Introduction

2. Lieza van der Vyver ADC Preparation Class procedure Introduction

3. After class Student Support Office @ student reception By appointment By e-mail: lvdvyver@varsitycollege.co.za Phone: (012) 348-2551 Website!!! Communication www.liezavandervyver.weebly.com

4. Let’s divide into groups ... • Rewards for the winners! • Rewards for the best/most meaningful blog.

5. Learning Unit 1:The Business Environment

6. Outcomes • Internal vs. External Environments • Internal Environment variables • External Environment variables • Strategies to manage uncertainties in environmental challenges

7. BUSINESS ENVIRONMENT Factors affect  Company ops Government Technological Development Competitors Stakeholders Regulations Social Economic Factors Industry Trends Suppliers Customers

8. Internal Business Environment Business itself Micro/Decision making Environment Mission, Vision, Objective Organisational Functions Factors of Production Management tasks and strategy

9. Answer 3 questions: • Purpose of the organization • Opportunities and needs • Business of the organization • How to address needs • Values of the organization • Principles and beliefs

10. To be the world's best quick service restaurant experience. Being the best means providing outstanding quality, service, cleanliness, and value, so that we make every customer in every restaurant smile."

11. We, as passionate committed retailers, understand and lead our customers through excellence and a deep knowledge of our products and services and the world we live in. We live the Woolworths difference through our values: quality and style – deliver the bestvalue – a simple and fair deal service – think customerinnovation – discover the differenceintegrity – do what you say you will doenergy – be passionate and deliver sustainability– build for a better future

12. The BMW Group is the world's leading provider of premium products and premium services for individual mobility.

13. Objectives of a Business • Clearly defined target. • Plans to achieve the target. • Motivate the employees. • Measure of progress.

14. Objectives of a Business • Criteria for effective business objectives: • S – Specific: Objectives are aimed at what the business does e.g. a hotel might have an objective of filling 60% of its beds a night during October, an objective specific to that business. • M – Measurable: the business can put a value to the objective, e.g. R10,000 in sales in the next half year of trading. • A – Agreed:by all those concerned in trying to achieve the objective. • R – Realistic: the objective should be challenging, but it should also be able to be achieved by the resources available. • T- Time specific: they have a time limit of when the objective should be achieved, e.g. by the end of the year.

16. Naturally forming • Valuable in natural form • To produce G&S • Money and assets • Long lifespan • Used repeatedly • Capacity and willingness • Venture • Seeking profit • Coordinate other 3 • Employees • Wages/salaries • Physical and mental tasks

17. Cannot replace • Used up • Replace • Replenish • Recycled • Permanent • Persistent • Continuous

18. Natural resources Renewable Resources

19. Natural resources Non-RenewableResources

20. Natural resources Perpetual Resources

21. Capital

22. Labour

23. Economic principle: Unlimited needs and limited resources

24. Management tasks and Strategy • Clear requirements and goals • Right tasks in the right order and priority • Time effectively and meet deadlines • Delegate tasks • Effective ways • Track tasks • Report task and goals achieved.

25. External Business Environment External Forces Task or Market Environment General or Macro Environment

26. Consist of .... Entities Factors Conditions Events Influence activities and choices. Determine business opportunities and risks.

27. External Environment Market or Task Environment General or Macro Environment

28. How do environments influence each other? Micro Market Macro

29. Components of Market Environment Intermediaries Consumers Suppliers Competition Labour Market

30. Consumer • End user of G&S • Lose consumer  Lose income • High quality products  Satisfied consumer • Market shares  Target niche market • Niche market: Market segmentation where a business provides a product or service to meet a need which is not met by any other business Consumer behaviour crucial!

31. Consumer behaviour • Study of individuals, groups or organizations • Process to select, secure, use and dispose • Products • Services • Experiences • Ideas • Satisfy the needs • Study impact of the process on the consumer

32. Consumer behaviour driven by: • Family buying decision • Role of status • Age and life cycle stage • Occupation • Economic status • Life style • Personality and self-concepts • Motivation • Perception • Learning • Belief • Attitude

33. Competition • 2 or more parties • Acting independently • Secure business of 3rd party • Offer most favourable terms • Compete for market share

34. Competition • Gain knowledge of competition: • Advertising • Press reports • Exhibitions and trade fairs • Questionnaires • Search web for similar G&S • Reports from customer • Flyers and marketing literature

35. Suppliers • External entity • Supply goods or service • Provides necessary ..... to be productive: • Material • Capital • Equipment • Workspace

36. Intermediaries • Third party • Intermediation services • Between trading parties • Role: Close the gap – Producer  Consumer • Examples: • Wholesaler • Retailer • Agents • Representative • Spaza shops

37. Labour market • Suitable people for employment selection • Suitably qualified? • Attract and retain • Obtain and train = Expensive • Diversity, cultural differences = Manageable? Proper management strategy Diversity management

38. Macro Environment Learning Unit 4!

39. Environmental Uncertainty Little or no Info on External Environment Environment change! Unsure! Internal Strategies External Strategies

40. Set of actions to achieve results! Managers effect changes to deal/cope Internal strategies

41. Recruitment • Screening and selecting • Internally or externally

42. Bring knowledge on policies and operations in similar companies.

43. Buffering • Cushion/balance an opposing force • Strategy for a business to meet a challenge Stockpile: Raw material for prod Purchase more Consider future price  Produce more: Compensate for high demand Higher output lower demand

44. Smoothing

45. Rationing • Need to meet high demand for G&S • Unable to expand operations to meet demand • Ration available G&S • Ration resources to meet demand

46. Geographic dispersion • SA business do business all over world • NB! Difference in: • Exchange rate • Economic systems • Political situations • Overcome = Operations in different countries.

47. External Strategies • Advertising • Contracting • Co-opting • Coalescing

48. Advertising • Persuade potential customer to purchase/consume more. • Goal: Retain existing customers and win new ones. • Uncertainty  Price sensitive, fickle, specific brand. • Avoid = Show product or service

49. Contracting • Agreement between 2 or more • To do, not to do or promise something • Oral or written • Implied or express • Legally enforceable or not • Extended over time

50. Co-opting • Invite business/other leaders. • Be part of Board of Directors. • Get members to assist in developing goals and policies.