Chapter 3 – Business Environments Three levels of the Organisational Environment All businesses, whether small, medium or large, must operate in a complex and rapidly changing business environment. For any business to be successful, no matter what its size, it must be able to respond quickly to changes or pressures that may come from the internal, operating and macro environments. The three levels of Business Environment include: Internal Environment Operating Environment (External) Macro Environment (External) VCE Business Management Year 11

Chapter 3 – Business Environments Stakeholders of a business At each level of the environment of a business, there are stakeholders or pressures that impact directly on the organisation. A stakeholder can either affect or be affected by the operations of an organisation. Ideally, all stakeholders should want an organisation to achieve its aims or objectives. In reality, this does not occur as various stakeholders – a competitor, for example – would have conflicting interests. Stakeholder: An individual or group that has a direct or vested interest in the activities of an organisation. VCE Business Management Year 11

Chapter 3 – Business Environments Stakeholders of a business Stakeholder: An individual or group that has a direct or vested interest in the activities of an organisation. Potential Stakeholders for any organisation: - Shareholders- Directors- Management - Employees- Trade Union- Customers - Suppliers- Creditors/banks- Community - Government- Competitors VCE Business Management Year 11

Chapter 3 – Business Environments Stakeholders of a business ACTIVITY For each of the below stakeholders identify 2 interests or issues they might have with an organisation VCE Business Management Year 11

Chapter 3 – Business Environments Stakeholders of a business ACTIVITY For each of the below stakeholders identify 2 interests or issues they might have with an organisation VCE Business Management Year 11

Chapter 3 – Business Environments Three levels of the Organisational Environment Macro Environment (External) Macro environment refers to the range of factors that can influence the operation and performance of an organisation, over which the organisation has no control. Following is a description of the factors that can occur in the macro environment. Economic Forces Government Forces Legal Forces Technological developmental forces Global Forces Social and Cultural Froces Environmental Forces VCE Business Management Year 11

Chapter 3 – Business Environments Three levels of the Organisational Environment Macro Environment (External) Economic Forces – business can be impacted by the economic cycle of Australia and also other trading nations, all of which can effect how a business may run. Government Forces - Legal Forces – In Australia all business must comply with Legislation and Common Laws when operating. If laws are changed or new ones implemented this may effect the business and how it runs. In this instance the business has no control over whether the law is good or bad, but it must comply. Technological developmental forces - VCE Business Management Year 11

Chapter 3 – Business Environments Three levels of the Organisational Environment Macro Environment (External) Global Forces – Social and Cultural Forces – Environmental Forces - VCE Business Management Year 11

Chapter 3 – Business Environments Three levels of the Organisational Environment Operating Environment (External) Organisations face different pressures and uncertainties from their operating environment. The factors within this environment directly interact with the business and its operations. They can provide both opportunities and threats to a business relating to its success and ability to be competitive. Potential Stakeholders in the Operating Environment include: Customers Competitors Suppliers Trade Unions Lobby / Pressure Groups Financial Institutions Regulatory bodies VCE Business Management Year 11

Chapter 3 – Business Environments Three levels of the Organisational Environment Operating Environment (External) Organisations face different pressures and uncertainties from their operating environment. The factors within this environment directly interact with the business and its operations. They can provide both opportunities and threats to a business relating to its success and ability to be competitive. Potential Stakeholders in the Operating Environment include: Customers Competitors Suppliers Trade Unions VCE Business Management Year 11

Chapter 3 – Business Environments Three levels of the Organisational Environment Operating Environment (External) Lobby / Pressure Groups Financial Institutions Regulatory bodies VCE Business Management Year 11

Chapter 3 – Business Environments Three levels of the Organisational Environment Internal Environment It is important for organisations to take account of and respond to the pressures and forces from within their organisation. When making decisions in relation to these factors, management has a fair degree of certainty and control. Potential Stakeholders within the Internal Business Environment include: Owners / Shareholders Management Employees Organisational Structure Corporate Culture VCE Business Management Year 11

Chapter 3 – Business Environments Three levels of the Organisational Environment Internal Environment Owners / Shareholders Management Employees VCE Business Management Year 11

Chapter 3 – Business Environments Three levels of the Organisational Environment Internal Environment Organisational Structure Corporate Culture VCE Business Management Year 11