Business Studies Grade 10: Components of Micro-Environment

Flashcards covering the definition, components, resources, and management structures of the business micro-environment based on Grade 10 Business Studies notes.

What is the meaning of the micro-environment?

The environment within which a business operates, consisting of the business itself and all internal factors over which the business has full/complete control.

What are the components/features of the micro-environment?

Vision, mission statement, goals and objectives; organisational resources; leadership and management; eight business functions; organisational structure; and organisational culture.

What does the 'Vision' of a business represent?

A statement explaining what a business aims to achieve in the long-term, often described as the 'dream' of the business that answers the question: 'where are going from here?'

What is a 'Mission statement'?

A statement that explains the reason for the business existence, its basic activities, and what it does to achieve its vision.

How are 'Goals' defined in the micro-environment?

Long-term objectives that break down business objectives into specific and measurable statements, such as 'Increase profit margin by $50\%$ in $2020$'.

What are 'Objectives'?

Short-term tasks or steps with deadlines that explain how the goals of the business will be reached.

What is 'Organisational culture'?

The way things are done in the business, including values, beliefs, norms, dress code, and administration policies shared among employees and management.

What is the purpose of organisational culture?

To define the business' internal and external identity, core values, help retain employees and clients, and improve productivity.

What four groups of organisational resources are controlled by management?

Physical resources, Financial resources, Human resources, and Information & Technological resources.

How are 'Natural resources' defined?

Assets from nature used to offer services and products, such as minerals, water, and wood.

What are 'Physical resources'?

Raw materials, office furniture, equipment, machinery, and plant necessary to operate the business successfully.

What does 'Financial/Capital resources' refer to?

Money invested in the business to acquire production goods (land, buildings, machinery), which can be in the form of cash, bank overdrafts, or loans.

Who constitutes 'Human resources' in a business?

The people with knowledge and skills, such as employees, contractors, consultants, and managers, who keep the organization functioning.

What are 'Technological resources'?

Resources including computers, software, production technology, and internet facilities that give the business a competitive advantage.

Who are 'Entrepreneurial resources'?

The person responsible for combining the factors of production in such a way that the business will make a profit.

What is 'Management'?

The process whereby individuals guide and direct the organisation by planning, organising, leading, and controlling resources to achieve goals.

How is 'Leadership' defined?

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

What is an ‘Organogram’?

A visual representation of the organisational structure showing levels of authority, responsibility, tasks, and the hierarchy of various departments.

What are the three levels of management shown in a typical organisational organogram?

Top Level Management (e.g., CEO), Middle Level Management (e.g., Marketing, Financial, and Production Managers), and Lower Level Management (e.g., Sales officer, Team Leader).