TERM 1 Topic 1.2 - Challenges of the business environment

Question 1

Name the challenges of GLOBALISATION and how it affects South Africa

Answer 1

South Africa :
1) is a DEVELOPING country
2) has large national DEBT
3) Infectious DISEASE

Question 2

Discuss the challenges of GLOBALISATION and how it affects South Africa (discuss any 3)

Answer 2

DEVELOPING COUNTRY:
- Disadvantaged when SA is dealing with developed countries(Europe/North America). Level of competition is high.

LARGE NATIONAL DEBT:
- SA has to pay it back; it is considered a risk to investors from other countries.

INFECTIOUS DISEASE:
- Travel is so easy between continents, but disease can also spread easily. Disease spreads to poorer countries not having resources/knowledge how to deal with it. Weakening the labour force.

MINERAL RIGHTS IN POORER COUNTRIES:
- Stronger countries exploits poorer countries; buy mineral rights, plunder natural resources

CHEAP LABOUR:
- poor working conditions, keep their prices low

Question 3

Discuss how a business could adapt to the following challenges in the MICRO ENVIRONMENT:

• Lack of adequate management skills

Answer 3

Training management staff and showing them how to share their knowledge

Question 4

Discuss how a business could adapt to the following challenges in the MICRO ENVIRONMENT:

• Difficult employees

Answer 4

Open channels of communications (workers must be able to voice their concerns)
:) :) :) :) :)
Management to address each concern (even if
they cannot do anything about it, showing that
they care and listens to their workers) :)

Question 5

How can a business adapt to the following challenge in the MARKET ENVIRONMENT:

• changes in social-cultural patterns
  (trends & fashion)

Answer 5

Adapt to trends & fashion before competitors do, be aware of the latest trends.

Also anticipate the changes

Question 6

How can a business adapt to the following challenge in the MARKET ENVIRONMENT:

• suppliers unable to provide goods

Answer 6

Don’t buy from only ONE supplier and make sure your STOCK LEVELS are adequate

Perks for having an alternative source
+ see if prices are competitive
+ check the quality
+ has a fall back if the one supplier is out of stock

Question 7

How can a business adapt to the following challenge in the MACRO ENVIRONMENT

• Change in income levels (income from their
  customer base)

Answer 7

Reduce item prices if you note items are not selling
OR
Introduce a cheaper alternative (lesser quality)
Then advertise to lower income group of customers.

ON THE OTHER HAND :)

Cater for higher income customers - stock a small ‘boutique’ selection of goods targeted at the wealthier customer

Question 8

How can a business adapt to the following challenge in the MARKET ENVIRONMENT

• socio-economic issues such as increased
  poverty, unemployment and crime

Answer 8

Inform workers/employees of any danger and how to deal with them

EXAMPLE: Transport service for workers who work late

Offer learnerships -

EXAMPLE: Training to unemployed people, in exchange for their time worked (make them more marketable in the workplace)