Unit 1 – Exploring Business

Assignment AB: Features Making Businesses Successful

Petroc
Petroc is a college of further education which provides education that is beyond compulsory
education but that is short of a degree level. This would typically be taken between ages 16-
18. The students of Petroc would either be preparing for University or working toward a
vocational qualification. However, Petroc isn’t the only place people can get these
qualifications, a lot of schools incorporate this as well. But at Petroc they only offer A Levels
to learners aged 16-18. If the learner is aged 19 or over they can study one of Petroc’s
Access to Higher Education Diplomas – which are intensive one year courses that prepare
students for university.
Features of a business (P1)

Petroc is an non profit government department as it is regulated by the Department of

Education. For example, as because of its non profit nature this means the products and
services (qualifications/courses) are a lot cheaper. Furthermore, any profits made such as
from hosted events such as tech dance and from the stores are used to expand/improve the
business. For example, in 2013 (6) C block received £4 million make over. The refurbishment
at the Barnstaple campus included 5,000sq m of classrooms and internal space in the
college’s C Block which offered new PCs, brand new facilities which then offered new
courses. On the downside of Petroc being a government department is that government
cuts may impact the overall operational activity causing a lack of lecturers thus causing
some parts of the college to close down. This could then lead to the tax payer needing to
make up for these losses. Commented [MA1]: P1 – ownership adequately
explained as Government-based

Liability is an obligation of a company, or amounts owed to lenders and suppliers. A

business can either have limited liability or unlimited liability. Limited liability which means
there is a limit (or cap) placed upon the amount that can be claimed. However, personal
possessions are not at risk. Whereas, unlimited liability which is where the owners share the
business responsibilities equally, they are responsible not just for the profits but also the
losses, such as debts and claims against the business. This means that all owners are
personally responsible for the debts and any shortfall of money which also means they hold
responsibility for any losses or any more shortcomings. This can lead to a risk of losing
personal possessions such as the owner’s car or even house. Petroc has unlimited liability
which means that by the law the board of governors they have legal responsibility any
money lost by for the business which includes any financial responsibility. But this does
mean if Petroc were to go into a financial crash, the financial responsibility would go to the
 Unit 1 – Exploring Business

government or local council meaning for the owners they would have to take full
responsibility. Commented [MA2]: P1 – extent of liability explained as
unlimited in principle but how it may be limited in reality
Petroc’s main purpose as a business is to sell but mostly provide multiple services these
include the usually main stream qualifications which are free of charge up to the age of 18.
For example, these include A-levels and vocational courses such as BTECs at numerous
levels. However, it also offers many services like stores such as the food hall and corner
shop (not owned by the actually college itself) as well enrichment activities at an additional
cost. As Petroc is a non-profit organisation it tends to focus on providing products/services
out of goodwill. These are the teaching services for any courses to under 18s which could
include, aid in helping resit maths and English GCSEs or the usually A-levels. Or the
safeguarding service through the safeguarding team which receive regular update training
and are aware of the procedures for passing on concerns within Petroc such as home abuse
or bullying and many more. Petroc as a non-profit organisation also helps to support good
causes or those in need. For example, if a student has become homeless or doesn’t have
enough money to get to college then Petroc will sort out temporary accommodation for
them through the safeguarding team (1) and the guidance centre will provide a bus card for
those who don’t have enough money if their parent’s income is below a certain level. Commented [MA3]: P1 – purpose explained as providing
education, as well as enrichment activities, student support
Businesses operate in different sectors according to the nature of their business and the
product or service they provide. These sectors are known as primary, secondary, tertiary
and quaternary and are the four stages of the journey from sourcing a material to being
ready for the customer. The sector Petroc operates in is a tertiary business structure. This is
the type of structure where selling / distributing finished goods/services to customers for
example, in Petroc’s case is retail and the finished qualifications which they teach etc. The
tertiary sector also sells skills support such as training for staff, for example teaching the
lecturers at Petroc the course material etc. This means for Petroc as a business they do not
have to worry about producing and providing the course materials so they are fit for
sale/teach or worry about gaining the ‘raw materials’ required either. As well as for the
other services they offer as well such as the corner shop. Commented [MA4]: P1 – sector explained as tertiary

The scope of a business means the range covered by that business. There are 3 possible
scopes for a business: Local, National and International. Petroc operates within a local scope
as it only sells or provide products/services in just the local area. For example, there are only
2 Petroc’s; North Devon Campus and the Mid-Devon Campus thus only operating in one
county making it local. This means for Petroc that they are likely to have more effective
communication throughout the two campuses as co-ordinating a fairly low number of staff
in comparison with the other scopes allows quicker communication and clearer
communication (2). The size of Petroc as a business is a large. This is because Petroc has Commented [MA5]: P1 – geographic scope explained as
more than 250 employees which includes all the teachers and other staff from both their local

campuses. This means that Petroc is not considered as a small and medium enterprise. Commented [MA6]: P1 – size explained as large
 Unit 1 – Exploring Business

As previously mentioned earlier, Petroc is a non-profit business which means the reasons
for success in the business is that the Petroc focuses on providing products/services out of
goodwill. There are many types of success such as the number of beneficiaries. For example,
if there are more students at the college then this means that Petroc will likely gain a better
reputation and thus therefore have a better shareholder value. This means that Petroc may
receive more funding/grants from the government in order to improve their facilities which
could lead to an increased employee productivity thus improving the student’s grades which
is Petroc’s reason for success. As there will be better resources such as new computers and
therefore be a better learning environment.
Furthermore, another reason for success at Petroc is the
good transport links surrounding Petroc. For example,
there are 6 bus stops right next to Petroc North Devon
Campus as well as a train station very close by as well
(3). This means that because of the good transport links
and where Petroc is located, this will be able to have a
very large number of students as the college is easy
accessible. For example, People from all North Devon
can get to Petroc very easy through bus or train. As this
allows Petroc to have a large number of students this means that the business will more
likely have good results thus gain a good reputation and could lead to more frequent
donations/retention from the surrounding communities. This will then allow Petroc to
improve their facilities leading to better grades for students. Moreover, another reason for Commented [MA7]: P1 – reason for success explained in
success is the commercial services Petroc offers. For example, because of all the shops terms of good transport links leading to more students,
better likelihood of results etc.
inside the Petroc campus it allows the college to bring in extra revenue which is a type of
success. For instance, the amount of sales, revenue and profit which can be made from
these commercial services. Also, as previously mentioned earlier the college offers a range Commented [MA8]: P1 – reason for success explained in
of support services such as counselling. This will then enable students to get better grades terms of commercial services generating additional revenue

as they will be supported through the stress or counselled about any other problems which
could possibly stop them from achieving. This is one of Petroc’s reasons for success as they
have a desire to support or even passion for the students at their campuses. Moreover, this
will then lead to a better reputation in turn thus allowing a higher number of beneficiaries
(students) as they know they will be supported. The clarity of vision/aims or objectives of Commented [MA9]: P1 – reason for success explained in
Petroc is another way to communicate their purpose clearly with the students and the terms of student support to enable better grades

government to gain more funds/grants thus being another reason for success.
Stakeholders (P2)
A stakeholder is any individual, group or other organisations that have an interest or
concern in a business and its performance. In other words, they are affected by the
business’s activities. Stakeholders are entirely interested in value for money/time in return
from a business otherwise known as a shareholder value. This is the benefits received by
shareholders relative to the number of shares they hold in a business, for example making
profit and ensuring that their investment is worthwhile as shares can both increase and
decrease. Stakeholders tend to have a significant influence on the business, for instance
making the business operate in a particular way so their interests are met. But this can
 Unit 1 – Exploring Business

sometimes create tension between those who run the business and those who have an
interest in it. Stakeholders can also be both internal and external. Internal stakeholders are
those within a business. For example, one internal stakeholder at Petroc is the employees.
Internal - Employee
An employee is someone who works within a business and tends to report to managers. The
role of an employee in Petroc is varied. For instance, depending on the job title of the
employee they have different tasks to complete. The main role for an employee at Petroc is
to teach and make sure that their students get the best grades possible in order for them to
succeed. Employees are interested in good wages, good working condition and ensuring
that their employment rights are being respected. This means that they want the blocks at
Petroc to be regularly refurbished and of high quality to improve the environment they are
working in. For example, C block received a £4 million make over refurbishment with new
computers and improved heating (4). This shows how stakeholders often influence business
thus making Petroc operate in a particular way so the employees interests are met. For
example, if there is a better learning environment and resources which can lead to good
grades then the employees may receive bonuses because of this thus improving their
wages. Employees can make the business change or have an effect on it by going on strike.
A strike is when employees refuse to work organised by a body of employees as a form of
protest, typically in an attempt to gain a concession or concessions from their employer.
This means that Petroc cannot operate or open without a sufficient number of employees.
This has a very large negative effect on Petroc as like –previously stated the college will find
themselves having to close thus cancelling lessons therefore comprising the exam results
and grades for the students. This then means that the business must now operate in a
particular way so that the employee’s wants are met in order for the college to become
operational again. For instance, Petroc staff went on strike for the second time in three
months as part of an ongoing pay dispute in February 2016(5). This then likely leads to the
employees interests being met. As by going on strike they would aim to make their
employers listen to what they want and thus making a change and getting their interests
met. Furthermore, employers going on strike would damage the reputation of the college as
which likely means that employee productivity would decrease. As Petroc being a large Commented [MA10]: P2 – employees: influence
business with over 1000 employees, it means that any lectures with issues would have to explained in terms of strike action leading to closure/lesson
cancellations impacting exam results/grades
address their issues directly to the principle but this would be very difficult to do. Because of
the large numbers of employees in Petroc College it means that the principle of the college
would not be able to listen to everyone’s issues individually. This therefore means, that if
lecturers are part of a union it makes it a lot easier for them to effect the success of the
business so they can address their opinions as part of a group.
Internal – Manager
Managers are another example of internal stakeholders. A manager’s role is to manage the
employees of the college and to make the crucial decisions that could lead to the college’s
success or downfall. They are there to make sure that the employees all work together well
as a team and keep a professional attitude towards their work as well as improving their
effectiveness. Similarly to employees the interests of the manager is that they have good
 Unit 1 – Exploring Business

wages, excellent working conditions as well as their employment rights being respected.
There further interests is that they want from Petroc as a business is for the students to get
good results therefore, to give the college a good reputation in order for them to gain
bonuses and maybe even a promotion. Also, to make the college operate in a particular way
managers can hand out feedback forms or even complete them themselves in order to
change how the college operates in order to improve many features of the college. For
example, change the amount of students who have their breaks at the same time in order to
allow more study space which will have a positive impact on beneficiaries thus improving
their grades. This will then meet the manager’s needs and interests of the college getting a
good reputation for the good grades. This also means that employee productivity/loyalty Commented [MA11]: P2 – managers: influence explained
will no doubt improve thus positively influencing the success of the business. in terms of feedback forms to improve services e.g.
timetabling and break times to ensure study spaces aren’t
too busy
External – Customers
The customers at Petroc are students. These are people who study at a place of higher
education. Customers in my opinion are the most important stakeholders in general as they
are the people who study at Petroc and their role is to bring revenue to the business as well
as customer retention. In other words, keeping the business alive. Customers want to gain
an education and progress to gain a qualification or maybe a degree to allow them to
prosper in the future to have a excellent quality of living. Petroc ensures customers are
happy and uses feedback forms and emails regular surveys. Students may speak to
management, leave criticism or refuse to do something until their problems are met. Their
influence is essential as it affects the businesses ability to provide for the customer and gain
a good reputation. This is important as it could affect the value of donations received if
customers did not attend as well as grants and funds received from the government. Also
due to the fact Petroc is a tertiary business, this means that they provide a service for
customers, so customer loyalty and retention is key. Furthermore, another example of when
customers made Petroc operate in a particular way so their interests are met is when that
the boiler broke down in E block which led to very cold temperatures throughout the block
and food hall. This led to many people complaining which led to temporary heating in the
areas affected or lessons being moved to different blocks. If Petroc didn’t respond to these Commented [MA12]: P2 – students: influence explained
complaints then they would of got a bad reputation which could of spread throughout the in terms of recent E block heating issues

local area causing less beneficiaries thus less funding.

External - Communities
Communities are the individuals who live in the surrounding area. They are an important
external stakeholder as they are the people who are most likely to work for the business.
This means that it is crucial that their interests are met. These include making sure that the
area they live in is a clean environment without pollution and making sure that traffic and
other various issues are not being created by the business’s presence. For example, if the
surrounding residents was unhappy with a new building Petroc had planned that would
disrupt a view then the communities could pretention against it which would force Petroc to
either compensate them or change the plans e.g operating in different way so that the
communities’ interests are met. Furthermore, due to the busyness of the college at certain
times Petroc has put procedures in place to stop bad behaviour. This will benefit the
 Unit 1 – Exploring Business

communities as they have to live near there and may feel unhappy in their home. As
previously mentioned, communities can sign petitions, speak to the management and write
letters to the college to explain their disapproval. The communities would affect the
reputation and number of customers, due to the fact that the community may become
customers, so the college does not want to lose these potential customers. As well as the Commented [MA13]: P2 – communities: influence
damage of their reputation which would once again lead to less grants therefore less explained in terms of petitions, contact with college,
reputation if disruption is caused, loss of potential
resources and new facilities therefore affecting the students chance of succeeding with the customers within communities
best grades possible. Also due to the fact that it is scrutinised by government because
Petroc is not-for-profit means that the college needs to remain positive or else it may affect
the customer base and once again the overall funding. However, as Petroc is local this
means that it is easier to influence the success of Petroc due to the fact that if the college
can win over the communities then it means that Petroc is guaranteed a large amount of
customers.
External - Suppliers
Suppliers are another type of external stakeholders that are crucial to a business’s success.
They are any individual or a business that provides goods, raw materials or services to an
organisation usually on a regular basis, which is their role in the Petroc. For example, they
supply Petroc with goods such as food, desks, paper and a range of other products. And are
interested in the success of Petroc, hoping that it does well so that they can continue
trading and be ordered from regularly. Another interest is payment as they wish to be paid
as soon as possible and do not want to have a huge credit inbalance. Suppliers ensure that
their interests are met by creating contracts with Petroc such as sending emails and letters
to keep up to date with Petroc but they can also refuse to serve them if they feel they are
not being listened to. This can influence success as they can stop essential products from
reaching PETROC, leading to a closure/ reduced service of Petroc. This will then affect
customer satisfaction, grants and reputation as student’s grades are almost certain to drop. Commented [MA14]: P2 – suppliers: influence explained
Also due to the fact that the college is a tertiary business it makes it easier for suppliers to in terms of stopping supplies (e.g. furniture, stationery,
food) leading to reduced service
influence Petroc as they cannot make their own products so Petroc is soley reliant on their
suppliers. Furthermore, as Petroc is of local scope this means that they need to have a good
relationship with their suppliers as there may not be as many suppliers to source from if it
was a national business. This makes it easier for suppliers to influence the success of the
business as they can ‘call the shots more’.
External - Government
Government departments run and fund colleges as they are run by the Department of
Education. They make sure that the education is acceptable and that it is being run
smoothly and efficiently. Furthermore, they need to feel that the money been given to the
college is worthwhile as they ensure that the children are educated properly, helping to
create the next generation of intellects and fulfil future jobs. They want positive A-level
results as they need to ensure that the students are being taught of a high standard, and
therefore have an interest. They have a significant influence on Petroc, by being able to stop
funding, order reviews on the college, stop the college from conducting its business and
holding disciplinary reviews. These influences will affect the success of the college as it will
 Unit 1 – Exploring Business

affect the grants given to Petroc as well as the reputation and support needed to run the
college. This then again will lead to less resources and new facilities which could offer new Commented [MA15]: P2 – Government: influence
courses. This then means that Petroc could possibly lose a competitive advantage over other explained in terms of Gov. being able to stop funding, order
reviews, stop college from operating
colleges thus affecting the success of the college. Also due to the fact that it is a government
run business means that the government has ultimate responsibility therefore makes it far
easier for the government to influence the success of Petroc.

Relationship and communication with stakeholders (M1)

Employees
One way that Petroc communicates with their employees is through emails. For example, if
a lesson is to be moved to a different room or an event is being held the lectures at Petroc
will receive an email for details of room changes or where and when the event is being held.
They always get the ‘in the know’ which is a bulletin email for employees throughout the
college which is a news roundup for activities/future job vaccines every week (10). This
leads to success as it has tailored promotions meant for the staff which therefore is much
more convenient for the employees. It also allows the employees to respond with any
queries they may have with the information in the email for example, an event so they
know precisely what time to arrive thus leading to a more successful event. Another way
that Petroc communicates with their employees is face to face interaction. For example, this
is when the employees have regular meetings with their supervisors/managers to find out
lesson plans and how the overall department is doing. To give an example, to be told which
students are under performing or over performing and what is the best thing to do with
these students such as, move courses. This leads to success as this then means the lectuer
knows which students are struggling thus to give extra help to and know which students are
more capable of the higher grades thus encouraging them to aim higher. This then results in
much better grades therefore a better reputation for Petroc resulting in more funding.
Managers
One way that Petroc communicates with their managers is through telephone. For example,
if a department is failing to meet its targets then the ‘higher bosses’ will ring up the
manager responsible for this to find out why if it’s somewhat important. During these phone
calls the manager will receive information on how these problems can be overcome and
what will happen if these targets fail to be met. This then allows the manager to easily
respond to questions quickly and convey and queries they may have. This information leads
to success as this allows the manager to improve its department to meet these targets
which will result in better grades therefore a better reputation and thus more beneficiaries
e.g students in that particular department. Another way that Petroc communicates with
their managers is through meetings. The information that tends to be conveyed in this is
targets and goals the department needs to achieve which the manager is responsible for
ensuring. The meetings may also discuss possible renovations to the department such as
new resources which allows the manager to respond with any question or queries.
Furthermore, meetings also tend to allow managers to showcase the financial information
 Unit 1 – Exploring Business

of their department which could encourage their bosses to put some of the budget into
their department perhaps to improve the resources. This then links to success as it gives the
students a better chance of achieving top grades thus giving the department a better
reputation thus encouraging more donations. For example, this can be shown by the
renovation of the C block at Petroc which aided mainly the business department/computer
technology department at Petroc (4).
Customers
One method of communication Petroc uses to communicate to their students is text. For
example, these may include any sudden room changes for their upcoming lessons (11). This
links to success as it allows the students not to miss their lesson and stay up to date on the
course material which then allows them to have a better chance at obtaining the best
grades possible and succeeding. This then reflects well on Petroc as then they will have
better statistics to show off to gain more funding from the government which can be used
to offer more opportunities to the students. Another way Petroc communicates with its
students is through email. For example, this may include information such as regarding the
student’s attendance or tailored promotions such as any upcoming relevant events. For
example, the tutors at Petroc regularly use emails to contact their students about any
lessons missed. This then encourages the student to attend lessons as they know they are
being monitored which leads to them achieving better grades thus improving the results of
the college which leads to the overall success of Petroc because they will receive more
funding from the government.
Suppliers
One method of communication Petroc uses to communicate with its suppliers is through
emails. For example, this allows Petroc to easily be able to order their stock in for their
stores or stationary for classes, as emails allow for almost an instant response and delivery
which means that Petroc and its suppliers can communicate very efficiently. The
information conveyed within these emails will likely be delivery dates of orders and any
delays. As email is almost instantaneous this allows the college to respond to its suppliers
with any questions or queries. This then leads to the success of Petroc as it means that the
delivery from the suppliers is going to be more accurate and the time it will arrive will be
more accurate. This then allows Petroc to maximise profit in its stores and have enough
stationary to fund the college as a whole. Another method Petroc uses to communicate with
its suppliers is through telephone. This isn’t used very often as it’s not the most effective
way of placing orders but it is used if there is an urgent problem needing to be addressed
such as ordering too much of a particular stock, or even placing an emergency order if the
college is too low on paper or ink. This leads to success as it means the college has all the
resources required for there students to succeed resulting in better grades therefore a
better reputation for Petroc.
Communities
One method of communication that Petroc uses to communicate with the surrounding
communities is letters. These may include tailored promotions to the communities with
 Unit 1 – Exploring Business

information for things such as events being hosted at the college such as first aid courses or
lunch events such as discounted meals at the Taw Restaurant. Furthermore, they may
advertise free haircuts or offers to encourage people from the surrounding communities to
get involved with Petroc which also helps students on their courses. This leads to success as
this significantly aids the students with their work such as practicing on real people’s hair for
hair and beauty courses. This then impacts the students overall grade as they are more
likely to get a much higher grade because of the practice they have had. This then leads for
a better reputation for Petroc as they will have improved statistics thus leading to more
government funding. For example, Petroc may receive more bursaries to give out to
students including students over 19 who wish to study further and need financial aid such as
the advanced learner loan (12). Another method of communication that is used to
communicate with the surrounding communities is through posters. For example, staff at
Petroc put many posters up in the surrounding areas to advertise events taking place at the
college or fund-raising events. These may also include performance such as from the
performing arts departments. To give an example my friend at Petroc studies performing
arts and they advertise their performance using posters and charge £7.50 for views (11).
This money raised is then used to help fund the purchase of new equipment such as stage
lights, set pieces etc. This links to success as because of the improved resources it will create
a better atmosphere for the students thus leading to them to try harder resulting in better
grades and a better reputation for the college. This also ensure that Petroc has enough
customers to meet their student’s needs.
Government
One method of communication that Petroc uses to communicate with the government is
through emails. For example, the information communicated through these emails are very
formal as its to a government official. The information includes monthly statistics of how
well the college is performing and the funding that the college will receive. This improves
the success of the college as it allows Petroc to allocate the funding to certain departments
efficiently as they will know how much they are receiving. This allows each part of the
department to receive improvements when required such as in 2013 (6) a large amount of
the funding was dedicated to the refurbishment of C block as it was in desperate need of a
refitting where as in recent years a large amount of the funding was dedicated to refitting
the front half of the college such as a costa café and moving the reception/library. This then
gives off a much better warming atmosphere and a better learning environment which thus
leads to students wanting to study harder and get the best grades possible. This then
encourages more investment in the future leading to a greater success of the college.
Another method of communication is meetings. This is when the principal or other
employees of high status at Petroc meet up with government officials such as governors in
the local area to once again discuss the performance of the college or if there is an urgent
matter to address for example, Petroc significantly underperforming. This leads to success
as then Petroc will know how to the issues of the college can be overcome such as the
government may offer more funding if there is a serious issue with a particular part of the
college. This then leads to up to date resources which will then attract more students
therefore increasing the overall success of Petroc.
 Unit 1 – Exploring Business

Moreover, as mentioned previously I have discussed 6 main methods of communication:

meetings, emails, letters, posters, telephone and text. The order below is the importance of
high to low and the effectiveness of how good it is at building good relations with
stakeholders thus making the business successful.
Email
It can be safely concluded that email is the most effective form of communication since it
has been mentioned four times. For example, formal emails are used when communication
is required with suppliers, employees, customers and the government. This is the most
effective method and the best as it offers instantaneous communication which multiple
people can receive at any given one time. It also allows a lot of detailed information to be
sent and clearly communicated as well as saved and documented unlike if it was in a
meeting. This then helps created a good relationship with the stakeholders as there is little
risk of miscommunication. Commented [MA16]: M1 – assesses email as most
important communication method in terms of mass
Meetings distribution to range of stakeholders, volume of information
conveyed, little risk of miscommunication to create good
Meetings is the second-best method form of communication as it offers face to face relationship

interactions. This is more a interactive and personal method of communication than

emails/texts as it helps to build and strengthen relationships between stakeholders as the
information is communicated directly to them which gives it a sense of urgency. I have
placed meetings as second most important as it is no where near as easy as simply writing
and sending an email. For instance, meetings require people to stop their work and possibly
have to travel to a location out of their way which could affect the success of the college as
lessons may need to be covered. However, due to the amount of interaction meetings offer
and the effectiveness it has at building very positive relationships with stakeholders I have
placed it second place as many connections can be made during the meeting therefore
significantly impacting the success of the business. Commented [MA17]: M1 – assesses meetings as second
most important communication method in terms of direct
Text communication but impact in terms of feasibility of
arrangements
Text is the third best method of communication as it also instanteous and very easily for the
person to received. Although I have only mentioned it once above it is a very effective way
at communicating with the stakeholder. For example, mostly everyone has a mobile phone
these days especially students which means it almost 100% guarantee they will receive the
message. This then makes the business more successful as the students are guaranteed to
received information such as a room change meaning the likelihood of them succeeding to
increased. This is why it is the third most effective method of communication. Commented [MA18]: M1 – assesses text as third most
important communication methods in terms of room
Telephone changes, guarantee of receipt

Telephone is the fourth best method of communication as it also allows instantaneous

communication however, I have placed it fourth as telephone calls are only singular (only
happen in one moment in time not over a period of time) and tend to be not very personal
as there is not face to face interaction. Furthermore, they tend to only be used when there
is something urgent/wrong unlike emails which are used to discuss positive and negative
aspects of a situation. This means that using telephone isn’t the best way of establish a
 Unit 1 – Exploring Business

positive relationship with the stakeholders hence why telephone is below the
communication methods above. Commented [MA19]: M1 – assesses telephone as 4th
most important communication method in terms of not
Letters very personal as not face-to-face, usually for urgency so not
effective at positive relationship with stakeholders
Letters is second to last as it is not a very effective way of communication. For example,
although its personal as its addressed to one particular person, it does not offer and
instantaneous response as well as the risk of it being lost or stolen in the post. This means
that it is not an effective way to communicate with stakeholders as it is easy for the letters
to be lost thus causing the relationship to stakeholders to worsen as they may assume that
the college is not bothering with them. Although letters do offer a sense of officiality to
them which is why I have not placed it last. Commented [MA20]: M1 – assesses letters as 5th in
terms of risk of getting lost/stolen, speed of response, not
Posters best in terms of relationship/communication with
stakeholders
The least effective method of communication is posters as they are just placed around the
local area and there is no guarantee that any of the targeted stakeholders will even read
them. This makes posters an extremely ineffective method of building a positive relationship
with the stakeholders as there is no guarantee that the information will be communicated
to the stakeholder. This is why I have placed this communication method last. Commented [MA21]: M1 – assesses posters as 6th in
terms of no guarantee of information being received

Structure and functional areas (P3)

Petrocs company structure is a tall hierarchy. A hierarchy is a structure that outlines the
people within an organisation which shows the bosses and
who reports to who. Furthermore, it identifies the sub-
ordinates such as all the tutors under the tutorial service.
It also shows all the people who are on the same level of
authority/responsibility which are colour coded in the
diagram above. For example, Bill Blythe has the same
responsibility as Kathy McCormack even though they have
2 completely different roles, Kathy being marketing and
Bill being finance and resources. The reason why Petroc’s
company structure is a tall hierarchy is that it has quite a few levels in the structure. For
instance one of the key features of Petroc hierarchy, is that it has 5 levels which makes it
tall. This means that it can make communication in ‘indirect’ relationships difficult, for
example, between the principle and lecturers (manager and operatives). Furthermore, the
span of control is a lot narrower compared to other hierarchy’s. This means that Petroc can
allow for close supervision of their employees to ensure that standards are met to ensure
good results for the students. This then improves the reputation of the college therefore
giving it more funding. Furthermore, having a narrow span of control then allows more
effective communication throughout the college which almost improves employee
effectiveness and productivity. Commented [MA22]: P3 – nature of Petroc’s hierarchy
structure clearly explored in terms of being tall, number of
Moreover, Petroc has several functional areas within the college which are departments levels, narrow span of control, communication
designed to meet specific purposes e.g. finance, marketing etc. For example, the market
 Unit 1 – Exploring Business

department at Petroc role is to carry out market research such as what courses are in high
demand or are most requested. In other words, the marketing department identifies,
anticipates and satisfies customer requirements. This then increases the number of
beneficiaries as Petroc as then they may have a competitive advantage over other
educational facilities as they offer courses that they do not. This then increases the
likelihood of Petroc’s success as this will the increase the shareholder value of the company.
Furthermore, the marketing department also checks that customers (students) are getting
the information they need and matches them with courses or services suited to them. This
links to success as it gives Petroc a better reputation which then increases the customer
loyalty with students coming back to study other courses as they know they will be
supported. Moreover, due to the marketing department convincing people they are getting
the best course and actually get them into buying/study at Petroc in order to maximise
profit this then gives the college more grants/funding thus allowing the college to upgrade
their resources to ensure students have the right facilities to allow them to access the top
results.
Another functional area at Petroc is the finance department. This department keeps records
of all financial activity of the college. For example, they plan and monitor budgets, prepares
accounts and financial statements and produce cashflow forecasts. This allows Petroc to be
successful as finances can be easily managed to ensure that the college doesn’t go into debt
because if that happened it would significantly damage the college’s reputation. This would
then lead to less beneficiaries (students) and therefore leading to a lower shareholder value
and overall less funding by the government. This in turn would affected the colleges ability
to purchase new resources and new facilities therefore students will be less likely to get
good grades thus significantly negatively affecting the success of the college. Furthermore,
the marketing department also analyses competitor’s activities. For example, the finance
department at Petroc analyses Exeter College to compare how financial well Petroc is doing
compared to Exeter. This then allows Petroc to see where they could possibly save money
or where is the best department for them to invest it in.
Furthermore, another functional area in Petroc is human resources. This functional area is
responsible for dealing with all aspects of students as well as employee management and
matters. For example, arranging training for lectures as well as learning support for some
students, keeping staff records of illnesses/training and making policies for staff to follow.
As employees will be aware that their illnesses are being kept tracked of this means they are
less likely to take as many sick days if they weren’t being kept tracked of. This then links to
success as the employee productivity at Petroc will be a lot higher which then increases the
likelihood of students getting better results as their course will not be affected and will run
smoothly. This will then give Petroc a good reputation as they can promote the excellent
grades their students get. For example, 21 of the A-level subjects offered at Petroc achieved
100% pass rates which is an outstanding result which they promote heavily on their website
(7). This then attracts more students and media.
Customer service is another functional area offered at Petroc. This service looks after
customers at all stages of their relationship with the company such as before when the
 Unit 1 – Exploring Business

student is deciding the course, during when the student is doing the course and finally when
the student leaves Petroc assist them with University or whatever else the student decides
to study. This affects the success of Petroc as its is crucial for Petroc’s image. This once again
gives the college a better reputation therefore increasing the number of beneficiaries as
they know they will be supported throughout and after there course. This further leads to a
positive impact on beneficiaries and their eventual careers increasing the likelihood of
success.
Sales is another functional area at Petroc although its technically not selling products for
money but essential for free as it’s a non-profit government department. The sales
functional area works in tangent with the marketing department to persuade students to do
one of there courses and deal with customers directly. For example, Petroc has a select
member of employees that go to schools in the surrounding area offering many
presentations and telling them about the various courses they offer. This improves the
success of the college as it increases the number of beneficiaries which then increases the
value of the college therefore increase the value of the funding’s and grants that Petroc
receives. This then allows Petroc to have more money in order to host more events and visit
more schools in a wider area to then attract more students thus increasing success of
Petroc. Commented [MA23]: P3 – role of various functional
areas explored
Petrocs structure of the business is public as is a service provision which offers value for
money and has to meet government standards. For example, it highlights commitment to
deliver statutory services to the public and even goes above and beyond duty. For example,
many lecturers go beyond the job description and buy some resources themselves with
there own money or offer extra hours and help out of there breaks.
Aims and objectives (P3)
Petroc’s mission statement (objectives) which is a short-term goal is to be ‘An Excellent
College, Inspiring our Communities through learning’ (8). This means that they want
students to be learning in the best environment as possible to achieve the best results.
Furthermore, the ‘Inspiring our communities through learning’ means that it shows Petroc
are willing to help the next generation of youngsters to become successful and learn.
Petroc’s vision statement (aims) which is a long-term goal is ‘Raising Aspirations, Realising
Potential, Delivering Success’ (8). This means that they want the students to go for there
dream job in life and peruse it realising they are fully capable to do so. This will then
hopefully encourage young learners or even learners for all ages to succeed no matter what
because they are all capable in doing so. Commented [MA24]: P3 – corporate vision and mission
statements interpreted to explain meaning of aims &
How do the functional areas of Petroc meet its aims and objectives? (M2) objectives

The market department meets Petroc aim by promoting Petroc as one of the leading
colleges in North Devon to learn and ensuring the local community is aware of the range of
courses they offer. Furthermore, they also host many induction evenings at the college
which includes motivationally presentations to raise the aspirations of the students.
Furthermore, the marketing department promotes good grades to encourage new students
 Unit 1 – Exploring Business

to succeed and follow the trend of gaining high results allowing them to succeed no matter
what. Moreover, the market department meets Petroc’s objective by promoting up to date
advance facilities to ensure it meets the quality of an ‘excellent college’. For example, in
2013 Petroc secured a £10.8 million investment to create a brand new, state-of-the-art
Lifestyle Centre for students on a wide range of hospitality, catering, hairdressing, beauty
and tourism study programmes (9). This new facility and the lifestyle centre reward card (A
discount of £2.50 off any of the facilities can be redeemed with every eight stamps) was
promoted heavily by the marketing department which included in newspaper adds and
flyers. Commented [MA25]: M2 – work of marketing functional
area analysed in terms of promoting positives of college so
The finance department helps Petroc meets its aim by managing the finances very efficiently seen as an ‘excellent college’
to ensure the college doesn’t go into debt. This meets Petroc’s aim as it allows it to be one
of the leading colleges in North Devon delivering success as if it didn’t have sufficient
funding/available money then it would not be capable of being one of the leading colleges
and success for students would be significant less likely. Furthermore, the finance
department offers bursaries for certain students to allow them to purchase the resources
they need to help them achieve thus tying into the aim of delivering success. Moreover, the
finance department helps meet Petroc’s objective by funding many school trips for various
courses which then shows Petroc to be an excellent college and also aspiring communities.
As people are always attract by school trips if its in the local area or abroad thus aspiring
people to study further and gain an education therefore, going to Petroc, which means
more students, more success leading to Petroc being an excellent college. Commented [MA26]: M2 – work of finance functional
area analysed in terms of facilitating organisation of trips to
The human resources department helps Petroc meets its objective by arranging training for be seen as an ‘excellent college’ and ‘raise aspirations’
the lecturers for them to improve their lessons and teaching materials. This means that the
college is more likely to be rated ‘excellent’ by many people including Ofsted thus helping
meet the objectives. Furthermore, human resources also help to make the college excellent
my recruiting new people with high degrees and qualifications by writing job descriptions
and advertising to new staff. Moreover, the department helps Petroc meet its aim by
keeping track of student’s absences. This then encourages students to attend more as they Commented [MA27]: Not entirely true
know their attendance is being monitored and will be brought up if poor. This then raises
the student’s aspirations as they will be attending more realising there potential thus more
likely to succeed at the end of the learning year. Therefore, this is how human resources
help meets Petroc’s aim. Commented [MA28]: M2 – work of HR functional area
analysed in terms of arranging training for lecturers to
Customer service meets the colleges objective by improving the company’s image and improve teaching quality to be seen as an ‘excellent
college’, recruiting proficient staff
asking customers e.g students for their opinions or ideas. For example, Petroc emails regular
surveys to the students for improvements for the college. This helps making the college
better and making it ‘excellent’ which is its objective. Furthermore, it meets the company’s
aim by providing support throughout the working week for all students helping them settle
in, secure work experience placements etc. This shows that the students can ‘realise there
potential’ thus allowing them to succeed which is Petrocs aim.
Sales meets the objective of Petroc by contacting as many new possible customers and
persuade students to go to Petroc so that Petroc can inspire the communities through
learning thus meeting the objectives. On the other hand, sales department also helps Petroc
 Unit 1 – Exploring Business

help achieve their aim by providing advice to the students for the best way to move forward
and what courses are suited for the learner. This helps deliver success which is an objective
of Petroc as well as rasing aspirations as the sales team may try to promote some courses
which the learner thinks is beyond them but may not be. Commented [MA29]: M2 – additional functional areas,
that are found within the actual structure, are not
One functional area that is found within Petroc’s actual structure is student support. analysed
Student support is a place where any student at Petroc can go to if they have any issues. For
example, is a student is struggling with their course they can go to student support and they
can provide information on other courses which may be better suited to the student. This
helps meets Petroc’s aim and objective as it improves the likelihood of the student getting
better grades and succeeding thus ‘delivering success’. Furthermore, if the student has low
income and stuggles to get to college then they can also go to student support which may
provide financial aid to them such as a free bus card to allow the student to get to college
and not let their income get in the way of achieving success.
Another functional area which is found within Petroc is
Evaluation of success (D2)
A strength of Petroc is that it is a tall hierarchy which means that it has a narrow span of
control. This allows employees to be more easily handled as the people higher up in the
hierarchy can easily manage them. This then improves employee productivity which
therefore is a significant postive aspect as it then improves the business success. This is
because the student stakeholder is likely to gain more high-quality teaching by the
employees which leads to more success as the student is likely to get better grades. Commented [MA30]: D1 – narrow span of control in
structure highlighted as positive aspect in terms of
Another strength is that the stakeholder students. For example, they have a very positive management, employee productivity
effect on Petroc as their results determine the reputation of the college. For example,
Petroc ensures they get a good reputation by promoting the excellent A-level results
however, if A-level tutors believe the students aren’t going to succeed then they encourage
them to transfer to another course to improve the stats of passes (10). This has a very
positive outcome for Petroc as this will lead to the number of beneficiaries to increase and
due to the communication Petroc has with its stakeholders e.g customers via websites and
emails this will lead to more students therefore much better grades. Commented [MA31]: D1 – relationship/communication
with students as stakeholder highlighted as positive factor
Another strength is that Petroc is only a local scope. This means that it has very few in terms of transferring to another course if unlikely to pass
current course, so good rates are promoted
competitors as there is only a few competitors in the area. For example, the closest college
to Petroc is Exeter college which is over an hour away (13). This links to success as it means
that almost everyone in the surround area is forced to go Petroc as the travel costs to Exeter
tend to cost too much for most people. This is a very positive outcome for Petroc as it allows
a lot more beneficiaries to go to the college thus receiving more funding from government. Commented [MA32]: D1 – lack of nearby rivals due to
geographic scope highlighted as positive factor in terms of
Another strength is that Petroc uses text to communicate with its students (stakeholders). number of students gained, impact on funding
For example, if there is a room change then a text is used to alert the students of which
room to go to. This has a very positive outcome as this then means that the students will be
able to attend their normal lessons and not fall behind on any work. This then in turn leads
to the students gaining better grades therefore, a better reputation for Petroc college
 Unit 1 – Exploring Business

improving the success overall. For example, I have received numerous texts about room
changes and events and are on track to meet my targets. Commented [MA33]: D1 – relationship/communication
with students as stakeholders highlighted as positive factor
A weakness of Petroc is that their employees can be ill which causes the college to put cover in terms of text alerts of room changes so attendance is not
compromised, impact on learning/grades
in place, which is not always the best. For example, this could serious impact the students
grades as the cover is likely not as experienced as the normal teacher or is not as familiar
with the course. This is very significant to Petroc’s success as this can lead to students
grades to fall due to the cover not being able to teach as of high quality as the normal
teacher or leading to students aspirations to fall which reduces their productivity (11). This
then leads to worse grades thus less funding for Petroc by the government. Therefore, Commented [MA34]: D1 – sickness cover highlighted as
leading to poorer older facilities therefore comprising the success of Petroc. negative aspect in terms of cover teacher not being overly
familiar compared to original, impacting grades
Another disadvantage of Petroc is that its competitor has a higher Ofsted rating. For
example, Exeter college Ofsted rating is outstanding which is the best as well as them
recently receiving the best ever results (14). This could deter students from Petroc,
compromising numbers thus having a significant negative effect on the success of the
college as Petroc is rated below Exeter by Ofsted. This would then mean that Petroc would
have less students therefore, would receive less grants from the government comprising the
success of students there as they wouldn’t be able to use a lot of new resources that could
help boost their grades. Commented [MA35]: D1 – Ofsted rating of Exeter
College highlighted as negative aspect in terms of students
Another area that is a main reason for comprising the success of Petroc is if any of the going there and not Petroc, impacting funding
employees take strike action. This would lead to the service provision given by the
employees at Petroc to be seriously affected and have negative implications on students
success. For example, there may be no lecturers to cover the students lessons which will
lead to many areas of their course not to be covered or put extra strain on the students as
they may need to catch up a lot (11). This then leads to worse grades for the students
therefore worsen Petrocs reputation thus meaning that less students will choose to study
there. This then leads to less success for Petroc. However, it could be argued that due to the
use of the moodle and email, the lecturers could set work for the students so they can catch
up thus giving a positive relationship between Petroc and students increasing success. Commented [MA36]: D1 – strike action by employees
highlighted as negative aspect in terms of disruption to
learning, catch-up required, impact on grades & reputation
Commented [MA37]: D1 – relationship/communication
Bibliography with stakeholders and geographic scope feature are
evidenced within the evaluation, but the stakeholders
(1) https://www.petroc.ac.uk/courses-search/safeguarding-prevent element does not incorporate the
(2) http://www.bbc.co.uk/schools/gcsebitesize/business/production/productioncostsre relationship/communication with other stakeholders, and
additional features of the business are not incorporated
v3.shtml
(3) https://www.stagecoachbus.com/maps?nearbyLocation%5BCategory%5D=address&
nearbyLocation%5BFullText%5D=Use+my+current+location&nearbyLocation%5BGeo
code%5D%5BLatitude%5D=51.072057799999996&nearbyLocation%5BGeocode%5D
%5BLongitude%5D=-
4.0731432&nearbyLocation%5BGeocode%5D%5Bcallback%5D=undefined
(4) http://www.northdevongazette.co.uk/news/photos-and-video-4-million-
refurbishment-unveiled-at-petroc-1-2376790
 Unit 1 – Exploring Business

(5) http://www.northdevongazette.co.uk/news/staff-at-petroc-strike-over-pay-1-
4433616
(6) http://www.northdevongazette.co.uk/news/photos-and-video-4-million-
refurbishment-unveiled-at-petroc-1-2376790
(7) https://www.petroc.ac.uk/content/news/petroc-students-celebrate-another-year-
of-exceptional-a-level-results
(8) https://www.petroc.ac.uk/_assets/downloads/petroc_strategicplan_0703_144_061
7_sr.pdf
(9) https://www.petroc.ac.uk/public-facilities/the-lifestyle-centre
(10) Talking to tutors at Petroc
(11) Personal experience
(12) https://www.petroc.ac.uk/support-help/funding-options
(13) https://www.google.co.uk/search?dcr=0&source=hp&ei=IdvUWvDyG4OYsAf
a_7T4Aw&q=exeter+college+distance&oq=exeter+college+distance&gs_l=psy-
ab.3..0.169.4198.0.4294.20.11.0.7.7.0.537.1560.0j5j1j5-1.7.0....0...1c.1.64.psy-
ab..6.14.1816...0i131i46k1j46i131k1j0i131k1.0.Z_VISZNyFGw
(14) https://www.exe-coll.ac.uk/