Unit 2: Understanding Organisations

General guidance:

This unit is externally assessed. The assessment will be a 90-minute written examination.

Questions will be set in the context of a pre-release case study. Each paper will be based on a

different case study.

Centres will be issued with a sample paper, specimen answers and a mark scheme – a SAM (sample assessment material).

Visit this website for up-to-date information: http://developments.edexcel.org.uk/diplomas/what/lines/eng/

The unit has seven learning outcomes and the assessment will have questions that address the assessment criteria as listed in this table (reproduced from the unit specification).

Learning outcome number / Learning outcome
The learner should: / Assessment criteria
The learner can:
LO1 / Understand how the type, structure and ownership of organisations relate to their objectives. / Explain how the type, structure and ownership of organisations relate to their objectives.
LO2 / Understand typical organisational functional activities, roles and responsibilities. / Explain typical organisational functional activities, roles and responsibilities.
LO3 / Understand the principles of key technology-enabled business processes, considering local, national and global dimensions. / Explain the principles of technology-enabled business processes considering local, national and global dimensions.
LO4 / Understand success and risk indicators for organisations. / Assess success and risk indicators for organisations.
LO5 / Understand the implications of introducing different types of technology systems into an organisation. / Explain the implications of introducing different types of technology systems into an organisation.
LO6 / Understand the principles of integration and interaction between systems. / Explain the principles of integration and interaction between systems.
LO7 / Be able to analyse and document business processes and propose technology-enabled improvements. / Carry out a structured business analysis of an organisation and propose technology-enabled improvements.


Learner guidance

l  The questions which follow relate to the unit assessment criteria and the range statements in the ‘What you need to cover’ section of the unit specification.

l  The assessment criteria have descriptors: for example, ‘identify’ and ‘describe’.

l  The descriptor will give you an idea of what type of question to expect:

Descriptor / Type of question
Describe / Short answer, long answer
Explain, Review, Apply / Long answer: explain why choices were made.
Analysis / Being able to apply a theoretical concept to a real situation to draw a conclusion.
Assess / Long-answer, looking at strengths and weaknesses.
Propose / Suggest and justify a solution to a problem.

Learning outcome LO1

Understand different types of business organisation:

l  Public sector

l  Private sector

l  Not-for-profit

l  Voluntary.

Understand different types of business organisation structure:

l  Hierarchical

l  Matrix

l  Flat.

Understand different business organisation ownership:

l  Sole trader;

l  Partnership;

l  Private limited company;

l  Public limited company (PLC);

l  Government-owned;

l  Charitable trust;

l  Co-operative.


Understand different business objectives:

l  maximise profit;

l  enhance efficiency;

l  improve competitiveness;

l  enhance customer service;

l  raise awareness.

Learning outcome LO2

Understand typical organisational functional activities:

l  Administration;

l  Customer Service;

l  Finance/Accounting;

l  Sales and Marketing;

l  Operations and Production;

l  Research and Development;

l  Procurement;

l  IT.

Understand typical organisational roles and responsibilities:

l  Director

l  Divisional Head

l  Team Leader

l  Project Manager

l  Supervisor

l  Team Member.

Learning outcome LO3

Understand the principles of key technology-enabled business processes, considering local, national and global dimensions:

l  MIS

l  Customer

l  relationship management

l  supplier management

l  product development

l  service delivery

l  people management

l  stock control

l  finance.

Learning outcome LO4

Understand success and risk factors for organisations:

l  Profitability;

l  cash flow and liquidity;

l  return on investment;

l  net present value;

l  competitive pressures;

l  economic environment;

l  market trends.

Learning outcome LO5

Understand the implications of introducing different types of technology systems into an organisation:

l  impact on procedures;

l  training needs;

l  integration of legacy systems;

l  legal requirements, such as copyright;

l  security and data protection.

Learning outcome LO6

Understand the principle of integration and interaction between systems:

l  interfaces

l  data structures

l  protocols.

Learning outcome LO7

Be able to analyse business processes:

l  documents, e.g. invoices, delivery notes, order forms, purchase/requisition forms;

l  time and motion study;

l  SWOT analysis;

l  product life cycle analysis.

Be able to document business processes:

l  data flow diagrams;

l  flow charts;

l  structure diagrams.

© Pearson Education Ltd 2008 Information Technology page 4 of 4

Level 3 Advanced Diploma Unit 2