CHAPTER 3 Flashcards
(31 cards)
What is the definition of Organisational Environment
All the factors and variables which influence the establishment, growth and continued
existence of the business positively and/or negatively, thereby promoting or hindering the achievement of the business’s objectives
Different environmental occurrences that influenced or can influence an organisation operating in South Africa
– Employees’ strike in different industries.
– Consumers’ drive towards a healthier lifestyle.
– High crime rates.
– Increased competition due to online shopping avenues. – High mobile penetration rates.
– Unreliable suppliers.
– ISIS war crimes.
– Covid-19 virus outbreaks.
who are the stakeholders
Stakeholders include all the different people who are affected by an organisation’s policies and decisions
What variables form part of the micro-environment?
– Vision, mission and goals
– Business functions
– Business resources
what are the 8 business functions?
general management ,purchasing function, operations function , marketing function , financial function , human resource , public relations , administrative function
Tangible resources
Raw materials (wood, water, and minerals), capital, machinery, and property.
Intangible resources
Patents, trademarks, brand names, staff morale
and, overall staff experience
What is link/buffer between the business and the macro-environment?
The market or task environment
Variables in the market environment
Consumers , competitors , suppliers , intermediaries
Consumer market
Purchase products and services for own consumption or use.
Industrial market
Purchase goods and/or services for use in their own production of other goods and services
Resale market
Parties that buy products and sell them, without any further processing, in order to make a profit
Institutional market
Large-scale users (schools, hospitals, nursing homes, government agencies, and non-profit organisations)
International market
Foreign buyers, including customers, manufacturers, resellers, and governments
types of competition
need competition , generic competition , product coompetition , brand competition
Need competition
Different kinds of needs for which the consumer is willing to pay.
Generic competition
Alternative product lines that are able to satisfy the same customer need
Product competition
Different types of
products within a particular product category.
Also referred to as product-type / product form competition
Brand competition
Other brands of the SAME type of product. Classified as substitutes, because they are very similar
Macro-environmental factors
Political-legal Technological
Natural/Physical
Economic Socio-cultural
International
Demographic factors
Demographic factors “paint a picture” of who the market is in terms of age, race, ethnicity and location. The following factors can be investigated:
– Population growth
– Population age-gender composition – LSM and SEM trends
– Urbanisation
Socio-cultural factors
Socio-cultural factors revolve around people’s social behaviour, which is constantly transformed by people’s cultures, values, lifestyles, and expectations. – Changing family structures – Changing role of women – Changing lifestyles – Need for personalisation – Consumerism
Economic factors
Economic factors include all aspects which either directly or indirectly impact the disposable income, as well as purchasing behaviour, of organisations and consumers. These aspects include: – Interest rates – Inflation – Business cycle • Prosperity • Recession/depression • Recovery – Unemployment
Political/legal factors
Political/legal factors include the regulations, legislations and court decisions that govern and regulate business and management practices
