University	Institute of Leadership & Management (ILM)
Subject	Unit 507: Understanding the Organisational Environment

ILM Unit 507 Understanding the Organisational Environment Assignment

Awarding body	Institute of Leadership & Management (ILM)
Qualification level	ILM Level 5 in Leadership and Management
Unit number and title	Unit 507: Understanding the Organisational Environment
Assessment focus	Macro-environmental analysis of the learner’s own organisation

Assignment Overview

This unit asks you to examine how the external environment shapes your own organisation. Using a recognised strategic analysis tool, you will review the political, economic, social, technological, legal and environmental forces affecting the organisation and evaluate the consequences of selected economic, political and legal factors for its operations.

Learning Outcomes and Assessment Criteria

Learning Outcome – The learner will:	Assessment Criteria – The learner can:
1. Be able to examine how macro-environmental factors influence an organisation.	1.1 Conduct a PESTLE analysis of your own organisation. 1.2 Evaluate the advantages and disadvantages of PESTLE as a method of strategic analysis.
2. Understand the influence of economic and political factors on the operation of an organisation.	2.1 Evaluate the consequences of one economic factor for the organisation. 2.2 Evaluate the consequences of one political factor for the organisation.
3. Understand the legal requirements an organisation must comply with.	3.1 Evaluate the consequences of one legal factor for the organisation.

Guidance for Learners

• Base the PESTLE analysis on your own workplace and use current, verifiable evidence for each factor.
• When evaluating PESTLE, weigh its strengths (structure, breadth) against its limitations (static snapshot, risk of listing without prioritising).
• For AC 2.1, 2.2 and 3.1, choose one factor each and explain its direct and indirect consequences for the organisation’s operations, costs and strategy.
• Support your evaluation with relevant management theory and reference your sources.

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