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Ways in which businesses can adapt to challenges of the macro environment Business Studies Grade 11 Notes

Ways in which businesses can adapt to challenges of the macro environment Business Studies Grade 11 Notes How firms can adjust to the macro environment’s issues Notes for Business Studies in Grade 11: The difficulties presented by a company’s macroenvironment are constant and cannot be completely eliminated. Businesses must learn to handle these difficulties better by adapting to them. For Grade 11 Business Studies, you must be aware of the following ways in which businesses can adjust to the challenges of the macro environment:

Information management
Strategic responses
Mergers, takeovers, acquisitions and alliances
Organisational design and flexibility
Direct influence of the environment and social responsibility

These adapting methods and strategies will be discussed in details below:

Explaining Five ways in which businesses can adapt to challenges of the macro environment

1. Information management

Information must be found/recorded/stored/easily retrieved and effectively used.
Businesses need to implement an effective information management system which is accessible and useful to all staff.
They should invest large capital into information technology (IT) system to update business operations.
Modern IT solutions enable businesses to satisfy customer needs faster and better.
Business may benefit from an increase in market share and profitability.

2. Strategic responses

Management needs to design strategic responses to various challenges by analysing all information, identifying stakeholders’ involved.
Get a clear picture of each stakeholder’s viewpoints and requirements
Businesses need to be aware of new competitors in the market and they must be able to strategically respond to threats.
They must make strategic plans to remain sustainable in a competitive market.
Correct strategic responses assist businesses to identify the most important features of their products.

3. Mergers, takeovers, acquisitions and alliances

Business sometimes have to make quick decisions to survive as a result of challenges from the business environments.

They may implement mergers, takeovers, acquisitions and alliance as solutions to respond to the challenges of the environments.

Mergers

This occurs when two companies join together and form one new business.
When two businesses, usually by agreement become one.
If it is a public company, then the shareholders will swop their shares in one company for the equivalent value of shares in the new merged company.

Takeovers

The purchasing of a company (target) by another company (bidder) usually against the will of their targets.
Businesses that take over existing companies by buying out its shares until the business has controlling interests.

Acquisitions

A business buys another business at an agreed price.
It usually occurs to private companies that are not listed.

Alliances

These are agreements when two or more businesses work together to achieve their objectives.
Organisations with similar interest/nature/qualities choose to work together for the mutual benefit of both organisations.
They remain separate and merely co-operate with one another.

NOTE: You must be able to give practical examples of mergers, takeovers, acquisitions and alliances.

4. Organisational design and flexibility

Organisational design describes how a business sis structured and how it communicates its culture.
It is a process to integrate people/information/technology of an organisation so that improves the profitability of the business.
Businesses need to be flexible in their organisational design and strategies so that they can compete in a changing market.
They need to change the organisational design to adapt to a specific challenge.

5. Direct influence on the environment and social responsibility

Direct influences on businesses usually results from legislation/trade agreements and competitor strategies.
Successful businesses and their environment

How to Pass Business Studies Grade 11 with distinctions

One of the most significant accomplishments in your academic career is passing matric. It provides access to a wide range of post secondary options and employment possibilities. Use our best study advice to complete your matriculation, and you’ll succeed with flying colors.

Attend class
Ask questions
Make notes
Study
Practise
Study groups
Extra class
Motivation
Complete assessments
Prepare for the Exams in due time

Ways in which businesses can adapt to challenges of the macro environment Business Studies Grade 11 Notes