Copyright © Skool Notas Page | 0
, TOPIC 1: INFLUENCES ON
BUSINESS ENVIRONMENTS
Unit 1.1: Revising the components of the micro, market and macro environments
Revising the components of environments
The micro environment (internal operating system)
• The directors are in charge of all internal matters of the company.
• A company has complete control over it.
The components of the micro environment
• Organisational structure.
• Organisational resources.
• Organisational culture.
• Management and leadership.
• Eight business functions.
The market environment
• The business's immediate external environment is known as the market environment.
• A business has limited control over it.
The components of the market environment
• Customers.
• Suppliers.
• Intermediaries.
• Competitors.
• Other organisations.
The macro environment
• Also known as the business's immediate external environment.
• A business has limited control over it.
The components of the macro environment
• Customers.
• Suppliers.
• Intermediaries.
• Competitors.
• Other organisations.
Copyright © Skool Notas Page | 1
, TOPIC 1: INFLUENCES ON
BUSINESS ENVIRONMENTS
Unit 1.2: Business’ control over the micro, market, and macro environments
Glossary
Term Definition
A party that has an interest in a company and can either affect or be affected
Stakeholders
by the business.
An arrangement between two companies to undertake a mutually beneficial
Strategic alliances
project.
Regulators A person or thing that regulates something.
Business’ control over the micro, market, and macro environments
• A business's profitability and success are influenced by variables present.
• Entrepreneurs may attempt to control certain of these variables.
• Not all elements in the 3 environments are subject to company control.
• While some are simple for the firm to regulate, others are more difficult.
Control over the micro environment
• Establishing and updating its vision, mission statement, objectives, and goals.
• Utilizes strategic management tools and ensures that plans are carried out.
• Establishing management structures, rules, and procedures.
• Ensuring that all resources are utilized properly and efficiently.
• Ensuring that every employee is aware of the company culture.
• A leader must organize, direct, and oversee their efforts.
Influence over the market environment
Customers
• Business owners can affect the choices of their customers.
• A marketing strategy is a plan of action that outlines the company's marketing goals.
• The business owner could carry out market research.
• A company can draw customers in and influence their purchasing decisions by implementing
effective marketing strategies.
Suppliers
• Business owners can also influence the choices and activities of their suppliers by agreeing to
long-term contracts for their inputs.
• Companies could also purchase in bulk to receive savings from their suppliers.
Competitors
• Businesses may organize a strategic alliance with other business owners to pool ideas and
resources.
Regulators
• A single company cannot influence the decisions made by its authorities.
• Governmental agencies known as regulators create rules and regulations.
• Businesses can have some influence over regulators if they band together.
• A business representative could work with regulators to pass or repeal legislation.
Unions
• Businesses may also be able to influence unions' decisions.
• In order to persuade the leaders to support their position, businesses might accomplish this
through participating in collective bargaining negotiations with trade unions.
Copyright © Skool Notas Page | 2
, TOPIC 1: INFLUENCES ON
BUSINESS ENVIRONMENTS
Unit 1.2: Business’ control over the micro, market, and macro environments
Influence over the macro environment
• Political factors: governmental policy and political stability.
• Economic variables: inflation rate and changes in the value of currencies.
• Social elements: unemployment and low-income consumer levels.
• Technical elements: development of new technology and infrastructure.
• Legal considerations: labour laws and recent legislation.
• Environmental elements: environmental sustainability and climate change.
Copyright © Skool Notas Page | 3
, TOPIC 1: INFLUENCES ON
BUSINESS ENVIRONMENTS
Unit 1.1: Revising the components of the micro, market and macro environments
Revising the components of environments
The micro environment (internal operating system)
• The directors are in charge of all internal matters of the company.
• A company has complete control over it.
The components of the micro environment
• Organisational structure.
• Organisational resources.
• Organisational culture.
• Management and leadership.
• Eight business functions.
The market environment
• The business's immediate external environment is known as the market environment.
• A business has limited control over it.
The components of the market environment
• Customers.
• Suppliers.
• Intermediaries.
• Competitors.
• Other organisations.
The macro environment
• Also known as the business's immediate external environment.
• A business has limited control over it.
The components of the macro environment
• Customers.
• Suppliers.
• Intermediaries.
• Competitors.
• Other organisations.
Copyright © Skool Notas Page | 1
, TOPIC 1: INFLUENCES ON
BUSINESS ENVIRONMENTS
Unit 1.2: Business’ control over the micro, market, and macro environments
Glossary
Term Definition
A party that has an interest in a company and can either affect or be affected
Stakeholders
by the business.
An arrangement between two companies to undertake a mutually beneficial
Strategic alliances
project.
Regulators A person or thing that regulates something.
Business’ control over the micro, market, and macro environments
• A business's profitability and success are influenced by variables present.
• Entrepreneurs may attempt to control certain of these variables.
• Not all elements in the 3 environments are subject to company control.
• While some are simple for the firm to regulate, others are more difficult.
Control over the micro environment
• Establishing and updating its vision, mission statement, objectives, and goals.
• Utilizes strategic management tools and ensures that plans are carried out.
• Establishing management structures, rules, and procedures.
• Ensuring that all resources are utilized properly and efficiently.
• Ensuring that every employee is aware of the company culture.
• A leader must organize, direct, and oversee their efforts.
Influence over the market environment
Customers
• Business owners can affect the choices of their customers.
• A marketing strategy is a plan of action that outlines the company's marketing goals.
• The business owner could carry out market research.
• A company can draw customers in and influence their purchasing decisions by implementing
effective marketing strategies.
Suppliers
• Business owners can also influence the choices and activities of their suppliers by agreeing to
long-term contracts for their inputs.
• Companies could also purchase in bulk to receive savings from their suppliers.
Competitors
• Businesses may organize a strategic alliance with other business owners to pool ideas and
resources.
Regulators
• A single company cannot influence the decisions made by its authorities.
• Governmental agencies known as regulators create rules and regulations.
• Businesses can have some influence over regulators if they band together.
• A business representative could work with regulators to pass or repeal legislation.
Unions
• Businesses may also be able to influence unions' decisions.
• In order to persuade the leaders to support their position, businesses might accomplish this
through participating in collective bargaining negotiations with trade unions.
Copyright © Skool Notas Page | 2
, TOPIC 1: INFLUENCES ON
BUSINESS ENVIRONMENTS
Unit 1.2: Business’ control over the micro, market, and macro environments
Influence over the macro environment
• Political factors: governmental policy and political stability.
• Economic variables: inflation rate and changes in the value of currencies.
• Social elements: unemployment and low-income consumer levels.
• Technical elements: development of new technology and infrastructure.
• Legal considerations: labour laws and recent legislation.
• Environmental elements: environmental sustainability and climate change.
Copyright © Skool Notas Page | 3
