BUSINESS STUDIES; GRADE 11 ACTIVITIES

INFLUENCES ON BUSINESS ENVIRONMENTS

ACTIVITY 1:
1.1. When a business tries to invest their money in such a way that is grows at a
faster rate than inflation.
A) Hedging
B) Renting
C) Hiring
D) Insurance
1.2. When a business undertakes a new venture with another business.
A) Acquisition
B) Merger
C) Takeover
D) Alliance
1.3. A … is classified as a challenge in the macro environment
A) difficult employees
B) lack of vision and mission
C) changes in consumer behaviour
D) political change

1.4. Identify the challenges of the micro environment represented by each of the
following statements: (3)
1.4.1. Kate is always complaining about working hours and produces sub-standard
work.
1.4.2. The management of AY Traders does not have a clear strategy of where the
business is going.
1.4.3. Sipho's building construction fails to meet its target due to a lack of leadership.
1.5. Explain how a business can adapt to the challenge of COMPETITION in the market
environment (2)
ACTIVITY 2

2.1 Read the scenario below and answer the questions that follow.

VAS CREATIONS (VC)

Vas Creations is a company that specialises in fashion design and styling. VC has
employed ten stylists who are always late for work. The management of VC purchases
their material at Ditsepe Clothing Manufacturers who charge high prices for their
material. VC is situated in a location that has a high rate of unemployment and crime.
De John fashion designs has just entered the fashion design industry with new
exclusive designs that attract many clients. VC has a poor marketing strategy and has
lost their clients to De John fashion designs. VC imports some of their designs from
China. The government has increased import tariffs, making it difficult for VC to
continue importing designs from China.

2.1.1 Identify THREE business environments from the scenario above. Motivate
your answer by quoting from the scenario above. (9)

2.1.2 Name ONE challenge of each business environment identified in

QUESTION 2.1.1 (6)

1.1.3 State the extent of control VC has over each business environment
identified in QUESTION 2.1.1 (3)

Use the table below to present your answer

Business Example from Challenge Extent of control
Environment the scenario

2.1.4 Outline TWO other components of each business environment identified in

QUESTION 2.1.1 (12)

2.1.5 Suggest ways VC can be involved in the macro environment. (8)

2.1.6 Discuss the benefits that VC may enjoy by being involved in the macro
environment. (10)