BSTE 112
Study Unit 2: The Micro-Environment
Lecturer: Miss Mbali Shamase | NWU | B10G32
Study Section 2.1: Components of the Micro-Environment
Learning Outcomes
• Differentiate between the different components of the micro-environment
• Identify, compile and analyse the vision, mission, goals and objectives of a business
• Discuss the components of organisational culture
• Identify the organisational resources
• Apply organisational research for acquiring organisational resources
• Define the terms 'management' and 'leadership'
The 6 Components of the Micro-Environment
The micro-environment (also called the decision-making or internal environment) consists of:
• Vision, Mission, Goals and Objectives
• Organisational Culture
• Organisational Resources
• Management and Leadership
• Organisational Structure of a Business
• Eight Functions and Activities of a Business
1. Vision, Mission, Goals and Objectives
Vision Statement: What do we want to BECOME? (future-focused, aspirational)
Mission Statement: What IS our business? (current purpose, foundation for long-term
objectives)
Long-term Objectives: The specific results an organisation seeks to achieve. These lead to
strategies.
The Hierarchy: Vision → Mission → Goal → Objective → Activities
Vision is a descriptive picture of a desired future state (long-term). The Mission explains why
the business exists and what it does to achieve the vision. Goals are desired outcomes
(intermediate, broad). Objectives are specific targets within the general goal. Activities are
the day-to-day actions.
Characteristics of a Good Vision Statement
• Must inspire stakeholders - encourage commitment and confidence
• Must be brief enough to be easily remembered
• Must be closely identified with the business
• Must indicate the future direction of the business
, SMART Criteria for Effective Goals/Objectives
Letter Meaning Key Question
S - Specific Clear and easy to understand Who, What, Where, Why?
M- Able to be quantified How will you demonstrate the
Measurable goal has been met?
A- Possible to be attained What is the action-oriented verb?
Achievable
R- Not 'pie in the sky'; tied to How does it align to objectives?
Realistic / responsibilities
Relevant
T - Time- Has a specific time period / deadline By when? Set target dates.
bound
2. Organisational Culture
Culture can be a source of competitive advantage. It is made up of shared values, beliefs,
and practices within a business.
The Cultural Web - 8 Components
• Routines - regular, everyday behaviours
• Rituals - special events or practices
• Stories - narratives shared within the organisation
• Symbols - logos, dress, office layout
• Power structures - who holds influence
• Control systems - how performance is monitored
• Company structure - the formal organisational hierarchy
• Organisational paradigm - the shared mindset / 'way we do things here'
3. Organisational Resources
Every business needs four types of resources to operate:
• Physical Resources - buildings, equipment, machinery
• Human Resources - employees and their skills
• Financial Resources - capital, cash, budgets
• Technological Resources - software, IT systems, data
4. Management and Leadership
Key Distinction
Leadership is NOT the same as management. Management has a broader scope and
includes four functions (of which leadership is one). A person can be a manager without
being a good leader.
MANAGEMENT LEADERSHIP
Study Unit 2: The Micro-Environment
Lecturer: Miss Mbali Shamase | NWU | B10G32
Study Section 2.1: Components of the Micro-Environment
Learning Outcomes
• Differentiate between the different components of the micro-environment
• Identify, compile and analyse the vision, mission, goals and objectives of a business
• Discuss the components of organisational culture
• Identify the organisational resources
• Apply organisational research for acquiring organisational resources
• Define the terms 'management' and 'leadership'
The 6 Components of the Micro-Environment
The micro-environment (also called the decision-making or internal environment) consists of:
• Vision, Mission, Goals and Objectives
• Organisational Culture
• Organisational Resources
• Management and Leadership
• Organisational Structure of a Business
• Eight Functions and Activities of a Business
1. Vision, Mission, Goals and Objectives
Vision Statement: What do we want to BECOME? (future-focused, aspirational)
Mission Statement: What IS our business? (current purpose, foundation for long-term
objectives)
Long-term Objectives: The specific results an organisation seeks to achieve. These lead to
strategies.
The Hierarchy: Vision → Mission → Goal → Objective → Activities
Vision is a descriptive picture of a desired future state (long-term). The Mission explains why
the business exists and what it does to achieve the vision. Goals are desired outcomes
(intermediate, broad). Objectives are specific targets within the general goal. Activities are
the day-to-day actions.
Characteristics of a Good Vision Statement
• Must inspire stakeholders - encourage commitment and confidence
• Must be brief enough to be easily remembered
• Must be closely identified with the business
• Must indicate the future direction of the business
, SMART Criteria for Effective Goals/Objectives
Letter Meaning Key Question
S - Specific Clear and easy to understand Who, What, Where, Why?
M- Able to be quantified How will you demonstrate the
Measurable goal has been met?
A- Possible to be attained What is the action-oriented verb?
Achievable
R- Not 'pie in the sky'; tied to How does it align to objectives?
Realistic / responsibilities
Relevant
T - Time- Has a specific time period / deadline By when? Set target dates.
bound
2. Organisational Culture
Culture can be a source of competitive advantage. It is made up of shared values, beliefs,
and practices within a business.
The Cultural Web - 8 Components
• Routines - regular, everyday behaviours
• Rituals - special events or practices
• Stories - narratives shared within the organisation
• Symbols - logos, dress, office layout
• Power structures - who holds influence
• Control systems - how performance is monitored
• Company structure - the formal organisational hierarchy
• Organisational paradigm - the shared mindset / 'way we do things here'
3. Organisational Resources
Every business needs four types of resources to operate:
• Physical Resources - buildings, equipment, machinery
• Human Resources - employees and their skills
• Financial Resources - capital, cash, budgets
• Technological Resources - software, IT systems, data
4. Management and Leadership
Key Distinction
Leadership is NOT the same as management. Management has a broader scope and
includes four functions (of which leadership is one). A person can be a manager without
being a good leader.
MANAGEMENT LEADERSHIP
