2. Micro environment refers to those individuals,
groups & agencies with which the organizations
comes into direct and frequent contact in the
course of its functioning.
Micro environment consists of the groups in the
company’s immediate operating environment
which have a stake in the company.
3. Customers:-The people who buy
a firm’s products and services
are its customers. A business
exists to create and satisfy
customers. A firms may have
different types of customers like
individual,households,Govt.
depts., commercial
establishments e.t.c
In order to be successful a
company must understand and
meet the needs and expectations
of its customers.
4. Competitors:-A company may
have both direct and indirect
competitors. Direct competitors
are the firms which offer the same
or similar products and services.
Indirect competition is the conflict
between vendors whose product &
services are not the same but that
could satisfy the same consumer
need.
In order to understand the full
range of its competition, the co.
must look at from buyers
viewpoint.
5. Suppliers:-refer to the people and groups
who supply raw materials and components to
the company. Reliable sources of supply
enable the company to carry on
uninterrupted operations and to minimize
inventory carrying costs.
They also influence in quality level and
manufacturing costs. A strike may cause
interruptions in manufacturing.
Public:-it include all those groups which
have an actual or potential interest
company. These publics can have both +ve
and –ve impact on a business firm.
6. Workers and Trade Union:-
Workers and their union are an
important component of micro
environment. A firm’s relations
with its workers & trade union
have a significant impact on its
functioning and performance.
Company’s work environment &
industrial relations system must be
conducive to efficient functioning.
