Analysis of the Micro-Environment for Business

Extracted 22NOV2011 from http://www.oup.com/uk/orc/bin/9780199296378/01student/additional/page_10.htm

The micro-environment consists of stakeholder groups that a firm has regular dealings with. The way these relationships develop can affect the costs, quality and overall success of a business. Issues in the micro-environment include:

• Suppliers
• Distributors
• Customers
• Competition

[In practical terms, it also seems necessary to consider the stakeholder groups with which the firm has no contractual relationships or transactions but that influences the decisions and actions of the firm and its value network. This may be where (LoNG)PESTEL analysis of the micro-environment converges with analysis of the micro-environment to yield a fuller appreciation of the business ecosystem.]