Defining the Market Environment (Grade 10 NSC Matric Business Studies): Flashcards
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Market environment
Market environment
External factors directly influencing business operations daily
Five components of market environment
Five components of market environment
Consumers, suppliers, intermediaries, competitors, organisations
Most important market environment component
Most important market environment component
Consumers/customers - without them no business can survive
Suppliers
Suppliers
Provide inputs/resources/raw materials for production
Intermediaries
Intermediaries
Middlemen connecting producers with consumers in distribution
Wholesalers
Wholesalers
Buy large quantities from producers, sell smaller to retailers
Competitors
Competitors
Businesses offering similar products to the same target market
What competition encourages
What competition encourages
Innovation and keeping prices reasonable
Regulators
Regulators
Government bodies creating and enforcing business operation rules
Opportunities in market environment
Opportunities in market environment
Positive factors that contribute to business success