Micro Environment

Definition and Importance

• Micro Environment: Describes the immediate, localised environment surrounding a business, including internal factors and external parties that affect its capacity to serve its customers.
• Importance:
  • Provides guidance for strategy creation and competitive positioning.
  • Shapes business operations by influencing decision-making processes.
  • Vital for developing strong stakeholder relationships.

Components of the Micro Environment

• Internal Company Environment:
  • Consists of culture, management, and resources.
  • Determines the firm's efficiency in operations.
• Stakeholders:
  • Includes customers, suppliers, and competitors.
  • Directly affects customer satisfaction and market stance.
• Market Conditions:
  • Encompasses trends and consumer behaviours impacting business activities.

Interactions Between Components

• Example: A company with an innovative culture (internal component) may successfully interact with customers to adapt to changing preferences, thereby securing a competitive edge.
• Effective interaction between management and suppliers leads to superior products and strengthened market standing.

Real-life Examples

• Apple:
  • Utilises leading innovation to remain ahead of competitors.
  • Case Study: Apple's commitment to innovation is directly reflected in its market leadership through the continuous introduction of pioneering products.
  • Worked Example: Apple's supply chain management involves careful selection of suppliers, strict quality control measures, and strategic inventory management. For instance, by securing long-term contracts with key component manufacturers, Apple ensures consistent quality while reducing production costs, which ultimately speeds up their product development cycle.
• Starbucks:
  • Leverages customer feedback for ongoing service enhancements.
  • Fosters a distinctive brand culture that resonates with its clientele.

Vision, Mission Statement, Goals, and Objectives

Definitions

• Vision:
  • Definition: A clear, long-term ambition that provides directional guidance for the company.

• Mission Statement:
  • Definition: A succinct declaration of the business's purpose and methodology.
• Goals and Objectives:
  • Definition: Concrete targets the business is committed to achieving.

Connection to Organisational Culture

• Vision and Mission aid in establishing a cohesive organisational culture.
• Defined goals offer direction and encourage employee motivation.

Communication Strategies

• Internal Communication:
  • Methods: Town Hall meetings, newsletters, and digital communications.
  • Purpose: Ensures comprehensive understanding of vision and mission within the organisation.
• Leadership:
  • Exemplifies and communicates the vision and mission.

Organisational Culture: Definition and Elements

Organisational Culture: A multifaceted system of shared values and norms within a company.

Elements:

• Values: Principles such as environmental sustainability.
• Norms: Unwritten guidelines.
• Beliefs: Shared convictions.
• Symbols: Icons representing core values.
• Language: A distinct jargon reflecting identity.
• Rituals: Activities that reinforce the culture.

Influence on Employee Behaviour

• Expanded Example: At "Digital Dynamics," a culture of flexibility spurred creative innovation.
• Conversely, "Rigid Solutions" experienced a decline due to strict protocols.

Types of Culture

• Market-Oriented: Prioritises competitiveness.
• Hierarchical: Focuses on stability and structure.
• Clan: Emphasises loyalty and teamwork.
• Adhocracy: Concentrates on innovation and adaptability.

Management and Leadership

Introduction to Management vs. Leadership

• Management: Involves planning, organising, and resource control.
• Leadership: Inspires and motivates employees.

Leadership Styles

• Autocratic: Decisions are centrally made.
• Democratic: Encourages team input and participation.
• Laissez-faire: Offers independence to team members.

Refer to the flowchart for visual representation of leadership styles.

Theories of Management

• Theory X and Y:
  • Theory X: Assumes workers require supervision.
  • Theory Y: Views workers as self-driven.

Essential Leadership Skills

• Communication
• Empathy
• Decision-making
• Adaptability

Organisational Resources: Definition and Classification

Organisational Resources: The assets employed to achieve organisational objectives.

Classification:

• Human Resources: Talent and skills of employees.
• Financial Resources: Funds supporting activities.
• Physical Resources: Infrastructure and equipment.
• Informational Resources: Data driving decision-making.

Strategic Involvement

Techniques

• SWOT Analysis
• PEST Analysis
• Competitive Benchmarking

Example

Utilising SWOT and PEST analyses enhances market performance.

Role of Management

• Responsibilities: Influencing values and communication.
• Challenges: Addressing communication gaps and resource allocation challenges.

Stakeholder Engagement

Importance of Engagement:

• Workshops
• Surveys
• Focus Groups

Case Study

Effective stakeholder engagement led to improved product satisfaction.

Monitoring and Evaluation

• Assessment Methods: Utilise KPIs and performance metrics.
• Feedback Mechanisms