Introduction to Business and Business Environment INTRODUCTION

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Explaining different type of organisation with their size, scope, legal structure and
organisation.................................................................................................................................1
TASK 2............................................................................................................................................4
Analysis of organisational structure and interrelationship of its various departments function. 4
TASK 3............................................................................................................................................7
PESTLE analysis of YORKSHIRE bank with its evaluation of its impact on organisation
performance.................................................................................................................................7
TASK 4..........................................................................................................................................10
SWOT analysis of YORKSHIRE bank and their relationship with macro environmental
factors........................................................................................................................................10
Explaining the interrelationship between macro and micro factors that are impacting on
YORKSHIRE bank...................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business Environment can be termed as the individuals, institution and ll other factors
that can affect or control the business entity. It assist in increasing profit maximization of the
business. There are numerous factors which assist in constituting the business environment of a
business which affects its operation and decision making process. It can be said that internal
factors of business environment are controllable, whereas external environment are
uncontrollable. The present report will assist in analysing the factors of business environment
which can affect the performance and overall profitability and growth of a business enterprise.
The report is based on YORKSHIRE bank which is one of the UK leading private sector bank.
Report will help in analysing different type, size and scope of organisation with different
example. The interrelationship of various functions within YORKSHIRE will be presented with
its organisational structure. Further, the negative and positive impact of external environment
will be analysed with effective strategic tool. Later on, the internal analysis will be done using
SWOT analysis tool.
TASK 1
Explaining different type of organisation with their size, scope, legal structure and organisation.
There are various type and size of organisation which varies as per their business
operation and business objective. YORKSHIRE bank's client can be of different organisation
type. Below are different type organisation and their differences on the basis of size, scope and
legal structure:
Private organisation: this type of company are privately held by the an individual, group of
companies or certain group of organisation. Most of the private sector organisation are run with
the intention of making profit. Most of the business under private sector are including in selling
of goods or services to customer (Wellin, 2016). The main sources from where private
companies can raise funds is bank loan, personal savings, retaining profit and issuing their shares
and debenture in financial market. For example Marks and Spencer plc, it is a major
multinational retailer company based in UK.
Advantage of private company:
 It is a legal company which is registered in company act, which Added credibility. This
creditworthiness help in raise fund from capital and money market.
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 On of the main advantage of private company is that it will continue to survive, even if its
owner die or dissolve due to any reasons (Craig and Campbell, 2012).
Disadvantage of private company:
 Private business entities has to pay certain annual fees, which enhances the obligation
burden in case of bad profits.
 The process to register the company is quite consuming and will require employees with
better law practices and knowledge.
 The procedure to wind up the company is quite complicated and is very costly also.
Public Organisation: This type of organisation are owned and governed by the government of
a country and established with an objective to provide services to the its citizen and entire
society. They are not intended just to make profit, but they create some profit in order to rum
their operational activities of the company (Goffee and Scase, 2015). Their main purpose is to
enhance the economy, generate employments opportunity, maintain infrastructure of country etc.
They are very essential in developing the economy of country. For example British Business
Bank, state-owned economic development bank which is established by UK government.
Advantage of Public company:
 Great opportunity for growth and expansion as it has government support and sound
financial position.
 Greater economies of scale can be achieved in public sector organisation.
 It can leads to protect the public interest and enhancing the economy of country.
Disadvantage of Public company:
 It is very difficult to manage and take meetings with different government official at the
same time.
 Such business more often leads to end up by producing low quality goods and services as
they have enough funds to survive and has limited or less competition (Waddell, 2017).
Voluntary organisation: This type or organisation are combination of different companies that
aims to provide benefit and welfare to the society. They do not intended to make profit, their
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