Business Environment

Aim

The aim of this unit is to provide learners with an understanding of different organisations, the influence of stakeholders and the relationship between businesses and the local, national and global environments.

Learning outcomes and assessment

LO1 Understand the organisational purposes of businesses

1.1 identify the purposes of different types of organisation

1.2 describe the extent to which an organisation meets the objectives of different stakeholders

1.3 explain the responsibilities of an organisation and strategies employed to meet them

LO2 Understand the nature of the national environment in which businesses operate

2.1 explain how economic systems attempt to allocate resources effectively

2.2 assess the impact of fiscal and monetary policy on business organisations and their activities

2.3 evaluate the impact of competition policy and other regulatory mechanisms on the activities of a selected organisation

LO3 Understand the behaviour of organisations in their market environment

3.1 explain how market structures determine the pricing and output decisions of businesses

3.2 illustrate the way in which market forces shape organisational responses using a range of examples

3.3 judge how the business and cultural environments shape the behaviour of a selected organisation

LO4 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

4.2 analyse the impact of global factors on UK business organisations

4.3 evaluate the impact of policies of the European Union on UK business organisations.