Business Notes
Business
Micro Environment:
H: Human Resources Market Environment:
A: Administration S: Suppliers
M: Marketing S: Strategic Alliance
P: Procurement I: Intermediaries
P: Production I: Industry Regulators
PR: Public Relations C: Competitors
F: Financial C: Consumers
GM: General Management N: NGO’s
Macro Environment:
P: Political
E: Economic
E: Ethical
S: Social
T: Technological
L: Legal
E: Environment
Pestle examples for petrol stations. Political could be corruption, taxation,
wag legislation. Economic = exchange rate, skill level or work force, inflation
and interest rate. Social = power structure, education levels, culture.
Technological = impact on cost of structure, franchise development. Legal =
discrimination law, copyright, CPA, health and safety law. Environment =
climate change, weather, air and water pollution, recycling.
7
, SWOT (Strengths, weaknesses, opportunities and threats)
Environmental scan: These are factors that may impact on the business
and then adjust existing plans or develop new plans to deal with these
factors / events.
Porters 6 forces:
1. Current competitors
2. Threat of new competitors
3. Substitute products
4. Power of supplier
5. Power of buyer
6. Complementary products
Entrepreneur and Intrapreneur:
- Entrepreneur is the person who combines the 3 factors or production
(capital, labour and raw material) in order to start a business venture.
- Sees an opportunity in the market and they assume the risk of
starting a new business by investing their capital to make a profit.
Intrapreneur:
- A.K.A (inside entrepreneur). They work within a business and use
entrepreneurial characteristics combined with the business’ resources
to transform innovative ideas into profit.
- Don’t operate at Top Management level but need the approval of a
manager still
7
, Entrepreneurial characteristic, qualities and skills
- Ability to identify an opportunity with potential and then to pursue that
potential even if its risky
- Identifying an opportunity in a specific environment, need to under
market and continually need to scan the environment.
- Has to know its customers, their needs and if they need to change
business plan to satisfy their needs.
- Must be an opportunist. Must be able to anticipate market trends
- Commitment and perseverance
- Creativity and innovation.
- Ability to prepare and implement a plan to achieve goals
- Ability to obtain and coordinate the required resources in an optimal
manner.
- Ability to convince and motivate others to buy their product and buy
into their idea.
- Ability to evaluate achievements and progress
- Quick decisions about opportunities
- Ability to communicate clearly and accurately.
- Personally motivated.
Corporate governance:
- Set of rules and processes which are used by top management to
direct and control the business
- Provide a framework and control measures to look after the bottom
line of the business but also consider the interests of all stakeholders
in the business
- Stakeholders may include: management, shareholders, customers,
suppliers, government, the community and environment.
7
, Discipline:
- Purpose is to improve future behaviour in the business and to not
embarrass or punish people but to rather ensure the correct
behaviour by all parties.
- Everyone must be treated fairly and the same
- Be a Good Leader.
- Remove Distractions.
- Make the Office a Pleasant Place to Work.
- Think About the Age of the Workforce.
- Make the Rules Clear.
- Put a Three Strikes Rule in Place.
- Give People the Space to Work.
- Prioritise Communication with Employees.
Substantiate and procedural fairness:
A. Dismissal due to incapacity (inability to meet the required
requirements)
- Poor work performance: Incomplete or inaccurate work, poor
standard of work, not eating deadlines.
- Poor health: employer should try modify or adapt the employees
tasks. Extended unpaid leave should be considered. Transfer
employee to another position that suits them better.
B. Dismissal based of misconduct (not adhering to rules)
• Forms of misconduct may include, but aren’t limited to:
- Abuse or unauthorised possession of company property.
- Actions that are a threat to the safety of the employee or others.
- Under the influence of drugs, alcohol or any illegal substance.
7
Business
Micro Environment:
H: Human Resources Market Environment:
A: Administration S: Suppliers
M: Marketing S: Strategic Alliance
P: Procurement I: Intermediaries
P: Production I: Industry Regulators
PR: Public Relations C: Competitors
F: Financial C: Consumers
GM: General Management N: NGO’s
Macro Environment:
P: Political
E: Economic
E: Ethical
S: Social
T: Technological
L: Legal
E: Environment
Pestle examples for petrol stations. Political could be corruption, taxation,
wag legislation. Economic = exchange rate, skill level or work force, inflation
and interest rate. Social = power structure, education levels, culture.
Technological = impact on cost of structure, franchise development. Legal =
discrimination law, copyright, CPA, health and safety law. Environment =
climate change, weather, air and water pollution, recycling.
7
, SWOT (Strengths, weaknesses, opportunities and threats)
Environmental scan: These are factors that may impact on the business
and then adjust existing plans or develop new plans to deal with these
factors / events.
Porters 6 forces:
1. Current competitors
2. Threat of new competitors
3. Substitute products
4. Power of supplier
5. Power of buyer
6. Complementary products
Entrepreneur and Intrapreneur:
- Entrepreneur is the person who combines the 3 factors or production
(capital, labour and raw material) in order to start a business venture.
- Sees an opportunity in the market and they assume the risk of
starting a new business by investing their capital to make a profit.
Intrapreneur:
- A.K.A (inside entrepreneur). They work within a business and use
entrepreneurial characteristics combined with the business’ resources
to transform innovative ideas into profit.
- Don’t operate at Top Management level but need the approval of a
manager still
7
, Entrepreneurial characteristic, qualities and skills
- Ability to identify an opportunity with potential and then to pursue that
potential even if its risky
- Identifying an opportunity in a specific environment, need to under
market and continually need to scan the environment.
- Has to know its customers, their needs and if they need to change
business plan to satisfy their needs.
- Must be an opportunist. Must be able to anticipate market trends
- Commitment and perseverance
- Creativity and innovation.
- Ability to prepare and implement a plan to achieve goals
- Ability to obtain and coordinate the required resources in an optimal
manner.
- Ability to convince and motivate others to buy their product and buy
into their idea.
- Ability to evaluate achievements and progress
- Quick decisions about opportunities
- Ability to communicate clearly and accurately.
- Personally motivated.
Corporate governance:
- Set of rules and processes which are used by top management to
direct and control the business
- Provide a framework and control measures to look after the bottom
line of the business but also consider the interests of all stakeholders
in the business
- Stakeholders may include: management, shareholders, customers,
suppliers, government, the community and environment.
7
, Discipline:
- Purpose is to improve future behaviour in the business and to not
embarrass or punish people but to rather ensure the correct
behaviour by all parties.
- Everyone must be treated fairly and the same
- Be a Good Leader.
- Remove Distractions.
- Make the Office a Pleasant Place to Work.
- Think About the Age of the Workforce.
- Make the Rules Clear.
- Put a Three Strikes Rule in Place.
- Give People the Space to Work.
- Prioritise Communication with Employees.
Substantiate and procedural fairness:
A. Dismissal due to incapacity (inability to meet the required
requirements)
- Poor work performance: Incomplete or inaccurate work, poor
standard of work, not eating deadlines.
- Poor health: employer should try modify or adapt the employees
tasks. Extended unpaid leave should be considered. Transfer
employee to another position that suits them better.
B. Dismissal based of misconduct (not adhering to rules)
• Forms of misconduct may include, but aren’t limited to:
- Abuse or unauthorised possession of company property.
- Actions that are a threat to the safety of the employee or others.
- Under the influence of drugs, alcohol or any illegal substance.
7
