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The document outlines three types of business environments: Micro (internal factors like vision and resources), Market (external influences such as customers and competitors), and Macro (larger forces like political and economic conditions). It also discusses the three business sectors: Primary (raw materials), Secondary (manufacturing), and Tertiary (services), highlighting their interdependence. Additionally, it addresses socio-economic issues affecting businesses and the importance of quality in operations, detailing various business functions and strategies to ensure quality.

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hlahlelasimondile06
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4 views3 pages

Document (15)

The document outlines three types of business environments: Micro (internal factors like vision and resources), Market (external influences such as customers and competitors), and Macro (larger forces like political and economic conditions). It also discusses the three business sectors: Primary (raw materials), Secondary (manufacturing), and Tertiary (services), highlighting their interdependence. Additionally, it addresses socio-economic issues affecting businesses and the importance of quality in operations, detailing various business functions and strategies to ensure quality.

Uploaded by

hlahlelasimondile06
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ENVIRONMENTS

1. Micro Environment

 Definition: Internal environment that the business can fully control.


 Components:
o Vision & Mission: Guides the business's purpose and direction.
o Organisational Structure: How the business is arranged (departments,
hierarchy).
o Resources: Human (employees), financial (money), physical (equipment).
o Management: Planning, organising, leading, and controlling.
o Business Culture: Shared values and norms within the business.
 Challenges:
o Poor planning or leadership.
o Conflict among employees.
o Lack of resources.

2. Market Environment

 Definition: External environment directly influencing the business.


 Components:
o Customers: Their needs and satisfaction drive business success.
o Competitors: Influence pricing and product quality.
o Suppliers: Provide raw materials; delays can affect production.
o Intermediaries: Help distribute products (e.g., retailers).
o Industry Regulators: Ensure compliance with rules (e.g., health inspectors).
 Challenges:
o Changing customer tastes.
o New competitors entering the market.
o Price changes from suppliers.

3. Macro Environment

 Definition: Larger external forces the business cannot control.


 PESTLE Factors:
o Political: Government laws, stability, taxes.
o Economic: Inflation, interest rates, unemployment.
o Social: Culture, population trends, lifestyle changes.
o Technological: Innovations, automation, internet access.
o Legal: Labour laws, safety laws.
o Environmental: Pollution control, climate change policies.
 Challenges:
o Adapting to new technology.
o Complying with strict laws.
o Dealing with economic downturns.

BUSINESS SECTORS
 Primary Sector:
o Extracts raw materials (e.g., mining, fishing, agriculture).
o Foundation of all other sectors.
 Secondary Sector:
o Manufactures goods from raw materials (e.g., factories, construction).
o Adds value to products.
 Tertiary Sector:
o Provides services (e.g., healthcare, education, transport).
o Important for economic development.
 Interdependence:
o All three sectors rely on one another to function.

SOCIO-ECONOMIC ISSUES
 Poverty: Limits consumer spending and economic growth.
 Unemployment: Leads to crime and decreases demand for goods.
 Inequality: Unfair access to resources and opportunities.
 HIV/AIDS: Impacts workforce health, increases absenteeism.
 Crime: Businesses spend more on security.
 Violence & Strikes: Disrupts operations.
 Skills Shortage: Leads to low productivity and poor quality.
 Business Solutions:
o Offer learnerships and training.
o Support community projects.
o Create job opportunities.

OPERATIONS
1. Business Functions

1. Purchasing:
o Buys goods and services.
o Builds relationships with suppliers.
2. Production:
o Makes the final product or service.
o Ensures efficiency and low waste.
3. Marketing:
o Researches customer needs.
o Promotes and sells products.

4. Public Relations:
o Responsible for creating a good public image for the business.
5. Human Resources (HR):
o Recruits, trains, and manages staff.
6. Administration:
o Handles documentation, filing, and communication.
7. General Management:
o Coordinates all functions and sets goals.

2. Quality as a Concept

 Definition: Delivering products/services that meet customer expectations.


 Importance of Quality:
o Builds brand loyalty and reputation.
o Attracts more customers.
o Saves money by reducing returns and complaints.
 Ways to Ensure Quality:
o Staff training.
o Quality control checks.
o Using high-quality materials.
o Listening to customer feedback.
 Results of Poor Quality:
o Loss of customers.
o Damaged reputation.
o Legal issues.

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