Summary The Business Environment

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

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,  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




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