Micro Environment
What does an organogram show?
Shows the level of authority, responsibility and tasks of the various departments in the business.
or
An organogram shows the hierarchical structure of the business.
What is the meaning of the public relations function:
The public relations function is responsible for keeping all stakeholders of the business happy. It ensures that there is good communication between the business and all its stakeholders.
Define the term strategic alliance
Businesses that join their resources together to undertake a project that will benefit all the members in the alliance.
How much control does a business have over the macro environment?
None
Define the term quality management
The act of overseeing all activities and tasks needed to maintain a desired level of excellence
List the four types of organizational resources
Human resources, physical resources, technological resources and financial resources
List any four sources of funding
Any four of the following:
1) Bank Loan
2) Bank Overdraft
3) Receivable Finance
4) Asset-Based Loans
5) Angel Funding
6) Venture Capital
7) Grants
What is the meaning of a threat?
•Threats are any factors in the external environment that will stand in the way or is already standing in the way of businesses achieving their goals.
•Businesses have a challenge of constantly identifying threats in the external environment and devising strategies to turn them into opportunities otherwise they will not be successful
Define the term " Technological environment"
Refers to development in the field of technology with new and innovative knowledge, new inventions, and other improvements in techniques that affect businesses
Why is quality important to a business. List two reasons.
Any two of the following
•Good reputation & brand awareness
•Increased sales (and profit) which attracts investors
•Gains goodwill and suppourt
What are the six components of the micro environment?
•Vision, mission statement, goals and objectives
•Organisational culture
•Organisational resources
•Management and leadership
•Organisational structure
•Eight business functions.
List any three rights outlined in the National Credit Act
Any three of the following:
Consumers have a right to:
• apply for credit
• receive information in their official language
• be protected from unfair discrimination in granting credit
• be given reasons why a credit application is refused
• be informed about the interest rate and any other costs of the proposed credit transaction
• receive a copy of a credit contract and a replacement copy when the consumer asks for one
• apply for debt counselling if a customer has too much debt.
List any three " Other organisations" that form part of the market environment
Any three of the following
•CBOs
•NGOs
•Regulators
•Strategic Allies
•Unions
Give three reasons why the macro environment poses a threat to businesses
1) No Control
2) Constantly Changing
3) Interrelatedness of business environments
List any three methods a business can use to inidcate quality
Any three of the following
• Trademarks: brand names, a slogan, or a logo used by manufacturers.
• Samples: a small sample product intended to show the customers how thereal product will look.
• Grades: a particular level that is used to rank the quality of the product.
• Commercial Standards: the South African Bureau of Standards (SABS)approves commercial standards of products (The SABS Certification Mark acts as a third-party guarantee of a product's quality, safety, and reliability, assuring consumers that the product conforms to specifications)
What are the eight business functions
Admin, finance, purchasing, production, marketing, public relations, human resources and general management
List two differences between management & Leadership
Any two of the following
A leader creates a vision/sets direction. vs A manager understands the goals of the business.
• Leaders create the team and inspire the subordinates. vs Managers ensure that tasks given to subordinates are completed.
• He/she influences human behaviour. vs He/she guides human behaviour.
• A leader communicates using vision/ charisma. vs A manager communicates through management functions, for example, line function.
• Leaders are born with natural/ instinctive leadership skills. vs A person becomes a manager because he/she is appointed to the position
List any four components of the market environment
Any four of the following:
•Suppliers
•Consumers
•Intermediaries
•Competitors
•Other Organisations & Civil Societies
List four examples of challenges that are faced in the economic environment
Any four of the following
1) Inflation/Petrol Price
2) Exchange Rate
3) Interest Rate
4) Conditions of Credit
5) Economic Growth
Give two differences between quality control and quality assurance
• Inspection of the final product to ensure that it meets the required standards. vs Inspection is carried out during and after the production process to ensure required standards are met at every stage of the process.
• Includes setting targets/measuring performance and taking corrective measures vs Ensures that every process is aimed at getting the product right the first time and prevents mistakes from happening again
List the five purposes of organisational structure
•Helping to ensure the smooth and efficient functioning of the business.
•Ensuring that work happens with precise co-ordination and minimum wastage of resources.
•Helping the business to work towards its goals.
•Show the connections between various positions and tasks in the business.
•It describes the coordination between various departments in the business.
List the five activities of the admin function:
•Management of Information
•Handling Information
•Office Practice
•Collection of Information
•IT
What are porter's five forces?
1)Threat of New Entrants
2) Threat of Substitutes
3) Bargaining Power of Suppliers
4) Bargaining Power of Buyers
5) Competition (Rivalry)
What are the six components that make up the macro environment?
Political
Economic
Social
Technological
Legal
Environment
List any five quality indicators of the marketing environment
Any five of the following:
•Differentiate products to attract more customers by giving real value to the product on offer.
•Market share should be increased by satisfying customers’ needs and wants.
•Effective communication with customers should be fostered to get clear feedback with regards to products/services.
•Values in which businesses operate should constantly be reviewed.
•Effective pricing techniques/strategies should be used to ensure that the company gets a competitive advantage over competitors.
•Aggressive advertising campaigns.