Topic 1: Tourism as a business<br />Module 1: The concept of a business environment<br />
The Environments of business:<br />Macro: (BIG)<br />Uncontrollable<br />Staff of business<br />Macro: (BIG)<br />Micro: (...
Technical Environment:<br />Non-human equipment: <br />Machines<br />Gadgets<br />Cell phones<br />Computers<br />Satellit...
TASK one:<br />What technological changes have there been during the past 10 years?<br />What technological advances can w...
Economic Environment:<br />General economic state of a country.<br />Trends and changes have a direct impact on how well a...
Economic Environment continued:<br />1. Inflation: It’s the increase in price-goods and services. Causes of inflation:<br ...
Model of Inflation:<br />How to control the negative effect of inflation:<br />Increase productivity of workers through sk...
Economic Environment continued:<br />2. Currency value: Money used in a country.<br />Different countries have different c...
Economic Environment continued:<br />3. Exchange rates<br />How does this effect South Africa? <br />
TASK two:<br />What is the currency of the following countries:<br />Australia<br />Sweden<br />Switzerland<br />New Zeala...
TASK two continued:<br />For this task, you need to find out what the exact exchange rate was for the dates mentioned and ...
Social Environment:<br />Also called Socio-cultural as it refers to eh people living in the society. <br />In today’s mode...
Social Environment continued:<br />Religion and culture determine what we eat, wear and do.<br />Social trends are pattern...
Demographic Environment:<br />Study of the human population:<br />Size		square metres<br />Density		how many people/m2<br ...
Demographic Environment continued:<br />Tourism draws customers from all the demographic groups.<br />The most densely pop...
Demographic Environment continued:<br />
TASK three:<br />Find the last census statistics on the internet. <br />What was the second most densely populated area?<b...
Political Environment:<br />Includes:<br />Legislation<br />Regulations – how things should be run<br />Unrest: <br />demo...
Political Environment continued:<br />Local Authorities:<br />Regional Authorities:<br />Municipalities:<br />Govern local...
Security Environment:<br />How does this effect South Africa? <br />Foreign visitors are scared to visit places which are ...
Physical Environment:<br />Natural resources of a country:<br />Water<br />Soil<br />Animals<br />Plants<br />Minerals <br...
Interaction between elements of the market environment and a business:<br />CONSUMERS:<br />COMPETITORS:<br />SUPPLIERS:<b...
The influence of the micro-environment on a business:<br />Crucial to succeed. Driving force of business. Makes decisions....
Environments influence each other:<br />
TASK four:<br />Research and discuss how the different environments influence each other.<br />
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Sot T1 M1

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Sot T1 M1

  1. 1. Topic 1: Tourism as a business<br />Module 1: The concept of a business environment<br />
  2. 2. The Environments of business:<br />Macro: (BIG)<br />Uncontrollable<br />Staff of business<br />Macro: (BIG)<br />Micro: (INTERNAL)<br />Outside world<br />Booking<br />Travel arrangements <br />Macro: (BIG)<br />Impact on Micro<br />
  3. 3. Technical Environment:<br />Non-human equipment: <br />Machines<br />Gadgets<br />Cell phones<br />Computers<br />Satellites<br />Internet:<br />Email<br />Website<br />If a Travel Agency does not have this, it will lose money. <br />Any changes in technology have an impact on micro-environment of any business. <br />Technology has made business easier, faster and GLOBAL. <br />Bookings are done electronically and airline tickets are printed.<br />E-travel: <br />Online bookings: Enables tourist to plan everything on their own.<br />How does this effect South Africa? <br />Why should be keep up with changes in technology? To satisfy our client’s needs in a faster world. It makes us better than our competitors and it makes life easier for us.<br />
  4. 4. TASK one:<br />What technological changes have there been during the past 10 years?<br />What technological advances can we look to in the future?<br />What technological technology can you think of that will change the Tourism Industry in South Africa for the better?<br />Hint: Research from the internet!<br />
  5. 5. Economic Environment:<br />General economic state of a country.<br />Trends and changes have a direct impact on how well a business is doing.<br />Inflation and recession influences prices and how much income tax people pay influences how much they can spend.<br />The wellbeing and spending power of consumers depend on the economic state of the country:<br />In strong economical countries:<br />Consumers are wealthy and they progress. <br />Which countries fall in this category?<br />In weak economical countries:<br />Consumers have less money and stagnate.<br />Which countries fall in this category?<br />South Africa has a large percentage of poor and unemployed people. This leads to economic stagnation, poverty and ultimately – crime.<br />
  6. 6. Economic Environment continued:<br />1. Inflation: It’s the increase in price-goods and services. Causes of inflation:<br />Workers demanding higher salaries<br />Increase in interest rates and bank charges<br />Increase in transport costs due to petrol price increases<br />Increase in price of raw materials (steel, cement, rubber)<br />Measured by comparing prices of products over a period of time. <br />The difference in prices is expressed as a percentage increase.<br />This percentage is the inflation rate for that period.<br />If the inflation percentage rate is 10% for 2010 – this means that we are paying 10% more for goods in 2010 than 2009.<br />
  7. 7. Model of Inflation:<br />How to control the negative effect of inflation:<br />Increase productivity of workers through skills training<br />Mechanisation and electronics can increase productivity<br />Lower interest rates and company taxes.<br />
  8. 8. Economic Environment continued:<br />2. Currency value: Money used in a country.<br />Different countries have different currencies:<br />South Africa RAND<br />USA DOLLAR<br />Germany EURO<br />Britain POUND<br />Botswana PULA<br />Each currency has a monetary value. Some currencies are stronger than others.<br />When travelling to the USA, we need to exchange RANDS for DOLLARS. <br />This is called the exchange rate. It is the difference in strength between 2 or more currencies.<br />Can you name these currencies?<br />
  9. 9. Economic Environment continued:<br />3. Exchange rates<br />How does this effect South Africa? <br />
  10. 10. TASK two:<br />What is the currency of the following countries:<br />Australia<br />Sweden<br />Switzerland<br />New Zealand<br />Mozambique<br />Spain <br />Zimbabwe<br />List (from the strongest to the weakest) currencies in the world. Include their monetary value. <br />
  11. 11. TASK two continued:<br />For this task, you need to find out what the exact exchange rate was for the dates mentioned and attach your research. HINT: Again, use the internet or relevant newspapers.<br />
  12. 12. Social Environment:<br />Also called Socio-cultural as it refers to eh people living in the society. <br />In today’s modern world, people have work ethic. People are self-orientated and this results in self-employment.<br />During the last 20 years, South Africa has changed a lot. <br />We are now the only country in the world that has 11 official languages <br />A national anthem that is sung in 4 languages. <br />We have different religions and one is not put above another.<br />Woman now have careers and form part of decision-making and management. This raises income in the family and holidays are taken more often. <br />This resulted in us becoming modern.<br />
  13. 13. Social Environment continued:<br />Religion and culture determine what we eat, wear and do.<br />Social trends are patterns of behaviour that change over time. <br />People’s values change.<br />Traditional living is still here- Cultural villages (Lesedi), Shebeens in Soweto etc.<br />Lots of people are illiterate (lack of formal schooling) and this results in a high level of unemployment. <br />How does this effect South Africa? <br />
  14. 14. Demographic Environment:<br />Study of the human population:<br />Size square metres<br />Density how many people/m2<br />Location place<br />Gender male or female<br />Race black/white/asian/coloured<br />Occupation jobs people do<br />Census count is when the government counts these factors.<br />At the last cencus there were 51 million people:<br />68% Black<br />18% White<br />11% Coloured<br />3% Indian<br />SA has a growing population. This means that more people are born than people who die.<br />
  15. 15. Demographic Environment continued:<br />Tourism draws customers from all the demographic groups.<br />The most densely populated area in SA is Gauteng. This is also where the most spending power is. <br />Composition (how a group is made up of different people) and Dispersion (how they are spread) of the population has an influence on the labour market and business.<br />Rural areas: <br />Most workers are unskilled <br />Has no qualifications<br />Farm labourers<br />Urban areas:<br />Skilled labour force<br />Educated<br />Variety of jobs<br />How does this effect South Africa? <br />
  16. 16. Demographic Environment continued:<br />
  17. 17. TASK three:<br />Find the last census statistics on the internet. <br />What was the second most densely populated area?<br />How many deaths were recorded?<br />How many babies were born?<br />Do a study of CJC according to the above criteria. You can get information from lecturers, the library and fellow students.<br />
  18. 18. Political Environment:<br />Includes:<br />Legislation<br />Regulations – how things should be run<br />Unrest: <br />demonstrations <br />wars <br />crime<br />Elections have a short-term impact on business as businesses close for voting day.<br />Politicians make promises of better work etc. It’s not to say that this will happen.<br />The Political Environment also includes legislation on Tourism businesses – Many businesses can only be operated if the owner has a business license.<br />
  19. 19. Political Environment continued:<br />Local Authorities:<br />Regional Authorities:<br />Municipalities:<br />Govern local area<br />Power to make and enforce rules: Business hours and where developments are allowed<br />Rates: Water and Electricity<br />Taxes<br />Provincial Government:<br />Each province has a premier:<br />He is under the authority of national government.<br />He sets rules that regulate businesses in the province<br />Decides on the development of the infrastructure in the province:<br />Roads<br />Hospital<br />Low-cost housing<br />How does this effect South Africa? <br />
  20. 20. Security Environment:<br />How does this effect South Africa? <br />Foreign visitors are scared to visit places which are seen as politically unstable and where the crime rate is high<br />A politically unstable country can not maintain business as normal.<br />
  21. 21. Physical Environment:<br />Natural resources of a country:<br />Water<br />Soil<br />Animals<br />Plants<br />Minerals <br />Food is dependant on the physical environment<br />People rely on the physical environment for survival<br />The size of the world’s population and growth of technology has a negative influence:<br />Population to big<br />Global warming<br />Depletion of the ozone layer<br />Tourism needs tourist attractions: natural beauty: mountains, rivers etc.<br />Changes in one environment has a direct effect on another. <br />
  22. 22. Interaction between elements of the market environment and a business:<br />CONSUMERS:<br />COMPETITORS:<br />SUPPLIERS:<br />INTERMEDIARIES:<br />
  23. 23. The influence of the micro-environment on a business:<br />Crucial to succeed. Driving force of business. Makes decisions. New ideas. Makes sure it’s profitable and objectives are met. Appoints staff and motivates them. Deals with problems and provides solutions. Crisis management. <br />Micro-environment: (INTERNAL)<br />Mission: Goal:<br />Profit or Expansion<br />Guides all activities.<br />To reach a goal, set objectives. Objective Criteria:<br />Must be clear<br />Realistic and <br />Achievable<br />Measurable<br />Deadline set<br />Equipment, physical facilities, staff. Staff should have the right training. Human interaction. Lack of - or outdated resources: lowers morale and motivation. Keep it up to date. Remain competitive, keep up to date.<br />
  24. 24. Environments influence each other:<br />
  25. 25. TASK four:<br />Research and discuss how the different environments influence each other.<br />

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