Helping Essay

1207 words - 5 pages

HND/HNC BUSINESSUNIT HANDBOOKUNIT 1BUSINESS ENVIRONMENTAimThe aim of this unit is to provide learners with an understanding of different organisations, the influence of stakeholders and the relationship between businesses and the local, national and global environments.Unit abstractOrganisations have a variety of purposes that depend on why they were established. Some operate for profit, whilst others do not. Organisations structure themselves and operate in ways that allow their objectives to be met. Every organisation has a range of stakeholders whose interests need to be satisfied, but stakeholders have competing interests that may be hard to reconcile.Businesses operate in an environment shaped by the government, competitors, consumers, suppliers, and international factors. Learners will understand that some influences on the business environment are direct and clear, for example taxation policies on corporate activities.Other influences are less clear, perhaps coming from the international arena and sometimes with only an oblique impact on the national business environment.It is within this business environment that organisations function and have to determine strategies and a modus operandi that allow them to meet their organisational purposes in ways that comply with the relevant legal and regulatory frameworks. In addition, business markets take various forms and the structure of a market enables an understanding of how organisations behave. In this unit learners will consider how different market structures shape the pricing and output decisions of businesses, as well as other aspects of their behaviour.Learning outcomesOn successful completion of this unit a learner will:1 Understand the organisational purposes of businesses2 Understand the nature of the national environment in which businesses operate3 Understand the behaviour of organisations in their market environment4 Be able to assess the significance of the global factors that shape national business activities.Unit content1 Understand the organisational purposes of businessesCategories of organisation: legal structure; type eg private company, public company, government, voluntary organisation, co-operative, charitable; sector (primary, secondary tertiary)Purposes: mission; vision; aims; objectives; goals; values; profits; market share; growth; return on capital employed (ROCE); sales; service level; customer satisfaction; corporate responsibility; ethical issuesStakeholders: owners; customers; suppliers; employees; debtors; creditors; financial institutions (banks, mortgage lenders, credit factors); environmental groups; government agencies (central government, local authorities); trade unionsResponsibilities 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...

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