The Business Environment

Course Description

The aim of this unit is to provide learners with an understanding of the concept of a business environment. Learners will develop an awareness of different types of business sectors and forms as well as different business functions. Additionally, learners will be able to gain an understanding of the internal and external environments of a business, where micro and macro-economic factors have a significant influence on business activity. This will enable learners to effectively assess a business’ internal and external environments.

Course Objectives

The aim of this unit is to provide learners with an understanding of the concept of a business environment. Learners will develop an awareness of different types of business sectors and forms as well as different business functions. Additionally, learners will be able to gain an understanding of the internal and external environments of a business, where micro and macro-economic factors have a significant influence on business activity. This will enable learners to effectively assess a business’ internal and external environments.

Key Topics

1. LO1: Understand different types of business and the sectors they operate in.
2. LO2: Know about the functional areas of a business.
3. LO3: Understand the internal environment of a business.
4. LO4: Understand the external environment of a business.
5. LO5: Know about a business’ economic environment.

Course Outline

Learning Outcomes

1. LO1 Understand different types of business and the sectors they operate in.
2. 1.1 Explain different types of business activity.
3. 1.2 Explain different business sectors.
4. 1.3 Compare different forms of business ownership.
5. LO2 Know about the functional areas of a business.
6. 2.1 State the functional areas of a business.
7. 2.2 Describe the activities of a business’ functional areas.
8. 2.3 Explain how different functional areas are interrelated.
9. LO3 Understand the internal environment of a business.
10. 3.1 Explain different organisation structures.
11. 3.2 Compare the advantages of different organisation structures.
12. 3.3 Compare the disadvantages of different organisation structures.
13. 3.4 Show how an organisation is structured.
14. 3.5 Conduct a SWOT analysis on a business.
15. LO4 Understand the external environment of a business.
16. 4.1 State the factors which form a business’ external environment.
17. 4.2 Explain how these factors impact a business.
18. 4.3 Explain how a business can respond to changes in its external environment.
19. 4.4 Conduct a PESTLE analysis on a business.
20. LO5 Know about a business’ economic environment.
21. 5.1 Outline how different microeconomic factors impact a business.
22. 5.2 Outline how different macroeconomic factors impact a business.
23. 5.3 Explain why a national government influences a business’ economic environment.
24. 5.4 Explain how the international economy influences a business’ economic environment.