GRADE 10 SUBJECT BUSINESS STUDIES LESSON PLAN WEEK 1 AND 2

TOPIC MICRO-ENVIRONMENT
TERM 1 Components of micro-environment
• Meaning of micro-environment:
• Components/ features of the micro-environment
• Vision
• Mission Statement
• Goals
• Objectives
2024 ATP • Organisational resources
• Eight functions and activities of the business
• Examples of the business culture
• Business Organisational Structure
• Purpose of the organisational culture
• The purpose/ importance of a business organisational structure with specific
reference to an organogram

Lesson objectives

At the end of this lesson you should be able to:

• Define/Explain the meaning of the micro-environment
• Outline/Describe/Explain/Discuss the various components of the micro (internal business
environment.
• Identify a vision, mission statement, goals and objectives from given scenarios.
• Outline/name/identify/Explain the organisational resources from given
statements/scenarios.
• Identify business functions from given statements/scenarios/case studies
Outline/Explain/Discuss the purpose of the organisational culture.
• Outline/Explain/Describe\Discuss the purpose/importance of a business organisational
structure with specific reference to an organogram.

Micro- environment/Internal environment

Meaning of micro- environment/Internal environment
• It is the environment within which a business operates and consists of the business itself.
• It is the decision-making environment because management make decisions that help the
business achieve its goals.
• It can also be referred to as the immediate environment in which a business operates and
includes all the internal factors of the business.
• includes everything inside the business. All the internal affairs of the business are managed
by the directors or the owners of the business. The business has full/complete control over
its micro environment.

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Components/Features/ Elements of the micro - environment
The components of the micro- environment include the following:
• Vision, Mission, Objectives, Goals, Strategy
• Organisational resources
• Leadership and management
• Eight business functions
• Organisational structure
• Organisational culture.

Explanation of the components/features/elements of the micro-environment

Vision
• The vision of a business describes its long-term goal, that is, where the business sees itself
in the future.
• Refers to a statement that explains what a business aims to achieve.
• Answer to the question: ‘where are going from here?’
• Sets out where the business needs to go to be successful
• The dream of the business and what it wants to achieve in future.
• Gives businesses a clear idea of what they want to achieve.
• The inspiring statement about what a business wants the future to look like.
• Explains what a business aims to achieve taking into consideration its purpose.
• Example ‘To provide job opportunities for the local community
Mission statement
• A statement that that explains the reason for the business existence.
• Enables businesses to develop strategies to achieve their vision.
• The answer to the question such as what businesses do to make a profit?
• Explains what the business does to achieve it vision.
• Gives clear direction on how the business intend to achieve its vision.
• Describes the purpose and basic activities of the business.
• Example ‘To become a word-class communication company

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 Goals
• Can be defined as long term objectives of what the business want to achieve.
• Goals breakdown the business objective into specific and measurable statement. Example
Increase profit margin by 50% in 2020.
• Goals give the business a sense of direction.

Objectives
• Short- term tasks/steps to reach goals.
• Contain a deadline for achievement.
• Explains how the goals of the business will be reached.
• Explains targets and strategies that will help the business fulfil its mission.
• The purpose of the business, for example, a business may have a primary objective of
making a profit and a secondary objective of social upliftment.

Organisational resources
• These are assets that the business uses to produce goods/services and to achieve its
goals.
• The following four groups of resources are controlled by management:
Physical Financial Human Information &
resources/operatin resources resources Technological
g resources (People) resources
• Natural • Capital • Employees • Technology
resources • Own Capital • Contractors the use of
• (raw material) • Cash computers
• Machinery • Bank over • Research
• Vehicles drafts • Production
• Buildings • Short and technology
• Infrastructure medium term
• Assets from loans
nature such as • Money
water, minerals invested in the
and wood business to
acquire
production
goods such as
land, building
and machinery

Explanation of types of organizational resources

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Human resource
• People with knowledge and skills such as employees/consultants/managers etc.
• The people needed to perform the work and keep the organization functioning.
• People who contribute towards achieving the goals of the business.

Natural resources
• Assets from nature that are used to offer services and products, such as minerals, water,
and wood.

Physical resources
• Include raw materials/office furniture/equipment/machinery/plant necessary to operate the
business successfully.

Financial/Capital 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.
.
Technological resources
• Resources that include computers/voice mail/emails/production technology that gives the
business an advantage over its competitors.

Entrepreneurial resources
• The person responsible for combining the factors of production in such a way that the
business will make a profit.

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Management and leadership
Management
• The management of a business is the process whereby an individual or individuals guide
and direct the organisation to achieve its goals and objectives.
• Good managers are able to plan properly, organise, lead, and control all the resources in
the business.
Leadership
• Leadership is the ability of an individual to inspire, influence or motivate their subordinates
to achieve the goals and objectives of the business.

The eight business functions and activities of the business.

General management
• The general management in a business coordinates the other business functions to
achieve the goals and objectives of the business.
• The general management function plans, organises, leads and controls resources in the
business.
Purchasing function
• The purchasing function is responsible for buying all the resources that the business needs
in order to produce its goods and services.
Production function
• The production function is responsible for changing/processing raw materials into finished
or semi-finished products.
• It ensures that the business creates quality products to meet the demands of the target
market.
Marketing function
• The marketing function undertakes market research to determine the real needs of the
target market.
• It is also responsible for the advertising/promotion of goods and services to customers.
Public relations
• The public relations function is responsible for creating a good public image for the
business.
• It ensures that there is proper communication between the business and all its
stakeholders.
Human resources function
• The human resource function is responsible for attracting new employees into the business.
• It also has to manage all the people in the business by providing education and training for
their employees.
Administration function
• The administration function is responsible for collecting, processing and storing all the data
and information required by the business.
• The administration function has to be up to date with the latest information technology.
Financial function
• The financial function is responsible for determining all the financial needs of the business.
• It ensures that the business’s funds are used efficiently.
• It manages all the funds and financial assets of the business.

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The purpose of organisational culture
• Organisational culture refers to how things are done in the business, for example, how the
employees communicate among themselves, their dress code and their administration
policy, Organisational culture also includes the values, beliefs, norms and standards that
are shared among the employees and management.
o The purpose of the organisational culture is to define the business’ internal and external
identity as well as its core values.
o A strong business culture has the power to turn employees into ambassadors of the
business.
o It helps businesses to retain its employees and clients.
o It breaks down boundaries between teams, guides decision-making, and improves
productivity.
o It influences people’s actions and attitudes.
o The culture determines how things are done.
o It is the “personality” of the business.
o Shared understanding of how things are done in a business.

Business organisational structure/organisational chart

• Every business must be organised into a structure that show each person’s task, the level
of authority and responsibility.
• The structure show the flow of instruction and feedback in the business.
• It is the hierarchy to that shows the position of management, the departments and its
employees.
• It shows who report to whom and which department fall under which manager

Types of organisational structures

Functional organisational structure
• Employees get instructions from more than one manager
• The plan to be carried out determines who will be giving instructions
• This structure confuses employees as they report to more than one manager.

Project Organisational structure

• This is structured around project teams
• It is a temporary structure because employees are drawn from different departments
• Employees are then grouped together to form a project team which will carry out a
particular project.

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Matrix Organisational structure
• This structure is structured around projects but employees stay in their departments.
• A project must be completed up to a certain point
• The project is then passed on to the next team, which will carry out the next phase of the
project.

Line organisational structure

• Employees report to only one person
• Only the Director can give instructions to employees
• This structure eliminates confusion among employees as they report to one person only

Line and staff organisational structure

• Experts act as advisors to top and middle management.
• Advisors don’t form part of the business, they merely give advice
• Advisors don’t have authority over the employees, which means they can’t give any
instruction to employees.

Factors that influence the organisation structure

• The size of the company
• Technology
• Resources
• Strategic goals of the company

Purpose/Importance of business organisational structure with

specific reference to an organogram.
• It shows who report to whom and which department fall under which managers.
• The structure show the flow of instruction and feedback in the business.
• Every business must be organised into a structure that show each person’s task, the level
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 of authority and responsibility.
• It is the hierarchy to that shows the position of management, the departments and its
employees.

ASSESSMENT ON THE MICRO-ENVIRONMENT

ACTIVITY 1
1.1 Elaborate on the meaning of the micro-environment (4)
1.2 Name any FOUR components of the micro-environment (4)
1.3 Explain the meaning of any FIVE components of the micro-environment. (10)
1.4 Read the scenario below and answer the questions that follow.
SOLLY MANUFACTURERS (SM)
Solly Manufactures specialises in the manufacturing of fashionable ladies’
sneakers and jeans. Solly also wants to sell men’s jackets and trousers in future.
SM wants to become a word-class manufacturing business. The management
of SM first identify the needs of their customers before they start producing their
products.

1.4.1 Identify THREE components of the micro-environment that applies to SM. Motivate your
answer by quoting from the scenario. (9)

Use the table below as a GUIDE to answer QUESTION 1.4.1

COMPONENTS OF THE MICRO-ENVIRONMENT MOTIVATIONS
1
2
3
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1.5 Give FIVE examples of the organisational culture (5)

1.6 Outline the purpose of the organisational culture (6)

1.7 Read the scenario below and answer the questions that follow.
TUMI MANUFACTURERS (TM)
Tumi Manufactures produces office furniture and built-in office shelves. TM buys
their manufacturing products from Jan’s suppliers. TM hired eight workers that
will be responsible for manufacturing their products. They make use of internet
and cellphones when advertising their products. The management of TM
borrowed money from Tex Bank to finance their business.

1.7.1 Identify FOUR organisational resources used by TM. Motivate your answer by quoting
from the scenario above (12)

Use the table below as a GUIDE to answer QUESTION 1.7.1

ORGANISATIONAL RESOURCES MOTIVATIONS

1
2
3
4

1.7.2 Name ONE other examples of EACH organisational resources mentioned in

QUESTION 1.7.1. (4)

Use the table below as a GUIDE to answer QUESTION 1.7.2

ORGANISATIONAL RESOURCES EXAMPLES
1
2
3
4

1.7.3 Explain any FOUR types of organisational resources. (12)

1.8 Name FOUR Factors influencing the organisation structure (4)

1.9 Explain the importance of the organisational structure (6)

1.10 Discuss any THREE types of organisational structurers (9)