Grade 11 Full Ieb Business studies curriculum notes: Are you doing grade 11 Ieb business studies? Im selling my full set of Grade 11 Ieb business studies notes covering all the work you need to know throughout the year.

Chapter 1; Business Environments
There are 3 types of Business environments:
1. Macro Environment (external) -> GDP, inflation, demographics etc
2. Market environment (external) -> Consumer demand, competition etc
3. Micro Environment (internal) -> Start up capital , availability of employees
etc


The factors in the Macro environment can impact the market environment

Enviromental scanning- The process of getting information about possible
current and future events that may have an impact on the performance of the
business.

-> This is done to ensure the business is ready for the developments in the
internal and external environments by adapting timeously to realign resources to
take advantage of opportunities and overcome threats.

The Purpose;

 To identify possible challenges and opportunities for the business in an
ever changing business environment.
 Quick and unexpected change= crisis
-> The business does not anticipate the change = they do not have a
crisis plan in place to deal with the crisis.
 Changes over a period of time= identified as trends and the business will
try to adapt to it with their current strategies to deal with the change.
 Help management understand the impact of business decisions in the
competitive position and sustainability of the business.

Management must use information that has been gained to develop flexible
strategies to assist the business to respond to the crises and opportunities.

Where does Enviromental scanning fit into the strategic;

Vision/mission-> Formulate a strategy -> Implement a strategy-> Evaluation and
control

In a business management functions has to take into consideration where the
business wants to go to (vision) and then will formulate a mission and strategies
that will give the business directions on how to get to the destination.

Enviromental scanning monitors the business environment to check that the
business is working in an effective manner and that there is no “hiccups” -> Can
get a competitive advantage.



Enviromental scanning -> External environment-> macro environment-> use
PESTLE to identify o and t

,Enviromental scanning-> External Environment-> Market environment-> Use
porters model to identify O and T.

Enviromental scanning-> internal environment-> Micro environment-> Look at S
and W



Swot-analysis-> helps to conduct an environmental scan

It can identify: Opportunities (O) and threats (T) in both the Macro +
Market environments and strengths (S) and weaknesses (W) in the
internal (micro) environment.




Swot analysis:
 Strengths + weaknesses = internal factors that the business has control
over and is used to create value in the business. They are both tangible
and intangible elements. (Assets, Skills, resources)
 Opportunities + threats= factors a business cannot control as they
emerge from the competitive business field of the external environment of
the business.
-> O= factors + situations that add value to the business
-> T= factors+ situations that can destroy the value of the business.

The business needs to ensure when using SWOT to look at both the internal and
external environments.




Strengths:
 Factors= (tangible + intangible) within the business and adds value to the
performance and gives the business a competitive advantage.
 The Business must develop strategies so that they can use their strength's
to overcome weaknesses + threats -> to take advantage of opportunities.


Possible strengths a business may have:

 Competitive price
 Location
 Unique product; patents (know how)
 Work skills
 Business culture
 Good marketing + strong brand
 Access to financing + other resources
 Operational efficiency (good quality)

, 1. Competitive price; When the business sells a product/service at a better
price than the competitors= differentiates themselves -> Consumers
prefer a more reasonably priced product.
2. Location; The location of a business should be easily accessible to the
target market. -> The business must pay close attention to the
demographics (age, income levels and etc) of the target market when
choosing a location.
If a business is going to manufacture products; they need to
determine how it will be easier to transport the raw materials or the
finished product instead and then to choose the location
accordingly.
-> Establishing a business close to the source of the raw materials
-> or It may be easier to transport the raw materials rather than
the finished product. E.g. Transporting wooden logs that will
eventually be turned into furniture. So in this case it will be easier to
locate the business close to the target market.



Additional factors to consider when choosing the location of the
business to ensure it is a strength.

 The business needs to “fit in with the neighbourhood” (its got to suit
the needs of the neighbourhood and not a random shop/service that
will be useless to the community)
 A complementary business in close proximity = strength E.g. A
pharmacy placed right by a doctors office.
 The customers should have easy access to the business (check out the
parking availability)
 Security!!! Is very important as customers want to feel safe otherwise -
> They will not feel safe to come into the business.
 Learn about future developments in the area as it may be a great place
for certain businesses to obtain premises while others-> can prove to
be a disadvantage to be located there.
 Business wanting to locate in a mall -> They need to consider the malls
trading hours (important factor) = it needs to make sense for that
company to be open at the malls trading hours e.g. Like why would a
breakfast shop work at night = it doesn't make sense (the business
needs to suit the working hours)
 Consider the surrounding businesses -> some may be competitors
And although we think it may be a bad idea but sometimes its not
e.g. Food court
 Patents (know-how) -> Unique product offered to the target
market