Business and Business Environment

This presentation explores the purpose of organizations, their point of difference, organizational structure, size, scope, and the services or products offered. It uses examples from GSK and Barclays Plc to illustrate the different aspects of the business environment.

Business and Business
Environment

Contents
 Purpose of organisations
 Point of difference
Organisation structure
Size
Scope
Service or products offered
Conclusion
Bibliography

Purpose of organisations
• According to Baron (2012), the sizes and scope of every organisations is
drastically different than one another and their operational activities also differ
in size and future scope.
• Being a huge company in the banking sector, Barclays Plc has huge duties and
purposes as a corporate and public body and the main responsibility is to have a
positive corporate social responsibility (CSR) towards the public.
• Since GlaxoSmithKline is a private organisation, their liability is spread vastly,
starting from customers, shareholders and all the major stakeholders. The fact
that their business deals in sensitive products such as medicines and vaccines,
they constantly must undertake research and development procedures to create
new and advanced products that have huge implications in the normal world.

Point of difference
• The purpose they serve has a major distinction as one company deals in
pharmaceuticals while the other in banking services. Both companies have the
common objective of serving customers but the process of raising funds is
different.
• Public corporations can easily raise money by issuing shares and stock whereas
private companies need to follow several protocols before engaging in raising
funds. Their expansion decision making is based on the volume of profits that
they generate.
• Another distinction that arises is the fact that issuing shares is easier in public
companies and the owner of the shares becomes a part of the company. It is not
the case in a private company as board of directors of the private company need
to follow advice of their investors.

Organisation structure
• Barclays Plc being centralised in nature it allows the company to
exercise decision making on certain products of their own. They have a
differentiation strategy that is aimed at niche and urban customers.
Being present in the corporate scene for almost 300 years, it has already
established a brand identity and makes it easier for them to conduct
business.
• The fact that GlaxoSmithKline’s business deals in sensitive products such
as medicines and vaccines, they constantly must undertake research
and development procedures to create new and advanced products that
have huge implications in the normal world. Having business in many
continents, it has maintained its corporate responsibility quite well

Size
• Both GSK and Barclays Plc is used, it can be noted that being large
scaled organisations and business spread worldwide, the operational
activities are constantly based on improving services.
• GSK have developed a widespread business and their products deal in
pharmaceuticals, vaccines and healthcare products.
• Developing a close working unit allows Barclays Plc to undertake
dealings with employees, clients and governments in a proper
manner that allows personal and business growth. Their code of
conduct for values and behaviour governs every decision making
process in the company

Scope
• Considering GSK’s objectives, the development of healthcare products
along with constant research and development allows them to
operate responsibly in the global market.
• All the actions of Barclays Plc are covered with full integrity, fairness
and cooperation. This allows them to handle business accounts of
every individual tactfully and provide customer satisfaction. Building
this code of conduct specifies their objectives of achieving a unified
workforce.

Service or Product offered
• GSK have developed a widespread business and their products deal in
pharmaceuticals, vaccines and healthcare products.
• Wide ranged research and development introduces new drugs in the
market
• Barclays Plc delivers products and services that range from personal
to international banking for individuals and corporate banking for
SMEs and large organisations

Conclusion
The facts contribute to the fact that business environment is a forever
changing phenomenon. The examples of GSK and Barclays Plc suggest
to the fact that organisational functions are different in every
organisation and it differs with the kind of products that are produced.
The study points out the fact about the various purposes that each kind
of organisation presents and helps in understanding organisational
behaviour as per macro environment impact is concerned.

Bibliography
• Baron, P. (2012) Business and its Environment. 7th Ed. London:
Prentice Hall.
• Child, J., (2014). Organizational structure, environment and
performance: The role of strategic choice. sociology, 6(1), pp.1-22.
• Damanpour, F., (2014). Organizational innovation: A meta-analysis of
effects of determinants and moderators. Academy of management
journal, 34(3), pp.555-590.