Question

Explain the micro environmental factors of business. (any 5)

Hint:

Remember: Micro environment = Close factors affecting business directly.

Answer 1

Concept: Micro environment consists of factors that are close to the business and directly affect its operations.
Step 1: Micro environmental factors.

• Customers: Determine demand for products and services.
• Suppliers: Provide raw materials and inputs required for production.
• Competitors: Influence pricing, quality, and marketing strategies.
• Intermediaries: Help in distribution and selling (wholesalers, retailers).
• Public: Includes media, government, and society affecting company image.

Step 2: Conclusion.
Thus, micro environmental factors directly influence business performance and decisions.