5CO01 Learning Outcome 1: Structure, Strategy and the Business Environment

The first part of 5CO01 typically focuses on the organisation itself: its structure, its strategy, and the external environment it operates in. The aim is to show how these connect and shape the way people practice works. Here is how to approach it. Always check your own brief for the exact wording of the outcomes and criteria.

Organisational structures

Be ready to explain your organisation's structure, for example functional, divisional, matrix or flat, and analyse its advantages and disadvantages. The key is not to describe structures in general, but to evaluate how your organisation's structure affects communication, decision-making and people practice.

Strategy and the operating environment

You will usually need to consider how external factors influence the organisation and its strategy. Analytical tools can help you organise this.

• PESTLE: political, economic, social, technological, legal and environmental factors
• SWOT: strengths, weaknesses, opportunities and threats
• Porter's Five Forces: for analysing competitive pressures

Making the link to people practice

The marks come from connection. Show how the structure, strategy and environment shape priorities for the people function, for example how a change in the market drives a need for new skills, restructuring, or a different approach to resourcing.

For the wider picture, see our complete 5CO01 guide, and read on for Learning Outcome 2 on culture and behaviour.