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Business Environment

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ASSIGNMENT 1 BRIEF

|Qualification |BTEC Level 5 HND Diploma in Business |
|Unit number and title |Unit 1: Business Environment |
|Assignment issued | |Assignment due | |
|Assessor name | |

|Assignment title |Businesses and Their Interactions with National Environment |
| | |
| |This assignment encourages learners to identify purposes of different types of organization and to |
| |investigate the national environment in which businesses operate, which correspond to Learning Outcome 1 and |
| |Learning Outcome 2 of the unit/course. |
| |Scenario: |
| |You have just become an analyst in a mutual fund which operates both in Vietnam and the United Kingdom (UK). |
| |As part of the new employee training program, your direct supervisor gives you an assignment where you need |
| |to do research on different organizations in both countries as your potential investment targets. In |
| |addition, you also need to do research on economic systems of Vietnam and the United Kingdom to support your |
| |future investment decisions. At this training stage, your supervisor does not ask you to give investment |
| |recommendations. The supervisor only wants you to acquire organizational research skills. |
| |Your supervisor sets out specific tasks and asks you to write a report of around 17 pages, excluding the |
| |cover page, table of contents, list of references, and appendices. Your report needs to show insights on two |
| |main themes: (1) purposes of different organizations in Vietnam and the United Kingdom; and (2) how different|
| |macroeconomic systems affect business operations. In the first theme, you will need to write about purposes, |
| |stakeholders, and performances of different organizations. In the second theme, you will need to write about |
| |general characteristics of economic systems including regulations and competition policies in Vietnam and the|
| |United Kingdom, and possible impacts of fiscal and monetary policies on business operations. |
| |Your supervisor gives you some freedom in fulfilling the tasks. Especially, you can choose the business |
| |organizations (cases) that you deem appropriate. The specific tasks will be set out in the following |
| |sections. |
|Aim of the assignment |This assignment satisfies the following learning outcomes and assessment criteria: |
| |LO 1. Understand the organizational purposes of businesses |
| |1.1 identify the purposes of different types of organisation |
| |1.2 describe the extent to which an organisation meets the objectives of different stakeholders |
| |1.3 explain the responsibilities of an organisation and strategies employed to meet them |
| |LO 2. Understand the nature of the national environment in which businesses operate |
| |2.1 explain how economic systems attempt to allocate resources effectively |
| |2.2 assess the impact of fiscal and monetary policy on business organisations and their activities |
| |2.3 evaluate the impact of competition policy and other regulatory mechanisms on the activities of a |
| |selected organisation |
|Specific requirements |- Task 1.1. Identify the purposes of different types of organisation |
|(see Appendix for assessment |You need to write a 4-page comparative analysis of two organizations operating in Vietnam and two |
|criteria and grade descriptors) |organizations operating in the UK, regardless of their mother organizations' origin. |
| |You can choose the four organizations that you deem appropriate. The four cases cover the following |
| |organizational types: one non-profit organization and one public sector organization either in Vietnam or the|
| |UK; two large corporations with more than 1000 employees, one in Vietnam, and the other in the UK. For the |
| |two large corporations, you are encouraged to choose listed firms and find data about them on Hanoi Stock |
| |Exchange, Ho Chi Minh Stock Exchange, and London Stock Exchange. |
| |You will need to make a summary table of these organizations and give analyses, discussions, and comparisons |
| |on them. The organizational characteristics that should be focused on are: vision, mission, goals, |
| |objectives, organizational values, nature of products and services, ownership structure, customers, number of|
| |employees, market values, revenues, profits, and market share, whenever applies. In addition, you can |
| |consider other characteristics which you deem relevant to show organizational purposes. |
| |Task 1.1 produces evidence for assessment criterion 1.1. |
| |- Task 1.2. Describe the extent to which an organisation meets the objectives of different stakeholders |
| |From the four cases in Task 1.1, you can select one organization for further analysis on performance |
| |regarding stakeholders' objectives. This is a 2-page section of the report. |
| |First of all, you need to identify all major stakeholders: owners; customers; suppliers; employees; debtors;|
| |creditors; financial institutions (banks, mortgage lenders, credit factors); environmental groups; government|
| |agencies (central government, local authorities); trade unions, industries, sectors, and related |
| |communities. |
| |Next, for each of the identified stakeholder, you need to come up with relevant qualitative or quantitative |
| |measures showing the extent with which the organization meets the stakeholder's objectives. Some examples on |
| |measures are revenue growth, return on capital employed (ROCE), service level, and customer satisfaction. |
| |Finally, you need to collect data to have specific measures and give discussions on organizational |
| |performance regarding stakeholders' objectives. |
| |Task 1.2 produces evidence for assessment criterion 1.2. |
| |- Task 1.3. Explain the responsibilities of an organisation and strategies employed to meet them |
| |In continuing Task 1.1, you can pick one out of four organizations for further analysis on organizational |
| |responsibilities. This is a 2-page section of the report. |
| |First of all, you need to select three organizational responsibilities and analyze them. Some examples on |
| |responsibilities are: satisfying stakeholder objectives; legal responsibilities such as consumer legislation,|
| |employee legislation, equal opportunities and anti-discriminatory legislation, environmental legislation, |
| |health and safety legislation; ethical issues such as environment, fair trade, global warming, and charter |
| |compliance such as Banking Code. |
| |Next, you need to discuss strategies that the organization uses to meet the three selected responsibilities, |
| |which may include internal processes, human capital, information capital, and organization capital. For |
| |example, the organization can set up internal controls for environmental legislation compliance. |
| |Task 1.3 produces evidence for assessment criterion 1.3. |
| |- Task 2.1. Explain how economic systems attempt to allocate resources effectively |
| |To make effective investment decisions in the contexts of Vietnam and the UK, you need to write a 4-page |
| |section about major economic systems in these two countries. |
| |First, you need to give key macroeconomic features of Vietnam and the UK, and discuss the mechanisms, i.e. |
| |price system and central planning, with which the two economies allocate resources. Furthermore, based on |
| |literature sources, you can give discussions on how effectively these economic systems allocate resources. |
| |The key macroeconomic features that you should focus on are size (GDP, GNP); structure; population; labour |
| |force; growth; inflation; balance of payments; balance of trade; exchange rates; trading partners; public |
| |finances (revenues, expenditure); taxation; government borrowing; business behaviour such as investment, |
| |objectives, risk awareness; cost of capital; consumer behaviour; propensity to save; propensity to spend; and|
| |tastes and preferences. |
| |Task 2.1 provides evidence for assessment criterion 2.1. |
| |- Task 2.2. Assess the impact of fiscal and monetary policy on business organisations and their activities |
| |You need to write a 3-page section about: possible impact of fiscal and monetary policy of Vietnam and the UK|
| |on the two large corporations selected in Task 1.1; activities these two corporations have taken to minimize |
| |adverse effects and benefit from policy changes. You should rely on theoretical models of monetary and fiscal|
| |policy for analysis. UK examples of monetary and fiscal policy are economic goals; fiscal policy and control |
| |of aggregate demand; central and local government spending; Public Sector Net Borrowing (PSNB) and Public |
| |Sector Net Cash Requirement (PSNCR); euro convergence criteria, monetary policy; interest rates; quantitative|
| |easing; and private finance initiative (PFI). Vietnam policy examples are deposit rate ceiling, and demand |
| |stimulus packages. |
| |Task 2.2 provides evidence for assessment criterion 2.2 |
| |- Task 2.3. Evaluate the impact of competition policy and other regulatory mechanisms on the activities of |
| |a selected organisation |
| |You need to select one out of the two large corporations and write a 2-page section about possible impact of |
| |competition policy and other regulations on the selected organization's activities. UK examples of different |
| |competition policy and regulations are competition policy (up-to-date legislation including Competition Act |
| |1998, Enterprise Act 2002); Competition Commission, Office of Fair Trading; Directorate General for |
| |Competition; European Commission; sector regulators e.g. Ofgem, Ofwat, Civil Aviation Authority; Companies |
| |Acts; regional policy; industrial policy; enterprise strategy; training and skills policy. Vietnam policy |
| |examples are the Competition Law and the Anti-Dumping Ordinance. |
| |Task 2.3 provides evidence for assessment criterion 2.3 |
|Student guidelines |1. You should write this assignment in the report style, although a formal report structure will not be |
| |required. |
| |2. You should use tables, diagrams and figures where appropriate and be sure to give sources of information. |
| |3. You should include a list of references to all cited sources using the Harvard referencing system. |
| |4. Your report should be around 17 pages (excluding table of content, Executive Summary, appendices and |
| |references). You should use font Calibri size 12 with 1.5 spacing. |
|Submission requirements |Students are expected to submit hard copy of assignment |

APPENDIX: ASSESSMENT CRITERIA AND GRADE DESCRIPTORS

|Learning outcomes |Assessment criteria for PASS |Grade descriptors for MERIT |Grade descriptors for DISTINCTION |
| |To achieve a pass grade the evidence |To achieve a merit grade the |To achieve a distinction grade, |
| |must show that the learner is able to|evidence must show that, in |the evidence must show that, in |
| | |addition to the pass criteria, the |addition to the pass and merit |
| | |learner is able to |criteria, the learner is able to |
|LO1. Understand the |1.1 Identify the purposes of |1.1 Identify and apply strategies |1.1 Use critical reflection to |
|organizational purposes of |different types of organization |to find appropriate solutions |evaluate own work and justify |
|businesses |1.2 Describe the extent to which an |- Effective judgements have been |valid conclusions |
| |organization meets the objectives of |made |- Conclusions have been arrived at|
| |different stakeholders |- Complex problems with more than |through synthesis of ideas and |
| |1.3 Explain the responsibilities of |one variable have been explored |have been justified |
| |an organization and strategies |- An effective approach to study |- The validity of results has been|
| |employed to meet them |and research have been applied |evaluated using defined criteria |
| | |1.2 Select/design and apply |- Self-criticism of approach has |
| | |appropriate methods/techniques |taken place |
| | |- Relevant theories and techniques |- Realistic improvements have been|
| | |have been applied |proposed against defined |
| | |- A range of methods and techniques|characteristics for success |
| | |have been applied |1.2 Take responsibility for |
| | |- A range of resources of |managing and organizing activities|
| | |information has been used |-Autonomy/independence has been |
| | |- The selection of |demonstrated |
| | |methods/techniques/sources has been|- Substantial activities, projects|
| | |justified |or investigations have been |
| | |- The design of methods/techniques |planned, managed and organized |
| | |has been justified |- Activities have been managed |
| | |- Complex information/data has been|- The unforeseen has been |
| | |synthesized and processed |accommodated |
| | |- Appropriate learning |- The importance of |
| | |methods/techniques have been |interdependence has been |
| | |applied |recognized and achieved |
| | |1.3 Present and communicate |1.3 Demonstrate |
| | |appropriate findings |convergent/lateral/creative |
| | |- The appropriate structure and |thinking |
| | |approach has been used |- Ideas have been generated and |
| | |- Coherent, logical development of |decisions taken |
| | |principles/concepts for the |- Self-evaluation has taken place |
| | |intended audience |- Convergent and lateral thinking |
| | |- A range of methods of |have been applied |
| | |presentation have been used and |- Problems have been solved |
| | |technical language has been |- Innovation and creative thought |
| | |accurately used |have been applied |
| | |- Communication has been taken |- Receptiveness to new ideas is |
| | |place in familiar and unfamiliar |evident |
| | |contexts |- Effective thinking has taken |
| | |- The communication is appropriate |place in unfamiliar contents |
| | |for familiar and unfamiliar | |
| | |audiences and appropriate media | |
| | |have been used | |
|LO2. Understand the nature of |2.1 Explain how economic systems | | |
|the national environment in |attempt to allocate resources | | |
|which business operate |effectively | | |
| |2.2 Assess the impact of fiscal and | | |
| |monetary policy on business | | |
| |organizations and their activities | | |
| |2.3 Evaluate the impact of | | |
| |competition policy and other | | |
| |regulatory mechanisms on the | | |
| |activities of a selected organization| | |
| | | | |

Grading grid

|Pass (P) |Merit descriptor (M) |Distinction descriptor (D) |
|Pass criterion No. (P*.*) |Merit descriptor No. (M*.*) |Distinction descriptor No. (D*.*) |
|Pass criterion No. (P*.*) |Merit descriptor No. (M*.*) |Distinction descriptor No. (D*.*) |
|Pass criterion No. (P*.*) |Merit descriptor No. (M*.*) |Distinction descriptor No. (D*.*) |

|This brief has been verified as being fit for purpose |

Internal Verifier 1 | |Signature | |Date | | |Internal Verifier 2 | |Signature | |Date | | |

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...The Business Environment 1. Describe the role of business in the economy. Have you ever wondered why there are so many businesses in the world? Or why do we need them all? Business is what keeps the economy moving forward. If you think about it the more business there are out in the world the more people that have the opportunity to gain employment. Employment levels influence a range of other standard-of-living metrics, such as disposable income, home foreclosure rates and new small business startups. When business are doing well the economy benefits. For example banks are more willing to lend consumers money. Interests rates are lower some businesses even given back to the community. 2. Compare and contrast the roles of for-profit and nonprofit organizations in the economy. You would think that all business is out to make money. However that is not the case. There is such a thing as non-profit organizations. A business is an organization or economic system where goods and services are exchanged for one another or for money. Non-profit Organizations commonly known as NPO are associations, charities, cooperatives, and other voluntary organizations formed to further cultural, educational, religious, professional, or public service objectives. Their startup funding is provided by their members, trustees, or others who do not expect repayment, and who do not share in the organization's profits or losses which are retained or absorbed. Businesses pay a significant portion...

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Free Essay

The Business Environment

...The Business Environment Describe the role of business in the economy. A business is any activity that provides goods and services in an effort to earn a profit (Kelly / McGowan). The economy of the country depends upon the employment provided by big and small businesses and produces the goods and provides the services upon which we rely on in our daily lives. Businesses pay taxes to the government and allow the government to function on the tax collected from them. Hence business is the pivotal part of economy. “It is now a widely held view that a new era has dawned in which businesses must adopt a new conception of their mission, purpose and conduct, by endorsing and implementing corporate social responsibility. In The Role of Business in the Modern World, Professor David Henderson argues that now, as in the past, the primary role of business is to act as a vehicle for economic progress. This role depends upon business enterprises operating within the framework of a competitive market economy (David Henderson, “The Role of Business in the modern world, The Enterprise Institute).” Compare and contrast the roles of for profit and nonprofit organizations in the economy. Nonprofit business, like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain (Kelly / McGowan). Nonprofit organizations have to be present in the economy to create services and goods that are...

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