This document discusses the business environment and its internal and external elements. The internal micro environment includes an organization's vision/mission, culture, structure, management/employees, suppliers, customers, stakeholders, competitors, and intermediaries. The external macro environment consists of natural, technological, social, economic, international, legal/political factors. Continuous monitoring of changes in the internal and external environment is important for management to plan, organize, lead, and measure performance as the environment and opportunities/threats evolve.

1. UNIT 1
A CHANGING
BUSINESS ENVIROMENT

2. Learning Outcomes
Before they begin the lesson learners should be able to:
 Define the business environment;
 Discuss the complexity of a changing business environment;
 Identify and explain the elements of the micro (internal) business environment;
 Explain the SWOT analysis;
 Discuss the meaning of the importance of sustainability
In the business environment.
 Explain the importance of managing change in the
Business environment;

3. The business environment compromises everything that can affect the
establishment, growth and survival of an organisation positively or
negatively and therefore influence the achievement of the objectives of
an organisation.
MIRCO
ENVIROMERNT
MARKET
ENVIOMENT
MACRO
ENVIROMENT

4. THE INTERNAL (MICRO) BUSINESS ENVIROMENT
Micro environment is the organisation as a business entity.
Vision, mission,
goals and
objectives
Organisational
culture
Micro
environment
Change and
innovation
Organisational
structure
Management
and employees

5. Micro environment
Vision, mission and
objectives
Organisational
culture
Change and
innovation
Organisational
structure
Management &
employees
Vision and mission
describes what the
organisation wants
to achieve the
product and
services
is a unique set of
characteristics, as
sumptions, norms
and beliefs
presented by
employees and
managers
A innovative
organisational
culture would be
conducive to the
organisation
exposed to
change.
A well developed
organisational
structure allows
an organisational
entity to realise its
vision, mission, stra
tegy and
objectives
Management
and employees
are required to
develop, formul
ate, implement
the goals and
objectives

6. The micro environment includes all the forces and elements also known as role players, that interact
with the origination on a more direct basis.
Suppliers
Customers
Are those organisation that provide
raw materials to another organisations
that use in manufacturing of other
products, or provide completes
product to another organisation for
retailing purposes.
Customers are existing and
potential buyers and users of
products and services, offered by
the organisation which will
optimally satisfy their customer
Stake holders
Competition
Can be described as
individuals or groups that have
some share or direct
relationship with an
organisation
Competition can predominantly be
described as other organisation in the
same industry, providing similar
products and services o the same
group of customer
Intermediaries
Organisations that manufacture
products sometimes distribute this
products in large quantities to
other organisations known as
retailers and wholesalers

7. THE MACRO(EXTERNAL) ENVIROEMNT
This environment includes all the element which influence all organisations, although
organisations have limited influence on this elements.
Natural
environment
Technological
environment
Social
environment
MACRO
Economic
environment
International
environment
Legal-political
environment

8. technological element
The natural environments consist of elements that make up the resource base.
These includes

9. Social elements
the socio cultural environment reflects on social, community and
cultural issues within a country or region
 Education
 Culture
 Language
 Income
• Population
 Health
 infrastructure

10. Economic elements
the economic element includes all the economic factors that impact
on and influence the economic status

11. International and global elements
Economy and
new
technology
Economic
performance of
a country
Organisational
efficiency
Government
efficiency of a
country
Foreign
investemnt
Infrastructure of
a country

12.  /
Continuous monitoring of the external and external business environment is
required. This activity is the responsibility of management. Managers can only
plan for the future, organise its organisation accordingly, provide leadership
with a change taking place and controlled by measuring their performance.
Their performance during this time, if there are informed of the organisational
internal strength and weaknesses and external opportunities and threats.

13.  Drotskie A.; Kara M. & van de Linde W. (2010). Business Management: a
focused introduction. Cape Town: Future Vision Business Consultants(
FVBC).