Topic 1 - Components Of The Micro Environment Flashcards
Meaning of the Micro environment
Includes everything inside the business.
All the business internal affairs are managed by directors and owners.
Has full / complete control on the business.
3 business environments
Micro
Market
Macro
2 external factors that influence the Micro environment
Market environment and macro environment
Components of the Micro environment
Organisational Structure.
Organisational Culture
Organisational Resources
Vision
Describes long term goal. Where the business sees itself in the future.
Mission statement
What the business provides or produces and why the business exists. Explains the aims and values of the business.
Goals
Long term plans business wants to accomplish. They serve as guidelines help the business achieve what they set out to do
Objectives
How goals will be achieved. Short term steps that guide the business owner on how their set goals can be achieved.
Organisational Culture
How things are done in the business. Also includes beliefs, values, norms and standards shared among the employees and management.
Purpose of Organisational culture
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.
Organisational resources
Resources that a business enterprise uses to make sure it operates efficiently.
. Human resources
. Physical Resources
. Financial resources
. Technological resources
Physical Resources
Tangible items used in the operation of the business.
E.g Raw materials
Vehicles
Human resources
Set of people who make up the workforce of the business
Technological resources
Intangible resources software license and patents . Can help improve the performance of an organsation.
Management
Process whereby an individual or individuals guide the organisation to achieve its goals and objectives.
Leadership
Ability of an individual to inspire, influence or motivate their subordinates to achieve goals and objectives of the business
Organisational Structure
Shows the different departments organisation and how they are organised. Also known ans Oranogram
Oranogram
Shows the level of authority, responsibility and tasks of the various business departments.
Shows hierarchical structure of the business
Organisational Structure includes
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.
Eight business functions
All important components of the business. In large these business may operate as separate departments but in smaller some of them might be combined
Eight business functions are ?
General management
Purchasing
Production
Marketing
Public relations
Human resources
Administration
Financial
General management
Coordinates the other business functions to achieve goals and objectives.
Function of the general management
Plans, organises, leads and controls the resources in the business
Purchasing function
Responsible for buying all the resources that the business needs in order to produce its goods and services
Production function
Responsible for changing raw materials into semi finished products. It ensures that business creates quality products to meet the demands of the target market
Marketing function
Undertakes market research to determine real needs of the target market. Responsible for advertising goods and services to customers
Human resources
Attracting new employees into the business.
Manage all the people in the business by providing education and training to employees
Administration function
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
Financial function
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
