Business Sectors
- Business’s internal capabilities - Helps gain comp. adv.
Public →
Macro Environment
S
B to the pu
III
. Business must use strengths to gain comp. adv.
trengths Private →
P E S T L E
olitical conomic ocial echnological egal nvironmental
- Factors that can limit the businesses success
- Can have an impact on business’s comp. position
I
Government Policy Economic growth Population growth rates Technology incentives Discrimination laws Weather eaknesses
Political stability Levels of innovation
Exchange rates Age distributions Antitrust laws
Corruption
Climate
Automation Employment laws - Favorable external factors
Foreign trade policy Interest rates Career attitudes Environmental policies - Resources to capitalize on
Tax policy R&D activity Consumer protection laws factors =↑demand
Inflation rates Safety emphasis Climate change
Labour law
Disposable income Health consciousness
Technological change Copyright + patent
laws
pportunities
Trade restrictions
Technological awareness
Pressure from NGOs
- Unfavorable external factors
11
Unemployment rates Lifestyle attitudes Health +safety
laws - Risk to business → can damage
Cultural barriers
success P
hreats
Sec
Te
Market Environment Business Environments Qua
-Est ↓ ↳
Qu
Suppliers
Consumers
Strategic
Alliances NGO’s
Industry
Regulators -
Competition
Intermediaries • Any pr
econom
employ
• A succe
custom
Business Functions Micro Environment
• A succe
sustain
citizens
,ORGANIZATIONAL CULTURE BUSIN
↑
• Describes a busin
• Arrangement of Human Resources,authority, + information distribution to behavior + attitu
work together as a systematic whole → aimed at achieving business goals. (employees, manag
• Clear structure brings clarity to managers + employees regarding roles • Positive culture =
+ information communications.
decisions, etc.
-
MICRO-ENVIRONMENT
internal → business has direct control
B
, FINANCIAL
RISK MANAGEMENT
GENERAL
Capital; own, borrowed or invested Develops a strategic business plan → perfor
→ sufficient capital + employment = • identifies + monitors risks profitability:
• puts risk management • Vision: aimed at future, informed by past & pre
productivity • Mission: refined vision, specifies reason for bus
• Fixed Capital (LT): used to buy fixed strategies in place → describes business+ its values
• Goals (LT) + Objectives (ST) - measurable
assets (land, building, vehicles, reduces difficulties • Strategy:lays out plan of action to reach goals
objectives
equipment)
• Working Capital(ST): used to buy
MIS • Delegation: allocation of duties, tasks, authority +
trading inventory (cost of sales, pay • management responsibilities → work distribution
information systems
creditors, pay expenses → rent, • Discipline: aimed at improving behavior. Must be fai
• ensures necessary consistent
salaries, etc.) tech is available when • Motivating: encourage employees to perform their b
+ where necessary
PRODUCTION
Entrepreneurial skill, land, labor and capital are
organized in a way that produces Gs/Ss to the
BUSINESS FUNCTIONS
satisfaction of consumers + are able to generate
profit.
• Aim:lower INPUT costs, without compromising
OUTPUT quality.
Leads to choices → resource mix + production
PUBLIC RELATIONS
• Ensures positive brand image
process.
• Ensures a business contributes to society in
Products → differentiated, created, suiting needs
an ethical + sustainable way
of customers
• Works to improve relationship between
business & stakeholders
- Business’s internal capabilities - Helps gain comp. adv.
Public →
Macro Environment
S
B to the pu
III
. Business must use strengths to gain comp. adv.
trengths Private →
P E S T L E
olitical conomic ocial echnological egal nvironmental
- Factors that can limit the businesses success
- Can have an impact on business’s comp. position
I
Government Policy Economic growth Population growth rates Technology incentives Discrimination laws Weather eaknesses
Political stability Levels of innovation
Exchange rates Age distributions Antitrust laws
Corruption
Climate
Automation Employment laws - Favorable external factors
Foreign trade policy Interest rates Career attitudes Environmental policies - Resources to capitalize on
Tax policy R&D activity Consumer protection laws factors =↑demand
Inflation rates Safety emphasis Climate change
Labour law
Disposable income Health consciousness
Technological change Copyright + patent
laws
pportunities
Trade restrictions
Technological awareness
Pressure from NGOs
- Unfavorable external factors
11
Unemployment rates Lifestyle attitudes Health +safety
laws - Risk to business → can damage
Cultural barriers
success P
hreats
Sec
Te
Market Environment Business Environments Qua
-Est ↓ ↳
Qu
Suppliers
Consumers
Strategic
Alliances NGO’s
Industry
Regulators -
Competition
Intermediaries • Any pr
econom
employ
• A succe
custom
Business Functions Micro Environment
• A succe
sustain
citizens
,ORGANIZATIONAL CULTURE BUSIN
↑
• Describes a busin
• Arrangement of Human Resources,authority, + information distribution to behavior + attitu
work together as a systematic whole → aimed at achieving business goals. (employees, manag
• Clear structure brings clarity to managers + employees regarding roles • Positive culture =
+ information communications.
decisions, etc.
-
MICRO-ENVIRONMENT
internal → business has direct control
B
, FINANCIAL
RISK MANAGEMENT
GENERAL
Capital; own, borrowed or invested Develops a strategic business plan → perfor
→ sufficient capital + employment = • identifies + monitors risks profitability:
• puts risk management • Vision: aimed at future, informed by past & pre
productivity • Mission: refined vision, specifies reason for bus
• Fixed Capital (LT): used to buy fixed strategies in place → describes business+ its values
• Goals (LT) + Objectives (ST) - measurable
assets (land, building, vehicles, reduces difficulties • Strategy:lays out plan of action to reach goals
objectives
equipment)
• Working Capital(ST): used to buy
MIS • Delegation: allocation of duties, tasks, authority +
trading inventory (cost of sales, pay • management responsibilities → work distribution
information systems
creditors, pay expenses → rent, • Discipline: aimed at improving behavior. Must be fai
• ensures necessary consistent
salaries, etc.) tech is available when • Motivating: encourage employees to perform their b
+ where necessary
PRODUCTION
Entrepreneurial skill, land, labor and capital are
organized in a way that produces Gs/Ss to the
BUSINESS FUNCTIONS
satisfaction of consumers + are able to generate
profit.
• Aim:lower INPUT costs, without compromising
OUTPUT quality.
Leads to choices → resource mix + production
PUBLIC RELATIONS
• Ensures positive brand image
process.
• Ensures a business contributes to society in
Products → differentiated, created, suiting needs
an ethical + sustainable way
of customers
• Works to improve relationship between
business & stakeholders
