Match the items of List - I with List - II and indicate the correct code of matching :

List – I	List - II
(A) Micro external environment	(I) Economic and political factors
(B) Macro external environment	(II) Competition among diverse products targeting disposable income of consumers
(C) Non - price competition	(III) Input suppliers
(D) Desire competition	(IV) Sponsoring of events like sports

Code (A) (B) (C) (D)

Correct option is A

The correct answer is (A)-(III), (B)-(I), (C)-(IV), (D)-(II).
The business environment consists of layers that influence decision-making. Micro-environment (A) includes immediate actors like Input suppliers (III) who directly affect operations. The Macro-environment (B) encompasses broader societal forces, specifically Economic and political factors (I) that impact all players. Non-price competition (C) involves differentiating through methods other than cost, such as Sponsoring sports events (IV) to build brand equity. Finally, Desire competition (D) refers to different products competing for the same consumer dollar, represented by Competition among diverse products targeting disposable income (II).
INFORMATION BOOSTER
· Micro-environment elements are often called "Task Environments."
· Macro-environment factors are typically analyzed using the PESTLE framework.
· Non-price competition focuses on promotion, quality, and service to gain market share.
· Desire competition is the most basic level of competition (e.g., choosing between a new phone or a vacation).