Business Environment and Environmental Analysis

The micro environment of an organization includes external factors that are not controlled by the management.

The presence of competitors in a market can lead to an increase in the prices of goods and services.

Environmental Analysis is a tactical tool.

The macro environment, also known as the external environment, has little influence on the performance and decision making of a business.

The business environment includes only external factors that affect how a company functions.

The organization itself is not a factor of the micro environment.

In a market, buyers and sellers interact to facilitate the exchange of goods, services, or instruments such as consumers market, labor market, and stock market.

Intermediaries are the ones who buys the goods or services produced by another person’s or companies for their own consumption.

The economic environment has no impact on the business of a company.

Technological change can increase the costs and make business less competitive.

Weather condition and climate change have no impact on the company’s operations.

Industry analysis involves studying only the competition and sales trends.