Business Environment

Topics: European Union, Business, World Trade Organization Pages: 9 (2176 words) Published: May 17, 2013
Division of Business|
Student Name: |
Unit 1: Business Environment| Lecturer: |
Date Issued:| Completion Date: |
Fail Pass Merit Distinction P1| P2| P3| P4| P5| P6| P7| P8| P9| P10| P11| P12| P13| P14| P15| P16| M1| M2| M3| D1| D2| D3|
Learning Outcomes:On successful completion of this unit a learner will:1. Understand the organizational purposes of businesses2. Understand the nature of the national environment in which businesses operate3. Understand the behaviour of organizations in their market environment4. Be able to assess the significance of the global factors that shape national business activities.Comments:| Assessor’s Signature: ____________ | Referred Date:________________| Late: Yes No| Internal Verification: Yes No| I declare that the work i am submitting for assessment contains no sections copied in whole or part from any other source, unless it is explicitly identified by means of quotation mark or by means of wholly indented paragraphs. I declare that i have also acknowledged such quotations by providing detailed references in an approved format. I understand that unidentified and un-referenced copying both constitutes plagiarism, which is an offence. Student Signature: ________________ Received by: ___________________ Date: ______________

Unit content

1 Understand the organizational purposes of businesses

Categories of organisation: legal structure; type e.g. private company, public company, government, voluntary organisation, co-operative, charitable; sector (primary, secondary tertiary)

Purposes: mission; vision; aims; objectives; goals; values; profits; market share; growth; return on capital employed (ROCE); sales; service level; customer satisfaction; corporate responsibility; ethical issues

Stakeholders: owners; customers; suppliers; employees; debtors; creditors; financial institutions (banks, mortgage lenders, credit factors); environmental groups; government agencies (central government, local authorities); trade unions

Responsibilities of organizations: stakeholder interests; conflict of expectations; power- influence matrix; satisfying stakeholder objectives; legal responsibilities e.g. consumer legislation, employee legislation, equal opportunities and anti-discriminatory legislation, environmental legislation, health and safety legislation; ethical issues egg environment, fair trade, global warming, charter compliance e.g. Banking Code

2 Understand the nature of the national environment in which businesses operate

Economic systems: the allocation of scarce resources; effective use of resources; type of economic system eg command, free enterprise, mixed, transitional

The UK economy: size (gross domestic product, gross national product); structure; population; labour force; growth; inflation; balance of payments; balance of trade; exchange rates; trading partners; public finances (revenues, expenditure); taxation; government borrowing; business behaviour eg investment, objectives, risk awareness; cost of capital; consumer behaviour; propensity to save; propensity to spend; tastes and preferences

Government policy: economic goals; fiscal policy: control of aggregate demand; central and local government spending; Public Sector Net Borrowing (PSNB) and Public Sector Net Cash Requirement (PSNCR); euro convergence criteria, monetary policy; interest rates; quantitative easing; private finance initiative (PFI); competition policy (up-to-date legislation including Competition Act 1998, Enterprise Act 2002); Competition Commission, Office of Fair Trading; Directorate General for Competition); European Commission); sector regulators eg Ofgem, Ofwat, Civil Aviation Authority; Companies Acts; regional policy; industrial policy;...
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