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Module 2 • Management


Activity 10


The aim of the National Lottery is to collect money for social responsibility programmes. A few people have won a lot of money and many have already lost money. The objective is good, however, there are groups and organisations which object to the lottery.


1. How do you feel about the concept of gambling? 2. Identify one group or organisation who in fact objects, and explain why they react in this way.


3. Which business environment is therefore under discussion here? 4. Why are there in fact objections if the money is used for a good purpose?


3.3.4 Environment (Green)


This section refers to our national heritage, such as water, air, animal and plant life. A business cannot ignore this environment because we interact with it daily. An environment is under pressure because of factors such as: • Overpopulation • Pollution • Wrong farming techniques • Poaching • General carelessness regarding the ecosystem


Businesses must monitor this environment because a growing public awareness and concern will result in changing consumer patterns. Environmental groups are also exposing businesses that are interacting with the environment in an irresponsible manner.


3.3.5 Technological forces


Technology can be defined as a process that transforms organisational inputs into outputs. Technology does not only refer to machines. It includes: • Knowledge • Tools • Techniques


Technological innovations occur on a daily basis and can destroy a business completely if it does not respond quickly. This will happen if a business does not monitor new technological innovations and consider its effect on its line of business. It includes factors such as substitute products, new methods, techniques and improved raw materials. Online ordering is one such technological innovation. Many retailers now offer an option for people to order their shopping on the Internet and have it delivered to their homes. The development of “social media” such as Facebook, Twitter and Blogs opens new opportunities for business and especially in the service industry. For example, restaurants now allow online bookings, but patrons can also comment on their experiences. Call it ‘word of mouth” via the Internet.


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