Business Environment — Part 2: Micro and Macro Environment and SWOT: visual lesson, ISC Class 12 Commerce

Lesson

Micro, Macro and SWOT

Part 2: the internal factors, the external micro factors, the five macro dimensions, and SWOT analysis.

In this lesson you will

Identify internal factors and external micro factors of a firm's environment
Classify changes into economic, social, technological, political and legal dimensions and explain their effects
Prepare a simple SWOT analysis for a small Indian business

Part 2 at a glance

Concept

Internal factors lie inside the firm and are largely within its control.

Table of internal factors of the environment with examples
Internal factor	Example
Value system, mission and objectives	A firm that refuses to use child labour
Structure and corporate culture	Open communication and teamwork
Human resources	Skilled carpenters, trained sales staff
Physical and technological resources	Machines, buildings, research
Financial resources	Owners' funds, ability to borrow
Marketing resources and image	A trusted brand, a dealer network

Concept

External micro factors are the people and firms the business deals with directly.

Table of six external micro factors, who they are and how each affects a firm
External micro factor	Who they are	Effect on the firm
Suppliers	Sellers of inputs	Cost and timely supply
Customers	Buyers of the product	Demand and sales
Competitors	Firms selling similar products	Prices and market share
Marketing intermediaries	Dealers, wholesalers, couriers, platforms	Reach and delivery
Financiers	Banks and lenders	Cost and availability of funds
Public	Media, local residents, citizens' groups	Image and goodwill