business environment

• micro:

  uses the SWOT analysis tool

  controls but not fully because of variables such like the different tastes of consumers

  internal
• market:

  less control but can influence

  uses the Porter Six model tool

  able to interact with outside players in businesses
• macro:

  uses the PESTLE analysis tool

  no control of events

  external
• micro, market and macro are all linked but has one factor that affects them which is recession
• micro:

  establish goals, vision, mission, and objectives

  use resources in minimum wastage

  have practices for new and old employees so they know about the latest developments
• market:

  good relationship with consumers

  communicate with unions

  civil relationship between competitors
• macro:

  Political: keep up with political threats and events

  Physical: be aware of physical danger like fire

  Economic: knowing about the state of the economy like inflations

  ethical: being able to protect the rights and dignity of the employees and consumers

  social: issues differ depending on demographics

  technological: needing experts for technological developments

  legal: need of lawyers and ensuring that business is legal

  environmental: business doesn't affect the environment
• management control:

  business links to micro

  decisions are made through internal

  influenced by market

  finds ways to respond to macro
• porter six:

  legal of Rivalry: limits the profit potential and firms' industry and pressures one another.

  availability of substitute products: competitors selling same products

  threats of new entrants: reduced due to certain barriers entered

  power of supplier: relationship between business and supplier

  Power of buyer: supplying goods to agents

  complementary products: add value to original products
• public sector is owned and controlled by the government and has no fixed location.

  private sector is owned and controlled by entrepreneurs and has a fixed location
• primary: extraction of raw materials

  secondary: making raw materials into products

  tertiary: products is sold to profits
• personal service:

  done for individuals

  commercial service:

  don for business
• crisis is an unexpected change and a trend is identified change