BTEC Level 3 in Business
Assignment Brief
Unit 1 | The Business Environment
BTEC Level 3 in Business
Unit 1 | The Business Environment
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Unit 1 | The Business Environment
BTEC Level 3 Diploma In Business
Introduction
Learners new to the studying of business will already be familiar with organisations
through having dealt with them as customers or employees. One of the aims of this
unit is to help learners to build on these experiences and learn to ‘walk in the shoes’
of owners, stakeholders and managers of organisations.
The unit introduces learners to a range of business activities. They will consider the purposes of
different organisations and the influence of stakeholders and how businesses organise themselves
through strategic planning and organisational structures.
Learners will then explore the dynamic nature of organisations through studying the impact of external
(political, legal and social) influences on business operations.
Next, they will study the fundamental economic principles that impact on businesses.
By studying two different business environments, learners will gain some insight into how businesses
operate in different parts of the world and how the development of a global marketplace impacts on
all businesses.
Grading Criteria
P1
describe the type of business, purpose and ownership of two contrasting businesses.
P2
describe the different stakeholders who influence the purpose of two contrasting businesses.
P3
describe how two businesses are organised.
P4
explain how their style of organisation helps them to fulfil their purposes.
P5
describe the influence of two contrasting economic environments on business activities
within a selected organisation.
P6
describe how political, legal and social factors are impacting upon the business activities
of the selected organisations and their stakeholders.
M1
explain the points of view of different stakeholders seeking to influence the aims and
objectives of two contrasting organisations.
M2
compare the challenges to selected business activities within a selected organisation, in
two different economic environments.
M3
analyse how political, legal and social factors have impacted on the two contrasting
organisations.
D1
evaluate the influence different stakeholders exert in one organisation.
D2
evaluate how future changes in economic political, legal and social factors, may impact on
the strategy of a specified organisation.
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Assignment Brief
Unit 1 | The Business Environment
BTEC Level 3 Diploma In Business
Learning Outcomes and Criteria Targeted:
Learning outcomes
Grading criteria covered
Learning outcome 1
Know the range of different businesses
and their ownership
P1, P2, M1, D1
Learning outcome 2
Understand how businesses are organised
to achieve their purposes
P3, P4
Learning outcome 3
Know the impact of the economic
environment on businesses
P5, M2
Learning outcome 4
Know how political, legal and social
factors impact on businesses.
P6, M3, D2
Assignment 1 Tasks
Grading criteria covered
Task 1a
Formal report
P1, P2, P3, P4
Task 1b
Interviews and report
M1
Task 1c
Evaluation
D1
Assignment 2 Tasks
Grading criteria covered
Task 2a
Comparison report
P5, P6, M2, M3
Task 2b
Evaluation
D2
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Assignment Brief
Unit 1 | The Business Environment
BTEC Level 3 Diploma In Business
Unit Content
1 Know the range of different businesses and their ownership
Range of different businesses: local; national; international; global; public; private; not-for-profit/
voluntary; sectors of business activity (primary, secondary and tertiary)
Business purposes: supply of products or services; difference between profit and not-for profit
organisations
Ownership: public, private and voluntary sectors; types of ownership (sole trader, partnerships,
private and public limited companies, government departments, government agencies, worker
cooperatives, charitable trusts); main implications of different types of ownership on businesses
(extent of liability, limitations to operation for public and charitable organisations)
Key stakeholders: customers; employees; suppliers; owners; trade unions; employer associations;
local and national communities; governments; influence of stakeholders on organisations
2 Understand how businesses are organised to achieve their purposes
Organisational structures: purpose (division of work, lines of control and communication); types
of structure (functional, geographic, product, type of customer); diagrammatic representation of
structure (organisation charts); span of control
Functional area: finance; marketing; production; customer service; sales; human resources
Strategic planning: mission and values; development of strategic aims and objectives; cascading
of objectives throughout the organisation; strategic planning process; use of SMART (specific,
measurable, achievable, resourced, time-bound) objectives
Influencing factors: stakeholders; business environment; business type and ownership.
Different aims: private sector aims (breakeven, survival, profit maximisation, growth); public sector
aims (service provision, cost limitation, value for money, meeting government standards, growth
of range of provision)
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Assignment Brief
Unit 1 | The Business Environment
BTEC Level 3 Diploma In Business
Unit Content
3 Know the impact of the economic environment on businesses
Economic: importance of stability; impact on business of changes in the economic environment
(growth, recession, ripple effect); levels of inflation; availability and cost of credit; labour; changes
in government policy (legal, fiscal, monetary)
Demand: influenced by affordability; competition; availability of substitutes; level of Gross Domestic
Product (GDP); needs and aspirations of consumers
Supply: Influenced by availability of raw materials and labour; logistics; ability to produce profitably;
competition for raw materials; government support
Changes in supply and demand: supply and demand curves; elasticity of demand; price
sensitivity; influence of branding on price sensitivity
Global interaction: levels and types of interdependence (supply chains, ownership of businesses,
movement of capital and business operations, reducing ability of national governments to regulate
global businesses)
4 Know how political, legal and social factors impact on businesses
Political: political stability; government support for different types of organisations eg private,
voluntary, public; fiscal eg levels and types of taxation; direct support eg grants, loans; providing
infrastructure eg transport; internet; enhancing skills of the working population eg education, training,
research; organisations to support businesses eg Business Link; membership of international trading
communities eg European Union
Legal: providing framework for business eg company law; protecting consumers and employees
eg contract law, employment law, consumer protection; ensuring fair and honest trading
eg competition law.
Social: demographic issues eg population growth or decline; changes in structure eg ageing;
households and families; education; attitude to work; religions; attitudes to male and female roles;
ethics
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Assignment Brief
Unit 1 | The Business Environment
BTEC Level 3 Diploma In Business
Assignment 1 Tasks
T1a
Task 1a: Formal report
P1 Describe the type of business, purpose and ownership of two contrasting
businesses
P2 Describe the different stakeholders who influence the purpose of two
contrasting businesses
P3 Describe how two businesses are organised
P4
Explain how their style of organisation helps them to fulfil their purposes.
Scenario: The government has decided that the current www.gov.uk website available to provide
advice and support to businesses is not meeting its objectives. As a result, the government has
provided funding for a number of projects to be developed which will form the basis of a new
‘Business Link’ type service.
They have offered the projects out to tender and you have been successful in providing case study
information which will be used by the new service. This project focusses on looking at two different
types of businesses which will help future business owners and leaders gain an understanding of
different business environments. This project is based on studying UK businesses but organisations
that operate in other countries as well as the UK can also be selected.
You are to investigate two businesses which are in different business sectors. It is recommended that
these businesses are easily accessible so that you can arrange meetings with key personnel who will
be able to discuss some of the main topics. You are to select:
• One private sector organisation
• One public or third sector organisation.
Your report should be divided into two sections. Each section should focus on one
business and include the following:
(P1) •
•
(P2) •
(P3) •
•
(P4) •
An overview of the type of business being investigated.
An explanation of the purpose of the business, its ownership model and its structure
An explanation of who the key stakeholders of the business are both internally and
externally, and an explanation of who influences the purpose of the business
A visual demonstration showing how the organisation is organised with its key functions
or departments
A description of the current strategic plans within the business, as set out in the business strategy or business plan
An explanation of how and why the structure, style and functions of the organisation
help them to meet the main aims and objectives of the business.
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Assignment Brief
Unit 1 | The Business Environment
BTEC Level 3 Diploma In Business
T1b
Task 1b: Interviews and report
M1 Explain the points of view of different stakeholders seeking to influence
the aims and objectives of two contrasting organisations.
Scenario: In order to continue your investigation into the two businesses you selected in Task 1a,
you now need to interview the stakeholders associated with each business. The questions you ask
within the interviews need to be planned and well thought out. The aim of these interviews is to find
out what each stakeholders’ point of view is, and to find out how they intend to influence the aims
and objectives of the organisation. Once you have carried out the interviews, you need to collate your
findings in a formal report.
Within the report you should:
(M1) •
Compare and contrast the differences between the two sectors
•
Include transcripts of all interviews carried out
•
Include details of your interviews and an explanation of the points of view of the
stakeholders.
T1c
Task 1c: Evaluation
D1
Evaluate the influence different stakeholders exert in one organisation.
Scenario: Using the information you collected in Task 1a and Task 1b, evaluate the influence that
different stakeholders exercise within the two organisations you have been investigating, and how this
impacts on the purpose, aims and objectives of each business.
Your evaluation should include:
(D1) •
•
An analysis of your findings from your stakeholder meetings
An explanation of how these different stakeholders influence the purpose, aims and
objectives of the business.
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Assignment Brief
Unit 1 | The Business Environment
BTEC Level 3 Diploma In Business
Assignment 2 Tasks
T2a
Task 2a: Comparison report
P5 Describe the influence of two contrasting economic environments on
business activities within a selected organisation
P6 Describe how political, legal and social factors are impacting upon the
business activities of the selected organisations and their stakeholders
M2 Compare the challenges to selected business activities within a selected
organisation, in two different economic environments
M3
Analyse how political, legal and social factors have impacted on the two
contrasting organisations.
Scenario: As a result of completing your first project, the government has now asked you to
complete a second project which looks at the effects of two different economic environments on
business. For this project, you should select one UK business and one business which is located
abroad. The businesses chosen for this project do not have to be in different business sectors,
although it is recommended that you select a large, well known international company so that you
can easily research the business which is not based in the UK. You should present your findings
within a formal report.
Project brief: Your investigation for this project must focus on how two economic environments
influence each business. Where possible, you will need to arrange meetings or telephone/email
interviews with each business to discuss certain issues. It is suggested that the focus of your
interviews is based on the impact of the current economic environment, compared with the impact
of the economic environment when the recession occurred in 2008. This crosses through different
governments and significant changes in the economy both in the UK and globally.
Your report should include:
(P5)
• A description of the differences in the business activities of the organisations between
the two different periods
(P6) • An explanation of the change in their business activities from the recession until now
(M2) • An explanation of how three political factors, three legal factors and three social factors
have influenced the business activities, impacted on stakeholders and impacted on the
challenges presented to each business, both during the recession and now
(M3) • A conclusion which analyses how political, legal and social factors have impacted on
the two organisations, and explains how the challenges differentiate,
based on each organisation’s purpose and business activity.
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Assignment Brief
Unit 1 | The Business Environment
BTEC Level 3 Diploma In Business
T2b
Task 2b: Evaluation
D2 Evaluate how future changes in economic political, legal and social
factors, may impact on the strategy of a specified organisation.
Scenario: Using the information you gathered in Task 2a, evaluate how future changes in political,
legal and social factors could impact on the strategy of each business you investigated. The
evaluation should be presented as a formal document as it will accompany the report you produced
in Task 2a.
Your evaluation should:
(D2) •
•
•
Include examples of possible political, legal and social factors which could impact on
each organisation’s business strategy in the future
Explain how those factors would influence the strategic planning of each business
Compare and contrast how each business would be influenced by future changes.
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Assignment Brief
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