Macro Environment Flashcards
What are the 6 business environments of the Macro environment?
Physical, social cultural and demographic , technological,legal and political ,international , economic
What is the Macro Environment?
External uncontrollable factors that impact the business
What is the physical environment made up of?
The physical environment is everything we see and feel with the 5 senses. Landscapes, buildings, infrastructure, weather etc
What Is the economic environment made up of?
Includes all businesses , government enterprises and organizations involved in the economy.
What is BOP?
Balance of payments, can be positive or negative.
Positive - when exports are higher than imports
Negative- imports higher than exports, weakens currency
What are the four stages of the business cycle?
Expansion, recovery, peak, recession
Income distribution: what is the Gini coefficient? How does it dictate on how well products do?
South Africa’s is 0.7. Income gap between the rich and the poor. This is due to high unemployment. Poor people cannot afford luxury goods and services have to focus on their basic needs first ( Maslow’s hierarchy of needs)
How does unemployment impact a business?
High unemployment negatively impacts a business because it reduces a consumers buying power because they cannot afford luxury products.
How does HIV/ AIDS impact a business?
Affects the business’s productivity, the cost of health care for treating Aids sufferers impacts the business and the economy
What is the Social , cultural and demographic environment made up of?
Social , cultural aspects- Beliefs, values, norms and religions, customs
Demographics- age, gender, education level, income
How does the technology increase a business’s productivity?
Can be used to increase sales (online shopping)
Automate procedures
Better materials
Improve processes and communication
How does a political party influence a business?
Viewpoints and attitudes influence a business. Stability also influences a business.
What are the 4 most important laws that influence businesses?
Basic conditions of employment Act (1997)
Employment Equity Act (1998)
Skills development act (1998)
Labour relations act (1995)
What is the international environment?
Directly and indirectly impacts a business. Everything that happens outside the country’s borders that impact the economy or your business
