Business Environments Flashcards
Micro Environment element: Business Functions
What does the business environment consist of?
Internally - Micro
External - Market and macro
What is the micro environment?
Includes all the factors ‘’inside’’ the business that could affect the success or failure of the business.
What are the market and macro environments?
External to the business and include all the factors ‘’outside’’ the business that could affect the success or failure of the business.
What makes up the micro environment?
- Business functions
- Business policy
- Business culture
- Resources
- Structure
What are the 8 business departments?
- Purchasing
- Production
- Public relations
- Administration
- Marketing
- HR
- Financial
What is the general management department responsible for?
Developing a strategic plan for the business in order to improve the overall performance and profitability of the business.
What is the vision?
What the road is like for the future based on the history and current situation of the business.
What is the mission?
Refinement of the vision and specifies the reason why the business exists. Values, etc.
What are the Goals of the business?
Long-term accomplishments that the business wants to achieve, while objectives are the short-term targets that must be achieved to assist the business in reaching the long-term goals.
What is a business strategy?
The business strategy describes the plan of action that has to be implemented to achieve goals and objectives.
What do management tasks include?
- Planning
- Organizing
- Leading
- Control
- Communication
- Coordination with other departments.
- Decision-making
- Delegating
- Discipline
- Motivating
How does the production function ensures the profit of the business is maximized?
By combining all the factors of production to make a product that will satisfy the needs of the target market.
What are the 3 producing methods that a business will have to choose between?
Mass production, batch production or jobbing as options.
How does the production function insure the product fits the needs of the consumer?
Ensuring the product is:
- safe
- reliable
- durable
- after-sales service is good.
Describe the product cycle.
Products developed overtime to meet the needs of the target market.
