Business studies grade 12 IEB
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Term 1
1.1) Business environment
SWOT analysis
Strengths:
Variety of quality products offered.
Sells across all demographic segments.
Large amounts are essential items, therefore retailer will be supported for
unpredictable times.
Weaknesses:
Consumers expect retailers to carry every boarder selections. Failing to do so
leads to disappointment.
Unsatisfied consumers after Franchise redesigns a store.
Unfriendly tellers leads to bad customer service.
Limitation to high disposable income.
Opportunities:
Provide “one stop” shopping experience (in-shop pharmacy).
Carry products to accommodate consumers with certain food preferences.
By being involved in CSR projects, increases retailer’s value in public.
Expand to online shopping and delivery services.
Threats:
Loyalty cards starts price wars, where no one wins except the consumer.
Stricter regulations causes a decrease in revenue.
Increase in petrol results an increase of all products.
Weak economy affects sales tremendously.
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PESTLE ANALYSIS:
Political:
The current and future political ruling party: Laws that will directly
influence business.
Grants, funding and initiatives supported by the ruling party: Can apply
for grants during lock down but due to mismanagement of funds, there
is no money to help.
Political instability: A threat by the government for land grabs which
leads to poor exchange rates.
Economical:
Exchange rates: If poor, it will be expensive to import goods requested
by consumers.
Taxation policies and trends: If there is an increase, there will be a price
increase in the industry.
Inflation rates: If there is a steep increase, consumers disposable income
will be influenced and influence the general retailer.
Socio- economic:
Clients will determine retailer’s location.
Must carry products for consumers from different religions, different
food preferences and disposable income levels.
Must make sure products are accessible.
Needs to be involved in CSR projects.
Technological:
Stay up to date in change of technology (Online shopping, stock take).
Train personnel to use new technology.
Allow potential competitors in the market.
Ease of importing products.
Legal:
Be on par with laws that impact the business( unemployment, healthy,
safety)
Have required licenses.
Be on par with COVID regulations to determine what they can sell.
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Environmental:
Make sure to minimize carbon foot print.
Be involved in CSR projects to help minimize the effect they have in their
immediate environment.
Change in legislation/ environmental issues will influence the industry.
Business environments:
1.) Macro environment:
The business has no control over situations but they should consider the
events to formulate strategies to adapt to situations. It is important to consider
events within the business. For instance:
- Strikes: Can affect the economy
- Employment/unemployment: Employing new workers/ retrenched them
contributes to the employment/ unemployment rate.
- How the business runs: Can influence the physical environment which it
operates.
Techniques can be used to track events in the macro environment to
determine ways to eliminate threats and use opportunities to create a
competitive advantage, these are:
SWOT (Only opportunities and threats) & PESTLE analysis.
For SWOT: Both O and T are external. Opportunities=outside and is used
to create a competitive advantage. Threats=are things outside and needs
to remove to ensure survival and future success.
PESTLE stands for: Political Economical Social Technological Legal
Environmental.
Types of political factors:
- Government interference in the economic functioning of the
country,
- Degree of political stability impacts business confidence
- Political ties with other countries and degree of media freedom
(Criticise political parties in the country when officials make
themselves guilty of corruption)
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Distribution of this document is illegal R13,625 per year?
written by
lukepermall1
www.stuvia.com
Downloaded by: lukepermall1 | Want to earn
Distribution of this document is illegal R13,625 per year?
, Stuvia.com - The study-notes marketplace
Term 1
1.1) Business environment
SWOT analysis
Strengths:
Variety of quality products offered.
Sells across all demographic segments.
Large amounts are essential items, therefore retailer will be supported for
unpredictable times.
Weaknesses:
Consumers expect retailers to carry every boarder selections. Failing to do so
leads to disappointment.
Unsatisfied consumers after Franchise redesigns a store.
Unfriendly tellers leads to bad customer service.
Limitation to high disposable income.
Opportunities:
Provide “one stop” shopping experience (in-shop pharmacy).
Carry products to accommodate consumers with certain food preferences.
By being involved in CSR projects, increases retailer’s value in public.
Expand to online shopping and delivery services.
Threats:
Loyalty cards starts price wars, where no one wins except the consumer.
Stricter regulations causes a decrease in revenue.
Increase in petrol results an increase of all products.
Weak economy affects sales tremendously.
Downloaded by: lukepermall1 | Want to earn
Distribution of this document is illegal R13,625 per year?
, Stuvia.com - The study-notes marketplace
PESTLE ANALYSIS:
Political:
The current and future political ruling party: Laws that will directly
influence business.
Grants, funding and initiatives supported by the ruling party: Can apply
for grants during lock down but due to mismanagement of funds, there
is no money to help.
Political instability: A threat by the government for land grabs which
leads to poor exchange rates.
Economical:
Exchange rates: If poor, it will be expensive to import goods requested
by consumers.
Taxation policies and trends: If there is an increase, there will be a price
increase in the industry.
Inflation rates: If there is a steep increase, consumers disposable income
will be influenced and influence the general retailer.
Socio- economic:
Clients will determine retailer’s location.
Must carry products for consumers from different religions, different
food preferences and disposable income levels.
Must make sure products are accessible.
Needs to be involved in CSR projects.
Technological:
Stay up to date in change of technology (Online shopping, stock take).
Train personnel to use new technology.
Allow potential competitors in the market.
Ease of importing products.
Legal:
Be on par with laws that impact the business( unemployment, healthy,
safety)
Have required licenses.
Be on par with COVID regulations to determine what they can sell.
Downloaded by: lukepermall1 | Want to earn
Distribution of this document is illegal R13,625 per year?
, Stuvia.com - The study-notes marketplace
Environmental:
Make sure to minimize carbon foot print.
Be involved in CSR projects to help minimize the effect they have in their
immediate environment.
Change in legislation/ environmental issues will influence the industry.
Business environments:
1.) Macro environment:
The business has no control over situations but they should consider the
events to formulate strategies to adapt to situations. It is important to consider
events within the business. For instance:
- Strikes: Can affect the economy
- Employment/unemployment: Employing new workers/ retrenched them
contributes to the employment/ unemployment rate.
- How the business runs: Can influence the physical environment which it
operates.
Techniques can be used to track events in the macro environment to
determine ways to eliminate threats and use opportunities to create a
competitive advantage, these are:
SWOT (Only opportunities and threats) & PESTLE analysis.
For SWOT: Both O and T are external. Opportunities=outside and is used
to create a competitive advantage. Threats=are things outside and needs
to remove to ensure survival and future success.
PESTLE stands for: Political Economical Social Technological Legal
Environmental.
Types of political factors:
- Government interference in the economic functioning of the
country,
- Degree of political stability impacts business confidence
- Political ties with other countries and degree of media freedom
(Criticise political parties in the country when officials make
themselves guilty of corruption)
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