Business studies G11 Flashcards
(19 cards)
The challanges of the micro environment
- Difficult employees
- Lack of vision and mission
- lack of adequate management skills
- The impact of unions
- strikes and go- slows
- Skils shortages amoung employees
- High employees turnover
- Employees absenteeism
Challanges and Recommendation of Difficult Employees
Challaneges
- Those who do not support the vision and goals of the business
- Thier actions may lead to conflict in the workplace
Recommendations
- revisit the recruitment & induction
- Develop strategies to deal with different
Recommendation and Challenges of Lack of vision and mission
Challenges
- will hamper meaningful guidance and leadership to employees
Recommendations - Must be understood and communicated this to all employees
Challenges and Recommendations for Lack of adequate management skills
Challenges
- The business will not acheive its objectives
Recommendation
- Managers must attend management and leaderships causes
Impact of unions and strikes
Impact of unions
* Businesses may not be able to meet the demands of the trade unions
Strikes and go-slows
* businesses cannot meet its expected units of production
Skills shortages amoung employees
Skills shortages amoung employees
* Some businesses end up employing workers who are not qualified to do the job
Challenges of the market environment
- Competition
- shortage of supply
- changes in consumer tastes and habits
- demographic and Psychograhics
- Socio-cultural factors
Competition
Challenges
* it is difficult to compete with a business selling the same product and services in certain countries
Recommendation
* offering more personal services by being responsive to the customer’s needs
Shortage of supply
Challenges
* may lose customers as they may buy from other businesses
Recommendations
* select suppliers whch are reputable and reliable
Changes in consumer tastes and habits
challenges
- A business is dependent on its customers to the purchase their product
Recommendations - Doing research and finding ways to influence consumer demand
Socio-cultural factors
Challenges
* describes the common behaviour and atitudes of particular society
Recommendations
* The entrepreneurs need to remain informed of socio-cultural changes
Challenges of the Macro environment
- Change in income levels
- political changes
- Contemporary legislation
- Labour restrctions
- Micro lending
- Globalisation
- Social values and demographics
- Socio economic issues
Strategies that businesses can use to adapt to challenges
- Integration - taking over or merging with other businesses to increase growth potential
- intensive -increasing sales and market share by using exting products
- Diversification- A business adds related or unrelated products to its current product line
- Defensive - Last resort after business have tried everything
what is networking
A coordinated activity where people who have a similar objective meet and exchange information and ideas
Benefits of Networking
- Attract new customers reulting in increased market share and profitability
- plays a role in marketing and expansion of a business
- Assits businesses in making future business decisions
What is lobbying
The process of trying to influence legislation decision making
Reaseons why businesses lobby
- To change laws like , child labour laws ,clean air and water laws
- Advances business men’s cause and builds public trust
Types of lobbying
- hedging against inflation
- Bargaining sessions between management and unions
- influencing supervisory body
Meaning of power relations
A measurement of a busniess’s ability to control its environment and the bahaviour of other businesses
