Unit 1 - Exploring a
Business
Learning Aim C - Examine the environment in
which businesses operate
Learning Aim D - Examine business markets
1
,Learning Aim C - Examine the environment in which businesses operate 4
P4 - Discuss the internal, external and competitive environment on a given organisation 4
P5 - Select a variety of techniques to undertake a situational analysis of a given business
4
PESTLE - Political (3 Paragraphs) 4
PESTLE - Economic 7
PESTLE - Social 13
PESTLE - Technological 14
PESTLE - Legal (1 Paragraph) 15
PESTLE - Environmental 16
M3 - Assess the effects of the business environment on a given organisation 27
SWOT Analysis (1 Paragraphs) 27
Strength - 27
Weakness - (5 Paragraphs) 28
Opportunities - (3 Paragraphs) 30
Threats - (3 Paragraphs) 30
D2 - Evaluate the extent to which the business environment affects a given business,
using a variety of situational analysis techniques. 32
Explain why a business might use Porter’s Five Forces : 32
D.P6 - Explore how the market structure and influences on supply and demand affect the
pricing and output decisions for a given business 42
D.M4 - Assess how a given business has responded to changes in the market 42
D.D3 - Evaluate how changes in the market have impacted on a given business and how
this business may react to future changes 42
Perfect Competition Market Structure 42
Imperfect Competition Market Structure 43
Chosen Business 43
Supply and demand 44
Influences on Demand 44
Explain what is meant by affordability 45
Explain what is meant by competition 45
Recent Coffee in the Coffee market 46
Define Gross Domestic Product 46
Define what is meant by needs and aspirations of consumers 47
Influences on Supply 47
Explain what is meant by availability of raw materials and labour 47
Brexit 48
Impact on Demand when Government increases minimum wage 49
Explain is meant by Logistics 49
Define availability to produce produce profitability 50
Government Support 50
Elasticity - Price Elasticity of Demand 51
Pricing and Output Decisions 51
2
,Bibliography 53
Learning Aim A 53
Learning Aim A - Starbucks 53
P1 53
P2 54
Learning Aim A - Oxfam 54
P1 54
P2 54
Learning Aim B - 54
Learning Aim C - 55
Learning Aim D - 56
3
, Learning Aim C - Examine the environment in which businesses operate
P4 - Discuss the internal, external and competitive environment on a given organisation
Starbucks
Introducing the business -
Starbucks first originated from America, as a coffee
company and coffeehouse chain. Starbucks has stated
that their main purpose is “To establish Starbucks as the
premier purveyor of the finest coffee in the world while
maintaining our uncompromising principles while we
grow.”, and "To inspire and nurture the human spirit —
one person, one cup and one neighborhood at a time.".
Their overall goal is making profit through sales of the
company. The profit of Starbucks in 2018 was $24.72
billion, which then increased by $1.79 billion in 2019,
resulting in $26.51 billion. The number of employees
stated currently present in 2019 was 346,000, an
estimated amount of 17% increase from 2018, as it is
widely known that Starbucks focuses on their employees and the benefits they accomplish from their
work. As previously mentioned, in 2019, Starbucks had a number of 346,00
employees worldwide, working in over 30,000 locations in more than 30 countries,
including China, Japan and the US being the highest amount of stores located in.
The first expansion located outside the US was in Japan, Starbucks was quickly
becoming an international coffee house, many people were noticing the large amount
of attention the coffee house was receiving.
External Environment - A PESTLE analysis is a framework to analyse the key
factors (Political, Economic, Sociological, Technological, Legal and Environmental)
influencing an organisation from the outside. It offers people professionals insight into
the external factors impacting their organisation. The analysis is flexible, so
organisations can use it in a range of different scenarios. People professionals and
senior managers can use the results to guide strategic decision-making. These
strategies can help a business not only make better decisions so that business levels
can be kept stable and can grow/expand in a stable and consistent pace. By
understanding these external factors, it's possible to maximise opportunities and minimise threats to
the organisation.
P5 - Select a variety of techniques to undertake a situational analysis of a given business
PESTLE - Political (3 Paragraphs)
The government is investing in infrastructure around the world that enables Starbucks to be in
partnership with more manufacturers and markets in order to receive and distribute their goods.
The New Political Group The Conservative Party, also recognized as the Conservative Party, is the
largest political party in the United Kingdom. Since the First World War, the party, alongside its
primary rival, the Labour Party, has led the British political system.
4
Business
Learning Aim C - Examine the environment in
which businesses operate
Learning Aim D - Examine business markets
1
,Learning Aim C - Examine the environment in which businesses operate 4
P4 - Discuss the internal, external and competitive environment on a given organisation 4
P5 - Select a variety of techniques to undertake a situational analysis of a given business
4
PESTLE - Political (3 Paragraphs) 4
PESTLE - Economic 7
PESTLE - Social 13
PESTLE - Technological 14
PESTLE - Legal (1 Paragraph) 15
PESTLE - Environmental 16
M3 - Assess the effects of the business environment on a given organisation 27
SWOT Analysis (1 Paragraphs) 27
Strength - 27
Weakness - (5 Paragraphs) 28
Opportunities - (3 Paragraphs) 30
Threats - (3 Paragraphs) 30
D2 - Evaluate the extent to which the business environment affects a given business,
using a variety of situational analysis techniques. 32
Explain why a business might use Porter’s Five Forces : 32
D.P6 - Explore how the market structure and influences on supply and demand affect the
pricing and output decisions for a given business 42
D.M4 - Assess how a given business has responded to changes in the market 42
D.D3 - Evaluate how changes in the market have impacted on a given business and how
this business may react to future changes 42
Perfect Competition Market Structure 42
Imperfect Competition Market Structure 43
Chosen Business 43
Supply and demand 44
Influences on Demand 44
Explain what is meant by affordability 45
Explain what is meant by competition 45
Recent Coffee in the Coffee market 46
Define Gross Domestic Product 46
Define what is meant by needs and aspirations of consumers 47
Influences on Supply 47
Explain what is meant by availability of raw materials and labour 47
Brexit 48
Impact on Demand when Government increases minimum wage 49
Explain is meant by Logistics 49
Define availability to produce produce profitability 50
Government Support 50
Elasticity - Price Elasticity of Demand 51
Pricing and Output Decisions 51
2
,Bibliography 53
Learning Aim A 53
Learning Aim A - Starbucks 53
P1 53
P2 54
Learning Aim A - Oxfam 54
P1 54
P2 54
Learning Aim B - 54
Learning Aim C - 55
Learning Aim D - 56
3
, Learning Aim C - Examine the environment in which businesses operate
P4 - Discuss the internal, external and competitive environment on a given organisation
Starbucks
Introducing the business -
Starbucks first originated from America, as a coffee
company and coffeehouse chain. Starbucks has stated
that their main purpose is “To establish Starbucks as the
premier purveyor of the finest coffee in the world while
maintaining our uncompromising principles while we
grow.”, and "To inspire and nurture the human spirit —
one person, one cup and one neighborhood at a time.".
Their overall goal is making profit through sales of the
company. The profit of Starbucks in 2018 was $24.72
billion, which then increased by $1.79 billion in 2019,
resulting in $26.51 billion. The number of employees
stated currently present in 2019 was 346,000, an
estimated amount of 17% increase from 2018, as it is
widely known that Starbucks focuses on their employees and the benefits they accomplish from their
work. As previously mentioned, in 2019, Starbucks had a number of 346,00
employees worldwide, working in over 30,000 locations in more than 30 countries,
including China, Japan and the US being the highest amount of stores located in.
The first expansion located outside the US was in Japan, Starbucks was quickly
becoming an international coffee house, many people were noticing the large amount
of attention the coffee house was receiving.
External Environment - A PESTLE analysis is a framework to analyse the key
factors (Political, Economic, Sociological, Technological, Legal and Environmental)
influencing an organisation from the outside. It offers people professionals insight into
the external factors impacting their organisation. The analysis is flexible, so
organisations can use it in a range of different scenarios. People professionals and
senior managers can use the results to guide strategic decision-making. These
strategies can help a business not only make better decisions so that business levels
can be kept stable and can grow/expand in a stable and consistent pace. By
understanding these external factors, it's possible to maximise opportunities and minimise threats to
the organisation.
P5 - Select a variety of techniques to undertake a situational analysis of a given business
PESTLE - Political (3 Paragraphs)
The government is investing in infrastructure around the world that enables Starbucks to be in
partnership with more manufacturers and markets in order to receive and distribute their goods.
The New Political Group The Conservative Party, also recognized as the Conservative Party, is the
largest political party in the United Kingdom. Since the First World War, the party, alongside its
primary rival, the Labour Party, has led the British political system.
4
