Chapter 1
Sunday, 25 January 2026 11:38
The meaning of the Micro-environment
• It is the environment within which a business operates and consists of the business
itself.
• It is the decision- making environment, because management makes decisions to
achieve their goals.
The Components of the Micro- Environment
Vision
• Explains what the business wants to achieve
• The dream of the business and where it wants to be in the future
• Answers the question "Where are we going from here?"
• e.g. "To provide job opportunities to the local community"
Mission
• Explains the reason for the business existence
• Enables businesses to develop strategies to achieve their vision
• Describes the purpose and basic activities of a business
• e.g. "To become a world class car dealership"
Goals
• Can be defined as long term objectives of what the business wants to achieve.
• Goals give a business a sense of direction.
• e.g "Increase profit by 20% by 2027"
Objectives
• Short term tasks to reach goals
• Explains how the goals of the business will be achieved
• Explains targets and strategies that will help the business achieve its mission
Strategy
• The strategy outlines how the business will achieve its vision in line with its mission statement
and objectives.
• It is a plan of action taken by top management to achieve their vision.
Examples of organisational culture
• Norms/shared- values
• The working environment of the business
• Business dress code
• Floor plan of business
Purpose of organisational culture
• It influences people’s actions and attitudes
• The culture determines how things are done
• Shared understanding of how things are done in a business.
• Defines Identity and Boundary, culture creates a distinct, recognizable identity for the
organization, distinguishing it from others. It helps members define who they are and what the
New Section 3 Page 1
, organization, distinguishing it from others. It helps members define who they are and what the
organization stands for.
• Guides Behavior and Decision-Making: It provides a set of informal rules and norms that guide
employee behavior and decision-making
• Enhances Stability and Cohesion: As a "social glue," culture increases social stability and helps bind
the organization together, fostering unity and collaboration across teams.
• Increases Commitment and Motivation: A strong, positive culture encourages loyalty. It fosters
commitment to the organization’s mission above individual self-interests.
Types of organisational resources
1. Human Resources
• People with knowledge and skills such as employees/consultants/managers etc.
• The people needed to perform the work and keep the organisation functioning.
• People who contribute towards achieving the goals of the business.
2. Natural Resources
• Assets from nature that are used to offer services and products, such as minerals, water and
wood.
3. Physical Resources
• Include raw materials/office furniture/equipment/machinery/plant necessary to operate the
business successfully
4. Financial Resources
• Money invested in the business to acquire production goods such as land, buildings and
machinery
• Can be in the form of cash/bank overdrafts/short and medium term loan
5. Technological Resources
• Resources that include computers/voice mail/emails/production technology that gives the
business an advantage over its competitors.
Management Leadership
The management of a business is the process whereby an Leadership is the ability of an
individual or individuals guide and direct the organisation to individual to inspire, influence or
achieve its goals and objectives. Good managers are able to motivate their subordinates to
plan properly, organise, lead, and control all the resources in achieve the goals and objectives of the
the business business
• Managers ensures that tasks given to subordinates are • Leaders inspires other people
completed
• Task orientated • People orientated
• Management is the process of achieving business goals • Leadership is the process of inspiring
and influencing other to achieve
business goals
• Leaders are born with natural/ instinctive leadership skills • A person becomes a manager
because he/she is appointed in the
position
Eight Business functions
New Section 3 Page 2
Sunday, 25 January 2026 11:38
The meaning of the Micro-environment
• It is the environment within which a business operates and consists of the business
itself.
• It is the decision- making environment, because management makes decisions to
achieve their goals.
The Components of the Micro- Environment
Vision
• Explains what the business wants to achieve
• The dream of the business and where it wants to be in the future
• Answers the question "Where are we going from here?"
• e.g. "To provide job opportunities to the local community"
Mission
• Explains the reason for the business existence
• Enables businesses to develop strategies to achieve their vision
• Describes the purpose and basic activities of a business
• e.g. "To become a world class car dealership"
Goals
• Can be defined as long term objectives of what the business wants to achieve.
• Goals give a business a sense of direction.
• e.g "Increase profit by 20% by 2027"
Objectives
• Short term tasks to reach goals
• Explains how the goals of the business will be achieved
• Explains targets and strategies that will help the business achieve its mission
Strategy
• The strategy outlines how the business will achieve its vision in line with its mission statement
and objectives.
• It is a plan of action taken by top management to achieve their vision.
Examples of organisational culture
• Norms/shared- values
• The working environment of the business
• Business dress code
• Floor plan of business
Purpose of organisational culture
• It influences people’s actions and attitudes
• The culture determines how things are done
• Shared understanding of how things are done in a business.
• Defines Identity and Boundary, culture creates a distinct, recognizable identity for the
organization, distinguishing it from others. It helps members define who they are and what the
New Section 3 Page 1
, organization, distinguishing it from others. It helps members define who they are and what the
organization stands for.
• Guides Behavior and Decision-Making: It provides a set of informal rules and norms that guide
employee behavior and decision-making
• Enhances Stability and Cohesion: As a "social glue," culture increases social stability and helps bind
the organization together, fostering unity and collaboration across teams.
• Increases Commitment and Motivation: A strong, positive culture encourages loyalty. It fosters
commitment to the organization’s mission above individual self-interests.
Types of organisational resources
1. Human Resources
• People with knowledge and skills such as employees/consultants/managers etc.
• The people needed to perform the work and keep the organisation functioning.
• People who contribute towards achieving the goals of the business.
2. Natural Resources
• Assets from nature that are used to offer services and products, such as minerals, water and
wood.
3. Physical Resources
• Include raw materials/office furniture/equipment/machinery/plant necessary to operate the
business successfully
4. Financial Resources
• Money invested in the business to acquire production goods such as land, buildings and
machinery
• Can be in the form of cash/bank overdrafts/short and medium term loan
5. Technological Resources
• Resources that include computers/voice mail/emails/production technology that gives the
business an advantage over its competitors.
Management Leadership
The management of a business is the process whereby an Leadership is the ability of an
individual or individuals guide and direct the organisation to individual to inspire, influence or
achieve its goals and objectives. Good managers are able to motivate their subordinates to
plan properly, organise, lead, and control all the resources in achieve the goals and objectives of the
the business business
• Managers ensures that tasks given to subordinates are • Leaders inspires other people
completed
• Task orientated • People orientated
• Management is the process of achieving business goals • Leadership is the process of inspiring
and influencing other to achieve
business goals
• Leaders are born with natural/ instinctive leadership skills • A person becomes a manager
because he/she is appointed in the
position
Eight Business functions
New Section 3 Page 2
