Dimensions of Business Environment
Dimension of the business environment involves the ‘Micro and Macro’ environment. Micro environment means small or pertaining to one item in the environment. It refers to those internal and external factors, which exercise a direct influence on the working and performance of an individual business organization. A micro environment is also called a Direct Section Environment or Task Environment. Micro environment may be classified into two broad categories: internal and external factors.
Whereas Macro environment refers to the general environment or remote environment under which a business enterprise and forces in its micro environment operate. The macro environment is not interacted with regularly or directly by any enterprise. The forces of micro environment create opportunities for the organization and pose threats to the company. The micro environment forces are less controllable than the micro forces. The macro environment consists of the following components- economic, social, technological, political, and legal environments. We will be studying all these components in detail.