Chapter 6: Business Function Flashcards
What enviroments surround a business
Micro
Macro(dont have control over)
Market“. “. “. “)
What factors may have an impact on the business in the macro enviroment
Political factors Physical enviroment Economic Socio-economic Tech Legal Ethical issues
What elements in the market enviroment could affect the business
Competitors New competitors Comsumers Suppliers Substitute goods
What is the micro enviroment
The internal business enviroment consisting of 8 functions
What are the internal business factors
Purchasing Production PR Financial Human Capital Marketing Admin General management
Why is the purchasing function so important
It buys goods and services required by all the functions.
They develop a systyem to control stock
What are the 3 types of purchases
Businesss own use
Products to be resold
Aim of processing/manufacturing
What decides the best seller?
Product/service Quantity Quality Time Price Place
What are the risk managements in the purchasing department
Aim is to ensure best possible profit by negotiating lowest price without comprimising quality
Follow up and check on goods
Have contingency plan(back-up)
What is the productiomn function
Not all have it
Creates value(where factors of production)
Automation
Risk management in production department
Low cost Quality control Right quantities place time price Must meet with markwting for design Keep up with tech Contingency plan
What is the financial function
Capital
Statement of comprehensive income and financial position
What are th main goals of the financial function
Max profit
Increase profit
Good cash flow
Solvent more assets than liabilities
Risk management in financial function
Develop budgets Debtors(check credit) Change in interest rate(make provision) Exchange rate(monitor) Theft
Functions of HR
Labour and land factor of production Remuneration Programs No. Of workers+skill Hiring Training Keep employees The LRA and BCEA SDA BBBEE OHSA
