Assessment

Assessment

Table of Contents
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
Illustrate distinguish types of companies with their legal structures and purposes................1
Explain the size and scope of distinguish types of organization............................................3
LO 2.................................................................................................................................................5
Firm's functions and their interrelation .................................................................................5
LO 3.................................................................................................................................................6
Discussion of Positive and negative impacts of macro environment on businesses..............6
LO4..................................................................................................................................................8
Internal and external analysis to identify strength and weakness of organisation................8
SWOT analysis and their decision-making...........................................................................9
Strength and weaknesses that are related with external macro factors..................................9
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment is illustrated as combination of internal and external factors that
directly affect a business daily operation activity (ABDULAI and THOMAS, 2019). In order to
cope with competitors prevailing in the open market it is mandatory to determine the business
environment. It helps the management to gain productive results as compare to the rivalry. Firm
study internal and external factors in order to frame strategies to overcome their affect in
business day to day operation activity. By measuring business environment properly the set goals
and objectives of the firm can be attained easily. This report is based on Mr Barclay which is a
philanthropist and well-known businessman . Conrad's is hired by Mr Barclay which is a
consulting firm and guide this personality to expand their venture in UK. This report covers deep
explanation regarding legal structure, size, scope and purposes of public, private and voluntary
sector organization. Interconnection with various organizational functions is examined properly
to work on the loop holes in any division. Macro environment positive and negative aspects is
discussed in order to frame strong tactics to compete with the negative impacts. SWOT analysis
is conducted to better understand the threats and opportunities prevailing in the market.
LO 1
Illustrate distinguish types of companies with their legal structures and purposes.
In the global market there are numerous types of business operating and are contributing
a huge ratio in uplifting national economy to a large extent. Public, private and voluntary firm
work day and night either to maximize huge profit or to uplift the living standard of the society
people. Every organization has distinguish purposes and legal structure as it totally depends upon
the type of business operating the global market. The purposes and legal structure of public,
private and voluntary organisation are stated as under:
Public sector firm: In the global market this type of organisation are owned by
government on behalf of the general public (Agbim and Eluka, 2018). Public sector firm is
financed by government as they focus on the welfare of the community and the general public.
This type of company does not work for maximizing revenue. It provides range of governmental
services, public transportation, health care, military services, public education etc. Department of
Work and Pensions (DWP) which is a British government department is selected in public
sector.
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Purpose: Department of Work and Pensions (DWP) main purpose is to render pension,
child maintenance policy and welfare in United Kingdom.
Legal structure:
Central government: Department of Work and Pensions is centrally owned so it has
central government as legal structure. In order to run the business of DWP monetary value is
collected through income tax which is paid the public of the nation.
Local government: In this case finance is assembled through council and community
charges by the local government.
State government: Those monetary value which is not gathered by central government
but are collected from state taxes.
Private sector firm: This type of organization are completely owned and managed by individual
person and there is no interference of government in their business activities. All this risk and
profit is tackled by the owner of the company. Private sector firm's main intension is to earn
huge profit. Additionally, they keep their finance private and are independent in nature. The
selected private sector organization is Aviva which is located in London, United Kingdom. This
is a British multinational insurance organisation.
Purpose: The main purpose of Aviva is to render life insurance facilities to their loyal
customers so as to generate huge profit as compare to the rivalry. Management try to bind
customers over the years by providing them unique facilities in life insurance.
Legal structure:
Sole proprietorship: Sole traders run their business smoothly as they are operating it on
a small scale. Along with this there is no governmental interference in their day to day working.
This type of businesses is operated and managed by individual people. Also, the are accountable
for the business activities such as, taxi drivers, plumbers, grocery owners and so on (Ahmad,
2018).
Partnership: Here, a contract or agreement is signed by mutual understanding among
both the parties. All the terms and conditions are mentioned along with share of profit and loss in
order to avoid conflict and mis-understanding in the coming years.
Limited company: In this particular case the liabilities of the members of the enterprise
are constricted to the extent to which members of the business have taken the guarantee to bear
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profits and loss. On the other hand the shares of Aviva can be freely traded in the public as it a
public limited company in the open market place.
Voluntary sector firm: This type of firm work for the welfare of the society people and their
main purpose is to uplift the living standards of the people. They are not operating firm for
maximizing revenue but instead for the development and growth of the society or community.
They are offering those services and products which are capable in resolving the issues of the
society to a large extent. Cancer Research is chosen for Voluntary sector organization.
Purpose: Cancer Research main purpose is to spread awareness among the citizen of the
nation regarding Cancer and it's symptoms. It is done in order to cut down the death rates of the
people occurred by Cancer.
Legal structure:
Trust: This type of firm running on the trust of it's members in the open market place.
They are not illegally registered any where but work for the welfare of the people in the nation.
Cancer Research UK is a trust who work for the uplift of the people so it does not allow any
individual or group to enter into the trust for their own or self benefits (Ahmed and Latif, 2018).
Unincorporated association: To meet the purpose of clubs and society group of people
come together. However, this type of firm are formulated by group of individuals in order to
work for the welfare of the citizen of the nation.
Explain the size and scope of distinguish types of organization
In the global market several type of organization are operating on daily basis. They all are
having different size and scope depending upon the type of business they are operating in the
open market place. The size, scope and structure of different organization are elaborated beneath:
Aviva plc:
Background: The chairman of Aviva Plc is Sir Adrian Montague. This leading British
insurance company is suited in London, United Kingdom. It came into existence in the year
2000. Organization is serving various services such as, pensions, general insurance and life
insurance. Across sixteen countries there are thirty three million customers. It is the largest
general insurer and pension provider firm across the globe.
Vision: The vision statement of Aviva Plc is to earn the trust, believe and faith of the
client. It can be possible by providing them unique services related to life insurance which help
them to secure their future.
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Mission: Aviva's mission statement in the global market is to render sufficient amount of
revenue and sustainable growing returns to all it's stakeholders.
Size: The size of the organization is very large. In 16 countries there are 33 million
customers. And 30,012 potential staff members are working to satisfy the needs and preferences
of the customers regarding, pension, life insurance and general insurance.
Scope: The scope for Aviva organization is large as people are looking forward to secure
their life in the future. They are more keen interested in investing the funds in insurance
companies (Al Mamun and Ibrahim, 2019).
Product and services: Aviva provides general insurance, pension and life insurance to
their customers along with it also firm render services related to home, car and health insurance.
By this loyal customers can be build for longer time duration which is a positive mark for the
company.
In the intense competitive market place the size and scope of the Aviva Plc state that to
which extent the firm works for the customers. Along, with this the type of product and services
offered to the end users are determined easily. The legal structure depicts the liability of the
shareholders in the organization while size of the firm indicates capability of securing the lives
of the customers. As it is classified under public limited enterprise the monetary amount are
accumulated from general public.
Department of Work and Pensions (DWP):
Background: Department of Work and Pensions came into existence in the year 2001 on
8th June. This successful business is located in Caxton House, London. 84,718 employees are
working worldwide and are full-filling desire needs of the customers.
Vision: Department of Work and Pensions vision statement is to secure the lives of large
number of people by guiding them accordingly.
Mission: The mission statement of Department of Work and Pensions is to render
welfare services to the general public so as to assure financial independence by raising savings. .
Size: 84,718 employees are working worldwide and try to uplift their living standards as
well as resolve their quarrier's on priority level.
Scope: In the global market it has been seen that the inflation rate is growing day by day
due to people are insure regarding their future. In this case the scope of Department of Work and
Pensions is more because they are providing safe future through their service to the customers.
4

Product and services: General insurance service is provided to the customers in order to
secure their future in the up-coming years (Chepkwei and Koima, 2018).
Business size and scope helps to estimate the number of people can be involved in the
welfare, well-being and insurance policies. By this accordingly the services are designed to meet
the preferences of the customers. Central government provide financial support to this
organization in the open market place.
Cancer Research UK
Background: In the year 2002 it came into existence with the aim of spreading
awareness regarding Cancer. The team members are working to reduce the death ratio occurring
due to Cancer. Research and Development work is conducted in order to come up with
innovative medical techniques or with drugs by which Cancer patient can be cured easily.
Vision: The vision statement of Cancer Research is to spread awareness among the
people regarding the root cause of Cancer.
Mission: The mission statement is to identify the symptoms of Cancer in the first stage in
order to cure is faster.
Size: The size of this firm is too large it is stated as world's largest Cancer Research
Charity. It work for curing the cancer patient across the globe.
Scope: The consumption of tobacco and smoking among the public is more so the death
rate due to Cancer is raising day by day. The scope of this firm is high because to overcome from
this diseases people need to be ware regarding Cancer.
Product and services: Chemotherapy, and anti-cancer medicines are offered to the
customers in order to cure them from cancer . By taking the dose of chemotherapy death rate
caused by cancer can be reduced.
The size of the firm is large which stares that huge cancer patient can be cured easily.
Trustee and other charities fund Cancer Research UK to conduct their research activities in order
to come up with innovative medicine to cure the cancer patient (Faiz Masnan and Saad, 2018).
LO 2
Firm's functions and their interrelation
The interrelation of various functional departments in context of Aviva plc are stated as :
5

Marketing and sales department: Sales department totally depends on marketing departments
because more the effective marketing is done for the product or services more will be the sales
ratio. It is very essential to build healthy relations among the departments by this set objectives
can be attained easily. On the other hand Marketing completely depends on sales as upliftment
in sales directly aid in assembling huge revenue that assist marketing division to have a sufficient
budget for market research. The advantages of building good relation with each other is that
firm will be able to meet the emerging needs of the customers on priority level. As well as
positive image is build regarding the service in the minds of the client. By not building healthy
relation with one other the market value of the services gradually decreases in the global market.
And slowly business comes to an end (Griffiths, 2018).
HR and finance department: HR activities can be performed when sufficient funds is allotted
from finance department. Transparent relation among both the division is necessary because
right candidate can be hired when HR activity is conducted properly. However, finance
department manages funds in effective manner so that salaries and other rewards can be given to
the HR of the company and accordingly they will distribute to the respective employee. The
advantages of having mutual understanding among the division aid them to meet their set
objectives easily in the set deadline. Along, with this employee's turn out ratio can be reduced
easily. The disadvantages faced by both the department by creating unhealthy relation is that
more conflict is raised among the team mates. Additionally, overall productivity and profitability
ratio reduces to a large extent.
LO 3
Discussion of Positive and negative impacts of macro environment on businesses
The macro environment is explained as those factors that are controlled by the business
but affect their functioning (Gwizdak and Kartalligil, 2019). To measure the macro
environmental factors PESTLE is conducted as it aid in identifying those factors along with their
impacts which influence the business to a large extent. The points of Pestle analysis are
showcased as under:
Political factors: Some of the examples of political factors are, trade tariffs, labour laws, tax
policy etc. all this affect the business directly. It need to examined in order to expand the
business smoothly.
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 Positive: Aviva plc need to make modifications in it's policies regarding insurance as UK
has stable political conditions. This aid in saving costs to a large extent.
 Negative: The disposable income of the people are reducing due to raising taxes rates.
Due to which customers will spend less amount in pension schemes.
Economic factors: Tax rates, interest rates, wages etc. are covered under economic factor.
Economic condition in a nation plays a vital role in the growth and development of the business. Positive: Aviva Plc has great opportunity in UK as the buying power of that nation are
more. They are likely to invest more in schemes of pension and insurance.
 Negative: In order to hire potential workers firm need to pay huge remuneration to the
employees because the unemployment rate of the nation is very low. It leads in
upliftment of firm's overall expenses.
Social factors: Customs, traditions, believes etc. are some of the examples of social factors. All
this need to be determined as they directly or indirectly affect the businesses in an economy to a
large extent.
 Positive: Aviva plc is able to recruit skilled and potential employees in their organization
because the education level of United Kingdom is high. Through this set standards of the
organization are accomplished easily in the intense competitive world (Leo, 2017).
 Negative: People are more keen interested in investing time in leisure activity. Due to
which less monetary value is left with the people in order to spend on schemes like,
insurance and pension. All this aspects has cut down the funds for firm to render
insurance policies to the client.
Technological factors: It is directly associated with advancement in technology used in the
nation. In mainly focus on research and development activities conducted so that more
innovative techniques and tools can be invented in order to attain productive results. Positive: In order to provide proper guidance regarding pension and insurance scheme
Aviva Plc can adopts modern tools and techniques because UK is technologically
advanced nation.
 Negative: Modern tools and techniques can be operated smoothly when there is highly
skilled employees. On the other hand it is too costly to implement advance technology.
7

Legal factors: Wage act, employment act, consumer law and so on are some of the example of
legal factors. According to the business type legal laws should be adopted in order to assure
customers that goods and services offered to them are not illegal. Positive: Through Employment law and data protection act helps helps organization to
build trust and faith in the eyes of the customers. This is because UK has strong
legislation regarding this act. It mould people to invest in Aviva insurance and Pension
scheme (Monga, 2017).
 Negative: The execution policies that are within the pursuit of legal framework raises the
overall cost of the firm. It directly makes the schemes of the company expensive in
nature.
Environmental factors: Change in climate, pollution and so on are greatly influencing functions
of the business in the global market. Organization need to design those product and policies
which supports environment. Positive: CSR policies is adopted by Aviva Plc because UK is strictly following
environmental policies. By this positive image can be build in the eyes of the customers
and customer base can be raised for investment in the organization in order to enjoy
benefits of insurance and pension.
 Negative: Due to the raising global warming the government is changing the policies
accordingly. Firm need to adopt to the policies strictly due to which the cost of the
organization are raising at a tremendous scale.
LO4
Internal and external analysis to identify strength and weakness of organisation
SWOT refers to a study that is undertaken by the organisation for analysing and
understanding the internal strength and weakness. Along with this it also helps an organisation to
identify the opportunities and threats of organisation (Onputtha and Rojanapanich, 2018). In the
context of Aviva and department of work and pension SWOT analysis is mention as follow:
Strength Weaknesses
 Marketing strategy of the Aviva life
insurance is too effective. It determines
that marketing team and sales force of
 Aggressive advertisement is the major
weaknesses of organisation. Like after-
death experience is an advertisement
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organisation is too strong.
 Social scheme that are offered by
Aviva are able to satisfy the needs of
all individuals. Such as child plans,
life-insurance etc.
method of organisation.
 Formalities and legal necessity to
execute the policy is a long term
process. So it offer other competitors to
gain competitive advantage (Popa and
Soto-Acosta, 2015).
Opportunities Threats
 Increase in the income of the middle
class people provide various
opportunities to Aviva. Like in
developing countries individuals and
professional are more concerned
towards insurance policy (Vember,
2018).
 The market for the service industry is
increasing with rapid speed. So the
market for Aviva is present at global
level.
 Majority of the organisation in a service
industry are performing their work at a
global level. So the competition among
industry is too intense.
 Economic at the global level is
reducing with rapid speed. This refers
that due to service industry are loosing
their market size.
SWOT analysis of Work and Pension department
Strength Weaknesses
 The major strength of organisation is
the flexible government policy. It
determines that it leads management to
perform their work effectively.
 Another strength of department is that
its functions are well organised and in
sequence. So it works as a major
strength for organisation.
 Individuals has to follow long term
process due to which it is complex for
individuals for completing their work in
short period.
 Management and its employee's are not
too effective due to which the decisions
are not appropriate for organisation.
Opportunities Threats
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 With the effective policies it is easy for
management to attract more number of
individuals to serve their services in
public industry (Qureshi and Singh,
2018).
 The major threat for organisation is that
private companies are providing better
scheme as compare to government such
as investment plan. So in upcoming
future it work as a major threat for
organisation.
SWOT analysis and their decision-making
In an organisation there are various task are performed by management so it is essential
for them to make effective decisions that leads organisation to gain top position in market. For
enhancing the productivity of Aviva and other companies it is mandatory to understand their
strengths and weaknesses so all the decisions are taken in appropriate manner. Like with the
effective marketing strategy it is easy for organisation to gain long term benefits by performing
their work and gaining long term benefits in managing their work by organised manner.
Strength and weaknesses that are related with external macro factors
Macro-environment impacts on all types of organisational functions and operations that
are performed by management. So by implementing the PEST it is easy for management to
perform their work as per external factors as well as to relate them according to strength and
weakness of organisation.
Political factor- It is the responsibility of government to secure the interest of local organisation
by making the flexible policy that leads local companies to enhance their market size as well as
to boost the GDP of country.
 Strength- Major strength of Aviva is the policies such as marketing strategy. It results
this is easy for management to perform major role in country economy.
 Weakness- Corruption, autocratic leader, interference of government policy are the
major points by which organisation performance is impacted (Rahmani and Asgari,
2018).
Economical factor- Macro-environmental also undertakes economic aspects it consider inflation
rate, economic cycle, foreign exchange rate etc. Moreover, it impact on the performance of
10

Aviva in an aggregate manner. Operations that are related with external macro environment
factors are mention as below:
 Positive- In the present scenario, government is offering better policies too the
organisation by performing their work in effective manner. This determines that with
better policies it is easy for management to gain long term benefits.
 Negative- Due to the economic crisis there are several issue are faced by management
such as interest rate, inflation rate etc. increases the size of business.
Social factor- All the task which are performed by management will done in the society. This
refers that it is mandatory for organisation to perform their work as per the society culture and
environment. Along with this the difference between the shared values, beliefs etc. impact on
organisational performance as if organisational products impacts on society needs then it is
complex for organisation to sale their products in society.
 Positive- Demographics and geographical factors are followed by organisation that
leads management to enhance their work performance as to satisfies the needs of
individual with in a effective manner (Shamsuzzoha and Helo, 2017).
 Negative- It is complex for the organisation to manage the needs of customers and to
understand the attitude of individuals. It results this is complex for Aviva to complete
the overall work as per society.
Technological factor- Technology is one of the most important factor for organisation as it
enhances the work performance as well as reduce the time period of their functions. This also
refers that it is mandatory for management to complete their work by implementing the
technology aspect.
 Positive- With the technological development it is easy for management to perform their
work better than its competitors. Along with this it also helps organisation to offer better
products.
 Negative- Weakness which is faced by management is due to the changes in
technological aspects on constant basis (Tran-Nam, 2015).
CONCLUSION
From the above it can be concluded that it is very essential to conduct SWOT and
PESTEL analysis . By doing so management is able to frame strong tactics in order to overcome
the issues occurred by them. The interconnection among the firm's departments is studied in
11

order to make improvements if any kind of gap is prevailing between them. By this productive
results can be attained easily. The scope, size, legal structure and purposes of the enterprise is
deeply studied in order to grow the business accordingly. Additionally, it helps in full-filling the
emerging needs of the customers.
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REFERENCES
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