Grade 12 Business Studies
Luthando Zulu – Teach Me 2
The Business Environment:
The business and environmental change:
Change is the only constant reality of our time
Environmental variables are constantly changing the environment in which businesses operate
New opportunities and threats emerge daily and management must adapt to changes to ensure survival in a competitive environment.
What is the business environment?
The composition of the business environment:
Micro Environment: The micro-environment consists of the business itself, over which management has complete control
1
, Market Environment: The market environment is encountered immediately outside the business organisation/micro environment where
management has partial control
Macro Environment: This environment is outside both the organisation and market environment, and this is where the business has no control
whatsoever
Characteristics of the business environment:
Environmental factors or variables are interrelated
Increasing instability and change
Environmental uncertainty
Complexity of the environment
2
Luthando Zulu – Teach Me 2
The Business Environment:
The business and environmental change:
Change is the only constant reality of our time
Environmental variables are constantly changing the environment in which businesses operate
New opportunities and threats emerge daily and management must adapt to changes to ensure survival in a competitive environment.
What is the business environment?
The composition of the business environment:
Micro Environment: The micro-environment consists of the business itself, over which management has complete control
1
, Market Environment: The market environment is encountered immediately outside the business organisation/micro environment where
management has partial control
Macro Environment: This environment is outside both the organisation and market environment, and this is where the business has no control
whatsoever
Characteristics of the business environment:
Environmental factors or variables are interrelated
Increasing instability and change
Environmental uncertainty
Complexity of the environment
2
