Topic 2 Flashcards
What is The Market environment
- Challenges and influences outside the door of the business.
- This environment can not be controlled by the business, but can be influenced by it.
What does the market consists of
- The Market
- Suppliers
- Intermediaries
- Competitors
- Opportunities and threats
- Other organisation
What is the market
- The market consists of customers who buys goods
- The existance of businesses are determined by the customers who buy their goods
- Because customers have unlimited needs they are forced to make a choice when purchasing goods to satisfy those needs
- The choice they need to make is which supplier they are going to use and at which price they are going to satisfy their needs.
- The determining factor is usually the price at which a business offers goods.
What is Suppliers
- Suppliers supply the goods with which businesses supply goods and services
- Competition between suppliers is steap and therefore supply exceeds demand
- This means that if a business is not satisfied with the service of a supplier, it can easily change suppliers.
- Suppliers need to constantly supply good service and always be available to retain it’s clients.
What is Intermediaries
- It is the “middle man” between businesses and clients
- They are known as agents or reps
- It is their duty to assist businesses to gain clients
- They are remunerated according to goods and services they sell.
What are Competitors
- Businesses in the same area who offer the same goods or services: Spar, Shoprite, Pick and Pay, Checkers.
- All these businesses are competing for the same clientèle.
- Businesses can not control one another, all they can do is strive to supply better goods and services at a better price than their competitors
What is the advantages of competitors
- a greater variety of goods/services
- lower prices
- improved quality of goods and services
- better marketing
In Other organisation in what way can CBO’s influence business operations
-Socio economic influence
In Other organisation in what way can NGO’s influence business operations
-Socio economic influence
In Other organisation in what way can Regulators influence business operations
-Monitors actions and competition
In Other organisation in what way can Strategic allies influence business operations
-Combining of knowledge and skills of two or more businesses
In Other organisation in what way can Trade Unions influence business operations
-Affects labour relations and working environments
What are Opportunities and Threats
- Can have a positive or negative influence on a business.
- Businesses should be positioned to address challenges and to take advantage of opportunities.
