Influences And Challenges Of The Business Environments

Question 1

Challenges of the micro environment

Answer 1

Difficult employees
Lack of adequate managerial skills
Unions
Lack of vision and mission statement
Strikes and go slows
Skills shortages among employees
High employee turnover
Employee absenteeism

Question 2

Advantages/Benefits of involvement in the macro environment

Answer 2

The business can contribute to wealthier consumers.
Reduced industrial conflict and increase productivity.
The business can accurately promote a cause that is a concern to the society.

Question 3

Challenges of the market environment

Answer 3

Competition
Shortage of supply
Changes in consumer behaviour
Demographics and psychographics
Socio-cultural factors

Question 4

Ways in which businesses can overcome competition in the market environment

Answer 4

Offering more personal services by being responsive to the customers needs or expectations.
Selling products of a superior quality/new products/services that the customers might be interested in.
Improving on customer services and keeping them happy.

Question 5

Challenges in the macro environment

Answer 5

Change in income levels
Political changes
Contemporary legislation
Labour relations
Micro lending
Globalisation
Social values and demographics
Socio economic challenges

Question 6

Examples of contemporary legislation

Answer 6

National Credit Act (NCA)
Consumer Protection Act (CPA)
Employment Equity Act (EEA)
Broad based Black Economic Employment Act (BBBEE)
Basic Conditions of Employment (BCE)
Labour Relations Act (LRA)
Skills development Act (SKA)
Compensation for Occupational injuries and Diseases Act( COIDA)