Influences on factors and challenges relating to micro environment Flashcards
What is the internal environment?
Micro
What are the 6 components of the micro environment?
- Vision, mission, goals, and objectives.
- Organisational culture.
- Organisational structure.
- Resources.
- Management.
- Eight business functions.
Describe the vision, mission, goals and objectives of a company.
Vision: reflects the dream or long term goal for the business, and should be simple and clear so that it is easily understood.
Mission: expands on the vision by explaining why the business exists and how it aims to achieve its vision by defining the key processes involved.
Goals: long term plans that the business needs to set to achieve the vision, set using the SMART principle.
Objectives: short term aims that need to be met so that long term goals can be achieved.
What is organisational culture?
It is the way things are done within the business. It is the values, expectations, and practices that guide and inform the actions and attitudes of all the team members.
What is organisational structure?
It is how the business is organised or structured and is often illustrated in an organogram. Organisational structures include the eight business functions - who the managers are and what functions (or departments) they are responsible for, who reports to them, and who they report to.
What are the 6 main task that managers need to preform.
- Plan
- Lead
- Organise
- Control
- Activate
- Direct
What are the 4 main categories of resources?
- Physical resources - raw materials, buildings, furniture, machines, and equipment
- Financial resources - capital (business owners or borrowed)
- Human resources - the employees
- Information and technological resources - computers, software, networks, books
Name the 8 main business functions.
- General management
- Administration
- Finance
- Human resources
- Purchasing
- Production
- Marketing
- Public relations
What is the difference between an open and closed business environment?
- Open: Owners, management, and staff collaborate to ensure that the business achieves its mission, vision, goals, and objectives.
- Closed (Autocratic): Decisions are made by the owner or most senior manager with little to no consultation with managers or staff.
What does it mean to be proactive?
It means actively seeking out new opportunities and/or dealing with any threats or problems before they even emerge.
What challenges can occur pertaining to the vision of the business?
- Unclear and/or poorly communicated vision.
- Influence of top management on the vision.
What challenges can occur with human resources?
- Unproductive or lazy staff.
- Staff with poor work ethic.
- Unskilled staff.
What are ways that employees can retaliate against the business?
- strikes
- go-slows
- lockouts
What is a collective agreement?
It is an agreement between employers and employees around the terms and conditions of employees in their workplace. It is the result of a process of collective bargaining between an employer and a trade union representing workers.
What is a ‘grasshopper’ strike?
- a form of strike where employees go on strike about a specific demand, return to work, then strike again about the same demand.
