Unit 1: Business and the Business Environment

Unit 1: Business and the Business Environment

Aim:

The aim of this unit is to provide students with background knowledge and understanding of business, the functions of an organisation and the wider business environments in which organisations operate. Students will examine the different types of organisations (including for profit and not for profit), their size and scope (for instance, micro, SME, transnational and global) and how they operate.

Unit Abstract:

Students will explore the relationships that organisations have with their various stakeholders and how the wider external environments influence and shape business decision-making. 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.

Unit 1: Business and the 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.

LO1 Explain the different types, size and scope of organisations

Produce Presentation – 8 to 10 slides and Reader Notes Word count: 1 000 – 2 000 words Different types of organisations: Differences between for profit and not for profit and nongovernment 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. 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.

Unit 1: Business and the Business Environment

LO3 Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations

Evidence

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; cyber 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. Produce Report 2000 Words

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

(LO1): Explain the different types, size and scope of organisations

(LO2): Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure

Scenario: Unit 1: Business and the Business Environment

You have completed your Business course are applying for the position of a Business Analyst for a large Hotel of your choice located in central London. As part of the recruitment and selection process before you can proceed to the interview stage You have been asked to investigate the large Hotel you have selected and use your Business knowledge to prepare a written presentation with power point slides all to be presented to the HRM department The presentation prepared must:

Explain the three different types and purposes of organisations to include the public, private, voluntary sector and legal structures. Note one of the different types should include the large hotel you have selected.

Explain the size and scope of a range of different types of organisations.

Analyse how the structure, size and scope of different organisations link to the business objectives and product and services offered by the organization

Explain the relationship between different organisational functions and how they link to organisational objectives and structure.

Analyse the advantages and disadvantages of interrelationships between organisational functions and the impact that can have upon organisational structure.

Provide a critical analysis of the complexities of different types of business structures and the interrelationships of the different organisational functions. Presentation – 8 to 10 slides and Reader Notes Word count: 1 000 – 2 000 words

(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.

Scenario

You have been selected and appointed as the Business Analyst of the large Hotel Congratulations as part of your first task. You have been asked to prepare a report for the large hotel addressed to the Business development manager based on recent information and research collected by him. The hotel is currently experiencing declining number of tourists and facing new challenges from the present climate and environment and this is affecting the day to day operations and decision making. You must therefore analyze the current environmental factors that would influence or have an impact on the Hotel located in Central London and inform the Hotel accordingly. Your report must:

Identify the positives and negative impacts of the Macro environment and how they affect the business operations of the large hotel you have selected, supported by specific examples.

Apply appropriately the PESTLE model to support a detailed analysis of the macro environment within an organisation the Large Hotel selected.

Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses. Apply appropriately SWOT analysis and justify how they influence decision-making.

Critically evaluate the impacts that both macro and micro factors have upon business objectives and decision-making. Recommended Word Limit: 2 000 Report

Unit 1: Business and the Business Environment