The Business Enviroment

Question 1

LEVELS OF MANAGEMENT ENVIROMENT

Answer 1

• The internal environment ( Micro Environment)

- The External environment

Question 2

INTERNAL MANAGEMENT ENVIRONMENT / MICRO ENVIRONMENT

Answer 2

Forces or conditions or surroundings with in the boundary of the organisation.

Question 3

ECONOMIC DIMENSIONS OF AN ORGANISATION

Answer 3

The overall status of the economic system in which the organisation operates

Question 4

IMPORTANT ECONOMIC FACTORS FOR BUSINESS

Answer 4

• INFLATION
• Interest Rates
• UNEMPLOYMENT

Question 5

TECHNOLOGICAL DIMENSIONS

Answer 5

Represents the methods available for converting resources into products or services.

Question 6

SOCIO-CULTURAL DIMENSIONS

Answer 6

Customs, values and demographic characteristics of the society in which the organisation operates

Question 7

POLITICAL-LEGAL DIMENSION

Answer 7

The general environment that refers to the governments law of business, businesses- government relationship and the overall political and legal situation of a country.

Question 8

INTERNATIONAL DIMENSION

Answer 8

Refers to the degree to which an organisation is involved in or affected by businesses in other countries

Question 9

SWOT ANALYSIS

Answer 9

An acronym for strengths, weaknesses, opportunities and threats, and provides a framework for analysing these elements in the external and internal environment of the organisation

Question 10

THE FOUR STEPS OF CONDUCTING A VIABLE SWOT ANALYSIS

Answer 10

Step 1- Collection and evaluation of key-data

Step 2- Categorise the data into four categories- strengths, weaknesses, opportunities and threats

Step 3 - Development of a SWOT matrix for each business alternative under consideration

Step 4 - Incorporating the SWOT analysis into the decision-making process.

Question 11

LEVELS OF MANAGEMENT ENVIRONMENT

Answer 11

• Micro Environment ( comprises of the organisation it’s self over which management has control )
• Market/Task Environment ( comprises of the environment immediately surrounding the organisation )
• Macro Environment ( refers to the greater environment, existing outside of the market and the task environment)

Question 12

A SYSTEMS APPROACH

Answer 12

Is the view of the organisation as a purposeful and unified system, which is composed of interrelated and interdependent parts and elements

Question 13

TRANSFORMATION PROCESS

Answer 13

Is any activity or groups of activities that takes one or more inputs, transforms and adds value to them and provides outputs for customers or clients

Question 14

COMPONENTS OF THE TRANSFORMATION PROCESS

Answer 14

• Inputs
• Processes
• Ouputs

Question 15

VARIOUS PLAYERS IN THE MARKET ENVIRONMENT

Answer 15

• Competitors
• Customers
• Suppliers
• Regulators
• Strategic Partners/ Intermediaries