Chapter 1 – Business Environments (Grade 10 Business Studies)

A set of Q&A flashcards covering PESTLE and SWOT analyses, key macro-environment factors, and characteristics of business environments.

What are the three levels of the business environment?

Micro, Market, and Macro environments.

Which analytical tool is used specifically to study the macro environment?

PESTLE analysis.

Which analytical tool examines internal and external factors such as strengths and threats?

SWOT analysis.

In SWOT analysis, which two elements are internal to the business?

Strengths and Weaknesses.

In SWOT analysis, which two elements are external to the business?

Opportunities and Threats.

In PESTLE, what does the letter “P” represent?

Political factors.

In PESTLE, what does the first “E” (after P) stand for?

Economic factors.

In PESTLE, what does the “S” represent?

Social factors.

In PESTLE, what does the “T” stand for?

Technological factors.

In PESTLE, what does the “L” represent?

Legal factors.

In PESTLE, what does the final “E” stand for?

Environmental factors.

Give one example of a political factor that can influence businesses.

Government sanctions or changes in trade agreements (e.g., UN sanctions on Zimbabwe).

Why can rapid technological advancement be both a threat and an opportunity for a firm?

Threat: costly technology becomes outdated; Opportunity: new tech can create competitive advantage and improve efficiency.

List two economic variables that can affect a firm’s pricing decisions.

Inflation rates and exchange rates (also interest rates or taxes).

Name two social issues that can influence a community’s disposable income levels.

Poverty and unemployment (also crime or HIV/AIDS prevalence).

Which South African law sets minimum safety standards in the workplace?

The Occupational Health and Safety Act.

Why are environmental factors such as natural disasters important for business planning?

They can disrupt access to raw materials and hamper product distribution.

What does it mean when we say the business environment is “complex”?

It contains many ever-changing, competitive, and hostile factors and stakeholders.

Which characteristic of business environments refers to the need to satisfy multiple stakeholder groups with conflicting interests?

Multi-faceted.

Which characteristic of business environments highlights constant change and the need for flexibility?

Dynamic.

Why should firms create contingency (Plan B) strategies?

To remain flexible and prepared when original plans fail in a dynamic environment.

Provide one possible internal strength a business might have.

Strong brand name or exclusive intellectual property.

Provide one possible internal weakness a business might face.

Poor marketing capability or lack of skilled staff.

Give one example of an external opportunity for a business.

A favourable market trend that can increase demand or customer loyalty.

Give one example of an external threat to a business.

A new competitor or a regulatory change that may harm operations.

How can intrapreneurship help a company cope with a dynamic environment?

By fostering employee creativity and innovation to develop flexible, adaptive strategies.