Business Environments: Business sectors and their environments

Primary sector

Extraction of raw materials and natural resources.
Mining, fishing, agriculture, forestry and farming

Secondary sector

Changing the raw materials acquired from the primary sector into useful products.
Manufacturing, clothing, food processing, energy generation, building and construction.

Tertiary sector

Renders services to the public and businesses.
Distribution, banking, insurance, tourism, transportation, entertainment, retail and legal services.

Micro environment challenges

•Lack of vision and mission
•Lack of adequate management skills
•Difficult employees
•High rate of absenteeism
•Unions, strikes and go-slows

Market environment challenges

•Competition
•Shortages of supply
•Demographics and psychographics
•Socio-cultural factors

Macro environment challenges

•Change in income levels
•Contemporary legislation
•Labour restrictions
•Political changes
•Interest rate/ Inflation rate
Petrol prices
•Socio-economic issues
•HIV and AIDS
•Change in technology
•Globalisation and International challenges