Chapter 2- Adapting To Challenges Of The Business Environments

Question 1

In what ways can business deal with challenges in the micro environment?

Answer 1

• Difficult employees

Revisit recruitment and induction process
Develop strategies to deal with different people
Offer counselling sessions

• Lack of vision and mission

Management must have a clear vision and mission
Vision and mission must be explained to all employees
Vision and mission must be implemented in a way that shapes the environment

• Unions

Managers need to deal fairly with trade unions
They need to build relationships with unions
They can use CCMA to help reach trade unions

• Strikes and go slows

Business should treat employees fairly so strikes are avoided
Good relationships should be maintained with employees and management

Question 2

Identify ways in which business can deal with challenges in the market environment

Answer 2

• Competition

Do research and identify customers needs
Offer products and services
Offer more personal services

• Shortage of supply

Select suppliers which are trustworthy
Maintain good relations with suppliers
Sign contract ps with suppliers to secure raw materials

• Change in consumer behaviour

Research should be done to see what consumers like
Marketing manager should monitor changes in consumer behaviour

• Socio cultural factors

Entrepreneurs should be aware of Socio cultural changes
They must be able to respond to changes
Business must employ people from different cultures

Question 3

List ways in which business can deal with challenges in the macro environment

Answer 3

SMSD

Strategic responses

Mergers takeovers acquisitions and alliances

Social responsibility

Direct influence on the environment

Question 4

What is the meaning of lobbying?

Answer 4

Lobbying refers to the process of trying to influence legislation or parliamentary decision making

Question 5

Suggest types of lobbying

Answer 5

• Hedging against inflation

Use it to protect financial investments by spreading the risk

• Bargaining sessions between management and unions

These sessions enable employees to negotiate with employers as a group

• Influencing supervisory body

There are Large numbers of supervisory bodies who operate in the business environment

Question 6

What is the meaning of power relations?

Answer 6

Power relations can be described as a business’ ability to control its environment