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Grade 10 business @ Cedar House > Chapter 1: Business Environments > Flashcards

Chapter 1: Business Environments Flashcards

1
Q

What are the two main business sectors?

A

Private and public.

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2
Q

What defines the public sector? What defining features does it have?

A

The public sector consists of government owned businesses. It provides collective goods and services to the country. They are funded by taxes the government collects from individuals who work and businesses operating in the private sector.

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3
Q

What defines the private sector? What defining features does it have?

A

Consists of businesses that have been established by private entrepreneurs, and are not owned by the government. The aim of businesses in this sector is to satisfy the needs and wants of their customers and to make a profit.
The entrepreneur has to provide capital to fund their business, which can be obtained from savings or a loan.

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4
Q

What are “collective goods?”

A

A fancy way of describing infrastructure.

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5
Q

What is capital?

A

The money a company needs to function and expand.

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6
Q

How can a private sector business create a competitive advantage?

A

By offering
- good quality products/services
- competitive pricing

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7
Q

The private sector is divided into..?

A

The informal sector and the formal sector.

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8
Q

Name the characteristics of the formal sector, and it’s defining features.

A
  • Registered and administered according to the laws of the country.
  • pays tax
  • Directly contributes to the country’s Gross Domestic Product (GDP)
  • Fixed location (e.g shopping mall)
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9
Q

Name the characteristics of the informal sector, and it’s defining features. ( + examples )

A
  • Do not pay tax
  • Not included in GDP calculations, but do indirectly contribute if makes use of suppliers in the formal sector.
  • usually not in a fixed location
  • E.g, Production: beaded jewellery, hawking: selling goods at robots, services: braiding hair on a street corner
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10
Q

Why is the informal sector important for economic growth?

A
  • Money is still spent in the formal sector
  • Still indirectly contribute to GDP
  • Contributes to decrease in poverty
  • Develops young entrepreneurs
  • Possibility of the business growing and becoming part of the formal sector in the future.
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11
Q

What are the industry sectors?

A

Primary -> secondary -> tertiary

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12
Q

Briefly define the primary sector.

A

This involves the extraction of resources directly from the Earth, this includes farming, mining and logging. They do not process the products at all. They send it off to factories to make a profit.

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13
Q

Briefly define the secondary sector.

A

Involved in the processing of products from primary industries. This includes all factories- those that refine metals, produce furniture etc.

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14
Q

Briefly define the tertiary sector.

A

Involved in the provision of services.

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15
Q

Briefly define the quaternary sector.

A

Involved in the research of science and technology.

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16
Q

Briefly define the quinary sector.

A

Some consider there to be a branch of the quaternary sector called this, which includes the highest levels of decision making in a society or economy. Includes the top officials in the government, science, universities, etc.

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17
Q

What is the concept of a business?

A

The definition of a business is the specific processes that add value to an economic society and/or to the particular country in which it operates. Businesses create employment, which helps people of the country (society) to improve their general standard of living. Also defined as economic activities performed to provide goods and services while aiming to make a profit.

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18
Q

Fill in the blank: All businesses have the responsibility to achieve ____________, ____________ and ____________ sustainability.

A

Economic
Social
Environmental

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19
Q

Define business operations.

A

Activities performed in the private and public sectors.

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20
Q

What are the characteristics of a successful business? (Long answer)

A
  • strong leadership
  • focuses efforts to create a competitive advantage
  • satisfies the needs and wants of the target market
  • uses the factors of production in a sustainable manner
  • is a responsible, accountable and transparent corporate citizen.
  • adds value to all stakeholders
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21
Q

What are the long term objectives that a business should have?

A
  • survival
  • profitability and growth
  • productivity and efficiency
  • creating and maintaining a competitive advantage
  • employee development and relationships
  • technological development
  • social responsibility
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22
Q

What does a business need to do to survive in a highly competitive economy?

A

It needs to be aware of external threats/opportunities and the potential impact these factors may have on it.

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23
Q

How can the ability to plan for the future help a business to survive?

A

The business should make use of long and short term planning, and formulate a vision to indicate its long term dream. The vision is then translated into a mission statement, which indicates what needs to be done in order to achieve the vision. Long and short term goals ensure that the business stays on track.

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24
Q

All business decisions should be assessed and reassessed to determine the impact on…?

A

Feasibility and survival- is the idea workable? Can it be practically implemented?

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25
Q

In order for a business to grow, it must:

A
  • Generate healthy profits through higher sales volumes and reduced expenses.
  • increase physical assets to improve manufacturing expertise and abilities.
  • develop skills and empower employees to increase productivity.
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26
Q

Define ‘productivity.’

A

The ability of the business to achieve maximum output with minimum input.

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27
Q

Define ‘efficiency.’

A

The ability of a business to satisfy customers needs and wants at the right time, price, and place.

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28
Q

How can a business improve efficiency and productivity?

A

Constant planning and allocation of resources in an optimal manner to minimise wastage, therefore improving profitability.

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29
Q

What is the competitive advantage of a business based on?

A
  • quality
  • price
  • use of tech
  • level of service
  • superior use of resources
  • location
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30
Q

Motivated and committed employees will result in?

A

Increased productivity and positivity in the workplace.

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31
Q

How can technological development help a company?

A
  • Differentiates themselves from competitors
  • Aims to reach consumer in a quick manner to foster loyalty
  • E.g, online shopping
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32
Q

What is social responsibility within a business?

A

The ability to build long term relationships in society by acting in an accountable and ethical manner where profit is not advertised to be the main driving force.

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33
Q

What are the different business environments?

A

Macro environments, Market environments, micro environments.

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34
Q

Define the Macro environment.

A

External - business has no control over it

35
Q

Define the Market environment.

A

Limited control/external - the business has influence on it

36
Q

Define the Micro environment.

A

Internal- business has full control over it

37
Q

List 8 factors making up the Macro-environment.

A
  • technology
  • some public
  • culture
  • government
  • interest rates
  • foreign competition
  • exchange rates
  • climate
38
Q

List 5 factors making up the Market-environment.

A

Suppliers
Customers
Some publics
Intermediaries
Competitors

39
Q

Fill in the blank: micro environments effect the ________ of the business.

A

Overall performance

40
Q

What are the functions that we consider the micro environment to be made up of?

A
  • General management
  • Financial
  • PR (Public relations)
  • Marketing
  • Administration
  • HR
  • Production
  • Purchasing
41
Q

Give detail on the General Management business function.

A

The general management function is made up of:

  • The vision of the business
  • The mission of the business
  • Goals
  • Objectives
  • BUsiness strategy
  • Planning
  • Organising
  • Leading
  • Control
  • Communication
  • Coordination
  • Delegating
  • Discipline
  • Motivating
  • Decision-making
42
Q

Give detail on the ‘vision of the business’ under the General Management business function.

A

The vision of the business is depicted as a road map of the future of the business. They determine and describe where the business would like to be in the future.

43
Q

Give detail on the ‘mission of the business’ under the General Management business function.

A

Refines the vision and specifies the reason why the business exists, who the business is and what the values of the business are.

44
Q

Give detail on the ‘goals’ under the General Management business function.

A

Long term plans that the business would like to achieve.

45
Q

Give detail on the ‘objectives’ under the General Management business function.

A

Short term targets to reach long term goals.

46
Q

Give detail on the ‘business strategy ’ under the General Management business function.

A

Describes the plan of action that must be implemented in order to achieve goals and objectives. It is a general program that specifies how resources will be allocated to achieve goals and objectives.

47
Q

Give detail on ‘planning ’ under the General Management business function.

A

The act of looking into the future and deciding how to tackle issues in order to achieve success. Different plans must be considered and the best one chosen. It is crucial to always have a contingency plan (AKA plan B).

48
Q

Give detail on ‘organising ’ under the General Management business function.

A

When management combines factors of production to achieve objectives of the business.

49
Q

Give detail on ‘leading ’ under the General Management business function.

A

Plans are put in place to help employees understand what they have to do to achieve business and personal goals. An effective leader will balance task orientation (getting the job done) with employee orientation (treating people with respect and dignity).

50
Q

What is task orientation?

A

Getting the job done in the workplace.

51
Q

What is employee orientation?

A

Treating people with dignity and respect in the workplace.

52
Q

Give detail on ‘control’ under the General Management business function.

A

The act of the actual results achieved being compared with the standards that were set during the planning. Management receives feedback about performance and deviations from goals - the reasons for the deviations are determined and rectified.

53
Q

Give detail on ‘communication’ under the General Management business function.

A

All departments are informed about what is expected of them to achieve synergy between work schedules of various departments.

54
Q

Give detail on the ‘decision-making ’ under the General Management business function.

A

Takes place in order to solve problems.
Before a decision is taken, all possible and relevant facts must be considered and at the relevant facts must be considered and at the same time no preconceived ideas or personal prejudice should influence the decision.

55
Q

Give detail on ‘delegating ’ under the General Management business function.

A

To delegate means to meaningfully distribute work to reduce the burden on management, by allocating duties, authority and responsibilities to the employees. It is important to empowers the employees to ensure they feel capable of the task. At the end of the task, the manager is still required to ensure that it is done.

56
Q

Give detail on ‘discipline ’ under the General Management business function.

A

Discipline happens in order to improve future behaviour. It must be fair and all employees must know what the consequences of their actions will be. (E.g, misconduct.)
Offenders must be given a fair hearing (procedural fairness).

57
Q

Give detail on ‘motivating ’ under the General Management business function.

A

The act of encouraging employees to perform to the best of their abilities. Can be done through monetary appreciation, promotions, etc.

58
Q

Give detail on the purchasing (AKA procurement) business function.

A

This function ensures that the business has the necessary resources needed to attain its objectives. THey buy the goods and services needed by other departments, bought from different suppliers.
They ensure that the resources are:
- The correct resources
- Bought at the right price
- In the correct quantity
- Delivered at the right place
- At the required time
- From the right supplier.

59
Q

Give detail on the production business function.

A

Combines the factors of production to make a product that satisfies the wants/needs of the target market. Important to keep input low and output high. The production method should be decided, between:
- mass production
- batch production
- jobbing

This function ensures that the product is the best it can possibly be, by making sure that it is:
- safe
- reliable
- durable
- with good after sales services

60
Q

What are the 4 P’s?

A

Product
Price
Place
Promotion

61
Q

Give detail on the marketing business function.

A
  • Performs market research in order to determine what is in demand, how much it should cost, where to sell it and the best way to communicate with the target market.
  • Different techniques are used to grow market share, e.g, advertisements. Sales promotion, monitoring feedback from customers, etc.
  • Exists to determine how to create the best possible product based off of current trends, target market etc
62
Q

What is LSM and what does it stand for?

A

LIving standard measurement - a system used to show the standard of living in a household.

63
Q

List some of the general tasks of the marketing function.

A
  • deciding what product must be sold
  • deciding on appropriate packaging
  • deciding on the best distribution channel
  • deciding / implementing pricing strategies
64
Q

What are creditors?

A

Suppliers that stock was bought from on credit.

65
Q

Why is capital in a business important?

A

Not only is it the money required to start a business, it includes capital goods such as machines, equipment and labour.

66
Q

What is fixed capital?

A

Long term capital that will be used to buy fixed assets such as land and buildings.

67
Q

What is working capital?

A

Short term capital used to purchase trading stock/inventory, to pay creditors and other business expenses such as salaries and rent.

68
Q

What is data?

A

Unprocessed information.

69
Q

What is information?

A

Processed data.

70
Q

What can an entrepreneur do if they do not have sufficient capital to start a business?

A

They can borrow from the bank, and pay it back with interest.

71
Q

How does one determine how much capital is needed to start a business?

A

Start up costs (Buying machines and raw materials) and running costs (salaries and rent etc) will be calculated and compared to how long it will take the business to start making a profit.

72
Q

Budgets are used to..?

A

Plan and monitor the financial situation and to ensure that the business does not overspend.

73
Q

Provide detail on the ‘administration’ business function.

A
  • Responsible for collecting and processing data in order to turn it into meaningful, accurate and easily accessible information and storing it in a format that is easy to understand.
74
Q

Provide detail on the ‘resources/human capital’ business function.

A
  • Responsible for the manpower of the business, e.g. dermines how many workers and what levels of skills are required.
  • Recruits employees and trains them
  • Responsible for creating fair and ethical remuneration and retention of employees and monitor the performances of employees.
75
Q

Provide detail on the ‘public relations ’ business function.

A
  • Ensures the image of the business is strong and positive
  • Ensures that the business is contributing to society in an ethical and sustainable manner
  • Works to improve the relationship between the business and stakeholders, internally and externally
76
Q

What is the SA minimum wage?

A

R23,41/hour

77
Q

White collar = ?
Blue collar = ?

A

Corporate
Tradesmen

78
Q

What is a stakeholder?

A

Anyone who has direct interest in the business.

79
Q

Provide detail on the ‘risk management’ business function.

A
  • Aims to identify and monitor the risks that the business is exposed to
  • Puts risk strategies in place in order to minimise challenges
  • All functions have risk management strategies to minimise the risks in each function
80
Q

Provide detail on the ‘management information systems (MIS)’ business function.

A

Ensures that the necessary technology is available where and when needed across all functions.

81
Q

Why are business policies formulated?

A

To keep in line with the business’s vision, mission, goals and objectives

82
Q

What is the purpose of business policies?

A

To direct to the different functions and create a framework in which the functions can work.

83
Q

What does the term ‘business culture’ refer to?

A

Refers to the beliefs and values of the business. It helps direct the behaviour and attitudes of the internal stakeholders (managers and employees) of the business. A positive business culture leads to teamwork, synergy and buy-in of decisions taken by management.

84
Q

What is ‘organisational structure’ within a business?

A

This term refers to the way in which human resources, authority and responsibility and distribution of information have been arranged to work together to form a systematic whole and achieve the business goals. A clear structure helps internal stakeholders to understand their roles and the way in which information is communicated to them and to whom they have to report to.

Grade 10 business @ Cedar House (8 decks)

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