Micro Environment (Inner Environment)

These are the factors within an organization that can be controlled and affect the immediate area of an organization’s operations.

Though not all factors can be effectively controlled, but relative to the macro environment factors, a visible control can be exercised in this case.

Following are some of the micro environment factors:

Employees	Employees exert great influence on the oorganization. It is imperative to find the right people for each job. Organizations need to motivate employees positively and retain specialized talent.
Owners and the Management	Investors are major influencers on a company’s revenue and operations.

	It  is  important  that  the  owners  are  satisfied  with  the company. It is the manager's job to balance the aims of the company and the owners.
Consumers	Competition   and   consumerism   has   rendered   multiple alternatives for the same product in different brands. Organizations recognize that it is in their own interest to keep consumers happy.
Suppliers	The   suppliers   or   contractors   manage   the   inputs   of organizations and provide products or services that a companyneeds directly or need it  to add value to the company’sown products or services. It is important to keep suppliers happy to ensure a smooth input supply system.
Competition	Competitors affect profits by trying to divert business. A capable manager will need to constantly study and analyze itscompetition if the company wants to maintain its position in themarket.