Assignment front sheet
Qualification Unit number and title
Pearson BTEC Level 5 HND Diploma in
Business
UNIT 1: BUSINESS ENVIRONMENT
Student name Assessor name
Date issued Completion date Submitted on
01/03/2015 22/05/2015
Assignment title
Study of Business Environment and the factors associated with it.
Learning Outcome
Learning outcome Assessment
Criteria In this assessment you will have the opportunity to present evidence that shows you are able to: Task no.
Evidence
(Page no)
LO1
LO1 Understand the organisational purposes of businesses 1.1 identify the purposes of different types of organisation
1
1.2 describe the extent to which an organisation meets the objectives of different stakeholders 1
1.3 explain the responsibilities of them an organisation and strategies employ 1
LO2
LO2 Understand the nature of the national environment
in
which businesses
operate 2.1 explain how economic systems attempt to allocate resources effectiv
2
2.2
assess the impact of fiscal and monetary policy on business organisations and their activities 2
2.3 evaluate the impact of competition policy
and other regulatory mechanisms on the activities of a selected organization 2
LO3
LO3 Understand the behaviour of organisations in their market environment 3.1
explain how market structures determine the pricing and output decisions of businesses 3
3.2 illustrate the way in which market forces shape organisational responses using a range of examples 3
1
3.3 judge how the business and cultural
environments shape the behaviour of a selected organization 3
LO4
LO4 Be able to
assess the significance of the global
factors that shape national
business activities 4.1
Discuss the significance of international trade to UK business organisations 4
4.2
Analyze the impact of global factors on UK business organisations 4
4.3 Evaluate the impact of policies of the
European Union on UK business
organisations.
4
Learner declaration
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.
Student signature: Date:
2
In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades
Grade Descriptor
Indicative characteristic/s
Contextualisation
M1
Identify and apply strategies to find appropriate solutions
• Effective judgements have been made
• Complex problems with more than one variable have been explored
• An effective approach to study and research has been applied. • Effective judgements have been made in understanding the organisational purpose of Armani and other organisations.
• Complex problems with more than one variable have been addressed in identifying the organisational purpose(s) of businesses.
• Applied in understanding the organisational purposes of business.
• This can be achieved by using own judgement which has been made by using various aspects or views for e.g.
3.3Judge how business and cultural environments shape the behaviour of Armani or other organisation. ( Evidences of effective judgement should be given)
M2
Select / design and apply appropriate methods / techniques
• A range of methods and techniques have been applied
• The selection of methods and techniques/sources has been justified
• Appropriate learning methods/techniques have been applied. • Relevant theories and techniques have been applied .
• A range of methods and techniques have been applied.
• A range of sources of information has been used.
• The selection of methods and techniques/sources has been justified.
• The design of methods/techniques has been justified.
• Complex information has been processed/synthesised.
• There can be achieved by answering the analysing the impact of various global factors on Armani or other organisations. Apart for that there are few more opportunities where learner can met the criteria by analysing or using the various range of methods to justify the answer.
M3
Present and communicate appropriate findings Communication is appropriate for familiar and unfamiliar audiences and appropriate media have been used. • The appropriate structure and approach has been used.
• There is coherent, logical development of principles/concepts for the intended audience.
• Communication has taken place in familiar and unfamiliar
3
• contexts.
•
The communication is appropriate for familiar and unfamiliar audiences and appropriate media have been used. ( Can be achieved by the presentation)
D1
Use critical reflection to evaluate own work and justify valid conclusions
• Conclusions have been arrived at through synthesis of ideas and have been justified
• Realistic improvements have • • • Conclusions have been arrived at through synthesis of ideas and have been justified by using different but appropriate examples.
The validity of results has been evaluated using defined criteria.
Self-Criticism of approach has taken place during the evaluation.
•
Realistic Improvements have been proposed against defined characteristics for success
D2
Take responsibility for managing and organising activities • Autonomy/independence has been demonstrated
• Substantial activities, projects or investigations have been planned, managed and organised
•
•
•
•
• Autonomy/independence has been demonstrated.
Substantial activities, projects or investigations have been planned, managed and organised.
Activities have been managed.
The unforeseen has been accommodated.
The importance of interdependence has been recognised and achieved.
D3
Demonstrate convergent /lateral / creative thinking
• Self-evaluation has taken place
• Problems have been solved
• Effective thinking has taken place in unfamiliar contexts. •
•
• • • Ideas have been generated and decisions taken understanding the organisational purposes of businesses.
Self-evaluation has taken place.
Convergent and lateral thinking have been applied.
Problems have been solved
Innovation and creative thought have been applied.
• Receptiveness to new ideas is evident.
•
Effective thinking has taken place in unfamiliar contexts.
4
Assignment title Study of Business Environment and the factors associated with it.
Purpose of this assignment
The purpose of this unit is Aim
The aim of this unit is to provide learners with an understanding of different organisations, the influence of stakeholders and the relationship between businesses and the local, national and global environments.
Summary of Learning Outcomes
To achieve pass learners must demonstrate the ability to deliver sufficient evidence to meet the criteria for assessment and subsequently meet the following learning outcomes. This will be achieved through the methods outlined above.
LO1 Understand the organisational purposes of business
LO2 Understand the nature of the national environment in which businesses operate
LO3 Understand the behaviour of organisations in their market environment
LO4 Be able to assess the significance of the global factors that shape national business activities
Scenario:
[Case Study]
ARMANI THE ULTIMATE FASHION BAND
Giorgio Armani, 79, is Chief Executive Officer of the Armani Group and sole shareholder of Giorgio Armani S.p.A. , one of the world's leading fashion and lifestyle design houses, with 5,000 direct employees,
13 factories, and a direct network of 500 exclusive retail stores in 46 countries worldwide. Under Mr Armani's direction, Giorgio Armani S.p.A. is one of the few remaining independent, privately-owned companies in its sector, with a proven business strategy that has capitalised on the worldwide power and potential of the Armani brand name.
A child in Mussolini's Italy, Giorgio Armani grew up to be a fashion revolutionary. He liberated men and women from the straitjacket of traditional tailoring and introduced them to the pleasures of casual chic. Yet he is himself a perfectionist who wields complete control over what has become a worldwide brand. Giorgio Armani S.p.A. was founded in Milan on July 24th, 1975 and later that year, the first Giorgio Armani Borgonuovo 21 ready-to-wear collection was presented. After a successful first year the Company began to broaden its portfolio of clients and expanded its European presence. 1978 marked an important turning point in the company's history when it established a licensing agreement with GFT (Gruppo Finanziario Tessile - Textile Finance Group). GFT was the world's largest manufacturer of designer clothing, competing at the highest end of the fashion business; its success is rooted in its history, cutting edge technologies, wellorganised labour, GFT single-handedly revolutionized the way artistic clothing was conceived, manufactured, marketed, and distributed. Its heart was on the pulse of social trends and needs, keeping it way ahead of its competitors. This licensing agreement resulted in Giorgio Armani S.p.A. obtaining the
Assignment brief
Unit number and title UNIT 1: BUSINESS ENVIRONMENT
Qualification Pearson BTEC Level 5 HND Diploma in Business
Start date 01/03/2015
Deadline/Hand-in date 22/05/2015
Assessor
opportunity to invest in a new headquarters that included showrooms and press offices.
In 1979 overseas expansion began by establishing the Giorgio Armani Corporation in the United States. By the end of the 70s Giorgio Armani S.p.A. had emerged as one of the leading international fashion houses. In the early 80s Giorgio Armani S.p.A. established an important licence agreement with L'Oreal (formerly H.Rubinstein) for fragrances and launched the Emporio Armani and Armani Jeans collections. The company also began to strengthen its commercial and marketing divisions, while building the values of its brands and the philosophy of management, which continue to be fundamental to the success of the business today.
In the second half of the 80s, Giorgio Armani S.p.A. continued its overseas expansion by opening Giorgio Armani Japan in 1987 through a joint venture with Japanese Itochu Corporation and the Seibu Department Store, followed by the signing of a licensing agreement for eyewear with Luxottica Group Spa in 1988. As part of its strategy to maintain control over product quality and distribution, Giorgio Armani S.p.A. initiated a series of share investments, which today include Intai Spa (100%), Antinea Srl (100%) and the manufacturing company Simint Spa (100%), the complete acquisition of which was finalised in 2001
In 1999, a new Accessories Division was created including a first e-commerce presence with www.armaniexchange.com in the United States.
In the five years from 1998 to 2003 the Armani Group spent of Euro 600 million of internally generated funds on strategically important activities, including the evolution of its manufacturing base, the expansion and renovation of its retail network, the diversification of its product lines and the enhancement of its headquarters facilities in Milan.
In 2000, Giorgio Armani's, 25th anniversary year, the company launched its global website. In 2001, continuing with the Group's strategy to take greater control over all aspects of its manufacturing, distribution and retail activities and to further focus on the 'Made in Italy' content of its brands, a joint venture company with Vestimenta SpA (manufacturers and distributors of Italian tailored men‘s and women‘s apparel and one of the Armani Group's licensees since 1979) was formed for the production and distribution of the men's and women's Giorgio Armani top line. In 2002, the Group's retail investment programme continued at a fast pace with 16 store renovations and 30 new store openings in strategically important cities worldwide, including the second Armani multi-brand store covering 3,000 square metres in Hong Kong, which also signalled the launch of a strategic retail expansion programme for China. On the manufacturing front, two important acquisitions were completed: Deanna S.p.A. for the production of high quality knitwear and Guardi, which controlled four specialist shoe makers, to support the further growth of the Group's shoe business. Product line expansion continued with the launch of Emporio Armani Jewellery; the expansion of the Armani Jeans line in Japan and the United States; and, the further growth of the Armani Casa brand around the world through the opening of seven new stand-alone stores in Milan, Istanbul, Zurich, Hong Kong, Moscow, Marbella and Riyadh. Safilo S.p.A is awarded with a new licence for the production and distribution of Giorgio Armani and Emporio Armani Eyewear
In 2002 Armani purchased IT based store systems for 28 of its US retail stores. These were used for store operations management, supporting critical store level activities including receiving, stock adjustments and transfers. The systems were deployed throughout the stores in a wireless environment, and deployed using handheld devices within the store. -Providing our customers with high levels of service is very important,- said Stephen Culver, Chief Information Officer with Giorgio Armani, US. ?The system has provided Armani with a strong store operations solution that enables real-time information to flow between the store and headquarters. With this information, we have been able to reduce inventory, improve labour management, and most importantly, improve customer service?.
In 2005, Armani announced new important strategic initiatives underlining the company's continued approach to expansion: the launch of Armani Privé couture collection reflecting the increasing desire for customisation and personalisation at the top end of the market; and the exclusivity of Armani/Privé expanded its frontiers with the launch of Borgo 21 timepieces. A contractual agreement was signed between Giorgio Armani S.p.A. and EMAAR Hotels & Resorts LLC for the development of an exclusive collection of 'Armani Hotels and Resorts'. On the operational side –A|X Armani Exchange purchased a web-based Product Lifecycle Management and Production Tracking system, e-SPS, to streamline and integrate product development and global sourcing. This provided real-time visibility into merchandising, design and production activities from product concept to delivery, streamlining its entire supply-chain process.
In 2006, the Armani Group announces his support of the (Product) RED, the pioneering global business initiative launched by Bono and Bobby Shriver for The Global Fund in the fight against AIDS in Africa. In support of RED, Armani is designing an Emporio Armani (Product) RED capsule collection, including clothing, accessories, eyewear, watches, jewellery and fragrances.
The world's first Armani Residences opened in the Burj Dubai in 2007 and the first group of apartments sold out in a few hours., Armani's fourth concept store after Milan, Hong Kong and Munich, was opened in Tokyo's Armani/Ginza Tower; the store covers 6,000 square metres including the first Armani/Spa.
At the end of October 2008, the Armani Group announced its plans for a 'fast-track' expansion in the Duty Free and Travel Retail marketplace, declaring its future planned openings at London Heathrow airport, in Guam's prestigious redevelopment of the DFS Galleria and at Japan's Narita airport. Meanwhile, another agreement was also established between Giorgio Armani S.p.A and Como Holdings, Inc. to create a new joint venture company, called Presidio Holdings Ltd., for the management and expansion of the A/X Armani Exchange brand throughout the world. Finally, a global beauty website www.giorgioarmanibeauty.com was launched, demonstrating the company's commitment to embrace fashion and beauty within the online sphere.
During the same year, a strategic marketing agreement was signed between Giorgio Armani and Samsung to develop high-end electronic and consumer products, including the launch of a Giorgio Armani mobile phone, the Armani/Samsung Television and the Emporio Armani Samsung mobile, -Night Effect -.
The hotels opened in early 2010 and Armani remarked =?I‘ve been working on this for five years. I‘m finally going to see what I designed, and it‘s a bit nerve-racking to think that what I liked five years ago might look old now. ?In ever-changing, constantly evolving Dubai, five years is a long time – some of Dubai‘s most iconic buildings, such as the Burj Al Arab and Emirates Towers are only 10 years old.
Out of all these celebrity-endorsed projects, Giorgio Armani is probably the first to make it past the post. =As a man used to launching new fashion collections every season, he may indeed worry that his work now looks a little dated, but his neutral tones and simple minimalist style – alien to the region‘s more, how to say it, ?colourful? tastes – will offer a pleasant alternative to travellers‘ (www.telegraph.co.uk April 2010) From initial sales of $14,000 in its first year, 1975, the company grew to sales of $100m only a decade later. Today it has an annual turnover of close to $2bn.
Did he really want all this? He did not predict it, he says. -When we started it was just one line, men and women; it was slow, we had time. It was much less aggressive 20 years ago, more balanced.- But the entire fashion business has changed. Fashion is no longer the exclusive resort of the rich and whereas once, aside from clothes, it extended only to ephemera - handbags, pens, anything with a relatively short life, it has
grown to embrace every aspect of lifestyle. Everything is susceptible to fashion now.? Awareness
Giorgio Armani was one of the first designers to exploit the marketing power of media stars. He began a long relationship with Hollywood when he designed Richard Gere's wardrobe for the 1980 film American Gigolo. A string of other movie credits would accumulate throughout the next two decades, including Batman (1989) and Pulp Fiction (Emporio Armani) and, appropriately, Ready to Wear (both 1994). Armani sponsored or provided wardrobes for the musical tours of several pop musicians, including Paul Simon, Billy Joel, David Bowie, and Eric Clapton.
Armani continues full advantage of the celebrity culture using Lady Gaga, Ronaldo and others to model his products as well as showing his collections on a variety of social media such as Facebook and Twitter Armani‘s virtual store in Second Life has been open since 2007, ?Fashion designer Giorgio Armani has opened up shop in Second Life, with a store modelled on his flagship location in Milan, his company said on Wednesday. The silver-haired Armani will send his avatar to celebrate the opening of the virtual store, and he will be interviewed in the virtual world by fashion Web site Style.com‘s fashion director Candy Pratts Price .....?Finally, I can really be in two places at once,? said the ever-busy designer said. Second Life residents will be able to buy virtual Armani items with Linden dollars or connect directly to his recentlylaunched online store for non-virtual vestments. (www.reuters.com)
Giorgio Armani Style and Life
Mr Armani's philosophy of fashion and style, together with his entrepreneurial ability, has been central to the success of Giorgio Armani S.p.A. He oversees both the company's strategic direction and all aspects of design and creativity. After thirty years of running his own label, he now presides over a stable of collections, including his signature Giorgio Armani line, Giorgio Armani Privé, Armani Collezioni, Emporio Armani, AJ | Armani Jeans, A/X Armani Exchange, Armani Teen, Armani Junior, Armani Baby, and Armani Casa home interiors, offering a choice of lifestyles to the marketplace. Today, the company's product range includes women's and men's clothing, shoes and bags, watches, eyewear, jewellery, fragrances and cosmetics, and home furnishings.
People in the business are constantly predicting his demise, but it does not happen. He has the reputation of being something of a potentate. He is also said to be a hard taskmaster - someone who will not tolerate imperfections but is equally known to pay his staff extremely well. Like a lot of very successful people, he seems to combine the demagogic with the democratic - he has the common touch. A friend of his described him to me as -someone who is perfectly sure of who he is and what he does, and this certainty makes him completely free-. Armani‘s response was -that's not clever. You have to have doubts. I have collaborators I work with. I listen and then I decide. That's how it works.-
Armani always travels with a large group. Everyone calls everyone by their first name except for Mr Armani, who is always referred to and addressed as Mr Armani. He does not speak English, he has always refused to learn although he is bilingual, in Italian and French
His style became a statement about personal elegance and, of course, he was lucky. The timing of the rising feminism of the 1970s helped. Clothes had traditionally been seen as a symbol of the oppression of women. His innovation was casual chic – it is often said he introduced gentleness to men, and strength to women. To which other designer would the new female executive, with her enhanced sense of her own seriousness, turn?
Giorgio is a shy person who does not enjoy the limelight, for example, =at a private lunch, full of wealthy young potential customers - exactly the clientele you would think he would want to woo - he retreated into a back room‘. However before a fashion show he spends hours backstage orchestrating everything from the make-up to the lighting design – and goes round, with his nervous fastidiousness, reassuring the models, correcting their walk, touching them, patting their cheeks.
He has been pushed by the fashion conglomerates - in particular, he says, by Bernard Arnault, the chief executive of Louis Vuitton Moet Hennessy (LVMH) and Gucci. -The big internationals try to have everything. They buy everything. Before Mr Arnault it was quieter, certainly.- But he likes the competition. -I have to be better than others. If people hear that my competitors are doing better they will be very disillusioned.-
In 1999, under growing pressure, he completely restructured his management team, bringing in executives from other fashion houses – such as his commercial director, John Hooks. He has invested $700m in buying back factories from licensees in order to have total control over his own production. He may have missed some opportunities. -He probably should have gone into China sooner,- Hooks says (although Armani was one of the first to have a presence there). -But he has not made many mistakes. He is a very good entrepreneur. He takes risks.- But he has never changed his ethic. Armani is quoted as stating -I have never compromised. I learned to get where I am by work, I learned slowly. I was not certain of succeeding.- There is the issue of succession. Who will take over when Armani retires? To be a fashion designer at 85, he has said, would be absurd. -I say no to many propositions. Things that would have been convenient for me in one sense. I could have had a lot of money.- But so far he has not wanted to relinquish control. -I have always wanted to be free. For it to be me who decides. Mine is the last generation who will keep this spirit. I know this. The conglomerates have much more importance now. It has nothing to do with the person. We speak of Dior but Dior lives no longer. Chanel still exists thanks to Mr Lagerfeld. I hope Armani can exist without me.-
Armani is a rarity from a financial perspective too. Giorgio Armani has been the only shareholder of the company from its inception has not taken any bank loans... It has been one of those rare companies which has managed to have very healthy operating profits and ploughed back almost 700 million Euros into the business since 1999. Having this financial independence has helped Armani immensely as the company tested newer territories. With no pressures from shareholders and without having to bother about meeting quarterly targets, Armani has been able to operate quite successfully. Having this kind of financial independence to operate in has been one of the key success factors for Armani.
Armani, with its presence in diverse markets, a very wide brand portfolio, and interacting with diverse set of customers, faces a huge challenge of building a relevant and resonant personality; sustaining consistent brand personality. With the ever growing competition in the fashion industry and ever growing brand portfolio, building and nurturing this personality will prove to be a very big challenge for Giorgio Armani in the future.
Recognition
During his career Mr Armani has received many local and international awards. These include the Commendatore dell'Ordine al Merito della Repubblica, and Grand'Ufficiale dell'Ordine al Merito della Repubblica (Italy's highest government awards), and the Award for Best International Designer, Lifetime Achievement Award for men's wear and for art and fashion from the Council of Fashion Designers of
America. He has, in addition, been recognised with an Honorary Doctorate from London's Royal College of
Art, and has an Honorary Degree from Milan's Accademia di Brera. In 2006 he was awarded an Honorary Degree from London's Central Saint Martin‘s College of Art and Design, and in 2007 he received an Honorary Degree in Industrial Design from the Politecnico University of Milan.
Mr Armani has served as Goodwill Ambassador for the United Nations High Commission for Refugees. In 2003 he was honoured with the inaugural Rodeo Drive -Walk of Style- Award for his pioneering role in bringing the worlds of fashion and cinema together. In 2006, Giorgio Armani was honoured with other important awards: from the Dino Ferrari award for being the most renowned fashion designer in the world, to the Elle Award given to Mr Armani in Valencia, and the -Leonardo Award- presented to Mr Armani by the Italian Presidente della Repubblica, Giorgio Napolitano, in recognition of his status as a major representative of -Italian Quality- worldwide. In 2008, in Paris, the President of the French Republic, Nicholas Sarkozy, conferred the order of the Légion d'Honneur on the designer.
In 2000, New York's Solomon R. Guggenheim Museum celebrated the social and cultural influence of Mr Armani's career, placing special emphasis on his pioneering design work for the cinema, by staging an exhibition that has since been seen at some of the world's most prestigious museums, including the Guggenheim Bilbao, London's Royal Academy of Arts, Berlin's Neue Nationalgalerie, Rome's Terme di Diocleziano, Tokyo's Mori Arts Museum and Shanghai's Shanghai Art Museum. On February 20th, 2007, the exhibition reached its eighth venue at the Triennale di Milano in an expanded and enriched version with a striking new display over two floors.
He is proud of his clients' devotion. -I have never had anything to do with the kind of fashion that is influenced by the press or identified with the spirit of the season. My clients come for me, they come back each season for my spirit. That's the reality.- And so far the market trend appears to be proving him right. Because as consumerism grows, so does the power of the consumer. Every purchase involves a subjective choice, and people have continued to choose Armani
The Italian Fashion Industry
The Italian fashion industry is one of the largest in the world, with revenues of 48 billion euro, 70.000 companies and 700.000 people employed, makes Italy the most active in the world, in terms of quantity, second only to China, and holds leadership in the prêt-à-porter, even though Italy is not favoured by significant resources of raw materials or the cost of labour force.
50 years ago, Italy had virtually no fashion industry; no Italian designer enjoyed an international reputation. The country‘s wealthy commissioned their exclusive hand-made clothes from tiny specialist tailors in Rome, but most Italians found their dressmaking requirements met by small, local, businesses. Gentlemen ordered suits from traditional bespoke tailors, while their wives and daughters patronised whichever local dressmaker exhibited the greatest skill in replicating the latest fashions from Paris. Italian women with less income had to search the markets for fabric and sew their own clothes at home. The war years changed everything and provided opportunities. There were three significant developments at this time. After the Second World War, an investment plan, the Marshall Plan, was implemented to rebuild Europe and to create a stronger economic foundation, new factories were built in Italy which employed skilled craftspeople who came from the small hill towns of the north and the vanishing villages of the south and who needed to find work. The combination of the very latest machinery with an exceptionally skilled workforce created an unparalleled garment manufacturing capability. The designers no longer followed the French lead by copying their style but created a fashion identity that seemed distinctively Italian. This benefited greatly from the huge trend to acquire everything Italian, from espresso coffee to leather-goods, which was particularly noticeable in America throughout the post-war years. Unlike the French sophistication, the Italian clothes emphasised wearable elegance which was particularly appreciated by the Americans. Actresses such as Audrey Hepburn favoured the glamorous evening dresses and the stylish but simple daywear
At the same time the emerging Italian fashion industry quickly developed a natural marketing flair together with something what would currently be called brand focus. Talented new designers certainly showed impressive commercial expertise in addressing an important emerging fashion consumer who was,
as yet, poorly served by more established fashion centres: the post-war working woman. They also developed an unrivalled ability to produce high quality apparel in luxurious fabrics and Italy is the which British, French and American designers all entrust the production to of their garments even though nowadays there are very much cheaper labour markets.
700.000 Italian professionals represent the basic pieces for a process which still needs quality, specialisation and ability to deliver.
Italians have a reputation for many other fashion items, one of these is leather goods including shoes. =A recent study by the Italian bank Banca Nazionale di Lavoro (BNL) said that the Italian shoe industry, which is worth 100 trillion lire
($44 billion), is the largest in the world and accounts for 14.5 percent of footwear production globally‘ Despite the number of large global companies that that can produce shoes cheaply, the Italian companies are surviving even after a decline in the 1990s; for three years, production fell significantly, dropping by more than 10 percent in 1999. Since 2001 the country's footwear industry has been on a rebound.
The downturn, however, caused some smaller businesses to close while others were forced to join bigger groups to survive. However it also stimulated the Italian industry to reflect on how new technology and design techniques could improve their business performance.
-A significant part of the recovery in the Italian industry can be seen in the move to increase the quality of the shoes. The companies reacted to the downturn by investing in research and design so that innovation in models and colours was a feature of last year's production,- said Pulisia Di Falco, one of the two authors of the BNL study.
Italian shoemakers believe that the Italian artisanal approach can be adapted to more modern production techniques without losing any of its tradition or style. (adapted from www.nytimes.com)
Task 1
1.1 Provide a brief background of Armani. This should include a description of its mission, vision, short and long-term objectives, type of sector it belongs (private or public sector.
Discuss how this organisation has been impacted by changes in its industry. In this part, focus on the constraints within which Armani has to operate in its sector. Provide evidence and reference the sources.
Identify the purposes of different types of organisations and compare them with purpose of Armani.
1.2 Identify the key stakeholders of Armani?
Identify their interests in and how they influence and impact Armani. How the organisation is meeting the objectives towards their stakeholders.
1.3 Using the Stakeholder Analysis matrix, plot where, in your opinion, each stakeholder might stand based on your research and analysis. Make sure your analysis is based on evidence and research and do NOT guess or make wild assumptions.
Explain Armani responsibilities to its stakeholders and identify the strategies it adapts to meeting their needs and expectations.
Task 2
2.1 What specific benefits and constraints that organisations might face operating in a different economic system (i.e. in free and command economic systems)? Look at specific political, economic and social aspects such as government interference, population, labour force, market growth, exchange rates, trading partners, consumer tastes and preferences. Given answer can be correlated with the Armani or any other organisation.
2.2 Assess the impact of fiscal and monetary policy on business organisations and their activities. Using the concept of Aggregate Money Demand (AMD = C+I+G+X-M) or otherwise, explain with reasons, what might happen to business activity in general and to Armani specifically, if the following happened:
i. A general fall in the level of income tax?
ii. A rise in the value of the pound? iii. A fall in interest rates? iv. A large increase in unemployment?
v. A large increase in the level of Government expenditure?
2.3 Evaluate the impact of government-related regulations including competition policy based on Armani.
Task 3
3.1Explain how market structures determine the pricing and output decisions in various organisations.
3.2Illustrate the ways in which market forces shape organisational using a range of examples from Armani or other organisations.
3.3Judge how business and cultural environments shape the behaviour of Armani.
Task 4
4.1 Discuss the importance of international trade, and globalisation to Armani or other organisations. Use the varieties of examples to support your answer.
4.2 Analyse in what ways the role of World Trade Organisation (WTO), emerging markets (BRIC countries – Brazil, Russia, India and China) and protectionist tendencies of national governments market opportunities; global growth; ; EU membership; EU business regulations and their incorporation in to UK law; EU policies eg agriculture (CAP), business, competition, growth, employment, education, economics and finance, employment, environment, science and technology may impact on Armani or other organisations in the next 10 years or so.
4.3 Evaluate the impact of policies of the European Union on UK business organisations by using Armani or other organisations.
Evidence of Presentation should be attached with the assignment.
---End of assignmentMaterials for reading and consulting:
Resources:
Textbooks
BPP — Organisations, Competition and Environment (BPP Publishing, 2003)ISBN: 0751712469
Brewster D — Business Economics (International Thompson Business P, 1998)ISBN: 1861524250
Dawes B — International Business: A European Perspective (Nelson Thornes Publishers, 1995)ISBN: 0748718605
Dicken P — Global Shift Transforming the World Economy (Paul Chapman Publishing, 1998)ISBN: 1853963674
Dunnett A — The Macroeconomic Environment (Prentice Hall, 1997) ISBN: 0582305810
Griffiths A and Wall S — Applied Economics (Financial Times Prentice Hall, 2001)ISBN: 0582025036
Hill B — The European Union (Heinemann, 1998) ISBN: 0435332147
Hornby W — Business Economics (Financial Times Prentice Hall, 2001) ISBN:
0273646036
Hurl B — Privatisation and the Public Sector (Heinemann, 1995) ISBN: 0435330322 Lipsey R — Principles of Economics (Oxford University Press, 1999) ISBN:
0198775881
Parkin M — European Economics (Pearson Education, 2002) ISBN: 0201596083
Samuelson P — Economics (McGraw Hill, 2001) ISBN: 0071180648
Sloman J — Economics (Financial Times Prentice Hall, 2002) ISBN: 0273655744
Word Count
Learners must state the exact number of words they have used on the assignment submission form and comply with the word count of 3,500 with a margin of +/- 10%. However, please note that the calculations, tables, bibliography and appendices are excluded from word counts.
Plagiarism and collusion
Any act of plagiarism and collusion will be seriously dealt with according to the Edexcel plagiarism policy. Basically, plagiarism occurs when excerpts, ideas, passages taken from other sources are not properly acknowledged and referenced both in the body of the text and in reference. It is the learner‘s responsibility to ensure that they understand all Edexcel guidelines with regards to plagiarism and what Edexcel considers to be an academic offence.
Collusion can be understood as the submission of works produced in collaboration for an assignment based on the assessment of individual work. It is a severe academic offence to share a learner‘s work with others who submit a part or the whole of it as their own work. The College has mechanisms in place to detect plagiarism and collusion.
Learners must sign the declaration on the front of the assignment submission form.
Submission Guidance and Policies for Edexcel Students
This is an individual assignment. All parts of the assignment are required to be presented in a professional format, MS Word processed with full citation and references following Harvard system. Brit College strongly advises the learners to follow the guidance below:
• Brit College prefers Times New Roman 12 or Arial 11 in the body of the text.
• An assignment cover sheet and a receipt must be attached along with each submitted assignment.
• All assignments must have clear headings and sub-headings where necessary.
• Make sure you state the word count on the title page.
• Assignments must be printed in black and white.
Late Submission and Resubmission
• Assignments will not be accepted for assessment by lecturers unless an extenuating circumstances form has been filled in and duly authorized by a member of staff.
• Students will receive the feedback form and guidance from the lecturer to improve in the areas of their weaknesses on their first submission. Please note that assignments can be re-submitted only once. A resubmitted assignment will be awarded a failed grade should it not meet the required pass grade marks and results in retaking the module.
• Please note that a resubmitted assignment will earn a maximum pass grade should it sufficiently meet the required criteria.
• A fine may also apply in case of resubmission.
Extensions and Extra-ordinary Circumstances
• Extensions are only granted for documented medical reasons and/or other documented serious interruptions relevant to your ability to study.
• Please note that extensions are not allowed due to your inability to organize your work.
• Should there be any extra-ordinary circumstances; the College should be made aware of this in writing.
• The college preserves the right not to accept or mark the assignment in case you failed to inform it in time.