Course Details

Course Name

BTEC Level 3 Diploma in Business (L 3)

Unit number

01

Unit Name

The Business Environment

Unit Credit

10

Lecturer
Hand Out
Date
Hand In Date

Learning Outcomes
LO 1.

Know the range of different businesses and their ownership

LO 2.

Understand how businesses are organised to achieve their purposes

LO 3.

Know the impact of the economic environment on businesses

LO 4.

Know how political, legal and social factors impact on business.

Learners Name and Statement of Authenticity

Learners Name: ..................................
Learners ID..........................................................

I certify that the work submitted for this assignment is my own. Any work of
others used to support my answers has been referenced and duly credited to
them.
Signature: ................................................
Date: .....................................................................

Unit Title

Unit 1: The Business Environment

Qualification

BTEC Level 3 Diploma in Business

Start Date
Deadline
Assessor

Assignment 1

Comparing two very different organisations

The main purpose of this assignment is to:

Enable you to describe the different types, purposes and ownership of businesses and to
evaluate the influence exerted by stakeholders.
Scenario
You work with a business magazine and you have been asked by your manager to
prepare background material for a reporter who is planning an article on impact of
business environment on its operations. The reporter wants to focus on two contrasting
business organisations, and has asked you to provide information covering the purpose,
ownership and the roles of different stakeholders of these two organisations.
Task 1
You need to select two organisations for your research. These two organisations could
just be a branch (or shop or office) of a larger organisation.

Describe each business according to its type, purposes and ownership.

Task 2
Every business has several stakeholders who influence its operations in different ways
and to varying degrees. For both your businesses (discussed in Task1), identify and
describe the different stakeholder groups. Consider customers, employees, suppliers,
owners, trade unions, employer associations, local and national communities, and
governments. You may present the results of your research in the form of a table
This provides evidence for P2

Assignment 2

How Businesses are organised to achieve their purposes

Scenario
Your manager was very pleased with your previous report. Your line manager has further
asked your help to prepare a handbook and cover the following topics on how an
organisation is organised to achieve its purpose. He asks that it follows on from your
report.
Task 1:
a. Organisational structures introduction
Write an introduction for your handbook, which describes the various prospects of
organisational structures.
b. Organisational structures span of control

Provide organisation charts for both organisations.

Describe the type of structure off each and its span of control.

c. Functional Areas
For both organisations, describe how the following functional areas would work

Finance
Marketing
Sales
Production
Customer Service
Human Resources

d. Strategic planning
For both organisations:

Describe its mission and values

Describe its strategic aims and objectives with an example
Describe how these would be cascade throughout the organisation
Using your aim, give a SMART objective, which could result from it

e. Influencing factors
For the two selected organisations, describe how the following issues influence
their activities:

The type of business it is, including its ownership

The business environment in which it operates
Its stakeholders
This provides evidence for P3

Task 2:
For each organisation, explain how the organisational structure and planning helps the
business to achieve its aims and objectives.
This provides evidence for P4

Task 3:
Individual stakeholders (or stakeholder groups) have different points of view about the
businesses in which they have an interest and the way they conduct their activities. They
will want to influence the aims and objectives of the organisation.
Explain the different points of view of the stakeholders in your two organisations.
This provides evidence for M1
Task 4
Now concentrate on just one of your chosen businesses. Carry out an evaluation of the
nature and degree of the influence exerted by different stakeholders in that organisation.
You will need to use evidence from different sources. You will have to make judgements
about the relative importance of different stakeholders in terms of the nature and degree
of the influence they exert.
This provides evidence for D1

This provides evidence for D1

Assignment 3

The impact of the economic environment

Scenario
You are still working at the same place. Your manager was very pleased with your
handbooks. Your manager in the company is developing a website, which organisations
can use to access a wide range of business operations particularly keen on the idea of
creating case study materials based on real companies and their business matters.
You are asked to create materials for the website based upon the companies and their
economic environment over the past 15 years have affected it.
Task 1
i.

Create a homepage, which could just be a poster or a real webpage. The first
thing to be added should be an icon titled The impact of the economic
environment.
Your home page should then show icons, which the reader can use to access
information about the companies been affected by the changing environment.
Create icons for each of the following

ii.

iii.

Demand
Supply
Changes in supply and demand
Global interaction

Your first icon, the impact of the economic environment introduces the
readers with factors that influence business activities. Create an information
sheet, which explains the in detail impact on businesses of a wide range of
changes in the economic environment.
The other four icons from Task 1 will each lead to information pages on how
these factors affect the company. Each of these information pages cover two
time periods. One will cover when the economy was in a growth period. The
other will cover the period 2008 2010 that of recession.
You are to create information pages as instructed. You should describe how

these factors affect easy jets operations during both time periods.
This provides evidence for P5
Task 2
Add a further icon to the home page created for Task 1 entitled the challenges faced by
organisations in Task 2, this icon will lead to information covering the periods 1995
2008 and 2010 with these additional information pages. This time you are to identify, and
compare the challenges the company faced because of the economic environment
during the relevant time period.

This provides evidence for M2

Assignment 4

The impact political, legal and social factors on business

Scenario
Your manager was very impressed with your work on the website. He informs you that he
wants to use the following information to create case studies. He particularly wants case
studies, which show the impact of political, legal and social factors on different
organisations. He asks for your help in this matter.
Task 1
i.

Based upon the organisations you have previously looked at in Assignments 1

& 2, prepare two case studies one for each organisation. Each case study
should cover political, legal and social factors which are affecting the activities
of the organisation. The political topics you will cover must be relevant to the
operations of the particular organisation. This information on organisation
could be to do with any activity carried out by the organisation such as
recruitment of staff, transportation of goods, advertising, promotions etc.

ii.

Repeat part (i) but this time describe a range of legal topics, which affect
organisations

iii.

Repeat part (i) but this time describe a range of social topics, which affect
organisations
This provides evidence for P6

Task 2
Create further case studies one for each organisation. This time your selected
organisation has adapted its activities because of the factors you have discussed. You
should at least select one factor from each of the three categories (one for both
organisations)
This provides evidence for M3
Task 3
Extend the case studies drawn up for Task 2 to make recommendations and you should
further develop its activities because of economic, political, legal and social
recommendations that you make.
This provides evidence for D2

TASK Checklist
P1

Describe the type of business, purpose and ownership of two

contrasting businesses

P2

Describe the different stakeholders who influence the purpose of two

contrasting businesses

P3

Describe how two businesses are organised

P4

Explain how their style of organisation helps them to fulfil their

purposes

P5

Describe the influence of two contrasting economic environments on

business activities within a selected organisation

P6

Describe how political, legal and social factors are impacting upon the
business activities of the selected organisations and their stakeholders.

M1

Explain the points of view of different stakeholders seeking to influence

the aims and objectives of two contrasting organisations

M2

Compare the challenges to selected business activities within a selected

organisation, in two different economic environments

M3

Analyse how political, legal and social factors have impacted on the two
contrasting organisations.

D1

Evaluate the influence different stakeholders exert in one organisation

D2

Evaluate how future changes in economic political, legal and social

factors, may impact on the strategy of a specified organisation.

Assessment Specification
This is an introductory unit and most groups of learners would benefit from a staged
approach to assessment, with several small assignments rather than one large one.
It is important that suitable organisations are chosen for investigation, so that learners
can acquire the information they need to achieve the assessment criteria.
For the first two learning outcomes the selected business organisations should include
both profit and not-for-profit sectors and some variation in size. Learners responses to P1
should include an accurate, but not necessarily detailed statement, as to the extent of
owners liability for debts. For P2 learners should describe each of the different types of
stakeholders listed in the unit content for their selected organisations. For P3, learners
should describe both the organisational structure with functional areas, and how the
organisation makes strategic plans. For P4, learners should explain how the organisational
structure and strategic planning help the businesses to achieve their purpose and aims.
For M1 learners explain the points of view of the different stakeholders and link the points
of view with the aims and objectives of each organisations.
For D1 learners should evaluate the influence exerted by the different types of
stakeholders for one organisation.
As an evaluation this should go beyond stating an opinion and include higher level skills
such as using evidence from different sources and assessing the validity of the evidence.
For learning outcome 3, the selected organisation(s) need to encompass different
economic environments.
This could be through using one organisation and two different phases in the economic
cycle or using two organisations operating in different economic environments, perhaps in
different parts of the world.
For P5, learners should include descriptions of at least two economic topics.
In M2, P5 is developed further to compare the challenges to selected business activities in
two different economic environments.
For D2, learners should build on M2 and evaluate the responsiveness of an organisation to
different economic environments. The advice given for D1 on the assessment of
evaluate applies equally to this criterion.
For learning outcome 4, there are two options. The first is to select one business that has
operations in two different business environments such as a UK-based business that has a
call centre in the Indian sub-continent. Alternatively, one business can be selected from
each of two different business environments.
Greater differences in political and social environments are likely to be more interesting
for learners.
However it could be possible to use different countries in Europe and for some industries
the differences between different countries in the UK could be explored, so long as the

differences are sufficient to create different business environments.

For P6, learners could describe the influence of two different political environments which
should include aspects, selected for their relevance, from the topics listed under both
political and legal sub-headings in the Unit content. Business activities can be read as any
activities carried out by the organisation to achieve its purposes. Examples include
recruitment of staff, product design, transport of goods, promotion of products etc.
Learners need to explain the influence of two different social environments on the
business activities of the organisation(s). Learners could select at least three of the most
influential social features from each environment rather than attempting to explain the
impact of a large range of social features.
To achieve M3, learners should build on P6 to explain how the organisation (s) has
adapted their activities to suit different business environments. Learners 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.
For D2, learners should develop their work from M3 and make justified recommendations
for the development of business activities in the two different business environments.

Indicative Content:
LO1 Know the range of different businesses and their ownership
Range of different businesses: local; national; international; global; public; private; not-forprofit/voluntary; sectors of business activity (primary, secondary and tertiary)
Business purposes: supply of products or services; difference between profit and not-for profit
organisations
Ownership: public, private and voluntary sectors; types of ownership (sole trader, partnerships,
private and public limited companies, government departments, government agencies, worker
cooperatives, charitable trusts); main implications of different types of ownership on businesses
(extent of liability, limitations to operation for public and charitable organisations)
Key stakeholders: customers; employees; suppliers; owners; trade unions; employer associations;
local and national communities; governments; influence of stakeholders on organisations
2 Understand how businesses are organised to achieve their purposes
Organisational structures: purpose (division of work, lines of control and communication); types of
structure (functional, geographic, product, type of customer); diagrammatic representation of
structure (organisation charts); span of control
Functional area: finance; marketing; production; customer service; sales; human resources.
Strategic planning: mission and values; development of strategic aims and objectives; cascading
of objectives throughout the organisation; strategic planning process; use of SMART (specific,
measurable, achievable, resourced, time-bound) objectives
Influencing factors: stakeholders; business environment; business type and ownership.
Different aims: private sector aims (breakeven, survival, profit maximisation, growth); public
sector aims (service provision, cost limitation, value for money, meeting government standards,
growth of range of provision)
3 Know the impact of the economic environment on businesses
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; changes
in government policy (legal, fiscal, monetary)
Demand: influenced by affordability; competition; availability of substitutes; level of Gross
Domestic Product (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 regulate global businesses)

4 Know how political, legal and social factors impact on businesses

Political: political stability; government support for different types of organisations eg private,
voluntary, public; fiscal eg levels and types of taxation; direct support eg grants, loans; providing
infrastructure eg transport; internet; enhancing skills of the working population eg education,
training, research; organisations to support businesses eg Business Link; membership of
international trading communities eg European Union
Legal: providing framework for business eg company law; protecting consumers and employees eg
contract law, employment law, consumer protection; ensuring fair and honest trading eg
competition law.
Social: demographic issues eg population growth or decline; changes in structure eg ageing;
households and families; education; attitude to work; religions; attitudes to male and female roles;
ethics

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Assessors Feedback: Unit Business Environment

Mark()
if
obtained

Assessment Criteria
P1
P2
P3
P4
P5
P6
M1
M2
M3
D1
D2

Describe the type of business, purpose and ownership of two

contrasting businesses
Describe the different stakeholders who influence the purpose of two
contrasting businesses
Describe how two businesses are organised
Explain how their style of organisation helps them to fulfil their
purposes
Describe the influence of two contrasting economic environments on
business activities within a selected organisation
Describe how political, legal and social factors are impacting upon the
business activities of the selected organisations and their stakeholders.
Explain the points of view of different stakeholders seeking to influence
the aims and objectives of two contrasting organisations
Compare the challenges to selected business activities within a selected
organisation, in two different economic environments
Analyse how political, legal and social factors have impacted on the two
contrasting organisations.
Evaluate the influence different stakeholders exert in one organisation
Evaluate how future changes in economic political, legal and social
factors, may impact on the strategy of a specified organisation.

A clear understanding of the topic is shown

The use of relevant models, theories and methods are applied
The script is Presented clearly and with a coherent Structure
Referencing is provided for citation and research work.
Appropriate conclusions are drawn.

Detailed Comments/Recommendations:

Result: PASS

REFERRED

Assessors Signature:

Date:

IVs Signature (If applicable):

Date:

EVs Signature (If applicable):

Date:

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