Please enable JavaScript.
Coggle requires JavaScript to display documents.
Route 1 - Coggle Diagram
Route 1
R1.1 - Types of organisations and stakeholders within the business environemnt
Public Organisations:
Used by public services and enterprises
Education, fast-food, transport, healthcare
Government-run, huge purpose twoards economy
Private Organisations:
Indivisdually owned, profits go toward the owner of the organisation, shareholders, investors
Technicians, retail companies, beauty businesses, plumbers
International or local
Small/Medium-sized Enterprise, Large Enterprise, Non-governmental Organisation
Voluntary/Charity:
Non-profit, non-statutory, autonomus
Run by individuals who don't get paid for running the organisation
Small/Medium-sized Enterprise:
Any organisation with 250 or less employees. anual turnover of €50M or balance sheet of less €43M
Large Enterprise:
Has 5,000 employees, anual turnover of €1.5B and balance sheet of €2B+
Non-governmental Organisation:
Non-profit organisation, furthering social or humanitarian mission
External Stakeholders:
Customers - buy & and provide money for the company
Clients - Inform business of requirements when asking for a sepcific order from the business
Direct/Indirect Competitors - Always try to be better than the other to create a better product
Outsourced Services/Suppliers - Vital to a company, provide resources, must be delivered properly
Shareholders - Issue/transfer shares, appoiting or removing directors, etc. Wonder how well a business is running & if profit is being made back
Investors - Make sure ivestment is worth it. Huge impact on a business
Funders - Help a company to grow and expect money in return
Government - Provide multiple kinds of services for citizens. How they effect a business long-term. Build the general framework for an organisation to operate under
Internal Stakeholders:
Owners - Invest in companies to earn money
Board of Directors - Maximising profits of the business and getting a return for investors
Employees - Assets of a business, contribute to production of poducts & supplying services
Departments - Provide higher levels of organisation by dividing business activities by their functions
R1.2 - Key factors that can influence the business environment
PESTLE
Factors:
P
olitical
E
conomic
S
ocial
T
echnological
L
egal
E
nvironmental
P
olitical Factors:
Government policy - Passing new legislation/ government changing the way they spend taxes
Foreign trade policy - To reduce complications between trading nations
Tax policy - Chnages to income tax, national insurance contributions, corporation tax, business rates & valuue added tax (VAT)
E
conomic Factors:
Interest rates - If increased, businesses have larger overheads & less dispsoable income
Exchange rates - If changed, this can affect how much money a busness has to pay suppliers
Consumer trends - Levels of employment, level of wages inflation, interest rates & consumer confidence can impact how much consumers spend.
Periods of recession - Can change the purchasing attitude of consumers
S
ocial Factors:
Social mobility - Horizontal or vertical mobility. What's the status of the person in overall society
Market trends - Identify potential changes in the market & stasy ahead of competitors
Cultural expectations - Mistake to assume customers will make similar choice because they seem similar
Socioeconomic aspects - Understand the characteristics that influence consumers (i.e. amount people earn, their occupation, economic growth)
T
echnological Factors:
Many businesses use emerging technologies to try and reduce operational costs, increase efficiency & profits, and improve stakeholder experience
The impacts of doing this are that it:
Saves time & money by automating and optimising routine processes and tasks
Increases productivity and operational efficiency
Makes fast business decisions based on outputs from cognitive technologies
Avoid mistakes and 'human error'
Processes vast amounts of data to generate quality information which can be used to expand the business
Increases revenue by identifying & maximising revenue opporutnities
L
egal Factors:
Organisational law - The legal status of a business determines the types of activities it is allowed to carry out
Employment law - Operate differently in different countries. E.g. minimum wage in the UK compared to the US
Consumer law - Regulate legal relationships between consumers and businesses
Health & Safety legislation - Vary between countries. E.g. heavy fines can be imposwed on a business with high volumes of polutions
E
nvironmental Factors:
Carbon footprint - Measure of CO2, determined by greenhouse gases generated by activies of the business
Digital waste - digital/electronic equipment no longer used and is discarded, Needs careful disposal and compliance with legal requirements
R1.3 - The measurable value of digitalisation to a business
Sales & Marketing:
Marketing is important when selling/promoting a product or service
Sales are important because it's how a business thrives
Can't sell a product/service without marketing it
Marketing comes first, identifying the customer's wants & needs
Social Media - Brand/Product Promotion:
Social media used to promote products
Allows (potential) customers to interact with the business
Quickly answer queries, share news, promotions, and updates
Keeps customers engaed and intersted
Increased Communication:
Social media helps business by:
Channel engagement - Boosts engagement across different channels by engaging with more customers & delivering a better online experience
Business growth - Interaction between businesses and the customer increases sales and improves brand loyalty
Brand building - Social media boosts business visibility with potential customers
Online Opportunities for Commerce:
Customers expect fast despatch of services/products
Customers expect instant access to products/services through websites and customer service availability 24/7
Businesses have moved sales operation online due to people shopping at least once a week online
Reach a much larger audience & increase brand awareness
Customer Retention:
C
ustomer
R
etention
R
ate is the number of customers a business has retained over a given period
Formula to calculate CRR:
1,200 customers at the end of the period - 300 customers acquired
÷
1,000 customers at the beginning of the period
x
100 = 90% CRR
How customers view a business can effect potential revenue and success
If customer service is poor or non-existent, they'll find other products
This can be because they don't feel valued/ important to the business
Digtal Analytics:
Collection, measurement, analysis, visualisation, and interpretation of digital data, indicating user's behaviours accessing a business' website, mobile sites, mobile apps, social media, etc.
Used to improve customer experience, attract new audience
Gives insight into performance of the business in the digital marketplace
Info gathered helps track their products/ services performance, info related to audience, how to change or enhance promotion of products/ services
Businesses can create efficient plans and business deicions out of this info
Remote Working:
Organisations with a large remote workforce require less office space, and fewer materials & utilities, which reduces costs
R1.5 - The role of technical change management in digital operational integrity
The Role of Technical Change:
Organisational change is change, reorganisation or replacement with respect to a process, method, system, operation, technology and structure of an organisation
This change can be
developmental
,
transitional
, and
transformational
The reasons for change can be financial, economic, technological, social, political, legal, staff related, etc
Digital Change for an Organisation:
Important to identify where change is needed and not invest in digital technology for the sake of it
Important to carefully consider the goals and objectives of the business
Rationale of Change:
After identifying how digital change can support business goals, the organisation has to convince the stakeholders
People's job, how they work together and how they complete tasks are impacted due to this
Engaging stakeholders isn't always easy
Important all staff understand reason for investment
Internet of Things:
Physical objects that can be worn or placed around your house
Communicate via internet or other
Integrated sensors, processing ability, and other ways to communicate data
Acts as home security, activity tracker, industrial security and safety, AR glasses, motion detection
Cloud Computing:
Access system resources, like data storage or computing power without direct managment
Reduces capital expenses, improving system reliability, greater flexability and stability, redundancy
Used by businesses with streaming platforms for audio/ video, and media files being stored remotely
Examples: Google Drive, Dropbox, OneDrive, etc
Reduces costs of managing/ maintaining IT systems
Big Data Analytics:
Advanced techniques against very large, diverse data sets that include structured, semi-structured and unstructured data from different sources
Terabytes worth of storage
Used in GPS data, advertising & marketing data, media & entertainment
Businesses benefit from customer's digital footprint (what they buy, wants/ needs, etc)
R1.4 - The influence and impact of digitalisation within a business context and market environment
Digitalisation means to convert business processes over to use digital technologies. It allows us to bypass the logistics of getting everyone together in a meeting room. Instead, we can now talk with one another virtually.
More examples are:
Self-service checkouts instead of a cashier
Retail customer who shop online
Cloud computing to store, distribute and analyse info and docs