Unit 1 Business and business environment
Unit 1 Business
and business environment
Learning Outcomes
By the end of this unit a student will be able to:
1
Explain the different types, size and scope of organisations.
2
Demonstrate the
interrelationship of the various functions within an organisation and how they
link to organisational structure.
3
Use contemporary examples
to demonstrate both the positive and negative influence/impact the macro
environment has on business operations.
4
Determine the internal
strengths and weaknesses of specific businesses and explain their
interrelationship with external macro factors.
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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.
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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.
Organisational structure:
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.
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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; cybersecurity; 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.
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