Class notes
Business studies Term 1
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This my class notes for term 1 business studied. It covers most of topics that you learn in term 1
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Business Notes Term 1Micro Environment
The micro environment is the business itself.
It is also known as the internal environment.
Businesses have full control over the micro environment
Components
Vision and mission
VISION
Describes what a business wants to achieve in the long term.
MISSION
Describes the reason for a business’s existence.
STRATEGY
Describes how a business will achieve its goals.
GOALS AND OBJECTIVES
Translates the vision and mission into performance targets.
A deadline for the achievement of each goal.
Organisational culture
How things are done in a business.
Includes aspects like employee’s dress code and how employees address
each other.
Organisational culture is also influenced by the culture of employees.
Management and leadership
Managers and leaders are responsible for making sure that a business achieves
its goals.
- Managers
, A manager holds a particular position in a business, e.g. financial
manager.
A person can only be a manager if there is a vacant managerial position
in a business.
A manager gives instructions to subordinates and checks that these tasks
are carried out.
A manager has the authority to tell subordinates what to do
- Leader
A leader does not necessarily hold a managerial position – any employee
can be a leader.
A leader emerges when there is a need for leadership in a group-
leadership is a characteristic.
A leader is usually part of a team and helps to perform tasks.
A leader usually inspires team members to perform.
Organisational structure
A business’s structure refers to how employees in a business are
organised.
The structure explains the responsibility and displays the authority of
each manager.
A traditional business structure is in the form of a pyramid that indicates
the different levels of power in a business.
However, the current trend is to form wider structures where more
power is given to subordinates.
Organisational resources
Organisational resources refer to all the resources that a business uses to make
sure that it operates efficiently.
Businesses need capital resources, human resources, natural resources,
and entrepreneurial resources.
These resources are also called the four factors of production.
Each factor of production has its remuneration, which can be explained
as the “payment” for that particular factor of production.
Capital resources- Money that is invested in a business so that the business
can acquire capital goods, for example, land, buildings, and equipment.
,(Interest)
Human resources- The work people do to produce products and services,
called labor. (Salaries and wages)
Natural resources- All natural assets used to produce products and services,
for example, water, coal, and gold. (Rent)
Entrepreneurial resources that combine the above-mentioned factors of
production in such a way that the business becomes operational and
profitable. (Profit)
Business Function
Administration Function
Responsibilities:
Collecting data and information
Handling data and information
Managing information
Office practice
Information technology
Handling data and information:
Correspondence All communication to and form a
business, whether oral or written.
Copying and duplicating Information must be copied so
that it is available to managers.
Some information is confidential
and should be handled carefully.
Filing and storing Correspondence and records such
as financial statements, accounts,
employee payslips and marketing
figures must be sorted and filed.
This information must be stored
for future reference.
Indexing File the same type of information
together.
, Index this information in terms of
importance, date, or nature.
This will make the process of
finding information much easier.
Handling of mail Deliver mail to managers to
ensure a quick response.
Distribution of information to Information must be distributed
management to managers so that they can
identify opportunities and
respond to threats.
Accounting Records
Must be kept to:
Keep record of all business
transactions.
Set financial statements.
Statistics Involves the collection and
interpretation of raw data.
Enables managers to identify
trends and to make informed
decisions about the future of a
business.
Budgets Estimates how much money a
business will spend and receive
during a particular financial year.
Different kinds of budget include:
o Marketing budget
o Human resource budget
o Production budget
o Corporate social investment
budget
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