Assignment: Business and 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.
1

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.
2