BUSINESS STUDIES Overview

BUSINESS STUDIES

1.1 Reasons why businesses operate

  • Control Over Market:
    • Businesses seek to exercise control over various aspects of the market, influencing supply and demand dynamics.

Micro Environment

  • Definition:
    • The micro environment refers to the immediate environment surrounding a business that directly affects its operations.
  • Key Components:
    • Business owners
    • Suppliers
    • Customers
  • Influence of Business Owners:
    • Business owners play a crucial role in shaping the micro environment as they make strategic decisions regarding suppliers and customer engagement.
    • Decisions impact where products are sourced and where they are sold.

Market Environment

  • Definition:
    • The market environment consists of the various factors that impact the market within which businesses operate.
  • Key Aspects of Market Environment:
    • It encompasses market trends, consumer behavior, and competitive landscape that can influence business strategies.
  • Interaction with Prospective Customers:
    • Businesses utilize their skills to engage with prospective customers. This includes understanding customer needs and preferences to effectively market products.