BUSINESS
Studies
NOTES GRADE 11
, contents
Chapter 1
Business Environments
Chapter 2
Corporate Social Responsibility
Chapter 3
Management & Entrepreneurship
Chapter 4
Research and Presenting of Data and
Information Formats
Chapter 5
Forms of Ownership
Chapter 6
Creative Thinking & Problem Solving
Chapter 7
Professionalism & Ethics
Chapter 8
Teamwork & Conflict Management
Chapter 9
Public Relations
Chapter 10
Finance
Chapter 11
Marketing
Chapter 12
Risk Management
, CHAPTER 1
Business Environments
Macro Environment: External
Market Environment: External
Micro Environment: Internal
ENVIRONMENTAL SCANNING:
Definition:
process finding information about possible current & future events that may impact the business
ready for developments in environments by adapting timeously to realign resources, take advantage of
opportunities and overcome threats.
Purpose:
identify possible challenges, find opportunities
gain better understanding
quick & unexpected change is a crisis, because business did not anticipate it and likely did not have
contingency plan.
Changes over time = trends - must adapt to meet
Develop flexible strategies assist business to respond quickly to crises and opportunities.
Where it fits in:
Where business wants to go, formulate Vision & Mission
Detects - threats / problems to avoid and Opportunities
evaluate and control environment based on
Conducting Environmental Scanning:
SWOT analysis
Opportunities & threats = Macro & Market
Strengths & weaknesses = Micro
, CHAPTER 1
SWOT ANALYSIS:
Strengths & Weaknesses:
Internal factors, business has control of, create value in business.
Both tangible & intangible elements (assets, skills & resources) that the business has or lacks.
Opportunities & Threats:
cannot control. Opportunities can add value and threats could destroy value
STRENGTHS:
Add value / competitive advantage
Develop strategies to use strengths to overcome weaknesses & threats
Possible strengths:
Competitive Price: Price conscious customers will prefer
Differentiating feature
Patents (know-how): Unique, therefore limits potential customers
Differentiation - competitive advantage
Location: If “impulse purchases” - need foot traffic, easily accessible, look at demographics (age, gender etc)
If manufacturers - either transport raw materials or finished products
Other Factors: Type of business; Complementary business close by; Security; Mall trading hours; Customer
Accessibility; Future developments in area; Competitor Location.
Skilled Workforce: low wastage + high productivity
Prepare to pay good salary + treat well
Business Culture: meeting deadlines; life-long learning; honesty; CSR culture
Good Marketing & Strong Brand: Brand equity = intangible, positive association with brand
Positive image = high sales + can change to premium
Access to financing & other resources: easier to get resources with good financing
Operational Efficiency: high efficiency = low wastage + high profits
WEAKNESSES:
opposite effect on success of business
all strengths if not properly managed
must have strategies to overcome weaknesses
CONTROL OVER MICRO ENVIRONMENT:
clear vision, mission & objectives + aware of them!
Employ competent staff
Use resources properly with minimum wastage (community & environmental)
On-going training, therefore stay up to date with latest developments
Check business operations comply with laws & regulations.
OPPORTUNITIES: THREATS:
= chance to outperform competitors = hamper success / growth
offer better product Need to have contingency plans in place to deal
deliver to customer faster with threats!
access to larger market
Need to assess impact + deal with factors with strategies
PESTLE Factors - Macro Environment
Porters 6 forces model - Market Environment
Studies
NOTES GRADE 11
, contents
Chapter 1
Business Environments
Chapter 2
Corporate Social Responsibility
Chapter 3
Management & Entrepreneurship
Chapter 4
Research and Presenting of Data and
Information Formats
Chapter 5
Forms of Ownership
Chapter 6
Creative Thinking & Problem Solving
Chapter 7
Professionalism & Ethics
Chapter 8
Teamwork & Conflict Management
Chapter 9
Public Relations
Chapter 10
Finance
Chapter 11
Marketing
Chapter 12
Risk Management
, CHAPTER 1
Business Environments
Macro Environment: External
Market Environment: External
Micro Environment: Internal
ENVIRONMENTAL SCANNING:
Definition:
process finding information about possible current & future events that may impact the business
ready for developments in environments by adapting timeously to realign resources, take advantage of
opportunities and overcome threats.
Purpose:
identify possible challenges, find opportunities
gain better understanding
quick & unexpected change is a crisis, because business did not anticipate it and likely did not have
contingency plan.
Changes over time = trends - must adapt to meet
Develop flexible strategies assist business to respond quickly to crises and opportunities.
Where it fits in:
Where business wants to go, formulate Vision & Mission
Detects - threats / problems to avoid and Opportunities
evaluate and control environment based on
Conducting Environmental Scanning:
SWOT analysis
Opportunities & threats = Macro & Market
Strengths & weaknesses = Micro
, CHAPTER 1
SWOT ANALYSIS:
Strengths & Weaknesses:
Internal factors, business has control of, create value in business.
Both tangible & intangible elements (assets, skills & resources) that the business has or lacks.
Opportunities & Threats:
cannot control. Opportunities can add value and threats could destroy value
STRENGTHS:
Add value / competitive advantage
Develop strategies to use strengths to overcome weaknesses & threats
Possible strengths:
Competitive Price: Price conscious customers will prefer
Differentiating feature
Patents (know-how): Unique, therefore limits potential customers
Differentiation - competitive advantage
Location: If “impulse purchases” - need foot traffic, easily accessible, look at demographics (age, gender etc)
If manufacturers - either transport raw materials or finished products
Other Factors: Type of business; Complementary business close by; Security; Mall trading hours; Customer
Accessibility; Future developments in area; Competitor Location.
Skilled Workforce: low wastage + high productivity
Prepare to pay good salary + treat well
Business Culture: meeting deadlines; life-long learning; honesty; CSR culture
Good Marketing & Strong Brand: Brand equity = intangible, positive association with brand
Positive image = high sales + can change to premium
Access to financing & other resources: easier to get resources with good financing
Operational Efficiency: high efficiency = low wastage + high profits
WEAKNESSES:
opposite effect on success of business
all strengths if not properly managed
must have strategies to overcome weaknesses
CONTROL OVER MICRO ENVIRONMENT:
clear vision, mission & objectives + aware of them!
Employ competent staff
Use resources properly with minimum wastage (community & environmental)
On-going training, therefore stay up to date with latest developments
Check business operations comply with laws & regulations.
OPPORTUNITIES: THREATS:
= chance to outperform competitors = hamper success / growth
offer better product Need to have contingency plans in place to deal
deliver to customer faster with threats!
access to larger market
Need to assess impact + deal with factors with strategies
PESTLE Factors - Macro Environment
Porters 6 forces model - Market Environment
