1) Sectors and environments

• Primary sector

  • The primary sector focuses on activities related to the extraction/ cultivation of natural resources.
  • The primary sector is dependent on nature because it uses the earth's natural resources, land, minerals and vegetation.
• Secondary sector

  • The secondary sector focuses on activities related to the production/ manufacturing of products.
  • It transforms/ converts raw materials into semi-finished products.
• Tertiary sector

  • The tertiary sector focuses on activities related to providing final products and services to consumers.
  • Plays unique role because it allows raw materials that were collected and transformed available to consumers.
• Micro environment

  • Refers to the business itself, which is characterised by all the processes within the business
  • Refers to the internal environment in which the business operates.
  • Full control
• Market environment

  • Refers to the immediate external environment.
  • Refers to factors immediately outside the business.
  • Limited control
• Macro environment

  • Refers to the external environment that is directly outside the market environment.
  • Refers to the uncontrollable factors outside the business.
  • No control.
• Micro environment

  Mission and vision

  • Lack of mission/ vision exists within the business.
  • Mission/ vision of business is outdated.
• Micro environment

  Goals and objectives

  • Business does not achieve its objectives because lack of planning.
  • Objectives of the business are unrealistic and unattainable.
• Micro environment

  Organisational resources

  • The Organisational resources (financial, human, physical resources) are not used optimally.
  • Limited resources available to achieve goals.
• Micro environment

  Organisational culture

  • Organisational culture absent.
  • Lack of integrity business practices.
• Micro environment

  Business functions

  • Incorrect application of efficient business practices within the general management/ marketing/ finance/ public relations/ purchasing/ production/ administration/ human resources business function.
  • Poor strategic direction within the general management/ marketing/ finance/ public relations/ purchasing/ production/ administration/ human resources business function.
• Market environment

  Customers

  • Changes in the demand of customers.
  • Customers buying cheaper alternatives.
• Market environment

  Suppliers

  • Suppliers increasing the prices of inputs.
  • Shortage of supply of critical inputs.
• Market environment

  Competitors

  • Competitors reducing prices of their products/ services thus creating price wars.
  • Market share of competitors is increasing.
• Market environment

  Intermediaries

  • Intermediaries increasing the prices of their products/ services.
  • Intermediaries unavailable to provide required services to business.
• Market environment

  Civil society

  • Civil society placing demands on business to change certain business practices.
  • Civil society may disrupt how business activities may be conducted.
• Market environment

  Trade unions

  • May place unreasonable pressure on business to increase wages/ employee benefits.
  • Trade unions may disrupt business activities.
• Macro environment

  Political

  • Government increases corporate tax rate for businesses.
  • High levels of political instability/ corruption within a country.
• Macro environment

  Economic

  • Decrease in the availability of credit in the country.
  • Decline in foreign direct investment growth.
• Macro environment

  Social

  • Decline in the income of consumers because of increases in unemployment rate.
  • Increase in the immigration rates of skilled South Africans to foreign countries.
• Macro environment

  Technological

  • New technology becomes unaffordable for businesses.
  • Businesses do not improve the production process with updated technology.
• Macro environment

  Legal

  • Current and new legislation that affect the operations of businesses.
  • Increased costs associated with the compliance of the various legislation.
• Macro environment

  Environmental

  • Environmental sustainability places business under pressure to change their current practices.
  • Environmental degradation practices cause a reduction in the availability of natural resources.