Micro environment analysis is a process that evaluates the factors in an organization's immediate environment that can have an impact on its operations and performance. These factors are often referred to as the micro environment, as they are closely related to the organization and can be easily influenced by its actions. The micro environment consists of elements such as customers, suppliers, competitors, and stakeholders, as well as internal factors such as employees and management.
In order to conduct a micro environment analysis, an organization must first identify the key players and factors within its immediate environment. This involves gathering information about the organization's customers, suppliers, competitors, and stakeholders, as well as its internal processes and resources. This information can be obtained through various methods, including market research, customer surveys, and internal analysis.
Once the key players and factors have been identified, the organization can then analyze their impact on the organization's operations and performance. For example, a company may analyze the needs and preferences of its customers in order to develop products and services that meet their needs. The company may also assess the strengths and weaknesses of its competitors in order to develop strategies to differentiate itself in the market.
Additionally, a micro environment analysis can help an organization identify potential risks and opportunities within its immediate environment. For example, changes in customer behavior or the introduction of new technologies may present both risks and opportunities for the organization. By identifying and analyzing these risks and opportunities, the organization can develop strategies to mitigate the risks and take advantage of the opportunities.
Overall, micro environment analysis is an important tool for organizations to understand and respond to the factors that can impact their operations and performance. By identifying and analyzing the key players and factors within its immediate environment, an organization can develop strategies to address potential risks and opportunities, and improve its performance and competitiveness.
