MATRIC IEB
BUSINESS STUDIES
NOTES
, ChApTER 1:
BUsINEss
ENVIRONMENTs
,MICRO ENVIRONMENT
Explanation:
- Focus on the internal business functions
Purchasing
- Buys goods and services needed by all departments needed for own use, to
resell them and for processing
- The most suitable suppliers need to be found
- Ensure best return on investment so cost price of purchased good
must be kept low by negotiating discounts
- Orders must be placed and confirmed to ensure delivery of correct
goods and the delivery must be verified for the quality and the
precise quantities
- Control inventory to maintain optimum stock levels
- Integrating back in the distribution channel by taking over the role
of the supplier by becoming its own thus gaining control over
material needed
- Supply Chain Management:
o Activities to deliver right product/service to right customer
@ right time, place and reasonable cost
o Sourcing, processing, manufacturing, transporting,
storing and distributing products and services
o Oversee the flow of materials & information from
supplier to customer
o More effective = less capital investment in stock
o Information must be accurately and timeously shared in
network of businesses buying and selling to each other
o Businesses expect suppliers are acting ethical
Production
- Combination of natural resources, labour, capital and
entrepreneurial skill to provide the product at the right time & place in
the quantity demanded and the expected price
- Aims to create utility of form to transform raw materials to satisfy needs
- Keep manufacturing cost as low as possible while maintaining quality
- Continuous product design to satisfy needs by combining efforts
with the marketing department to design the product and
, packaging to attract
BUSINESS STUDIES
NOTES
, ChApTER 1:
BUsINEss
ENVIRONMENTs
,MICRO ENVIRONMENT
Explanation:
- Focus on the internal business functions
Purchasing
- Buys goods and services needed by all departments needed for own use, to
resell them and for processing
- The most suitable suppliers need to be found
- Ensure best return on investment so cost price of purchased good
must be kept low by negotiating discounts
- Orders must be placed and confirmed to ensure delivery of correct
goods and the delivery must be verified for the quality and the
precise quantities
- Control inventory to maintain optimum stock levels
- Integrating back in the distribution channel by taking over the role
of the supplier by becoming its own thus gaining control over
material needed
- Supply Chain Management:
o Activities to deliver right product/service to right customer
@ right time, place and reasonable cost
o Sourcing, processing, manufacturing, transporting,
storing and distributing products and services
o Oversee the flow of materials & information from
supplier to customer
o More effective = less capital investment in stock
o Information must be accurately and timeously shared in
network of businesses buying and selling to each other
o Businesses expect suppliers are acting ethical
Production
- Combination of natural resources, labour, capital and
entrepreneurial skill to provide the product at the right time & place in
the quantity demanded and the expected price
- Aims to create utility of form to transform raw materials to satisfy needs
- Keep manufacturing cost as low as possible while maintaining quality
- Continuous product design to satisfy needs by combining efforts
with the marketing department to design the product and
, packaging to attract
