business environments

Question 1

micro-environment

Answer 1

the internal, immediate environment of a business

Question 2

state the components of the micro-environment

Answer 2

• vision, mission, goals and objectives
• organisational culture
• organisational structure
• organisational resources
• 8 business functions
• management and leadership

Question 3

extent of control

Answer 3

management of the business has FULL CONRTOL over the micro-environment and its components

Question 4

vision, mission , goals & objectives

Answer 4

• the vision reflects the dream of where the business would like to find itself
• mission states what the business aims to do
• goals are long term things the business wants to achieve and objectives are clearly defined targets the business wants to achieve in short term

Question 5

organisational culture

Answer 5

certain characteristics, values, attitude , and belief system of a business which control the way that the business conducted

Question 6

organisational structure

Answer 6

it provides a framework for managers , to show the division of responsibilities and assists managers to maintain control over the business as a whole

Question 7

resources

Answer 7

management are in full control of the resources needed in the day to day functioning of the business. resources ; human resources(workers), physical resources( raw materials, machines, equipment etc) ,financial resources (money) and information resources ( access to information ,expertise and knowledge)

Question 8

management and leadership

Answer 8

type and style of leadership managers show

Question 9

8 business functions

Answer 9

• general management
• administration
• public relations
• finances
• human resources
• marketing
• production
• purchasing

Question 10

Challenges faced by micro-environments

Answer 10

• difficult employees-workers with unsuitable skills and problematic workers
• lack of vision and mission- lack of vision causes workers to be confused and the business does not become productive
• inadequate management skills - managers who lack management skills will fail to respond effectively and quickly to problems in the business
• strikes & go-slows ,unions- workers tend to quickly resort to strikes as a way of forcing of forcing their demands on their employer these have devastating effects on the business operations
• unions - are very influential and can do anything to get their way

Question 11

How can employers deal difficult employees

Answer 11

managers can offer training to unskilled workers
-managers can deal with problematic workers by having reprimanding discussions with the individuals ,set specific goals for the individuals to achieve and monitor them and if problem continues disciplinary hearings can be held

Question 12

what can a business do to improve its vision and mission

Answer 12

management should redraft a clear vision and mission statement so that staff and management can have guidance on what the business goals are

Question 13

how can a business deal with a manager with lack of management skills

Answer 13

businesses should send managers on training courses where they will learn skills like , communication , planning , delegation and organisational skills , and controlling and leading skills

Question 14

how can businesses avoid go-slows and strikes ?

Answer 14

they can try solve labour disputes in a calm manner but they need to be proactive and be prepared for strikes

Question 15

how can businesses deal with unions

Answer 15

businesses need to be transparent with the unions they also need to build good relationships with union leaders so that through positive negotiations strikes can be avoided

Question 16

market environment

Answer 16

environment immediately outside the business

Question 17

managements extent of control on this environment

Answer 17

management cannot control this environment but it can influence it

Question 18

components[ market environment ]

Answer 18

competitors
consumers 
suppliers
intermidiaries 
regulators 
strategic alliances 
CPO's and NGO's

Question 19

challenges in market environment

Answer 19

lack of supply
competitors
change in consumer behaviour
demographics and psychographics

Question 20

demographics

Answer 20

characteristics such as age ,income ,education ,status ,religion , and occupation

Question 21

psychographics

Answer 21

consumers’ lifestyle and behaviours such as hobbies , attitudes and desires

Question 22

macro-environment

Answer 22

external environment of the business

Question 23

managements extent of control on the macro-environment

Answer 23

management has no control over the macro-environment

Question 24

components of macro environment

Answer 24

Political
Economical 
Social 
Technological 
Legal
Environment