Customer Service

Pick n Pay Business Environment

Firstly would like to describe the business environment according to my understanding. It means the factors that affects Company operations and includes customers, competitors, stakeholders, suppliers, regulations, government activities, social and economic factors and technological development. There are 3 sub-environmental

* Micro environment

* Market environment and

* Macro environment

Micro environment this refers to the business itself as business include employees, staff managers, other department such as financial department. This environment management has full control over what is happening within the company. Like for instance Pick n Pay can decide how much to sell their branded products for without consulting stakeholders. If they decide to sell their branded 2kg rice for R17 and management decided will be like it

Market environment this sub environment that management have no control over and has direct influence to business. It consists of customers, competition, suppliers and distributors. For example the harbour helps with the supply of meat if they fail to deliver for some reason management won’t have control over the situation.

Macro environment this refers to greater external environment that will influence the business t a lesser or greater extends. Things that affect the consumer in this environment like petrol increase, increase in taxation these affect customers this means less money received by customers. This will have indirect influence in the profit of the company.

Like example imagine the turnaround for Pick n Pay in a day is R18 000 consumer being affected by increase on taxation with the money they used to spend buying 5 items now they buy 3 items, obviously Pick n Pay won’t be able to meet their daily target.

Components of Micro environment

The mission and objectives of the business

The Pick n pay retail group has the following mission statement, which says a great deal about the...