Micro Environment

Question 1

What is the Micro environment?

Answer 1

Everything inside the business. Business has full control over it’s environment.

Question 2

State 4 components of the Micro environment.

Answer 2

• Vision, mission statement, goals.
• Organisational resources
• Organisational culture
• Management and leadership

Question 3

What is Mission statement?

Answer 3

Describes what the business provides, produces or why it exists.

Question 4

What is Vision?

Answer 4

Describes it’s long-term goal.

Question 5

What are Goals?

Answer 5

Serves as guidelines to help business achieve goals.

Question 6

What are Objectives?

Answer 6

Describes how goals will be achieved.

Question 7

What is Organisational culture?

Answer 7

How things are done in the business.

Question 8

What is Organisational resources?

Answer 8

Human, Physical, Financial and Technological resources

Question 9

What is Management?

Answer 9

Process whereby an individual guide and directs the organisation to achieve it’s goals.

Question 10

What is Leadership?

Answer 10

Ability of an individual to inspire, influence or motivate their subordinates to achieve the goals and objectives of the business.

Question 11

What is Organisational structure?

Answer 11

Shows different departments in organisation and how they are organised. Known as Organogram.

Question 12

Name the 8 business functions.

Answer 12

• General Management
• Purchasing
• Production
• Marketing
• Public Relations
• Human Resources
• Administration
• Financial

Question 13

Explain General Management.

Answer 13

• Plans, organises, leads and controls resources.
• Coordinates other business functions.

Question 14

Explain Purchasing function.

Answer 14

Responsible for buying all resources that the business needs.

Question 15

Explain Production function.

Answer 15

• Responsible for changing raw materials into finished or semi-finished products.
• Ensures that business creates quality products.

Question 16

Explain Marketing function.

Answer 16

• Undertakes market research to determine needs of target market.
• Responsible for promotion of goods and services.

Question 17

Explain Public Relations function.

Answer 17

• Responsible for creating a good public image of business.
• Ensures there is proper communication between business and shareholders.

Question 18

Explain Human Resources function.

Answer 18

• Responsible for attracting new employees.
• Provides education and training for employees.

Question 19

Explain Administration function.

Answer 19

• Responsible for collecting, processing and storing all data and info.
• Must be up to date with latest technology.

Question 20

Explain Financial function.

Answer 20

• Determine all financial needs of business.
• Manages all funds and financial assets.

Question 21

Explain the purpose of the Organisational culture.

Answer 21

• 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.

Question 22

Outline the Human resources function from organisational resources.

Answer 22

• Set of people who make up workforce.
• Employees are needed for day to day operations.

Question 23

Outline the Physical resources from the organisational resources.

Answer 23

• Tangible items that are used in operation of business.
• Raw materials, building machinery and vehicles

Question 24

Outline the Financial resources from the organisational resources.

Answer 24

• Capital that business owns or has borrowed.
• All funds available to business

Question 25

Outline the Technological resources from the organisational resources.

Answer 25

• Intangible resources such as as software licenses that help improve performance.
• Software, laptops, websites. computers.

Question 26

Give 4 purposes of the Organisational structure.

Answer 26

• Help to ensure smooth and efficient functioning of business.
• Help business work back towards goals.
• Describes coordination between various departments.
• Show connections between various positions and tasks.