N5 Entrepreneurship 3.1


Internal environment (Business) Formal organisation


The formal organisation is the way in which the business is structured to achieve the business’s objectives. This includes the allocation of tasks and dividing people that are doing similar work into manageable units.


Examples are: • Forging of coalitions • Co-option (change the position of a potential opponent by inviting him/her into your group) • Divide and rule (create a rift between people who might jointly oppose you) • Exchange favours • Act powerfully and successfully


Informal organisation


Informal organisation develops as a result of employees’ needs that are not fulfilled by the formal business. These needs include socialising, guidance, and support to get a job done and sharing joint interests. Informal groups can become powerful and can be destructive if their goals differ from those of the business. This can undermine the business’s objective to provide an excellent customer service.


Organisational politics


Individuals use organisational politics in a business to influence others and to gain power. So-called informal tactics are used to get either personal power or positional power. (Refer to Module 4 for an explanation of power.) The perception is that organisational politics is always negative. This is not always true; if a manager knows how to make use of organisational politics, it can have positive results for the business. Excessive political behaviour can however be to the detriment of the business. Competent employees may then become disgruntled and leave. There are various methods to acquire power through organisational politics.


External environment A distinction is drawn between the direct external environment and the indirect external environment. The first refers to those elements that directly affect a business. The latter will also affect a business, but more on a long-term basis.


3.2 Direct external environment 3.2.1 Customers


This is probably the single most important day-to-day environmental force a business has to contend with. Because your business is about the customer and their needs, it is important to care for them. You should know what they want and need, and how these needs could change.


Some of those needs are: • The need for timely service • The need to feel welcome • The need to feel important • The need to be understood • The need for appreciation


36


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96  |  Page 97  |  Page 98  |  Page 99  |  Page 100  |  Page 101  |  Page 102  |  Page 103  |  Page 104  |  Page 105  |  Page 106  |  Page 107  |  Page 108  |  Page 109  |  Page 110  |  Page 111  |  Page 112  |  Page 113  |  Page 114  |  Page 115  |  Page 116  |  Page 117  |  Page 118  |  Page 119  |  Page 120  |  Page 121  |  Page 122  |  Page 123  |  Page 124  |  Page 125  |  Page 126  |  Page 127  |  Page 128  |  Page 129  |  Page 130  |  Page 131  |  Page 132  |  Page 133  |  Page 134  |  Page 135  |  Page 136  |  Page 137  |  Page 138  |  Page 139  |  Page 140  |  Page 141  |  Page 142  |  Page 143  |  Page 144  |  Page 145  |  Page 146  |  Page 147  |  Page 148  |  Page 149  |  Page 150  |  Page 151  |  Page 152  |  Page 153  |  Page 154  |  Page 155  |  Page 156  |  Page 157  |  Page 158  |  Page 159  |  Page 160  |  Page 161  |  Page 162  |  Page 163  |  Page 164  |  Page 165  |  Page 166  |  Page 167  |  Page 168  |  Page 169  |  Page 170  |  Page 171  |  Page 172