Internal Factors: Administration Capital Marketing

 Markets: Categories of markets: Consumer goods markets – where foods, clothes, magazines, newspapers …are sold. Services markets -- where banking, insurance, repairing, cleaning, etc. are provided. Capital goods markets – where machines, equipment, and tools, etc. are sold. Labor markets – where people are hired. Housing markets – where people buy and sell properties. Money markets – where money is bought or lent. Commodity markets – where raw materials are bought and sold… Business Activity -

External Factors: Consumer Type Location

Other External Factors Government, Economic climate, world events, population trends, legislation and regulation, competition, consumers, environmental factors, pressure groups

Reference Figure 1-1 The nature of business activity External influences: Government, Economic climate, world events, population trends, legislation and regulation, competition, consumers, environmental factors, pressure groups Input: Land, labor, Capital, Entrepreneurship Function: Production, Marketing, Finance, Administration, HR, R & D Output: Goods, Services, Waste Business Activity

Business activity is affected by quite a number of external factors. It is not enough for a business only to consider and control resources and functions. External factors may have a great deal of influence over a company’s business activity or its managers’ decisions, and may prevent its growth, development and profitability. But these external factors are usually beyond the control of the business. Business Activity - External factors affecting businesses

Table 2-1 External influence factors on businesses External factorsBrief explanations The government Influences may come from government policy, government spending, government investment on infrastructure, etc. Economic climate Businesses are influenced by stable or unstable economic conditions. World events Influences from drought for growing rice, flooding, war, etc. Competition Local competition, national competition, international competition, etc. Consumers Influences from consumer taste changes, low-fat food, green food, new styles of wearing, etc. Population trends Influences from such factors as aging trends, single-parent family, more minority groups, etc. Legislation and regulation Influences from changes in law and regulations for producing or exporting a certain product, etc. Environmental factors Influences from waste disposal requirement, using recycled materials, etc. Pressure groups Influences may come from stakeholders like local communities, money lenders, etc. Business Activity -External factors affecting businesses

Reflections What factors affect your group business? Explain each. Was there any problem in setting up your business? Share how did you encounter and fix it. What important Business Math lessons that you’d use in this Business Expo? If you will do this business again, what will you change and why. What can you recommend to the next Grade 10s if they will have this Business Expo next year? Which part of the Business Expo is very challenging? What business of the Business Expo do you think should be done again next year and why. ______________________________________________