UNIT
19: EXTERNAL BUSINESS ENVIRONMENT
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LO1
Understand the impact of socio-economic change on the development of commercial
organisations in a business and services industry context
Structure and operation of UK economy: market structure;
perfect/imperfect competition; oligopoly; duopoly and monopoly; national/local
factors; determinants of free-market economy Government economic policy: aims
and influence; effects on employment policy; inflation; balance of payments;
economic growth in industry sector; current issues Income, wealth, employment
and occupational distribution: structure and composition of business and
services industry; patterns of demand for business and services; the socioeconomic
framework of demand; labour demand in industry sector Demographic trends:
geographical pattern of labour demand; nature of employment in business and
services industries; employment profiles eg age, sex Social structures: types
of people employed; geographical variations; self-employed; unemployed; labour
turnover; levels of pay Industry context: contexts eg hospitality and catering,
hairdressing and beauty therapy, sports and leisure, travel and tourism
LO2 Understand the effect of legal and political environments on business and service industries
LO2 Understand the effect of legal and political environments on business and service industries
Structure, operation and influence of local government:
structure; areas of control; limits of authority; interface with national
government; powers affecting business and services industries Role and
influence of the EU: history of the EU; relationship with national and local
government; influence of the EU directly/indirectly on business and services
industries Pressure groups: role; types; political influence; why they emerge;
reasons for existence; memberships; influence of pressure groups on government;
national and local issues; overall impact Legal framework within the UK: role
of legislation within the UK; regional variations; English system versus
Scottish system; legal influences directly affecting business and services
industries; impact of national parliaments/assemblies Legislative process: the
structure of the legal system; the legislative process in relation to national
and local government; the legislative process and the individual
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UNIT
19: EXTERNAL BUSINESS ENVIRONMENT
LO3
Understand the statutory requirements for establishing and developing a
business and services operation Business and services
operations: types eg private ownership, partnership,
companies, public, private, limited by shares, limited by guarantee, unlimited
companies, business names Registered companies: formation; structure;
processes; dissolution; memorandum of association; articles of association; statutory
declaration; statutory list; responsibilities and control eg agents, directors,
senior executives, different types of company meetings, voting rights
UNIT 19: EXTERNAL BUSINESS ENVIRONMENT
UNIT 19: EXTERNAL BUSINESS ENVIRONMENT
Learning outcomes and assessment criteria
Learning outcomes
On successful completion of this unit a learner will:
LO1
Understand the impact of socio-economic change on the development of commercial
organisations in a business and services industry context
Assessment criteria for pass
The learner can:
1.1 discuss the structure and operation of the UK economy
1.2 analyse current government economic policy and its
effect on business and services industries
1.3 discuss income, wealth, employment and occupational
distribution in relation to the provision of business and services operations
1.4 assess the demographic trends that influence employment
patterns in business and services industries
1.5 analyse the social structures of people employed in
business and services industries
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LO2
Understand the effect of legal and political environments on business and
service industries
2.1 discuss the structure, operation and influence of local government
2.1 discuss the structure, operation and influence of local government
2.2 evaluate the role and influence of the EU, and its impact
on business and services industries
2.3 assess the role of pressure groups and their political
influence in relation to national and local issues
2.4 analyse the legal
framework within the UK, identifying the main differences between the English
and Scottish systems
2.5 evaluate the legislative process as it affects business
and services industries at both local and national level
LO3
Understand the statutory requirements for establishing and developing a business
and services operation
3.1 assess the different types and characteristics of
business that operate within the business and services sector
3.2 discuss the legal processes necessary for formation and
dissolution of a registered company
3.3 analyse the structure and processes which determine the
responsibilities and control within a registered company
UNIT 19: EXTERNAL BUSINESS ENVIRONMENT
Guidance
Links
This unit can be linked with a number of units, including: • • Unit 3: Customer Service Unit 18: Facilities Operations and Management.This unit also links to the following Management NVQ units
A2: Manage your own resources and professional development
Links
This unit can be linked with a number of units, including: • • Unit 3: Customer Service Unit 18: Facilities Operations and Management.This unit also links to the following Management NVQ units
A2: Manage your own resources and professional development
A3: Develop your personal networks
B2: Map the environment in which your organisation operates
B8: Ensure compliance with legal, regulatory, ethical and
social requirements
B9: Develop the culture of your organisation
F12: Improve organisational performance.
Essential requirements
The section on legal and political environments will require
formal input to present a comprehensive summary of issues, such as the
structure, operation and influence of local government and the role and
influence of the EU. Support from local political networks will be useful, but
must be handled sensitively to avoid any risk of political bias. Once this has
been achieved, further discussion and debate will extend learners’ thinking and
enhance their approach to the development of knowledge and understanding.
Statutory requirements will require formal input to establish the frameworks
for different types of businesses and the procedures for establishing and
dissolving businesses. Visiting speakers can be drawn from legal advisers such
as solicitors and other sources of advice such as business counsellors and
banking experts, as well as local business people who have direct experience of
such activities. Debate and discussion can highlight advantages and
disadvantages of different approaches. Most clearing banks offer business packs
which would serve as a useful teaching resource. Additionally, Learning and
Skills Councils and Chambers of Commerce can provide a wealth of information to
complement learning activities.
UNIT 19: EXTERNAL BUSINESS ENVIRONMENT
Employer engagement and vocational contexts
Visiting speakers from national and multinational
organisations will help to put this unit into context. Other invited speakers
could include representatives from industry-led groups such as the Sector
Skills Councils or the Learning and Skills Council. Tutors should develop links
with appropriate local businesses, that can be used to provide real supporting
materials to underpin various issues. Appropriate case study material will
enhance delivery. For those learners with no previous knowledge of the
appropriate industry, the unit will be more relevant if it is delivered
following a period of industrial work experience. Learners will benefit from
exposure to business and services commercial operations. Wherever possible, a
practical approach should be adopted with the use of appropriate case studies.
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