Unit 01 Business Business Environment
Unit 01 Business Business Environment Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures
Expected answer guideline: Learner needs to identify purposes of different types of organization. Learner can discuss private, public, voluntary, co-operative and charitable organizations nature and their structures. Discuss the range of legal structures associated with different forms of business: sole traders, partnerships and private limited companies.
- The aim is to discuss the various types of organisations and their purpose, students are expected to analyse the environment in which the organisations operate in. Discuss the legal structures of the specific of the public limited company (PLC) and the not for profit (NGO).
P2: Explain the size and scope of a range of different types of organisations.
Expected answer guideline: Learner should select at least two organisations from each type above and explain their size and scope-Differences between large, medium-sized and small organisations including objectives and goals, market share, profit share, growth and sustainability. Discuss Global growth and developments of transnational, international and global organisations. Discuss Market forces and economic operations e.g. scarcity and choice, supply and demand, income elasticity.
- The aim is to mention the different scales of the organisations, such as multinational corporation (MNC), small to medium enterprise (SME) and the sole traders. Analyse the differences in the business environment perspective to conclude and distinguish the different way of trading.
P3: Explain the relationship between different organisational functions of First Group or any other organisation of your choice and how they link to organisational objectives and structure.
Expected answer guideline: Learner should explain the following functions of Logica or any other selected organisation: (i) marketing,(ii) operation/production, (iii) finance, (iv) human resources. You need to explain various types of organisational structure e.g functional structure, divisional structure, Strategic Business Units, and matrix. You need to establish relationships between the functions, objectives and structure.
- The functions of the organisational structure and the purpose according to the organisational objectives are to be described in details. Different types of business have different hierarchal structure i.e., divisional, matrix, horizontal or vertical. Strategic business units (SBU) can also be used as an example to demonstrate the link and the objectives of the organisation.
Unit 01 Business Business Environment
LO3 & LO4 (Task 02):
P4: Identify the positive and negative impact the macro environment has upon business operations of any other organisation of your choice.
Expected answer guideline: Learner should use PESTEL to find out how the above chosen organisation’s operations are positively and negatively affected by business environment. You should also show the organisation response to the changes.
- Business operation should be focused upon with the evaluation of the macro environment using the PESTLE tool to navigate the positive and the negative outcome along with the effects the evaluation creates for the organisation. It is also advisable to conclude the actions and the theory in which the organisation is willing to undertake, in accordance to the macro analysis.
P5: Conduct internal and external analysis of any other organisations of your choice in order to identify strengths and weaknesses.
Expected answer guideline: Carry out SWOT analysis of First group or any other organisation of your choice with a strong emphasis on strengths and weaknesses.
- The micro and macro environment should be discussed, using the SWOT tool analyse the internal and the external factors that contribute to the action plan of the organisation. For the external analysis consider the opportunity and the threats for the chosen organisation.
P6: Explain how strengths and weaknesses interrelate with external macro factors of any other organisation of your choice.
Expected answer guideline: Explain the relationships of “Strengths and Weaknesses” with the “PESTEL” factors of the environment.
- Explain how the SWOT is influenced and connected with the macro factors of the organisation, the details can be derived by implementing the analysing tools such as the PESTLE and the SWOT for the chosen organisation.
- BARON, P. (2012) Business and its Environment. 7th Ed. London: Prentice Hall.
- PALMER, A. and HARTLEY, B. (2011) The Business Environmen 7th Ed. Maidenhead: McGraw-Hill.
- WEATHERLEY, P. (Editor) and OTTER, D. (Editor) (2014) The Business Environment: Themes and Issues in a Globalised World. 3rd Ed. Oxford: Oxford University Press.
- WORTHINGTON, I. and BRITTON. C. (2014) The Business Environment. 7th Ed. Harlow Pearson.