Micro environment chap.1

Meaning of micro environment

The microenvironment is where businesses have full control of the business since all its controls are within the business. The microenvironment is also the decision-making environment because management makes decisions that help the business to achieve its goals.

Components

Vision is the statement that explains what the business aims to achieve. Visions give businesses a clear idea of what they want to achieve.

A mission statement is a statement that explains the business’s existence. Mission statements describes the purpose and basic activities of the business.

Goals are long term objectives of how the business wants to achieve. Goals give businesses a sense of direction.

Objectives are short term tasks/steps to reach goals. Objectives have deadlines.

Strategies are a plan of action taken by top management to achieve their vision.

Purpose of organisational culture

The purpose of organisational culture influences people’s actions and attitudes, it is a shared understanding of how things operate in the business. Organisational culture is also the personality of the business.

Examples of business culture are business dress code, the way managers are addressed and the working environment of the business.

A business organogram is the hierarchy that shows the position of management, the departments and its employees, it shows who reports to whom and which departments fall under which managers.

Factors that influence the organisational structure is the size of the company, technology, strategic goals of the company and resources.

Types of organisational structures

Functional- employees get instructions from more than one manager.

Project- structured around project teams, temporary structure .

Matrix- the project would be passed on to the next team, which will be finishing up the project.

Line- employees report to only one person.

Line and staff- experts act as advisors to top and middle management.