What is micro environment?
-The internal environment of businesses
-Businesses have full control over what happens in this environment
What are the functions of the microenvironment?
-General Management function
-Purchasing function
Production function
-Marketing function
-Financial function
-Administration function
-Human Capital function
-Public relations function
Purchasing Function
-Ensures the business has the necessary resources to attain its objectives
-Buys all the goods & services that will be used within the business
-Buys and services are bought from the supplier
Production Function
-Combines the factors of production to make a product that will satisfy the needs and wants of customers
-Input needs to be kept as low as possible without sacrificing the quality of the output
Manufactured products should be?
-Safe
-Reliable
-Durable
Marketing Function
Conducts market research such as:
-What product/service is in demand
-What price people are willing to pay
-Where the product must be sold
-What is the best method to communicate with the target market
How can target markets be differentiated
-Age
-Hobbies
-Disposable income
-Gender
-Occupation
How can the marketing function grow its market share?
-Advertising
-Sales promotions
-Personal selling
-Listening to customers
-Responding to feedback
FInancial Function
-Responsible for budgeting
-Determines capital needed for the business (Start-up costs and running costs)
Administration Function
-Collects data; processes it into meaningful info; keeps it easy to understand
-Ensures the information is available when it’s needed
Human Capital Function
-Responsible for the manpower of a business
-Determines the skills needed in a business
-Determines how many workers are needed and when they’re needed
-Maintain the performance of employees
What are the laws that the Human Capital Function needs to keep up with?
-Labour relations acts
-Basic conditions of employment
-Broad-Based Black Economic Empowerment
-Skills development act
Public Relations functions
-Ensures the business’s image is positive
-Ensures business is contributing to society in a sustainable and ethical manner
-Improves the relationship between the business and stakeholders
What are business policies?
-Directions that are given to the different functions
-They help the lower and middle management with day-to-day decision-making while considering:
-Vision
-Mission
-Goals
-Objectives
What are organizational structures?
The way:
(-Human resources, Authority, Responsibilities, Distribution of information)
Are all arranged to ensure all components work together to form a systematic whole and to achieve the goals of the business
