Influences on control factors relating to the business environments

Question 1

Reasons why business have full control over the micro environment

Answer 1

•Business owners and managers have a great control over the internal business, which covers day to day decisions
•Establish and revising its vision, mission statement, goals and objectives in line with current trends
•They use their skills and resources to create goods and services that will satisfy existing and prospective customers

Question 2

Reasons why businesses have influence/limited control over the market environment

Answer 2

•A business could attract and influence customers’ decisions through good marketing campaign
•Businesses could also buy in bulk to get discounts from their suppliers and in this way ensure that they have adequate raw materials at all times
•Businesses can influence the decisions of unions if they try to maintain a good relationship with them

Question 3

Reasons why businesses have no control over the macro environment

Answer 3

•Political factors: government policies and political stability
•Economic: inflation rate and fluctuation in prices of foreign currency
•Social factors: low-income levels of consumers and unemployment

Question 4

Ways in which businesses can be involved in the macro environment

Answer 4

•Knowing government regulations and operating within them
•Lowering its impact on the environment
•Keeping up with new technologies to improve production and marketing

Question 5

Benefits of involvement in the macro environment

Answer 5

•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