BSTD Grade 10 Week 6 Macro Environment

GUATENG BUSINESS STUDIES GRADE 10 NOTES MACRO ENVIRONMENT CHAPTER 4
BUSINESS STUDIES
GRADE 10
TERM ONE
CHAPTER FOUR
WEEK 6
MACRO ENVIRONMENT
2021
1
TABLE OF CONTENTS
TOPICS PAGES
Exam guideline for the macro-environment 3
Meaning of the macro environment 4
Features of the macro environment 4
Reasons why the macro environment can be a challenge to 4
businesses
Description of the features of the macro environment and challenges 5
This chapter consists of 6 pages
2
CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT

PURPOSES
 Define/Elaborate on the meaning of the macro-environment.
 Briefly explain the reasons why the macro environment can be a challenge to
businesses.
 Define/Give practical examples of each component/feature of the macro environment
 Briefly explain the reason why each component/feature poses a challenge to
businesses.
 Identify the components of the macro environment from given
scenarios/statements/case studies/cartoons/pictures.
 Conduct research on the impact of the macro environment on businesses
(Enrichment).
1 Macro environment/External environment
Meaning of the macro environment/External environment

 The micro-environment includes all the forces/events and circumstances that affects
the business and its market environment.
 This is the environment that is located outside the business.
 The business cannot control this environment but it can influence it.
 It is also known as the external environment
 The macro environment is always developing and changing
 Businesses have no control over this environment as it poses challenges to
businesses.
2 Features the macro environment

 Physical/Natural environment
 Economic environment
 Social, cultural and demographic environment
 Technological environment
 Legal environment and political environment
 International /Global environment
 Institutional environment
3 Reasons why the macro environment can be a challenge to businesses

 The macro environment is always developing and changing.
 Management in businesses have no control over the macro environment.
3
4 Description of the features of the macro-environment and challenges posed by each feature
Features Description Challenges to businesses
Physical/Natural  These are forces that are present in the natural  The physical location of a business has a large effect on
environment environment such as the natural the success of the business.
resources/pollution/ increased cost of energy/  Manufacturing businesses dump their waste materials that
infrastructure. impact negatively on the physical environment.
 Businesses that use raw material to transform  The awareness of pollution and environmental damage
them into useful products such as clothing and provide new challenges for businesses.
electricity need nature for their survival.  Some natural resources are scarce and expensive e.g.
sources of energy are expensive.
 The scarcity of natural resources has a negative impact on
the production costs and results in high prices of goods
and services.
Economic  The economic environment includes all those  Economic changes affect business, if the rand becomes
/Environment factors that affect financial matters e.g. interest weaker, businesses are more likely to be able to export
rates/inflation/business cycle etc. product successfully.
 Interest rates are the charges people and  If interest rates increase, it means the business will pay
businesses pay for the cost of borrowing money. more monthly instalments to the bank for the loan taken.
 A high inflation will mean that consumers will have less
money to spend on goods/services.
 Inflation refers to the general increase in the prices
of goods and services in the economy.  If taxation goes up, businesses will be charged more on
their profit, and people will have less money to spend on
buying goods and services.
 If exchange rates influence trade international trade as it
becomes expensive to buy raw materials and machinery
from overseas.
Social, cultural  The social environment involves people.  Social issues such as poverty, HIV/Aids, unemployment,
and demographic  The cultural and social environment can be defined low levels of literacy and crime can affect consumers’
environment as the sum total of the languages /values/cultural spending, the productivity of the employees and the
norms/preferences/religions and beliefs. profitability of the business.
 The demographic environment refers to the  Social and cultural diversity have the potential to create
4
composition of a country’s inhabitants e.g. their conflict in the workplace.

age/residential areas/skill level/income level etc.  Employees from different cultural backgrounds may have
different cultural norms/preferences/beliefs etc.
 South Africa has a large number of people who are poorly
educated and unskilled. This means that businesses may
have few customers.
Technological  These factors include the development of new  Many businesses may not be able to succeed without
environment technological products and services. internet connectivity.
 The rise of information technology such computers  The availability of online shopping decreased the demand
and communication technology allows for a rapid for some products from conventional street stores and
flow of large amounts of digital information/ ICT. service businesses.
 IT systems can be hacked by
fraudsters.
Legal  The legal component of the macro- environment  An unstable government and poor relationship between
environment and consists of the legislation that has been passed. the government and the business creates a negative
political  The government plays a large role in the political environment.
environment development of policies and legal frameworks.  Some political decisions such as government levies, tax,
 The legal system through the courts, has power to interest rates and inflation influence businesses.
oversee: employment, tax, trade mark rights,  Changes in government salaries can have an impact on
patent rights, intellectual property. the spending patterns of consumers.
 Government employs a large number of  Businesses are affected by legislation such as the
consumers. National Credit Act, Consumer Protection Act,
Employment Equity Act, Basic Conditions of Employment
Act etc.
International  Globalisation refers to an increase in trade and  Globalisation result in increased competition from
/Global investment between countries. businesses around the world which sell their goods to
environment South Africa.
 Businesses are expected to understand the cultures of
foreign people.
Institutional  This refers to the three spheres of government e.g.  The provincial government has an indirect impact on
environment local, provincial and national government. businesses through its role in providing services such as
health, housing and education.
5

BSTD Grade 10 Week 6 Macro Environment

Uploaded by

Copyright:

Available Formats

BSTD Grade 10 Week 6 Macro Environment

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BSTD Grade 10 Week 6 Macro Environment

Uploaded by

Copyright:

Available Formats

GUATENG BUSINESS STUDIES GRADE 10 NOTES MACRO ENVIRONMENT CHAPTER 4

This chapter consists of 6 pages

CONTENT DETAILS FOR TEACHING, LEARNING AND ASSESSMENT

1 Macro environment/External environment

Meaning of the macro environment/External environment

2 Features the macro environment

3 Reasons why the macro environment can be a challenge to businesses

composition of a country’s inhabitants e.g. their conflict in the workplace.

You might also like