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1.1 identify the purposes of different types of organisation

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1.1 identify the purposes of different types of organisation

Business Environment

Learning Outcomes Content Assessment Criteria for Pass

LO1 Understand the

organisational purposes of



Categories of organisation:


legal structure; type eg private

company, public company, government, voluntary

organisation, co-operative, charitable; sector (primary,

secondary tertiary).


1.1 identify the purposes of different

types of organisation


1.2 describe the extent to which an

organisation meets the objectives of 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



Responsibilities of organisations: stakeholder interests;

conflict of expectations; power influence matrix; satisfying

stakeholder objectives; legal responsibilities eg consumer

legislation, employee legislation, equal opportunities and

anti discriminatory legislation, environmental legislation,

health and safety legislation; ethical issues eg environment,

fair trade, global warming, charter compliance eg Banking


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


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; enterprise strategy; training and skills



2.1 explain how economic systems

attempt to allocate resources



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


Market types: perfect competition, monopoly, monopolistic

competition, oligopoly, duopoly; competitive advantage,

strategies adopted by firms; regulation of competition.


Market forces and organisational responses: supply and

demand, elasticity of demand; elasticity of supply; customer

perceptions and actions, pricing decisions; cost and output

decisions; economies of scale, the short run; the long run,

multi-national and transnational corporations; joint

ventures, outsourcing; core markets; labour market trends;

employee skills, technology; innovation; research and

development; core competencies; business environment

(political, economic, social, technical, legal, environmental);

cultural 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



Global factors: international trade and the UK economy;

market opportunities; global growth; protectionism; World

Trade Organisation (WTO); emerging markets (BRIC

economies – Brazil, Russia, India, China); EU membership;

EU business regulations and their incorporation in to UK

law; EU policies eg agriculture (CAP), business, competition,

growth, employment, education, economics and finance,

employment, environment, science and technology,


4.1 discuss the significance of

international trade to UK business



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. regional); labour movement; workforce skills; exchange

rates; trading blocs (eg monetary unions, common markets;

customs unions, free trade areas); labour costs; trade

duties; levies; tariffs; customs dues; taxation regimes;

international competitiveness; international business

environment (political, economic, social, technical, legal,

environmental); investment incentives; cost of capital;

commodity prices; intellectual property; climate change eg

Kyoto Protocol, Rio Earth Summit; third world poverty; the

group of 20 (G-20); global financial stability

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  • Title: 1.1 identify the purposes of different types of organisation
  • Price: £ 119
  • Post Date: 2018-11-10T12:29:35+00:00
  • Category: Assignment
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