Business Environments [1] *G10

Question 1

How can one make money in the business world

Answer 1

*finding a job
*creating a business

Question 2

What is the public sector and what do they do

Answer 2

*Businesses owned by the government
*They provide infrastructure in the country

Question 3

How are business in the public sector funded

Answer 3

They are funded by tax collected from working people

Question 4

What is infrastructure

Answer 4

Services provided by the government e.g Roads, hospitals, schools…

Question 5

What’s the private sector

Answer 5

Businesses made by private entrepreneurs

Question 6

What’s the aim of every business

Answer 6

To SATISFY NEEDS AND WANTS OF CUSTOMERS while MAKING PROFIT

Question 7

Name a few ways capital can be provided

Answer 7

*using one’s own money
*borrowing from others

Question 8

How to create a loyal customer base

Answer 8

*Competitive pricing
*Quality products and services

Question 9

What’s the formal sector

Answer 9

Business that pay tax and contribute to the gdp of South Africa
Usually operate in a fixed location

Question 10

What is the Informal sector

Answer 10

*Businesses that don’t pay tax
Aren’t usually found in fixed locations (garage)

Question 11

Name 3 types of businesses in the informal sector

Answer 11

*Production - creating
*Hawking - selling @ robot/parking
*Services - Street corner, extra lessons

Question 12

Why’s the informal sector important to SA economy

Answer 12

*It contributes indirectly to gdp (buying raw material from formal)
*Businesses can grow here than move to formal
*Helps people in poverty

Question 13

GDP

Answer 13

Gross domestic product
Money a country makes in a year

Question 14

Quaternary economic sector

Answer 14

Knowledge based activities aimed at future development
education, financial planning

Question 15

Quinary economic sector

Answer 15

Decision making at the highest levels of society
Has big impacts on social and economic conditions

Question 16

Explain the concept of a business

Answer 16

The process that adds value to an economic society
This creates employment and helps the standard of living

Question 17

Characteristics of a strong business

Answer 17

*Strong leadership
*Has competitive advantage
*Uses resources in a sustainable manner

Question 18

Important objectives of a business
(6)

Answer 18

Survival
Profitability + Growth
Productivity + Efficiency
Creating competitive advantage
Employee development
Social responsibility

Question 19

Name the 3 business environments

Answer 19

Micro (internal)
Market (external)
Macro (external)

Question 20

GDP definition

Answer 20

Gross Domestic Product is the total value of all finished goods and services in a country in a year

Question 21

What is the market environment

Answer 21

External elements the business has no control over

Question 22

Name the elements of the market environment (7)

Answer 22

Suppliers
Consumers
Competitors
Strategic alliances
Intermediaries
NGOs
Industry Regulators

Question 23

Explain suppliers (market environment)

Answer 23

-businesses are dependent on suppliers for resources so they can manufacture goods and sell it to consumers
—right: time place quantity price and quality (5)

Question 24

Explain consumers (market environment)

Answer 24

-people who buy goods/services
- way of indicating trends

Question 25

Explain competitors (market environment)

Answer 25

-companies that sell similar/substitute goods/services to the same target market (threats) -business must ensure it maintains competitive advantage to maintain market share

Question 26

Factors used to gain competitive advantage (6)

Answer 26

-Quality -Price -Use of tech -Service levels -Location -Superior use of resources

Question 27

What's strategic alliance (market environment)

Answer 27

When 2 or more businesses decide to join forces to take advantage of an opportunity

Question 28

Explain intermediaries

Answer 28

Middle men who form the link between the consumers and the business in the distribution channel

Question 29

Explain NGOs (market environment)

Answer 29

[Non-government organisations] Non profit businesses that focus on uplifting the community and protecting the environment -they demand that the business acts in an ethical manner

Question 30

Industry regulations (market environment)

Answer 30

Provide guidelines to businesses on how to operate in an ethical manner

Question 31

Porters six factors

Answer 31

Power of 1 consumers 2 substitute 3 potential new competitors 4 suppliers 5 complementary products 6 competitors

Question 32

Macro environment

Answer 32

External environment Elements business that has no control over

Question 33

Name the pestle

Answer 33

Factors Political Economic Social Tech Legal Environmental

Question 34

How political factors affect a business

Answer 34

Affect possibility of conducting Business example War

Question 35

How economic factors affect a business

Answer 35

They affect selling prices tax, inflation, exchange, rate...

Question 36

How social factors affect a business

Answer 36

The impact standard of living unemployment, crime, disease...

Question 37

How technological factors affect a business

Answer 37

Good:increase productivity Bad:outdated or expensive

Question 38

How legal factors affect the business

Answer 38

Laws can create restrictions

Question 39

How environmental factors affect the business

Answer 39

They affect the ability to create or obtain goods Pollution natural disaster Oil spills dot dot dot bitch

Question 40

What is the micro environment

Answer 40

Internal factors Can be controlled by the business

Question 41

The micro environment consists of...

Answer 41

Business functions resources business policy business culture business structure

Question 42

List the business functions (8)

Answer 42

General management purchasing human capital production finance marketing public relations administration

Question 43

Explain general management

Answer 43

Making a plan that improves the overall performance and profitablity of a business

Question 44

Explain purchasing

Answer 44

Buying goods and services Needed by the business

Question 45

Explain human capital

Answer 45

The overall man power of the business They hire and fire

Question 46

Explain production

Answer 46

Making a product to satisfy target market

Question 47

Explain finance

Answer 47

Finding money

Question 48

Explain marketing

Answer 48

Checking what people want Communicating with the target market

Question 49

Explain public relations

Answer 49

Ensuring the business has a positive image

Question 50

Explain administration

Answer 50

Putting information in organised format

Question 51

What is risk management

Answer 51

identifying risks

Question 52

What is management and information systems

Answer 52

Having needed technology

Question 53

Business resources are

Answer 53

Resources that are needed by the business too function correctly Think factors of production

Question 54

Business policy definition

Answer 54

Give's business direction to business functions What to do basically

Question 55

Business culture definition

Answer 55

Beliefs and values of the business These values direct the attitude of the internal stakeholders (employees, managers)

Question 56

What is organisational structure

Answer 56

(Personality of the business) It ensures all business components went together to achieve goals Ensures internal stakeholders understand each role in the business

Question 57

Explain SWOT analysis

Answer 57

i] Strengths - capabilities of business i] Weaknesses - factors that limit success of business e] Opportunities - outside factors that benefits the business e] Threats - outside factors that can worsen the business

Question 58

Name and explain the different business environment characteristics

Answer 58

-complex- ever changing -multifaceted- affect shareholder groups (positive/negative) -dynamic- flexible, creative and innovative