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10 Business Studies > Business Environments and Sectors > Flashcards

Business Environments and Sectors Flashcards

1
Q

What is the economy?

A

A complex system with the businesses and individuals interacting on multiple levels

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2
Q

Why is it not possible for one business to operate independently?

A

It needs inputs from government and other businesses and individuals

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3
Q

What does the micro environment consist of?

A

Employees, cash flow, capital assets, materials, structures

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4
Q

What does the market environment consist of?

A

Stakeholders, competitors, suppliers, intermediaries, consumers

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5
Q

What is the macro environment consist of? 

A

Political, environmental, social, technological

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6
Q

What does the micro environment incorporate?

A

All the controllable internal aspects of business. Management of the business has most control

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7
Q

Why can a business never have absolute control?

A

There are always other variables such as taste of consumers or stop becoming obsolete

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8
Q

What can happen if management identifies these problems?

A

They can learn from the issues that arise and possibly prevent future problems

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9
Q

What is the market environment?

A

The business interact with some of the outside role players. The business has less control because I can only influence these factors

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10
Q

What is the macro environment?

A

It compromises of external factors over which the business has absolutely no control as the events are much bigger and more complex

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11
Q

What is essential for businesses to have in the macro environment?

A

Contingency plans such as risk management plans, safety codes and insurance to cover all possible damages

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12
Q

Why are the environment inextricably linked?

A

Forces in one factor has a ripple affect on the others

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13
Q

What must management make decisions to influence of in the control in the Micro environment?

A

Has to make decisions to implement or react to the forces from the market and macro environments 

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14
Q

Why is it imperative that management set up the micro environment of the business?

A

It works effectively to manage the daily running of the business but put controls in place to manage the other two environments

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15
Q

What was successful businesses do you?

A

Be proactive and have policies and procedures in place to pre-empt problems

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16
Q

What are some of the controls micro environment have?

A

• Establish a firm mission and vision, clear objectives and ensure all employees are aware and work towards these
• Employ a competent staff in each area of business – ensure business functions optimally
• Ensure resources are probably use with mini minimum wastage, taking into consideration of needs of community and environment
• Prioritise ongoing training for managers and employees – stay up-to-date with latest developments 

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17
Q

How can the market environment pre-empt problems?

A

• Maintain good relationships with customers – continued support
• Establish solid contract with reputable supplies – paid on time treated with respect
• Communication and bargaining regularly with trade unions – assuring agreement at Hered to you
• Relationships with other stakeholders are nurtured to avoid conflict and prevent problems
• Relationships with competitors are amicable
• Determine who the channel leader is in the distribution network 

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18
Q

How do you determine who the channel leader is?

A

Understanding who has the most power in the transaction process will enable management to decide who has the greatest influence over prices, terms of payment

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19
Q

What are the general safeguards that can be put in place in the macro environment?

A

• When is of and interaction with the environment around business – environmental scanning
• Remaining up-to-date with changes in technology, information management, political changes, legislation
• Networking allows individuals and businesses to develop new contacts
• Power relationships drinking strategic alliances and influence agreed by aligning with Industry leaders, influential managers or government representative. Harnessing the power of collective-bargaining 

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20
Q

What does AHI mean?

A

Afrikaans Handels Institute

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21
Q

What does BBF mean?

A

Black Business Forum

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22
Q

Define environmental scanning

A

When is of an interaction with your environment around the business – local community, country and global situation

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23
Q

Defined networking

A

And important to which allows both individuals and businesses to develop new contacts. May open doors to new discoveries, new strategic alliances or sharing of resources to solve problems

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24
Q

What are safeguard specific to the individual?

A

PESTLE factors

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25
What is physical in pestle?
Being aware of potential dangers – fires, floods infrastructure shortcomings
26
What is political?
Keeping up-to-date with current news and political threats. Not only in business is home country but also in countries where there are branches, suppliers and customers
27
What is ethical?
Know to what the login code and general business practice in similar businesses support. Cognizance of issues such as religious and other beliefs 
28
What is economic?
State of the economy and factors such as inflation, exchange rates, recession and interest rates very volatile and management needs to keep the shop I’ll list
29
What is social?
Issues or differ depending on the demographics of its surrounding community, employees and customers. Management will identify the needs that are most prominent and said policies in place
30
What is technological?
Management has to ensure that they have the expertise, training and budget in order to keep up-to-date with competitors
31
What is legal?
Businesses that you know have a full-time lawyer legal department need to have someone on standby who knows them and is able to keep up-to-date with changes and help in crisis
32
What are environmental issues?
Ethical considerations of saving the planet and the degree to which customers and suppliers are influenced by environmental policies of the business
33
Why will management to use various tools?
To analyse and understand the environment of their particular business
34
Name the most common business tools
1. SWOT Analysis 2. Porters six forces model 3. PESTLE Analysis 
35
What does strength stand for in swot analysis?
The advantages capabilities and resources. Marketing that reaches, distribute and awareness
36
What is weaknesses in swot?
Lack of competitive strength, financials, vulnerability, timescales, deadlines, pressures, continuously, supply chain robustness
37
What is opportunities in the swot analysis?
Market development and business product development
38
What are threats in this swot analysis?
Environmental effects, market demand, obstacles
39
How is the micro environment analysed in the swot analysis?
Strengths and weaknesses
40
How is the market and macro environment analysed in the swot analysis?
External factors such as opportunities and threats
41
Who developed porters six forces model?
Michael Porter
42
What is porters six forces model used for?
Analysing the industry within which a business operates which is widely used in today’s competitive markets. It is used to measure profitability
43
What type of view does the porters six forces model have on the industry?
Holistic view on the industry in which the business is operating
44
What aspect does the porters model look at?
• Level of rivalry in the market • Availability of substitute products • Threat of new entrance that may join the market • Power of suppliers • Power of buyers • Complimentary products 
45
What is level of rivalry in the market?
The business must find out as much as possible about the competitors. Doing a competitor profile is not a legal. Just getting to know your enemy so you can pre-empt any actions and adapt its own strategies to be more successful
46
What is getting to know everything about the competitors consist of?
Patents, quality, brand loyalty, new products, marketing, promotion strategies, distribution channels, employees, organisational culture, morale,
47
What is the availability of a substitute product?
Competitors may be selling the same product. When the a lot of the substitute products you need to make sure that yours is cheaper
48
What is a substitute product?
A different product that satisfies the same need
49
What is the threat of new entrance to the market?
Want to look at future competitive threat in order to establish what threats and opportunities are in the market environment.
50
What does the greater the profits up an opportunity for?
There will be new entrance in the market.
51
How is the threat of new entrance diminished?
If there are certain barriers entering the market
52
What made some of the barriers include?
Brand loyalty from existing customers, government policies, huge capital outlay or distribution channels
53
Why is these barriers an advantage to existing operators?
It makes it more difficult for a business to branch out to diversification
54
What is the power of suppliers?
A business does not have power when there are lots of suppliers in the industry
55
What is the interest of both the supplier and business?
To strengthen and build on this relationship for mutual benefit. If this is not done the business will suffer financial, public relations and other consequences
56
What is important in order to be a successful business?
Right quality and quantity of material at the right time at a reasonable price
57
What is the power of buyers?
It is important to know the buyers in terms of the demographics and the geographical profile. They can also target their lifestyle such as hobbies recreation and political beliefs. When there are a lot of businesses we do not have power
58
What maybe business also supply goods to?
Intermediaries in the distribution channel
59
When would a geographical profile only be useful?
To identify regions where there is a high concentration following certain religions
60
How is this information obtained?
Primary or secondary resource
61
Why would a buyer consider different alternatives
If the buyer is not satisfied or feels the competitor off is a better value for money
62
What does buyers turning to alternatives mean?
Financial loss for the business
63
What are complimentary products?
Services or goods that add value to your original product which means they work better together than apart
64
What type of relationship does a complimentary product form?
A symbiotic type of relationship and a good marketing strategy would be used to Salit
65
What is pesto analysis?
Political, economic, social, technological, environmental, legal
66
Why should we categorise businesses?
They are so diverse an Operate on many different levels – understand similarities and differences 
67
What are the two ways the word sectors is define?
1. Public and private sectors 2. Primary secondary and tertiary sectors 
68
What does public and private sectors refer to you?
The type of ownership and the aim of business
69
What is the public sector?
Owned and controlled by the government with the aim of providing the necessary infrastructure in the company – enable citizens to live and experience or constitutional right
70
Name a few constitutional rights
Living, working and staying healthy
71
What is the public sectors primary drive?
Not necessarily profit driven which means that the government of an subsides them in order to keep the cost of usage to an affordable minimum
72
What is the private sector?
Businesses owned and controlled by individuals, groups of individuals with the aim of making a profit
73
What concept you own is used to make as much possible money?
Supply and demand
74
What does supply and demand mean?
The businesses that do not sell products that are in demand, give bag service will go out of business
75
How do you or physical products go through the sectors of the economy?
Go to different stages of development
76
How does natural things occur?
Without human interference but today man has learnt to cultivate, farm and raise animals by working with nature
77
What are the five categories of primary products?
1. Agriculture 2. Animal husbandry 3. Fishing 4. Forestry 5. Mining 
78
Why did society start to diversify?
People could do what they were good at and enjoyed and swapped XS products for things they needed
79
Today how are these materials are produced?
Commercially with large companies which often create artificial environment in order to manipulate the conditions to produce bigger and better products
80
What is the secondary sector?
One that takes the role materials that have been extracted in the primary sector and convert them into products that suits the Tayson demands of the human target market
81
What are the important aspects of the secondary sector?
• Most products are fairly complex and will go through several processes • Production process includes the packaging for resale. In the sector the product is ready for the consumer 
82
What is the tertiary sector?
Interest both the production run smoothly and the products get to the customer safely on the correct time and state
83
What does the tertiary Sector deal with?
Services
84
What are the two types of services?
1. Personal services 2. Commercial services 
85
What are personal services?
Done for individuals
86
What are commercial services?
Done for businesses
87
How can Numerous services fall into either category? 
Depending on who the client is
88
When does tertiary services occur?
Throughout the production process
89
Why do you all products have a service components?
They need to be manufactured, transported
90
When will the costing of the product component and service component to be taken into account?
In the final pricing

10 Business Studies (21 decks)

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