BTEC Level 3 National Foundation Diploma in Business: Unit 1: Exploring Business Assessment 2 Brief

Learning aim(s)

C: Examine the environment in which businesses operate  
D: Examine business markets

Task 1

You have been asked to write a report on a large business that trades in the EU. You will need to look at the environment in which the business operates, and to gather enough information to be able to consider how your chosen business has responded to past changes, and evaluate how it may react to future changes in the environment. 

Your research should include:

The external environment that effects the business to include political, economic, fiscal, monetary and other government policies, social atÝtudes to saving, spending and debt; social responsibility requirements, technological change, environmental factors and ethical trends and the legal environment

• The internal environment to include corporate culture and Corporate Social Responsibility (CSR)
• The competitive environment to include competition, competitive advantage and the factors that influence competitive advantage
• The influences on the business’ demand, supply and price, including elasticity of demand.
• The different market structures that the business operates in, their impact on pricing and output decisions and the business’ response to these   Using this research, prepare a report that discusses and assesses the effects of the environment on the business, and how the business has reacted to change.

The report should include a situational analysis of the business environment using a variety of techniques such as PESTLE, SWOT, 5Cs analysis, and Porter’s Five Forces.The report will evaluate the extent to which the business has responded to past changes in the market and business environment, and suggest how this business may react to future changes.   The report will be logically structured and have a clear conclusion that is fully justified by well-balanced, developed arguments, and is supported by good use of research evidence.