market envirnment

• market environment 


  refers to the immediate external components that directly affect the ability of the business to operate. business have little or no control over the environment.
• customers 


  all people who have money to buy goods and services. businesses should understand their customers need and wants in order to build a good relationship with them
• suppliers 


  suppliers are individuals who provide raw materials, transport, and other services to the business. businesses usually choose suppliers that provide the best quality of goods, correct quantity and deliver goods at the agrred upon times and at the best price.
• intermediaries


  they serve as a link between the micro and market environment. intermediaries make it easier for the consumer to access the product by selling the product closer to the consumers location.
• competitors


  competitors are all businesses that provide similar products or services for more or less the same target market. businesses will be forced to offer quality products or services at the lowest possible prices or else they will lose the customers to their competitors
• community-based organizations


  CBOs are established to assist the communities with socio economic issues, job development, development and being self-sufficient
• NGOs


  npos that operate separately from the government. part of the market environment because they supply consumer goods and services, and they are concerned about the welfare of others
• regulators


  government bodies that make rules and regulation to control the activities of business. these rules and regulations are put so that businesses do not exploit their customers
• unions


  established bodies that protect the interest of workers. they have a right to call for industrial action such as go-slows and strikes if their demands are not met by the government or organizations
• reasons why competition places a challenge on business

  competition keeps prices down and reduces business profitability. a business may close down if it is unable to compete with other businesses.
• opportunities and threats faced by businesses in the external environment


  businesses do not have control over these but they can influence them to a certain extent. management sees competition as an opportunity and a threat.
• opportunities


  any factors of the external environment that will contribute to the success of the business. opportunities will always be available when consumers want to satisfy their needs.
• threats


  factors in the external environment that stand in the way of businesses achieving their goals.