Three Main Environments

Question 9
Discuss the three main environments that make up the management environment. Your discussion should include:
A: All the variables that make up each environment. (14)
B: The level of control that the manager has over each environment. (3)
C: The influences that these environments had on South African managers in the past 5 years. (3)
The main thee environments are the following namely: Micro environment that is an internal environment; the Market (task) environment and the Macro environment the last two are both external environments.
The Micro environments have the following variables:
Mission and goals of the organisation,
The organisation and its management, e.g. marketing, purchasing and financial;
The resources of the organisation, e.g. human resources, capital and expertise;
Organisational culture.
The Market environments have the following variables:
Consumers, their needs, purchasing and power and behaviour;
Substitute products;
Possible new entrants;
Labour Unions.
The Macro environments have the following variables:
Political environments;
Economic environments;
Social environments;
Technological environments;
International environments;
Ecological environments.
Management has almost complete control over the Micro environment by applying management functions. The variables are controlled by the management. When they access the environment, they will be able to identify the strengths and weaknesses of the organisation.
The Market or task environments form the buffer between the organisation and the Macro environment. The structure differ and there for the managers have to understand the major forces in the industries which they complete. The managers primary task is to identify, evaluate, and utilise opportunities in the market, as well minimise threats, and develop its strategies in such a way that it can deal with competition in the industry. The management’s   decisions...