Micro Environment Flashcards
What is the Micro environment?
Everything inside the business. Business has full control over it’s environment.
State 4 components of the Micro environment.
- Vision, mission statement, goals.
- Organisational resources
- Organisational culture
- Management and leadership
What is Mission statement?
Describes what the business provides, produces or why it exists.
What is Vision?
Describes it’s long-term goal.
What are Goals?
Serves as guidelines to help business achieve goals.
What are Objectives?
Describes how goals will be achieved.
What is Organisational culture?
How things are done in the business.
What is Organisational resources?
Human, Physical, Financial and Technological resources
What is Management?
Process whereby an individual guide and directs the organisation to achieve it’s goals.
What is Leadership?
Ability of an individual to inspire, influence or motivate their subordinates to achieve the goals and objectives of the business.
What is Organisational structure?
Shows different departments in organisation and how they are organised. Known as Organogram.
Name the 8 business functions.
- General Management
- Purchasing
- Production
- Marketing
- Public Relations
- Human Resources
- Administration
- Financial
Explain General Management.
- Plans, organises, leads and controls resources.
- Coordinates other business functions.
Explain Purchasing function.
Responsible for buying all resources that the business needs.
Explain Production function.
- Responsible for changing raw materials into finished or semi-finished products.
- Ensures that business creates quality products.
Explain Marketing function.
- Undertakes market research to determine needs of target market.
- Responsible for promotion of goods and services.
Explain Public Relations function.
- Responsible for creating a good public image of business.
- Ensures there is proper communication between business and shareholders.
Explain Human Resources function.
- Responsible for attracting new employees.
- Provides education and training for employees.
Explain Administration function.
- Responsible for collecting, processing and storing all data and info.
- Must be up to date with latest technology.
Explain Financial function.
- Determine all financial needs of business.
- Manages all funds and financial assets.
Explain the purpose of the Organisational culture.
- Helps business retain employees and clients.
- Defines internal and external identity and core values.
- Breaks down boundaries between teams, guides decision-making and improves productivity.
Outline the Human resources function from organisational resources.
- Set of people who make up workforce.
- Employees are needed for day to day operations.
Outline the Physical resources from the organisational resources.
- Tangible items that are used in operation of business.
- Raw materials, building machinery and vehicles
Outline the Financial resources from the organisational resources.
- Capital that business owns or has borrowed.
- All funds available to business
