Summary Study Unit 2 - Ch2 - The Business Environment
167 views 3 purchases
Course
EB121 Business Management 1 (EB121)
Institution
Nelson Mandela Metropolitan University (NMMU)
Course: Business Management 1 - EB121 (EB101 / EB151 / EB1X1 / EBC101 / EBC1X1)
Study Unit: 2
Chapter: 2 - The Business Environment
Textbook: Bosch, J.K., Tait, M., & Venter, E. (ed.) Business management: an entrepreneurial perspective. 2nd edition. Port Elizabeth: Prudentia SA.
Final Result that I...
EB121 – Business Management 1
SU 2 – Chapter 2
Sources:
Bosch, J.K. & Venter, E. (2011). ‘The Business Environment’, in Bosch, J.K., Tait, M., & Venter, E. (ed.)
Business management: an entrepreneurial perspective. 2nd edition. Port Elizabeth:
Prudentia SA.
Faculty of Business and Economic Science, Nelson Mandela University. (2017). ‘Study Unit 2 (Ch2)
The Business Environment’. [PowerPoint Presentation]. EB121: Introduction to Business
Management.
2.) Business Functions and their Interrelationship [pg39]:
- Business environment (micro) is affected by 2 other environments (market and macro)
- entrepreneurs and managers make/implement decisions about matters within the business
- The 8 Business functions contribute to attaining the business’ vision, mission, key values, goals and
objectives.
- Businesses form part of a larger international and national institution that is involved in the pursuit
for wealth, threats, opportunities and survival.
- Business Environment = sum total of international and local macro factors (pg40)
- These factors affect the 8 business functions and the business’ ability to achieve, therefore the
business cannot disregard these factors when making a decision.
- Businesses are subject to macro environment forces
Definitions [pg40-41]:
Business Environment/Organisational Environment: all variables (internal or external) that have an effect on the
establishment, growth, survival and goal achievement of a business.
Internal/Micro Business Environment: all interacting variables that have an effect on the establishment, growth,
survival and goal achievement of a business. Entrepreneurs & managers have direct/indirect influence.
Market/Task Environment: Situated immediately outside the internal business environment. All interacting
variables in the market that have an effect on the establishment, growth, survival and goal achievement of a
business. Entrepreneurs & managers have little to no control in this environment.
Macro/Mega Business Environment: All external interacting variables in the market that have an effect on the
establishment, growth, survival and goal achievement of a business. Entrepreneurs & managers have no
control/influence.
L/O(Learning Outcome)2: Explain the concept business environment and its
components.
, 3 Components of the Business Environment [pg 40]:
Business environment can be divided into two
environments; internal (micro) and external (market and
macro).
Q: Why do we study the business environments?
A: It has an effect on the establishment, growth
& survival of business. And it determines the field
of business activity and competitive business
strategies.
3.1 Variables of Internal/Micro Environment
Business activities, vision, mission, key values, goals
and objectives
Managing the 8 business Functions (general/strategic
managing, marketing, production, financial,
purchasing, human resources, information and
communication)
Access to FOP (natural resources, capital, human
resources, knowledge and entrepreneurship)
3.2 Variables of the Market Environment
S – Supplies; supply raw materials, semi-finished goods,
services and/or finance
C – Consumers; the market with purchasing power
I – Intermediaries; e.g. wholesalers and retailers
C – Competitors; already established in market and intend
to retain/improve their market share
C – Consumerism; organised movement by government,
consumers and businesses to improve rights and powers of
consumers.
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 SimoneHarnden. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.92. You're not tied to anything after your purchase.
