Micro Environment Components

Question 1

Vision

Answer 1

A statement that explains what a business aims to achieve (its long-term aspiration).

Question 2

Mission

Answer 2

A statement that explains the reason for the business’s existence (its fundamental purpose).

Question 3

Goals

Answer 3

Goals are long-term objectives.

Question 4

Objectives

Answer 4

Short-term tasks/steps that need to be achieved for the business to reach its goals.

Question 5

Strategy

Answer 5

Strategy is the plan of action taken by top management to achieve the vision, mission, and objectives.

Question 6

Organisational Resources

Answer 6

Assets the business uses to produce goods/services and achieve its goals.

Question 7

Human Resources

Answer 7

The people/labour a business needs to operate.

Question 8

Natural Resources

Answer 8

Raw material or resources provided by nature.

Question 9

Physical Resources

Answer 9

Machinery, equipment, buildings, and vehicles.

Question 10

Financial/Capital Resources

Answer 10

Money needed to run a business.

Question 11

Technological Resources

Answer 11

The technology used to produce goods and services.

Question 12

Entrepreneurial Resources

Answer 12

The skill, ideas, and knowledge of the owner.

Question 13

Leadership

Answer 13

Leadership is the process of inspiring, influencing, and guiding people.

Question 14

Management

Answer 14

Management is the process of achieving business goals through planning, organising, leading, and controlling.

Question 15

Business Function

Answer 15

The eight functions that work together to achieve the business goal (e.g., General management, Marketing, Production).

Question 16

Organisational Structure

Answer 16

Shows each person’s task, level of authority, responsibility, and the flow of instruction and feedback.

Question 17

Organisational Culture

Answer 17

The personality of the business based on shared values, beliefs, and purposes.