Summary
Summary Business Studies - Business Environments - Notes
- Course
- Institution
Summary of BUSINESS STUDIES Chapter 1, IEB
[Show more]
Seller
Follow
alexsabinestevens
Reviews received
Available practice questions
Business Studies Past Questions IEB
Flashcards
30 Flashcards
Free
5 sales
Flashcards
30 Flashcards
Free
5 sales
Some examples from this set of practice questions
1.
A method of obtaining all the information about the tasks related to a cashier at a Mr Price store would be a …
Answer: job analysis
2.
Which marketing policy describes the process that a manufacturer uses to get the product to the consumer?
Answer: Distribution
3.
When Mr Price Ltd borrows money and pays interest, it is known as …
Answer: debentures
4.
When the rights of a life insurance policy are transferred to a bank as security for a loan, this is referred to as
Answer: a cession
5.
The unauthorised and illegal duplication of products protected by patents refers to …
Answer: piracy
6.
Mr Price has an extensive recycling programme. This shows that Mr Price has a commitment towards
Answer: Triple Bottom Line
7.
A Mr Price manager who understands that suppliers may originate from a range of countries is showing a … competency
Answer: global awareness
8.
Mr Price is committed to the promotion of black people, women and the disabled. This shows that Mr Price is implementing the requirements of the … Act.
Answer: Employment Equity
9.
To resolve a wage dispute in the workplace, a trade union representative met with management. This meeting resulted in a compromise. Which conflict resolution process is outlined above?
Answer: Negotiation
10.
Which compulsory insurance covers employees against loss of income when they are retrenched due to economic circumstances?
Answer: UIF
Content preview
BUSINESS ENVIRONMENTSMACRO ENVIRONMENT
• Forms part of the external environment
• The business has no control over what happens in the external environment
- They must design strategies to adapt to situations in the external environment.
• Competitive Advantage: Describes how the business has the edge in the market or over competitors.
An Environmental Scan
• Done to identify factors that may have an impact on the business
- The business will then adjust existing plans or develop new plans to deal with these factors.
• Only OPPORTUNITIES and THREATS are considered in when scanning the macro environment.
- PESTLE Analysis is good to use when identifying O & T in the macro environment.
SWOT Analysis (O & T)
Eg. If the exchange rate deteriorates (macro environment) and raw material are imported, this could threaten
the profitability of the business.
PE2STLE Analysis
• Each letter represents a factor from the macro environment that could potentially the business
- This could also be used as an opportunity to create the strengthen the competitive advantage.
1. Political Factors:
- Local political situation of the country in which the business operates.
- Political situation of the country/countries that the business may operate in.
- Political ties with other countries ?
Page 1 of 10
, 2. Economic Factors
- Economic growth
- Inflation rates: The continuous and significant increase in the general price level of goods and
services.
- Interest rates: The rate at which people or businesses borrow money from the bank or the
percentage ROI when saving money.
- High interest rates make it difficult for businesses to borrow money or to expand
- Exchange rates: The strength of the local currency vs. the currencies of other countries.
- High unemployment rates = people having less money = less profit to be made
- Taxes
3. Ethical factors
- The principles or values that will determine if decisions and actions are acceptable.
- What is the difference between ethical and legal?
- Fair trade: respect & transparency in business dealings
- Corporate social responsibility (CSR): responsibility towards shareholders to make a profit vs. the
responsibility towards giving back to the community.
4. Social/Socio-economic Factors
- The impact that social trends have on the economy & the role players in the economy.
- The business has to adapt to changes in the social trends.
- Businesses must consider:
- The average age population, life expectancy and health consciousness
- Number of single parents providing for their family
- HIV/Aids infections & diseases such as TB
- Levels of education
- Unemployment rates
- Personal safety & crime
5. Technological Factors
- The equipment that the businesses uses to buy (or make), advertise or sell their products.
- Automation of different processes
- Advances in online money transfers
- Online shopping
Page 2 of 10
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller alexsabinestevens. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $3.70. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
60434 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now