02 su 2---the-business-environments---web-page (1)
TRANSCRIPT
THE BUSINESS ENVIRONMENT
Study Unit 2
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LECTURE OUTLINE
1 INTRODUCTION
2 COMPONENTS OF THE BUSINESS ENVIRONMENT
3 INTERNAL (MICRO) BUSINESS ENVIRONMENT
4 EXTERNAL MARKET (TASK) ENVIRONMENT
5 MACRO (MEGA) BUSINESS ENVIRONMENT
6 BUSINESS ENVIRONMENTS OF FIRMS – OPEN SYSTEMS
7 TYPES OF MARKETS IN THE MARKET ENVIRONMENT
8 ENVIRONMENTAL SCANNING
9 ANALYSIS OF THE BUSINESS ENVIRONMENT (SWOTs)
10 VARIABLES IN THE BUSINESS ENVIRONMENT
11 REVIEW OF THE STUDY UNIT
12 APPLICATION EXERCISES
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INTRODUCTION
Business enterprises cannot function in isolation Open systems interact with their environment Business enterprises exist in and are surrounded by an
‘environment’ – the business or organisational environment Society and business enterprises are mutually dependent
• Business enterprises satisfy societal needs Relationship between society and business enterprises takes place
in a changing environment
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COMPONENTS OF THE BUSINESS ENVIRONMENT
Different environmental variables exist internally and externally to the business enterprise
Environmental variables have a positive or negative influence on the enterprise
Business environment consists of two sub-environments:
• Internal (micro) environment
• External environmentMarket environmentMacro environment
Mutual relationships exist between these environments
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ENVIRONMENTAL SCANNING
Identification and forecasting phenomena in the environment Ongoing environmental scanning is essential for strategy
formulation Enterprises continuously engage in identifying and forecasting
opportunities and threats Enterprises need to proactively or reactively respond to changing
conditions in the environment Various sources of information are available to assist with scanning
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ANALYSIS OF THE BUSINESS ENVIRONMENT
SWOTs analysis Environmental conditions may be favourable or unfavourable:
• Opportunity
Represents favourable (positive) conditions in
micro, market, macro environments
Advantageous to firm
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ANALYSIS OF THE BUSINESS ENVIRONMENT
SWOTs
• Threat
Represents unfavourable (negative) conditions inmicro, market, macro environmentsDetrimental to firm