Business Environment Analysis and Organizational Structure

The provided document is an assignment that delves into the business environment's influence on organizations. It discusses various aspects of the business environment, including PESTLE analysis, SWOT analysis, and how entrepreneurs perceive it in the Czech Republic. Additionally, it examines the relationship between the business environment and business strategy types in Peruvian companies. The document also touches upon work-life balance, e-commerce potential for SMEs, and the nature and geography of marketing textbooks. Furthermore, it provides illustrations of divisional structure, functional structure, PESTLE analysis, and SWOT analysis. The assignment aims to understand how organizations can thrive in a competitive business environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Presenting different types, size and scope of organization.........................................................1
TASK 2............................................................................................................................................4
Presenting interrelationship between various functions and how they link to structure of JP
Morgan Finance and Investment.................................................................................................4
TASK 3............................................................................................................................................7
Presenting impact of macro environment on JP Morgan Finance..............................................7
TASK 4..........................................................................................................................................10
Internal and external analysis for specific organization to assess strength and weaknesses.....10
How strength and weaknesses interrelate with external macro factors.....................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment refers to all external as well as internal factors that affect
company's overall function that includes employees, customers, management etc. Business is a
simplest process that is performed individually or by a group in order to earn money with the
help of selling products or services into market. The aim of this report is to understand the
meaning of business and business environment. It deals with JP Morgan Finance and Investment
which is one of the leading company in UK and operated more than 4000 offices at global level.
The company's philosophy is to provide best services to their customers at less affordable rates.
Report describes various types of organization such as public, private and voluntary sector.
Further, it describes JP Morgan's organizational structure and how various functions interrelate
with each other. By using PESTLE and SWOT analysis, report can easily determine macro as
well as micro factors that affect company's external and internal environment. It also explains the
interrelationship with all factors that have impact upon business decision-making.
TASK 1
Presenting different types, size and scope of organization
Sole Trader: It is that legal setup where business is controlled by single person and only
they are liable for all the aspects of a business. This are usually run in small sectors where the
owner has unlimited liability and due to their size, it is restricted to local boundaries. It requires
small amount of initial investment and quite easy to establish (Ostos, Hinderer and Bravo, 2017).
Scope: the scope of sole trader business is quite limited in this modern world.
Size: The size of sole trader is small as it operating at small scale.
Legal Structure: It has quite easy and short form of legal structure and even inexpensive
to set up.
Purpose: Main objective is to earn profit and expand its business.
Advantages:
 Whole profit belongs to owner only.
 Owner can change legal structure if circumstances changes.
 Have maximum privacy.
Disadvantages:
 Owner have unlimited liabilities for debts
 Find difficult to raise finance.
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Example: Kurt Geiger & ndash is a sole trader company which operate footwear business in UK
and run in private sector.
Partnership: It is that type of business where two or more person work together with a
motive of good revenue as well as profit and help to run a business in successful way. All
decisions are taken by mutual agreement (Botha, Kourie and Snyman, 2014).
Scope: the scope of partnership business is growing.
Size: Partnership have average size in UK.
Legal Structure: It has long legal structure and the entity is not separate from their
operators.
Purpose: Purpose is to generate more revenue.
Advantages:
 Availability of capital is more.
 Aid in tax relaxation because business is operated by two partners.
Disadvantages:
 dis- agreement between partners related to their decision-making.
 Factors such as liability of partners for debts of business in unlimited.
Example: Microsoft Company which is run by Bill Gates and Paul Ellen in Private sector.
Private companies: Private sector companies are operated privately whose liability is
limited by shares. Their aim is to generate more profit and this limited companies are
incorporated as a legal person. Where all decisions are taken individually (Alles and et.al., 2018).
Scope: the scope of private companies is so large in this growing world.
Size: Private companies occupy big proportion of market in UK.
Purpose: Earn profit and maximize their business by serving best quality of products or
services.
Advantages:
 The management is quite flexible.
 Have limited liabilities so that each member of a company enjoys facilities.
Disadvantages:
 Members of a company cannot exceed up to 50.
 Can issue only one share at the time of incorporation.
Example: JP Morgan Finance and Investment in UK.
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Public Limited Companies: The main aim of this companies is to serve products or
services according to people and not provide services in order to earn profit. The cost of PLC is
not always affordable to smaller business. They have limited liabilities and have separate legal
identity.
Scope: the scope of private companies are decline as private companies are raise.
Size: The size of public limited company is not as large as private companies.
Purpose: Objective is to serve people and fulfil their need by making products/services
as per their demand.
Advantages:
 Have to follow many rules and regulations as per prescribed by government.
 Need at least 2 directors in a company to operate.
Disadvantages:
 Have long and lengthy process in order to established firm.
 Entirely controlled by government.
Example: British Petroleum, Rolls-Royce Holding PLC etc.
Voluntary sector: It is a community sector where all the social activities are under taken
by non- profit organization. This is also called third sector and consist those firms who work for
the benefit and well-being of society without a purpose of earning, that is why they consider as a
separate entity (Ostos, Hinderer and Bravo, 2017).
Scope: The growth of voluntary sector is increases year by year in order to occupy good
market share.
Size: As the sector is growing so they are small in size in UK
Purpose: The main aim of this sector is that they work for the welfare of society.
Advantages:
 Work for the welfare of societies in order to provide them safe and secure environment.
Disadvantage:
 Issue faced by Voluntary sector is that volunteers are not so trained and as a result they
are not faced problems.
Example: Welcome Trust and Cancer Research in UK are one the leading industry in Voluntary
sector.
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TASK 2
Presenting interrelationship between various functions and how they link to structure of JP
Morgan Finance and Investment
Organizational structure of a company defines how activities are done in order to achieve
its objectives and goals with competitive advantages. It also determines how a supply chain of
command runs at different level of a company and this plays a crucial role in JP Morgan Finance
and Investment. There are various types of organisational structure which a company must
follow some of them are as mentioned below:
Divisional Structure: This type of structure is basically followed by those companies
who have various branches in all over world (Tredinnick, 2018). Such as if a company have
various product line then they have separate divisions for each individual product line and they
all have their own different functional group. In this structure only general manager is
responsible for top management of organization.
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Illustration 1: Illustration 1: Divisional Structure
Source: (Divisional Structure, 2018)

Functional Structure: in this type of structure activities are done in similar way and
work are assign to each and every individual in order to improve functions (Organizational
Structure, 2018). For example, in JP Morgan, HR department generally recruit and select new
candidates while sales department monitor or control sales of products and services. In this way
each different department have their responsibilities which must be fulfil by employees.
JP Morgan have different organizational functions that are directly related to each other and as a
these help to achieve all goals and objectives. These are mention below:
 Human Resource management(HRM): HR department of JP Morgan aid to improve an
overall performance of a company and also select and recruit best candidates for their
business in order to run a company in better way. They also maintain good relationship
with their employees in order to feel them comfort in working environment (Operational
department, 2018). Human resource managers identifies the need of man power which
requires to perform activities in particular department and provides the same.
 Research and Development Management(R&D): R&D department of JP Morgan
contributes a lot such as creates new ideas and pass it to production department which
help them to produce products as per demand of customers. This department also have
intimate knowledge and handle a team who operate the attribute of products (Ostos,
Hinderer and Bravo, 2017). In JP Morgan, it has a team which determine positive and
negative impact of planning methods before applying them into working environment.
This department always try to generate more revenue and help to take a business in next
level of success.
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Illustration 2: Functional Structure
Source: (Functional Structure, 2018)

 Marketing and sales department: This is also plays an important role in JP Morgan.
The department is mainly responsible for developing new products packaging, set prices
and let people know about their new offers. The marketing department of JP Morgan uses
different promotional techniques such as e- brochures, advertisement and it also uses
social media like Facebook, internet in order to let people inform about their new offers.
Sales department also target peoples and help company by informing about people's
demand. Such as Marketing team are directly interrelating with sales team in order to
identify different ways to increases their sales which is a main purpose of JP Morgan, i.e.
to increase their profitability.
 Accounts and Finance Department: This department aid in evaluating company's
overall financial situation and also help to allot budget to different department of JP
Morgan. Accounts department also help in planning, organizing and auditing which
further help to controlling complete finance and makes sure that all the details are kept as
a records of cash flow which help to analyse profit and loss for a particular time period
(Moroni, Arruda and Araujo, 2015). Accounts department check the flow of cash in a
company while finance department allot budget to different department of JP Morgan for
spendings. In this way they together help to raise company's financial status.
 Operational management Department: The main function of this department is to help
in strategic planning that aid in further increment of company's productivity. For JP
Morgan, it has best and separate operational management department that monitor overall
function of a company and also make changes related to offered product's quality. The
department also adapt new and advance technologies in order to raise company's level of
production.
 Production department: This department directly inter-linked with R&D and then start
producing each unit after knowing demands of customers. It also maintains inventory in
order to determine overall transaction during a day and then transfer all products to sales
department in order to sell those in a market (Savrul, Incekara and Sener, 2014). As
production department are related to R&D as well as Marketing department then they
will produce products as per customer’s demand which help to raise company's
profitability.
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TASK 3
Presenting impact of macro environment on JP Morgan Finance
Political Factors  JP Morgan provide financial services so it is necessary for a
company to follow all the rules and regulations set by
government.
 Banking policies, taxes are some of the political factors that
affect company's financial status (Botha, Kourie and Snyman,
2014).
 The company must follow trade regulations and tariffs.
 JP Morgan also follow anti- trust law which are directly
related to Money Center Banks.
 It also provides all employees benefits which are mandatory
in business.
Positive impact: Political stability in a country will help will help an
organisation in expanding business.
Negative impact: Political insatiability of a country will decline the
growth of a JP Morgan.
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Illustration 3: PESTLE Analysis
Source: (PESTLE Analysis, 2018)

Environmental Factors  JP Morgan must follow sustainability law in order to protect
environment (Alles and et.al., 2018).
 It also considers Waste management system in order to
evaluate environmental standards.
Positive impact: Environmental factor will help to sustain
company's brand image.
Negative impact: Environmental factor of a country will creates
hindrances in the growth of company.
Social Factors  Attitude such as health consciousness of different group of
people also creates negative impact on company's overall
performance for example as customer buying power
changes which decline sales profitability and as a result it
decreases its image in market (Tredinnick, 2018).
 It is necessary for JP Morgan to give emphasis on those
cultural values in order to survive in this competitive market.
 The company has a threat of customer shifting due to which it
has to maintain its low price strategy which help to keep
sustain its customer base which creates positive impact.
Technological Factors  For JP Morgan, it is quite necessary to cope with all latest
and advance technologies as per new changing world.
 From last many years, JP Morgan try to adapt latest change
and adjust new techniques in order to communicate with their
customers that creates positive impact on company's brand
image (Poulose and Sudarsan, 2018).
 The company also introduce new credit card payment system
in online mode for the convenience of their customers that
creates positive effect on overall performance of a company.
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 Adaption of new techniques is directly creating impact on
company's cost structure.
Negative impact: These technological factor sometime creates
obstacles for a company related to its growth.
Legal Factors  JP Morgan has to comply with all legal laws that affect
external environment of a company.
 Company must follow laws related to employment, health
and safety law, data protection and consumer protection law.
 Due to some policy related to fixed rates of interest, JP
Morgan can follow long term policies that created positive
impact on company's profile (Solodilova, Malikov, and
Grishin, 2018).
Positive impact: To comply with legal laws will help in company's
smooth functioning.
Negative impact: These legal factors affect company's growth.
Economic Factors  Economic factors include inflation, recession, interest rates
etc. that affect JP Morgan financial status such as the
government changes some policies related to tax than it has
direct impact on company's finance (Calabrese and et.al.,
2018).
 These economic factors also create positive impact such that
interest rates will help to maximize more profit and aid to
take better decision for the well-functioning of company.
Positive impact: Economic stability of a country will help to expand
business at global level.
Negative impact: Economic insatiability of a country will have
negative effect on the profitability of a JP Morgan.
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TASK 4
Internal and external analysis for specific organization to assess strength and weaknesses
JP Morgan Finance and Investment consist different types of operations and functions to
attract several people at workplace. With respect to work systematic work, there are different
strength, weaknesses, opportunities and threats has been identified in UK market.
Strength:  JP Morgan Finance and Investment deals with the highest
market share. They have strength to merchandise operations in
positive context.
 It is one of the leading company in whole industry. Therefore,
it assists to thrive in the marketplace. It penetrates the new
markets in successful way (Khan and Quaddus, 2015).
Automation activities brought consistency in the chosen
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Illustration 4: Illustration 4: SWOT Analysis
Source: (SWOT Analysis, 2018)

business that enable to fulfil demanding conditions of the
enterprise.
 With an average revenue earn of $56.9 billion during a year
will makes a company leader in business finance services.
Currently company operates it services in about 50 countries
and has a superior reputation by offering best services to their
customers.
Weaknesses:  There are several weaknesses of the chosen business that have
impact on attaining competitive advantages. Strategic
positioning of the company is not strong so that it creates
problem to develop significant results.
 Fluctuation in stock market is also consider weakness of JP
Morgan.
 It has been analysed that its productivity is also decreases due
to bearing heavy work load for their existing employees.
Opportunities:  There are huge opportunities for JP Morgan to expand its
business at global level and even have to cover all de- emergent
markets too to increases its share.
 The agreement of IBM will make JP Morgan more competent
and which creates effect in reduce in cost and increase in
quality of offered products (Kljucnikov and et.al., 2016). Even
a bond with IBM and other companies also create important
value for its stakeholder, clients and employees.
 The company start introducing online payment system for their
convenience of customers which help to sustain its brand
image.
Threats:  JP Morgan also faces threats from many competitors because it
operates its work in about more than 50 countries at both
globally and regionally.
 The company have also fear related to cyber issues and even
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hackers get financial files which creates negative impact on
customers, this lead to loss in their financial services (Bah and
Fang, 2015).
 Employees of a company are demotivated due to less pay and
as a result there is decrease in company's productivity. The
entering of new firms and danger of substitute exist also creates
another threat for JP Morgan finance and Investment.
How strength and weaknesses interrelate with external macro factors
It has been evaluated that both micro and macro factors are considered to be as an
important aspect for JP Morgan Finance and Investment which creates positive as well as
negative impact. These are also helpful in decision-making process and are interrelated with each
other. Such that political factor is directly inter-link to company's strength. For example, the
change in policies by government has significant effect on business policies as well as plan
(Hamilton and Webster, 2015). Moreover, economic factors help to raise financial situation of JP
Morgan such that as the recession and inflation increases, it directly has impact on company's
external as well as internal environment. While on the other side, macro factor such as
technological element that directly related to company's performance. If JP Morgan adapt all new
and latest techniques, then it will help for customers such that they prefer to choose their
products and services through online mode only because it is quite beneficial for them and
creates positive impact on customers and help in growth for a company.
These macro factors are also having positive as well as negative impact on business
environment of JP Morgan such that as the rules and regulations changes then the company is
pressurized to change their current rates and prices of their existing offerings and it directly
creates impact on business decision- making (Smith, 2016). But on the same time it creates
negative impact such as fluctuation in company's financial status while on the other side,
customers enjoy their services because JP Morgan offer products at low and affordable price.
The customer behaviour is their main motive behind developing business strategy and they
always try to offer best services as compared to their competitors. This clearly shows that all
micro and macro factors are directly interrelate with each other that affect company's external
and internal environment and also creates positive and negative impact on business decision
making. Micro factors such as opportunities and threats creates positive impact on business
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decision making such as to overcome threat JP Morgan will definitely improve its performance
and as a result it will be sustain its brand image in market. So there is need to continuously
monitor all micro and macro factors because they will somehow damage brand image of JP
Morgan Finance and Investment.
CONCLUSION
From the above report it has been concluded that for smooth functioning of business it is
quite necessary to determine all factors that somehow damage company's icon. Report present
different types of sector which have their own objectives and concluded that Private companies
have large size in UK. Further, it describes different organizational function such as HR, R&D
department, marketing and sales, production department with their interrelation with each other
Beside this, report also describe how external as well as internal factors affect company overall
performance by using PESTLE and SWOT analysis and concluded that both micro and macro
factors help in business decision making process.
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