Chapter 3 Micro Environment Flashcards
Name 7 functions of macro
Institutional environment Economic Physical and natural Social Technological Legal and political International
Macro environment is
External environment
Direct impact on relationship between customers, suppliers, investors and business owners
Aspects of physical and natural
Physical location, natural resources and infrastructure
Physical location
Large impact
Needs to be close to things
Target,transport,
Natural resources
So they have to be in the right environment to get what they need but also close to target market
Infrastructure includes
Communication systems
Transport systems
Energy resources
Services
Environmental awareness
Has to look after environment and create a good image for the business
What 7 aspects are in the economic environment
Economic growth Interest rates Labour and unemployment Inflation Taxation Exchange rates and international rates Government
Social, cultural and demographic environment
Affects all business and practices
Employees
Target market
Workforce
Cultural environment is
The cultural environment affects the demand and supply of goods
Such as religion and tradition/social behavior
Technological change is
Has an affect on the business operation,marketing,production and communication
Name each law and act of legal environment
Labour relations act 66 of 1995
The occupational health and safety act 85 of 1993
The skills development act 37 of 2008
The employee equity act 55 of 1997
The basic conditions of employment act 75 of 1997
The environment conservation act 73 of 1989
Institutional environment includes
Government departments,municipalities and other state institutions
What does the government act as
As a consumer
A employer
A supplier
And as a regulator
What 6 aspects does international environment include
Communication Trade Policies and regulations Prices and exchange rates Travel and transport Global trends
