Topic 6: Business Sectors & enviroments

Question 1

Different business sectors?

Answer 1

Primary sector
- Deals with the extraction of raw materials and natural resources

Secondary sector
- Deals with the processing of raw materials into finished goods

Tertiary sector
- Renders services to the public and other businesses

Question 2

Different business enviroments?

Answer 2

Micro
-Full control

Market
- Limited control

Macro
- No control

Question 3

Possible challenges of Micro enviroment?

Answer 3

• Absent/difficult employees
• Lack of vision and mission
• Poor management skills
• Limited resources availible
• Lack of proffesional business practice

Question 4

Possible challenges of Market enviroment?

Answer 4

• Coustomers buying cheaper alternative procucts
• Suppliers increase the cost of raw materials
• Competitors reducing the prices of their products
• Intermidiaries increase the prices of their products
• Trade unions disrupting business operations through strikes

Question 5

Possible challenges of Macro enviroment?

Answer 5

• Increased tax reduces profit
• Intrest rates limit availibility of credit
• Decrease of consumer income due to unemployment
• New tech is unaffordable
• Compliance with legislation is time consuming and expensive