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
- Employees
- Suppliers
- Government
- Directors
- Trade Union
- Creditors/banks
- Competitors
- Management
- Customers
- Community
VCE Business Management Year 11

Chapter 3 – Business Environments
Stakeholders of a business
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
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