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UNIT 1
A CHANGINGBUSINESS ENVIROMENT
Before they begin the lesson learners should be able to: Define the business environment; Discuss the complexity of a changing business environment; Identify and explain the elements of the micro (internal) business
environment; Explain the SWOT analysis; Discuss the meaning of the importance of sustainabilityIn the business environment. Explain the importance of managing change in the Business environment;
Learning Outcomes
The business environment
The business environment compromises everything that can affect the establishment, growth and survival of an organisation positively or negatively and therefore influence the achievement of the objectives of an organisation.
MIRCO ENVIROMERNT
MARKET ENVIOMENT
MACRO ENVIROMENT
THE INTERNAL (MICRO) BUSINESS ENVIROMENTMicro environment is the organisation as a business entity.
Micro environment
Organisational culture
Change and innovation
Management and employees
Vision, mission, goals and objectives
Organisational structure
Vision, mission and objectives
Organisational structure
Change and innovation
Organisational culture
Management & employees
Vision and mission describes what the organisation wants
to achieve the product and
services
is a unique set of
characteristics, assumptions,
norms and beliefs presented
by employees and managers
A well developed organisational
structure allows an organisational
entity to realise its vision,
mission, strategy and objectives
A innovative organisational
culture would be conducive to the
organisation exposed to
change.
Management and employees are required to
develop, formulate,
implement the goals and objectives
Micro environment
THE MARKET ENVIROMENTThe micro environment includes all the forces and elements also known as role players, that interact with the origination on a more direct basis.
SuppliersAre those organisation that provide
raw materials to another organisations that use in
manufacturing of other products, or provide completes product to
another organisation for retailing purposes. Customers
Customers are existing and potential buyers and users of products and services, offered by the organisation which will optimally satisfy their customer
Competition Competition can predominantly be described as other organisation in the same industry, providing similar products and services o the same group of customer
Intermediaries Organisations that manufacture
products sometimes distribute this products in large quantities to other organisations known as
retailers and wholesalers
Stake holdersCan be described as
individuals or groups that have some share or direct
relationship with an organisation
THE MACRO(EXTERNAL) ENVIROEMNTThis environment includes all the element which influence all organisations, although organisations have limited influence on this elements.
MACRO
Technological environment
Natural environment
Social environment
International environment
Legal-political environment
Economic environment
technological elementThe natural environments consist of elements that make up the resource base. These includes
Social elementsthe socio cultural environment reflects on social, community and cultural issues within a country or region
Education
Culture
Language
Income
• Population
Health
infrastructure
Economic elementsthe economic element includes all the economic factors that impact on and influence the economic status
International and global elements
Economy and new
technologyEconomic
performance of a country
Infrastructure of a country
Government efficiency of a
country
Organisational efficiency
Foreign investemnt
conclusion /Continuous monitoring of the external and external business environment
is required. This activity is the responsibility of management. Managers can only plan for the future, organise its organisation accordingly, provide leadership with a change taking place and controlled by measuring their performance. Their performance during this time, if there are informed of the organisational internal strength and weaknesses and external opportunities and threats.
References
Drotskie A.; Kara M. & van de Linde W. (2010). Business Management: a focused introduction. Cape Town: Future Vision Business Consultants( FVBC).