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

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

Assessment Criteria The learner can: 1.1 Explain the features of business activity.

Indicative Content

1.1.1 Explain the business organisation as a transformation process. 1.1.2 Describe the different ways in which a business may structure its activities.

1.2 Discuss the complex interactions that operate between a business and its environment.

1.2.1 Discuss the complexity, volatility and uniqueness of an organisation's environment. 1.2.2 Explain the influence of shareholders on the internal environment of an organisation. 1.2.3 Outline the nature of the external environment (PEST).

1.3 Explain the need for change and its management within an individual business.

1.3.1 Discuss the need to monitor changes in the external environment. 1.3.2 Discuss the implications of environmental change for a business, 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 be overcome.

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

Assessment Criteria The learner can: 2.1 Discuss the impact of industrial and legal structure and size on organisational behaviour.

Indicative Content

2.1.1 Classify businesses by sector primary, secondary and tertiary and discuss reasons for changes in industrial structure, including concentration.

2.1.2 Apply life cycle theory to an organisation to explain the strategic choices it faces. 2.1.3 Discuss the advantages and disadvantages of different legal forms of organisation. 2.1.4 Discuss the use of franchises, licensing and joint ventures as means of doing business in both national and international spheres. 2.1.5 Distinguish between public sector and private sector organisations and their objectives. 2.1.6 Explain the advantages and disadvantages of large and small firms. 2.1.7 Discuss the reasons and methods by which businesses grow.

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

Assessment Criteria The learner can: 3.1 Discuss differing ways of analysing the environment of a business.

Indicative Content

3.1.1 Discuss the need to monitor the competitive environment of businesses. 3.1.2 Analyse a business organisation, using SWOT analysis. 3.1.3 Apply Porters Five Forces analysis of the competitive environment to a business organisation. 3.1.4 Evaluate the benefits of benchmarking as a form of environmental analysis.

3.2 Explain the impact of market structure on the behaviour 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 their impact upon other organisations and consumers.

3.3 Describe the complex interactions between business and government.

3.3.1 Describe the different ways that a government may affect business. 3.3.2 Assess the role of pressure groups and lobbyists on business and government.

3.4 Discuss the need for government intervention

3.4.1 Describe government intervention to control the competitive activities of business organisations.

and the forms it might take.

3.4.2 Outline government legislation to protect the environment and the rights of consumers and workers.

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

Assessment Criteria The learner can: 4.1 Compare and contrast alternative economic systems.

Indicative Content

4.1.1 Assess the advantages and disadvantages of centrally planned 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 of government in controlling the level and pattern of economic activity.

4.2.1 Describe the four main macro-economic objectives of government: low inflation, economic growth, low unemployment and balance of payments stability. 4.2.2 Explain the nature and characteristics of the business cycle. 4.2.3 Discuss the impact of the stages of the business cycle on business and the economy. 4.2.4 Discuss the role of fiscal policy in the control of the economy. 4.2.5 Discuss the role of monetary policy in the control of the economy. 4.2.6 Explain the limitations of government economic measures in controlling the economy.

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

Assessment Criteria The learner can: 5.1 Discuss the importance of international free trade and its operation.

Indicative Content

5.1.1 Explain the reasons for international trade and barriers to free trade. 5.1.2 Describe the importance of regional trading blocs such as ASEAN, NAFTA, SADC, CARICOM and the EU. 5.1.3 Explain the impact of exchange rate fluctuations on

international business.

5.2 Assess the main causes and implications of globalisation.

5.2.1 Discuss the main causes of globalisation. 5.2.2 Describe the advantages and disadvantages of globalisation. 5.2.3 Examine the different perspectives relating to multinational corporations, franchises and joint international ventures. 5.2.4 Assess the relationship between globalisation and culture change. 5.2.5 Discuss the limitations to globalisation.

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

Assessment Criteria The learner can: 6.1 Describe key demographic and social trends that affect business.

Indicative Content

6.1.1 Discuss the implications of demographic changes for business activity (e.g. the age profile of the countrys population). 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 of business and business activity.

6.2 Discuss Corporate Social Responsibility (CSR) and its implications for business.

6.2.1 Define the meaning of CSR and explain the different views on it. 6.2.2 Discuss the role of business in promoting ethical practices. 6.2.3 Discuss the costs and benefits to businesses of implementing environmentally friendly policies. 6.2.4 Discuss the role and importance of environmental pressure groups in influencing business activity.

6.3 Discuss the impact of technology on business and business systems.

6.3.1 Identify and describe the different forms of technological change, including the introduction of e-commerce and different applications of technology. 6.3.2 Assess the costs and benefits of changing technology on

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.