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Analyse the impact of the current national and global environments on businesses in the named country

3.23 How Businesses Operate

Unit aims

To provide an overview of how businesses operate. Learners will gain knowledge and understanding of key business functions and their importance to business success.

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Assessment guidance

Assignments in accordance with awarding organisation guidance

Learning outcomes.

The learner will:


Assessment criteria.

The learner can:








1. Understand the key features of a business environment


1.1  Describe the different types of organisations found in the public and private sectors in a named country

1.2  Explain the different structures within the businesses in the named country and suggest reasons for the variation

1.3  Describe how the local, national and global economic environment impacts on a particular namedbusiness

1 M1 Explain and exemplify how and why business objectives differ between different organisations

1 D1 Analyse the impact of the current national and global environments on businesses in the named country

2. Know the importance of accounting for business

2.1 Explain the importance of accounting for business success.




3. Be able to apply key principles of accounting and present and interpret data

3.1 Present and interpret key accounting information using profit and loss accounts

3 M1 Analyse business performance using basic ratios

3 D1 Analyse business performance using ratios and accounting information including budgets, profit and loss accounts, cash

flow predictions and ratios

4. Understand the principles of managing and leading teams in organisations

4.1  Describe the stages of team development

4.2  Carry out an analysis to determine own and others’ roles within a team.

4.3  Assess three motivation theories

4.4  Describe different types of leadership style

4 M1 Explain why it might be appropriate to use different leadership and motivational styles in different situations

4 D1 Evaluate how motivational theories are used in businesses to motivate employees


4 D2 Evaluate the impact of different leadership styles on employees.

5. Know the role of the Human Resources department

5.1  Describe the different functions carried out by the HR department in a business

5.2  Outline key features of employment legislation

5 M1 Explain the benefits of employment legislation to employees and businesses

5 D1 Analyse the impact of employment legislation on businesses in a named country

6. Understand the importance of customer service to organisational success

6.1  Explain the impact of customer service on business success

6.2  Explain the benefits of customer profiling to a business.

6 M1 Analyse the impact of customer service on business success

6 D1 Analyse how customer profiling is used to help deliver targeted customer service

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