Business and Business Environment Report

This report analyzes the business and business environment of Yorkshire Bank, examining different types of organizations, organizational structures, and the relationship between functional departments. It also explores the impacts of the macro environment on business operations using a PESTLE analysis and conducts a SWOT analysis of Tesco, a major client of Yorkshire Bank. The report concludes by evaluating the impacts of both macro and micro environmental factors on business objectives and decision-making.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different types of organisations.............................................................................................1
TASK 2............................................................................................................................................4
Different organisational structures and relationship of their functional departments............4
Organisational functions/departments....................................................................................6
TASK 3............................................................................................................................................8
Impacts of macro environment on business operations..........................................................8
PESTLE analysis exploring the positive and negative impacts of macro environment on
business operations.................................................................................................................9
TASK 4..........................................................................................................................................11
SWOT Analysis of Tesco.....................................................................................................11
Critical Evaluation of the Impacts of both Macro and Micro environmental factors on business
objectives and decision making of the company..................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
It is important for an organisation to have a good business environment in order to
achieve success and achieve desired goals and objectives. The below report explores the business
and business environment of Yorkshire Bank. Yorkshire Bank is one of the leading banks of
United Kingdom. It is having 4,400 offices worldwide and provides a variety of services to
numerous consumers. The below report in context of Yorkshire bank explains different scope,
size and types of organisation. Interrelationships of various functions within these organisations
have been explained as well. Along with it, various examples have been used in order to
demonstrate both negative and positive impacts of macro environment on the business
operations. Also, the report determines the internal weaknesses and strengths of Yorkshire Bank
and explains their interrelationship with the above mentioned macro environmental factors.
These reports will help one to easily evaluate the understanding of a business environment and
functioning better (Vellas, 2016).
TASK 1
Different types of organisations
Below mentioned are the different types of organisations:
Sole Trader: A sole trader/proprietorship is a very common form of business
organisation. This advantage of sole trader is that it can be easily formed and provides a
complete control to its owner. The disadvantage of sole proprietorship is that the owner of the
business is liable for all debts and financial obligations occurring in the business. The size of sole
proprietorship is mainly small. The scope of such organisations is simpler and the owner tends to
bring his own capital and he is the controller, decision maker, organizer of the organisation.
The legal structure of sole proprietorship revolves around the owner, where the owner
have to bear all the risks and provide all the finance as well. He is the one that faces liabilities
and enjoys all the profits as well. The main objective of such organisations is to earn profits and
increase business activities further. Sole proprietorship generally arrives in secondary sector as
their main job is to manufacture products. Examples of sole proprietorship includes local
restaurants, shops and home-based businesses. A sole proprietor often uses a business name or a
trade name rather than their own legal names (Morschett, Schramm-Klein and Zentes, 2015).
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Partnerships: In partnership organisations, two or more persons own the business and
profit undertaking. The partners are jointly liable for the debts or any legal liability against the
partnership. Its advantage is that in partnerships not a single person has to fund everything. Its
disadvantage includes that the partners has to report their partnership income even if the
distribution is not made or earned. The size of partnerships firms can vary from small, medium,
or large (Nes, 2018). The scope here is that as per the agreements each of the partners introduces
management, capital, and labour and take suited part in business affairs. The legal structure here
is that the partners have to choose their business partners carefully and draw the agreement on
the rights and responsibilities of each partner which is known as The Articles of Partnership or
Deed of partnership. The objectives of such organisations can vary from earning profits,
increasing business etc. In general, these organisations arrive in secondary and tertiary sector
both. The main job of such organisations is to manufacture goods and provide commercial
services both. BMW and Louis Vuitton are some examples of partnership businesses.
Private Sector Organisations: The private organisations are joint stock companies
where businesses have separate legal identities. These organisations are often small, family run
businesses owned by different shareholders. The advantage of private organisations include they
are operated freely and supported by government in order to earn profits and increase business.
The disadvantage of such organisations includes their business can suffer if there are fewer
profits and organisation have to wind up itself. The size of private organisations can be small,
medium and large. The scope of such organisations can be complicated and quite wide. The
duties of the employed personnels are defined and responsibilities are prepared on organisational
charts. The legal structure of private organisation in limited and the company is run by a board of
directors and is headed by a chairman. The objectives of business can be both earning profits and
increasing its business activities. Private organisation often arrive in secondary and tertiary
businesses because they deal with both gathering or raw materials and production of goods and
services. Bestway group and Shop direct group are some examples of private businesses in
United Kingdom (Gillespie and Riddle, 2015).
Public Sector Organisations: These organisations refers to such organisations and
businesses which are accountable to local or central government. Public sector organisations are
directly funded by the government and they supply service to the public rather than producing
products to earn profits. These organisations provide 3 types of services and goods which are
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public goods, merit goods, and essential services. The advantages of public organisations is that
they are often good for providing goods and services to public and having public organisations
which are better service providers can make the country and its people flourish. The
disadvantages of public sector organisations include more pressure of the country's government
and lack of profits for the economy (Penz and Kirchler, 2016). The size of public organisations is
mostly medium and large as they are made to serve the people on a large scale. The scope of
public organisations is to provide better services to its public while earning large profits and
maximizing the efforts made in order to be successful. The legal structure of such organisation
revolves around the central government which pays for the merit and public goods from taxation.
Local governments pay for the services they provide through council tax. The business
objectives of such organisation includes achieving financial growth and providing better services
to public. These organisations are generally tertiary sector organisations. Examples of such
organisations include British Council and Civil Service Fast stream.
Voluntary Sector Organisations: These organisations serves the only purpose of public
welfare. The activities which the people of these organisations are involved into include
providing better services to public, helping them in their welfare, and serving humanitarian
purposes. The advantages of voluntary organisations include better provision of services to the
health and wealth of a country and ensuring better safety and security (Kipnis and Broderick,
2017). The disadvantages of voluntary organisations includes earning funds from different
sources, pressure on the country's government and chances of failure. The size of voluntary
organisations can be small, medium and large. The scope of such organisations is to serve public
well and make sure that they are doing their best in serving public. These organisations are very
much in order to serve their purpose well and ensures overall achievement of their goals and
objectives. The legal structure of a voluntary organisation coming under trust which are
generally set up to manage property or money for a clear purpose. A formal relationship is
established between three parties, the trustees, donors and beneficiaries. The objective of a
voluntary organisation is to serve its people well and achieve desired goals. These organisations
generally come under the category of tertiary organisations as they serve commercial purposes.
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TASK 2
Different organisational structures and relationship of their functional departments
Yorkshire Bank in most cases serve public (British Council) and private organisation
(Tesco) and these are its clients as well. Below explained are different organisational structures
of these organisations. Along with it, different organisations functions/departments and their
organisational structure and objectives have been explained as well:
(Source: British Council Organisational Structure, 2019)
Public Sector Organisations: British Council is one of the largest public organisations of
United Kingdom. The organisation specialises in educational opportunities and international
culture and is Headquartered in London, United Kingdom (Schmid, Grosche and Mayrhofer,
2016). The organisational structure of British council involves a CEO which is the head of the
management and is responsible for the management and leadership within the overall
organisation. The CEO of the organisation provides order to its branch management team which
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Illustration 1: British Council Organisational Structure

includes the department of global business change (portfolio office), global network (policy and
external relations, United Kingdom region, global network team, regions) English and exams
(new product development, marketing and sales, exams, British council schools), cultural
engagement (strategy and planning, education group, society group, policy, research etc.), and
Arts (Architecture, design, and fashion). These departments are the head departments that
operate under the command and directions of Chief executive officer. They are the base of the
organisation and are responsible for growth and management. Under these departments the major
departments that work include Human Resources which is responsible for strategic HR business
partners and business consultants, global employee relations and reward, Human resource share
activities etc. Digital partnerships and innovations where digital, partnerships and global
information systems are managed and taken care of. Finance and corporate services department
where finance, its control, global estates, financial planning and analysis, etc. are managed and
coordinated. The corporate affairs department is responsible for equality, diversity, inclusion and
corporate governance. At last, the strategy and marketing department holds the responsibility of
brand and corporate identity, digital communication and marketing operations (Yang, 2018).
(Source: Tesco Organisational Structure, 2016)
Private Sector Organisations: The organisational structure of Tesco consists of 10
members. Its governance structure consists of five different committees that reports to Tesco
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Illustration 2: Tesco's organisational structure at regional level

PLC board. The organisational structure of Tesco is highly hierarchical that reflects the large size
of the business (Baker and Saren, 2016). There are many of the four layers of management even
at the store level in some large stores. The above chart showcases the organisational structure of
Tesco within superstore, metro and extra formats. The organisations head committee is Tesco
PLC Board which provides directions and instructions to audit committee, corporate
responsibility committee, nomination committee, disclosure committee, remuneration
committee. These are the top heads of the organisation that provides required directions and
guidelines about the ways in which it is going to be operated or handled. In its regional structure
Tesco's regional manager, store manager, food trading manager, non-food trading manager and
personnel managers are the ones handling operations and functioning. At last, these managers
provide direct instructions to the fresh and ambient section food managers, electrical and
clothing food managers, and personal assistants. This is the organisational or management
hierarchy of Tesco (Alserhan, 2017).
Organisational functions/departments
Public Organisations: The British council is includes a number of functional department
which ensure its better functioning and management (Lovelock and Patterson, 2015). These
departments include human resource, digital partnership and innovation, Finance and Corporate
services and Marketing and strategy, global network and arts. Below explained are the functions
of these departments and their interrelations:
Human Resource and Finance: Human resource department ensure effective
functioning of British Council by recruiting required employees and staff. Also, the department
ensure employees salaries, safety and security. The finance department of British Council is
responsible for managing its money and controlling its finances. The relationship of both of these
departments ensure better functioning of overall system. The human resource department of
British Council provides required employees to the finance department and provides them with
salaries and security. The finance department helps human resource department in preparing the
budget and auditing the departments costs and accounting. The human resource manager of the
British council with working in cooperation with finance manager ensures that the organisation
is achieving required goals and objectives and ensuring proper growth (Choi and Yeniyurt,
2015).
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Marketing and Innovation: The marketing department of British Council ensures
marketing by promotion and advertising. The innovation department ensures better innovation
and helps the organisation to succeed in the academic field. The marketing department with the
help of innovation department prepares the required promotions and advertisements for the
British council. The innovation department with the help of marketing department finds new
trends in the market and consumer department to innovate accordingly. Both marketing and
innovation heads work in a proper cooperation to achieve the organisations required goals and
objectives and achieving proper growth.
Global network and Arts: The global network department of British Council ensures that
the organisation is creating its networks globally. This is done by making agreements with
different governments, establishments etc. The Arts department ensure that best art practices are
taking place within the organisation and its culture. The global network department with the help
of Art department understands at what places the British Council with the help of English art is
able to make strong bonds and agreements with a variety of cultures. The art's department with
the help of global network understands a variety of cultures and brings new art in the
establishment. The heads of these departments organises meetings in order to understand and
implicate the required development and ensure organisational growth by achieving required
growth and objectives (Kumar and Steinmann, 2015).
Private Organisations: Tesco, on the other hand includes a variety of department that
ensures its better functioning and smooth operations. These departments are production, finance,
human resources, research and development, accounts, and Administration. Below explained are
these departments, their functioning and their interrelation in Tesco.
Production and Human Resource: The production department of Tesco ensures
production of its products and services. On the other hand, the human resource department
ensure better functioning of the overall organisational employees and their safety and security
and salary. The production department with the help of human resource department gets required
employees and personnel. The human resource department provides require salaries to the
production department employees and personnel. Their cooperation ensures better relationship
between the organisation core functions and makes sure operations are being achieved smoothly.
The production and human resource manager work together to ensure that the cooperation
between both of the departments is going on as required and there are not pitfalls that the
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department is facing (Smith, 2016). This helps the organisation to achieve required growth and
objectives.
Finance and Accounting: The finance department of the organisation ensures better
controlling over the organisational costs and finances. The finance department with the help of
accounting department ensures proper understanding of accounts of the organisation and its
processes. The accounting department with the help of finance department understands the
company costs and finances which are later used in the overall organisations accounting and
understanding of its assets and liabilities (Bianchi and Mathews, 2016). The heads of finance and
accounting department ensures that the organisation is achieving proper development and is
having its finances and account operations smoothly going to meet the organisation set goals and
objectives.
Research & Development and Administration: The Research & Development
department of Tesco ensures that the organisation is doing proper research and development in
order to produce products as per new trend and develop new required services. In collaboration
with administration the department ensures proper guidance of the new developments and their
safety and security (Wilson, 2018). The administration department also ensures proper provision
of the right paperwork required by the Research and development department and taking care of
their needs and requirements. The research and development and administration heads ensure
that proper cooperation has been going on within these two departments. This cooperation
ensures proper growth and development of the organisation. The department managers with
working closely ensures that the organisation is achieving required growth and development.
TASK 3
Impacts of macro environment on business operations
The impacts of macro environment on the businesses can make it both face losses or gain
good profitability. The macro environment includes factors such as Political, Economical, Social,
Technological, Ecological and Legal. In context of Tesco, it can be seen as the organisation is
very big and operates large business operations. Along with it, the organisation's operations are
widespread and needs to be in order with its betterment and success (Kuazaqui, 2015). Below
mentioned is the PESTLE analysis explaining both positive and negative impacts of macro
environment on business operations of Tesco:
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PESTLE analysis exploring the positive and negative impacts of macro environment on business
operations
Positive Negative
Political A supportive political environment
for Tesco make the organisation
work with better efficiency and
effectiveness. The organisation
working hand in hand with
government policies and regulations
makes required decisions which
serves it growth purpose well. For
example: In United Kingdom the
organisation is having a supportive
political environment which makes
the organisation easy to operate
without facing any governmental
problems (Kuazaqui, 2015).
The external factors such as political
impact its business operations at large
when political decision made by the
country's government in which the
organisation is serving into are not
favourable and supportive. This makes
the organisation hard to operate freely
and decreases its profitability too. For
Example: The government of Hungary
implies heavy taxes on products and
services of Tesco which makes it hard for
the organisation to earn profits in the
country and operate as per the set needs
and requirements.
Economical Economic factors such as rising
demands in products and services
due to favourable economy makes
the organisation earn better profits
and improves its business operations.
For Example: The favourable
economy of United Kingdom and
better consumer support makes the
organisation grow and flourish and
produce desired products and
services.
Economic Factors such as bad economy
and fluctuating currencies are another
factor that makes the organisation suffer
from better profitability and managing
smooth operations.
For Example: Countries such as India
and Pakistan have fluctuating currencies.
Tesco faces huge problems while selling
its products and services in these
countries. The company have to keep
changing products prices as per the
changing currencies in these
countries(Tan and Sousa, 2015).
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Social Tesco is having a good cultural
advantage in its home country United
Kingdom. This makes the
organisation to understand the needs
and demands of its people well and
effective and produce products and
services in that order. It saves Tesco
huge sum of expenses and adds more
profitability.
For Example: A good cultural
understanding of United Kingdom's
customers allows Tesco to innovate
the products accordingly and serve
the consumers are per their needs and
demands.
Social factors such as changing trends
and changing consumer demands make
Tesco keep innovating new products and
services to fulfil them. This makes the
organisation to invest huge sums of
money to innovate new products and
services.
For Example: The recent recession made
the company change its consumers needs
and demands entirely. The organisation
has to innovate new products accordingly
in order to serve these consumers. This
made the organisation to invest huge
sums of money in new innovations.
Technological Good technology used by the
organisation makes it produce and
sell its products faster. This makes
the organisation gain better market
advantage and increases smooth
production and sales.
For Example: New technology
makes it easy for Tesco to produce
and manufacture its products and
services easily. It makes the
organisation ensure fast deliveries
and consumer satisfaction.
Technological factors such as new
updates in technologies and arrival of
artificial intelligence makes the company
slow and back in its business operations
until the time it does not update itself
into new technology.
For Example: The arrival of artificial
intelligence is another important change
that Tesco has seen. It makes the
organisation to constantly update its
process to new AI and also make huge
investments.
Ecological Favourable climate makes the
organisation transport and send its
product from one place to another
Ecological factors such as bad climate
situations makes it hard for the company
to deliver products and services in its
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easily. This impact the organisation's
sales positively as consumers are
more attracted towards easy available
products.
For Example: In United Kingdom,
Tesco finds it easy to operate because
of favourable climate conditions.
Along with it, it makes the company
transport and deliver its products and
services well.
desired places smoothly and its impacts
is sales and consumer deliveries.
For Example: Countries such as Sweden
and Denmark have typical climates that
makes it hard for the company to operate
and transport its products and services. It
impacts the overall profitability and
growth of the company.
Legal Tesco in some countries is having
good legal boundaries where it has to
fill less taxes and is also having loose
legal implications. This makes the
company operate freely in selling its
products and services and having a
good consumer base along with
earning good profits.
For Example: In United Kingdom,
Tesco is having loose legal
implications where the organisation
is able to provide its products and
services easily.
Legal factors such as strict legal
implications and heavy taxes makes it
hard for the organisation to operate
smoothly and freely and input heavy
taxes that makes the organisation
profitability suffer and business
operations function slow.
For Example: Countries such as China
and Pakistan imply strict legal duties on
Tesco. It makes it hard for the
organisation to freely create an
environment where it can easily produce
or sell its products and services.
TASK 4
SWOT Analysis of Tesco
Strengths Weaknesses Opportunities Threats
The company has won
numerous awards for
The finance profit
levels of Tesco are
Tesco has seen huge
opportunities for
Labour threats are one
of the threats that the
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its shopping
experience, customer
service and retail
excellence (Kerrigan,
2017).
This has made the
consumers of its
competitors to shift
towards Tesco and has
increased its business
activities and has made
the organisation to
gather better Social
advantage. The
organisation is having
considerable brand
equity in its own name
with global recognition
in terms of service,
selection and quality.
This is making the
government of other
countries to allow
Tesco in their countries
without implying
strong implications and
has increased its
Political advantage.
impacted adversely
during credit crisis
and it is still requires
rebounding from this
global event. The
competitive pressures
have made the
organisation to face
price wars. Along
with it, Tesco is
highly dependant on
United Kingdom. The
credit crisis have
arrived from the
Economic
disadvantage of the
United Kingdom and
is impacting the
organisation's growth
and profit. Along with
it, strong competition
is another Economic
factor making the
company weak in
providing the best
performance.
strategic alliances with
other brands and
organisation. Also,
there's an opportunity
for the company in
private label market.
Also, in countries
where Tesco is
underperforming the
organisation is having
opportunities in
growing its business
with joint ventures.
With new
technological
developments the
company is thinking
about entering into
private label market.
This is where the
organisation is having
an opportunity to
flourish and make its
products and services
achieve growth and
success.
organisation is facing.
Tesco has seen rising
of its raw materials
cost which is
threatening the
organisation's
profitability and is
causing it to expand its
supplier network to get
better pricing on raw
materials purchase.
The legal implications
of Tesco is making the
organisation. Strict
legal implications in
some countries are the
reason for labour
threats where labours
are moving away from
the company and are
making the company
face growth and
profitability issues. It
is important for the
organisation to take
care of these threats in
order to improve its
organisational status.
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Critical Evaluation of the Impacts of both Macro and Micro environmental factors on business
objectives and decision making of the company
Below mentioned are the impacts of Micro and Macro environment on decision making
and business objectives of Tesco:
Micro environmental factors: The micro environmental factors of any business include
its customers, suppliers, competitors, shareholders, employees and media. During its decision
making the organisations managers and leaders have to understand about its customers
preferences, suppliers base, competitors advantage and growth opportunities in order to
successfully place the required strategies and developments. If not considered well this can make
the organisation face huge risks and develop issues which might make its growth suffer. It is
important for the organisations leaders and managers to take these things into consideration
before making any business related decisions (Rowley, 2016).
Macro environmental factors: The macro environment factors such as political,
economical, technological, social, ecological and legal factors are important before making any
business related decisions and achieving its growth and success. Political factors needed to be
considered when making any related decision towards achieving business objectives. If not
considered well this can make the organisations face issues such as lack of government support,
industry allowances etc. If economic factors are not considered well than it can make the
organisation face troubles related to currency and shareholder situations. Along with it, it can
make the organisation face issues such as lack on coordination between the stakeholders and
governments while achieving business objectives etc. It is important for the organisation to take
external or macro environmental factors into consideration before making any decisions.
CONCLUSION
The above report explores the importance of business and business environment in an
organisation. The report concludes and develops an understanding of different types of
organisations including public, private and voluntary. Brief evaluations have been made which
helps to understand their working, management and leadership practices. From the done
evaluation, it has been concluded that private and public organisations are large in context and
there's a chance that these organisations could be the clients of Yorkshire Bank. Later, the
functioning of public and private organisations are explained for an understanding their
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operations and functions along with departmental interrelations. It shows that various department
of an organisation needs to work together in order to achieve the required goals and objectives.
14

REFERENCES
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