Assignment brief

Unit number and title Unit 1: The Business Environment

Qualification BTEC Level 3 Diploma in Business
Start Date
Finish Date
Assessor

CRITERIA COVERED
P1, P2, P3, P4, M1

P1
Research and describe one LOCAL Business (Charity) and one national large business of your choice. (E.g. Large PLC / LTD).
Identify and describe PURPOSE and OWNERSHIP before linking these to the SIZE and SCALE of each organisation. Also think
about the contrasts between these two businesses.
P2
Describe the different stakeholders who influence the purpose of the two businesses in P1 using LOCAL and NATIONAL examples.
P3
OUTLINE, and draw either by hand or on PC the Organisational chart for each Business and describe the key features of the
Organisational structure (e.g. flat or tall and functional areas)
P4
DEVELOP the work you completed for P3 by explaining how the style of each organisation helps them to fulfil their purpose and their
aims and objectives. Pay particular attention to PURPOSE and STRATEGIC PLANNING (AIMS / MISSIONS STATEMENTS).
M1
DEVELOP the work you completed for P1, P2, P3 & P4 and move into merit criteria. Explain the points of view of different
stakeholders seeking to influence the aims and objectives of the two contrasting organisations. Try to developed your PASS Criteria
thinking

CRITERIA COVERED
P5, P6, M2, M3, D1, D2

Scenario
The reporter at the business magazine you work for is really busy and he has asked you to write a series of
articles completing the following five tasks. You should be able to produce the articles as required.

Task1 –Every business is affected by the economic climate. You should include descriptions of at least two
economic topics that affect your business organisation’s activities. This may include effects from the ‘Credit-
crunch’ and the ensuing recession. It could be linked to the new economic policies prevailing the economy
including the angle of inclusion of V.A.T. in the UAE economy. You may also look into effects of BP Oil
spillage in the Gulf of Mexico or effects of carbon footprint on the economy or rising pollution levels in Beijing
china.

A)To start with give a brief explanation of the following Key terms which could affect your business:
Economic: importance of stability; impact on business of changes in the economic environment(growth,
recession, ripple effect); levels of inflation; availability and cost of credit; labour; changesin government
policy (legal, fiscal, monetary)
Demand: influenced by affordability; competition; availability of substitutes; level of Gross DomesticProduct
(GDP); needs and aspirations of consumers
Supply: Influenced by availability of raw materials and labour; logistics; ability to produce
profitably;competition for raw materials; government support
Changes in supply and demand: supply and demand curves; elasticity of demand; price sensitivity;influence
of branding on price sensitivity
Global interaction: levels and types of interdependence (supply chains, ownership of businesses,movement
of capital and business operations, reducing ability of national governments to regulateglobal businesses)

B) Once you have completed this focus on the 2 economic topics outlined in task 1and explain how each
has affected your chosen business

This provides evidence for P5

Task 2 –
You now need to compare the challenges your chosen organisationfaces in two different economic
environments.

A) Expand on your work from P5 and now compare the challenges your business faces in the
following economic environments
 1) Recession
2) Growth

This provides evidence for M2

Task 3 –

You need to describe the influence of how political, legal and social factors are impacting upon the business
activities of the selected organisations and their stakeholders.

To answer this identify 2 political, 2 legal and 2 social factors from the list below and describe how they
influence the business activities/stakeholders of your chosen businesses

Political:

 political stability;
 government support for different types of organisations e.g. private, voluntary, public;
 fiscal e.g. levels and types of taxation;
 direct support e.g. grants, loans;
 providing infrastructure e.g. transport, internet;
 enhancing skills of the working population e.g. education, training, research;
 organisations to support businesses e.g. Business Link;
 membership of international trading communities e.g. European Union

Legal:

 providing framework for business e.g. company law;

 protecting consumers and employees e.g. contract law, employment law, consumer
 protection;
 Ensuring fair and honest trading e.g. competition law.

Social:

 demographic issues e.g. population growth or decline;

 changes in structure e.g. ageing;
 householdsand families;
 education;
 attitude to work;
 religions;
 attitudes to male and female roles;
 ethics

This provides evidence for P6

Task 4 - To achieve M3, you should build on P6 to explain how Your chosen businesses has adapted their
activities to suit different business environments. You are not required to explain all activities
comprehensively but should select at least three activities that have been adapted because of the political,
legal and social aspects of the business environment.

This provides evidence for M3

Task 5 –
D1
Evaluate the influence different stakeholders exert on one organisation (Develop M1, M2 and start linking
your research to make judgements)
 D2
learners should build on M2 and evaluate the responsiveness of any one business to different economic
environments. You should develop your work from M3 and make justified recommendations for the
development of business activities in the two different business environments looking at future changes. Ie.
You must evaluate how future changes in economic, political, legal and social factors, may impact on the
strategy of one of the either businesses.

This provides evidence for D2

BH