Business Environment and Firm Success

This assignment requires students to analyze the impact of the business environment on young firm financing. Students must utilize a set of provided research papers by authors such as Chavis, Klapper, Love, Ebert, Griffin, Dracopoulos, Enofe, Mgbame, Ehi-Oshio, Hair, Hamilton, Webster, Johnson, Whittington, Regnér, Niemann-Struweg, Pearson, Bharadwaj, El Sawy, Venkatraman, Prajogo, Pulver, Sekaran, Bougie, Sørensen, Teece, Turban, Sharda, Delen, and Zott. The analysis should draw insights from these papers to understand the various factors influencing financing decisions for young firms within different business contexts.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P 1- Explaining different types and purposes of organisation....................................................3
P 2- Explaining size and scopes of different types of organisations...........................................5
M 1- Link of structure, size and scope of different organisations with business objectives and
product and services offered by them.........................................................................................7
TASK 2............................................................................................................................................8
P 3- Explaining relationship between different organisational functions and their link with
objectives and structure organisation..........................................................................................8
M 2- Analysing advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure........................................9
D 1- Analysing complexities of different types of business structures and the
interrelationships of different organisational functions..............................................................9
TASK 3..........................................................................................................................................10
P 4- Identifying the positive and negative impacts the macro environment has upon business
operations..................................................................................................................................10
M 3- Applying PESTLE model to analyse the macro environment.........................................10
TASK 4..........................................................................................................................................11
P 5- Conducting internal and external analysis to identify strengths and weaknesses of
organisation...............................................................................................................................11
P 6- Explaining how strengths and weaknesses interrelate with external macro factors of
organisation...............................................................................................................................13
M 4- Applying SWOT analysis and justifying how they influence decision making..............14
D 2- Critically evaluating the impacts that both macro and micro factors have upon business
objectives and decision making................................................................................................15
CONCLUSION..............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Organisations are that in which work are in the direction of earning profits and
reinvesting them in making their business operations better. Members of sectors work by
coordinating with each other to achieve company's desired and targeted goals and objectives.
Barclays is a world's leading and the most respected international bank. It provides many
services to their customers like commercial banking, investment banking etc. They have
philosophy to give importance to values and principles in all aspects of everyday living. This
report includes about different types of organisation which also differs from each other by their
size, scope, legal structure and objectives (Sørensen, 2012). Two types of organisations structure
that Barclays business clients might have are analysed. Relationship between different
organisational functions and their link with company's objectives and structure is discussed.
Positive and negative impacts of macro environment on the firm operations are demonstrated.
Strengths and weaknesses of businesses and their relationship with external macro factors are
explained. Impact of macro and micro factor may have upon company objectives and decision
making are also discussed.
TASK 1
P 1- Explaining different types and purposes of organisation.
Organisations are that in which all the members work together for common objectives
and goals. Businesses are of different types which differs from each other by their purposes.
They work in the direction of achieving their firms objectives according to their business
operations and purposes.
Different types of organisations and their purposes Sole trader- In this business is started by the single person. That person is the sole owner
of the sector. All the decision for the firm are taken by sole owner. He/she single
headedly manages all the business operations of the firm. Sole trader have the advantage
that profits of the firm are enjoyed by them only (Teece, 2010). They did not have to
share their profits. They generally start at a small level and becomes big by hard work the
owner. Sole trader have disadvantage that he/she has to individually bear the losses which
occurs in firm. Sole proprietor has to take full responsibility of taken risks in the

company. Rogela Accounting Services is the sole trader in UK which provide accounting
services to their clients. This firm operates in the tertiary sector of the country. Partnerships- In these organisations two or more person become partners and work
together for the common goals and objectives. These all the partners invest some amount
of capital in the company as decided by mutual understanding between the partners. They
all make decisions about the firm by consulting with each other. Partnership firm has the
advantage of sharing the losses which can occur in journey of the firm. All the partners
are responsible for the losses they suffer. They did not have to assume the responsibility
individually. Organisation of partnership has disadvantage of raising conflicts. Partners
not happy with suggestions of other partners can raise problems and conflicts between
them. Health and Well is a partnership firm in UK which works in the direction of
providing health related products to their customers (Aterido, Hallward-Driemeier and
Pagés, 2011). They are working in primary sector because they directly makes products
from the raw materials received from the supplier. Private organisation- These types of organisations are profitable which work in the
direction of making profits. Private sectors are owned by single person or some private
firm. They provide quality products and services to their customers by bringing
innovation in the business operation of company. Private organisation have advantage to
reuse their profits in further development of the firm. On the other hand they also have
disadvantage of needing large amount of capital to be invested in their organisation. They
generally start at a small level and needs high amount of profits to grow in the market and
increase their share. Mark and Spencer is the type of private organisation in the retail
industry of UK. They are working in primary sector of the country. Public organisations- Public organisations are owned and run by the government of the
country. They work in the direction of providing product and services to public which
will be helpful for them. They do not want profits. These organisation works by the taxes
which government receives from the people. Public organisation have the advantage to
operate at high level because they are handled by the government and have right amount
of capital to be invested in the sector (Chavis, Klapper, and Love, 2011). On the other
hand they also have disadvantage of giving poor quality services to the public. Police

sector is one of the public organisation in UK. They provide protection services to the
people of country. This is tertiary sector because they provide services to the public.
 Voluntary organisations- These are non- profitable organisation which works in the
direction of solving the problems of people and protecting rights of people and even
animals. Voluntary sectors only wants to create safe and secure environment in the
country. These sectors have advantage of being popular by solving problems which are
faced by people. They also have disadvantage of facing many legal problems because of
their working styles. Animal rights is one of the voluntary sector in UK which protects
the rights of animals (Ebert, Griffin and Dracopoulos, 2014). They operate their business
operations in tertiary sector.
P 2- Explaining size and scopes of different types of organisations.
Different types of businesses have different sizes and scopes. They also differ from each
other by their legal structure. Difference between them on the basis of size, scope, legal structure
and objectives are described in table which is as follows:
Differences between organisations
Basis Sole trader Partnership Private Public Voluntary
Size Sole traders
are generally
small because
they are
started by the
single person.
Partnership is
big because it
includes
investment of
two or more
partners in the
business.
Private
organisations
starts from
small to big by
providing
services and
products of
quality and
satisfy the
customers
(Hamilton and
Webster,
2015). They
attract many
These sectors
are generally
big because
they are
owned and run
by the
government.
Government
can invest
money in
business by
receiving taxes
from public
which makes
Size of
voluntary
sectors are
described by
the direction in
which they
work for.
Large
objectives will
make them big
and small term
objectives will
term them as
small.

customers
which
increases their
market share
and makes
them small to
big.
them big.
Scope These
organisations
have scope to
grow in
market by
providing
diversified
products and
services to
their
customers.
Rogela
Accounting
services can
increase their
scope by
providing
other services
to their clients.
Partnership
firms have
large scope to
grow in the
market
because they
work by
taking
suggestions of
all the
partners.
Health and
Well
partnership
organisation
can grow by
taking ideas
from the
partners.
Private
organisation
have scope to
grow by using
creative ideas
and innovation
in the business
operations.
Mark and
Spencer uses
many
innovations
which makes
their scope
increase to
grow further.
Public sectors
have scope to
grow by using
taxes which
government
receives from
public in
making their
process better.
These sectors
can grow more
by becoming
private. It is
called
privatisation.
Police sector
can grow by
using new
technologies
in their
business.
Scope of
voluntary
sector is
depended
upon their
functions of
business
(Johnson,
Whittington,
and Regnér,
2013). Animal
rights can
grow more in
market by
increasing
their business
objectives.
Legal
structure
Legal structure
of sole trader
Partnership
firms have
Private sector
also has very
Legal structure
public sectors
Legal structure
of voluntary

is very easy
and simple
process.
very complex
legal structure
because of
protecting
rights of each
and every
partner.
complex legal
structure
because
procedure for
formation is
decided by
government.
is easily
understood
because they
are owned by
the
government.
sector is
described by
the complexity
of their
functions and
objectives.
Objectives Rogela
Accounting
Services has
an objective to
provide best
accounting
services to the
customers
(Pearson.Bhar
adwaj, El
Sawy and
Venkatraman,
2013).
Health and
Well
organisation
provides
health related
products and
services to
their
customers
(Zott, Amit
and Massa,
2011).
Mark and
Spencer has an
objective to
become
world's largest
retail
company.
They want to
the best
quality
products to
their
customers.
Polices sectors
have an
objective to
provide the
best security
services to
public
(Cavalcante,
Kesting and
Ulhøi, 2011).
Objective of
Animal Rights
is to protect
the rights of
animals in the
country (Bah
and Fang,
2015).
Sector Tertiary sector Primary sector Primary sector Tertiary sector Tertiary sector
M 1- Link of structure, size and scope of different organisations with business objectives and
product and services offered by them.
Structure, size ans scope of organisation are linked with the business objectives and
products and services of the business. Organisation with small size will have fewer objectives
and products while on the other hand large organisations will have large objectives. For the
further growth of company its objectives and products and services will be increased. Complex
legal structure will affect them whereas easy legal structure will increase objectives and products
and services of the organisation.

TASK 2
P 3- Explaining relationship between different organisational functions and their link with
objectives and structure organisation.
Organisational structure Barclays business clients Functional structure- Business operation of banks include many functions. Business
clients of Barclays will definitely have functional structure. Financial structure- Banks mainly works in the direction of finance. So business clients
of Barclays may have financial structure.
Relationship between different organisational functions and their link with objectives and
structure of organisation.
All the functions within the organisation are related with each other and with objective
and structure of the firm. Different functions of organisation are as follows: Managerial functions- This function is performed in Barclays to manage all the activities
of bank and employees working in it. Managerial functions are important to achieve the
objectives and goals of bank in efficient way (Prajogo, I. 2015). This function co-
ordinate with other functions of organisation to ensure further success. Complex structure
of organisation will need hard working managers to work and cope with these conditions. Operational functions- There are many business operations which are performed in the
Barclays. It is important to perform these operations for the further growth. These
operational functions needs to work with all the other functions to efficiently achieve all
the objectives of bank. Complex structure of organisation can make the business
operations difficult to perform. Financial functions- It is the main function of every bank. This function ensures proper
amount of money to be invested in the other functions of organisation. Barclays firstly
understand the financial conditions of organisation to perform its other functions. It
works with all the functions and gives them proper guidelines to work and reduce the cost
of company.
 Marketing functions- It is the most important functions which co-ordinate with other
functions and ensures further development of organisation in the market. Barclays
marketing function is related with all its functions and makes them complete in effective
way (Bah and Fang, 2015). Complex structure can make marketing function complex.

These functions are interrelated with each other which helps the organisation to achieve
all its desired and targeted objectives. Complex structure of organisation will make difficult to
perform the functions efficiently.
M 2- Analysing advantages and disadvantages of interrelationships between organisational
functions and the impact that can have upon organisational structure.
Advantages of interrelationships
 Relationship between different functions in Barclays will efficiently achieve all the
objectives of the firm.
 This will make clients of bank satisfied. More customers will be attracted towards company which will increase their market
share.
Disadvantages of interrelationship
 Non-completion of anyone function can effect other operations or departments of
Barclays. Bad financial conditions will affect the performance of all the functions.
Impact on organisational structure
 Interrelationship between function can make the complex structure easier to understand.
 Co-ordination of all departments in Barclays can make the necessary changes in structure
of bank (Niemann-Struweg, 2014).
D 1- Analysing complexities of different types of business structures and the interrelationships of
different organisational functions.
Complexities of different types of structures
 Every structure in the business is very complex to form.
 For forming the organisational structure the company needs to complete many formalities
(Zott, Amit and Massa, 2011). Financial condition of the firm should be strong to make suitable business structure.
Complexities in interrelationships of different functions of organisation
 For completing the one function help of other is needed.
 Problems faced in department will also cause some difficulties in workings of other
departments.

TASK 3
P 4- Identifying the positive and negative impacts the macro environment has upon business
operations.
Positive and negative impacts of macro environment can be identified by the analysing
the external macro factors.
Positive impacts
 Fulfilling all the social responsibilities by bank will bring positive impact on business
operations.
 Barclays takes care of environment which brings many customers towards them (Enofe,
Mgbame and Ehi-Oshio, 2013). It has the positive effect on bank. They use many new technologies which are in favour of bank and make it grow in the
market.
Negative impacts
 Instability of the political environment brings negative impact on the workings of cited
firm.
 Uncertain economic conditions badly affects the business operations of Barclays.
 The cited organisation faces many legal issues because of its working style.
M 3- Applying PESTLE model to analyse the macro environment.
PESTLE model will efficiently analyse the macro factors which can affect business
operations of the Barclays. Political factors- These factors are influenced by the changes and new policies made by
the government. There are many rules and regulations which are made to govern the
activities of banks (Sekaran and Bougie, 2016). These are for the welfare of public or
customers. Government of UK had changed their policies about the capital which has
affected Barclays. This had brought negative impact on the workings of bank. Economic factors- Economy is never certain. It changes with different situations.
Changes in taxes of country had deeply impacted the cited bank (Bah and Fang, 2015).
UK leaving EU will definitely affect the economic conditions of country. It can bring
negative impact on the business operations of Barclays.

 Social factors- These factors include the social responsibilities which are to be followed
by the cited organisation. Now the population of country is moving towards in direction
of saving or investment (Barclays PESTLE and SWOT analysis, 2017). It will positively
affect Barclays. Working of bank will be increased in these conditions of the society. Technological factors- Technologies which can be used in bank sector are developing
day by day. It makes the work easier for banks. Barclays uses many new and innovative
technologies in its business operations (Chesbrough, 2010). It will positively impact the
bank because their efficiency will be increased and their work will be easier. Legal factors- Legal environment of the Barclays is not good. Their were many legal
disputes faced by the bank in recent year (Pulver, 2012). The cited organisation was fined
because of these disputes. It states that currently the bank is facing negative impacts of its
legal factors.
 Environmental factors- Barclays is very attentive towards its environmental factors.
They try every measure to make the environment safe and secure. The cited organisation
had reduced their energy consumption by decreasing carbon foot print (Zott, Amit and
Massa, 2011). It has positive impact on bank because it will attract more customers
towards them.
However, analysing external environmental factors generate different ideas for further
decision making and increasing entity's efficiency. Including this, positive and negative impacts
on business operations are identified impacts on its profitability and marketability as well.
TASK 4
P 5- Conducting internal and external analysis to identify strengths and weaknesses of
organisation.
Internal and external analysis of the Barclays for identifying its strengths and weaknesses
can be done by critically understanding the macro and micro environment.
External analysis
 Political environment influences many changes in the working style of Barclays.
Government had increased the rates of tax to be paid on profits made by banks
(Cavalcante, Kesting and Ulhøi, 2011). Currently political instability is becoming the
weakness of cited bank.

 Uncertain economic conditions are also showing weaknesses of bank. Value of currency
is decreasing which had negatively impacted on business operations.
 Cited bank is effectively fulfilling all its social responsibilities. Changes in society had
brought some negative impacts which is leading them to make social factors their
weakness.
 Barclays uses many innovative technologies in their working style. This had led them to
make technological factor their strength. Using new and innovative technology is
necessary for their further growth in the market.
 Currently the cited bank is facing many legal issues in their business. They were fined in
past few months. Recently legal factors of the macro environment is their weakness.
They need to keep healthy relation with all their stakeholders to cope with their weakness
in the legal environment.
 The bank had gained attention of many customers by being attentive towards the
environmental conditions of the country. They had made environmental factors their
strength. They save energy by using efficient working styles.
This is the external analysis which shows the strengths and weaknesses of Barclays.
Internal analysis
 The cited company currently has many strengths. They work effectively in the global
market which eventually leads them to be more reputed among their customers. This also
attracts the attention of many new customers towards them. They are financially very
much strong which makes them do their all the functions effectively. Barclays provide
diversified services to its customers which makes them satisfied (Chesbrough, 2010).
These strengths of bank help them to increase their market share.
 Barclays have weaknesses according to their past workings. They were fined by the
government in past few months because of some issues. This had decreased their
goodwill or reputation among their customers. Their working style was criticised which
is not at all good for their further growth.
 There are many opportunities for further growth of the cited firm. They can grow their
business in developed markets which will help them to gain the attention of new
customers. It will increase their revenue and profits. They can provide new and
innovative online banking facilities to their customers which will make them satisfied.

Barclays can speed up their finance in trade by the help of block chain revolution. By
using these opportunities they can make their strengths more strong.
 Many big threats are faced by the cited organisation. They get many threats by the
instability of political environment because of the effects of Brexit. There are many
competitors for Barclays in the market which threatened them to reduction in their market
share (Hair, 2015). They have fear of decrease in their reputation among their customers.
These threats can become their weaknesses if not coped up with effectiveness.
P 6- Explaining how strengths and weaknesses interrelate with external macro factors of
organisation.
Macro factors definitely interrelate with strengths and weaknesses of the firm. Their
relationship can be in positive or negative way.
Relationship with external macro factors
 Political instability is the weakness of Barclays because they did not follow the rules and
regulations made by government. They need to be updated with all the policies which are
brought to make changes in their business operations as fast as possible.
 Economic uncertainty had showed many weaknesses of the cited bank which is not at all
good. Brexit had very much impacted the business operations of bank. UK leaving the
membership of EU will also affect the business but in positive way. It will increase the
attention of customers on savings and investments. It can become their strength.
 Now the customers force the organisations to fulfil their social responsibilities. Barclays
effectively fulfils its all the responsibilities. This is their strength. It will attract new
customers towards them.
 New technologies coming in market are very efficiently used by the cited bank. It helps
them to enhance their working style (Pulver, 2012). This attracts many new customers
towards them. Bank has many opportunities to use these innovative technologies.
Efficiency ensures the further growth of the company.
 Legal factor of macro environment is currently the weakness of Barclays. They were
fined because of legal issues. It was found out that official officers of bank were doing
some fraud. It was not good for their legal environment.

 Environmental factors of the macro environment are strength of the cited bank. They use
many effective measures in their working style to make the environment safe and secure.
They save energy by using efficient methods.
These are some macro factors which interrelates with the strengths and weaknesses of the
organisation.
M 4- Applying SWOT analysis and justifying how they influence decision making.
SWOT analysis Strengths- Barclays have strength of strong global market in which it works. They have
many branches. They are financially strong which makes them to take effective decisions
for taking the risks (Turban, Sharda and Delen, 2011). Further growth of business by
using its strengths will increase their decision making process for their operations. Weaknesses- The cited organisation had faced many controversies in the past few years
which had reduced their reputation among their customers and in the market. The
company had to make very strict decisions to cope with these situations. They need to use
their strengths to the fullest to overcome these weaknesses. Opportunities- The bank had many opportunities to grow in the market which will
increase their share. They can expand their business in more markets to increase their
customers. It will help them earn high amount of profits. They can give more developed
online facilities to their customers. Barclays needs to make fast decisions to grab these
opportunities which will help them in further development and growth.
 Threats- Main threat to the bank is of their competitors. They need decide fast and bring
some new technologies to have some competitive advantage among their competitors.
Efficient decisions will help them to overcome these threats.
This is SWOT analysis which can affect the decision making process of cited
organisation. This will also help Barclays to make the right decisions.
D 2- Critically evaluating the impacts that both macro and micro factors have upon business
objectives and decision making.
Impacts of macro and micro factors on business objectives and decision making
 Business objectives will be effectively and efficiently achieved by the favourable
conditions in the macro and micro factors. Barclays can use its strengths to make impact
of business environment positive for them (Chesbrough, 2010). Decision making process

will be effectively followed if the cited bank cope up with all the impact of macro and
micro factors.
 Non-favourable conditions by the impact of micro and macro factors of environment will
hinder the achievement of desired and set objectives of Barclays. It will also affect their
decision making process. They will take fewer risks and will not be able to grab the
opportunities. Right decision will not be taken in these conditions.
CONCLUSION
This report concludes about the different types of organisation which have many
advantages and disadvantage. It is shown that whether the organisation is of primary, secondary
or tertiary sector. These businesses are different from each other by their sizes, scopes, legal
structure and objectives. All these are related with the business objectives and products and
services offered by the organisation. There is the relationship between different functions of firm
and with the objectives and structure of the company. They have many advantages and
disadvantages because of these interrelationships. Macro environment have many positive and
negative impacts on the business operations. PESTLE model is made to analyse the macro
environment. Internal and external analysis shows the strengths and weaknesses of the
organisation. These strengths and weaknesses are interrelated with the external macro factors.
SWOT analysis is done to understand the influence of business environment on the decision
making.

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Online
Barclays PESTLE and SWOT analysis. 2017 [Online]. Available through:
<https://www.swotandpestle.com/barclays/>.