Unit 01: Business Environment

Module Instructor: Mehfuzul Haque

Email: mhaque1902@hotmail.com

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HND in Business

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Assignment Reference: Y/601/0546

Learners name and statement of authenticity

Unit 01

Learners name:.. Learners ID:....

Business Environment

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HND BUSINESS

I certify that the work submitted for this assignment is my own. Materials taken from other sources have
been duly credited and acknowledged in the bibliography.

Edexcel BTEC

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Level 5

2014

Unit 01: Business Environment

2014

Learning outcomes and assessment criteria

The aim of this unit is to provide learners with an understanding of different organisations, the
influence of stakeholders and the relationship between businesses and the local, national and global
environments. Organisations have a variety of purposes that depend on why they were established.
Some operate for profit, whilst others do not. Organisations structure themselves and operate in ways
that allow their objectives to be met. Every organisation has a range of stakeholders whose interests
need to be satisfied, but stakeholders have competing interests that may be hard to reconcile.
Businesses operate in an environment shaped by the government, competitors, consumers, suppliers,
and international factors. Learners will understand that some influences on the business environment
are direct and clear, for example taxation policies on corporate activities. Other influences are less
clear, perhaps coming from the international arena and sometimes with only an oblique impact on the
national business environment. It is within this business environment that organisations function and
have to determine strategies and a modus operandi that allow them to meet their organisational
purposes in ways that comply with the relevant legal and regulatory frameworks. In addition,
business markets take various forms and the structure of a market enables an understanding of how
organisations behave. In this unit learners will consider how different market structures shape the
pricing and output decisions of businesses, as well as other aspects of their behaviour.

Major learning outcomes (LO)

LO 1
LO 2
LO 3
LO 4

Understand the organisational purposes of businesses

Understand the nature of the national environment in which businesses operate
Understand the behaviour of organisations in their market environment
Be able to assess the significance of the global factors that shape national business activities

Assessment criteria matched against learning outcomes

Pass requirement:
To attain a PASS grade, learners need to achieve all the PASS criteria (P).
Merit requirement:
In addition to fulfilling the Pass requirement, a learner can be awarded a Merit subject to the
achievement of the following conditions:
Demonstration of good strategies to find appropriate solutions.
Valid and reasonable judgments are made on the financial results (M1).
Use of appropriate methods and techniques (M2).
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Calculations are done using the MS Excel and presentations should have a professional look
Proper presentation and communication of thorough understanding and interpretations of the
results and decisions
Distinction requirement:
In addition to fulfilling the Merit requirement, a learner can be awarded a Distinction subject to the
achievement of the following conditions:
Demonstration of critical reflection of the themes and issues in questions (D1).
Original contribution through using proper wording and justification of the decisions reached.
Possible recommendations are added and bring current issues from UK corporate scenario
(D2).
Demonstration of convincing approach and creative thinking and sufficient engagement into
the issues under consideration.
Very well drafted and exemplary analysis with maximum cohesiveness and coherence.

Assignment Scenario
Meeting global and local needs: A Siemens case study
Siemens AG is a global electrical and electronics business with a turnover of 53 billion. The business
employs over 450,000 people. The company base is in Munich, Germany. From there, executives
oversee work carried out in the name of Siemens all over the world. In the UK, Siemens plc has its
headquarters in Bracknell, Berkshire and has more than 100 offices and factories. It employs more
than 21,000 staff, 5,000 of these in manufacturing. There is hardly an aspect of our lives that is not
touched by the company's work. Siemens is a multi-sector business. The business specializes in
finding new ways to improve our quality of life and work. Businesses, health service trusts, local
authorities, government and government agencies all use Siemens expertise. This expertise includes
ICT, healthcare, transport and energy. The UK business has a turnover of more than 3 billion and
contributes 96.2 million profit to the group. Siemens contributes significantly to the UK economy
and provides a huge variety of jobs. 'Globalisation' refers to the trend where individual countries
become less influential in relation to cross-national bodies. However, as the case study will show,
meeting local needs is key to the performance of a business like Siemens'.

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Siemens is multi-national. It operates across 190 separate nation states. Executives in Germany and
across the world must make decisions in the best interests of Siemens' shareholders. Most
multinationals have many capabilities. They must make decisions about where their separate
activities should be. For Siemens it is not efficient to design and manufacture all products in all
countries. It is more efficient to concentrate manufacturing to keep economies of scale through
specialization.
One danger of being multi-national is the threat caused by currency fluctuations. The price of
products supplied from one place to another can vary because of currency changes. The value of the
Euro can rise against the US dollar. In Europe, Siemens then becomes more expensive than US
competition. It has an internal risk management function to check this threat. Steps can be taken to
avoid its damaging effects. One way of securing the UK business is by making sure that Siemens in
the UK offers a range of top class services that add value to customers' work. A customer can buy raw
materials from any supplier. The cheapest supplier, however, may not have access to technical
expertise and high levels of service. Siemens offers highly technical products with service benefits
added in. This sort of service capability drives a competitive advantage over other suppliers. This is a
deliberate strategy.
Using its worldwide presence, Siemens aims to meet the needs of a range of global markets. All its
companies report to the German parent company. To deliver value to the overall group, each separate
business must meet the needs of its own customers, wherever they are. Within every global business
there is competition between countries for investment. Siemens has established global 'centres of
excellence' that can serve the specialist needs of the entire group. The Roke Manor Research facility in
the UK serves the whole Siemens group. Any of its businesses, wherever in the world they may be,
can call upon their expertise.
In the UK, the trend at Siemens is towards providing more business services. Working in long-term
relationships with both private and public sector bodies, it is a partner in success. In this way it is
becoming an essential part of continued growth and service improvement. Through buying other
businesses, Siemens has grown to acquire different skills. Its presence within the UK now embraces
several industrial sectors. This means it can specialize. Siemens helps businesses concentrate on what
they do best, e.g. in media and broadcasting, Siemens has a 10-year deal to provide broadcast and IT
services to the BBC. They develop their 'core competency'
Siemens is working with NHS Trusts and other partners to create brand new hospitals. In Barnet and
Chase NHS Trust, it has embraced a 33-year Private Finance Initiative (PFI). The company is
providing Accident & Emergency units, medical equipment, communications, intensive therapy units
and several operating theatres. Within these facilities, Siemens is creating hospital IT and energy
management systems. These systems can integrate patient records with an electronic picture archive.
This helps to improve hospital efficiency at every level. This saves lives and makes clinical decisions
easier.
To raise standards of service, Siemens employs on-site contract managers to look after customer
relationships and technology. This means that each customer's requirements are unique. There is not
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an off-the-shelf solution for all. There is an individual response to need, based on detailed interaction
with a customer. Siemens continually acquires new businesses to offer what its customers need,
which is increasingly end-to-end integrated solutions that allow them to concentrate on their core
business. Siemens both in the UK and globally is a dynamic and responsive business.
(For more information visit http://www.siemens.co.uk/en/)
Task 1 (covered assessment criteria 1.1, 1.2, 1.3, M1 and D1)
1.1 Identify the purposes of different types of organisation
1.2 Describe the extent to which an organization meets the objectives of different stakeholders
1.3 Explain the responsibilities of an organization and strategies employed to meet these
responsibilities (Additional responsibilities such as corporate social responsibilities, legal and ethical
responsibilities, etc).
M1. Identify and find the mission and objectives of Siemens.
D1. Critically evaluate the responsibilities of Siemens to meet stakeholders objectives.
Task 2 (covered assessment criteria 2.1, 2.2, 2.3, M2 and D2)
2.1 Explain how economic systems attempt to allocate resources effectively.
2.2 Assess the impact of fiscal and monetary policy on your chosen business organisations and their
activities.
2.3 Evaluate the impact of competition policy and other regulatory mechanisms on the activities of a
selected organisation
M2. Assess the current monetary and fiscal policies impact on Siemens performance
D2. How can Siemens successfully perform their business activities in current regulatory system?
Task 3 (covered assessment criteria 3.1, 3.2, 3.3 and M3)
3.1 Explain how market structures determine the pricing and output decisions of businesses
3.2 Illustrate the way in which market forces shape organisational responses using a range of
examples
3.3 Judge how the business and cultural environments shape the behaviour of a selected organisation
M3. Explain how market structures determine the pricing and output decisions of Siemens.
Task 4 (covered assessment criteria 4.1, 4.2, 4.3, and D3)
4.1 Discuss the significance of international trade to UK business organisations.
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4.2 Analyse the impact of global factors on UK business organisations.

4.3 Evaluate the impact of policies of the European Union on UK business organisations.
D3. Demonstrate the impact of global factors on Siemens business actions.
---End of assignmentMaterials for reading and consulting:
Textbooks
Sawyer M, (ed) The UK Economy: A Manual of Applied Economics, 16th edition (OUP Oxford;
2004) ISBN: 9780199266517
Begg D Foundations of Economics, 4th edition (McGraw-Hill Higher Education, 2009) ISBN:
9780077121884
Morrison J International Business Environment: Global and Local Marketplaces in a Changing
World (Palgrave Macmillan, 2006) ISBN: 9781403936912
A & C Black Publishers Ltd Whitaker's Almanack 2010, 142nd Revised edition (A & C Black
Publishers Ltd, 2009) ISBN: 9781408113646
Journals
Harvard Business Review (Harvard Business Publishing)
The Economist (The Economist Newspaper Ltd)
The broadsheet newspapers have daily business sections. Many business stories will appear in the
news sections.
Newspapers
The broadsheet newspapers have weekly sections on business matters.
Websites
www.direct.gov.uk/en/index.htm the governments portal
www.berr.gov.uk has sections on business support, Europe, Business Law and regional development
as well as other materials
www.ac777.dial.pipex.com/bes/index.html Online journal for British Economy Survey
www.competition-commission.org.uk/ Competition Commissions web site regulates competition between companies in the UK by conducting in-depth inquiries
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www.economicsnetwork.ac.uk/journals is a directory of materials that can be

used for teaching and covers a broad spectrum of business and economics
www.ofgem.gov.uk/Pages/OfgemHome.
aspx is the web site of the Office of the Gas and Electricity Markets. Each industry regulator has a
similar site
www.bized.co.uk/ Bized provides a selection of teaching and learning resources
www.bbc.co.uk/news/business/ the BBC web sites business section
http://europa.eu/index_en.htm The website of the European Union
www.thetimes100.co.uk includes a number of business and
economics oriented case studies
Videos
Television news, current affairs and business programmes will also provide useful additional and up
to date material on business and the economy often with special features on particular business
environment subjects. Many programmes are archived and can be viewed on demand.
Resources:
1. MS Powerpoint slides handed in during the sessions.
2. Other problem sheets and hard copy documents distributed in the class.
Word Count
Learners must state the exact number of words they have used on the assignment submission form
and comply with the word count of 3,000 with a margin of +/- 10%. However, please note that the
calculations, tables, bibliography and appendices are excluded from word counts.
Plagiarism and collusion
Any act of plagiarism and collusion will be seriously dealt with according to the Edexcel plagiarism
policy. Basically, plagiarism occurs when excerpts, ideas, passages taken from other sources are not
properly acknowledged and referenced both in the body of the text and in reference. It is the learners
responsibility to ensure that they understand all Edexcel guidelines with regards to plagiarism and
what Edexcel considers to be an academic offence.
Collusion can be understood as the submission of works produced in collaboration for an assignment
based on the assessment of individual work. It is a severe academic offence to share a learners work

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with others who submit a part or the whole of it as their own work. The College has mechanisms in
place to detect plagiarism and collusion.
Learners must sign the declaration on the front of the assignment submission form.
Submission Guidance and Policies for Edexcel Students
This is an individual assignment. All parts of the assignment are required to be presented in a
professional format, MS Word processed with full citation and references following Harvard system.
Brit College strongly advises the learners to follow the guidance below:

Brit College prefers Times New Roman 12 or Arial 11 in the body of the text.
An assignment cover sheet and a receipt must be attached along with each submitted
assignment.
All assignments must have clear headings and sub-headings where necessary.
Make sure you state the word count on the title page.
Assignments must be printed in black and white.

Late Submission and Resubmission

Assignments will not be accepted for assessment by lecturers unless an extenuating
circumstances form has been filled in and duly authorized by a member of staff.
Students will receive the feedback form and guidance from the lecturer to improve in the areas
of their weaknesses on their first submission. Please note that assignments can be re-submitted
only once. A resubmitted assignment will be awarded a failed grade should it not meet the
required pass grade marks and results in retaking the module.
Please note that a resubmitted assignment will earn a maximum pass grade should it
sufficiently meet the required criteria.
A fine may also apply in case of resubmission.
Extensions and Extra-ordinary Circumstances
Extensions are only granted for documented medical reasons and/or other documented
serious interruptions relevant to your ability to study.
Please note that extensions are not allowed due to your inability to organize your work.
Should there be any extra-ordinary circumstances, the College should be made aware of this
in writing.
The college preserves the right not to accept or mark the assignment in case you failed to
inform it in time.

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Unit 01: Business Environment

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HND in Business