LEARNING OUTCOME ONE| ASSESSMENT CRITERIA|
Understand theorganisational purposes ofbusinesses| 1.1 identify the purposes of different types of organisation1.2 describe the extent to which an organisation meets the objectives of different stakeholders1.3 explain the responsibilities of an organisation and strategies employed to meet them|
What is a business?
It is a system whose performance is influenced by a whole range of phenomena in its environment. It is also an organization because it is a collection of people working together in a coordinated and structured fashion to achieve one or more goals What is Environment?
Everything that surrounds a system/organization.
What is then Business environment?
The environmental influences surrounding the business is called business environment. External environment:
Everything outside an organization’s boundaries that might affect it. The uncontrollable environment.
It consists of the
* Macro environment
The conditions and forces within an organization.
The controllable environment.
* Conditions and stakeholder forces within an organization * Owners.
* Board of directors
* Employees (marketing, finance, HR, finance, production etc) * Physical work environment
* Owner: someone who has legal property rights to a business. * Board of directors: governing body elected by a corporation’s stockholders and charged with overseeing the general management of the firm. * Employees: those employed by the organization.
Physical work environment: the firm’s facilities
Why study Business Environment?
* When they fail to understand their operating environment. * When they fail to respond to change in the environment. Result: gradual decline of profitability and popularity or reputation Examples;
* Marks & Spencer