Assignment 2 Preparation Mr Barry Business BTEC Year

Assignment 2 - Preparation Mr. Barry Business BTEC Year 12

The Task • Your manager at the Financial Times newspaper was impressed with your articles. She has asked you to write a report in two parts on: 1. How two businesses are organised and in particular, what style of organisation do they adopt 2. The challenges within the economic environment Ø The two contrasting businesses she has asked you to investigate are Marks and Spencer and the Battersea Dogs and Cats Home. Mr. Barry Business BTEC Year 12

Introduction • Describe the purpose of your report and give an outline of what you will be describing (P 3) Mr. Barry Business BTEC Year 12

Organisational Structure • How is the work divided within both organisations? (P 3) • Describe the lines of control and communications within each organisation (P 3) • Describe the structure of each organisation – include the functional organisation, the geographic organisation, the different product structures and types of customers (P 3) Mr. Barry Business BTEC Year 12

Functional areas • Describe the functional areas in each of your chosen organisations – finance, marketing, production, customer service, sales, HR. (P 3) • Explain each functional areas role in the business and how it helps to achieve the aims and objectives. (P 3) Mr. Barry Business BTEC Year 12

Strategic Planning For each business describe the: • Mission statement, aims, objectives, planning process, use of SMART and explain how these help them fulfil their purpose. (P 4) Mr. Barry Business BTEC Year 12

Influencing factors • Describe and explain the three influencing factors on the organisation’s aims and objectives (P 4) Mr. Barry Business BTEC Year 12

Aims • Use at least two sources of information to back up my opinions about the stakeholders. I must reference these. (P 4) Mr. Barry Business BTEC Year 12

Economic Environment • Describe the influence of two contrasting economic environments on business activities within a selected organisation (P 5) • Compare the challenges to selected business activities within a selected organisation, in two different economic environments (M 2) Mr. Barry Business BTEC Year 12

• However looking at the list we have just produced things could get confused. To avoid this problem organisations use PESTEL analysis. This is an expansion of the original PEST analysis This stands for: Political Economic Social Technological Environmental Legal Mr. Barry Business BTEC Year 12

Political: e. g. Government Policies, war, political changes etc Economic: e. g. Trends in the economy, disposable income levels, employment, pay levels, competition, taxation etc Social: e. g. Consumer attitudes and opinions, demographics, living standards, hosting a major sporting event etc Technological: e. g. Consumer buying mechanisms, information technology, telephony developments etc Environmental: e. g. Climate change, energy conservation etc Legal: Mr. Barry e. g. Employment law, smoking ban, competition policy etc Business BTEC Year 12

Methods used by the Government to control markets Beyond fiscal and monetary policy Mr. Barry Business BTEC Year 12

The Use of Legislation To control monopolies To promote competition To establish standards Consumer protection To ensure rights of employer/employee • The Environment • • • Mr. Barry Business BTEC Year 12

Governments can take over: • • • Whole industries Potential monopolies Vital services Important employers National security issues THIS IS CALLED… Mr. Barry Business BTEC Year 12

Nationalisation • Supporting arguments – Prevents exploitation of vital resources – Protects vulnerable industries – Preserves employment • Detracting arguments – Promotes inefficiency – Suppresses competition – Public expense burden Mr. Barry Business BTEC Year 12

Privatisation • Also called De-nationalisation • Promotes competition • Releases public funds • Widens share ownership Mr. Barry Business BTEC Year 12

Regulation • Imposing controls on Business activity – propose and examine justifications • Offer examples of regulatory bodies – (OFWAT, OFTEL, OFGAS). Mr. Barry Business BTEC Year 12

Deregulating and contracting out • “Contracting out” • Competitive tendering • Market forces efficiency & VFM – The theory of the internal market • More local control of budgets – (Academy Status for Schools) Mr. Barry Business BTEC Year 12

Main areas of economic concern Inflation Unemployment Economic Growth Government Spending Business Confidence Mr. Barry Business BTEC Year 12

Examine at least two pieces of Government economic policy • Reasons why • Arguments for and against each policy • Assess the impact of the policies on: – levels of taxation, prices, employment Mr. Barry Business BTEC Year 12

The choices 1. Fiscal policy 2. Monetary policy 3. Trade policy Mr. Barry Business BTEC Year 12

What governments are trying to control is… Mr. Barry Business BTEC Year 12

Why spend money on building new houses? • • • What benefits will be gathered? What costs will be incurred? Who will gain? Who might lose? Moral arguments? Mr. Barry Business BTEC Year 12