business studies business funct
THE MICRO ENVIRONMENT (CHAPTER 1)
1. Introduction
The management of a business can be divided into nine business functions namely:
General and strategic management
Purchasing
Production and operations
Marketing
Public relations
Human resources
Administration and information
Financial and accounting
Risk management
The nine functions are important because their role is to ensure that the goals of the business are achieved. All the functions work together to ensure the survival of a business just like the organs of a human. None of the functions can work independently.
2. Content
General and strategic management
General management has three levels namely top management, middle management and lower management and with these three levels comes four tasks and they are planning, organizing, leading and controlling.
Three levels of management
Top management: consist of the heads of all the divisions, sections or departments of the business. Their role is to think about the long term direction of the business and set in place long-term plans and projects, as well as monitoring their progress. These managers take strategic decisions.
Middle management: mangers that reports to top managers. The focus of middle managers is on the medium term goals. They implement the plans and visions of top management and makes sure things happen. The decisions taken by these managers are of a tactical nature.
Lower management: the lower management reports to the middle management. They are also known as supervisors and are responsible for overseeing day to day operations and routine decisions in the business. They take operational decisions of a short term nature.
Tasks for management
Planning: setting goals and objectives and developing plans to achieve them. In order to plan effectively management should gather all appropriate information. Plans should meet the following requirements:
A plan should be adaptable, realistic and cost effective.
Plans should be communicated clearly,
1. Introduction
The management of a business can be divided into nine business functions namely:
General and strategic management
Purchasing
Production and operations
Marketing
Public relations
Human resources
Administration and information
Financial and accounting
Risk management
The nine functions are important because their role is to ensure that the goals of the business are achieved. All the functions work together to ensure the survival of a business just like the organs of a human. None of the functions can work independently.
2. Content
General and strategic management
General management has three levels namely top management, middle management and lower management and with these three levels comes four tasks and they are planning, organizing, leading and controlling.
Three levels of management
Top management: consist of the heads of all the divisions, sections or departments of the business. Their role is to think about the long term direction of the business and set in place long-term plans and projects, as well as monitoring their progress. These managers take strategic decisions.
Middle management: mangers that reports to top managers. The focus of middle managers is on the medium term goals. They implement the plans and visions of top management and makes sure things happen. The decisions taken by these managers are of a tactical nature.
Lower management: the lower management reports to the middle management. They are also known as supervisors and are responsible for overseeing day to day operations and routine decisions in the business. They take operational decisions of a short term nature.
Tasks for management
Planning: setting goals and objectives and developing plans to achieve them. In order to plan effectively management should gather all appropriate information. Plans should meet the following requirements:
A plan should be adaptable, realistic and cost effective.
Plans should be communicated clearly,
Bibliography: 1. Bright, J., Muller, U., Venter, R. 2005. Business studies for all, 10 2. Bright, J., Muller, U., Venter, R. 2011. Business studies, solutions for all, 10 3. Meyer, E., Russell, Y. 2011. Studying Business, Grade 10