Unit 3.

23 How Businesses Operate

Level 3 15 Credits
Sample Assignment

You have gained a work experience placement within the local Chamber of
Commerce. Every year the Chamber runs a range of professional advisory services
for local businesses, and government-funded business support programmes in
addition to a membership programme.

The Business Development Manager is keen to improve their education programme

for young people hoping to set up their own businesses. He plans a series of
workshops titled ‘Introduction to Business’. He has asked you to prepare materials
for him. You will produce presentation materials, supporting notes, handouts and
workshop exercises

Task 1 –The business environment

You must produce a PowerPoint presentation in which you detail the key features of
a business environment. You should:
 Describe the types of organisations found in the public and private sectors in
a named country. You may wish to use examples from the UK or another
country with which you are more familiar
 Explain the different structures within the businesses in your selected country
and suggest reasons for the variation
 Identify a named business and describe how the local, national and global
economic environment impacts on this named business.

Extension activities:
To gain a merit grade you must also:
 Explain how and why business objectives differ between different
organisations. You must provide examples to illustrate your answer.

To gain a distinction grade you must also:

 Provide a handout in which you analyse the impact of the current national and
global environments on businesses in your named country.

LO1 AC 1.1, 1.2, 1.3

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Task 2 – Business functions

The delegates need to know about some of the functions of businesses. Produce 3
information sheets for distribution at the workshops which:
1. explain the importance of accounting for business success
2. describe the different functions carried out by the HR department in a
business
3. outline key features of employment legislation.

Extension activities:
To gain a merit grade you must also include in information sheet 2:
 An explanation of the benefits of employment legislation to employees and
businesses.

To gain a distinction grade you must also include in information sheet 3:

 An analysis of the impact of employment legislation on businesses in a named
country of your choice.
LO2, LO5 AC 2.1, AC 5.1, AC 5.2

Task 3 – Accounting workshop

Your line manager wants to run a workshop to improve delegates accounting skills.
You must provide the answers to the planned workshop activities so your line
manager can check they are correct! Provide a profit and loss account for delegates
to use.
a) Interpret the information on the profit and loss account

Extension activities:
To gain a merit grade you must also:
 using the same accounts, use business ratios to analyse business
performance

To gain a distinction grade you must:

 using a second set of accounts, inclusive of budgets, profit and loss accounts
and cash flow predictions analyse business performance

LO3 AC 3.1

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Task 4 – Teams

Working in business often involves working in a team. For some people it may also
mean managing and leading teams. It is important that delegates understand the
theories of teams, motivation and leadership. To help delegates you must:
 Carry out an analysis to determine your own and others’ roles within a team.
Write up the results of your work

 produce detailed notes which can be used to support future training events
which:
o describe the stages of team development
o assess three motivation theories
o describe different types of leadership style

Extension activities:
To gain a merit grade your notes must also:
 explain why it might be appropriate to use different leadership and
motivational styles in different situations

To gain a distinction grade your notes must also:

 evaluate how motivational theories are used in businesses to motivate
employees
 evaluate the impact of different leadership styles on employees.

LO4 AC 4.1, 4.2, 4.3, 4.4

Task 5 – customer service

Customer service is key to organisational success. Your line manager wishes to

finish the workshop with a presentation. Produce PPT slides in which you
 explain the impact of customer service on business success
 explain the benefits of customer profiling to a business.

Extension activities:
To gain a merit grade you must produce an accompanying handout which:
 analyses the impact of customer service on business success

To gain a distinction grade you must also:

 include in the handout an analysis of how customer profiling is used to help
deliver targeted customer service.

LO6 AC 6.1, 6.2

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Guidelines for assessors

The assignments submitted by learners must achieve the learning outcomes and meet the standards specified by the assessment
criteria for the unit. To achieve a merit or distinction grade, the learners must demonstrate that they have achieved all the criteria
set for these grades. Where work for the pass standard is marginal, assessors can take account of any extension work completed
by the learners. The suggested evidence listed below is how learners can demonstrate that they have met the required standards.

Task LOs and AC Suggested evidence Suggested additional Suggested additional

number PASS evidence MERIT evidence DISTINCTION
1. LO1 The learner must name a country and The learner provides a Using the named country,
AC 1.1, 1.2, provide a comprehensive description of the detailed explanation of the learner will provide an
1.3 diverse types of organisations found within why business objectives analysis of the national and
that country. Examples of both public and differ between different global environment
private sectors should be provided and a organisations. considering the separate
range of business sectors should be Appropriate examples of parts and directly relating the
included. Organisational structures need to public and private sector information to the impact on
be explained in detail with examples and organisation objectives businesses within that
reasons for the differences of structure. A must be provided to country. Statistics will be
minimum of three organisational structures illustrate the answer and used to illustrate the answer
should be exemplified. Using a named demonstrate and demonstrate depth of
business the learner provides a detailed understanding. understanding
description of the impact of the economic
environment on that business. This will
include the local economy, the national
economy and the global economy, showing
how they are related. For each the learner
will describe the impact on the named
business.
2. LO2, LO5 The explanation of the importance of The learners’ The learner must name a
AC 2.1, 5.1, accounting should be comprehensive, explanation of the country and analyse the
5.2 relating the importance of planning, benefits of employment impact of employment
budgeting and monitoring costs to business legislation must show legislation within that

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 success. The description of the HR functions detailed knowledge and country. The analysis must
should be extensive covering the diverse understanding. A show evidence of research
activities. The key features of employment balanced approach must and understanding.
legislation should provide an outline of a be evident and benefits Statistics will be used to
minimum of 2 key features for each of 4 to both employees and exemplify the impact.
pieces of employment legislation. The businesses must be
features identified must be from the most included.
current legislation.
3 LO3 All headings on the profit and loss account Using the same Using a second set of
AC 3.1 will be defined. Key information will include accounts, learners will accounting information
turnover/sales and cost of sales, operating use the profitability including budgets, profit and
profit, gross profit and gross profit margin. ratios (Return on capital loss accounts and cash flow
The learner will use this information to employed, Gross predictions, the learner will
provide level of profitability, whether the profit:sales ratio, net analyse business
organisation is carrying forward a deficit or a profit:sales ratio); performance. This analysis
surplus and areas of concern. working capital, current must demonstrate an
ratio and quick ratio to understanding of each
interpret the balance financial statement and its
sheet. Their analysis will implications for the financial
show an understanding viability of the organisation.
of the purpose of each
ratio. They will indicate
whether the company
will be able to meet
current obligations, the
relationship of current
assets to liabilities and
the liquidity of the
company.

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4 LO4 The learner must provide a comprehensive Learners need to In the evaluation of how
AC 4.1,4.2, description of the stages of team explain the appropriate motivational theories are
4.3, 4.4 development, providing evidence of use of different used in business the learner
understanding of relevant theories. A leadership and will draw on examples from
minimum of three motivational theories will motivational styles. own experience or case
be assessed. These may contrast with or Examples should be study materials to show
support each other. The learner should be provided indicating depth of understanding. The
able to compare theories as part of their when different styles evaluation of the impact of
assessment. The description of leadership can work well. Their leadership styles on
styles should include a minimum of three understanding of the employees will be balanced
styles and must be supported by theories. inappropriate use of a including both positive and
style on employees negative examples. The
should be evident learner will consider the
information from different
perspectives and make a
reasoned judgements.

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5 LO6 The learner will provide a full explanation of The analysis of the Learners will draw on their
6.1, 6.2 the impacts of customer service on business impact of customer own experience or case
and include the impacts of good and poor service on business will study material to provide
service on customers, staff and the build on the examples of how technology
organisation. The benefits of profiling will be requirements of the is used to profile customers
explained using examples of benefits to the pass criteria. In addition and deliver targeted service.
organisation and the consumer. learner will need to
demonstrate research
and evidence that
supports their
information about
impacts of customer
service on business
success. This may
include statistics and
details of increased
turnover, customer
satisfaction levels, or
profits.

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