1. The three economic sectors Primary sector with raw materials and natural resources Extract natural resources from nature Products are sold in raw state Examples: mining, fishing, agriculture, forestry, farming Secondary Sector Manufactures and processes raw material into final goods Final goods are sold to the consumer Goods are ready for consumption Examples: manufacturing, construction, ship building, generation of electricity Tertiary Sector Includes all industries that offer services to other businesses and consumers Examples: banking, retailers, transport businesses, consultants 2. Business Environments related to the three business sectors Primary Sector (e.g. Diary Farm) Environment Elements Description Control Micro Environment Vision Mission Goals Objectives Provide goods (milk) to consumers Managers workers Chooses the workers he wants to employ Full control over the business Must comply with legislative framework (EE, BEE, Affirmative action)
Workforce Market Environment Suppliers Consumers Competitors Intermediaries Suppliers of farming equipment and feed Some suppliers are from the primary sector (fodder) and some from the secondary sector (electricity) and some from the tertiary sector (transport) No control over availability of supplies, but can choose his suppliers Has no control over the consumers, but can attract them with quality products Macro Environment Political Environmental Social Technological Legal Economical Employ technology to improve efficiency New inventions can cause equipment to become obsolete Legislation affects the business, e.g. land reforms Has no control over technological inventions Has no control over legislation Secondary Sector (dairy) Environment Elements Description Control Micro Environment Vision Mission Goals Objectives Workforce Aims to provide products to consumers Maintain high levels of productivity and profitability and socially responsible Chooses people he wants to employ but must comply with legislative requirements Full control over mission and vision Market Environment Suppliers Consumers Competitors Intermediaries Supplier from primary sector (milk) Supplier from tertiary sector (transport) Clients (retailers) from tertiary sector Has no control over availability of supplies but can choose the best supplier Has no control over clients, but can influence through advertising campaigns, good quality products and affordable prices
Environment Political Environmental Social Technological Legal Economical Uses technology in manufacturing and transformation process Legislation affects the business, e.g. land reforms Can adapt to challenges in macro environment by forming power relationships, strategic alliances or lobbying Has no control over technological inventions Has no control over legislation Tertiary Sector Environment Elements Description Control Micro Environment Vision Mission Goals Objectives Workforce Retailer (checkers) aims to create a wonderful shopping environment and offer widest range of quality products to consumers Determine own vision and mission Choose who they want to employ as long as they comply with labour legislation Full control over mission and vision Market Environment Suppliers Consumers Competitors Intermediaries Suppliers from secondary sector (diary) and tertiary sector (shop fittings) Has no control over availability of suppliers but can choose the best supplier Has no control over clients, but can influence through advertising campaigns, good quality products and affordable prices Macro Environment Political Environmental Social Technological Legal Can use technology to advertise online Choose who they want to employ as long as they comply with labour legislation Can to challenges in macro environment by forming power Has no control over technological inventions Has no control over legislation