Business Environments, Challenges, and Contemporary Legislation

Comprehensive vocabulary flashcards covering the components, degrees of control, operational challenges, industrial actions, and contemporary legislation across the micro, market, and macro business environments.

Micro environment

The internal environment of a business covering day-to-day decisions, including mission, objectives, management structure, resources, and organisational culture, over which business owners and managers have full control.

Market environment

The environment consisting of influences such as customers, suppliers, intermediaries, competitors, regulators, strategic allies, and unions that impact the success of forming and keeping a sustainable business, over which businesses have less control.

Macro environment

The major external and uncontrollable factors—such as economic, physical/natural, socio-cultural, technological, legal/political, and global conditions—that constantly change and influence an organisation's decision-making.

Industrial dispute

A formal action or conflict declared by employees when they have a grievance against their employers regarding issues such as payments or workers' rights, manifesting as strikes, go-slows, picketing, or lockouts.

Strike

A temporary, collective refusal and organised cessation of work by employees aimed at disrupting workplace production to force employers to accept their demands, during which workers cannot be fired if it is protected.

Go-slow

A form of industrial action where employees continue carrying out their work but at a much slower pace than normal to disrupt production, often leading to workers being punished or fired.

High employee turnover

A micro-environmental challenge where employees resign from the business frequently, negatively impacting productivity, operational continuity, and the recruitment process.

Employee absenteeism

The failure of employees to report to work, which directly reduces overall business productivity and impairs profitability.

Psychographics

Market characteristics determined by the attitudes, interests, opinions, and lifestyles of consumers, which directly influence their buying choices and habits.

Socio-cultural factors

The common behaviours, cultural values, and shared attitudes of a particular society that shift over time, requiring businesses to gather information and adapt practices to maintain customers.

Micro lending

The granting of small loans to individuals unable to secure credit from commercial banks; supporting such micro-enterprises represents a macro-environmental risk because many fail and cannot repay debt.

Globalisation

The macro-level exchange of products, services, capital, and labour across borders, exposing local businesses to international competition and practices like product dumping at lower prices.

National Credit Act (NCA)

Legislation established to protect both businesses and consumers from negligent lending practices that result in over-indebtedness for consumers.

Consumer Protection Act (CPA)

Legislation that promotes and advances the social and economic welfare of consumers across South Africa.

Employment Equity Act (EEA)

Legislation aimed at eliminating unfair discrimination in the workplace based on race, colour, age, gender, religion, or disability.

Broad Based Black Economic Empowerment Act (BBBEE)

Legislation designed to ensure that previously disadvantaged individuals fully participate in the South African economy.

Basic Conditions of Employment Act (BCEA)

Legislation dealing with constitutional rights in the workplace by establishing standard rules for working hours, leave, employment contracts, payslips, and general working conditions.

Labour Relations Act (LRA)

Legislation that regulates labour justice and promotes healthy industrial relations between employers and employees within a business.

Skills Development Act (SDA)

Legislation aimed at improving the skills of all people within South Africa as well as those already employed by businesses.

Compensation for Occupational Injuries and Diseases Act (COIDA)

Legislation that provides compensation for disablement or death resulting from injuries or diseases contracted by employees in the course of their employment.