business

• Micro-environment


  • Internal environment
  • Consists of the business itself
  • Management has complete control
• Components of the micro-environment

  • Vision
  • Mission
  • Goals
  • Objectives
• Evaluate the Vision, Mission, Goals, and Objectives

  1. Vision: The dreams that the business wants to achieve

  2. Mission: How the business intends to achieve its vision

  3. Goals: Long-term plans the business wants to achieve

  4. Objectives: Short-term goals
• Organisational Culture


  • Refers to the personality of the business
  • Consists of different beliefs
  • Influences people's actions and attitudes
  • Positive culture motivates staff and helps them be productive
• Topics of Organisational Culture

  • Human resources
  • Financial resources
  • Physical resources
  • Technological resources
  • Entrepreneurship
• Identify three business environments and mention the extent of control

  • Micro: Full control
  • Market: Little/limited control
  • Macro: No control
• Discuss why the business should maintain a good relationship with suppliers
• Identify three possible challenges for each environment

  1. Macro: Challenge in the workplace, Contemporary legislation

  2. Micro: Difficult employees, Lack of vision and a mission

  3. Market: Competition, Shortage of supply
• Components of the Market Environment

  • Consumers
  • Suppliers
  • Competitors
• Organisational Resources

  • Human resources
  • Financial resources
• Explain the reasons why the macro-environment can be a challenge to a business

  New businesses enter the market, Customers looking for the best prices, Suppliers give discounts and special offers, New products or substitutes threaten or replace old products
• Distinguish between Management and Leadership

  • Management: Direct human behaviour, Task-orientated
  • Leadership: Influences human behaviour, humanly - orientated
• What are the three types of business environments mentioned?

  Micro, market, and macro environments
• What is meant by business environments?

  All the internal and external factors that affect the business
• What does the micro environment consist of?

  The business itself and all elements inside the business
• What is the macro environment?

  The external environment that exists outside the micro and market environments
• What does the extent of control refer to in business environments?


  The amount of influence the business has on the environments
• What is the meaning of the micro environment?

  It is the internal environment of the business
• Who has complete control over the micro environment?


  Management of the business
• What are the components of the micro environment?

  • Vision, mission, goals, and objectives
  • Organisational culture
  • Organisational resources
  • Management and leadership
  • Organisational structure
  • 8 business functions
• What is a vision in a business context?

  The dreams a business wants to achieve
• What is a mission statement?

  How the business plans on achieving its vision
• What are goals in a business context?

  Long term plans for what the business wants to achieve
• What are objectives in a business context?

  Short term intents the business wants to meet to achieve its long term goals
• How does organisational culture influence a business?

  It influences people's actions and attitudes
• What are the types of organisational resources?

  Human, financial, physical, technological resources, and entrepreneurship
• What do human resources refer to in a business?

  The employees and labor working in a business
• What are financial resources in a business?

  Income or total capital of a business
• What do physical resources include?

  The raw materials, machinery, tools, and assets of a business
• What are technological resources?


  The technology used in the business, such as laptops and printers
• What is the role of entrepreneurship in a business?

  The owner/management who combines resources to ensure profits and how the business functions
• How does management differ from leadership?

  Management directs human behavior while leadership influences it
• What does organisational structure refer to?


  The way information flows in an organisation
• What is the purpose of organisational structure?

  • Indicates tasks, level of authority, and responsibility
  • Shows the flow of assignments, feedback, and communication
  • Also called an organogram
• What are the 8 business functions?

  1. Human resources function
  2. Production function
  3. Administration function
  4. Financial function
  5. General management function
  6. Public relations function
  7. Purchasing function
  8. Marketing function
• What is the role of the human resources function?

  Responsible for finding the most suitable employees and managing leaves, payroll, skill training, and conflict resolution
• What does the production function do?

  Responsible for creating quality goods and services
• What is the purpose of the administration function?

  To ensure that information collected is reliable through gathering and processing
• What does the financial function entail?

  Keeping accurate records of all transactions and handling the money of the business
• What is the role of the general management function?

  To make correct decisions and ensure that all business functions work harmoniously together