Business Studies Lecture Notes

Introduction

• Speaker: Elona Smith
• Channel Focus: Business Studies for grades 10, 11, and 12
• Lecture Topic: Influences on the Business Environment

Overview

• Focus on the first chapter for Term 1
• Revision of components of micro, macro, and market environments
• Understanding business control over these environments
• Introduction to challenges in these environments (detailed in another video)

Business Environments

Three Interrelated Environments

• Micro Environment: Internal factors
• Market Environment: Immediate external environment
• Macro Environment: Broad external environment
• All three environments are essential and interrelated for business operation
  • Example: Pandemic influence on education accelerated online learning

Micro Environment

• Internal: Complete control by the business
• Components:
  • Vision, mission, goals, objectives
  • Organizational structure, resources, culture
  • Management and leadership
  • Eight business functions

Market Environment

• Immediate External: Limited control, can influence
• Components:
  • Customers, suppliers, intermediaries
  • Competitors, organizations (CBOs, NGOs, regulators)

Macro Environment

• Broad External: No control, need to adapt
• Components:
  • Social, political, legal, economic
  • Technological, physical, global
• PESTEL Acronym:
  • Political, Economic, Social, Technological, Environmental, Legal

Business Control Over Environments

Micro Environment

• Complete Control: Internal affairs, strategic management
• Strategies:
  • Revise mission, vision, goals
  • Strategic management systems
  • Effective resource use
  • Employee alignment with business culture

Market Environment

• Limited Control: Influence possible
• Strategies:
  • Influence customers through marketing
  • Negotiate with suppliers
  • Form alliances with competitors
  • Engage regulators and unions

Macro Environment

• No Control: Adaptation needed
• Challenges:
  • Political, economic, social, technological, legal, environmental factors

Challenges in Business Environments

• Environments do not operate in isolation; they influence each other
• Example: Employee skill (micro) affects customer demand (market) and can result in macro-level impacts
• Strategies for Success:
  • Monitor and adapt to changes
  • Create job opportunities and social programs
  • Engage in collective bargaining

Benefits of Business Involvement in Macro Environment

• Improved public image
• Attraction of skilled employees
• Access to government tenders
• Tax rebates
• Anticipation of challenges and strategic opportunities

Conclusion

• Encourages active involvement in the macro environment for long-term success
• Summarizes the importance of understanding and managing the three environments
• Resources used include a textbook from the Western Cape Education Department

Additional Notes

• Recommended to take pictures of diagrams for visual learning
• Emphasis on strategic alliances and proactive adaptation to environmental changes
• Encouragement for feedback and interaction on the channel