Chapter 1.3

Question 1

How can businesses be included in the macro environment?

Answer 1

•Businesses can create job opportunities for people in their communities,
•improve export markets, and produce education and training programmes.

Question 2

What are the advantages of businesses involved in the macro environment?

Answer 2

They will gain good publicity and attract and retain loyal customers.

Question 3

What are challenges in the micro-environment?

Answer 3

Difficult employees, shortage of skilled employees, lack of vision and mission, lack of adequate management skills.

Question 4

What are challenges of the market environment?

Answer 4

•Competitors
•shortage of supplies
•changes in consumer behaviour
•Demographics

Question 5

What are challenges of the macro environment?

Answer 5

Changes in income levels, political changes, labour restrictions, micro lending.

Question 6

What is the Labour Relations Act (No. 66 of 1995)?

Answer 6

Legislation that regulates the relationship between the employer and employee when resolving conflict in the workplace.