, Business studies GR.12
Chapter 1: Business Environments
Macro environment
- Part of external environment
- Business has no control over the events, but should design
strategies to adapt to the events
- Business CAN affect this environment
- Business should aim to eliminate threats & capitalize on
opportunities
Tools used to analyze macro environment:
- Environmental scan
- SWOT analyses (O & T)
- PE2STLE analyses
,PE2STLE
- Political > politics & political status in which the business may
operate (political changes, political party, BBBEE etc.)
- Economic > economy in which business operates (economic
growth, inflation, interest rates, taxes, exchange rates etc.)
- Ethical (2) > principles and values that determine if the business
actions are acceptable (employee privacy, fair trade, CSR, ethical
vs legal etc.)
- Social > the impact that the social trends may have on the
business (consumers, social media, economy, age, HIV/Aids,
education, unemployment etc.)
- Technological > equipment the business uses to buy/ make
products or services (online shopping, online money transfers,
research, product scanning equipment etc.)
- Legal > laws that impact the business (labour legislation acts,
consumer protection acts, environmental stability acts, criminal
justice, tax laws etc.)
- Environmental > the way we impact the environment and the
environment us (global warming, environmentally friendly
products etc.)
SEE PG. 5-6 FOR EXAMPLE OF PESTLE ANALYSES
, Market environment
- Forms part of external environment
- The business has no control over it
- Business CAN impact it
- Refers to any place where goods are bought and sold
Tools used to analyze market environment:
- Environmental scanning (to identify issues that must be
addressed)
- SWOT analyses (O & T)
- Porter’s six-force analyses (O & T)
Porter’s six-force analyses (by Michael Porter)
Analyses the following:
- Competitors > which business sells the same product
- Competitors > which businesses sells a substitute-products
- Competitors > which businesses may try to enter the market
- Suppliers > which suppliers can supply the products
- Buyers > which buyers can be convinced to by product
Porter’s six-force analyses explained:
www.youtube.com/watch?v=mYF2_FBCvXw
Chapter 1: Business Environments
Macro environment
- Part of external environment
- Business has no control over the events, but should design
strategies to adapt to the events
- Business CAN affect this environment
- Business should aim to eliminate threats & capitalize on
opportunities
Tools used to analyze macro environment:
- Environmental scan
- SWOT analyses (O & T)
- PE2STLE analyses
,PE2STLE
- Political > politics & political status in which the business may
operate (political changes, political party, BBBEE etc.)
- Economic > economy in which business operates (economic
growth, inflation, interest rates, taxes, exchange rates etc.)
- Ethical (2) > principles and values that determine if the business
actions are acceptable (employee privacy, fair trade, CSR, ethical
vs legal etc.)
- Social > the impact that the social trends may have on the
business (consumers, social media, economy, age, HIV/Aids,
education, unemployment etc.)
- Technological > equipment the business uses to buy/ make
products or services (online shopping, online money transfers,
research, product scanning equipment etc.)
- Legal > laws that impact the business (labour legislation acts,
consumer protection acts, environmental stability acts, criminal
justice, tax laws etc.)
- Environmental > the way we impact the environment and the
environment us (global warming, environmentally friendly
products etc.)
SEE PG. 5-6 FOR EXAMPLE OF PESTLE ANALYSES
, Market environment
- Forms part of external environment
- The business has no control over it
- Business CAN impact it
- Refers to any place where goods are bought and sold
Tools used to analyze market environment:
- Environmental scanning (to identify issues that must be
addressed)
- SWOT analyses (O & T)
- Porter’s six-force analyses (O & T)
Porter’s six-force analyses (by Michael Porter)
Analyses the following:
- Competitors > which business sells the same product
- Competitors > which businesses sells a substitute-products
- Competitors > which businesses may try to enter the market
- Suppliers > which suppliers can supply the products
- Buyers > which buyers can be convinced to by product
Porter’s six-force analyses explained:
www.youtube.com/watch?v=mYF2_FBCvXw
