Unit number, Code and Title
Pearson BTEC Level 4 HND Diploma Business
Unit 1, Y/601/0546, BUSINESS ENVIRONMENT
Dr. Chuma Osuchukwu
Abimbola-Anesa – Waheed – Raziur – Vedna – Owusu - Mudassar Distribution date
7th December 2014
In this assessment you will have the opportunity to present evidence that shows you are able to: Task no.
Understand the organisational purposes of businesses
Identify the purposes of different types of organisation
Describe the extent to which an organisation meets the objectives of different stakeholders 1
Explain the responsibilities of an organisation and strategies employed to meet them 1
Understand the nature of the national environment in which businesses operate 2.1
Explain how economic systems attempt to allocate resources effectively 2
Assess the impact of fiscal and monetary policy
on business organisations and their activities
Evaluate the impact of competition policy and
other regulatory mechanisms on the activities
of a selected organisation
Understand the behaviour of organisations in their market environment 3.1
Explain how market structures determine the pricing and output decisions of businesses 3
Illustrate the way in which market forces shape organisational responses using a range of examples 3
Judge how the business and cultural
environments shape the behaviour of a
Be able to assess the significance of the global factors that shape national business activities. 4.1
Discuss the significance of international trade to UK business organisations 4
analyse the impact of global factors on UK business organisations 4
Evaluate the impact of policies of the European Union on UK business organisations. 4
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Business environment is the sum total of all external and internal factors that influence a business. The systems approach to the study of business organisations stresses the interaction between a firm’s internal and external environments. Key aspects of the internal context of business include the organisation’s structure and functions and the way they are configured in pursuit of specified organisational objectives. If the enterprise is to remain successful, constant attention needs to be paid to balancing the different influences on the organisation and to the requirement to adapt to new external circumstances. This responsibility lies essentially with the organisation’s management, which has the task of blending people, technologies, structures and environments.
Even the world’s largest and most powerful business organisations are affected by a changing business environment, a point well illustrated by the problems currently being faced by General Motors (GM), the largest car company in the world. In the first quarter of 2005, GM reported losses of over $1 billion in North America and subsequently announced its intention to close some of its plants and cut 25 000 jobs over the next three years from its North American operations. This plan follows in the wake of its job cutting exercise in GM Europe which is ultimately expected to reduce its European workforce by around 12 000 jobs, most of them in Germany. GM’s decline in fortunes has been attributed to a number of important developments: a falling market share, problems with its product mix, rising raw material prices and the soaring costs of providing healthcare...
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