Effectiveness in the Business World

This assignment analyzes the concept of business effectiveness as achieving organizational goals. It examines how operational functions are influenced by external factors such as political, economic, and technological changes. The impact of three key drivers of globalization is also discussed.

Week Contents Page Learning
outcomes
Week 1-2 Compare a UK-based charity and one of the
organisations above in terms of:
 The type of business (e.g. sole trader or not for
profit corporation)
 Purpose and Ownership
 Size and Scale
and highlight any differences between the two
businesses.
3 LO2
Week 3-4 What does Pestle stand for and why is it used?
Describe how economic, technological and political factors may
impact the business activities of one organisation.
4 LO1
Week 5-6
LO4
Choose a product or service that has a high consumer
demand and explain how the following influences affect the

6 demand for the product or service chosen.
Internal Influences External Influences
Perceptions Reference Groups
Motivations Culture & Subculture
Social Class.
5 LO3
Week 9-
10Describe
three ethical
issues a
business needs
to consider in
its operational
activities in
relation to a) its
employees and
b) society in
general. Focus
on a current
organisation.
Comment
briefly on the
advantages and
disadvantages
of operating
ethically in
each case.
Week 7-8
List three drivers of globalization and explain how they
influenced the events of a current business news story (published
in 2017).
7 LO4
Total word limit: 1500 words (+/- 10%)
This Portfolio is a working document that MUST be completed over the 11-week course. For some of the
tasks, you are required to apply concepts and theories discussed during lectures to business news stories.
By the end of the 10 week course, you should have completed 5 tasks. You will also be required to work on
your Portfolio during your weekly tutorial session.
Below are some companies you may choose to discuss and news sources that can be used to find
information about them.
Possible Companies to Discuss:
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Possible News Sources:
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ASSESSMENT - PORTFOLIO
Week Task 1 Word
Count
Mark
Week
1-2
LO2
Compare a UK-based charity and one of the
organisations above in terms of:
 The type of business (e.g. sole trader or Not for profit
corporation)
 Purpose and Ownership
 Size and Scale
and highlight any differences between the two businesses
300
Words
20
Marks
Business/Charity:
There are three types of organisational sector namely private, public and voluntary. Sole
traders are closely held and operated by an individual or a group of stakeholders. They
are responsible for running or financing the business. There is no role of government
body here. Tesco can be the best example of sole trader company. Their motive is to earn
more and more profit and spread their business all over the world. On the contrary, public
organisations are run and headed by government body (Cosgrove and Rijsberman, 2014).
Their aim is not to earn profit. British Airways can be the best example of public
company. There exist a third sector that is known as voluntary corporation or non- profit
organisation. They are not government owned but has the aim to do social welfare.
Example – the guardian.
British Airways The Guardian
No. of employees 39309 40533
No. of customers 43.3 million 17 million readers per month
Areas served All over the globe London, UK
Total turnover 11,333 million Euro 10 million Euro
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Week Task 2 Word
Count
Mark
Week
3-4
LO1
What does Pestle stand for and why is it used?
Describe how economic, technological and political factors may
impact the business activities of one organisation.
300
Words
20
Marks
Business:
Pestle stands for political, economical, social, technological, legal and environmental
factors. This is used for analysing the impact of macro-environment on the business
operations of organisation. This can be positive or negative. The pestle analysis of British
Airways are listed below:
 Political factor: British Airways is a leading international airline that are
operating its business in more more than 450 destinations in all over the world.
The stability of politics and the conceptualisation of safety to the travellers are
some essential political factor that led its major impact on British Airways
(Fowler, 2013). But due to the increase in the terrorist attack at Brussels airport
causes a decline of IAG share price in the year of 2016. This industry needs high
regulations or norms that is led by government body. Government of several
nations of all over the world are putting forward many security measures in order
to fight the risk of violence and lawless immigration.
 Economic factor: Different economic factors such as inflation rate, rates of
revenue exchange and the complete economic climate are influencing directly on
the performance of organisation. The costing of fuels are coming as another factor
that is giving its negative impact as the price has been rises . Corporation used
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around 5.7 million tonnes of fuel in the year of 2015 only.
 Social factor: Common people are also giving its impact on the working of
corporation. People usually prefer the trusted airline industry. As it is very risky
task to travel a journey in air. They try to assure that trip goes smoothly. Civilians
also shows their focus on prices as there has been increase in their ticket costs
(Kwong, Thompson and Cheung, 2012). They are paying so but they also wants
best quality service in return. But large amount of people search for less price and
high class facilities. They compare prices of different organisations and selects
one which are giving tickets at affordable rates.
 Technological factors: Travellers are using their mobile phones and internet
facility for the purpose of checking in. It is now become a need for the company
to maintain their official websites in order to solve all the queries of customers.
In this era, environmental extenuation techniques and the capacity enhancing
technologies are developed such as Arrival management system, departure
management system and various other techniques.
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Week Task 3 Word
Count
Mark
Week
5-6
LO3
Choose a product or service that has a high consumer demand and
explain how the following influences affect the demand for the
product or service chosen.
Internal Influences External Influences
Perceptions Reference Groups
Motivations Culture & Subculture
Social Class
300
Words
20
Marks
Product/Service:
British Airways are providing a complete tour package in which all the services food,
accommodation and travelling is provided by corporation. This holiday packages is very
popular or in demand by the UK people. A wide influence (internal and external) led by
them are discussed below:
Internal influence:
 Perception: Perception is the process via which people are setting a clear vision
about the products or services of the organisation. So, they judge the services
according to that. If they understand that products of British Airways are not
good then they will not purchase or like those (Nguyen, 2012). So, it matters a
lot.
 Motivation: This also led a impact on the working of enterprise. If the
corporation will attract or motivate users by providing them best services then
this will rise the turn over of company.'
External influence:
 Reference group: They are defined as an individual or group through which
users compares themselves with. They impacts a consumer by giving an affect of
how they can perceive a given goods or services. They can also influence the
behaviours of travellers.
 Culture and subculture: This also led a major impact on the performance of
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British Airways. If travellers are of Islamic group. Then a large number of people
will used to travel in the month of Ramadan only (Rock, 2014). If they are of
Christian group, then they will commonly used to travel at the month on
Christmas and new year. This increases the booking of tickets at these months
and enhancing the turn over of firm.
 Social class: Organisation also gets impacted by social class. If a family lives in
high class society then they will take high class services so that their status will
remain maintain. This gives benefits to company as they offer high cost services
to them.
Week Task 4 Word
Count
Mark
Week
7-8
LO4
Describe three ethical issues a business needs to consider in its
operational activities in relation to a) its employees and b) society in
general. Focus on a current organisation.
Comment briefly on the advantages and disadvantages of operating
ethically in each case.
300
Words
20
Marks
Organisation:
Business ethics may be considered as critical, structured examination of how people or
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institute behaves in the commercial world. Ethical business have made world a better and
positive community. Business ethics refers to study of business situation, activities and
decision where issues of right and wrong is addressed.
 Business Ethics in relation to employee: Employee has been given some rights.
Any business plans of an organisation directly effects the working of an
organisation. Three ethical issues a business needs to consider in its operational
activities are:
 Employee behaviour: There are certain issues that an employee face with
regards to behaviour they face in a work place like how they behave with other
employees as well as how higher officials behave with their employees.
 Employee working condition: This refers to condition in which employee works
should be according to standards that was stated before. Employee must be aware
of the safety related issues that are prevalent in an organisation.
 Supplier customer relation: employee must consider their ethical issues related
to the customer or supplier relations. Like an employee working in call centre
must have good clarity in the voice. Employee must take care of the issue that
they do not falsely advertise any product.
Advantages :
 This provides security to the workers.
 This do not allow employers to exploit its employees.
Disadvantages:
 It provides employee with excess powers.
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Week Task 5 Word
Count
Mark
Week
9-10
LO4
List three drivers of globalization and explain how they influenced
the events of a current business news story (published in 2017).
300
Words
20
Marks
News Story:
Globalisation refers to making of world a global village. It is defined by certain factors
and makes a world a place where every one is connected. There are several factors that
effect and drive the globalisation. Among them three factors are as follows:
 Technological drivers : In the modern era of technology plays the biggest role in
making world a global village. Technology has provided shape for the foundation
of modern globalisation. Innovation in transportation has changed the industry.
British airways is one the largest transportation and airlines firm has grown as one
of the biggest airlines company in the world. With very fast advancements in
microprocessors and technology used in commercial airlines, it helped world
being a global village. People started to migrate from place to another very easily
in a very short duration of time. Continents have become villages and due to
increase in the people migrating from one place to another. It helped in increasing
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the exchange of cultures across the globe.
 Political Drivers: There are several treaties that are being made between different
countries. These political relation helps in increasing the collaboration and
exchange of idea and culture through out the globe. liberalized trading rules and
deregulated markets have made fares all around the world to come down. Foreign
direct investments in airlines industry due to taxes and investment laws being
made easier has encouraged the airlines company.
 Cost Drivers: Sourcing of revenue and costing vary from country to country. Due
to lowered prices of transportation especially in airlines sector has made people to
migrate from one place to another. British airways with availability of low priced
fuels have made company to lower down its ticket prices hence attracting large
number of people to migrate from one place to another.
CONCLUSION
From the above based report it has been concluded that effectiveness in the
business world is nothing but the attainment of all aims and objectives of organisation.
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The operational functionalities are impacted by external environment factors such as
political, economical, technological, etc. The impact of three drivers of globalisation are
also explained.
References:
Books & journal
Chhokar, J. S., Brodbeck, F. C. and House, R. J. eds., 2013. Culture and leadership across
the world: The GLOBE book of in-depth studies of 25 societies. Routledge.
Cosgrove, W. J. and Rijsberman, F. R., 2014. World water vision: making water
everybody's business. Routledge.
Fowler, A., 2013. Striking a balance: A guide to enhancing the effectiveness of non-
governmental organisations in international development. Routledge.
Kwong, C.C., Thompson, P. and Cheung, C.W., 2012. The effectiveness of social
business plan competitions in developing social and civic awareness and
participation. Academy of Management Learning & Education. 11(3). pp.324-
348.
Nguyen, B. D., 2012. Does the Rolodex matter? Corporate elite's small world and the
effectiveness of boards of directors. Management Science. 58(2). pp.236-252.
Rock, D., 2014. Quiet leadership. HarperCollins e-books.
Rockstuhl, T. and et. al., 2011. Beyond general intelligence (IQ) and emotional
intelligence (EQ): The role of cultural intelligence (CQ) on cross‐border
leadership effectiveness in a globalized world. Journal of Social Issues. 67(4).
pp.825-840.
Scherer, A. G. and Palazzo, G., 2011. The new political role of business in a globalized
world: A review of a new perspective on CSR and its implications for the firm,
governance, and democracy. Journal of management studies. 48(4).pp.899-931.
Online
Ethical Issues. 2017. [Online]. Available through:
<http://www.peoriamagazines.com/ibi/2007/aug/ethical-issues>. Accessed on
31st July 2017.
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