BTEC Level 3 Business Environment Report: Business Analysis - Unit 01

This report, prepared for a business consultancy firm, analyzes the business environment to aid new and existing businesses in strategic decision-making. The report begins by describing different business types, including for-profit and not-for-profit organizations, and their respective purposes and ownership structures, using Toyota as an example. It then examines the role of stakeholders, including customers, employees, suppliers, and owners, and explains how they influence business objectives. The report further explores organizational structures, strategic planning, and functional areas, comparing how two contrasting businesses are organized and how their structures support their aims. The analysis extends to the external environment, detailing economic, political, legal, and social factors influencing business activities in different locations. The report concludes with an evaluation of how future changes in these factors may impact a specified business and suggests strategic actions to be taken. The report fulfills the requirements of a Pearson BTEC Level 3 Subsidiary Diploma in Business Unit 01 assignment.

Assignment Front Sheet
Qualification Unit Number and Title
Pearson BTEC Level 3 Subsidiary Diploma in Business Unit 01: Business Environment
Reg. No. Learner’s Name Assessor’s Name
Fatema Rangwala Bharmal
Hand-out Date Hand-in Date Submitted On
17/9/2019 20/11/2019
Assignment Type Summative Report
Assignment Title Business Purpose and its Environment
Assessment and Grading Criteria
To achieve a pass grade the
evidence must show that the
learner is able to:
To achieve a merit
grade the evidence
must show that, in
addition to the pass
criteria, the learner is
able to:
To achieve a distinction
grade the evidence must
show that, in addition to
the pass and merit criteria,
the learner is able to:
P1 Describe the type of business,
purpose and ownership of two
contrasting businesses [RL]
P2 Describe different stakeholders
who influence the purpose of
two contrasting businesses
[CT]
M1 Explain the points of
view of different
stakeholders seeking to
influence the aims and
objectives of two
contrasting organizations
D1 Evaluate the influence
different stakeholders exert
in one organization
[IE]
P3 Describe how two businesses
are organized [IE]
P4 Explain how their style of
organization helps them to
fulfil their purposes

P5 Describe the influence of two
contrasting economic
environments on business
activities within a selected
organisation
M2 compare the challenges
to selected business
activities within a
selected organisation, in
two different economic
environments [IE]
P6 Describe how political, legal
and social factors are
impacting upon the business
activities of the selected
organisations and their
stakeholders.
M3 Analyse how political
legal and social factors
have impacted on the
two contrasting
organisations.
D2 Evaluate how future
changes in economic political,
legal and social factors, may
impact on the strategy of a
specified organisation.
Key
IE – Independent Enquirers RL – Reflective Learners SM – Self Managers
CT – Creative Thinkers TW – Team Workers EP – Effective Participators
Learner’s Declaration
I certify the work submitted for this assignment is my own and research sources are fully
acknowledged.
Learner’s Signature:
Date:

Assignment Brief
Qualification Unit Number and Title
Pearson BTEC Level 3 Subsidiary Diploma in Business Unit 01: Business Environment
Reg. No. Learner’s Name Assessor’s Name
Ms. Fatema Rangwala Bharmal
Hand-out Date Hand-in Date Submitted On
17/09/2019 20/11/2019
Assignment Type Summative Report
Unit Aim and Purpose:
The aim of this unit is to give learners the fundamental knowledge of a range of business organizations,
and many factors that shape the nature of organizations operating in an increasingly complex business
world.
Scenario
You are employed as a business consultant in a consultancy firm. The firm has decided to prepare a
detailed report to analyse business environment that can help the new and existing businesses in
decisions regarding survival and expansion. Subsequently, you have been assigned with the task of
preparing a document that outlines relevant information about different types businesses, their
purposes and objectives along with external environment analysis. Your report shall form the basis of
decision making for existing and new businesses.
Activity 1: As a business consultant, your first task is to describe the different type of businesses from
different sectors (you could choose one in the not-for-profit sector, and the second could be a national
or global organization that has a local presence but operating in the profit sector. (P1)
Your report should include:
 Business activity: at what level your business is operating? local, national & global
 Business sector: in which sector your business falls? Primary, secondary or tertiary?
 Business purpose: write few lines what does your business do?
 Ownership of the business with reference to liability for debts: Who are the owners and who is
liable for debts?
Activity 2: The second section of the report will address stakeholders of the business. Stakeholders
are the people (individuals and groups) who have a direct or indirect interest in and influence on the
business and the way it operates.
Describe the following stakeholders and what they want from the business
 Customers
 Employees
 Suppliers
 Owners (government or trustees or shareholders)
 Pressure groups (e.g. friends of the earth)
 Employer Associations
Describe the different stakeholders who influence the purpose of these contrasting organizations. (P2)
Explain how each of the stakeholder groups have influenced the objectives of each of the businesses.
(M1)

Consider one business organization and evaluate the influence exerted by the different stakeholder
groups (D1). You should go beyond merely stating an opinion by using evidence from a variety of
sources to validate your statements
 Explain how the business has reacted or could react to the influence of the stakeholders
 Explain what the consequences of the organization’s decisions have been or might be. Justify an
appropriate course of action for the organization, taking into account the different influences of
all stakeholders.
Activity 3: Describe how two businesses are organized. This part of the report will focus on the
organizational structure and functional areas of the two businesses. How the businesses make strategic
plans and how the culmination of these three elements enable the businesses to achieve their purpose.
(P3)
a) Briefly state the purpose of an organizational structure. Draw an organizational structure for each of
your different (contrasting) businesses. If you cannot obtain a real one for your business, you can draw
one based on what you know about the company.
b) Explain the meaning of span of control and levels of hierarchy with respect to the organization
structure of both organisations.
c) Briefly explain how the work is divided in each organization. This could be by Function (departments
such as HR, sales and finance), Geography, Product or service, By team (a matrix structure)
d)Explain how each of the functions (departments) are dependent on each other. Show how the
different functional activities work together.
Activity 4: Explain how the two organizations’ structure helps them to fulfil their purposes. (P4)
The aim of private sector is to generate maximum profit, market growth and survival while the aim of
public sector is service provision, cost limitation, value for money, meeting government standards etc.
As a consultant, your task is to explain how the organization structure of the selected organizations
help them to achieve their aims.
The final section of your report should focus on one of your chosen businesses and explain its business
and economic environments.
Activity 5: A client has approached you for consultancy on expanding business in UAE and
in different countries. He has requested for a detailed analysis of the external business
environment comprising of macro-economic factors that could influence the organizations.
Your task as a business consultant is to describe how economic factors are affecting the organization
and its stakeholders in two different locations. You may choose one of the two organization and give
real examples of economic factors such as pay levels, cost of credit (interest rates) competitive
pressures, globalization, supply and demand and labor. Just choose one or two that are significant at
the moment e.g. the cost of credit. (P5)
Referring to specific activities within the business, compare the challenges presented within the two
economic environments and present the findings to your client in a power point presentation. (M2)
Activity 6: Your client is interested to explore the external business environment that could help him
in deciding for business expansion. Write a brief paragraph to list the political, social and legal factors
that could affect a business. Describe how political and legal factors are affecting both of your
prechosen organizations and their stakeholders. You should give real examples of legal and political
factors such as laws (employment etc.) or government actions (fiscal policies etc.) social factors such
as demographic changes, fertility rates, migration etc. (P6)

Explain and analyze how both of the organizations have adapted their
activities to respond to the political, legal and social pressures that are present. Refer to and provide
examples for both organizations and present your findings in the power point presentation. (M3)
Evaluate how future changes in economic, political, legal and social factors, may impact on the strategy
of the specified business. For each example suggest and justify a course of action the business should
take. (D2)
Instructions
1. An electronic copy of your assessment must be fully uploaded by the deadline date and time
2. You must submit one single PDF or MS Office Word document. Any relevant images or
screenshots must be included within the same MS Office Word or PDF document
3. Clearly indicate the Grading and AC number you address
4. Ensure that all work has been proof-read and checked prior to submission
5. Ensure that the layout of your documents are in a professional format
a. Font: Verdana
b. Font Size:
i. 14-Main heading, Bold and Underlined
ii. 12-Sub heading and Underlined
iii. 10-Body text
c. Line Spacing: 1.0 and justified
6. Check your work for plagiarism. The College has strict penalty for plagiarism and the
assignment will be cancelled if the assignment is observed for this.
7. Ensure that any file you upload is virus-free and not corrupted
8. You must NOT submit a paper copy or email of this assessment to any member of staff
9. Filing the reference checklist is compulsory
10. Visits need to be arranged and made to the organizations. For meeting the respective
managers, the college will provide a reference letter for the project and the manager of the
organization is welcome to contact the administration at the college

Answer Sheet (type your answer here)
P1-
Activity 1 : as a business consultant, your first task is to describe the different type of
business sectors (you could choose one in the not-for-profit sector , and the second
could be a national or global organization that has a local presence but operating in
the profit sector.
Business sectors
Business can be classified based on the sector of economy they belong to Economies
are normally divided into the following three sectors:
1. Primary sector - involves the retrieval and production of row materials, such as
corn, coal, wood and iron.
2. secondary sector - involves the transformation of raw or intermediate material
into goods e.g. manufacturing steel into cars, or textiles into clothing
3. Tertiary sector - is also known as service sector since it deals with all types of
services. For example, trade, banking and insurance- all are included in the service
sector.
business purposes
Another way of categorizing business is based on their purposes, which can be either
be for profit or not-for-profit.
1. Profit organizations - these organizations are established for the purpose of earning
profits, and can be any of the following :-
a. Solo proprietorship - also known as the solo trader, individual entrepreneurship or
proprietorship, is type of enterprise that is owned and run by one person and in which
there is no legal distinction between the owner and the business entity
b. General partnership - is a business arrangement by which two or more individuals agree
to share in all assets, profits, and financial and legal liabilities of a jointly - owned business.
c. Corporation - is a business entity that is owned by its shareholders, who elect a board of
directors to oversee the organizations activities. The corporation is liable for the actions
and finances of the Business the shareholders are not.
d. Limited liability company - this type has the features of a partnership and a corporation.
The members of the company have limited liability, to the extent of their investment.

e. Limited liability partnership - that if the partnership fails, creditors cannot go after a
partners personal assets or in come. Limited liability partnership are common in
professional business like law firms, accounting firms, and wealth managers.
2. Not-for-profit organizations - are the type of organization that do not earn profits for
its owners. All of the money earned by or donated to a not-for-profit organization is used
in pursuing the organizations objective and keeping its running.
Toyota
Toyota motor corporation is a Japanese multinational automobile manufacturer company.
Toyota was founded by Kiichiro on August 28, 1937. Toyota headquartered in Toyota, Aichi,
japan. It is a public Company, whose purpose is for-profit. It falls in the secondary sector as
it uses raw materials to produce machinery and other components necessary to build
automobile (Toyota, 2019).
Being a public company, it is considered a corporation, meaning that Toyota is considered a
separate entity from its owners/shareholders. Its shareholder’s own share of the company
through investments they made for the company’s purpose. Their shares in the company’s
profits are correspondent to the number of shares they own.
Ceres
Ceres is not-for-profit organization founded in 1989 by a
group of investors and environmentalists, headed by Joan
Bavaria, after an oil sill caused by Exxon Valdez. This oil spill
led to these founders wanting to encourage business to take
more responsibility of their effect on the environment. The
organization work towards achieving sustainability.
Being not-for-profit, Ceres continuously makes effort in
attracting invertors and companies to fund their activities
which are carried out in an effort to help sustain the planet’s natural resources and
reduce pollution.