1. 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

2. 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.

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

4. 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

5. 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

6. 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.

7. 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.

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

9. 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.

10. 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.

11. 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.

12. 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.