Summary Business studies the micro,market and macro
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Course
Business Studies
Institution
11th Grade
These notes provide a thorough breakdown of the micro, market, and macro environment concepts for both Grade 11 and 12. They offer detailed explanations to help students better understand these crucial aspects of business contains examples too, Dive into the dynamic world of micro-level influences...
THE MICRO, MARKET AND MACRO
ENVIRONMENT
GR 11/12 NOTES
Contents
ENVIROMENTS AND STRATEGIES................................................................................................................................2
Tools used to scan the market environment..............................................................................................................3
Porter’s 6 FORCES:..................................................................................................................................................3
PESTEL analysis:...........................................................................................................................................................6
Strategies:...................................................................................................................................................................7
Corporate strategies...............................................................................................................................................7
Business Report (50 Marks)..........................................................................................................................................11
Guide for Answering Business Report......................................................................................................................12
LOOK AT OUR SAMMARY BUSINESS STUDIES REPORT NOTES IEB...............................................................................13
Page 1 of 13
,ENVIROMENTS AND STRATEGIES
Levels of control
Micro environment
Full control
Mission
Objectives
Management structure
Resources
Culture
Market environment
External
Limited co troll
Ability to adapt
Customers
Supplies
Competitors
Intermediaries
Macro environment
External
Little co troll to none
Ability to adapt
Socio-economic
Legal
Technological
Political
Government
Economic
International
Page 2 of 13
, Environmental scanning
Is an analysis of each of the environment/factors of a business in order to increase
strengths, decrease weakness, adapt to threats and take advantages of opportunities =
SWOT analysis
Identifies threats before they are imminent
Identifies possible opportunities And gaps in the market
Allows entrepreneurs to make both long and short term strategies
Tools used in the micro environment
SWOT ANALYSIS
Resource based approach
Value Chan analysis
Balanced scorecard
If a business wants to expand and increase sales:
Market Penetration
Market Development
Product Development
Diversification
TOOLS USED TO SCAN THE MARKET ENVIRONMENT
PORTER’S 6 FORCES:
1. Threat of New Entrants:
- New entrants pose a threat when it's easy for them to enter a market, making existing
businesses lose customers or lower prices.
- Level of Rivalry: High, if new businesses can easily start; Moderate to Low, if entry
barriers are high.
2. Availability of Substitute:
- Substitutes are alternatives that fulfil the same purpose, and their availability can impact
a company's market share and pricing.
- Level of Rivalry: High, if substitutes are readily available and comparable; Moderate to
Low, if substitutes are limited.
3. Power of Suppliers:
- Suppliers have power when they can control prices, quality, or supply, impacting the
profitability of the companies they supply.
Page 3 of 13
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