Environments

Influences on business environments

Challenges from the market and the macro environment include strong competitors and the bargaining power of customers and suppliers.

CAPS

Grade 11 · Business Studies · Environments

Business Studies answers in business language, applied to the scenario.

  • The papers

    Paper 1 is business environments and business ventures. Paper 2 is business roles and business operations. Each paper is 150 marks.

  • A 40-mark essay

    Introduction 2 marks: say what the essay will deal with. Body: facts from the scenario, each with an explanation of the impact or the solution. Conclusion 2 marks: a decision, not a new fact. Insight is 4 marks for layout, analysis, synthesis and originality.

  • How a marker reads it

    A common mix-up is calling a staff quarrel inside the shop an environmental influence, when that quarrel is micro.

Quotes from a scenario must be used, not copied as decoration. A definition with no link to the business in the question stays in the low marks.

ABN

Worked theory

Worked theory. A strip of spazas on a main road in Soweto has sold bread, airtime and cold drink to the same households for years. A mall opens 2 km away and its supermarket sells a loaf for R12 while the spazas charge R15. In the first month the Friday rush at three spazas thins. The mall is a competitor with more power on price and range. The spazas did not get worse at stacking shelves. The market environment around them changed.

More worked examples

  • Mbombela cement yard

    A hardware store in Mbombela buys almost all its cement from one supplier. The supplier raises a bag from R95 to R115 and will not deliver fewer than 50 bags. For that week the store cannot find another source, and builders drive to a bigger yard. The supplier's bargaining power is a market challenge because there is no easy substitute. The store's own staff did not become less skilled overnight.

  • Gqeberha panel beater

    A panel beater in Gqeberha sees fewer smashed cars in a slow year, because households delay repairs. Insurance jobs that used to be approved in a week now wait a month. No new panel shop opened on the street. Quieter demand is an economic influence from the macro environment. Empty bays on a Thursday are the challenge showing up in one workshop.

In ordinary words

A competitor challenges the business when a new format, a lower price or a better location pulls the same customers away. Customers have bargaining power when they can walk to another seller easily, and suppliers have it when the business cannot switch. Macro challenges such as a slow economy, a new law or a power cut arrive at the same time and are nobody's shop to control. The influence counts as a challenge when profit falls or the firm is forced into a change it did not plan.

In South Africa

A row of Soweto spazas sits two kilometres from a new mall entrance that now sells the cheaper loaf.

Part 1 / 4

What it is

Challenges from the market and the macro environment include strong competitors and the bargaining power of customers and suppliers.

More worked examples

Board walkthroughs on this topic. Open one, copy the working, then try the next.

Example 1 / 20

Case study: A retailer is affected by load-shedding, a new competitor and low staff morale. Classify each by business environment and state the level of control.

How we got there

Read this like a teacher at the board. We go slowly, name every number, and say why we take each step.

Explain in another language · 11

1. What is the question asking?

Read the question twice. Circle the unknown. Underline every number and unit. The paper is asking: Case study: A retailer is affected by load-shedding, a new competitor and low staff morale. Classify each by business environment and state the level of control.

In other words — as if you have never seen this before

If you have never seen this before: Micro: full control; market: some control; macro: no control. We will name a method in words, write the formula with no numbers, then substitute one line at a time.

2. What do we already know?

Three challenges.

3. Which method — and why this one?

Micro: full control; market: some control; macro: no control.

4. Step-by-step working

  1. 01 / 07

    Step A — Read the question twice

    Slow down. Circle the word that names the unknown. Underline every number and its unit. Do not grab a formula yet — first decide what the paper is actually asking.

    Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.

  2. 02 / 07

    Step B — Write the given in a column

    Three challenges.

    Why this step: A column with units stops you mixing cm with m, or minutes with seconds. Markers can also see you started correctly.

  3. 03 / 07

    Step C — Name the method in words

    Micro: full control; market: some control; macro: no control.

    Why this step: If you can say the method in a sentence, you will pick the right formula. First-timers skip this and grab the first equation they remember.

  4. 04 / 07

    Identify the given

    Staff morale — micro (full control). New competitor — market (some influence). Load-shedding — macro (no control).

    Why this step: We only do one job per line so a marker can follow the marks — and so you can find a slip without starting over.

  5. 05 / 07

    Step G — Sense-check the size

    Ask: is this the kind of number a Grade 10–12 paper would want? A speed of 3 000 ms for a learner walking, or a probability bigger than 1, means a unit or algebra slip. Estimate first: round the numbers and do the sum in your head.

    Why this step: Markers write ‘unrealistic’ in the margin when the method is right but the size is wild. A 10-second head check often finds a missing 10² or a unit that never changed.

  6. 06 / 07

    Step F — Box the answer with its unit

    Micro, market and macro respectively.

    Why this step: A number without a unit is half a mark on a Physics paper, and a marker can miss a Maths answer that is buried in working.

  7. 07 / 07

    Step H — What the marker is looking for

    On an NSC memo you usually earn: (1) a method mark for naming the right formula or idea in words, (2) an accuracy mark for substituting the given numbers with units, (3) an accuracy mark for the boxed answer with its unit. Write those three lines even if you are unsure of the arithmetic — blank pages score zero.

    Why this step: First-timers chase the final number and leave the method blank. The memo still pays out for the idea and the substitution even when the last line is wrong.

5. The answer

Micro, market and macro respectively.

Copy onto your answer sheet — in this order

Answer: Micro, market and macro respectively.

6. Check it like a marker

Strategy differs by control.

7. A trap first-timers fall into

First-timers often grab the first formula they remember, mix units (cm with m, minutes with seconds), or drop a minus sign. Write the formula in words first: “this equals that, because…”

Ntsako · fx-991ZA PLUS. Tap to calculate.