Pearson BTEC Level 3 Unit 1 Exploring Business- CAFOD P3 and M2
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Course
Unit 1 - Exploring Business
Institution
PEARSON (PEARSON)
P3 Explore the organisation structures, aims and objectives of two contrasting businesses.
M2 Analyse how the structures of two contrasting businesses allow each to achieve its aims and objectives.
This work includes detailed research on CAFOD eg. introduction, flat structure, Functional areas/...
CAFOD: Tasks - P3 and M2
The aim of the entity reflects its long-term outcomes while its objectives indicate the short
term targets of the entity. Aim refers to the general direction or intent of an
individual/company. On the other hand, the objective is the specific goal of an individual or
company.
SMART is a mnemonic/acronym, giving criteria to guide in the setting of objectives. E.g. S-
specific M- measurable A-actionable R-relevant T-time bound.
Founded in 1962, CAFOD aims to promote long term development, respond to
emergencies, raise public awareness of the causes of poverty, speak out on behalf of
poor communities and promote social justice in witness to Christian faith and gospel
values.1
CAFOD has a global reach. There are many roles CAFOD do:2
• Help people thrive
• Face tough challenges e.g. Poverty, Conflict, Climate Change, Inequality
• They speak for justice
• Fundraise
• Create awareness
• Help the society
• Help with sanitation
• Give food to the hunger
• Give homes to people
• Provide support
Overall The CAFOD provides services and help people in order to make the word a
better place.
CAFOD has a flat structure this is because CAFOD organisational structure is
geographical this means they work in lot of countries3( 30countries) helping the people in need.
Advantages of a Flat Structure is it elevates the employees' level of responsibility in the
organisation. It removes excess layers of management and improves the coordination and speed
of communication between employees. Fewer levels of management encourage an easier
, decision-making process among employees4. However, flat structure does have disadvantages;
they can make bad decisions (can be made under the guise of expertise), it can lead to a lot of
wasted time, this structure can limit productivity, it isn't scalable, there is a lack of work-life
balance.5 The flat structure would help the business as it divides levels of responsibilities within
the workplace and help CAFOD to pay their employees the right salary depending on their
responsibilities.
Functional areas/ departments
The finance department handles the money that goes in and out. This department manages
the money that has been donated to CAFOD and is used to provide support to people in need.
They manage the sections that the money should be divided into. Without the finance
department the business could go in loss if they don’t use the right amount of money when
they start a new project. The business should always be financially stable; it is very important to
run the business because a lot of money goes into the business ideas and business projects. I
recommend for CAFOD to run the business successfully they should employ a well-trained
finance group who can manage the finance department allowing CAFOD to make right
decisions related to money e.g. how much money they should spend for the water project;
building water pumps.
The financial team helps the business to be in a stable position. They help CAFOD to make the
right choices e.g. they advise CAFOD on how much money should spend on a certain project
and how much help will be provided. They also manage the donations they receive and divide
them into sections depending on the projects they will be doing which would benefit their
business and meet their aims and objectives e.g. they could help divide the money in their
projects and paying their employees; they could use some amount of money to hire new stuff
for the customer service department, this would benefit them as they would be able to reach
to customers which would be pleased to help or donate money. Furthermore, this would
increase their income and more help would be provided to the people in need and CAFOD
would be successful in meeting their aims and
objectives.
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