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).