Business environments
Different environments
Micro environment
All elements are internal
Could affect overall performance
Tool: strength and weakness from SWOT
Market environment
Element are external
Cannot control but can access and put plans in place
Tool: porters and opportunity’s and threats from SWOT
Macro environment
Could either have positive or negative effect
Very little to no control
Tool: pestle and opportunity’s and threats from SWOT
Strategies to access environment
Environmental scanning
Process of obtaining information about possible currant or future
events that may have an impact on the business
Identify possible challenges or opportunity’s and gain a good
understanding of the nature and the pace of the changes
Management uses information to develop flexible strategies to assist
and also help understand the impact of decisions on competitors and
sustainability
Vision
formulate strategy
implement strategy
evaluate
SWOT analysis
Strengths: additional factors that add value and give competitive
advantage
, Examples of strengths:
- Competitive price = sells product at a better price
- Location = easily accessible, pay
attention to demographics and take into Additional location factors
consideration transport (raw material/ Neighbourhood
product) Complementary
- Patents and know how = unique businesses
products that are legally exclusive Easy access
Security
- Skilled workforce = less wastage and
Future
improved productivity developments
- Business culture = ways in which things
are done, gives customers confidence
- Marketing and strong brand = positive
association and allows for higher sales and lower costs
- Finances and recourses = sufficient capital allows for
sustainability of other resources
- Efficiency and good quality = efficiency means less wastage and
more profit
Weaknesses: not properly managed strengths that are debilitating
Opportunity’s: external factors that provide a chance to overcome a
competitor ( offer better products or access larger markets)
Threats: external factors hampering success or growth (use pestle to
identify) you can convert all of these into strategies through tactical
planning
Strengths Weakness
Opportunity’s Strategies that use Strategies that take
strengths to take advantage of
advantage of opportunities to
weaknesses overcome weaknesses
Threats Strategies that use Strategies that will
strengths to avoid minimise weaknesses
threats and also avoid threats
Use this information to look towards future and evaluate how this
information can lead to success or failure
PESTEL analysis
Political factors: infrastructure, political climate and load shedding
Strategies: have no choice but to comply with regulations and
legislations (can stand together to influence government)
Physical factors: natural resources available or physical
developments
Different environments
Micro environment
All elements are internal
Could affect overall performance
Tool: strength and weakness from SWOT
Market environment
Element are external
Cannot control but can access and put plans in place
Tool: porters and opportunity’s and threats from SWOT
Macro environment
Could either have positive or negative effect
Very little to no control
Tool: pestle and opportunity’s and threats from SWOT
Strategies to access environment
Environmental scanning
Process of obtaining information about possible currant or future
events that may have an impact on the business
Identify possible challenges or opportunity’s and gain a good
understanding of the nature and the pace of the changes
Management uses information to develop flexible strategies to assist
and also help understand the impact of decisions on competitors and
sustainability
Vision
formulate strategy
implement strategy
evaluate
SWOT analysis
Strengths: additional factors that add value and give competitive
advantage
, Examples of strengths:
- Competitive price = sells product at a better price
- Location = easily accessible, pay
attention to demographics and take into Additional location factors
consideration transport (raw material/ Neighbourhood
product) Complementary
- Patents and know how = unique businesses
products that are legally exclusive Easy access
Security
- Skilled workforce = less wastage and
Future
improved productivity developments
- Business culture = ways in which things
are done, gives customers confidence
- Marketing and strong brand = positive
association and allows for higher sales and lower costs
- Finances and recourses = sufficient capital allows for
sustainability of other resources
- Efficiency and good quality = efficiency means less wastage and
more profit
Weaknesses: not properly managed strengths that are debilitating
Opportunity’s: external factors that provide a chance to overcome a
competitor ( offer better products or access larger markets)
Threats: external factors hampering success or growth (use pestle to
identify) you can convert all of these into strategies through tactical
planning
Strengths Weakness
Opportunity’s Strategies that use Strategies that take
strengths to take advantage of
advantage of opportunities to
weaknesses overcome weaknesses
Threats Strategies that use Strategies that will
strengths to avoid minimise weaknesses
threats and also avoid threats
Use this information to look towards future and evaluate how this
information can lead to success or failure
PESTEL analysis
Political factors: infrastructure, political climate and load shedding
Strategies: have no choice but to comply with regulations and
legislations (can stand together to influence government)
Physical factors: natural resources available or physical
developments
