Unit 1: The Business Environment M2 D2
M2 D2
Unit -1 (The Business
Environment)
BTEC National Diploma In Business Level 3
The Date
Author: Your Name
Your Teacher
1
,Unit 1: The Business Environment M2 D2
Unit 1 – Business Environment
On completion of this unit I should:
1) Know the rage of different businesses and their ownership
2) Understand how businesses are organised to achieve their purposes
3) Know the impact of the economic environment on businesses
4) Know how political, legal and social factors impact on business
Task 7:
a) Compare the challenges to selected business activities within a selected organisation,
in two different economic environments.
b) Evaluate how future changes in economic, political, legal and social factors, may
impact on the strategy of a specified organisation.
2
, Unit 1: The Business Environment M2 D2
Apple Inc.
Growth
China has achieved miraculous economic growth over the past 30 years to become the
world's second largest single-country economy. However, growing gross domestic product
(GDP) at any cost has created a series of social and environmental problems, and
consequently, economic losses, which do affect Chinese businesses and Apple in particular.
There is always a tension between the government’s preference for faster economic growth
with lower environmental standards, and the public’s inability to express its preference for a
combination of income and pollution that may differ from the government’s preferred
combination. As result major public and the country’s population os a whole faces inability to
influence aims and objectives of its government and countries industry, thus over the time big
primary and secondary sector companies which are constantly developing and increasing
their capital may became an object of hatred. Exactly the same situation exerts now in China
with Apple Inc., which economic growth is gained by enormous ‘’slavery’’ work of Chinese
population.
Furthermore environmental challenges have increased dramatically in the past 15 years as
China has accelerated its economic growth. The Chinese economy is heavily dependent on
secondary industry to which Apple Inc. belongs to as well, and which accounted for 46.8% of
GDP in 2010. According to the most recent environmental report from the Ministry of
Environmental Protection (2013), seven main river systems in China are polluted. Poor health
care and high level of environmental pollution affect Chinese people a lot, and this reflect on
Apple’s labour efficiency and productivity since their health is under risk as well. The
indicators of environmental disaster in China are: unclean water, lack of urban sanitation,
ambient levels of suspended particulate matter in urban areas, urban concentrations of
sulphur dioxide, decrease in forest area, the high annual rate of deforestation, dissolved
oxygen in rivers, faecal in rivers, high municipal waste per capita, and massive carbon
dioxide emissions per capita.
New Chinese policies are explicitly addressing secondary sector businesses in sustainable
development, and are strictly enforced to improve the overall state of the environment. These
policies are reflecting on Apples factory’s performance, working hours and productivity,
which an afterward result in lowering profits and sales rates of the company.
Recession
The global recession is having a serious impact on Apple's retail performance. While Apple
Stores have for years done better than most retail chains, visitors per store fell 1.8% year-
over-year since 2010, while same-store revenues dropped 17.4%. Due to the global inflation
Mac shipments have slid an average of 17.5%, while combined non-Mac revenues fell 10%.
Apple’s sales are unlikely to resume normal levels, until the worst of the inflation in some
countries where the company operates is over. During recession a country’s government will
3
M2 D2
Unit -1 (The Business
Environment)
BTEC National Diploma In Business Level 3
The Date
Author: Your Name
Your Teacher
1
,Unit 1: The Business Environment M2 D2
Unit 1 – Business Environment
On completion of this unit I should:
1) Know the rage of different businesses and their ownership
2) Understand how businesses are organised to achieve their purposes
3) Know the impact of the economic environment on businesses
4) Know how political, legal and social factors impact on business
Task 7:
a) Compare the challenges to selected business activities within a selected organisation,
in two different economic environments.
b) Evaluate how future changes in economic, political, legal and social factors, may
impact on the strategy of a specified organisation.
2
, Unit 1: The Business Environment M2 D2
Apple Inc.
Growth
China has achieved miraculous economic growth over the past 30 years to become the
world's second largest single-country economy. However, growing gross domestic product
(GDP) at any cost has created a series of social and environmental problems, and
consequently, economic losses, which do affect Chinese businesses and Apple in particular.
There is always a tension between the government’s preference for faster economic growth
with lower environmental standards, and the public’s inability to express its preference for a
combination of income and pollution that may differ from the government’s preferred
combination. As result major public and the country’s population os a whole faces inability to
influence aims and objectives of its government and countries industry, thus over the time big
primary and secondary sector companies which are constantly developing and increasing
their capital may became an object of hatred. Exactly the same situation exerts now in China
with Apple Inc., which economic growth is gained by enormous ‘’slavery’’ work of Chinese
population.
Furthermore environmental challenges have increased dramatically in the past 15 years as
China has accelerated its economic growth. The Chinese economy is heavily dependent on
secondary industry to which Apple Inc. belongs to as well, and which accounted for 46.8% of
GDP in 2010. According to the most recent environmental report from the Ministry of
Environmental Protection (2013), seven main river systems in China are polluted. Poor health
care and high level of environmental pollution affect Chinese people a lot, and this reflect on
Apple’s labour efficiency and productivity since their health is under risk as well. The
indicators of environmental disaster in China are: unclean water, lack of urban sanitation,
ambient levels of suspended particulate matter in urban areas, urban concentrations of
sulphur dioxide, decrease in forest area, the high annual rate of deforestation, dissolved
oxygen in rivers, faecal in rivers, high municipal waste per capita, and massive carbon
dioxide emissions per capita.
New Chinese policies are explicitly addressing secondary sector businesses in sustainable
development, and are strictly enforced to improve the overall state of the environment. These
policies are reflecting on Apples factory’s performance, working hours and productivity,
which an afterward result in lowering profits and sales rates of the company.
Recession
The global recession is having a serious impact on Apple's retail performance. While Apple
Stores have for years done better than most retail chains, visitors per store fell 1.8% year-
over-year since 2010, while same-store revenues dropped 17.4%. Due to the global inflation
Mac shipments have slid an average of 17.5%, while combined non-Mac revenues fell 10%.
Apple’s sales are unlikely to resume normal levels, until the worst of the inflation in some
countries where the company operates is over. During recession a country’s government will
3
