Chapter Two Flashcards
What are the ways in which businesses can ADAPT to challenges of the MICRO environment? :
- Difficult employees
- Lack of vision and mission
ꕤ Adapt to Difficult employees :
- Can develop strategies to deal with different types of personalities
- Can offer counseling sessions to employees with personal problems.
ꕤ Adapt to Lack of vision and mission :
-Management must have a clear vision which is understood and communicated with all employees
-The vision and mission should direct
the use of resources and actions of employees
-Business’s values must be shown in their ethnically standards and the way employees are treated.
What are the ways in which businesses can ADAPT to challenges of the MICRO environment? :
- Lack of adequate management skills
- Unions, strikes and go-slows
ꕤ Adapt to Lack of adequate management skills:
- Managers need good interpersonal and conflict resolution skills
- Managers must attend management and leadership courses
- Business’s may request mentors from successful businesses to train their managers
ꕤ Adapt to Unions, strikes and go-slows
- Managers need to deal FAIRLY and transparently with trade unions.
- Businesses can make use of CCMA to help reach an AGREEMENT with trade unions.
- Need to build relationships with union representatives so that through positive negotiations strikes are avoided.
What are the ways in which businesses can ADAPT to the challenges of the MARKET environment ? :
- Competition
- Shortage of supply
- Change in customer/consumer behavior
ꕤ Adapt to COMPETITION :
- Can conduct research and identify customer needs
- Offer more personal services
- Ensure that staff is well trained
ꕤ Adapt to Shortage of supply:
- Maintain good relationship with suppliers
- Select suppliers that are reputable and trustworthy.
- Enter into CONTRACTS with suppliers to SECURE raw materials of good quality.
ꕤ Adapt to Change in customer/consumer behavior :
- Marketing of businesses should conduct an on-going research to INVESTIGATE the general Behavioral patterns
- Marketing manager must MONITOR + respond to CHANGES in consumer patterns of CONSUMPTION.
What are the ways in which businesses can ADAPT to the challenges of the MARKET environment ? :
- Demographics and Psychographics
- Socio cultural factors
ꕤ Adapt to Demographics and Psychographics :
- Need to ensure information is up to date and accurate
- Interpret data accurately so they can plan effective marketing strategy.
ꕤ Adapt to socio-cultural factors:
- Entrepreneurs need to remain informed of socio-cultural changes
- Businesses must be able to modify the marketing strategy and marketing plan accordingly
What are the ways in which businesses can ADAPT to the challenges of the MARCO environment ? :
- Information management
- Strategic responses
- Organizational design and flexibility
ꕤ Adapt to Information management :
- Modern IT solutions enable businesses to satisfy customer needs faster and faster.
- Businesses may benefit from an increase in market share and profitability.
ꕤAdapt to strategic responses
- Get a clear picture of each stakeholders viewpoint and requirements.
- They must make strategic plans to remain sustainable in a competitive market
- Businesses must be aware of new competitors in the market and strategically respond to threats.
ꕤ Adapt to Organizational design and flexibility :
- They need to change the organizational design to adapt to a specific challenge
- Organizational design describes how a business is structured and how it communicates its culture
What are the ways in which businesses can ADAPT to the challenges of the MARCO environment ? :
Mergers, takeovers, acquisitions and alliances are implemented as SOLUTIONS.
Businesses need to sometimes act quick in order to survive as a result of some challenges in business environments.
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ꕤ Mergers
- Occurs when two companies join together to form one business.
- Two businesses become one.
ꕤ Takeovers
-The purchasing of a company by another company, usually against the will of their targets.
ꕤ Acquisitions
-A business buys another business at an agreed price.
ꕤ Alliances
- These are agreements when two or more business work together to achieve their objectives (work together)
- They remain separate and merely co-operate with one another.
What are the ways in which businesses can ADAPT to the challenges of the MARCO environment ? :
Direct influence on the environment and social responsibility:
Direct influence on the business usually results from legislation, trade agreements and competitor strategies.
What are the ways in which businesses can ADAPT to the challenges of the MARCO environment ? :
What are the ways in which businesses can have a DIRECT INFLUENCE on the environment ? :
- Influence it’s suppliers by signing long-term contracts
- Create new USES for a product by finding NEW customers
- Influence regulators through lobbying and bargaining
- Initiate bargaining sessions between management and unions
What are the ways in which businesses can ADAPT to the challenges of the MARCO environment ? :
- Social responsibility
- what projects that can be undertaken by business as part of social responsibility?
- What are the benefits of CSI projects?
- Increasing pressure in the business environment, is forcing businesses to become more socially responsible by giving back to the communities
ꕤ Projects that can be undertaken by business as part of social responsibility?
- Charity community projects
- HIV/AIDS awareness programs
- Engaging economic development
- Making donations to charity organizations
ꕤ Benefits of CSI projects?
- CSI projects promote teamwork with businesses
- CSI projects attract investors because of increased profits
- Promotes customer loyalty resulting in more sales
- Businesses enjoys support by the community
What is lobbying?
Reasons for lobbying ?
ꕤ lobbying
- Lobbying refers to the process of trying to influence legislation or parliamentary decisions making
- involves acquiring public support for an issue such as children rights
ꕤ Reasons why businesses lobby :
- Bussinesses lobby their regulator in order to try influence prices, polices and other decisions made by the regulator.
- Lobby advances business mens cause and builds public trust.
Types of lobbying ?
Types of Lobbying
ꕤHedging against inflation
• Businesses use hedging to protect their financial investments by spreading the risk
ꕤBargaining sessions between management and unions
- Enable employees to negotiate with employers as a group to protect employees rights
- Prevent labour strikes and provide critical information to people in power.
ꕤInfluencing supervisory regulators
•Businesses imfluenve and negotiate with these regulators to protect their own sustainability
What is Networking ?
Examples of Networking?
What are the benefits of Networking?
ꕤNetworking
- Goal of networking is to reach as many people as possible, and to make every connection count
- Tool used by businesses to increase sales
ꕤ Examples of Networking :
- Formal networking -commerce/industry
- Informal networking -social
- Social media and the internet.
ꕤ Benefits of networking :
- Plays a role in the marketing and expansion of a business
- Assits businesses in making future business decisions.
- Businesses can gain support when representation to various authorities is planned.
What is power relations ?
What are ways businesses can form power relations ?
ꕤ Power relations
-is the power that the business has on the environment that determines the status it holds within its industry
ꕤ Ways businesses can form power relations ?
• Strategic alliance/ partnership agreement
-they formed in order to benefit each in each other’s involvement
• Persuasion of large investors
-benefits from relationships so business can gain credit more easily and better deals from suppliers
• Company representatives influence
-this representative persuades investors to invest in a particular business practice
