Business Studies Grade 10 Business Environments
There are THREE components of the business environment. These are the micro, market and macro environments. The components are interrelated and can have an effect on each other.
Physical Resources: Timber, fruit, fish, factory machinery, trucks, machinery and equipment, land and buildings, computers, telephone. Financial Resources: Capital – own and borrowed Information and Technological Resources: Books, statistics, websites, emails, research articles Human resources- employees.
Vision, Mission, Goals and Objectives
Vision, Mission, Goals and Objectives Vision should be clear and concise, giving an idea of a desired image. It reflects: the dream of the business what it wants to become in the future. Goals are long term aims that the business expects to achieve, It gives the business a sense of direction. The mission will describe the purpose basic activities of the business, explain why the business exists and explain how it aims to achieve its vision Objectives explain how a goal will be reached: •Short-term steps of how to achieve goals.
Organizational culture is the personality of the organization. Culture is made up of different beliefs, values, norms and expectations of employees and management. It influences people’s actions and attitude.
Positive culture helps staff to be motivated and productive
Management and Leadership
Managers have FOUR main tasks or basic activities (Planning, Organizing, Leading and Control) All managers need to carry out these tasks for their areas of responsibility. The balance of the FOUR main tasks will differ from business to business and from one level to another
Management and Leadership
Managers tells employees what to do whereas Leaders are part of the group.
8 Functions and activities of the business
Business Function General Management Purchasing Production Financial Marketing Public Relations Human Resource Administration
General management - Manage and oversees the other seven business function by planning, organizing, leading and control, so that business goals can be achieved. Purchasing function - Buys goods and services needed by other functions. Goods and services must be bought at the right price and time, in the right quantities and of the right quality. Production function - Changes raw materials into finish products by combining raw materials with labour , capital and entrepreneurial skill Financial function Responsible for planning an managing all the funds and assets in the business as well as investments .
Marketing function – Responsible for sale of goods and services to meet needs of consumers. The right product must be sold at the right price in the right place and using the best promotion. Public relations function - Responsible for creating a positive image of the business to the public. Human resource function- Responsible for finding the correctly qualified employees as well as training, evaluating and remunerating them. Administration function - Responsible for collecting and processing information used for decision-making as well as general office work such as filing and storing of information .
In a nutshell…
The components of the business environment relate to each other and can affect each other. Components of the same environment such as the functions of the business in the micro environment can also influence each other and are interrelated.