Grade 10 Business Studies - Business Environments

Micro Environment:

Internal environment; full management control.
Vision: Expectations of achievable aspirations.
Mission: Reason for the business's existence.
Goals: Desired end results.
Objectives: Specific outcomes to achieve goals.
Business Functions:
- General management: Oversees all business operations.
- Production: Manufacturing and service delivery processes.
- Purchasing: Procurement of necessary materials and supplies.
- Marketing: Promoting and selling products/services.
- HR: Managing employees and workplace environment.
- Administration: Handling day-to-day operational tasks.
- Finance: Managing financial resources and planning.
- PR: Maintaining public image and communications.
Resources:
- Natural: Raw materials and land; $Remuneration = rent$
- Human: Labor and skills; $Remuneration = wages$
- Capital/financial: Money, equipment; $Remuneration = interest$
- Entrepreneurial: Innovation and risk-taking; $Remuneration = profit$
Management & Leadership:
- Management: Directs behavior, manages tasks, controls systems; task-oriented.
  - Planning: Strategy and action plans.
  - Leading: Inspiring and motivating.
  - Organizing: Assigning tasks and allocating resources.
  - Control: Monitoring performance and taking corrective action.
- Leadership: Influences behavior, encourages ideas, inspires trust; human-oriented.

Market Environment:

Immediate external environment; management has influence but not control.
Suppliers: Provide goods/services; reliable relationships are crucial.
Consumers/Customers: Satisfying needs with limited resources; influenced by human factors and buying power.
Competitors: Businesses selling similar products/services; drive reasonable prices and innovation.
Intermediaries: Bridge between manufacturer and consumer.
- Marketing (wholesalers, retailers, agents)
- Financial (banks, insurers)
Porter's Five Forces:
- Threat of new entrants: How easy it is for new competitors to enter the market.
- Power of suppliers: The ability of suppliers to drive up prices.
- Power of buyers: The ability of customers to drive down prices.
- Threat of substitutes: The extent to which different products can be used instead.
- Competitive rivalry: The intensity of competition among existing firms.
Distribution:
- Direct Selling: Complete control over distribution.
- Indirect Selling: Using middlemen (wholesalers, agents, retailers).
Channels of Distribution: Direct and Indirect channels.
Regulators: Set rules for business operations (e.g., NERSA, NCR, ICASA).

Macro Environment: