TERM 1 - Topic 1.3 - Adapting to challenges of the business environments Flashcards
Explain ACQUISITION
Purchase / acquire by a business (purchasing a small part of example a transport company. This is to reduce the cost of transport)
Explain ALLIANCE
Agreement in which 2 or more businesses pool resources to benefit all
(example: businesses agree to to stock one another’s products)
Explain TAKEOVERS
Business is entirely taken over by another
Explain MERGERS
2 businesses JOIN to form a new business
Explain LOBBYING
Attempts to influence business and government leaders to create laws that will benefit them
(example: get tax rebates; don’t pay tax on fresh food)
Explain NETWORKING
Business relationships to create business opportunities / share information
(example: share business cards and contact one another with offers)
Explain POWER RELATIONSHIP
2 X Powerful parties share a relationship for their OWN gain
BEE (Black Economic Empowerment) - what is that?
Law passed by government to
= equalise WORK opportunities
= equalise BUSINESS ownership
How does a business adapt to challenges in the macro environment. (9 points - mention a few)
1) Information Management (easy access to info)
2) Strategic Responses (preplanned response for
any eventuality)
3) Mergers (to have a larger share of the market)
4) Takeovers (choose a business that will benefit
your business, bring skills, market share, etc.)
5) Acquisitions (not an entire takeover, you only
buy the part you need)
6) Alliances (pool resources)
7) Organisation design and flexbility (adaps to
changes easily)
8) Direct influence on environment (know the
impact of pollution and use of resources and
adapt when necessary)
9) Social responsibility (know what challenges
there are in the community)
Hedging against inflation
#Influencing supervisory bodies
#Bargaining sessions between management &
unions
Provide ONE term for the abovementioned
Lobbying
Finding new customers
#Taking part in social events
#Using social media
Provide ONE term for the abovementioned
Networking
Strategic alliance agreements
#Persuasion from large investors
#Influence of company representatives
Provide ONE term for the abovementioned
Power relationships
Provide ONE term for the following:
A form of acquisition in which one business buys another business entirely
Takeover
Provide ONE term for the following:
When 2 businesses join together to form a new business
Merger
Provide ONE term for the following:
When a business sends a representative to government or a regulating body to get a law passed or changed
Lobbying
TIP: To get any law change; law starts with “L” = the same as “L” for Lobbying :-)
Provide ONE term for the following:
When individuals exchange info, often socially, to achieve some benefit and promote themselves
Networking
Is the following TRUE or FALSE. If it is false, provide the correct statement
The South African Chamber of Business (SACOB) is a group that lobbies on behalf of businesses in South Africa
True :)
Is the following TRUE or FALSE. If it is false, provide the correct statement
When unions and employers have bargaining sessions as part of wage negotiations, we can see this as part of networking.
False - it is part of lobbying
Is the following TRUE or FALSE. If it is false, provide the correct statement
Appointing an influential person in the industry to the board of your business is called using a power relationship
True
Is the following TRUE or FALSE. If it is false, provide the correct statement
Power relationships can be used by a business to get a special discount, or quality for a grant, or get special treatment where it counts.
True
Is the following TRUE or FALSE. If it is false, provide the correct statement
By law, all businesses have to comply with BEE
False, only businesses with an annual turnover of more than R5 million have to comply
