Difference between Macro and Micro Environment

The following are the major difference between micro and macro environment:

  • Micro-environment is the environment which is in immediate contact with the firm. The environment which is not specific to a particular firm but can influence the working of all the business groups is known as Macro Environment.
  • The factors of the micro-environment affect the particular business only, but the macro-environmental factors affect all the business entities.
  • The micro environmental factors are controllable by the business. However, the macroeconomic variables are uncontrollable.
  • The elements of the micro-environment affect directly and regularly to the firm which is just opposite in the case of the macro environment.
  • The study of the micro-environment is described as COSMIC analysis. Conversely, PESTLE Analysis is a study of the macro environment.


Micro-environment and macro environment, both cover the overall environment of business. So, they are more complementary rather than contradictory. The study of these environments will help to know the strength, weakness, opportunity and threat of business.

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