micro-environment

• leadership


  inspire people, people-oriented, use motivational approach, influences human behavior
• management

  ensures tasks given to subordinates are completed, task-oriented uses instructional approach, guides human behavior
• TOP MANAGEMENT


  Make long-term strategic decision, eg CEO's, directors
• MIDDLE MANAGEMENT


  Make tactical decisions, eg, departmental,marketing and financial managers
• LOW MANAGEMENT


  Make operational decisions, eg, supervisor,team leaders
• General management 


  sets overall direction or strategy of the business, this function leads,organises and controls other functions
• Administration function

  handeling of information and data,responsible for collecting,processing and distributing information which is used for decision making by management
• ACTIVITIES OF ADMINISTRATION FUNCTION

  Collecting of information,handling of information,information technology
• Financial function

  financial function is responsible for planning and managing all funds and assets of the business
• PURPOSE OF FINANCIAL FUNCTION


  determines how much capital the business needs, decides how to invest the capital funds in the business
• REASONS WHY THE BUSINESS NEEDS FINANCE

  Businesses need to find the best investors, businesses need to source funding
• SOURCES OF FINANCING

  Bank loans, bank overdrafts, asset-based loans, grants, angel funding
• Purchasing function


  plays an important role in buying quality raw materials, ensures goods are delivered at the agreed price, right quantity and right quality
• purpose of the purchasing function


  continuously looking for best suppliers, send damaged goods back to supplier to see to it that it is replaced
• activities of the purchasing function


  look for suitable, new, and better suppliers, and find the needs of the other business departments
• purchasing procedure

  place an order, collect or receive the order, pay the supplier, complete the order
• advantage of credit purchasing

  no discrimination based on age and race on granting credit, if interest rates decrease consumers will be able to pay off debt
• disadvantage of credit purchasing

  There is always a risk of unsettled debts, there will be less money to invest for consumers
• importance of stock


  enables businesses to determine the amount of stock, and ensure they is enough stock to meet the normal demand of consumers
• NATIONAL CREDIT ACT

  NCA was introduced to provide both credit providers and credit applicants with clear guidelines regarding rights and responsibilities
• Purpose of NCA

  Educate consumers on making the right choice when applying for credit, encourage responsible buying
• advantages of NCA on the business

  protects business from non-paying consumers, prevents reckless lending by Financial institutions
• disadvantages of NCA on businesses

  business can no longer take the risk of selling low-quality products at high prices, which leads to loss of sales as many businesses may no longer qualify to buy on credit
• The CONSUMER PROTECTION ACT

  The CPA was introduced to prevent consumers from being exploited by businesses
• PURPOSE OF CPA

  Empowers consumers to take legal action if their rights are not upheld, promotes responsible consumer behavior
• Advantages of CPA on businesses

  businesses may be safeguarded by dishonest competitors, may gain consumer loyalty if the comply with the CPA
• Disadvantages of the CPA on business

  penalties for non-compliance may be very high. Staff need to be trained/Legal experts may need to be consulted, which can increase costs
• public relations

  responsible for creating good public image for the business
• importance of public relations

  business can sponsor community events
• production function

  produce quality products, buys raw quality products
• marketing function

  responsible for identifying the consumers needs
• human resource function

  the human resource function is responsible for finding correct qualified employees
• micro environment

  environment within which a business operates consist of the business itself. It is the decision-making environment because management makes decisions that the business achieve its goal.
• vision

  statement that explains what the business aims to achieve, the dream the business wants to achieve
• mission statement

  explain what the business does to achieve its vision
• goals

  long-term objectives of what the business wants to achieve
• objectives

  short-term tasks to reach goals, contains a deadline
• organizational culture

  how things are done in the business. EG, employees dress code, how they communicate with each other
• organisational resource

  assets used for business to produce goods or services to achieve goals
• TYPES OF ORGANIZATIONAL RESOURCES Human resource

  people with knowledge and skills such as employees and managers, people who contribute to achieve the goals of the business