Unit 1 Business & the business environment
Unit 1 Business & the business environment Aims and objectives
The aim of this unit is to introduce learners to a range of business activities besides extending the knowledge and understanding of different functions of an organisation and influence of stakeholders on the business. What strategies are used to organise the organisation effectively through strategic planning and organisational structures and satisfying all the stakeholders.
The learners will also explore the external and internal environmental factors and how the organisations adjust themselves to avoid the negative impacts of these factors and how these factors are used to enhance the competitive advantage of the organisations, which extend edge over competitors.
The course will also cover the internal strengths and weaknesses of the organisations and these are linked to the external environmental factors. The students will also gain the understanding through different case studies and apply the theory into practice.
The knowledge, understanding and skill sets gained in this unit will help students to choose their own preferred areas of specialism in future studies and in their professional career.
By the end of this unit a student will be able to:
- Explain the different types, size and scope of organisations.
- Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure.
- Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations.
- Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors.
Essential unit content Unit 1 Business & the business environment
LO1: Explain the different types, size and scope of organisations
Different types of organisations:
- Differences between for profit and not for profit and non-government organisations (NGOs).
- Micro, small, medium-sized enterprises (SMEs). Different business purposes, objectives and supply of goods and services.
- The range of legal structures associated with different forms of business: sole traders, partnerships and private limited companies.
Size and scope of organisations:
- Differences between large, medium-sized and small organisations including objectives and goals, market share, profit share, growth and sustainability.
- Global growth and developments of transnational, international and global organisations.
- Differences between franchising, joint ventures and licensing.
- Industrial structures and competitive analysis.
- Market forces and economic operations e.g. scarcity and choice, supply and demand, income elasticity.
- Stakeholders and responsibilities of organisations to meet different stakeholder interests and expectations.
LO2: Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure
The various functions within an organisation:
- The role of marketing, finance, human resource management and operations within an organisational context and the interrelationships.
- How functions relate to overall organisation mission and objectives.
- Different structures depending upon the size and scope of the organisation, including bureaucratic and post-bureaucratic, parent, strategic business units (SBUs), matrix and functional levels.
- Organisation structures and complexities of transnational, international and global organisations.
|Essential Unit Contents|
LO3: Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations
The context of the macro environment:
- The application of the PESTLE framework and how organisations need to monitor and forecast external influences.
- How the macro environment influences/impacts upon business activities: the impact of the digital revolution on production and consumption; the impact of social technologies; cyberspace security; emerging BRICS markets, the global shift in economic and social power and ethical and sustainable growth.
- How organisations go through the transformation process and overcome resistance to change in response to the changing market environment.
LO4: Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors
Frameworks for analysis:
- Introduction to SWOT and/or TOWS analysis and how they can assist in the decision-making process within organisations.
- Key external macro factors including the competitive environment and government intervention that influence organisations and business.
Business Case / Scenario Covering LO1 & LO2
You work as a Trainee Business Analyst for the North London Chamber of Commerce and Enterprise (NLCCE). The Chamber of Commerce and Enterprise through practical on the ground support, helps individuals to set up businesses and firms to trade locally, nationally and globally, including specific support for international trade and the impact of the business environment on businesses. Business events and conferences are regularly organised by the chamber as part of the support for business owners and prospective business owners.
The next business event titled “Organisation types, size and scope and the interrelationship of the various functions within an organisation and link to organisational structure” is coming up in July 2019 and you have been selected as a member of the group delivering the lecture on the day.
The team leader for the event has tasked you to research the different types and sizes of business they will have to compete with. You are responsible to develop a report about different types of organisations. In your report you must include organisations such as sole trader, partnerships, private, public or voluntary. You must highlight advantages and disadvantages along with some differences such as the size, scope, legal structure and objectives of these organisations. You can also discuss if these organisation operate in the primary, secondary or tertiary sector.
In your report, also provide an analysis of different types of organisations structures that your chosen organisation is working with or it may be a competitor to that organisation. In your answer you must discuss the relationship between the different organizational functions / departments and how they link to organizational objectives and structure. You must use an actual organisational chart to help your discussion in your answer.
Your findings should be presented in a Report Format to the Team Leader of the event and should include an overview of different types of organisations and the growth of the international business environment. Your report should be referenced using the Harvard referencing system. Please also provide a bibliography using the Harvard referencing system. The recommended word limit is 2,000(+ /- 10%) words, although you will not be penalised for exceeding the total word limit.
This table outlines requirements for each grade (i.e. Pass, Merit or Distinction).
|LO1 Explain the different types, size and scope of organisations.||LO1 and 2 D1 Provide a critical analysis of the complexities of different types of business structures and the interrelationships of the different organisational functions.|
|P1 Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures. P2 Explain the size and scope of a range of different types of organisations.||M1 Analyse how the structure, size and scope of different organisations link to the business objectives and product and services offered by the organisation.|
|LO2 Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure.|
|P3 Explain the relationship between different organisational functions and how they link to organisational objectives and structure.||M2 Analyse the advantages and disadvantages of interrelationships between organisational functions and the impact that can have upon organisational structure.|
In order to pass this unit, the assignment that you present for assessment needs to demonstrate that you can meet all the learning outcomes listed below.
|LO3||Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations|
|LO4||Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship with external macro factors|
Business Case / Scenario Covering LO3 & LO4
The first business event went very well and your report was well received. Participants of the first event in their feedback have expressed how beneficial and informative the event has been and also have expressed an interest in understanding the macro business environment and factors in which their businesses operate.
In response to the request, the management of North London Chamber of Commerce and Enterprise (NLCCE) have decided to organise another event titled “The impact of the macro environment and external macro factors on business operations and the interrelationship with the internal strengths and weaknesses”.
For the excellent report submitted for the first event, you have been selected again as part of the team to deliver the lecture. As part of the preparation for the event, you are to identify the positive and negative impacts the macro environment has upon business operations, supported by specific examples. Using two of your chosen organisations in the first event, you are to conduct an internal and external analysis of the organisations in order to identify strengths and weaknesses and explain how the strengths and weaknesses identified interrelate with external macro factors.
The promotion of the event has gone fantastically well with a lot of participants already registered for the event. However, a section of the registered participants have requested for a more practical and analytical understanding of the macro environment factors and organisational internal audit. To cover this section, you are to apply appropriately the PESTLE model to support a detailed analysis of the macro environment within one of your chosen organisations and a SWOT/TOWS analysis on any of your chosen organisations justifying how they influence decision-making. Finally critically evaluate the impacts that both macro and micro factors have upon business objectives and decision-making.
Your findings should be presented in a Presentation format to the Team Leader of the event and should include an overview of contemporary examples of the macro environment and external macro factors on businesses. Your presentation should be referenced using the Harvard referencing system. Please also provide a bibliography using the Harvard referencing system. The recommended word limit is 1,500 words (+ /- 10%), presentation slides with speakers notes, although you will not be penalised for exceeding the total word limit.