Micro Environment

Question 1

Components and features of the micro environment

Answer 1

● The micro environment is the immediate environment in which a business functions and has the greatest influence on the business
● The organizational structure and resources will influence the business
● The way the business is managed and led will affect the employees and the culture of the business

Question 2

Eight Business functions

Answer 2

General management
Purchasing
Production
Marketing
Finance
Public relations
Administration
Human resources

Question 3

Function of the finance department

Answer 3

Source the funding
Plan for efficient use of finance
Audit and control spending
Allocate necessary funds to different departments
Find best investments

Question 4

General management

Answer 4

It is the umbrella function of any business. Management makes the decisions, sets the goals, and determines the vision of the business

Question 5

Purchasing

Answer 5

Responsible for buying all the raw materials machinery equipment and services for the business. It has to insure the right quantity and quality of goods and services in order for the business to operate

Question 6

Production

Answer 6

Responsible for the production of goods and services. Has to process the raw materials to ensure quality product and to ensure that enough production takes place to meet the demands of the customer

Question 7

Human resources

Answer 7

It’s to look after the employees or workers in the company. Human resources staff are responsible for recruiting the right people for their jobs. They also have to make sure that employees are happy and looked off the while they are working for the business

Question 8

Public relations

Answer 8

Responsible for keeping the customer’s supplies shareholders and anyone else involved in the business happy. It ensures that there is good communication and that these people all know about the success of the business

Question 9

Administration

Answer 9

Supports all the other business functions. Administration is responsible for collecting, processing and storing all data and information in the business

Question 10

Finance

Answer 10

Handles all the money matters of the business. Finance guides management using predictions and helps to make the best financial decisions. Look for ways to expand, renovate and deal with debts