Term 1 - Micro Environment Flashcards
2 words to describe how staff and management work together and make decisions
Organisational
Culture
What can be seen as ORGANISATIONAL RESOURCES?
- Physical
- Human
- Financial
- Technological
Give one word which describes a person in charges who inspires people and sets goals
Leader
What does an ORGANISATION STRUCTURE consist of?
- 8 business functions
Provide ONE WORD which explains the following:
How the business is run using processes and controls to achieve the goals of the business (maximum output for a minimum input)
Management
The 8 business functions forms part of the MICRO or MACRO environment?
Micro
Name the 8 business functions
1) Purchasing
2) Production
3) Marketing
4) Finance
5) General management
6) Public Relations
7) Human Resources
8) Administration
REMEMBER:
Fun And Games Have Made
Production Pure Pleasure :)
The 4 business functions relating to investments, purchasing materials and producing and selling the final PRODUCT
1) Purchasing
2) Production
3) Marketing
4) Finance
The 4 business functions relating to managing the business and dealing with PEOPLE
1) General Management
2) Public Relations
3) Human Resources
4) Administration
Explain the business function PURCHASING
Buy raw materials,
source best prices,
receive orders and
manage stock
Explain the business function PRODUCTION
Turn raw materials into finished products,
ensure production of quality goods
Explain the business function MARKETING
Price, distribute and marketing the goods,
through advertising
Explain the business function FINANCE
Provide and use capital (money);
control cash flow,
prepare financial statements
Explain the business function GENERAL MANAGEMENT
Manage all functions
Set goals
Lead
Motivate
Explain the business function PUBLIC RELATIONS
Create a good relationship with the public and staff
Deal with social, political and environmental
issues
Explain the business function HUMAN RESOURCES
Recruit employees
Develop skills and training
Deal with all issues, example pension, medical
aid (anything linked to the staff)
Explain the business function ADMINISTRATION
Paperwork and filing
Put processes and procedures in place
What are the 3 levels of management
TOP
Middle
LOWER
Explain TOP LEVEL MANAGEMENT
Make STRATEGIC decisions to vision and goals
Explain MIDDLE LEVEL MANAGEMENT
Make TACTICAL decisions (ensuring procedures are carried out)
Explain LOWER LEVEL MANAGEMENT
Make OPERATIONAL decisions (carry out the decisions made by the higher management levels)
Name the 6 MANAGEMENT FUNCTIONS
1) Planning (what must be done)
2) Organising (how it must be done)
3) Activating (train staff in what must be done)
4) Leading (allocating tasks)
5) Directing (make sure all followed correctly)
6) Controlling (solve problems, evaluate results)
What business size is a sole trader?
Small, Medium or large?
Name a few characteristics of this business size
SMALL
- One person performs almost everything
- Control by the owner is tight
- Quality can be compromised if no specialist skills
are used
What business size are partnerships and close corporations?
Small, Medium or large?
Name a few characteristics of this business size
MEDIUM
- Functions are shared
- Some functions are outsourced
- People with multiple functions could neglect some
functions they are not as good at
What business size is a Private and Public companies?
Small, Medium or large?
Name a few characteristics of this business size
LARGE
- One person heads each function
- lack of communication can cause problems
Correlation between business MANAGEMENT and business SUCCESS - If all managed properly the end goal will be ……
Good quality of production => successful business
A successful business relies on the following ……
- Good DECISION making / problem solving
- Good SYSTEMS and processes
- Good COMMUNICATION
- Dealing of PROBLEMS timeously
