welcome to academic game tutorials in this video we will look into the differences between micro and macro environment every business organization is a part of the business environment within which it operates it is broadly classified into two categories that is micro environment and macro environment micro environment refers to the environment which is in direct contact with the business organization and can affect the routine activities of business straight away on the other hand the general environment within the economy that influences the working performance decision making and strategy of all business groups at the same time is known as macro environment so let's look into the basic differences between micro and macro environment in a tabular form difference number one the micro environment is the environment which is in immediate contact with the firm whereas 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 number two the study of the micro environment is described as cosmic analysis which is short form for competitors organization itself suppliers market intermediaries and customers conversely vessel analysis is a study of the macro environment which is short form for political economic socio-cultural technological legal and environmental number three nature of elements is very specific in micro environment whereas nature of elements is general in macro environment number four the micro environmental factors are controllable by the business but to some extent only whereas the macroeconomic variables are uncontrollable and difference number five the elements of the micro environment effect directly and regularly to the firm which is just opposite in the case of the macro environment