CHAPTER 1: BUSINESS ENVIRONMENTS:
Macro Environment
External Consider & design strategies to adapt to
situations
Various tools used - Determine how business reacts to
eliminate any threats
- Capitalise on opportunities
Tools used to analyse - Environmental scan
macro environment - SWOT-analysis
- PESTLE
Environmental scan Identify factors that impact business,& ● Identify issues
adjust existing plans/develop new plans ● Only OPPORTUNITIES & THREATS
Not limited to macro environment ● Pestle - identify specific opportunities
& threats
Political factors - Local political situation ● Interference (free market vs socialism
- Political situation of other countries vs communism)
- World politics ● Political stability
● Political ties
● Degree of media freedom/freedom of
speech
● Attitude of diff. political parties in
country
● Process followed when gov. tenders
are allocated
Economic factors ● Economic growth & development
rates
● Inflation rates
● Interest rates
● Exchange rates
● Unemployment rates
● Taxes
Ethical factors - principles/values that will ● Diff. between ethical & legal
determine if decisions & actions = ● Fair trade
acceptable. ● CSR
- Provide guideline for ● Employees privacy regarding use of
person/business to evaluate how internet vs rights of business to
to act in “right” way when faced expect responsible behaviour from
w/moral dilemma/difficult situation employees
Socio / socio-economic - Impact social trends have on ● Average age of pop.; LE; health
factors economy ● No. of single parents
- Role players in economy ● HIV/AIDS;TB & malaria
- Adapt to changes in social trends ● Levels of literacy/education
→ adapt marketing and sales ● Unemployment rate
tactics ● Personal safety/crime
● Awareness of pollution/recycling
● Distribution of wealth/poverty
● Changing role of women in society
, Technological factors - Equipment business uses to buy, ● Rapid development of social issues
advertise or sell products online. surrounding social media
● Automation of diff. Processes
● Advances in online money transfers
● Online shopping
● Quicker sales transactions through
EPOSSE
● Product innovation → research and
development
Legal environment Laws that impact the business.
- Labour legislation: LRA, BCEA,
BBBEE, SDA, OHSA
- Laws → environment
- Criminal justice
- Laws → tax
Physical environment Consequences such as global warming & ● Environmentally friendly products
changes in weather patterns
Macro Environment
External Consider & design strategies to adapt to
situations
Various tools used - Determine how business reacts to
eliminate any threats
- Capitalise on opportunities
Tools used to analyse - Environmental scan
macro environment - SWOT-analysis
- PESTLE
Environmental scan Identify factors that impact business,& ● Identify issues
adjust existing plans/develop new plans ● Only OPPORTUNITIES & THREATS
Not limited to macro environment ● Pestle - identify specific opportunities
& threats
Political factors - Local political situation ● Interference (free market vs socialism
- Political situation of other countries vs communism)
- World politics ● Political stability
● Political ties
● Degree of media freedom/freedom of
speech
● Attitude of diff. political parties in
country
● Process followed when gov. tenders
are allocated
Economic factors ● Economic growth & development
rates
● Inflation rates
● Interest rates
● Exchange rates
● Unemployment rates
● Taxes
Ethical factors - principles/values that will ● Diff. between ethical & legal
determine if decisions & actions = ● Fair trade
acceptable. ● CSR
- Provide guideline for ● Employees privacy regarding use of
person/business to evaluate how internet vs rights of business to
to act in “right” way when faced expect responsible behaviour from
w/moral dilemma/difficult situation employees
Socio / socio-economic - Impact social trends have on ● Average age of pop.; LE; health
factors economy ● No. of single parents
- Role players in economy ● HIV/AIDS;TB & malaria
- Adapt to changes in social trends ● Levels of literacy/education
→ adapt marketing and sales ● Unemployment rate
tactics ● Personal safety/crime
● Awareness of pollution/recycling
● Distribution of wealth/poverty
● Changing role of women in society
, Technological factors - Equipment business uses to buy, ● Rapid development of social issues
advertise or sell products online. surrounding social media
● Automation of diff. Processes
● Advances in online money transfers
● Online shopping
● Quicker sales transactions through
EPOSSE
● Product innovation → research and
development
Legal environment Laws that impact the business.
- Labour legislation: LRA, BCEA,
BBBEE, SDA, OHSA
- Laws → environment
- Criminal justice
- Laws → tax
Physical environment Consequences such as global warming & ● Environmentally friendly products
changes in weather patterns
