CSEET · Economic and Business Environment · Business Environment
Which of the following is a component of the micro (task) environment of a business firm rather than its macro environment?
Suppliers are part of the micro environment because they interact directly with the firm and affect its day-to-day operations. Monetary policy, demographics and general technological change act on all businesses in the economy, so they are macro environment components rather than micro ones.
- AChanges in the country's monetary policy
- BDemographic profile of the population
- CSuppliers who provide raw materials to the firmCorrect
- DTechnological advances across the economy
Explanation
The micro environment consists of forces close to the firm that directly affect its operations, such as suppliers, customers, competitors, marketing intermediaries and the public. Monetary policy, demographics and technology are broad forces that affect all firms in the economy, so they belong to the macro environment.
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