The Micro Environment

Lesson Overview

• Grade Level: 10th Grade
• Subject: Business Studies
• Duration: 40 minutes
• Curriculum Area: South African Curriculum – Business Studies – Micro Environment (Tasked to relate to US pedagogy standards)
• Age Range: 15–16 years

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Learning Objective

By the end of this lesson, students will:

1. Understand the concept of the micro environment in a business context.
2. Identify the components of the micro environment.
3. Analyze the relationship between the micro environment and business success.
4. Apply their understanding to real-life business scenarios.

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Lesson Format

Materials Needed

1. Whiteboard, markers, and erasers
2. Business-related flashcards
3. Copies of a short case study relevant to students' real-world context
4. A4 Paper and pens for student group work
5. Stopwatch for managing time effectively

Key Vocabulary

• Micro Environment
• Internal Stakeholders
• Suppliers
• Customers
• Competitors
• Intermediaries

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Lesson Breakdown

1. Hook (5 minutes): "Business Under the Microscope"

• Begin by asking students: "What do you think businesses need every day to survive?"
  (Generate responses like employees, customers, suppliers, or competitors on the whiteboard.)
• Introduce the key term Micro Environment and explain briefly:

  "The micro environment is the environment close to a business that has a direct influence on it. These are factors like your employees, suppliers, customers, and competitors that you as a business owner can control or manage."

• Share an example they can relate to—a fast-food restaurant: customers who buy burgers, suppliers who deliver ingredients, competing restaurants across the street, etc.

Purpose: Engage students and make them think about the lesson’s relevance from their perspective.

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2. Core Teaching: Breaking Down the Micro Environment (15 minutes)

Mini-Lecture with Visuals (6 minutes):

• Use a quick diagram on the whiteboard to illustrate the components of the micro environment. Break it into five parts:
  1. Internal Stakeholders: Owners, managers, employees.
  2. Suppliers: Where resources/materials come from.
  3. Customers: The people or groups buying the product/service.
  4. Competitors: Businesses offering similar products or services.
  5. Intermediaries: Agents or entities that help get the product to the customer (e.g., marketing teams).

Interactive Discussion (2 minutes):

• Ask students for examples of businesses in their local area (e.g., a bakery, tech store, or car wash).
• Relate their examples back to the diagram. Highlight real-world connections.

Short Case Study (7 minutes):

• Hand out a short fictional case study:
  "A local smoothie shop struggles because their supplier failed to deliver fruits on time. Meanwhile, a new diner next door has better customer service and attracts the same clientele."
• Students (in pairs): Determine 3 micro environment factors affecting the smoothie shop and propose solutions. Await responses like:
  • Supplier Issues: Suggest finding alternative suppliers or diversifying products.
  • Customer Experience: Highlight focusing on customer loyalty or improved service.
  • Competition: Suggest monitoring competitor strategies.

Purpose: Establish understanding and real-world application.

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3. Interactive Group Activity (15 minutes): Building a Business Ecosystem

• Instructions for Activity:
  1. Divide the class into 4 groups of 4 students each.
  2. Assign each group to play the role of a stakeholder: Internal Stakeholders, Suppliers, Customers, Competitors.
  3. Groups will brainstorm "How do we impact the business?" by answering:
     • How does this stakeholder help the business grow?
     • What challenges could this stakeholder cause for a business?
     • How does this stakeholder interact with other stakeholders in the micro environment?

Example for Clarity:

• Group 1 (Internal Stakeholders): "We manage daily operations, but if employees strike, nothing works."

• Group 2 (Customers): "We buy products, but if prices rise, we shop elsewhere."

• Class Presentation: Each group gets 2 minutes to share ideas while classmates take brief notes.

Purpose: Encourage collaboration and critical thinking while driving deeper insight into external factors.

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4. Wrap-Up and Exit Ticket (5 minutes):

Summarize Key Points:

• Recap the 5 components of the micro environment.
• Reinforce their influence on business success and failure.
• Link back to case study and group activity findings.

Exit Ticket Question:

Before leaving, students write a short response to:
"In your opinion, which micro environment factor is the most important for a business to control? Why?"

Purpose: Solidify understanding and encourage individual reflection.

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Assessment

1. Participation and engagement during discussions and group work.
2. Quality of responses in the group presentations.
3. Clarity and insightfulness in the exit ticket response.

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Differentiation

• For Visual Learners: Use the whiteboard diagram as a visual anchor.
• For Kinesthetic Learners: Encourage physical movement during group activities.
• For ELL Students: Provide a glossary of definitions with visuals for key terms in advance.
• For Advanced Students: Add a task to analyze how macro factors like the economy impact the micro environment.

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Homework (Optional)

Students research a local business and identify its stakeholders in the micro environment. Suggest one improvement the business could make to better manage a micro factor.

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Teacher Reflection

• Did students demonstrate understanding of micro environment components?
• Were group activities balanced and engaging?
• How well did students connect concepts to real-life scenarios?

End of Lesson