Essay on Business Environment

4773 Words Nov 6th, 2011 20 Pages
ABE Level 5 Diploma Unit Title: The Business Environment Learning Outcome: 1. Understand the significance of the environment on business activity.

Please note that the content of this Lecture Guide is listed in its recommended teaching order, rather than in numerical order.

Indicative Content: 1.1.1 Explain the business organisation as a transformation process: • Business organisations undergo a transformation process from inputs into outputs, using physical inputs plus finance and skills to produce both goods and services. • Use examples from both manufacturing and service sector organisations to illustrate the process. 1.1.2 Describe the different ways in which a business may structure its activities: • Organisational structures
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Consequently shareholders are the most powerful stakeholder group. • The wider objectives of the organisation can be discussed in this context. Examiner’s tips: Throughout the course emphasis will be on applying theory to practical business scenarios to bring the subject to life. Case studies should be used wherever relevant to look at both internal and external influences on the business organisation, with discussions on problem solving. Other factors causing a volatile environment for business, such as globalisation, can be introduced here, but will occur later in the course.

Exam questions will in many cases include short business scenarios, and be in two parts, the first part theory and the second part practical application. Recommended reading: Worthington I and Britton C ‘The Business Environment’ (6th edition Prentice Hall) Chapters 1, 2 and part of Chapter 10.

ABE Level 5 Diploma Unit Title: The Business Environment Learning Outcome: 1. Understand the significance of the environment on business activity. Indicative Content: 1.2.3 Outline the nature of the external environment (PEST): • The basic description of PEST factors should be made clear, as it is a recurring theme across the course. • PEST analysis can be used to analyse the firm’s current and future environment. 1.3.1 Discuss the need to monitor changes in the external environment: • The business organisation can be viewed as an open

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