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Unit 1: Business and the Business Environment
We Know Why You Are Struggling With Your Unit 1: Business and the Business Environment Assignment
Students struggle with Unit 1 Business and the business environment because it demands joined-up thinking , not a collage of model names. Many pick a company they can’t evidence, so they end up describing “a PLC” in the abstract rather than showing how, say, interest rates and energy costs change pricing, margins and staffing this quarter. PESTLE becomes a laundry list, SWOT turns generic, and the “so what?” never lands. The brief also expects you to show how functions interlock, marketing forecasts shaping operations, finance policing cash, HR fixing night-shift churn, yet most write each department in isolation. Add shaky data (no figures from an annual report or Companies House), fear of plagiarism that leads to over-quoting, weak Harvard referencing, and poor time planning, and the argument falls apart. The real hurdle isn’t theory; it’s turning evidence into decisions, prioritising two or three actions, and signposting them clearly so the marker can see cause - effect - recommendation.
How to Approach the Brief (What Markers Actually Want)
Most Unit 1 briefs ask you to explain a real organisation , analyse its external environment , review the internal functions and structure , and then connect the dots . Do not write a company profile; write an argument that shows why certain choices make sense for the business now.
Pick one main company you can evidence (annual report, website, press releases).
Use frameworks to reach decisions , not to fill space.
Keep a line of sight to impact (profit, cost, risk, customer value, staff outcomes).
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LO1 Types, Size and Scope (With a Concrete Example)
Start by setting out the legal form , purpose , scale , and stakeholders, but keep it analytical. Suppose your chosen firm is a mid-sized UK food manufacturer supplying supermarkets.
Paragraph (how to write it):
“Greenvale Foods Ltd is a private limited company with three UK sites and 420 employees supplying chilled ready meals to national grocers. The limited liability form allows the owners to raise bank finance without diluting control, which is important for capital-intensive production lines. The company’s purpose is commercial profit with a stated commitment to responsible sourcing; in practice this shapes supplier audits and packaging choices. Its scale (c. £85–£95m revenue, own-label contracts, and two export SKUs) means buying power is moderate: large enough for multi-year ingredient contracts but still exposed to supermarket price pressure.”
Use this mini-checklist as bullets inside LO1:
Ownership & funding: why the form (Ltd/plc/CIC/charity) helps or limits strategy.
Stakeholder map (Mendelow): who has high power (e.g., supermarkets, regulators) and what engagement you’ll maintain.
Comparator (2–3 lines): contrast with a plc or social enterprise to show how funding and governance change decisions.
LO2 Macro environment (PESTLE that actually leads somewhere)
Do one tight paragraph per factor and end with a so-what . Link at least three factors to cost, revenue, or risk .
Paragraph (how to write it):
“Economically, higher borrowing costs and volatile energy prices lift unit costs on chilled production, squeezing gross margin unless price rises are agreed. Legally, food safety and labelling updates increase compliance workload but also raise barriers to entry, protecting existing players. Environmentally, retailer net-zero plans push Greenvale to cut Scope 2 emissions; practical responses include off-peak production to lower tariffs and switching to recycled PET trays. Socially, convenience demand favours single-serve SKUs, but households remain price-sensitive, so value ranges must be protected. Technologically, line-level data capture enables yield analytics; even a one-point improvement in trim yield creates six-figure savings annually. Politically, government skills funding can part-finance operator apprenticeships, easing shortages on night shifts.”
Turn each factor into an action bullet (this is where many submissions win marks):
Economic → renegotiate energy with load-shifting; introduce weekly price trackers for key inputs.
Legal → formalise a quarterly compliance review; map audit findings to capex.
Environmental → switch to recycled PET and record emissions intensity per SKU.
Social → expand value SKUs; trial family-size packs for budget shoppers.
Technological → deploy yield dashboards; bonus supervisors on measurable waste cuts.
Political → apply for skills grants; link to a 12-month operator upskilling plan.
LO3 Internal analysis (Value Chain → SWOT/VRIO)
Write one paragraph that shows you understand where value is created and what is truly hard to copy .
Paragraph (how to write it): temporary to sustained edge if protected.”
Action bullets the marker expects after the paragraph:
Codify the changeover playbook ; protect it with cross-training and incentives.
Energy audit tied to capex with payback < 24 months.
Supervisor retention : add progression routes; link to output and waste KPIs.
LO4 Functions, structure, and how they interrelate
Don’t list departments—show the hand-offs . Use one real flow and fix the friction.
Paragraph (how to write it):
Tie it off with short bullets (cross-functional KPIs):
Forecast accuracy (SKUs on promo)
OTIF (on time, in full)
Changeover minutes per batch
Energy kWh per tonne
Staff turnover on night shifts
Recommendations that link back (what earns Distinction)
Write three —not ten—recommendations, each traced to your PESTLE/VRIO findings.
Paragraph (how to write it):
“First, implement yield analytics and a changeover playbook across both lines within 90 days; this monetises the internal advantage identified under VRIO and offsets energy cost pressure from the economic analysis. Second, introduce a Tuesday promotion cut-off and a 10% flex window; this directly resolves the cross-functional friction evidenced in LO4 and should lift OTIF by two points with lower overtime. Third, shift to recycled PET trays and publish emissions intensity by SKU; this addresses retailer environmental demands from LO2 and secures preferred-supplier status for next year’s tenders.”
One-line bullets to make it assessor-ready:
Owner & milestone: Ops Director; 90-day playbook rollout.
Cost/benefit: Low-to-medium capex; margin lift via yield.
Risk & mitigation: Staff buy-in → pair training with bonus tied to waste.
How to evidence without padding
Use short, citable items and keep them flowing into the text (don’t dump them in an appendix only).
Latest company report/website figures for scale and sites.
One retailer statement on sustainability or supplier standards.
A press note on promotions or category trends.
Your own calculated KPIs (clear method shown once).
Example Answer of Unit 1
LO1 Explain the different types, sizes and scope of organisations a) Public sector
Public Sector organisations are owned and operated by the government to provide essential services to the public. (Alkhater, Walters and Wills, 2018). The mission of public sector organisations is to provide essential services to the public, ensure the welfare of citizens, and promote the public interest. Their goals and objectives include improving the quality of life, reducing poverty and inequality, and providing equal access to services for all citizens.
Private sector
Private Sector organisations, on the other hand, are entities that are owned and operated by individuals or groups of individuals. Their primary goal is to generate profits for their owners or shareholders. The mission of private sector organisations is to generate profits for their owners or shareholders. Their goals and objectives include increasing revenue, market share, and profitability while maintaining high-quality products and services(Ashok et al., 2021).
Voluntary Sector
Voluntary Sector organisations, also known as non-profit organisations, are entities established for a specific purpose or cause.(Becker, Kunze and Vancea, 2017). The voluntary sector comprises organisations driven by a social, cultural or environmental mission rather than profit. The mission of voluntary sector organisations can vary widely, from supporting vulnerable people and advocating for social change to preserving cultural heritage and protecting the environment.
Legal structures
Sole Traders
Sole traders are usually set up to generate income for the owner and their family. Their goals may include providing a service or product to a local community or fulfilling a personal passion or interest.
Partnerships
Partnerships are usually formed to provide a service or product to a larger customer base than an individual can reach. Their goals include generating a larger profit and expanding their business into new markets(Becker, Kunze and Vancea, 2017).
Limited Companies
Limited companies are usually set up to generate a profit for shareholders. Their goals include expanding into new markets, maximising profits, and providing a return on investment to shareholders.
Size and scope:
The size and scope of an organisation can vary widely, from small, local businesses to multinational corporations. Organisations can offer a wide range of products and services, from physical goods to intangible benefits such as consulting or education. The size and scope of an organisation can influence its mission, goals, and objectives, as well as its ability to achieve them(Becker, Kunze and Vancea, 2017).
b) Public Sector organisation’s structure :
In the case of Cadbury, the public sector is not directly linked to its business objectives, products, or services, as they are a private-sector company. However, they may interact with the public sector in various ways, such as by paying taxes, adhering to government regulations, and providing job opportunities(Becker, Kunze and Vancea, 2017).
Private Sector organisation’s structure:
Cadbury`s main objective is to generate profits for its stakeholders as a private-sector company. They sell confectionery products, including chocolate, candy, and gum, to consumers worldwide. Their products are sold through various channels, such as supermarkets, online retailers, and retail stores. Cadbury`s organisational structure is a limited company, meaning that shareholders own it, and its liability is limited(Bertotti et al., 2017).
Voluntary Sector organisation’s structure:
The voluntary sector refers to organisations operated by volunteers or non-profit organisations whose primary goal is to support social or environmental causes. Voluntary sector organisations are typically not-for-profit and may include charities, social enterprises, and non-governmental organisations (NGOs). Examples of voluntary sector organisations in the UK include Oxfam, the British Red Cross, and Cancer Research UK (Bhui et al., 2016).
c) Functions of two different types of organisations.
Cadbury:
Marketing:
Cadbury`s marketing function promotes its chocolate products through various channels such as television, digital media, and print. They conduct market research to identify consumer preferences and use that information to create effective advertising campaigns. Cadbury`s marketing function is critical to achieving its objective of increasing sales and market share.
Finance:
Cadbury`s finance function manages the company`s financial resources, including budgeting, forecasting, and financial reporting. They ensure that the company is financially stable and profitable by making strategic investments and managing costs. The finance function is linked to Cadbury`s objective of maintaining financial stability and growth(Broséus et al., 2016).
Operations:
Cadbury`s operations function is responsible for managing the production and distribution of its chocolate products. They oversee the manufacturing process to ensure that the products meet quality standards and are delivered to customers on time. The operations function is critical to Cadbury`s objective of providing high-quality products to customers.
Human resources:
Cadbury`s human resources function recruits, trains, and manages the company`s employees. They ensure that the company has a talented and motivated workforce aligned with its values and objectives. The human resources function is linked to Cadbury`s aim of being a great workplace and maintaining a positive corporate culture(Butler and Wilson, 2015).
LO2 Discuss the interrelationship of the various functions in an organisation and how they link to organisational structure d) The interrelationships of each function
Marketing and Sales:
Marketing and Sales departments are interrelated because they work together to attract and retain customers. Marketing teams use market research, advertising, and branding to promote the company`s products or services, while Sales teams work to sell those products or services to customers. (Nie et al., 2014).
Finance and Operations:
The Finance and Operations departments are interrelated because they work together to ensure the company`s financial health. The finance team manages the company`s finances, including budgeting, financial planning, and accounting. The operations team ensures that the company`s day-to-day operations run smoothly.
e) Multinational corporations (MNCs)
MNCs operate in multiple countries, with subsidiaries or affiliates in different locations. These organisations often face significant complexities related to cultural differences, regulatory environments, political instability, and economic conditions. In addition, the organisational structure of MNCs must account for these factors to ensure effective operations across the organisation. One of the main complexities MNCs face is managing human resources across multiple locations(Tandean and Winnie, 2016)(Schlagwein and Hu, 2017).
Global non-profit organisation
Global nonprofit organisations also face complexities related to operating across multiple countries and cultural contexts(Sun and Wang, 2016). These organisations are typically engaged in social, environmental, or humanitarian causes, and their effectiveness often depends on their ability to navigate complex political, social, and economic factors. One of the main complexities faced by global nonprofit organisations is funding and resource allocation.s.(Schwabenland, 2016).
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