Unit 1 - Exploring Business Assignment 2 (Whole Assignment) - DISTINCTION* GRADED
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Unit 1 - Exploring Business
Institution
PEARSON (PEARSON)
I have taken the name off of each assignment so that u can copy it directly and use it as your own.
BTEC Business Level 3 - Unit 1 Exploring Business Assignment 2 Distinction* Assignment on Volkswagen. "The Effects of the Environment on a Business" P4: Discuss the internal, external and competitiv...
ASSESSMENT RECORD SHEET
BTEC NQF Level 3
Programme Learner name
Business
Assignment 2 – The effects of
Assignment title the environment on a Assessor name Mr A Munawar
business
Target learning
Unit no. & title Unit 1: Exploring Business C&D
aims
Submission
Issue date
date
First submission / Resubmission
resubmission? date**
Resubmission
authorisation
Date
by Lead Internal
Verifier*
* All resubmissions must be authorised by the Lead Internal Verifier. Only one resubmission is possible per
assignment, providing:
The learner has met initial deadlines set in the assignment or has met an agreed deadline extension.
The tutor considers that the learner will be able to provide improved evidence without further guidance.
Evidence submitted for assessment has been authenticated and accompanied by a signed and dated
declaration of authenticity by the learner.
**Any resubmission evidence must be submitted within 10 working days of receipt of results of assessment.
Discussed the internal, external and competitive environment on a given
P4 Yes
organisation.
Selected a variety of techniques to undertake a situational analysis of a given
P5 Yes
organisation.
Explored how the market structure and influences on supply and demand affect
P6 Yes
the pricing and output decisions for a given business.
M3 Yes Assessed the effects of the business environment on a given organisation.
M4 Yes Assessed how a given business has responded to changes on the market.
Evaluated the extent to which the business environment affects a given
D2 Yes
organisation, using a variety of situational analysis techniques.
Evaluated how changes in the market have impacted on a given business and
D3 Yes
how this business may react to future changes.
General comments
Assessor I certify that the evidence submitted for this assignment is the learner’s
declaration own. The learner has clearly referenced any sources used in the work. I
, understand that false declaration is a form of malpractice.
Assessor signature Date
Learner comments
Learner signature Date
Unit 1 Assignment 2
My name is............, and I am continuing work with my wok placement in the Economic Development
unit at my local council. I will be choosing Volkswagen as my large business as it trades with the
European union. I will use this research to write a report that evaluates the effect of the
environment on that business.
Volkswagen is a German multinational car manufacturing company based in Wolfsburg, Germany.
Volkswagen, also known as VW and globally known as the Volkswagen group was founded in 1937
and has evolved in the world's largest car manufacturing company by sales across Europe. The Group
includes 12 brand names from 7 European Countries: Volkswagen, Audi, SEAT, SKODA, Bentley,
Bugatti, Lamborghini, Porsche, MAN and Ducati. Furthermore, Volkswagen Group also provides a
wide variety of financial services involving, leasing, banking, insurance and fleet management
activities. This is managed as the company is divided into 2 segments, these being the automotive
and the financial service segments. The Company operates 125 manufacturing plants in 20 European
countries, with an additional 11 in the Americas, Asia and Africa. Worldwide, 671,205 workers
manufacture and operate in car-related or other industry sectors. vw vehicles are sold in 153
countries across the globe.
A PESTLE analysis is used in an organisation and is a method to evaluate the industry of a business. In
the PESTLE analysis, factors outside of the company which will affect the business are primarily
considered. It also contributes to decision making by giving companies more insight into their
business. Pestle analysis essentially collects information for each category and then defines which
PESTLE variables represent a market chance or risk. Pestle represents:
political
The political impact of the government of the country has a major effect on how the country
functions. The level to which a government may control the economy, or a certain industry depends
on the political factors. For example, a government can impose a tariff on products that can change
the whole structure of companies generating revenues. The political system is essential to be
understood in a country, Vietnam and North Korea being Communist states, for instance, which
means that trading with both states is more difficult and potentially restrictive in comparison to
other countries. The import and export of products would be influenced by a policy that increases or
,decreases the country's currency. That could have an effect on anything from a business importing
material to a company selling its services globally. The global pandemic, COVID-19, is a significant
political variable that currently shapes global corporations. This influenced the currency already and
will affect how we trade with other countries.
Economic
The economic conditions of a country in which they work are also impacting companies. The
economic conditions can have a significant impact on customers' willingness to buy goods and also
on business as a whole in that region. Economic factors which can have a major impact on a country
include:
Inflation
Interest rates
International exchange rates
Industry growth
Levels of taxation
Each of the above economic factors is likely to affect product or service demand, particularly if the
service or product is a premium product. Where tax levels, interest rates and inflation are high, the
cost of certain goods or services would be higher, and the demand will be affected. Corporations
need sufficient demand levels to ensure all their expenses are covered. More revenue than expenses
must be rendered to be a profitable multinational corporation. This can also lead into demand and
supply. The most important issue is demand and supply. Demand is the consumer's desire to buy a
company's products and services. The supply, on the other hand, is the calculation of the demand
for goods and services made available to manufacturers or businesses. The market price of various
goods and services of an economy regulates demand and supply. If demand is higher than supply,
market prices will increase. When the stock price decreases, there is more supply than demand. This
is why the stability of market operations requires a moderate level of supply and demand. As
mentioned already the global pandemic, COVID-19, is a significant economical variable that currently
shapes global corporations. It has already affected the growth of industries.
Social
Society is evolving constantly, with no uncertainty. Tastes and fashions reflect this transition. The
rising popularity of social media is one of the most critical differences. The younger generation tends
to shop online using digital technologies whereas the elderly may stick to their traditional methods.
There is also discussion of the impact of evolving society. these evolving trends also impact
companies, a business may have several different effects on changes in social factors.
Social external influences on internal businesses vary depending on the country in which an
international business is operating. Social external influences can be very far reaching and include
everything from health factors in a particular country, for example levels of obesity or smoking rates,
we do other social factors such as attitudes to work and leisure, or the make-up of the population
such as the extent to which the population is aging or growing. External social influences on
businesses are affected by the general population of a country and influenced by:
Lifestyle
, Family size
Education level
Religion and beliefs
Average disposable income level
Population growth rate
Technological
Technology affects companies greatly and changes in technology are also very quick. There is rapid
increase in the ability to communicate through the use of the Internet, particularly online
communication and social media. Access to technological change, particularly in relation to
international communications, can really affects the organisation. The global internet accessibility
has undeniably risen in recent years. For many businesses that use the Internet to communicate
with their clients, this creates an even bigger market for them to operate in. The improvement of
globalisation and technical advances has brought faster and more efficient foreign business
communication. Communication may now be immediately carried out. It is easy to communicate
with foreign businesses through, emails, text messages and telephone calls. Technological
innovations have also allowed businesses to decide about how best to conduct their business and
operate their activities more efficiently. Competitors and other small companies are left with
opportunities to thrive if the organisation does not keep up on technical advancements.
Legal and regulatory
Legal factors are external factors that impact the way corporations work and customers participate.
Law and regulations differ widely around the globe and countries in which foreign corporations
work. In order to protect the corporation, companies must obey certain regulations enforced by a
state and government. The country and its people are protected by law from injustice and anarchy.
Laws and regulatory system cover a broad variety of different international business fields, including:
Employment law
Regulations about how businesses operate in the licence required.
Tax that needs to be paid.
Criminal law.
consumer law.
Environmental and ethical
Many important aspects of business can be influenced by environmental factors. For example,
consumer willingness to purchase a product, the productivity of employees and the availability of
crops and resources are all affected by the environmental factor. International corporations, in
countries they operate, are impacted by and have an environmental effect, an example of this is
pollution. Multinational businesses are held responsible for the cause of pollution due to the mass
number of transport trucks needed to distribute necessary products. The resources that can be
grown inside the country are mostly destroyed by pollution. This causes problems for the supply
chain of businesses. This also impacts companies such as Tesco as pollution is caused by the
transportation of goods on lorries for example. In consideration a country's climate and the type of
goods and services that can be sold, the environment will also affect foreign companies, including
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