Comprehensive summary of Business Environments (Chapter 1), adapted from the Consumo Publishers Business Studies Grade 12 Textbook. Easy to understand with clear headings and sub-headings, diagrams and tables, and important terms highlighted in bold.
• Form part of the external environment.
• Business has no control over events in external environment.
• Needs to consider events and design strategies to adapt to
situations in external environment.
• Remember internal env. may impact external env.
o In a strike, 1/more businesses may have effect on economy.
o Employing/retrenching workers contributes to [un]employment.
o Way business operates influences physical env.
Tools used to analyse events in macro env. in order to:
• Determine how business can eliminate any threats.
• Capitalise on opportunities to achieve comp. advantage.
COMP ADVANTAGE = DESCRIBES HOW BUSINESS HAS THE EDGE IN THE
MARKET OR OVER COMPETITORS.
Tools to analyse macro env:
• Environmental scan
• SWOT-analysis
• PESTLE or PE2STLE analysis
ENVIRONMENTAL SCAN:
Important to identify factors that impact the business and adjust strategies
accordingly.
Following process is applied:
- Business scans macro env. to identify issues that need addressing.
- Opportunities and threats considered.
- PE2STLE identifies specific O & T.
Purpose:
- Identify possible challenges/opportunities in changing environment
- Gain understanding, nature of changes, and pace.
o Crisis – quick unexpected, bus didn’t anticipate, probably no
contingency plan.
, Kayla Humphries
o Trend – Occur over period, forewarned to adapt strategies to
deal w change.
- Management – use info to dev strategies – respond quickly to ^
- Help management understand impact of decisions on comp position
and sustainability
SWOT-ANALYSIS (ONLY O AND T):
Identifying all opportunities and threats that may impact the business.
PE2STLE-ANALYSIS:
Each letter describes potential threats/opportunities (strengthen comp.
advantage) for the business.
Political Technological
Economic Legal
Ethical Environmental
Social
Political factors:
In relation to:
- Local political situation of country bus. operates in.
- Political situation of other countries bus. operates in.
- World politics in general.
Following aspects should be considered:
- Likelihood of government interference.
- Degree of political stability/unrest.
- Political ties with other countries.
- Degree of media freedom/freedom of speech.
- Attitude of political parties.
- Process followed when government tenders are allocated.
- Fiscal policies.
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 EFT, 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 this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller kaylahumphries. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for R50,00. You're not tied to anything after your purchase.
