Business Management 1B
Question 1.1
The six components or variables of the macro environment:
Technological environment, which continuously brings change and innovation to the business world. Factors that may affect Johnson Matthey are because he operates in an industry that is driven by advancements in technology in order for him to remain competitive his company would need highly skilled workforce and new and more efficient ways of meeting challenges faced by this industry. To be at the forefront of technological innovations, the company requires new technology in order to stay in the know and also to communicate with staff on a continuous basis as well as with consumers.
The economic environment, in which factors such as inflation, exchange rates, recessions, the bank crisis and the price of metals , and monetary and fiscal policy influence the prosperity of the business organization
The social environment, in which consumer lifestyles, habits and values make certain demands on the business organization, and that is pollution which is bad for human and because Johnson Matthey’s only require people with skills.
The physical environment, which consists of natural resources such as mineral wealth, flora and fauna, and manufactured infrastructural improvements such as roads and bridges and the need to know more about the environment and what can be done o protect fauna and flora.
The institutional environment, with the government and its political and legislative involvement as the main components, which by means of legislation influence the business. Governments set limits to reduce emissions rises as the number of vehicles on the road increases and Governments can set tax to encourage certain business types and there are laws in place to protect the health of humans by instilling laws.
The international environment, in which local and foreign political trends and events affect the business organization as well as the market environment. Johnson Mattheys’ company
The six components or variables of the macro environment:
Technological environment, which continuously brings change and innovation to the business world. Factors that may affect Johnson Matthey are because he operates in an industry that is driven by advancements in technology in order for him to remain competitive his company would need highly skilled workforce and new and more efficient ways of meeting challenges faced by this industry. To be at the forefront of technological innovations, the company requires new technology in order to stay in the know and also to communicate with staff on a continuous basis as well as with consumers.
The economic environment, in which factors such as inflation, exchange rates, recessions, the bank crisis and the price of metals , and monetary and fiscal policy influence the prosperity of the business organization
The social environment, in which consumer lifestyles, habits and values make certain demands on the business organization, and that is pollution which is bad for human and because Johnson Matthey’s only require people with skills.
The physical environment, which consists of natural resources such as mineral wealth, flora and fauna, and manufactured infrastructural improvements such as roads and bridges and the need to know more about the environment and what can be done o protect fauna and flora.
The institutional environment, with the government and its political and legislative involvement as the main components, which by means of legislation influence the business. Governments set limits to reduce emissions rises as the number of vehicles on the road increases and Governments can set tax to encourage certain business types and there are laws in place to protect the health of humans by instilling laws.
The international environment, in which local and foreign political trends and events affect the business organization as well as the market environment. Johnson Mattheys’ company
Cited: 1 Info. (2003, September 9). Retrieved February 14 , 2014, from South Africa Info: www.southafricainfo Jonker, Saayman, M., & de Klerk, S. S. (2009). The role and attributes of Entrepreneurs at South Africa 's Largets Arts Festival. PASOS , 381-392. (2002). Research, Johannesburg: Trade and Industrial Policy Strategies. (The role and attributes of Entrepreneurs at South Africa 's Largets Arts Festival, 2009) 2 Info. (2003, September 9). Retrieved February 14 , 2014, from South Africa Info: www.southafricainfo Jonker, Saayman, M., & de Klerk, S. S. (2009). The role and attributes of Entrepreneurs at South Africa 's Largets Arts Festival. PASOS , 381-392. 3 (2002). Research, Johannesburg: Trade and Industrial Policy Strategies.