The Business Environment Assignment: An In-Depth Analysis of Business Structures, Functions
Level 3 Diploma in Business Management
Unit Aims
This unit aims to provide learners with an understanding of the concept of a business environment. Learners will develop an awareness of different types of business sectors and forms, as well as different business functions. Additionally, learners will be able to gain an understanding of the internal and external environments of a business, where micro and macro-economic factors have a significant influence on business activity. This will enable learners to effectively assess a business’s internal and external environments.
Learning Outcomes and Assessment Criteria
| Learning Outcome – The learner will: | Assessment Criteria – The learner can: | ||||
| 1. Understand different types of business and the sectors they operate in. | 1.1 Explain different types of business activity.
1.2 Explain different business sectors. 1.3 Compare different forms of business ownership. |
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| 2. Know about the functional areas of a business. | 2.1 State the functional areas of a business.
2.2 Describe the activities of a business’ functional areas. 2.3 Explain how different functional areas are interrelated.
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| 3. Understand the internal environment of a business. | 3.1 Explain different organisation structures.
3.2 Compare the advantages of different organisation structures. 3.3 Compare the disadvantages of different organisation structures. 3.4 Show how an organisation is structured. 3.5 Conduct a SWOT analysis on a business.
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| 4. Understand the external environment of a business. | 4.1 State the factors which form a business’ external environment.
4.2 Explain how these factors impact a business. 4.3 Explain how a business can respond to changes in its external environment. 4.4 Conduct a PESTLE analysis on a business. |
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| 5. Know about a business’s economic environment. | 5.1 Outline how different microeconomic factors impact a business.
5.2 Outline how different macroeconomic factors impact a business. 5.3 Explain why a national government influences a business’s economic environment. 5.4 Explain how the international economy influences a business’s economic environment. |
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Assignment Brief
Task 1 of 5 – Assessment Criteria 1.1, 1.2 and 1.3 are assessed in this task
Instructions
a. In no more than 100 words, explain what is meant by the following terms;
- primary business activities
- secondary business activities
- tertiary business activities.
b. In no more than 100 words, explain what is meant by the following terms;
- private sector
- public sector
- third sector.
c. (i) Produce a two-column table which;
lists the features of businesses which operate as a;
- sole trader
- partnership
- private limited company
- public limited company.
(ii) Write a 300-word essay that explains the key differences between the features of these business formats.
Task 2 of 5 – Assessment Criteria 2.1, 2.2 and 2.3 are assessed in this task
Instructions
a. Produce a two-column table which;
- lists at least five different functional areas of a business you are familiar with and
- In no more than 150 words, describe the activities of each of the functional areas.
b. Write a 400-word report that explains how these functional areas interact with each other.
Task 3 of 5 – Assessment Criteria 3.1, 3.2, 3.3, 3.4 and 3.5 are assessed in this task
Instructions
a. In no more than 100 words, explain what is meant by the following terms;
- functional structure
- divisional structure
- flat structure
- matrix structure.
b. (i) Produce a three-column table which;
lists the advantages of each type of structure and
lists the disadvantages of each type of structure.
(ii) Write a 200-word essay that explains the key differences between the advantages and disadvantages of each structure.
c. Produce an organisational structure chart for a business you are familiar with.
d. Conduct a SWOT analysis on the same business.
Task 4 of 5 – Assessment Criteria 4.1, 4.2, 4.3 and 4.4 are assessed in this task
Instructions
a. Produce a three-column table which;
- lists the generic factors that form the external business environment
- In no more than 150 words, explain how each of these factors impacts businesses and
- In no more than 150 words, explain how a business could respond when these factors change.
b. Conduct a PESTLE analysis on the same business used in task 3.
Task 5 of 5 – Assessment Criteria 5.1, 5.2, 5.3 and 5.4 are assessed in this task
Instructions
a. Produce a two-column table which;
- List at least five microeconomic factors that affect businesses and
- Give an example of how each of these factors impacts the same business from tasks 3 and 4.
b. Produce a two-column table which;
- List at least five macroeconomic factors that affect businesses and
- Give an example of how each of these factors impacts the same business from tasks 3 and 4.
c. Write a 200-word essay that explains why your national government would want to have an influence on the economics of the business environment in your
d. Write a 200-word essay that explains how the international economy influences the economics of the business environment in your
Note: To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the standards specified by all assessment criteria.
| Learning Outcomes to be met | Assessment criteria to be covered | Type of assessment | Word count
(approx. length) |
| All 1 to 5 | All AC under LO1 to LO5 | Portfolio of evidence |