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Unit 1 The business environment

BTEC National Business

Stretch and support
E1 Views of different stakeholders
M1 requires learners to explain the points of view of different stakeholders seeking to influence the aims and objectives of two contrasting organisations. In order to achieve M1 it is important that learners have a thorough understanding of the following points: • What are the aims and objectives of each organisation? • Who are the stakeholders for each organisation? • What does each stakeholder seek to achieve? • How will each stakeholder be able to achieve their own goals? By answering each of these questions learners will be able to focus on how and why stakeholders will try to influence the aims and objectives of each organisation. Provide an empty version of the table below for learners to complete by noting two objectives for each stakeholder in their chosen business. How many of them are the same and how many differ? For example, an objective for an employee in one business might be good working conditions, whilst in the other it might be higher wages. How will these stakeholder objectives influence the organisation’s objectives?
Corner shop Stakeholder Manager Employees Customers Convenience: opening from early morning until late evening Range of products: needs to sell necessities, e.g. toilet paper Convenience: likely to be easily accessible to local customers Range of products: needs to sell fashionable goods and services Objective 1 Objective 2 Premium hairdresser Objective 1 Objective 2

Owners Suppliers Local community

E2 Evaluating the influence of different stakeholders
D1 requires learners to evaluate the influence different stakeholders exert in one organisation. This follows on from M1. In this activity learners need to choose one organisation from Assignment task 1.2 and state which stakeholder exerts the most influence on the organisation. Learners should copy and complete the table below adding a figure from 1–10 for level of influence (10 = highly influential). To attain marks for evaluation learners must justify their viewpoint in the final column. This activity provides a basis for the evaluation required to achieve D1.
Stakeholder Manager Employees Customers Owners Suppliers Local community Influence (1–10) Justification

© Pearson Education Ltd 2010. Copying permitted for purchasing institution only. This material is not copyright free.

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Unit 1 The business environment

BTEC National Business

E3 Business in different economic environments
M2 requires learners to compare the challenges to selected business activities within a business organisation in two different economic environments. In order to complete this task learners will need to choose one organisation from the UK and one from another country. Learners should gather the information required to complete the table below.
Economic indicator UK Other country GDP Inflation Interest rate Unemployment Exchange rate Balance of payments

Learners should then write one paragraph summarising the information for each country. For each piece of data learners should also write one paragraph stating how it will impact on the business in that country. How should the firm respond to each piece of data from a functional area point of view? For example, if unemployment is high, will this affect the pricing strategy of the firm?

E4 Impact of political, legal and social factors
M3 requires learners to analyse how political, legal and social factors have impacted on two contrasting organisations. In order to achieve M3 learners need to look at each area in turn and state how they have impacted on their two contrasting organisations. For each factor, e.g. tax, learners should write one paragraph stating what impact it has had on the firm and why. Political • Corporation tax Social • Population size • Age of population Legal • One law and how it has affected each business, e.g. National Minimum Wage.

In order to achieve D2 learners need to look at how future changes in economic, political, legal and social factors might affect one organisation. In order to achieve this learners need to look at proposed changes in these factors. For their UK organisation learners need to research changes in the following factors:
Factor Economic Political Social Legal Example GDP, inflation, unemployment Corporation tax Population changes National Minimum Wage Website HM Treasury HM Treasury UK National Statistics Directgov

Information on the examples in the above table can be found at the websites listed. Learners may choose to research these examples or others of their choosing. For each example, learners should write a paragraph stating how big the impact might be on their chosen organisation. Learners should justify their opinion by saying why they think this will be the case.

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© Pearson Education Ltd 2010. Copying permitted for purchasing institution only. This material is not copyright free.

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