At the end this unit will be able to:
• Identify the various components of the micro, market and macro business environments.
• Discuss the relationship between the micro, market and macro business environments.
• Analyse and explain the features of the micro, market and macro en...
Unit 1
The micro, market and macro business environments.
Unit objectives
At the end this unit will be able to:
• Identify the various components of the micro, market and macro business environments.
• Discuss the relationship between the micro, market and macro business environments.
• Analyse and explain the features of the micro, market and macro environments in detail.
• Discuss and distribute the various business sectors.
Introduction
Did you know daddy you participate in different environments? One of these is the school environment.
You are part of a school, which means that you are an active participant of the school environment.
These are many Factors in the school environment which you can control. For example, your level of
motivation to work school work, The amount of time you spend on doing your homework and watching
television. This is called the micro school environment.
There are also influences which you can partially control. These influences can be the food that your
mother packed in your lunch box and the mood of your business studies teacher after she has Mark your
test. This is called the market school environment.
Some influences, however, are completely outside of your control. These are influences from the Macro
school environment and effective such as your school uniform, the school time table and the new teacher
appointed at your school.
This also applies to business Enterprises and in this unit we are going to explore the environment in
which entrepreneurs and business operate. This environment is called the business environment and it
presents many challenges in the entrepreneurs and businesses. we can say that the business
environment includes all the factors that influence, a business. some challenges come from inside the
business, while other challenges are from outside the business. Although a business can control many of
these influences and challenges, there are also challenges that businesses and entrepreneurs have
absolutely no control over. However, businesses must find effective strategies to adapt to challenging
conditions.
The business environment is made up of three components. They are the:
, • Micro environment
• Market environment
• Macro environment
These are also three topics that will be covered in this unit.
MICRO EVINRONMENT
Vision, mission, strategy, and objectives.
Organisational resources.
Management and leadership.
Business functions.
Organisational structure.
Organisational culture.
BUSINESS ENVIRONMENT
MARKET ENVIRONMENT
Market (consumers/customers)
Competitors.
Intermediaries.
Other organisations/ civil society.
CBGs
NGOs
Regulators
Strategic allies
Opportunities and threats
MACRO ENVIRONMENT
Social/ cultural/demographic environment.
Legal and political environment.
Economic environment.
Global/international environment.
Physical/natural environment.
Institutional environment.
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