Chapter 1 (pg1 – 13)
Business environments
Macro – external environment with no control, need to be able to adapt to
certain variables using pestle.
Market – external environments that you can influence (influence the
market) be aware of porter’s forces and swOT
Micro – internal business operations/functions can use SWot
Environmental scanning – the process of obtaining info on possible
current/future events that may impact the business (done to ensure
businesses can adapt and be ready for developments to take advantage of
opportunities and overcome threats.
o ID challenges
o Analyse the impact
o Implement strategy
o Or: vision – formulate strategy – implement – evaluate and control
Swot analysis – strengths, weaknesses, opportunities and threats
Porters 7 forces
o Attractive market = high profit: high barriers to enter, low levels of
competition, fewer substitutes, weak supplier bargaining power,
weak buyer bargaining power.
o Unattractive markets = low profit: low barriers to enter, high level
of competition, many substitutes, strong supplier and customer
bargaining power.
o Complimentary products – 2 products complement each other.
Pestle analysis
, Chapter 3 (pg24-37)
Management and entrepreneurship
Management: management is the process of accepting countability for the
innovative application of resources in order to achieve goals. Planning,
organising, leading and controlling
Levels of management
Management tasks
o Planning (rational process aimed at the future): first function of
management, involves a combination of creative and logical
thinking in order to improve the future of the business
Principles of effective planning – id the gap between the
current state of the business and the future plans. Discuss
and formulate the vision, mission, objectives, policies and
procedures. Where and how to obtain resources
Funnel approach – environmental scanning and effects from
the different environments.
Flexibility – adapt to internal or external pressures, flexibility
is limited to the resources at the business’s disposal.
Importance - Ensures attention is focused on objectives,
minimize risk, ensures co-ordination, facilitates control and
allows to measure performance.
Steps of planning: establishing objectives deciding on the
planning period considering alternatives implementing the
plan controlling the process.
o Organising (ID activities that should be undertaken)
Steps in organising: considering objectives ID and group
activities assigning of duties delegating authority
, Advantages – focuses all resources and activities towards
achieving objectives, gives people responsibilities.
Benefits – communication structure, authority and
responsibility are allocated, creates balance with planning
being allocated according to the level of management,
stimulates creativity, encourages growth.
o Leading and activating staff: leadership encourages the workforce
to perform, direction and subordinates from manager is important.
Manager should understand the needs motives and attitudes of the
employees.
Principles of leading
Harmony of objectives - “win–win situation”
Effective communication – clarity
Unity of direction – clarity
Direct supervision – personal touch
Follow up – challenges that are faced
Sound leadership
Planner – what needs to be done now and in future
(long term business goals)
Able to make decisions – not afraid (clear head)
Guide people – in the face of challenges the leader
should decide on necessary actions and help others
follow suit.
Encourage others – will reward/discipline accordingly,
promotes better performance (leads by example)
Take initiative – gets involved
Mediator and arbitrator – aims to develop relationships
btw staff and helps find common ground to resolve
conflict
o Leadership and management styles: defined by the way the leader
behaves and influences the workforce
Autocratic leadership – commands/instructs while directing.
Will formulate all objectives, procedures and policies their
self
Benefits – saves time and is effective in a crisis, no
confusion
Downfalls – not allowing creativity, less motivation,
less work place satisfaction
Laissez faire leadership – little control over employees, simply
supplying employees with the necessary information and
resources it achieves.
Works if the work force are independent thinkers,
competent, creative and trust worthy.
Can create uncertainty and confusion if they do not
have direction.
Democratic leadership style – participative, joint decision
making, leader will help grow the confidence and
performance (boosts morale)
Can be time consuming or used to avoid
responsibilities.
Business environments
Macro – external environment with no control, need to be able to adapt to
certain variables using pestle.
Market – external environments that you can influence (influence the
market) be aware of porter’s forces and swOT
Micro – internal business operations/functions can use SWot
Environmental scanning – the process of obtaining info on possible
current/future events that may impact the business (done to ensure
businesses can adapt and be ready for developments to take advantage of
opportunities and overcome threats.
o ID challenges
o Analyse the impact
o Implement strategy
o Or: vision – formulate strategy – implement – evaluate and control
Swot analysis – strengths, weaknesses, opportunities and threats
Porters 7 forces
o Attractive market = high profit: high barriers to enter, low levels of
competition, fewer substitutes, weak supplier bargaining power,
weak buyer bargaining power.
o Unattractive markets = low profit: low barriers to enter, high level
of competition, many substitutes, strong supplier and customer
bargaining power.
o Complimentary products – 2 products complement each other.
Pestle analysis
, Chapter 3 (pg24-37)
Management and entrepreneurship
Management: management is the process of accepting countability for the
innovative application of resources in order to achieve goals. Planning,
organising, leading and controlling
Levels of management
Management tasks
o Planning (rational process aimed at the future): first function of
management, involves a combination of creative and logical
thinking in order to improve the future of the business
Principles of effective planning – id the gap between the
current state of the business and the future plans. Discuss
and formulate the vision, mission, objectives, policies and
procedures. Where and how to obtain resources
Funnel approach – environmental scanning and effects from
the different environments.
Flexibility – adapt to internal or external pressures, flexibility
is limited to the resources at the business’s disposal.
Importance - Ensures attention is focused on objectives,
minimize risk, ensures co-ordination, facilitates control and
allows to measure performance.
Steps of planning: establishing objectives deciding on the
planning period considering alternatives implementing the
plan controlling the process.
o Organising (ID activities that should be undertaken)
Steps in organising: considering objectives ID and group
activities assigning of duties delegating authority
, Advantages – focuses all resources and activities towards
achieving objectives, gives people responsibilities.
Benefits – communication structure, authority and
responsibility are allocated, creates balance with planning
being allocated according to the level of management,
stimulates creativity, encourages growth.
o Leading and activating staff: leadership encourages the workforce
to perform, direction and subordinates from manager is important.
Manager should understand the needs motives and attitudes of the
employees.
Principles of leading
Harmony of objectives - “win–win situation”
Effective communication – clarity
Unity of direction – clarity
Direct supervision – personal touch
Follow up – challenges that are faced
Sound leadership
Planner – what needs to be done now and in future
(long term business goals)
Able to make decisions – not afraid (clear head)
Guide people – in the face of challenges the leader
should decide on necessary actions and help others
follow suit.
Encourage others – will reward/discipline accordingly,
promotes better performance (leads by example)
Take initiative – gets involved
Mediator and arbitrator – aims to develop relationships
btw staff and helps find common ground to resolve
conflict
o Leadership and management styles: defined by the way the leader
behaves and influences the workforce
Autocratic leadership – commands/instructs while directing.
Will formulate all objectives, procedures and policies their
self
Benefits – saves time and is effective in a crisis, no
confusion
Downfalls – not allowing creativity, less motivation,
less work place satisfaction
Laissez faire leadership – little control over employees, simply
supplying employees with the necessary information and
resources it achieves.
Works if the work force are independent thinkers,
competent, creative and trust worthy.
Can create uncertainty and confusion if they do not
have direction.
Democratic leadership style – participative, joint decision
making, leader will help grow the confidence and
performance (boosts morale)
Can be time consuming or used to avoid
responsibilities.
