Topic 1 - Components Of The Micro Environment

Question 1

Meaning of the Micro environment

Answer 1

Includes everything inside the business.
All the business internal affairs are managed by directors and owners.
Has full / complete control on the business.

Question 2

3 business environments

Answer 2

Micro
Market
Macro

Question 3

2 external factors that influence the Micro environment

Answer 3

Market environment and macro environment

Question 4

Components of the Micro environment

Answer 4

Organisational Structure.
Organisational Culture
Organisational Resources

Question 5

Vision

Answer 5

Describes long term goal. Where the business sees itself in the future.

Question 6

Mission statement

Answer 6

What the business provides or produces and why the business exists. Explains the aims and values of the business.

Question 7

Goals

Answer 7

Long term plans business wants to accomplish. They serve as guidelines help the business achieve what they set out to do

Question 8

Objectives

Answer 8

How goals will be achieved. Short term steps that guide the business owner on how their set goals can be achieved.

Question 9

Organisational Culture

Answer 9

How things are done in the business. Also includes beliefs, values, norms and standards shared among the employees and management.

Question 10

Purpose of Organisational culture

Answer 10

To define the business internal and external identity as well as its core values.
Has strong business culture ,Power to turn employees into ambassadors.
Helps retain its employees and clients.

Question 11

Organisational resources

Answer 11

Resources that a business enterprise uses to make sure it operates efficiently.
. Human resources
. Physical Resources
. Financial resources
. Technological resources

Question 12

Physical Resources

Answer 12

Tangible items used in the operation of the business.
E.g Raw materials
Vehicles

Question 13

Human resources

Answer 13

Set of people who make up the workforce of the business

Question 14

Technological resources

Answer 14

Intangible resources software license and patents . Can help improve the performance of an organsation.

Question 15

Management

Answer 15

Process whereby an individual or individuals guide the organisation to achieve its goals and objectives.

Question 16

Leadership

Answer 16

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

Question 17

Organisational Structure

Answer 17

Shows the different departments organisation and how they are organised. Also known ans Oranogram

Question 18

Oranogram

Answer 18

Shows the level of authority, responsibility and tasks of the various business departments.
Shows hierarchical structure of the business

Question 19

Organisational Structure includes

Answer 19

Helping the business to work towards its goals.
Shows connections between various positions and tasks in the
business.
Helps to ensure that smooth and efficient functions of the business.

Question 20

Eight business functions

Answer 20

All important components of the business. In large these business may operate as separate departments but in smaller some of them might be combined

Question 21

Eight business functions are ?

Answer 21

General management
Purchasing
Production
Marketing
Public relations
Human resources
Administration
Financial

Question 22

General management

Answer 22

Coordinates the other business functions to achieve goals and objectives.

Question 23

Function of the general management

Answer 23

Plans, organises, leads and controls the resources in the business

Question 24

Purchasing function

Answer 24

Responsible for buying all the resources that the business needs in order to produce its goods and services

Question 25

Production function

Answer 25

Responsible for changing raw materials into semi finished products. It ensures that business creates quality products to meet the demands of the target market

Question 26

Marketing function

Answer 26

Undertakes market research to determine real needs of the target market. Responsible for advertising goods and services to customers

Question 27

Human resources

Answer 27

Attracting new employees into the business.
Manage all the people in the business by providing education and training to employees

Question 28

Administration function

Answer 28

Responsibile for collecting., processing and storing all the data and info required by the business.
Has to be up to date with latest info tech

Question 29

Financial function

Answer 29

Determines all the financial need of the business.
Ensures that the business funds are used efficiently.
Manages all the funds and financial assets of the business