Business and the Business Environment

Demonstrate the interrelationship of the various functions within an organisation and how they link to organisational structure

The various functions within an organisation:

• The role of marketing, finance, human resource management and operations within an organisational context and the interrelationships.
• Functions in relation to overall organisation mission and objectives.

Organisational structure:

• Different structures depending on the size and scope of the organisation, including bureaucratic and post-bureaucratic, parent,
• strategic business units (SBUs), matrix and functional levels.
• The virtual organisation and flexible, fluid structures that are geographically dispersed.
Organisation structures and complexities of transnational, international and global organisations.

Use contemporary examples to demonstrate both the positive and negative influence/impact the macro environment has on business operations

The context of the macro environment:

• The different political, economic, social, technological, legal and environmental factors that influence and impact the business environment.
• The PESTLE framework as an analytical tool to monitor and forecast external influences.
• Different spatial levels of external influences, e.g. local, regional, national, international.

The macro factors that influence and impact on business activities:

• The transformation of the work environment, the changing and emerging markets, the global shift in economic and social power due to international global crisis.
• The impact of emerging digital technologies on production and consumption of products and services including:
  • Social and mobile technologies to engage and extend customer reach.
  • Cloud technologies for making business more agile, collaborative and efficient.
  • Artificial Intelligence (AI) to sustain competitive advantage.
  • Blockchain for e-commerce.
• Emerging new sectors creating new career opportunities due to new technologies e.g. data and analytics, digital advertising.
• The impacts of increased innovation and disruptive innovation.
• The growth of data analytics and business intelligence using Big Data, to inform decision making, the rise of cybersecurity and data protection.
• The impact of globalisation, e.g. changing workforce, cultural diversity.
• The growth of ethical considerations and sustainable business, e.g. equality and diversity and corporate social responsibility.

Organisation operations:

• Organisations’ responses to transformation and managing resistance to change in response to a highly volatile and changing market environment.
• Dealing with unexpected crises that affect business operations and activities, e.g. crisis management and recovery.

Determine the internal strengths and weaknesses of specific businesses and their interrelationship with external macro factors.

Frameworks for analysis:

• Introduction to SWOT and/or TOWS analysis and how they can assist in the decision-making process and feed into business planning in organisations.
• Different applications of SWOT analysis, e.g. for market positioning, commercial viability, launching a new product, methods of sales distribution.

Internal vs external factors:

• Internal factors relating to products, pricing, costs, profitability, performance, quality, people, skills, adaptability, brands, services, reputation, processes, infrastructure.
• Key external factors that inform opportunities and threats, including the competitive environment and government intervention, that influence organisations and business.