205 Questions
What is the micro environment of a business?
The internal factors that affect the business
What is the primary purpose of a business's mission statement?
To clarify the business's reason for being and its fundamental objectives
What is the difference between a business's goals and objectives?
Goals are broad primary outcomes, objectives are specific actionable steps
What is the purpose of a business's vision statement?
To serve as the guiding star for all strategic planning
Who has control over the micro environment of a business?
The company itself
Why is it important to understand the business environment?
For strategic planning and operational success
What is the main role of the secondary sector?
To transform raw materials into finished or semi-finished products
Which sector is involved in the movement of goods and information?
Tertiary sector
What do auxiliary services help bridge within the tertiary sector?
All of the above
Which businesses are officially registered and comply with governmental regulations?
Formal sector businesses
Which sector typically operates for profit and drives innovation?
Private sector
Which of these sectors provides essential services like healthcare and education?
Public sector
Which of the following is an external factor that can impact business operations?
Quality of roads
What can high unemployment lead to in a national economy?
Decreased productivity
Which factor is influenced by customs, religion, and language?
Consumer behavior
What type of environment involves understanding local customs and networking within business communities?
Non-official procedures
Which of the following is not a key economic indicator?
Redistribution of income
How does a negative balance of payments impact a national currency?
Weakens it
What do advancements in communication technologies demand from businesses?
Adaptation and new skills
What is not included in the micro environment of a business?
Environmental regulations
What can political instability lead to in terms of business growth?
Increased uncertainty
How do steel tariffs encourage domestic production in a country?
By making domestic steel relatively less expensive
Which sector is involved with natural resources?
Primary sector
What influences consumer behavior and supplier relations in the market environment?
Strategies within the micro environment
Which of these is an example of an economic factor in the macro environment?
Government spending
What can businesses do to influence the market environment?
Influence micro environmental factors
Which of these is an example of a technological factor in the macro environment?
Automation
Which sector involves the management, cultivation, and harvesting of forests?
Primary sector
What can macro environmental factors do to business operations?
Shape the operational context for businesses
What do legal frameworks govern in business practices?
Employment practices
What is not an activity involved in the primary sector?
Manufacturing
Which of these is an example of a social factor in the macro environment?
Cultural trends
What is organizational culture?
The collective behavior, norms, ethical standards, and work dynamics within a business
What is a physical resource in a business?
Tangible assets like buildings, machinery, and equipment
What is the role of 'Leading' in the POLC framework of management?
Directing and motivating staff to follow business plans and achieve objectives
What is the business function of the Purchasing department?
Procuring all necessary materials and services at the right price, quality, and time
What is the macro environment in a business context?
Broader societal forces such as economic conditions, legal frameworks, and cultural trends that influence the business indirectly
What is the role of 'Organising' in the POLC framework of management?
Structuring resources and tasks effectively to meet business goals
What does the Public Relations function handle in a business?
Managing the public image and community relations of the business
What is the role of 'Controlling' in the POLC framework of management?
Monitoring processes and outputs to ensure alignment with goals
What is the role of the Financial function in a business?
Managing the financial health of the company
What is the role of 'Planning' in the POLC framework of management?
Strategic and operational planning that determines the future path of the company
What is the role of customers in the market environment?
They are the recipients of the business's goods and services and their needs drive the business's offerings
Which of these is NOT a part of the macro environment?
Suppliers
What are some of the psychological factors that influence a customer's purchasing decision?
Motivation and perception
Which of these is NOT a role of managers in the micro environment?
Shape the economic conditions
What are some common elements of social factors that influence a customer's purchasing decision?
Family roles and social status
What are some personal factors that influence a customer's purchasing decision?
Individual characteristics such as age, occupation, lifestyle, and economic circumstances
What are some common elements of cultural factors that influence a customer's purchasing decision?
Religion, race, and social class
What is the role of intermediaries in the market environment?
They play a critical role in delivering the product to the end consumer
What is the role of competitors in the market environment?
They provide similar products or services and vie for the same customer base
What is the role of civil society in the market environment?
They influence or are influenced by the business
What is the primary purpose of a business's vision statement?
To serve as a guiding star for strategic planning
What is included in the micro environment of a business?
Factors within the company that impact its ability to serve its customers
What are objectives in a business?
Specific, actionable steps that define how goals will be achieved
What is the foundation for a business's existence?
Mission statement
Who has control over the micro environment of a business?
Management
What is the role of goals in a business?
To provide long-term direction
What is the function of the tertiary sector?
Delivering services and distributing finished products
Which sector operates under government control and provides essential services like healthcare and education?
Public Sector
What is a characteristic of the informal sector?
Consists of unregistered businesses
Which gap do auxiliary services help bridge by managing the time gap?
Time gap
What is the main function of the secondary sector?
Transforming raw materials into finished products
Which sector typically drives innovation and is focused on profit-making?
Private Sector
What are Business Cycle Stages primarily responsible for influencing in a business?
Consumer spending and investment levels
Which technological innovation is highlighted as enhancing inventory management and customer transactions?
Electronic Point of Sale (EPOS) systems
What influences market demands and necessitates adjustments in product offerings and marketing strategies?
Demographic shifts
Which sector involves the cultivation of crops and rearing of animals for various products?
Agriculture
What can political instability potentially lead to in the context of business growth?
Business disruptions
What external factors can disrupt or create business opportunities, necessitating quick adaptations?
Technological advancements
Which sector directly involves the extraction and harvesting of natural resources like minerals?
Mining
What directly impacts consumer spending and business costs through its changes?
Economic factors
Which activities can dramatically alter operational efficiencies and market reach for businesses?
Technological innovations
How can consumer behavior and supplier relations be significantly influenced within the micro environment?
Through strategies like pricing and product development
How does a negative balance of payments potentially impact a national economy?
Weakens the national currency
What consequences can high unemployment and the prevalence of HIV/Aids have on a national economy?
Limit economic output
How does political instability within a country typically impact business growth?
Creates uncertainty and risk
What key aspect influences market dynamics and consumer needs through changes in population statistics like age, gender, and education?
Demographic shifts
In the context of the business cycle stages, what phase dictates market conditions and consumer spending behaviors characterized by a decline in economic activity?
Recession
Which sector is involved in understanding and adhering to laws regarding employment, consumer protection, and competition to shape business operations?
Secondary sector
What can social grants, aimed at temporarily boosting consumer spending among lower-income groups, lead to?
Increased consumer spending
Which technological advancement is stated to reduce labor needs but increase efficiency in production and operations?
Robotics
How can advancements in communication and information management technologies demand adaptation from businesses?
Requirement to protect data integrity and privacy
Which aspect of the technological environment can enhance operational efficiency but require businesses to develop new skills and adapt their processes?
Cloud computing in daily operations
Which of the following is an example of a physical resource in a business?
Building
What is the primary role of the General Management function in a business?
Synchronizing all other business functions
What is the role of the Human Resource function in a business?
Recruiting, training, and maintaining a workforce
Which of the following is NOT a part of the micro environment of a business?
Government regulations
What is the role of the Financial function in a business?
Managing financial health
What is the collective behavior, norms, and work dynamics within a business?
Organizational culture
What is the primary role of the Administration function in a business?
Handling daily administrative tasks
Which of the following is an example of an informational resource in a business?
Data and analytics
What is the main role of the Production function in a business?
Converting raw materials into finished goods
What is the main role of intermediaries in the market environment?
To deliver the product to the end consumer
What is included in Maslow's Hierarchy of Needs?
Biological, physiological, safety, belongingness, esteem, and self-actualization needs
What is the primary purpose of understanding the market environment?
To adapt to external market conditions and optimize internal efficiencies
What is the role of managers in the micro environment?
To shape the organizational culture and deploy resources effectively
What is part of the macro environment?
Economic conditions, social trends, and technological innovations
What is the role of customers in the market environment?
To form the core of the market environment and drive business offerings
What is the role of suppliers in the market environment?
To provide essential inputs needed for production
What is the role of civil society in the market environment?
To influence or be influenced by the business
What is included in the micro environment?
Organizational culture, resources, and strategic changes
What is the main difference between a business's vision and mission statements?
Vision provides a foundation for the business's existence, while mission is a clear and concise statement.
What type of elements are included within the micro environment of a business?
Factors within the company under direct control
What is the primary purpose of a business's goals and objectives?
To provide long-term direction and define actionable steps
Who has control over the micro environment of a business?
The company's management
What is the internal environment also known as?
The micro environment
What is the purpose of a business's mission statement?
To outline the business's primary activities and market purpose
What is the primary function of the secondary sector?
Creating semi-finished or finished products from raw materials
What is a characteristic of the informal sector?
Only individual-run businesses
What is the main role of the tertiary sector?
Delivering services to consumers and businesses
Which sector operates under government control and is funded by taxpayers?
Public Sector
What is the purpose of auxiliary services in various sectors?
Bridging gaps related to timing, quality, and possession
What differentiates the formal sector from the informal sector?
Compliance with governmental regulations
What is the collective behavior, norms, ethical standards, and work dynamics within a business?
Organisational Culture
What are tangible assets like buildings, machinery, and equipment in a business?
Physical Resources
What determines the future path of the company through strategic and operational planning?
Planning
What is the hierarchical arrangement of business roles and responsibilities that helps in managing the flow of information and decision-making processes across the company?
Business Organisational Structure
What is responsible for recruiting, training, and maintaining a qualified and motivated workforce in a business?
Human Resource Function
What manages the financial health of the company, ensuring adequate funding and financial planning?
Financial Function
What fosters motivation and productivity in an organisation?
Positive culture
What are the external factors that directly affect the company, such as competitors, suppliers, and customers?
Market Environment
What is essential for funding operations, expansions, and sustaining the business through challenging periods?
Financial Resources
What oversees and synchronizes all other business functions to ensure the achievement of the company’s objectives?
General Management
What can negatively impact import costs and economic stability?
A negative balance of payments
What influences consumer behavior and product preferences?
Cultural influences
What can temporarily boost consumer spending among lower-income groups?
Redistribution of income
What can reduce labor needs but increase efficiency in production and operations?
Robotics and automated systems
What can lead to uncertainty and risk in business growth?
Political unrest
What comprises the business's mission, objectives, management functions, and resources?
Micro environment
What can increase training costs and impact overall national productivity?
HIV/Aids
What involves steps like company registration, tax registration, and compliance with labor laws?
Official procedures
What can affect local markets through disruptions in supply chains or shifts in migrant patterns?
Events outside national borders
What phase of the business cycle dictates market conditions and consumer spending behaviors characterized by a decline in economic activity?
Recession
What is the main purpose of understanding the market environment?
To understand consumer behavior and supplier relations
What is the role of the primary sector in the economy?
To extract and harvest natural resources
What can influence consumer spending and business costs?
Economic factors such as inflation and unemployment
What is the macro environment in a business context?
External and indirect influences such as economic, technological, and social factors
What can advancements in automation and digital marketing tools do to business operations?
Disrupt or create business opportunities
What is the role of government policies in the macro environment?
To affect business costs and market conditions
What is the primary role of the tertiary sector in the economy?
To provide services to consumers
What is the impact of a negative balance of payments on a national economy?
It affects the cost of imported goods
What is the role of the micro environment in business operations?
To devise strategies that affect consumer behavior and supplier relations
What is the impact of demographic shifts on business operations?
It influences consumer behavior and market demands
What is a key aspect of the market environment that directly interacts with a business?
Customers and suppliers
What do businesses need to continuously monitor to effectively respond to opportunities and threats?
Both the micro and macro environments
What influences the purchasing decisions of customers?
A blend of cultural, social, personal, and psychological factors
What is the primary role of suppliers in the market environment?
To provide the essential inputs needed for production
What is the main impact of understanding the business environment on a business?
It helps in strategic planning and operational adjustments
What is a key element of the physical/natural environment?
All of the above
What is the role of intermediaries in the market environment?
To deliver the product to the end consumer
What is the primary role of management in the micro environment?
To shape the organizational culture and deploy resources effectively
What is included in Maslow's Hierarchy of Needs?
Biological and physiological needs, safety needs, belongingness and love, esteem needs, and self-actualization
What is the primary function of the tertiary sector in the economy?
Delivering services to consumers and businesses
Which sector is officially registered, large, complies with regulations, and contributes to the country's GDP?
Formal sector
What is the primary characteristic of the informal sector?
Small-scale and individually run
What is the key role of the public sector in the economy?
Funded by taxpayers to serve the public interest
What is the role of auxiliary services in supporting various sectors?
Bridging gaps like spatial and time, quality and quantity, possession and risk
Which sector is responsible for driving innovation and significant employment opportunities?
Private sector
What type of infrastructure can impact business operations positively or negatively?
Physical infrastructure
What can impose restrictions on businesses and require compliance with sustainability practices?
Environmental regulations
Which factor influences market dynamics and consumer needs through changes in population statistics like age, gender, and education?
Demographic shifts
What do mechanisms like social grants help achieve?
Boost consumer spending among lower-income groups
What impact can high unemployment and health issues like HIV/Aids have on a national economy?
Impact overall productivity
Which technology can enhance operational efficiency but also require businesses to protect data integrity and privacy?
Cloud computing
Which of the following legal factors significantly impacts business operations and compliance requirements?
Tax registration
Which event outside national borders can affect local markets through supply chain disruptions or shifts in migrant patterns?
Political unrest
What is the main role of understanding the complex dynamics between micro, market, and macro environments for businesses?
To navigate and strategize effectively
How does political stability impact business growth?
Fosters business growth
What aspects of a business can be influenced by its organizational culture?
Client interactions and internal decision-making processes
Which of the following is a tangible physical resource critical for business operations?
Machinery and equipment
What is the primary role of the Public Relations function within a business?
Managing the public image and community relations
Which core activity of management involves monitoring processes and outputs to ensure alignment with goals?
Controlling
What does the Financial Function of a business primarily focus on managing?
Financial health and funding
Which business function is responsible for identifying customer needs and tailoring products accordingly?
Marketing Function
What segment of the business environment involves societal forces like economic conditions and legal frameworks?
Macro Environment
Which factor is NOT part of the Financial Resources critical for businesses?
Equipment
What is the main role of the Human Resource Function within a business?
Recruiting, training, and maintaining a qualified workforce
Which hierarchical arrangement helps manage the flow of information and decision-making processes across a company?
Structural hierarchy
What is the primary purpose of a business's mission statement?
To outline the business's primary activities and market purpose
What is the role of 'Controlling' in the POLC framework of management?
To monitor performance and make necessary adjustments
Which sector typically drives innovation and is focused on profit-making?
Quaternary sector
What can negatively impact import costs and economic stability?
High inflation
Which of the following is not a key economic indicator?
Social media usage
What are some of the psychological factors that influence a customer's purchasing decision?
Perception and motivation
What is the main characteristic of the macro environment?
It is external to the business and indirect
What is the primary role of the primary sector?
To extract and harvest natural resources
What can influence consumer behavior and supplier relations in the micro environment?
Strategies devised by businesses
What is an example of a social factor in the macro environment?
Changes in population age
What is the main role of the tertiary sector?
To provide services like healthcare and education
What can disrupt or create business opportunities, necessitating quick adaptations?
Technological advancements
What is the main characteristic of the micro environment?
It is internal to the business
What can influence consumer spending and business costs?
Economic factors like inflation and unemployment
What is the main role of the market environment?
To influence market conditions and respond to macro environmental factors
What can influence business operations and market conditions?
Government policies and taxation
What is a key aspect of the market environment?
Customers
What influences customers' purchasing decisions?
All of the above
What is the role of suppliers in a business?
To provide essential inputs for production
What is the purpose of understanding the macro environment?
To adapt to societal forces
What is included in the physical/natural environment?
Landscape, site, and buildings
What is Maslow's Hierarchy of Needs?
All of the above
What is the role of intermediaries in the market environment?
To deliver products to end consumers
What is the micro environment?
The internal environment that the business can control
What is the main role of civil society in the market environment?
To influence or be influenced by the business
What is the purpose of understanding the market environment?
To effectively respond to opportunities and threats
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