Business Studies Grade 11 Notes Components Of The Micro, Market & Macro Environments
Components of the micro environment
- The business mission and objectives,
- its management structure,
- its resources and its culture are primarily controlled by the enterprise’s management
Components of the market environment
- Customers/Buyers; are the final users of the product/services.
- Suppliers; include factories/providers of goods/services that businesses would obtain/buy from in order to operate their businesses.
- Intermediaries/Agents; who help to promote, sell and distribute products to consumers.
- Competitors; which sell the same/similar products/services may have a greater impact on the market of the business.
- A regulator ; is a person/organisation with official power to control an activity and make sure that it is done in a satisfactory way/make rules by which enterprises in the different industries must abide.
- Strategic allies; refer to two or more businesses that work together to allow them to obtain the expertise they lack from another business.
- Unions; are the employee organisations that aim to improve working conditions of the labour force.
Components of the macro environment
- Physical/ Natural environment
- Economic environment
- Social/Cultural/Demographic environment
- Technological environment
- Environmental/Global environment
- Institutional environment