Chapter 2- The Business Environment Flashcards
What is the systems approach?
All organizations are made up of inputs processes and outputs.
Name and explain the business environments.
- Micro environment
Consists of business functions and the way they are managed.
Inside the business - Market environment
Where the business gets its resources from and trade its products
Immediately outside the business - Macro environment
Factors that affect the business
Outside the business
Name and explain the business functions.
Operations function
- Responsible for producing products that the business sells
Logistics function
- Responsible for getting the right quality products in the right quantity at the right time and place and price as well as distributing products of the business
Financial function
- Ensure business has enough capital to run the business in the short and long term. Collect debts and pay creditors
Human resources function
- Must get the right quality of employees and look after them so they stay and help the business achieve their goals . Responsible for recruitment and training
Marketing function
- Is there to tell potential customers about the products sold by the business and to persuade them to buy products
Public relations function
- Makes sure business has a positive image among its customers and broader society
Name and explain components of the market environment
Suppliers
Intermediaries
Competitors
Customers
Name and explain the components of the market environment
Natural environment
Technological environment
Social environment
Political environment
Economic environment
International environment
What is the meaning of inflation?
The term used to describe the decrease in the value of money in relation to goods it can buy over time.
What are the ethics to consider during a SWOT analysis?
Accessibility
Privacy
Property
Accuracy
