Using PESTEL model, identify the positive and negative impacts the macro environment has upon the UK retail sector.

Purpose of this assignment

The aim of this unit is to provide students with background knowledge and understanding of business, the functions

of an organisation and the wider business environments in which organisations operate. Students will examine the

different types of organisations (including for profit and not for profit), their size and scope (for instance, micro,

SME, transnational and global) and how they operate.

 

Students will explore the relationships that organisations have with their various stakeholders and how the wider

external environments influence and shape business decision-making.

 

The knowledge, understanding and skill sets gained in this unit will help students to choose their own preferred

areas of specialism in future studies and in their professional career.

 

Evidences

The evidences towards this assignment should include;

 Essay

 Case study

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

pg. 3 Issue: Feb 2018 Copyright © – All rights reserved – UK College of Business and Computing

Section 1

LO1: Explain the different types, size and scope of organisations

LO2: Demonstrate the interrelationship of the various functions within an organisation and how they link to

organisational structure

 

Write an essay of approximately 1500 words on the types, size and scope of business organisations and explaining

the interrelationship between different organisation structures and functions within organisation.

You must use real organisations as the basis for your discussion.

Your essay must be structured to cover three key areas;

1) Different types of organisations. (P1)

 Differences between profit, not for profit and non-governmental organisations (NGOs)

 Business purpose and supply of goods and services

2) Size and scope of the organisations. (P2)

 Difference between micro, small, medium-size and large enterprises

 Market share, profit share, growth and sustainability

3) Organisation structures and functions(P3)

 Different kinds of structures relating to size and scope of operations

 Complexities of transnational, international and global organisation structures

 How functions relate to overall organisation mission and objectives

To achieve merit

M1: To achieve M1 you are required to develop your response to P1 and P2 by analysing how the

structure, size and scope of different organisations link to the business objectives and product and

services offered by the organisation.

M2: To achieve M2 you are required to develop your response to P3 by analysing the advantages and

disadvantages of interrelationships between organisational functions and the impact that can have upon

organisational structure.

To achieve distinction

D1: To achieve D1 you are required to develop your response to all aspects of section 1 (P1, P2 & P3) by

providing a critical analysis of the complexities of different types of business structures and the interrelationships

of the different organisational functions.

 

 

 

pg. 4 Issue: Feb 2018 Copyright © – All rights reserved – UK College of Business and Computing

Part 2 – The UK Supermarket sector

LO3: Use contemporary examples to demonstrate both the positive and negative influence/impact the macro

environment has on business operations

LO4: Determine the internal strengths and weaknesses of specific businesses and explain their interrelationship

with external macro factors

 

Most of the major UK supermarket chains has recently announced plans to restructure their businesses in a bid to

be more competitive but also as a direct response to changes within the business environment.

Marks & Spencer has unveiled plans to close up to 14 shops, putting around 500 jobs at risk, as the high street

stalwart takes a more ruthless approach to its struggling stores (The Telegraph – Wednesday 31 January 2018).

Tesco has announced plans to “simplify” its business that will result in 1,700 job cuts (Independent – Monday 22

January 2018).

SAINSBURY’s has announced plans to shake up its management, putting thousands of jobs at risk in the process

(The Sun – Wednesday 24 January 2018).

Asda has made a further 28 jobs redundant at its head office. This follows earlier round of redundancies in

September 2017, when Asda axed almost 300 jobs at its 2500-strong Leeds head office as part of a turnaround plan

that features major cost-cutting initiatives (Retail Gazette – January 9, 2018)

Task

Following these stories and researching the sector;

a) Using PESTEL model, identify the positive and negative impacts the macro environment has upon the UK retail

sector. (P4)

b) Conduct internal (SWOT/TOWS analysis) and external (Five forces model) analysis of a UK Supermarket to

identify its strengths and weaknesses. (P5)

c) Explain how strengths and weaknesses interrelate with external macro factors. (P6)

To achieve merit

M3: To achieve M3 you are required to develop your response to P4 by applying appropriately the

PESTLE model to support a detailed analysis of the macro environment within an organisation.

 

M4: To achieve M4 you are required to develop your response to P5 by applying appropriately

SWOT/TOWS and Five forces analysis in justifying how they influence decision-making.

 

 

pg. 5 Issue: Feb 2018 Copyright © – All rights reserved – UK College of Business and Computing

To achieve distinction

D2: To achieve D2 you are required to develop your response to all aspects of section 2 (P4, P5 & P6) by

critically evaluating the impacts that both macro and micro factors have upon business objectives and decision-

making.