Term 1 Flashcards
Components of the Micro-environment
- Vision
- Mission
- Objectives
- Goals, Strategy
- Organisational resources
- Leadership and management
- Business functions
- Organisational culture
- Organisational structure
Describe the micro-environment
Is the environment within which a business operates and consists of the nusiness itself.
The business has the most control over this environment.
Explain vision
Vision:
- is an idea of the desired aim or achievment that the business wants to achieve.
- is clear and concise.
Explain Mission
Mission:
- it explains why the business exists (its purpose)
- gives clear direction on how the business intends to achieve its vision
Explain Goals
Goals:
- long term objectives of what the business wants to achieve
- give the business a sense of direction
Explain Objectives
Objectives:
- short term steps to reach goals
- contain a deadline for achievements
- explains how the goals of the business will be reached
Explain Strategy
Strategy:
- PLAN OF ACTION
- outlines how the business will achieve its vision in line with its mission
Purpose of organisational culture
- It influences people’s actions and attitudes
- Determines how things are done
- is the “personality” of the business
- influences the way in which people in the organisation interact with each other and with the stakeholders
What influences the organisational culture of a business?
Values, beliefs and purposes
Examples of the business culture
- Business dress code
- Floor plan of the business
- Respect for other employees’ values
- The way managers are addressed
- The working environment of the business
- Norms, values and expectations
Exaplain organisational reaources
These are the assets that the business uses to produce goods or services anf to achieve its goals
List and give examples of the 4 organisational resources that are controlled by management
- Physical resources = Natural resources, vehicles, building, raw materials, machinery, infrastructure, etc.
- Financial resources = Capital, own capital, bank overdrafts, loans, etc.
- Human resources = Employees, contractors, etc.
- Information and Technological resources = Use of computers, printers, etc. for research, production, advertising, etc
Bank overdrafts = short-term (pay as you earn)
Loans = long-term
Describe human resources
- Are people with knowledge and skills such as employees, managers, etc.
- They are people needed to perform work and keep it functioning
- People who contribute towards achieving the goals of the business
Explain natural resources
