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Bussines CHAPTER 4-7 > Chapter 6 : Business functions > Flashcards

Chapter 6 : Business functions Flashcards

1
Q

Name the 3 enviroments of a business

A

Micro environment
Market environment
Macro enivroment

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2
Q

Explain the micro environment

A

The micro environment is the business itself and they can control this environment

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3
Q

Explain the market environment

A

The market environment is the outside of our business such as competitors ,suppliers ,media and NGO’s

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4
Q

Explain the macro environment

A

The PESTILE elements

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5
Q

What does PESTILE

A

Political
Economical
Social
Technology
Legal
Eniviroments + Ethical

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6
Q

Explain the P in PESTLEE

A

Political = government and taxes

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7
Q

Explain the E in PESTLEE

A

Economical =The economy

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8
Q

Explain the S in PESTLEE

A

Social = crime ,AIDS

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9
Q

Explain the T in PESTLEE

A

Technology = Automation

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10
Q

Explain the L in PESTLEE

A

Legal= acts and laws

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11
Q

Name the 5 Elements in the market environment that impact the business

A

Competitors
Consumers
Suppliers
Substitute goods
New competitors

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12
Q

Explain the EE in PESTLEE

A

Environmental =fire ,tornadoes ,tsunamis
Ethical= peoples values in community /country

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12
Q

Name the 8 business functions

A

Purchasing function
Production function
Financial function
Human capital function
Marketing function
Public Relations function
Administration Function
General Management function

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13
Q

True or false
General mangement is the top management

A

TRUE

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14
Q

Explain the reasons why the Purchasing function is so important in a business

A

The Purchasing function is important in business because it buys goods and services that are
required by all the functions within the business, for example, products purchased for the
business’s own use; products that are purchased so that they can be re-sold and products
that are purchased with the aim of processing them to manufacture other products

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15
Q

The 3 types of purchases that take place in the purchasing fuction

A
  1. products purchased for the business’s own use 2. products that are purchased so that they can be re-sold
  2. products that are purchased with the aim of processing them to manufacture other products
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16
Q

Who does the purchasing function work closely with

A

Suppliers which they usally have a good relationship with

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17
Q

What are the things that the purchasing function looks for in a supplier

A

The required product/service of the
correct quantity and correct quality at the
required place and the correct time and at the best price

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18
Q

Discuss risk management in the Purchasing function.

A

Risk management functions to ensure that the purchasing procedures are carried out correctly
and that the proper follow up apropos orders, delivery, quality control occur and that
consistent and reliable suppliers guarantee sufficient quality stock as required.

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18
Q

What is the aim of the purchasing function?

A

To make the best possible profit by negociating the lowest possible price without compromising the quality of the products

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19
Q

Explain quanity control

A

To ensure that no products have been damaged and that the right quanity as per original order has been delivered

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20
Q

TRUE OR FALSE
the purchasing function must always have a contingency plan in place for when supplier is unable to deliver

A

TRUE

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21
Q

What is a contigurecy plan

A

A back up plan for if something goes wrong for example if their is loadshedding a contigurecy plan would be a generator

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22
Q

name a few things that risk management does in the Production function

A

 Maintaining low manufacturing costs without compromising quality
 Production of the correct quantities, time, place and price to suit the consumer
 Regular consultation between production function and Marketing function to obviate
dated designs and to keep abreast of consumer demands
 Maintaining up to date technology to speed up production and save costs.
 A contingency plan is in place in the event of unforeseen circumstances which might
affect the business adversely

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23
Q

What do you call the production function of a service business

A

Their is no production function in a service nussines but instead a operations function where they offer services

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24
Q

TRUE or FALSE
Their is a production function in a service business

A

FALSE

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25
Q

What are disadvantages of machinary?

A

machinary is expensive and jobs are lost due to machines

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26
Q

How does automation help in production

A

It saves time and money

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27
Q

Advantages of machinary

A

machines dont get sick or take leave

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28
Q

Explain the reasons why the Production function is important in a business.

A

Although not all businesses make use of this function, the Production function, nevertheless, is important because its aim is to create value by changing raw materials into a form that will satisfy customers’ needs and wants. This means that the Production function is where the factors of production (natural resources, labour, capital and entrepreneurship) all work together in order to produce goods and services

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29
Q

Name 2 effects of Automation

A

increases unemployment rate and decreases living standard

30
Q

Liquidity

A

cash flow

30
Q

less Assets < than Liabilities

A

insolvency

31
Q

The amount that is added to the cost price to calculate the selling price

A

markup

32
Q

The money used by the owner to start a business

A

capital

33
Q

The Statement of Comprehensive income

A

Income statement

34
Q

The Statement of Financial Position

A

Balance sheet

35
Q

More assets >than Liabilities

A

solvent

36
Q

What are the 4 main goals of the finiancial function

A

To obtain maximum profit
To increase profitablity
To increase liquidity
To be solvent

37
Q

Explain why the financial function plays an important role in a business.

A

The financial function is important because apart from developing all budgets within the
business, it aims to ensure maximum profits, increase profitability, safeguard liquidity and
maintain solvency.

38
Q

What is necessary to start a business

A

Capital

39
Q

What are the types of capital

A

Borrowed capital or own capital

40
Q

Two important statements in the financial function

A

Income statement and balance sheet

41
Q

What are the 4 factors of production and their renumeraton

A

Labour - Salaries and wages
Capital -interset
Entrepreneurship - profit
Natural resources - rent

42
Q

Who does the human capital/ Human resources work closely with

A

Employees of the business

43
Q

Name 4 responabilites that the Human Capital is responsible for ?

A

1.Determing the number of workers and the types of skills required in the business
2. Workers need to be recruited for the available posts and the most suitable candidates need to be identified through a selection process
3. After interviews have been the most suitable candidates are appointed
4. Train staff memebers in order to increase productivity
5. Employees have to be motivated in order to ensure higher productivity

44
Q

What are additional legislations that HR has to accomplish/ follow

A

The Labour Relations Act
The basic Conditions of Employement Act
The skills development act
Broad based black economic empowerment
The occupational health and safety act

45
Q

What are 3 risk management factor the Human Capital has to deal with

A
  1. Careful recruitment and selection needs to be done to try and ensure that the right candidates is chosen for position and business vision
    2.Good relationships need to be established with trade unions to ensure a happy and productive workforce
  2. Negotiating the best renumeration for both business and employee to avoid strikes
46
Q

Why is the human capital department important in a buisness

A

The Human capital department is important because it is responsible for putting programmes in place to ensure that workers are happy and motivated, otherwise the business’s productivity and profitability could suffer.

47
Q

What are the 4 marketing policy Ps

A

Product policy
Price policy
Place/Distrbution policy
Promotion policy

48
Q

What are 4 things of the marketing communication system

A

Advertising
sales promotion
personal selling
publicity

49
Q

name any 3 function of the marketing function

A
  1. identify the target market by looking at aspects such as age , income,gender, occupation,and hobby
    2.Deterimine which products are in demand ,what price the consumer is willing to pay ,where the product should be sold and what method of communication should be use to reach the target market .
  2. Creating a successful trademark and to continuously remind customers about the brand to ensure loyalty to brand
50
Q

What are 3 risk management factors faced in marketing

A
  1. without clear communication with target market business will not be aware of its customers needs or terget market wont be aware of the businesses products
    2 . its important to stay within the marketing budget
  2. Competitors marketing campaigns must be monitored to ensure business maintains a competitive advantage
51
Q

What does the public relations function work hand in hand with ?

A

The businesses image

52
Q

What is the aim/goal of Public Relations function

A

The primary goal of the Public Relations department is to create and maintain a favourable image of the business with stakeholders.

53
Q

What are issues that the public relations department deal with

A

Bad publicity ,following a crisis
A positive situation e.g launch of new product

54
Q

What are the risk management factors faced in the Public Relations department

A

1.The Public Relations function must protect the business, by overseeing business practices to avert unethical actions.
2.Make sure businesses reputation is not tainted under any condititions\

55
Q

What is the administrative function responsible for ?

A

They are responsible for the collection of all data within the business and it’s enviroment .They also deal with the record keeping and paperwork in a buisness

56
Q

What is another name for the adminstration function

A

The information management function

57
Q

What is data ?

A

Raw information

58
Q

what is information

A

processes data

59
Q

name 3 risk management factors in the Adminstration function

A
  1. Keeping up to date with all adminstartive records ensuring that business complies with legislation(SARS) .
    2.Customers details must be kept in department and not leaked/lost or it breaks their rights (POPI Act)
60
Q

What does CCDDDM stand for

A

Co-ordinate
Communication
Delagating
Discinplinary
Decision making
Motivate

60
Q

What does POLC stand for

A

Plan ,Organise , Lead and Control

61
Q

What is the POPI ACT

A

Protection of Personal Information

62
Q

What are the additional task done by General magement

A

CCDDDM

63
Q

What are the tasks of the General magement Function

A

POLC

64
Q

What are the four types of leadership styles

A

Autocratic
Democratic
Situational
Laissez- faire

65
Q

Why is the General mangement important in buisness

A

The General Management function is important because it is the planning, decision-making,
organising and controlling hub of a business and communicates with employees, oversees
disciplinary action and delegates task to subordinates.

66
Q

What are the risk management factors in a business

A

The General Management function is important because it is the planning, decision-making,
organising and controlling hub of a business and communicates with employees, oversees
disciplinary action and delegates task to subordinates.
2.General mangers must abide by all laws and be ethical too

67
Q

The process where actual results are compared with what was planned during the planning
process is known as

A

report backs

68
Q

A factor over which management has no control

A

Economic climate

69
Q

If the business does research to find out about the demand for a product, this is referred to as…

A

market research

70
Q

When there are favourable reports in the media that the business did not have to pay for, this is
known as

A

Good Publicity

71
Q

A design that the manufacturer places on a product to inform the purchaser who made the
product is known as the

A

A logo

72
Q

The … buys goods from the manufacturer and sells these to the final user

A

retailer

Bussines CHAPTER 4-7 (5 decks)

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