Team Leading Level 2

Understand business

Understand organisational structures

Explain the differences between the private, public and voluntary sectors.

Private These are owned and are profit making organisations, with decisions coming from one person or a board dependent on the size of the organisation.

Public these are government financed and controlled at a central level or local level. Finance for these organisations comes directly from government and taxes.

Voluntary These are not-for-profit organisations and are usually charitable trusts. Although the relationship between voluntary/third sector organisations and public sectors is narrowing as governments commission more of the third sector into their work in the public sector.

Explanation of three features and responsibilities of different business structures.

Organisational feature structures can be:

Matrix

Functional

Product

Customer

Geographic.

Responsibilities of each structure can include:

Matrix has both vertical and horizontal reporting lines and so means that different people can work together over several different groups. The issue with this can be when one person has to take direction from 2 different managers/leaders and then decide how work is prioritised.

Functional structure of this group is by different functions performed e.g. HR, operations etc. The advantages of this are that groupings are separated by expertise. However this can mean that each group operates in isolation and does not take into account other aspects of the organisation.

Product this is headed up by one main person who oversees all aspects of the related product, meaning each product can be treated individually without impacting on the other products being delivered.

Customer done to ensure that specific customer expectations are met by a customised approach to service e.g. NHS

Geographic better supports logistics of different customer demands and needs. Reporting lines are normally upward to a central overseeing person.

Explain the relationship between an organisations vision, mission, strategy and objectives.

The vision gives the organisations overall purpose and goals and is usually uplifting and positive in order to inspire. The vision links into the mission as the mission is the overriding direction and purpose for an organisation. The mission is short term and has primary objectives; this is the foundation of an organisations strategic plan. It is also the foundation for the strategic planning process, which then feeds into setting the standards for the organisation and the objectives of what needs to be done in order for the organisation to achieve its mission.

Understand the business environment.

Describe the internal and the external influences on a business.

Internal influences can be:

Management changes

Staff morale

Financial changes

Resource changes

Cultural changes.

External influences can be:

Competitor threat

Economic changes

Industry changes

Legislative changes

Government change.

Explain the structure and use of a strength, weakness, opportunity and threat (SWOT) analysis.

A SWOT is a structure planning tool that can be used to identify the strengths, weaknesses, opportunities and threats involved with running a business.

Strength and weaknesses of SWOT are:

can help to determine changes that need to be made

financial position of an organisation

good use of technology

knowledge of workforce

level of morale

Direction from senior management.

Opportunities and threats of SWOT are:

Is based on external environmental factors e.g. growth or reduction in local trade, charges levied by local government, local activities such as long term development work in area.

Explain why change can be beneficial to business organisations.

Change can be beneficial by: increasing business, ensuring staying ahead of competitors by embracing technology and innovation, increasing productivity and staff morale, increasing sales and revenue.

Explain the health and safety responsibilities that every organisation has.

Organisations responsibilities need to include:

To lead on Health & Safety from the top e.g. board, directors etc.

to include Health & Safety on the agenda at board meetings

establish effective downward communication systems and management for Health & Safety

integrate good Health & Safety decisions into business matters

engaging the workforce to promote and achieve safe Health & Safety conditions

provide high quality training

have effective upward communication

identify and manage Health & Safety risks

having access to competent advice

Monitoring and reviewing Health & Safety.

Describe sustainable ways of working:

Not printing unnecessary documents, encouraging car sharing, offering flexible working hours, making good use of recycling and training staff on how to work sustainably, use the cloud for storage of documents, virtual working to reduce office space and carbon emissions.

Activity: Give examples of ways in which you work in a sustainable way. What improvements could be made?

Explain how legislation affects the management and confidentiality of information

Explanation as to how legislation affects the management and confidentiality of information can be:

information being passed onto third parties without prior consent or knowledge

deleting personal data and information after it has been used e.g. staff personal details being shredded once the employee has left the organisation (Data Protection Act)

Ensuring that sensitive data is stored so that only authorised personnel can have access to it.

Supplying information to staff and customers under Freedom of information Act.

Understand the principles of business planning and finance within an organisation

Explain the purpose, content and format of a business plan

The purpose of a business plan - what the organisation is trying to achieve or become and how it will take to achieve its objectives, including how it will allocate task and timelines for these.

Explanation of the content and format of a business plan - executive summary, description of the business what it is, products and services offered, the market it operates in, situational audit e.g. where the organisation is currently, aims and objectives, strategy and tactics that can be used, plans - e.g. marketing, operational, management and organisation, forecasting e.g. sales, financials including data and financial requirements.

Explanation of the format of a business plan - this depends on the presentation context but can be a summary to interest potential investors etc. See above as the content information also forms an appropriate format.

Explanation of the business planning cycle

A plan in a logical sequence that aids the task of company planning. The plans focus on establishing operational plans that will ensure that the production process is smooth from start to finish. The business plan also ensures that all levels within the organisation can work in tandem in order to benefit the company. The cycle begins with assessment of the company, identifying what the business is about, its goals and where it will operate. This helps to start the planning cycle and then enables the operation processes that then enable the completing process.

Explanation of the purpose of a budget

3 aspects to be mentioned forecasting for income and expenditure, a decision making tool and finally a business performance monitor.

DEFINITION of 'Budget' An estimation of the revenue and expenses over a specified future period of time. A budget can be made for a person, family, group of people, business, government, country, multinational organization or just about anything else that makes and spends money.

Explanation of the concept and importance of business risk management

This can include: risk management identifies, assesses and prioritises risks and unforeseen events within a business. This is important as the organisation needs to be able to realise its future objectives. If risk management is not carried out, then the likelihood could be that direction will be lost.

Explanation of the type of constraints that may affect a business plan

Size of the market, the demand within the market, supply availability, competitors, finance availability, skills, qualities and experience of employees, quality and direction of management teams.

Define a range of financial terminology.

Definitions of a range of financial terminology: price spread, long term loans, beta (measure of risk related to finance), long term debt and long term finance.

business financial terms definitions

source www.businessballs.com

acid test

A stern measure of a company's ability to pay its short term debts, in that stock is excluded from asset value. (liquid assets/current liabilities) Also referred to as the Quick Ratio.

assets

Anything owned by the company having a monetary value; e.g., 'fixed' assets like buildings, plant and machinery, vehicles (these are not assets if rented and not owned) and potentially including intangibles like trademarks and brand names, and 'current' assets, such as stock, debtors and cash.

asset turnover

Measure of operational efficiency - shows how much revenue is prod