Micro Environment Flashcards
What are visions and missions?
Vision - is what they want to achieve in the future
Mission- purpose and basic activities of the business
Why the business exists and how it aims to achieve its vision
What is the Micro Environment?
The smallest environment
Covers all the internal factors of the business
Staff members work in this environment
Goals and objectives?
Goals are long term aims of the business.
Objectives are the short term steps to achieving those goals. Explain how the goals will be reached.
What is organizational culture?
The personality of the business. The culture is made up of the beliefs,values, norms and expectations of everyone who works in the business.
What are the 4 organisational resources?
Physical resources - buildings/ infrastructure
Vehicles
Machinery
Natural resources
Financial resources- loans + capital
Human resources- employees/ contractors
Information and technical resources- technology/ research
What are the 4 management tasks?
Planning
Organizing
Leading
Control
What are the 8 business functions?
administration, managing, financing, purchasing, PR, production, marketing, human resources
General Management: 3 levels of management?
Top - CEOs make long term decisions about the future of the business
Middle- responsible for the different functions of the business
Lower- day to to day everyday managers responsible for small work areas
What is the administration function responsible for?
Collecting data , processing data and information, storing information
Financing: what does this function oversee
Plan how much money the business needs, find the money to start run or expand the business, manage all departments funds and investments (budgeting etc)
Using: own funds , borrowed funds
What are short and long term investments?
Short term - savings accounts
Long term- fixed deposits, debentures, property
Describe the 2 types of capital?
Fixed capital- pays for fixed assets such as land , buildings , vehicles and equipment (long -term)
Working Capital - money needed to run the business from day to day , pays for things like raw material and wages depends on size and nature of business
What does the purchasing function do?
Makes sure the business has all the necessary goods and services to run the business efficiently , right quality, right price, right quantity, right time
What does the PR function do?
Builds and maintains a good relationship with everybody who has an interest in the business eg suppliers and intermediaries
Uses: media, direct contact, exhibitions, pamphlets
Why is it important to understand these functions and how does it impact a business?
Necessary for a business to achieve its goals and objectives , they all depend on each other and are interrelated. They need to work as a team to be successful.
