, TERM DEFINITION
All the internal and external factors that affect the functioning of
Business Environments
a business, e.g. micro, market and macro environments.
This environment is the business itself, it consists of all the elements
Micro environment
inside the business.
Market environment This environment exists immediately outside the business.
This environment exists outside the micro and the market
Macro environment
environments.
The amount of influence that a business has on the business
Extent of control
environments.
TOPIC 1.1: MICRO ENVIRONMENT: ELEMENTS OF THE MICRO ENVIRONMENT
Define/Explain the meaning of “MICRO ENVIRONMENT”
• Is the internal environment.
• Consists of the business itself.
• Management has complete control.
List the COMPONENTS of the micro environment
Outline / Describe/ Explain / Discuss the components of the micro environment
(see discussions later)
• Vision, mission, goals and objectives
• Organisational culture
• Organisational resources
• Management and leadership
• Organisational structure
• Eight business functions
Identify from scenario/Formulate/Evaluate the VISION, MISSION STATEMENT, GOALS &
OBJECTIVES
CONCEPT DESCRIPTION EXAMPLE
Vision The dream that the business McDonald's
wants to achieve To be the world's best quick
service restaurant
Mission Clear directives for how the McDonald's
statement business intend to achieve its To provide outstanding quality,
vision service, cleanliness and value, so
that we make every customer in
every restaurant smile
Goals Long-term plans of what the McDonald's
business wants to achieve To dominate the fast food
industry globally within the next
five years
Objectives Short-term aims that the business McDonald's
wants to meet to achieve its To employ an additional 1 000
long-term goals people by the end of the month
2
,ORGANISATIONAL CULTURE
Explain / Describe the purpose of the organizational culture
• Refer to the personality of the organization / business.
• Organizational culture consists of different beliefs / values / expectations of everyone
working in the business.
• Influence the way people in the organization interact with each other as well as with
stakeholders.
• The organizational culture influences people's actions and attitudes.
• A positive culture helps staff to be motivated and productive.
• A negative culture will discourage workers and make them feel unimportant which
may cause conflict.
TYPES OF ORGANISATIONAL RESOURCES
Outline / Name / Identify / Explain the ORGANIZATIONAL RESOURCES from given
statements/scenarios
RESOURCE DESCRIPTION
• The employees and contractors who also
work for the business
Human
resource
Staff
• The loans that businesses make as well as
“Own capital” of the owner.
Financial
resource
Capital
• Natural resources (such as raw materials /
water), machinery, vehicles, buildings and
Physical the infrastructure of the business
resource
Raw-materials /
Machinery
• Includes all the technology the business
requires for example laptops, printers,
Technological scanners, internet access, Wi-Fi, software
resource etc.
Laptops
• People who combine the resources to make
the business functional and profitable
Entrepreneurship
Owner / Manager
3
, Describe the PURPOSE / IMPORTANCE of a business ORGANISATIONAL STRUCTURE with
specific reference to an ORGANOGRAM.
• Every business must be organized in a structure.
• Each person's tasks and level of authority and responsibility must be indicated.
• The structure should indicate the flow of assignments and the feedback. The flow of
communication in the business.
• The organizational structure is also called an organogram.
MANAGEMENT AND LEADERSHIP
Explain the difference between management and leadership
MANAGEMENT LEADERSHIP
Direct human behaviour / behaviour. Influence human behaviour / behaviour.
Communicate through management Communicate through interaction /
functions, e.g. line function behaviour / vision / values / charisma.
Manage plans / programs / tasks to Encourage new ideas to increase
reach targets. productivity.
Control systems and procedures to get Inspire staff to know each other trust and
the job done. support.
A person becomes a manager because Leaders are born with natural / instinctive
he / she is appointed to the position. leadership skills.
Task orientated Humanly orientated
Management by planning / organization
Lead by example / trust / respect.
/ leadership / control
Instructional approach. Motivational / Inspiring approach
4
All the internal and external factors that affect the functioning of
Business Environments
a business, e.g. micro, market and macro environments.
This environment is the business itself, it consists of all the elements
Micro environment
inside the business.
Market environment This environment exists immediately outside the business.
This environment exists outside the micro and the market
Macro environment
environments.
The amount of influence that a business has on the business
Extent of control
environments.
TOPIC 1.1: MICRO ENVIRONMENT: ELEMENTS OF THE MICRO ENVIRONMENT
Define/Explain the meaning of “MICRO ENVIRONMENT”
• Is the internal environment.
• Consists of the business itself.
• Management has complete control.
List the COMPONENTS of the micro environment
Outline / Describe/ Explain / Discuss the components of the micro environment
(see discussions later)
• Vision, mission, goals and objectives
• Organisational culture
• Organisational resources
• Management and leadership
• Organisational structure
• Eight business functions
Identify from scenario/Formulate/Evaluate the VISION, MISSION STATEMENT, GOALS &
OBJECTIVES
CONCEPT DESCRIPTION EXAMPLE
Vision The dream that the business McDonald's
wants to achieve To be the world's best quick
service restaurant
Mission Clear directives for how the McDonald's
statement business intend to achieve its To provide outstanding quality,
vision service, cleanliness and value, so
that we make every customer in
every restaurant smile
Goals Long-term plans of what the McDonald's
business wants to achieve To dominate the fast food
industry globally within the next
five years
Objectives Short-term aims that the business McDonald's
wants to meet to achieve its To employ an additional 1 000
long-term goals people by the end of the month
2
,ORGANISATIONAL CULTURE
Explain / Describe the purpose of the organizational culture
• Refer to the personality of the organization / business.
• Organizational culture consists of different beliefs / values / expectations of everyone
working in the business.
• Influence the way people in the organization interact with each other as well as with
stakeholders.
• The organizational culture influences people's actions and attitudes.
• A positive culture helps staff to be motivated and productive.
• A negative culture will discourage workers and make them feel unimportant which
may cause conflict.
TYPES OF ORGANISATIONAL RESOURCES
Outline / Name / Identify / Explain the ORGANIZATIONAL RESOURCES from given
statements/scenarios
RESOURCE DESCRIPTION
• The employees and contractors who also
work for the business
Human
resource
Staff
• The loans that businesses make as well as
“Own capital” of the owner.
Financial
resource
Capital
• Natural resources (such as raw materials /
water), machinery, vehicles, buildings and
Physical the infrastructure of the business
resource
Raw-materials /
Machinery
• Includes all the technology the business
requires for example laptops, printers,
Technological scanners, internet access, Wi-Fi, software
resource etc.
Laptops
• People who combine the resources to make
the business functional and profitable
Entrepreneurship
Owner / Manager
3
, Describe the PURPOSE / IMPORTANCE of a business ORGANISATIONAL STRUCTURE with
specific reference to an ORGANOGRAM.
• Every business must be organized in a structure.
• Each person's tasks and level of authority and responsibility must be indicated.
• The structure should indicate the flow of assignments and the feedback. The flow of
communication in the business.
• The organizational structure is also called an organogram.
MANAGEMENT AND LEADERSHIP
Explain the difference between management and leadership
MANAGEMENT LEADERSHIP
Direct human behaviour / behaviour. Influence human behaviour / behaviour.
Communicate through management Communicate through interaction /
functions, e.g. line function behaviour / vision / values / charisma.
Manage plans / programs / tasks to Encourage new ideas to increase
reach targets. productivity.
Control systems and procedures to get Inspire staff to know each other trust and
the job done. support.
A person becomes a manager because Leaders are born with natural / instinctive
he / she is appointed to the position. leadership skills.
Task orientated Humanly orientated
Management by planning / organization
Lead by example / trust / respect.
/ leadership / control
Instructional approach. Motivational / Inspiring approach
4
