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Task 1 – Features of a business environment

An initial meeting has been arranged with Jonathan which will focus on the key features of a business environment. Knowing that Jonathan is always busy you decide to produce a document for use at the meeting and this will assist the discussions. In the document you should:

  • Identify common functions and divisions found in business organisations.
  • Describe different organisational structures, providing appropriate examples for each of the organisational structures.
  • Describe the key differences between public, private, voluntary sector and public service organisations.

Extension activities:

To gain a merit grade you must prepare a separate document for Jonathan to read outside business hours which:

  • Explains the advantages and disadvantages of each of the organisational structures you covered in the document you prepared for the meeting.

To gain a distinction grade in the second section of this document you must:

  •  Explain why a business organisation may choose to change its structure and the impact this may have.

Task 2 – Business Handbook

Jonathan would like to add new sections to his business handbook, which he uses as a guide to help with business decisions. You are required to prepare information sheets that provide the following information:

  • An explanation of a range of key accounting concepts.
  • A description of the stakeholders who need to understand an organisation’s financial position.
  • A description of the information that is provided by business budgets.
  • An explanation of the importance of excellent customer service to a business organisation.
  • A description of the elements of excellent customer service.
  • An explanation of why business planning is important.
  • A description of mission, vision, business strategy and organisational objectives. The description should include details of how these are used in business organisations.
  • An explanation of the key elements of a business plan and how it is created.

Extension activities:

To gain a merit grade you must also include the following information in your business handbook:

  • Interprets the final statements using appropriate accounting concepts provided in appendix 1. 
  • Explains how and why budgets are monitored.
  • Explains the processes used to monitor organisational budgets.
  • Differentiates between functional and personal customer expectations and how an organisation can ‘delight’ a customer in both areas.

To gain a distinction grade you must also include the following information in your business handbook:

  • An explanation of how stakeholders’ interests might influence a business organisations financial decision making.
  • An evaluation of the cost implications of poor customer service to both internal and external customers.
  • An exemplar set of proposals for improving customer service.  These proposals should be drawn from a business organisation that you have researched and have a comprehensive working knowledge.

Task 3 – Control and Decision Making

Jonathan is considering employing an operations manager. He wishes to be prepared for the interviews and has asked you to provide some detailed notes for him to read. He also plans to use this information to produce the questions he will ask at the interviews. The notes must provide:

  • An explanation of why a business organisation requires operational control.
  • A description of the systems business organisations use to achieve operational control.
  • A description of the different techniques that managers can use to help decision making.

Extension activities:

To gain a merit grade you must include:

  • An identification of the different types of information which enable managers to have control and how they use the three stage control loop.
  • A description of good and poor business decisions, based on their impacts on business organisations.

Task 4 –

Your placement is coming to an end. You want to learn from your experience of completing the work for Jonathan. You also need to take into account other experiences for example from your time spent studying, part-time employment or work in a voluntary or personal capacity etc.

To gain a distinction grade you must:

  • Provide a personal skills evaluation.  The example should evaluate your own decision making skills in terms of techniques used, outcomes and sensitivity to the culture of others.
  Tool Box 
Annual Income Statement
Less Returns Inwards600
Net Sales41,400
Less Cost of Goods Sold
Opening Inventory5,150
Carriage Inwards0
Less Returns Outwards4,000
Less Closing Inventory6,410
Cost of Sales15,740
Gross Profit25,660
Additional Income
Discount received760760
Fewer Expenses
Internet and telephone1,020
Staff wages2,876
Heat and light800
Bad debts500
Provision for depreciation14
Depreciation – motor vehicles600
Depreciation – fixtures and fittings500
Net Profit14,990

Tool Box
Annual Statement of Financial Position
Non-Current AssetsCostDepreciationNet Book Value
Motor vehicles6,0006005,400
Fixtures and fittings5,000 500 4,500
11,000 1,100 53,900
Trade receivables360
Less provision for doubtful debts14346
Prepayment of expenses600
Accrual of income400
Current liabilities
Accrual of expenses800
Working Capital13,090
Total Assets less current liabilities66,990
Net Assets66,990
Financed by:
Net profit14,990
Fewer drawings8,000

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