Grade 11 Business Environments:
Learners should be able to:
1. Recap Micro-, Market- and Macro- Environment elements from Grade 10.
2. In Grade 11 it is important to identify challenges (trends vs. crises) and/or opportunities.
3. In Grade 11 it is also important to include the extent of the business control over
environments.
The following tools must be used:
• SWOT (refer to Grade 10 for detail)
• Porter's Six Forces model (refer to grade 10 for detail)
• PESTLE (refer to grade 10 for detail)
Business Environments: Challenges and trying to influence them.
Micro-environment: Inside the Business
• What is it? The micro-environment is everything inside a
business, like its internal operating system.
• Control Level: Businesses have full control over the
micro-environment.
• Key Components:
o Vision, mission statement, goals, and objectives
o Organisational structure
o Resources and culture
o Management, leadership, and the nine business
functions.
Market Environment: Immediate
External Surroundings
• What is it? The market
environment is the immediate external
surroundings of a business.
• Control Level: Businesses have
limited control but can influence it for success.
• Key Components:
Customers, suppliers, intermediaries,
Competitors, other organizations,
regulators, allies, and unions.
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,Macro Environment: Broad External Surroundings
• What is it? The macro environment is the broader external environment of a business.
• Control Level: Businesses have no control, need to adapt for success.
• Key Components:
o Social, political, legal, economic, technological, physical, global/international factors.
Control Strategies in the Three Environments
• Micro-Environment Control: Businesses have full control, ensuring success through internal
systems.
o Vision, mission, and goals alignment with trends.
o Strategic management and flexible implementation.
o Policies, procedures, and efficient resource use.
o Employee understanding of the business culture.
o Leadership, organization, and goal-driven actions.
o In a Large Organization: CEO and department heads (functional managers, i.e. Head
of finance, Marketing manager etc) jointly control the micro environment, each
overseeing different aspects.
Success Depends on Adaptation and Influence
Entrepreneurs must be aware of challenges in micro, market, and macro environments. Businesses
aim to turn challenges into opportunities by influencing or controlling factors.
Example: Businesses may influence government to prevent laws hindering their goals. However not
all factors can be controlled; some are easier to control than others.
The three business environments - micro, market, and macro - are dynamic and interdependent,
marked by constant change and multifaceted features. Changes within these environments impact
businesses uniquely. To stay profitable and relevant, businesses aim to tackle the unpredictability
within these environments.
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