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2
Internal and external micro and macro environments 
For the 
organisation as a system
, we need to consider the various forces which have an impact 
internally and externally.
The diagram which follows highlights the organisation (which is a social system) taking inputs and 
transforming them into outputs for consumption. The process is cyclical in nature, those consuming the 
end output providing feedback which is used to adapt the inputs selected and the transformation 
process in the future. The purpose of this feedback is to better meet the needs of these consumers 
(customers, end-users etc). This process also happens within the context of the micro and macro 
environments, which have factors and forces that will have an impact on all elements within this 
process.
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PART A: THE BUSINESS ORGANISATION, ITS STAKEHOLDERS AND THE EXTERNAL ENVIRONMENT 
 
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Political forces, economic forces, social forces, technological forces
Suppliers, customers, competitors, intermediaries, stakeholders
Macro environment
Micro environment
Consumption
Materials (supplies,
components)
Money (available finance)
Men (and women employees
and contracted associates)
Machines (skillsets,
information, ideas)
Minutes (time, planning)
Functions (eg marketing,
production, finance, HR,
development)
Structure
Management
Systems and procedures 
Staff
Culture
Competences and skill
Strategy, objectives, mission
and goals
Added value 
Goods
Services
Knowledge 
Information
Stakeholder satisfaction
Social consequences