Level 2 Diploma in Business Administration Unit 2 – Understand employer organisations 2.1 Internal and External Influences on an organisation 2.2 The use of different models of analysis in understanding the organisational environment 2.3 Why change in a business environment is important

Understand employer organisations This presentation will improve your knowledge about your own and other employer organisations This presentation should be used alongside the activities listed throughout Ask your assessor if you are unsure about anything.

Understand employer organisations Influence: To ​affect or ​change How Someone or Something ​Develops, ​Behaves, or ​Thinks

Understand employer organisations Organisations have many different influences. These influences dictate how the organisation operates, how the staff behave and how the customers or service users respond. There are two main types of Influence for an organisation Internal Influence External Influence

Understand employer organisations Internal Influences Influences that come from inside the organisation Such as: Communication Good communication within an organisation can have a positive influence on staff and customers, making sure information is clear and there is no confusion Bad Communication can have a negative influence, affecting both staff and customers

Understand employer organisations Internal Influences Influences that come from inside the organisation Such as: Company Image and reputation A good reputation can have a positive influence, bringing new customers and enhancing company growth. A negative image can result in less customers and less revenue.

Understand employer organisations Internal Influences Influences that come from inside the organisation Such as: Management Skills Good managers can ensure the staff and departments are managed effectively, to make sure the work flow is controlled. Managers with ineffective skills will not be able to manage the work flow, leading to loss of customers, staff and revenue.

Understand employer organisations External Influences Influences that come from outside the organisation Such as: Taxes Increased taxes reduces profits Decreased taxes increases profits

Understand employer organisations External Influences Influences that come from outside the organisation Such as: Competition If there is less competition there is more chance of retaining customers. More competition leads to more choice of provider for customers and service users.

Understand employer organisations External Influences Influences that come from outside the organisation Such as: Lending conditions Good lending conditions mean easy access to loans with favourable repayment terms. This leads to increased opportunities for investment for an organisation to grow. Tight lending conditions will result in lower investment with limited development for the organisation.

Understand employer organisations External Influences Influences that come from outside the organisation Such as: Lending conditions Good lending conditions mean easy access to loans with favourable repayment terms. This leads to increased opportunities for investment for an organisation to grow. Tight lending conditions will result in lower investment with limited development for the organisation.

Understand employer organisations Your organisation will have both internal and external influences. It’s important to remember: Internal influences can be changed and managed easily as they come from within. External Influences cannot be controlled. You have no control over External influences but you do have control over INTERNAL influences.