strategists use to understand it?

A firm’s micro environment is illustrated in the green circle in Exhibit 6 .2 . These entities are all directly connected to the firm in some way, and firms must understand the micro environment in order to successfully compete in an industry. All firms are part of an industry —a group of firms all making similar products or offering similar services, for example automobile manufacturers or airlines. Firms in an industry may or may not compete directly against one another, as we’ll discuss shortly, but they all face similar situations in terms of customer interests, supplier relations, and industry growth or decline.

Harvard strategy professor Michael Porter developed an analysis tool to evaluate a firm’s micro environment. Porter’s Five Forces is a tool used to examine different micro-environmental groups in order to understand the impact each group has on a firm in an industry ( Exhibit 6 .4 ). Each of the forces represents an aspect of competition that affects a firm’s potential to be successful in its industry. It is important to note that this tool is different than Porter’s generic strategy typology that we will discuss later.

micro environment short essay

Industry Rivalry

Industry rivalry , the first of Porter’s forces, is in the center of the diagram. Note that the arrows in the diagram show two-way relationships between rivalry and all of the other forces. This is because each force can affect how hard firms in an industry must compete against each other to gain customers, establish favorable supplier relationships, and defend themselves against new firms entering the industry.

When using Porter’s model, an analyst will determine if each force has a strong or weak impact on industry firms. In the case of rivalry, the question of strength focuses on how hard firms must fight against industry rivals (competitors) to gain customers and market share. Strong rivalry in an industry reduces the profit potential for all firms because consumers have many firms from which to purchase products or services and can make at least part of their purchasing decisions based on prices. An industry with weak rivalry will have few firms, meaning that there are enough customers for everyone, or will have firms that have each staked out a unique position in the industry, meaning that customers will be more loyal to the firm that best meets their particular needs.

The Threat of New Entrants

In an industry, there are incumbent (existing) firms that compete against each other as rivals. If an industry has a growing market or is very profitable, however, it may attract new entrants . These either are firms that start up in the industry as new companies or are firms from another industry that expand their capabilities or target markets to compete in an industry that is new to them.

Different industries may be easier or harder to enter depending on barriers to entry , factors that prevent new firms from successfully competing in the industry. Common barriers to entry include cost, brand loyalty, and industry growth. For example, the firms in the airline industry rarely face threats from new entrants because it is very expensive to obtain the equipment, airport landing rights, and expertise to start up a new airline.

Brand loyalty can also keep new firms from entering an industry, because customers who are familiar with a strong brand name may be unwilling to try a new, unknown brand. Industry growth can increase or decrease the chances a new entrant will succeed. In an industry with low growth, new customers are scarce, and a firm can only gain market share by attracting customers of other firms. Think of all the ads you see and hear from competing cell phone providers. Cell phone companies are facing lower industry growth and must offer consumers incentives to switch from another provider. On the other hand, high-growth industries have an increasing number of customers, and new firms can successfully appeal to new customers by offering them something existing firms do not offer. It is important to note that barriers to entry are not always external, firms often lobby politicians for regulations that can be a barrier to entry. These types of barriers will be covered in greater depth in more upper level courses.

Threat of Substitutes

In the context of Porter’s model, a substitute is any other product or service that can satisfy the same need for a customer as an industry’s offerings. Be careful not to confuse substitutes with rivals. Rivals offer similar products or services and directly compete with one another. Substitutes are completely different products or services that consumers would be willing to use instead of the product they currently use. For example, the fast food industry offers quickly prepared, convenient, low-cost meals. Customers can go to McDonald’s, Wendy’s, Burger King, or Taco Bell—all of these firms compete against each other for business. However, their customers are really just hungry people. What else could you do if you were hungry? You could go to the grocery store and buy food to prepare at home. McDonald’s does not directly compete against Kroger for customers, because they are in different industries, but McDonald’s does face a threat from grocery stores because they both sell food. How does McDonald’s defend itself from the threat of Kroger as a substitute? By making sure their food is already prepared and convenient to purchase—your burger or salad is ready to eat and available without even getting out of your car.

Supplier Power

Virtually all firms have suppliers who sell parts, materials, labor, or products. Supplier power refers to the balance of power in the relationship between firms and their suppliers in an industry. Suppliers can have the upper hand in a relationship if they offer specialized products or control rare resources. For example, when Sony develops a new PlayStation model, it often works with a single supplier to develop the most advanced processor chip it can for their game console. That means its supplier will be able to command a fairly high price for the processors, an indication that the supplier has power. On the other hand, a firm that needs commodity resources such as oil, wheat, or aluminum in its operations will have many suppliers to choose from and can easily switch suppliers if price or quality is better from a new partner. Commodity suppliers usually have low power.

Buyer Power

The last of Porter’s forces is buyer power , which refers to the balance of power in the relationship between a firm and its customers. If a firm provides a unique good or service, it will have the power to charge its customers premium prices, because those customers have no choice but to buy from the firm if they need that product. In contrast, when customers have many potential sources for a product, firms will need to attract customers by offering better prices or better value for the money if they want to sell their products. One protection firms have against buyer power is switching costs , the penalty consumers face when they choose to use a particular product made by a different company. Switching costs can be financial (the extra price paid to choose a different product) or practical (the time or hassle required to switch to a different product). For example, think about your smartphone. If you have an iPhone now, what would be the penalty for you to switch to a non-Apple smartphone? Would it just be the cost of the new phone? Smartphones are not inexpensive, but even when cell phone service providers offer free phones to new customers, many people still don’t switch. The loss of compatibility with other Apple products, the need to transfer apps and phone settings to another system, and the loss of favorite iPhone features, such as iMessage, are enough to keep many people loyal to their iPhones.

CONCEPT CHECK

  • Describe each of Porter’s Five Forces. What information does each provide a manager trying to understand her firm’s micro environment?

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Micro-Environmental Analysis Of Apple Inc Essay Sample

Type of paper: Essay

Topic: Business , Market , Customers , Steve Jobs , Products , Apple , Company , Marketing

Published: 03/10/2020

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Apple is an American multinational company formed in 1976 by Steve Jobs and his friends S. Wozniak, and R. Wayne. Apple’s products brought revolution in personal computer and consumer electronic industry. Apple is well-known in world market for its innovative products. Micro-environmental analysis of the Apple will help in understanding direct impact of micro environment factors on the company, its operations and business performance. This paper discusses the impact of micro-environmental factors on the Apple Inc.

A micro-environmental analysis will analyze all internal and micro factors such as company, employees, suppliers, customers, competitors, and publics/ media.

The Company: Apple has achieved new heights of success under the guidance of Steve Jobs. Steve was great a leader with extraordinary management skills. The leadership style of Steve was mix of situational and transformational. Steve was aware how make employees efficient and satisfied. Steve developed a collaborative organizational environment where all employees can share their ideas freely and participate in decision-making process. Collaborative environment of Apple not only empowered employees but also helped organization in bringing innovation to market before its competitors (Badenhorst-Weiss et al.). Presently Apple is growing under the guidance of Tim Cook who is also following the steps of Steve Jobs and taking his legacy forward. Apple is holding strong financial position in the market with annual revenue of around 183 billion US$ (2014) (Apple Press). Net income of the company is around 40 billion US$ for 2014. Recent success of i6 and iOS 8 across the world also positively impacted brand image and cash flow of the company. Apple is always on the top in bringing innovative technology to the consumers, which has proven on various instances. Apple involved in offering large variety of consumer electronics and computers that fulfill different needs of the customers. The offerings of Apple includes: Mac, iPod, iPad, iPhone, iTunes, Apple watch, and Apple store. Innovations drives success of the organization, and all offerings of the Apple are one step ahead of its competitors (Apple). Human Resource/ Employees: Apple is aware that success of any organization cannot be achieved without effective human resource management. Each employee at Apple has clear allocation of responsibilities; they understand their role and deliver the service as per the standards established by the Apple. All managers treat their employees with respect and dignity. Managers coach their team members and provide all type of support, training to drive customer satisfaction and organizational growth. Apple also ensures that it provide ample opportunity of growth and learnings to its employees. Employees at Apple can freely share their problems and issues with their seniors. A healthy working environment at Apple resulted in mutual growth of stakeholders (Fernando). Suppliers: Apple has large supplier base which provides company high bargaining power. The suppliers of the company are located in different parts of the world i.e. China, India, and South Africa. Apple believe in empowering its suppliers by organizing capacity building and training programs. A healthy and close relationship with its suppliers enables company to manage supply chain efficiently and gain competitive advantages. Apple developed strict code of conduct for its suppliers which need to follow by the suppliers. Apple ensure that all suppliers follow code of conduct by conducting various audits through the year and across the locations. Apple ensures that even small components is best in quality (Apple). Customers: Apple delivers what it promise to its customers i.e. good quality, innovative technology, excellent functioning and competitive pricing. According to a study conducted J.D. Power, Apple scores highest when it comes to customer satisfaction with 85 percent delighted customers (GSM Arena). Apple achieved customer satisfaction by efficiently managing all processes starting from procuring equipment, production of goods, retailing of the products and after sales services. Competitors: Apple is operating in very competitive market. Major competitors of Apple are Samsung, Microsoft and Google. In Smartphone market Motorola, HP, HCL and Blackberry also giving competition to the Apple. In developing countries Apple’s products are considered as premium products due to high pricing, however, Samsung has variety of products that are capable to fulfill needs of the customers and suitable on their pockets. Developing countries have wide untapped market and huge potential of growth that is presently not targeted by the Apple. It is important for the Apple to increase its product range and develop products in low price range in order to gain market share. Presently Samsung is holding top position when it comes to market share in Smart phone market. Apple needs to work strategically in order to regain its top position especially when product life cycle is too short and dynamics of market are continuously changing. Publics: media, government, financial bodies, and other general public falls into this factor. Apple is effectively dealing government bodies by adhering with all rules and regulations established by the authorities. Media may have mix opinion towards Apple by criticizing its products. However, customers like Apple and feel proud after owning its products.

Works Cited

"Apple Press." October 2014. Apple. 21 October 2014. Badenhorst-Weiss, H., Brevis, T., and Cant, M. Business Management: A Contemporary Approach. Cape Town: Juta and Company Ltd., 2008. Fernando, A.C. Business Environment. New Delhi: Pearson Education India, 2011. "Supplier Responsibility." 2014. Apple. Online. 21 October 2014. "US customer satisfaction led by Apple, Samsung close second." 25 April 2014 . GSM Arena. 21 October 2014.

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  • Key Differences

Know the Differences & Comparisons

Difference Between Micro and Macro Environment

Micro Environment Vs Macro Environment

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

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:

  • 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.
  • The factors of the microenvironment affect the particular business only, but the macro-environmental factors affect all the business entities.
  • The microenvironmental factors are controllable by the business but to some extent only. However, the macroeconomic variables are uncontrollable.
  • The elements of the microenvironment affect directly and regularly to the firm which is just opposite in the case of the macro environment.
  • 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

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 Economics

Preksha says

January 12, 2017 at 11:34 am

Wonderfully written.

January 12, 2017 at 11:35 am

In which category would service provider come?

Surbhi S says

January 12, 2017 at 12:15 pm

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

luthando says

January 23, 2017 at 12:48 am

Wonderfully written it makes sense

Timothy says

March 4, 2017 at 9:03 pm

Adane zewude says

March 22, 2023 at 5:24 am

Good view and written excellent definition

ntongo dianah says

May 31, 2017 at 2:49 pm

thank you it was on important value for my research

Siddharth Deshpande says

December 20, 2017 at 8:19 pm

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

Arjit Sawhney says

February 19, 2018 at 3:56 pm

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

Sesilie says

February 23, 2018 at 4:48 pm

Its helpful for my assignment

Henrietta Freeman says

April 11, 2018 at 10:22 pm

Well written & easy to understand

February 11, 2019 at 2:56 pm

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

February 23, 2019 at 4:30 am

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July 2, 2019 at 3:08 pm

It is very useful

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

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.

March 25, 2020 at 10:34 pm

helpfull but i have to relate this to law enforcement enviroment

help with Havard referencing

Isagani says

November 27, 2020 at 5:26 am

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

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!

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You are here, micro essay lesson plan.

Title Micro Essay Lesson Plan

GRADE LEVEL

High School

Students will practice short form nonfiction writing by composing a micro essay describing how a piece of literature has influenced their understanding of the world around them. 

ANCHOR STANDARDS

CCSS.ELA-LITERACY.CCRA.W.3 CCSS.ELA-LITERACY.CCRA.W.4 CCSS.ELA-LITERACY.CCRA.W.5

PENNSYLVANIA CORE STANDARDS

ELA CC 1.4 B ELA CC 1.4 E ELA CC 1.4 F

  • Stories can shape our perspective on the world around us.
  • Writing is a multi-step process that involves gathering ideas, drafting, revising, editing, and rewriting.

ESSENTIAL QUESTIONS

  • How do writers vary writing when they compose for specific purposes and audiences?
  • How does the writing process strengthen writing?
  • How do writers use figurative and/or descriptive language to impact an audience?
  • Precision of language and the use of specific vocabulary are key factors to consider when writing.
  • Writing is a recursive process.

Theme Support Evidence Influence Voice Prose Poetry Cliché Colloquialism

Simple Sentence Compound Sentence Complex Sentence Imagery Audience Metaphor Simile Hyperbole

Synonym Tone Mood Fragmentation Repetition Action Verb Passive Voice

COMPETENCIES

  • Use the writing process to develop and strengthen writing.
  • Incorporate vivid and sensory details through word choice and literary devices.
  • Compose short form nonfiction with a sharp, distinct focus.

Writing utensil Paper Sticky notes Tape/tacks for wall (optional) Computers with Internet Access (optional) Micro Essay Rubric (optional)

SUGGESTED ONLINE RESOURCES

Brevity: A Journal of Concise Literary Nonfiction (" The Watch " by Lisa Groeb Braner)

SUGGESTED INSTRUCTIONAL PROCEDURES

The structure of a micro essay is used in many places: exams, presentations, application essays, blog posts, abstracts, and elevator pitches. Micro essays, or flash essays, utilize the classic essay form while highlighting the importance of word choice and clarity. Over the course of this lesson, students will be guided through a freewrite, draft, and and revision to create a piece under 500 words that responds to the prompt: "Describe how a piece of literature (fiction/nonfiction/poetry/play/graphic novel) has redefined your behavior, attitude, worldview, and/or personal perspective.”

CLASS PREPARATION

Prior to class, ask students to identify three pieces of published literature that resonate with them. These pieces could be fiction/nonfiction books, graphic novels, plays or poetry, but should be selected for their influence on the students. Request that they return to class with the titles of three pieces of literature. If available, invite the students to bring the texts to class.

BRAINSTORM/FREEWRITE

Begin class with a freewriting exercise. Each student will need several pieces of blank paper and a writing utensil. If desired, students may also type responses. Reminding students that they were asked to identify three pieces of literature, ask students to write the titles at the top of the page.

Establishing a focus.  Have students take a moment to quietly consider the three literary items they have chosen:

  • Why are these important to you?
  • How do/did they resonate with you?
  • How do these pieces of literature link to something within your life, your past, or your future?

Write these questions in a space where students can see them clearly and refer to them when freewriting.

Freewrite. Given these questions. invite students to freewrite (Elbow, 1-7) as follows:

Write for 7-10 minutes without stopping, rereading, or talking. Ignore all rules of grammar. Do not feel the need to write in complete sentences or with proper spelling. The goal is to get subconscious thoughts onto paper and increase the flow of thought. Even if one’s train of thought wanders, write the titles of three pieces repeatedly until the flow of ideas returns. Keep writing for the entire time.

As the teacher keeps track of the allotted time, students are to quietly freewrite. In the final minutes, invite students to finish their thoughts and set their pencils/pens down.

Review your writing . Take a few minutes and ask students to read their writing. Do their literature selections have anything in common? Any common thread or theme? Ask students to circle phrases or descriptions that they like. Invite students to share the common thread, fun phrases, or descriptions that emerged with the class.

Select one . Ask students: Which piece did you enjoy writing about more than others? Select one title and write it at the top of a new sheet of paper.

Invite students to linger on that piece of literature:

  • Envision the text – feel the heft of the book, see the cover or graphic art, imagine watching the play performance or hearing the poetry.
  • Recall the content of the piece. What stands out to you – the characters, language, or themes?
  • Consider the time period in which you read the piece of literature. Memories are often fragmented – what images, emotions, people, or settings come to mind?
  • How did the literature influence your understanding of the world around you? How did it challenge a belief, offer insight, or change your perspective?

Again, write these questions in a place where students can see them during the second freewrite.

Second freewrite. In this freewrite, the focus is on conveying the essence and importance of a selected piece of literature. Again, ask students to write for 7-10 minutes and conclude with an invitation to complete their thoughts.

Reread. Ask students to review their freewriting:

  • What phrases or images appeal to you?
  • Circle or highlight these to reference later when writing your first draft.

Think-Pair-Share . Either with a partner or as a class, invite students to share a bit of their freewrite:

  • What piece of literature did you choose?
  • How does this piece of literature speak to you?
  • The process of writing activates a retrieval process. What did you uncover, connect, or learn while writing?

TRANSITION TO MICRO ESSAY

These freewrites provide an initial planning thought process for the composition of a micro essay. A micro essay is a form of expository writing. It is a framed snapshot that emphasizes the economy of expression. In utilizing shorter paragraphs, the writer’s word choice and sentence structure become essential elements in the succinct communication of ideas.

For this micro essay, invite students to respond to the prompt:

Describe how a piece of literature (fiction/nonfiction/poetry/play/graphic novel) redefined your behavior, attitude, worldview, and/or personal perspective.

As with any form of writing, knowing the conventions of the form and practicing will improve writing. Share examples of micro essays. These could be from PACFTB Wordstruck , application essays, or selections from Brevity (consider “ The Watch ” by Lisa Groeb Braner).

Micro essays often open with little introduction and a great first sentence. The content, while minimal, is focused and the details provided create an image or emotion for the reader. In some instances, the writing follows an hourglass structure: opening with a broad statement or image, quickly narrowing to a distinct focus, and then connecting and ending broadly once again. The voice of the writer is distinctive and reflects a well-defined perspective.

Establishing first draft. In one sentence have students answer how this piece of literature redefined them. This sentence should guide the focus of the micro essay. The content of the micro essay will reveal the impact of the piece of literature on the writer. Writers are to assume that the audience is familiar with the selected piece of writing. Any references to the chosen text are to be used for illustration or connection.

Ask students to write the first draft in one sitting. The completed draft should be 300-500 words (approximately one page, single-spaced in 12-pt font). Concentrate only on a few select details that illustrate how the writer’s behavior, attitude, worldview, or personal perspective were altered by the piece of literature.

Homework. With a completed first draft, ask students to review their writing in a series of readings. This focused revision process examines content and organization as well as word choice. If desired, students can consider a third reading to focus upon style. As an alternative to homework, teachers may select to pair students together or to create stations for focused feedback using these criteria.

The feedback from these readings should be used to compose a final draft.

First Reading: Content and Organization

Goal: confirm the essay is focused, contains illustrative examples, and maintains reader interest.

  • Assume that readers are familiar with the text. Does the writing avoid summarizing the selected piece of literature?
  • Are there concrete personal examples that illustrate how this piece of literature redefined the writer?
  • Does the piece alter sentence structure to maintain interest (simple sentences, compound sentences, and complex sentences)?

Second Reading: Word Choice

Goal: confirm the essay is within word count and that word choice contributes to meaning and impact.

  • Consider the impact of revising for brevity. Does every sentence contribute to meaning? Omit duplicated concepts, excess explanations, clichés, and colloquialisms.
  • Review nouns and verbs for clear and precise word choice.
  • Review the verbs, are they action verbs? Circle conjugations of to be (am, is, are, was, were). Can sentences be written differently to remove the passive voice?

Bonus Reading: Style

Goal: refine the writing to enhance imagery, emotion, and voice.

  • Micro essays benefit from detail and imagery. What should your readers feel or know at the end of the piece? Consider how the use of literary devices, imagery, and pacing can influence the experience of the reader.
  • Simile and metaphor can deepen meaning or add personality. Consider how the use of sensory words, hyperbole, or simple repetition can enhance the desired tone and mood.
  • Concentrate on a few select details to create a single impression.

Gallery Walk . Remove names from final drafts and place the texts around the room, either on the wall or on desks to create a micro essay exhibit. Allow space for students to linger without crowding. Distribute five sticky notes to respond to the writing. 

These sticky note responses should assist the writer and offer feedback from the community. Suggested response phrases could be:

  • favorite lines/word choices: “I like…”
  • questions: “I wonder…”
  • connections: “This reminds me of...”

Students circulate through the “gallery” silently or with minimal conversation. When the allotted time has expired (approximately 20 minutes), ask students to return to their writing to review comments.

In a virtual setting, a gallery walk can be created through a shared document or storyboard.

Alternatives:

  • At times content can be personal. Students may select to have one or more entrusted readers review and comment upon their writing.
  • Using the optional rubric , students can review and grade a selected number of peer essays.
  • The optional rubric can be used for formal grading.

EXTENSION/FURTHER STUDY

Invite students to:

  • Submit to a flash nonfiction journal .
  • Create a nonfiction journal as a class.
  • Compose a letter to the author/poet/playwright of the selected piece of literature accompanied by the micro essay.

Braner, Lisa Groen. “ The Watch .” Brevity , Issue 33, Summer 2010.

Elbow, Peter. Writing Without Teachers . New York: Oxford UP, 1973, 1-7.

McClanahan, Rebecca. " The Soul of Brevity: Thirteen Ways of Looking at the Brief Essay ." Tampa Review , no. 43, 2012, pp. 117-123,155. 

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World Environment Day 2024: Check Short and Long Essay Ideas In English

World environment day essay in english: check this article for short and long essay ideas on world environment day. check 10 lines on world environment day, essay in 150, 200 and 250 words for students..

World Environment Day Essay for Students

Theme for World Environment Day 2024

World environment day essay for students, 10 lines on world environment day 2024.

  • World Environment Day is celebrated on June 5th each year.
  • The day was launched in 1973 to raise awareness about the pressing environmental issues.
  • Events include tree planting, clean-up drives, and seminars on pollution control.
  • A new theme is chosen every year to highlight a specific environmental challenge.
  • The reminds us that Earth is our only home and protecting it is a shared responsibility.
  • We can all make a difference by reducing waste, conserving resources, and living sustainably.
  • Small changes, like using reusable bags, recycling and reducing waste can add up to a healthier planet.
  • Let's celebrate Earth's beauty and commit to safeguarding its future for generations to come.
  • Together, we can build a greener, healthier world for all.
  • On this World Environment Day, we shouldpledge to be responsible citizens of our planet and make it a beautiful place to live.

World Environment Day 2024 Essay in 150 Words

World environment day 2024 essay in 200 words.

Celebrated on June 5th, World Environment Day highlights the importance of our environment. Established in 1973 after the Stockholm Conference, it brings global attention to environmental threats like pollution, climate change, and biodiversity loss. The UN chooses a distinct theme annually, focusing on a particular environmental challenge. Activities like tree planting, clean-up drives, and awareness campaigns are organized on this day.

World Environment Day connects to the UN's Sustainable Development Goals (SDGs) which aim for a future with poverty eradication, climate action, clean water and sanitation, sustainable production and consumption. These goals pave the way for a future where environment and development go hand-in-hand.

However, achieving these goals requires a significant shift in our behavior. We must move towards a more sustainable lifestyle, reducing our reliance on fossil fuels and embracing renewable energy sources. Simple changes like using public transport, conserving water, reducing plastic, and opting for reusable products can make a big difference. Businesses too, have a responsibility to adopt sustainable practices and reduce the environmental pollutants ejected by factories.

World Environment Day Essay: Some more lines to add

  • World Environment Day reminds us that even small changes in our daily lives can have a collective impact. Every plastic bag refused, every light switched off, and every tree planted contributes to a healthier planet.
  • Investing in a healthy environment isn't just about protecting endangered species; it's about securing a future with clean air, stable weather patterns, and abundant resources for generations to come.
  • Across the globe, communities are taking the initiatives to preserve the nature . From students organizing beach clean-ups to local businesses switching to eco-friendly packaging, these efforts serve as powerful examples of the positive change that's possible."
  • Let World Environment Day be more than just a single day of awareness. Let it be a catalyst for a lifelong commitment to protecting our planet. Together, we can build a future where humanity and nature flourish in harmony.
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Essay on Environment for Students and Children

500+ words essay on environment.

Essay on Environment – All living things that live on this earth comes under the environment. Whether they live on land or water they are part of the environment. The environment also includes air, water, sunlight, plants, animals, etc.

Moreover, the earth is considered the only planet in the universe that supports life. The environment can be understood as a blanket that keeps life on the planet sage and sound.

Essay on Environment

Importance of Environment

We truly cannot understand the real worth of the environment. But we can estimate some of its importance that can help us understand its importance. It plays a vital role in keeping living things healthy in the environment.

Likewise, it maintains the ecological balance that will keep check of life on earth. It provides food, shelter, air, and fulfills all the human needs whether big or small.

Moreover, the entire life support of humans depends wholly on the environmental factors. In addition, it also helps in maintaining various life cycles on earth.

Most importantly, our environment is the source of natural beauty and is necessary for maintaining physical and mental health.

Get the huge list of more than 500 Essay Topics and Ideas

Benefits of the Environment

The environment gives us countless benefits that we can’t repay our entire life. As they are connected with the forest, trees, animals, water, and air. The forest and trees filter the air and absorb harmful gases. Plants purify water, reduce the chances of flood maintain natural balance and many others.

Moreover, the environment keeps a close check on the environment and its functioning, It regulates the vital systems that are essential for the ecosystem. Besides, it maintains the culture and quality of life on earth.

The environment regulates various natural cycles that happen daily. These cycles help in maintaining the natural balance between living things and the environment. Disturbance of these things can ultimately affect the life cycle of humans and other living beings.

The environment has helped us and other living beings to flourish and grow from thousands of years. The environment provides us fertile land, water, air, livestock and many essential things for survival.

Cause of Environmental Degradation

Human activities are the major cause of environmental degradation because most of the activities humans do harm the environment in some way. The activities of humans that causes environmental degradation is pollution, defective environmental policies, chemicals, greenhouse gases, global warming, ozone depletion, etc.

All these affect the environment badly. Besides, these the overuse of natural resources will create a situation in the future there will be no resources for consumption. And the most basic necessity of living air will get so polluted that humans have to use bottled oxygen for breathing.

micro environment short essay

Above all, increasing human activity is exerting more pressure on the surface of the earth which is causing many disasters in an unnatural form. Also, we are using the natural resources at a pace that within a few years they will vanish from the earth. To conclude, we can say that it is the environment that is keeping us alive. Without the blanket of environment, we won’t be able to survive.

Moreover, the environment’s contribution to life cannot be repaid. Besides, still what the environment has done for us, in return we only have damaged and degraded it.

FAQs about Essay on Environment

Q.1 What is the true meaning of the environment?

A.1 The ecosystem that includes all the plants, animals, birds, reptiles, insects, water bodies, fishes, human beings, trees, microorganisms and many more are part of the environment. Besides, all these constitute the environment.

Q.2 What is the three types of the environment?

A.2 The three types of environment includes the physical, social, and cultural environment. Besides, various scientists have defined different types and numbers of environment.

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micro environment short essay

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micro environment short essay

Reinventing search with a new AI-powered Microsoft Bing and Edge, your copilot for the web

Feb 7, 2023 | Yusuf Mehdi - Corporate Vice President & Consumer Chief Marketing Officer

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The new Bing screenshot

To empower people to unlock the joy of discovery, feel the wonder of creation and better harness the world’s knowledge, today we’re improving how the world benefits from the web by reinventing the tools billions of people use every day, the search engine and the browser.

Today, we’re launching an all new, AI-powered Bing search engine and Edge browser, available in preview now at Bing.com , to deliver better search, more complete answers, a new chat experience and the ability to generate content. We think of these tools as an AI copilot for the web.

“AI will fundamentally change every software category, starting with the largest category of all – search,” said Satya Nadella, Chairman and CEO, Microsoft. “Today, we’re launching Bing and Edge powered by AI copilot and chat, to help people get more from search and the web.”

There are 10 billion search queries a day, but we estimate half of them go unanswered. That’s because people are using search to do things it wasn’t originally designed to do. It’s great for finding a website, but for more complex questions or tasks too often it falls short.

The new Bing and Edge – Your copilot for the web

We have brought together search, browsing and chat into one unified experience you can invoke from anywhere on the web, delivering:

  • Better search. The new Bing gives you an improved version of the familiar search experience, providing more relevant results for simple things like sports scores, stock prices and weather, along with a new sidebar that shows more comprehensive answers if you want them.
  • Complete answers. Bing reviews results from across the web to find and summarize the answer you’re looking for. For example, you can get detailed instructions for how to substitute eggs for another ingredient in a cake you are baking right in that moment, without scrolling through multiple results.
  • A new chat experience. For more complex searches – such as for planning a detailed trip itinerary or researching what TV to buy – the new Bing offers new, interactive chat. The chat experience empowers you to refine your search until you get the complete answer you are looking for by asking for more details, clarity and ideas – with links available so you can immediately act on your decisions.
  • A creative spark. There are times when you need more than an answer – you need inspiration. The new Bing can generate the content to help you. It can help you write an email, create a 5-day itinerary for a dream vacation to Hawaii, with links to book your travel and accommodations, prep for a job interview or create a quiz for trivia night. The new Bing also cites all its sources, so you’re able to see links to the web content it references.
  • New Microsoft Edge experience. We’ve updated the Edge browser with new AI capabilities and a new look, and we’ve added two new functionalities: Chat and compose. With the Edge Sidebar, you can ask for a summary of a lengthy financial report to get the key takeaways – and then use the chat function to ask for a comparison to a competing company’s financials and automatically put it in a table. You can also ask Edge to help you compose content, such as a LinkedIn post, by giving it a few prompts to get you started. After that, you can ask it to help you update the tone, format and length of the post. Edge can understand the web page you’re on and adapts accordingly.

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Bing chat screenshot

Reinventing search with AI

The new Bing experience is a culmination of four technical breakthroughs:

  • Next-generation OpenAI model . We’re excited to announce the new Bing is running on a new, next-generation OpenAI large language model that is more powerful than ChatGPT and customized specifically for search. It takes key learnings and advancements from ChatGPT and GPT-3.5 – and it is even faster, more accurate and more capable.
  • Microsoft Prometheus model . We have developed a proprietary way of working with the OpenAI model that allows us to best leverage its power. We call this collection of capabilities and techniques the Prometheus model. This combination gives you more relevant, timely and targeted results, with improved safety.
  • Applying AI to core search algorithm . We’ve also applied the AI model to our core Bing search ranking engine, which led to the largest jump in relevance in two decades. With this AI model, even basic search queries are more accurate and more relevant.
  • New user experience . We’re reimagining how you interact with search, browser and chat by pulling them into a unified experience. This will unlock a completely new way to interact with the web.

These groundbreaking new search experiences are possible because Microsoft has committed to building Azure into an AI supercomputer for the world, and OpenAI has used this infrastructure to train the breakthrough models that are now being optimized for Bing.

Microsoft and OpenAI – innovating together, responsibly

Together with OpenAI, we’ve also been intentional in implementing safeguards to defend against harmful content. Our teams are working to address issues such as misinformation and disinformation, content blocking, data safety and preventing the promotion of harmful or discriminatory content in line with our AI principles .

The work we are doing with OpenAI builds on our company’s yearslong effort to ensure that our AI systems are responsible by design. We will continue to apply the full strength of our responsible AI ecosystem – including researchers, engineers and policy experts – to develop new approaches to mitigate risk.

Live today in limited preview, expanding to millions soon

The new Bing is available today in a limited preview on desktop, and everyone can visit Bing.com today to try sample queries and sign up for the waitlist. We’re going to scale the preview to millions in the coming weeks. A mobile experience will also be in preview soon.

We’re excited to put the new Bing and Edge into the real world to get the critical feedback required to improve our models as we scale.

Related links:

Amy Hood, Microsoft executive vice president and chief financial officer, will host a conference call with investors at 2:30 p.m. PT.

Brad Smith, Microsoft vice chair and president: Meeting the moment: advancing the future through responsible AI

Learn more about advertising on the new Bing

More information about the announcement

Tags: AI , Bing , Microsoft Edge

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micro environment short essay

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COMMENTS

  1. Macro Environment Analysis vs. Microenvironment Analysis

    Macro Environment Analysis provides a broad perspective on the overall market trends and forces, while Microenvironment Analysis offers a detailed understanding of the specific relationships and interactions that impact a company's operations. Macro Environment Analysis focuses on the broader external factors that can impact a company, while ...

  2. Marketing and Micro Environment Free Essay Example

    Marketing and Micro Environment. Marketing is a process of creating, communicating, and delivering value to the customer. It is a set of activities that are designed to create a specific outcome. The Marketing Mix consists of four key elements: product, price, promotion, and place. Effective marketing incorporates macro and micro-marketing ...

  3. 35 Micro Environmental Analysis Examples

    Business essay sample: The current report is going to explore the key impacts of micro- and macroeconomic factors on Tesla Inc. using PESLE and SWOT analyses. Business essay sample: This paper is about the ongoing economic meltdown caused by the credit crunch in the US and UK economies since the winter of 2007.

  4. Micro Environment: Customers, Competitors, Media

    The micro environment is the operating environment of the firm. This is because the functioning of the micro environment has a direct and immediate bearing on the company. They are more interlinked with the company than macro environmental factors. Let us take a look at some of the most important and common elements of the micro environment.

  5. Micro Environment Definition, Factors & Example

    The micro environment in marketing includes all those micro factors that affect business strategy, decision making and performance. It is vital for business success to conduct macro environment and micro environment analysis before decision-making process. Macro environment f actors include political, economic, social, technological, and legal ...

  6. What is Micro Environment? definition and elements

    Micro Environment. Definition: Micro Environment, refers to the environment comprising of all the actors of an organization's immediate environment which influences the performance of the company, as they have a direct bearing on the firm's regular business operations. The micro environment is popularly referred to as task environment or ...

  7. 8.4 A Firm's Micro Environment: Porter's Five Forces

    A firm's micro environment is illustrated in the green circle in Exhibit 8.4. These entities are all directly connected to the firm in some way, and firms must understand the micro environment in order to successfully compete in an industry. All firms are part of an industry —a group of firms all making similar products or offering similar ...

  8. A holistic overview of micro environment in business

    Micro environment factors and their influence. Well, we already listed out the six verticals of micro environment that hold the key to micro environment analysis and subsequently, business planning. Now, let us find out in detail how each of these factors has a considerable influence. 1. Competitors.

  9. PDF The micro environment TOPIC

    short-term results. Control shop floor actions. Direct results. Correction of first line discrepancies. The role and importance of the functions within the organisation The role and importance of the eight business functions must be seen as different aspects of the same element in the micro environment of the organisation. Every

  10. 6.4 A Firm's Micro Environment: Porter's Five Forces

    Harvard strategy professor Michael Porter developed an analysis tool to evaluate a firm's micro environment. Porter's Five Forces is a tool used to examine different micro-environmental groups in order to understand the impact each group has on a firm in an industry (Exhibit 6.4). Each of the forces represents an aspect of competition that ...

  11. Micro-Environmental Analysis Of Apple Inc Essay Sample

    A micro-environmental analysis will analyze all internal and micro factors such as company, employees, suppliers, customers, competitors, and publics/ media. The Company: Apple has achieved new heights of success under the guidance of Steve Jobs. Steve was great a leader with extraordinary management skills.

  12. Micro Environment Essay Examples

    Micro Environment Essays. Marks & Spencer Group PLC. Executive Summary Marks & Spencer Group PLC operates under the Food and Clothing & Home segments, with over 950 outlets within the UK. Despite the difficult economic conditions and new consumer tastes for the 2021 year, M&S has earned $14.3 billion, revealing its ability to persist in an ...

  13. The Micro Environment

    The micro environment is also known as Porter's Five Forces of Competition. The macro environment is primarily concerned with major issues and upcoming changes in the environment. The analysis looks at five areas of interest, which are 1) Power of the Buyers; 2) Power of the Suppliers; 3) Threat of Substitute Products; 4) Threat of New ...

  14. Introduction To Macro And Micro Environment Marketing Essay

    There are some following reasons. Strengths: McDonald's is the No.1 fast food company by 5.6%sales growth, 2007 (11,409 million). The main target is focus on customer choice, reasonable value and great service. The company has to investment mostly for supporting to its franchise network.

  15. Difference Between Micro and Macro Environment

    Micro 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. COSMIC, i.e. Competitors, Organization itself, Suppliers, Market, Intermediaries and Customers. PESTLE, i.e. Political, Economic, Socio-cultural ...

  16. Micro and macro environments essay + differences (ch

    An organization is a part of a large entity known as the business environment. These environments are classified into two categories, micro environment and macro environment. Micro environment refers to the environment which is in direct contact with the business organization and can affect the routine activities of business straight away.

  17. Introduction To The Shoprites Micro Environment

    Introduction Spur's Micro Environment: Spur's vision is to be the best business there is in the same industry as theirs. (to be the best family restaurant). Their mission is to be devoted to both their employees and their customers and to provide food that is up to standard, at all times. 'Our vision is to be the best family sit-down ...

  18. Business Studies-Micro environment

    Short-term stepsstepsstepssteps of how a goal will be reached. 1 Organisational culture. ... Micro environment. Question 5: Essay questions. 5 Phiwe heard that there is a new Consumer Protection Act and a National Credit Act. She needs to known how these Acts will affect the purchasing department. Discuss the National Consumer Protection Act ...

  19. Essay On Micro Environment

    Micro environmental factors create one of two parts of the external environment of a company. Micro environmental factors include suppliers, resellers, customers, competition and the general public (Marketing Environment Definition Factors & Examples, 2016). Market competition has played a tremendous role in Walmart's success.

  20. Micro-Environment Analysis Essay Examples

    Micro-Environment Analysis Essays. Shgardi Company Analysis. Introduction Due to the competitive nature of the Shgardi Company, it is looking into developing a comprehensive digital marketing strategy. This paper aims to analyze the various factors affecting the company's digital presence and develop a plan to help it achieve its goals. The ...

  21. Micro Essay Lesson Plan

    The structure of a micro essay is used in many places: exams, presentations, application essays, blog posts, abstracts, and elevator pitches. Micro essays, or flash essays, utilize the classic essay form while highlighting the importance of word choice and clarity. Over the course of this lesson, students will be guided through a freewrite ...

  22. World Environment Day 2024: Check Short and Long Essay Ideas In English

    World Environment Day Essay in English: Check this article for short and long essay ideas on World Environment Day. Check 10 lines on World Environment Day, essay in 150, 200 and 250 words for ...

  23. Our Way of Life Is Poisoning Us

    April 20, 2023. Leer en español. There is plastic in our bodies; it's in our lungs and in our bowels and in the blood that pulses through us. We can't see it, and we can't feel it, but it ...

  24. World Environment Day 2024: Poster, Slogan, Essay and Short ...

    World Environment Day 2024: Essay. Every year on June 5th, people around the world observe World Environment Day. World Environment Day is observed by more than 100 nations worldwide. The United ...

  25. Essay on Environment for Students and Children

    500+ Words Essay on Environment. Essay on Environment - All living things that live on this earth comes under the environment. Whether they live on land or water they are part of the environment. The environment also includes air, water, sunlight, plants, animals, etc. Moreover, the earth is considered the only planet in the universe that ...

  26. How to Minimize Your Exposure to Microplastics

    Swapping out plastic cutting boards with wooden ones could also reduce your exposure. Heat, including from dishwashers and microwaves, can also cause plastic products to break down. In one 2020 ...

  27. Patagonia Outdoor Clothing & Gear

    We give our profits to the planet. Read Our Commitment. Patagonia is a designer of outdoor clothing and gear for the silent sports: climbing, surfing, skiing and snowboarding, fly fishing, and trail running.

  28. World Environment Day 2024: Check Short and Long Essay Ideas In ...

    World Environment Day 2024 Essay in 150 Words. World Environment Day has been celebrated annually since 1973, following the 1972 UN Human Environment Conference. It aims to raise global awareness ...

  29. Reinventing search with a new AI-powered Microsoft Bing and Edge, your

    To empower people to unlock the joy of discovery, feel the wonder of creation and better harness the world's knowledge, today we're improving how the world benefits from the web by reinventing the tools billions of people use every day, the search engine and the browser. Today, we're launching an all new, AI-powered Bing search...