microenvironment

The microenvironment refers to the immediate surroundings and smaller factors that influence an organization or individual's performance. This includes elements like customers, suppliers, competitors, employees, and local communities. Unlike the broader economy, which is considered the macroenvironment, the microenvironment focuses on relationships and interactions within a specific market or area. Understanding the microenvironment helps businesses make informed decisions and adapt strategies to meet local demands and challenges effectively.