Business Studies Notes TERM 1 2023 GR10

Overview

• Subject: Business Studies
• Academic Year: 2023/2024
• Institution: Meridian Karino High School
• Compiled by: W Nkosi
• Edited by: Prof. Zitha
• Aligned with Examination Guidelines (2021)

Key Topics in Business Studies

Micro Environment/Internal Environment

• Definition: Environment within which a business operates; decision-making environment
• Components:
  • Vision: Future aspirations of the business
  • Mission: Reason for business's existence
  • Objectives and Goals: Specific targets
  • Strategy: Plan to achieve goals
  • Organisational Resources: Physical, Financial, Human, Technological
  • Organisational Structure and Culture: Hierarchical setup and shared values

Organisational Resources

• Types of Resources:
  • Human Resources: Skills and knowledge
  • Natural Resources: Assets from nature
  • Physical Resources: Machinery, raw materials
  • Financial Resources: Capital, cash, loans
  • Technological Resources: IT and communication tools
• Entrepreneurial Resources: Management of production factors to generate profit

Organisational Structure

• Importance: Defines roles, authority, and responsibility; establishes hierarchy
• Types:
  • Functional: Hierarchical in nature
  • Project: Temporary teams for projects
  • Matrix: Project-focused with team staying in departments
  • Line: Direct reporting to one manager
  • Line and Staff: Advisors assist but don't manage employees

Business Functions

• Purpose: Work together to achieve goals
• General Management:
  • Sets strategy and direction
  • Coordinates business functions

Levels of Management

• Top Management: Strategic decisions, long-term planning
• Middle Management: Tactical decisions, implements top management's plans
• Lower Management: Routine decisions, first-level supervision

Administration Function

• Definition: Handling of information and data for decision-making
• Activities:
  • Information collection and storage
  • Data processing and analysis

Financial Function

• Purpose: Planning and managing funds
• Activities:
  • Determining capital needs
  • Budgeting and financial planning

Purchasing Function

• Purpose: Acquiring quality materials and services
• Activities:
  • Stock management
  • Supplier evaluation and order management

Public Relations

• Purpose: Maintain good communication with stakeholders
• Activities:
  • Media interaction
  • Direct contact with public
  • Social responsibility initiatives

Legal Aspects

• National Credit Act (NCA): Regulates credit granting
• Consumer Protection Act (CPA): Safeguards consumer rights

Important Notes

• Align activities with examination guidelines
• Understand differences in management levels and decisions
• Recognize the structure and functions within business environments