The Grade 11 Business Studies Notepad is an essential tool for any student studying business studies in grade 11. It covers the entire IEB and DBE syllabus according to ATPS, providing a comprehensive and complete learning experience. The notebook is designed for quick learning and revision, making...
, business environment = internal and external elements and the external
environment of the companies affecting its operation
success of a business = environmentally variable and adjusting its business
policies so that the business can grow and survive
3 Types of Business Environments: MICRO , MARKET , MACRO
BUSINESS ENVIRONMENTS, ELEMENTS AND CHALLENGES:
Business Environments:
Internal environment External environment
MARKET ENVIRONMENT MACRO ENVIRONMENT
MICROENVIRONMENT
⇨Optional ⇨General
[full control by
[limited control by the [no control by the
enterprise]
company] company]
• Vision, mission, • Consumers • Political
strategy and goals • Competitors • Economically
of the business • Suppliers • Socially
enterprise • civil society • Technological
• Production • Intermediaries • Legally
Elements
Elements
factors/resources • Customers/Customers • Environment
• Business features • physically/naturally
• Management • Sociocultural &
structure Demographics
• Work environment • international/global
• Culture • Institutional
• Image of the
company
• difficult employees • Competition • changes in income
• lack of vision and • Demographics levels
mission • Inventory shortage • Globalization
lack of adequate change in consumers' Political changes
Challenges
Challenges
• • •
management skills preferences and habits • Recent legislation
• Trade unions • Psychographics • Labour restrictions
• Strikes & “sloth • socio-economic
strikes” issues
• inflation and
interest rates
Business has complete Business has no control, but management can
control affect control factors
PURPOSE: DEFINITION [ENVIRONMENTAL ANALYSIS] :
⇨Process where information about possible current and
→ business ready [proactive]
future events that may affect the performance of
for future developments in
the business is collected
the external as well as the
internal environments [micro,
market, macro] of the company > adjustments to overcome potential obstacles
→ Identifying possible challenges and opportunities for the business
→ understanding the nature of changes
→ Trend to keep up with the pace of changes
→ >assess and understand the impact of business decisions on the company's
sustainability and competitive advantage.
→ [Part of the strategic planning process] Monitoring the business environment to
identify opportunities and threats.
# IMPORTANCE?
identify factors > impact on the business = existing plans can be adjusted or new plans
can be formulated to account for these factors/events.
PROCESS
Although the
(SWOT) analysis
can be used to
PE²STLE is a useful
The business will analyze both the
tool to identify
scan the macro internal and
these specific
environment to external
opportunities and
identify issues environments, in
threats in the
that need to be the macro
macro
investigated. environment only
environment.
OPPORTUNITIES
and THREATS are
investigated.
DIFFERENCE BETWEEN A TREND AND A CRISIS:
CRISIS TREND
fast and unexpected change changes that occur over a period of time
[not control over this event] and we can adjust strategies to provide
for these changes.
, BUSINESS ANALYSIS:
OBJECTIVE : identify opportunities and
SWOT ANALYSIS: threats in both the market and macro
environment + Identify (and analyse)
Strengths, Weaknesses, Opportunities,
strengths and weaknesses in the internal
Threats)
(micro) environment
= useful tool that allows viewing the
internal AND the external environments.
Intern
[Company]
External
[Environment]
The S (strengths) and W (weaknesses) ⇨ INTERNAL issues [eight business functions +
efficiency/degree of coordination between the functions to make the business
successful] ⇨ HAVE CONTROL OVER THE ISSUES
→ The financial strength of the business
→ Quality/creativity of the marketing campaign.
→ The strength of the trademark and/or patents to protect the trademark
→ Location of the business
→ Cleanliness (how clean it is) of the store.
→ Quality of the product/service sold.
→ How competitive are our pricing
STRENGTHS
= adding value to the performance of the business and/or resulting in the business gaining
a competitive advantage in the market
→ Competitive price
→ Place
o Place competing businesses close together
o Customers = easy access =
o Security is NB!
o Future developments=
o Trading hours of shopping centres
→ Patents
o Unique product
o legal exclusivity of producing the product in a certain way
→ Skilled workforce
→ Business culture
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 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 notedx19. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £8.53. You're not tied to anything after your purchase.
