l5 the business environment dec11

7/22/2019 L5 the Business Environment Dec11

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Unit Title:The Business EnvironmentGuided Learning Hours:160Level:Level 5Number of Credits: 18

Learning Outcome 1The learner will: Understand the significance of the environment on business activity.

Assessment CriteriaThe learner can:

Indicative Content

1.1 Explain the features ofbusiness activity.

1.1.1 Explain the business organisation as a transformationprocess.

1.1.2 Describe the different ways in which a business maystructure its activities.

1.2 Discuss the complexinteractions that operatebetween a business andits environment.

1.2.1 Discuss the complexity, volatility and uniqueness of anorganisation's environment.

1.2.2 Explain the influence of shareholders on the internalenvironment of an organisation.

1.2.3 Outline the nature of the external environment (PEST).

1.3 Explain the need forchange and its

management within anindividual business.

1.3.1 Discuss the need to monitor changes in the externalenvironment.

1.3.2 Discuss the implications of environmental change for abusiness, its stakeholders and society.

1.3.3 Explain reasons for resistance to change by firms,managers and employees.

1.3.4 Describe ways in which resistance to change may beovercome.

Learning Outcome 2The learner will: Understand the structure and organisation of business.


Indicative Content

2.1 Discuss the impact ofindustrial and legalstructure and size onorganisational behaviour.

2.1.1 Classify businesses by sector primary, secondary andtertiary and discuss reasons for changes in industrialstructure, including concentration.


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2.1.2 Apply life cycle theory to an organisation to explain thestrategic choices it faces.

2.1.3 Discuss the advantages and disadvantages of differentlegal forms of organisation.

2.1.4 Discuss the use of franchises, licensing and joint venturesas means of doing business in both national and internationalspheres.

2.1.5 Distinguish between public sector and private sectororganisations and their objectives.

2.1.6 Explain the advantages and disadvantages of large andsmall firms.

2.1.7 Discuss the reasons and methods by which businessesgrow.

Learning Outcome 3The learner will: Understand the competitive and political environment facing businesses.


Indicative Content

3.1 Discuss differing waysof analysing theenvironment of a business.

3.1.1 Discuss the need to monitor the competitive environmentof businesses.

3.1.2 Analyse a business organisation, using SWOT analysis.

3.1.3 Apply Porters Five Forces analysis of the competitiveenvironment to a business organisation.

3.1.4 Evaluate the benefits of benchmarking as a form ofenvironmental analysis.

3.2 Explain the impact ofmarket structure on thebehaviour of firms.

3.2.1 Describe the characteristics of perfect competition,monopolistic competition, oligopoly and monopoly.

3.2.2 Describe forms of anti-competitive behaviour and theirimpact upon other organisations and consumers.

3.3 Describe the complexinteractions betweenbusiness and government.

3.3.1 Describe the different ways that a government mayaffect business.

3.3.2 Assess the role of pressure groups and lobbyists onbusiness and government.

3.4 Discuss the need forgovernment intervention

3.4.1 Describe government intervention to control thecompetitive activities of business organisations.


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and the forms it mighttake. 3.4.2 Outline government legislation to protect the

environment and the rights of consumers and workers.

Learning Outcome 4The learner will: Understand the impact of the macro-economic environment on business.


Indicative Content

4.1 Compare and contrastalternative economicsystems.

4.1.1 Assess the advantages and disadvantages of centrallyplanned and market economies.

4.1.2 Discuss the need for the provision of public goods and

merit goods in a mixed economy.

4.2 Analyse the role ofgovernment in controllingthe level and pattern ofeconomic activity.

4.2.1 Describe the four main macro-economic objectives ofgovernment: low inflation, economic growth, low unemploymentand balance of payments stability.

4.2.2 Explain the nature and characteristics of the businesscycle.

4.2.3 Discuss the impact of the stages of the business cycle onbusiness and the economy.

4.2.4 Discuss the role of fiscal policy in the control of theeconomy.

4.2.5 Discuss the role of monetary policy in the control of theeconomy.

4.2.6 Explain the limitations of government economic measuresin controlling the economy.

Learning Outcome 5The learner will: Understand the influence of the global economy on business.


Indicative Content

5.1 Discuss theimportance of internationalfree trade and itsoperation.

5.1.1 Explain the reasons for international trade and barriers tofree trade.

5.1.2 Describe the importance of regional trading blocs such asASEAN, NAFTA, SADC, CARICOM and the EU.

5.1.3 Explain the impact of exchange rate fluctuations on


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international business.

5.2 Assess the maincauses and implications ofglobalisation.

5.2.1 Discuss the main causes of globalisation.

5.2.2 Describe the advantages and disadvantages ofglobalisation.

5.2.3 Examine the different perspectives relating to multi-national corporations, franchises and joint internationalventures.

5.2.4 Assess the relationship between globalisation and culturechange.

5.2.5 Discuss the limitations to globalisation.

Learning Outcome 6The learner will: Understand the impact of socio-cultural influences and technology on

business decisions.


Indicative Content

6.1 Describe keydemographic and socialtrends that affect business.

6.1.1 Discuss the implications of demographic changes forbusiness activity (e.g. the age profile of the countryspopulation).

6.1.2 Assess the impact of social changes on business activity(e.g. women in the workforce).

6.1.3 Explain the impact of national culture on the conduct ofbusiness and business activity.

6.2 Discuss CorporateSocial Responsibility(CSR) and its implicationsfor business.

6.2.1 Define the meaning of CSR and explain the differentviews on it.

6.2.2 Discuss the role of business in promoting ethicalpractices.

6.2.3 Discuss the costs and benefits to businesses ofimplementing environmentally friendly policies.

6.2.4 Discuss the role and importance of environmentalpressure groups in influencing business activity.

6.3 Discuss the impact oftechnology on businessand business systems.

6.3.1 Identify and describe the different forms of technologicalchange, including the introduction of e-commerce and differentapplications of technology.

6.3.2 Assess the costs and benefits of changing technology on


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business activity.

Assessment:

Assessment method: written examination (unless otherwise stated).

Written examinations are of three hours duration.

All learning outcomes will be assessed.

Recommended Reading:Please refer to the Tuition Resources section of the Members Area of the ABE website(www.abeuk.com) for the recommended reading for this subject.

l5 the business environment dec11

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