Summary
Summary Business environments - Business studies Gr12 IEB summaries/notes
- Course
- Institution
This document contains summaries made from " Consumo Business studies textbook" which summarizes the different business environments.
[Show more]
1 review
By: drantoinettemiric • 11 months ago
Seller
Follow
kayleevandyk
Reviews received
Content preview
• Chapter 1- Business environments:
➢ Macro environment:
- Forms part of external environment = business no control.
- Tools used to analyse the macro environment:
✓ Environmental scan.
✓ SWOT-analysis.
✓ PESTLE analysis.
- Various tools may be used to analyse the events in the macro environment in
order to:
❖ Determine how the business should react to eliminate any threats.
❖ Capitalize on opportunities to achieve a competitive advantage.
- Environmental scan:
o Used to identify factors that may have an impact on the business.
o The business will scan the macro environment in order to identify issues
which need to be addressed.
- SWOT analysis:
o May be used to evaluate factors in both the external and internal
environment, in the macro environment, only opportunities and threats
are considered.
- PE₂STLE:
o Is useful tool to identify specific opportunities and threats in the macro
environment.
▪ Economic factors:
- Economic factors that may affect the business include:
❖ Economic growth and development rates in the country.
❖ Inflation rates.
❖ Interest rates.
❖ Exchange rates.
❖ High unemployment rates.
❖ Taxes such as income tax, VAT, import duties.
, ▪ Political factors:
- This factor is important in relation to =
❖ The local political situation of the country in which the business operates.
❖ The political situation of other countries in which the business may operate.
❖ World politics.
- When reviewing political factors, the following aspects should be considered =
✓ Degree of media freedom/freedom of speech which may be used to criticize political
parties when government officials make themselves guilty of corruption.
✓ Degree of political stability in the country.
✓ The likelihood of government interference in the economic functioning of the
country.
▪ Ethical factors:
- Ethics refers to the principles and/or values that will determine if decisions
and actions are acceptable.
- Elements that the business has to consider when looking at ethics include =
✓ What is the difference between ethical and legal.
✓ Fair trade.
✓ Corporate social responsibility.
✓ An employee’s privacy.
▪ Social/socio-economic factors:
- Refers to the impact that social trends have on the economy and the role
players in the economy, such as businesses and consumers behaviour and
their lifestyles.
- Factors that the business should consider =
✓ The number of single parents providing for a family.
✓ Levels of literacy/education.
✓ Unemployment rates.
✓ Personal safety and crime.
✓ Distribution of wealth/poverty.
▪ Technological factors:
- Refers to equipment the business uses to buy, advertise or sell the products or
services.
▪ Legal environment:
- Refers to all laws that impact on the business.
- This may include =
✓ Labour legislation.
✓ Laws that protect the environment against exploitation and pollution.
✓ Laws relating to paying tax.
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 kayleevandyk. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.05. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
83637 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now