microenvironment (noun, mi-cro-en-vi-ron-ment, \ ˈmaɪkroʊ ɪnˈvaɪrənmənt \)
Definition: is a set of aspects, conditions, and factors closely related to a company’s sphere of operations that have an effect on its executive decisions and performance. Factors that shape the microenvironment of a firm include competition, clients, distribution, and suppliers. Any possible changes that occur in one of those areas may cause a ripple effect on how a company is managed and on its decision-making process and strategies, as the board is forced to adapt to the new circumstances.
In a Sentence:
- We’ve kept an eye on all the changes occurring in the microenvironment to avoid getting caught by surprise should something bad happen.
- The microenvironment of our company worsened in a major way ever since our supplier has doubled the price of its products.
- The analysis of the microenvironment suggests that now is an excellent time to invest in a new product line before our competitors beat us to it.
Synonyms and related words: macro environment, general environment, internal environment, external environment
