Halifax Bank's Business Opportunities and Environmental Factors

The report examines the business environment of Halifax Bank in the UK, highlighting its efforts to expand globally and meet increasing customer demands. Additionally, it discusses the bank's commitment to reducing its carbon footprint and explores local environmental concerns such as air quality and natural habitats.

Business and Business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1 Different type of organization and their purpose..................................................................1
P2 Explain the size and scope of a range of Different types of organisations............................3
TASK 2............................................................................................................................................5
P3 Organization functions and their structure.............................................................................5
TASK 3............................................................................................................................................7
P4 Apply Pestle model analysis of macro environment ............................................................7
TASK 4..........................................................................................................................................10
P5. Internal and external analysis of Halifax Bank...................................................................10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is very important for every organization and it will affect their
internal and external factor. Internal factor is part of company that would be handle by the firm
in which External factor are also affecting the business but it can not be control by the company.
Business environment is affecting their social factor, Political, technological, legal, economic,
factor and In this report, it will analysis the whole macro organization in proper manner and it
will identify a different size of organization and scope of respective types of structure. In this
report, they are mainly focused on different type business operation that would be affecting the
Halifax bank, In UK, Business market has been changed and increasing the demand of customer
so the objective of macro organization to expanding their business in all over world (Boons,
2013). In this report, it will identify business process to understanding the requirement of
customer through which determine the impact on enterprise functions. Pestle analysis can be
analysis the business activity and it will determine that how these are affecting the environment
factor and it will identify their negative and positive impact on big environment such HaliFax
bank.
TASK 1
P.1 Different type of organization and their purpose
There are various type of organization and difference between this organization on the
basis of their role and purpose in business environment as follows:
Differences Public sector Private sector Non-governmental
sector
ownership This sector is basically
owned and there
funding is given by
government because
public sector are using
those people who has
own landmarks(Storey,
2016) . The Halifax
Private sector is that
when it is owned
company that has to
be controlled by
group of people and
business partner. This
sector is increasing
their profit rate. There
This sector is running
through people in
which there main aim
to increasing their
business for society. It
will rise their business
for human being. It is
very important
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bank is public sector
that are located in
United Kingdom.
are many private
companies to
expanding their
business in super
market. The aim to
enhancing their
business in all over
world (Cohen, 2014).
They earning a lot of
profit in market.
organization for
human to provides a
facility. It will
contribute some
money for human
welfare. There
objective to help for
those people who has
nothing. There is no
aim to increasing their
business and earning
profit in market.
Meaning This sector is share
their product in market
and there intention to
exploring product and
all people purchased
the item in general
eyes.
This sector is not like
public sector because
private organization
are selling their share
in market and earning
a profit through
shareholders. They
are increasing their
productivity in
internationally.
The non-governmental
organization is known
as voluntary sector
because this firm is not
registered and it is not
a part of other
company. This sector
has small area covers
because they are
helping to other people
and social community.
Main Objective The main objective of
public sector is to
increasing their
business and earning a
profitability in
marketplace (Welford,
2013). There are
The aim of private
organization to
expanding their
business in all over
world. They are only
focus on to earning a
profit with the help of
This sector is concern
about social welfare.
This sector is provides
the best services to
poor people and
welfare. They are
helping to Those
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various type of public
companies located in
United Kingdom. The
objective to provide the
best services to
customer and launch a
new product according
to customer
requirement.
shareholder. They are
selling their share in
marketplace. In this
sector, they will
distribute some part of
share in market and
reverse some portion.
people who has
insufficient money and
can not be effort. This
sector is not earning so
much profit through
market. They are
working for poor
people and
communities. For
Example- DCA and
EURAD are such
organization that only
working for people
welfare and society.
Visions The main vision of
public organization to
provide a safety for
people and best quality
of services. Halifax
bank is public sector
that would be provide a
facility such as
customer loan, security
locker, Interest,
Exchange currency etc.
The vision of this
private sector for
making a popular
brand in UK. It is
increasing their profit
rate in market because
they are expanding
their product in
marketplace. The
main concern is on
developed the
organization and
increasing their
profitability
(Wheelen, 2017).
The non-governmental
organization are those
companies that would
helpful for people. It is
not concern about
development of
business in which they
are only focus on
people welfare. There
are many organizations
in united kingdom to
provide facility for
people but it can not
take any charges.
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P2 Explain the size and scope of a range of Different types of organisations.
A group or structured set up of persons with the purpose for achieving the desired targets
and goals to become a successful entity is called Organisation. In the modern age of business
there are different type of organisation (Ferraro, 2017). Every organisation established for a
unique purpose and to deal with different needs and wants of the association within which they
operate. For differentiate among the various organisation the best technique is to analyse their
purpose and goals. In the types of organisation there are some organisations is operated for
earning profit and some for no earning profit. Those organisations established not for earning
profit are called non profit organization. However, here some type of organisation is stated to
understand and manage those :-
Not for profit organisation – this type of organisation are set up and operate for a purpose other
than that of a financial gain. These organisations are basically work for public benefits. It ignores
the earnings for private business owners. In these organisations such type of public works are
includes like charities and social enterprises. For these things they run their own business but
they never distribute their profits. Income generated from these organisations are used again in
those organisations for their growth and expansion of public services.
For Profit Organisation – any organisation that has been established for earning some profits and
their main objective is also generating profits for them is called for profit organisation. These
type of organisations are generally works in private sector (Savrul, 2014). It refers they owned
by individuals and private entities. The profit generated by them is usually distributed among
them and their owners.
Non Government Organisation – this is referred as NGOs, in these criteria any non profit
organisations which owned and operate by any state government or by the national government
or by both of them. These type includes Business Friendly International NGOs, Environmental
NGOs, International NGOs And Quasi Autonomous NGOs.
Sole Proprietorship – a person owned and operate individually and run with complete all legal
formalities' means registered his business separately is known as Sole Proprietorship. If, the
business owner do not fulfil the legal requirements than he would be liable for all aspects of the
business including finance.
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Partnerships – it is a business which is run by two or more than two parties. The relationship
among the parties is managed by a single deed that name is Partnership Deed (Bovée, 2013).
This Deed states all the business related things like profit sharing ratio, location, name etc.
Limited Companies – company is a group of person which is incorporated under any low of that
country regarding company and it is a separate legal entity. It has also a right to purchase and
hold any asset in their own name. It also incorporated and treat as legal person. It has two types -
1. Public Limited Companies – it is a company which is run and owned by those people who buy
its shares and they are right to operate this company. A PLC is free to sell their shares in public.
It has a big advantage of arranging the funds through from public. It has also a major issue that
cost of setting up of a public limited company is high.
2.Private Limited Companies – a private limited companies is restricted to issue their shares in
public. It is run by private authority. Its business is running by small number of shareholder.
Private company can not list in any stock exchange because it can not right of issue of its shares
in public. There is no need to add “limited” word in their name.
TASK 2
P3 Organization functions and their structure
Every company has different department and their functions are always separate
according to operations. Every business is required to planning a strategy for development so
that they can be plan according to size, structure and scope. It is very important part of
organization to enhance their idea for creating an effective quality of planning that would be
helpful for development. The structure is identified role of people and what type of operations
are needed (Virglerová, 2016). The most important thing to planning in very efficient ways that
helpful for company. The organizational structure is divided according to their functions are such
as Finance, marketing and Information technology etc.
There are different type of organization structure on the basis of their areas and scope as follows:
Functional Structure- this structure is divided according to their different role in
separate areas like information technology, Finance, marketing etc. In this structure, top most is
head of department that control the whole management system in very efficiently. They will
coordinate to other department through communication because they are interacted to each other
for business operation. In this structure, the employees are communicated with other people to
share their knowledge and skills (Niemann-Struweg, 2014). All people are operated separately
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and manage whole function areas. Most of the companies are using functional structure that
established a good relationship with other employee.
Divisional Structure-this structure can be coordination between employee and
management. They will conation many resources and their functions can be supported the
product details. In this way, they are offered many products in market of every region. They will
provide the better quality of product and its flexibility. In this structure, it can be divided into
geographic and product divisional structure are :
Product Department- divisional structure is established through product department that would
provide different type of product facility (Thill, and Bovée, 2013). This department is managed
by manager to control the product detail and collecting the record of purchased.
Geographic Department- It is divided through geographical department such as Latin America
division etc. this department determine a particular product in one region according to the
requirement of customer. It is based on geographical region to covers all areas in the world. The
customer demand has been changed so that they will provide a new product on their demand in
every region.
Matrix Structure- Matrix structure is that when they have many other people to coordinating a
department. It has line by line process when there are many employees and their different more
than boss. It is very complex structure but every efficient to achieve their goals and targets in
business process. This matrix has two individual perspectives is that when the common
organization will handle the product details and functions (Fleischmann,2014). Each product in
market has been managed by the management to control the whole process and their each
functionality.
In this way, they are increasing their productivity and provides product services in line by line.
They have so many benefits like enhanced profit, customers from every segments, development
of effectiveness and efficiency.
Global and Transnational, International organization structure- These structure has
some specific role that would be influence with market and profit. Global structure will cover all
areas and it can be manage the business process in world. Most of the companies are exploring
their business in other country. International structure is supported their import and export
business with the country is not taking any investment. Those companies are investment on their
business to other country and can be expanding enterprise range from other state to another. The
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transnational structure is very complex structure because they are investment the plan for foreign
custom.
Interrelationship between the objective and their function for organization-
Halifax Bank is very popular brand in UK that has some specific goals and objective of
organization. There are important functions are considered as following:
Marketing- It is very essential part of every organization to performing various functions. It is
important part for development and increasing business operation through marketing. It is the
best medium to exploring their product in market. Halifax Bank is always using this concept for
marketing this application on market (Jennings, 2014). They will provide many features related
internet banking, digital locking system, money transfer features etc.
TASK 3
P4 Apply Pestle model analysis of macro environment
Macro Environment: All those external factors that influence the business, strategies and
decision making of an organisation come under the macro environment. All the macro factors
should be assessed by the marketers to develop a sound marketing strategy. There are mainly 6
macro factors that influence the business positively and negatively, SWOT, POSTER'S 5
FORCES these are the strategic analysis tools to assess the macro environmental factors. The
main strategic analysis that is used here is PESTLE analysis tool (Bocken, 2014). Pestle analysis
is concept that are applicable in marketing planning and more over, the companies are launch a
new product in market so that they are using pestle analysis to increasing their quality of product.
It is a frame work to analysing the marketing strategies that would be directly effect
organization. There are different type of pestle analysis used in organization as following:
Political Factor- This factor is affect government policy, market instability because the rules
and regulation has been change according to government. They are planning new approaches for
business process so that legislation is essential for every enterprise to control the human right
policy. This is need of organization to change their business planning because market values is
change because companies are launch a new product in market in which customers are attracted
to this new product. The government has change their rule because the market demand has been
increasing. Government will change their environment law, tax policy etc. the company will use
this law for beneficial human being and it will adjust their marketing policy according to
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business requirement (Chang, 2016). It is very good to implement laws and rules and
government actions to keep an organisation under favourable control. These all factors are
responsible for the changes in the environment so the government goes on changing the rules and
regulations regarding environmental example subsides or low rate taxation is provided by the
government for the smooth running of the organisation so that good flow of business and money
can be taken place in the market. It is very good to implement laws and rules and government
actions to keep an organisation under favourable control. These all factors are responsible for the
changes in the environment so the government goes on changing the rules and regulations
regarding environmental example subsides or low rate taxation is provided by the government
for the smooth running of the organisation so that good flow of business and money can be taken
place in the market (Weiss, 2014). But on the other hand government is also allowing those
industries which are not beneficial for our environment like the establishment of the tobacco
companies. No doubt good amount of money is transferred to the government account through
taxation. The consumption of tobacco by the public is not healthy for them as well as for our
environment.
Economic Factor- This factor is affect the exchange rate and economic growth, rising prices,
income of consumer. These factor are demanding on management to deals with the country
economy. It will affect the macro and micro environment. Micro environment is that when the
peoples are spending their income. This factor is impact to the business and customer
relationship in the organization. The government are uses their expenditure and rate control that
would be control by government. Social factor are those factor that would be affect the whole
economic conditions of business. This factor is long term effect would be directly effect the
organization. The customer demand has been change. Changes in the economical condition is not
a big deal for the organisation as during the cycles of their financial year many fluctuations are
occurred include inflation rate, currencies rate etc. During the downturns of economy rate people
do not prefer to buy new cars, avoid building a new house due to increase in expanses rate. These
types of external activities of public influence the market of an organisation. Now the
organisation has to compromise on quality and brands in order to be in the market and they
decrease the prices of their products or goods (Weiss, 2014). This situation may be vice-versa as
the conditions come in favour of business.
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Social Factor- This factor is affect the social culture and that are share their content and
population. Social factor is based on their social culture in which it affects their market strategies
and career consciousness, population growth and their career attitude etc. these factors are
directly affect the product price and services. Social factors also include the cultural factors
where the customers of the organisation are targeted according to their pre fences, attitudes and
values. A business is run according to demand and supply of goods in the market so demand of
the public is one of the great factor for the desirable profit of business. Here a small example is
taken, the sell of woollen clothes and stuffs increased during winter season. This means there is
demand of woollen stuffs in the market(Boons, 2013). To full fill the demand, more and more
supply is done. This process causes the more benefits to the company. But a woollen company
has to bear loss in other seasons. This is how a business is influenced by this component.
Technological factor- these factor affect the innovation in technology because they will directly
affect the business operation and marketing strategies. Most of the companies are using modern
technology that would be affect the business activity. These companies are uses research
technique, automation in which it will directly affect because most of working is completed
through technology. They are various innovative and new technology evolving in the present
world. These technologies help each and every organization in improving their business
performance and achieving there organizational goals and objectives (Storey, 2016). These are
the factors that goes on changing bases on the current rely of the markets. Either there is change
in the technological products or process. The advancement in technology is being taken place
very rapidly to minimize the production costs and distribution cost but to increase the
productions rate.
For example a very current example can be taken, as in last few years a drastic advancement has
been taken place in Indian technological system. This is the reason every one has his own
individual mobile phone. The cell phone selling is increased very rapidly.
Legal factor – there are different types of laws and regulations which are imposed on every
organization, these laws affect the business activity and functions. The companies meets to
consider these laws while operating their business and operations. Avoiding these laws or
legislations may affect their functions negatively (Cohen, 2014). There are various type of law
which affect a business for example labour laws, safety standards, consumers laws and so on.
Legal factors can be changed by the order of courts for the welfare of people. Example of an
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Indian case is taken here “the Maggie issue” A report was being fired that Maggie contains silica
and Silica is not good for human health so the order was passed by court to ban the sell of
Maggie in the market.
TASK 4
P5. Internal and external analysis of Halifax Bank
Halifax is a British bank situated in UK operated as a trading division of Bank of Scotland. Its
named is because of a town which is located in West Yorkshire (Welford, 2013). Every business
gets affected from their external environmental factors and internal environment factors.
The internal and external environment identifies its business according to their needs and
knows about strengths, weaknesses etc through SWOT Analysis.
SWOT Analysis of Halifax Bank
Strengths:-
 Halifax is a commercial bank which is a leading and posses vast diversified business
based on its customer.
 It is UK based, big service provider of savings account, and residential mortgages loan.
 It is backed and control by a big financial strong parent company whose name is Lloyd
Banking Group.
 It facilitates the mode for sending and receiving money to abroad through its own
international payment services.
 It has vast range of portfolio their property for providing a strong financial position in all
economic environment.
 Halifax improved its operations and service department by the use of technology.
 It provides proper convenience of operation which related to online banking system.
 In this bank, it has various kinds of individual savings account to facilitate different
categories of savers. For example one for children, one for the junior etc. individual
savings account.
 It is the bank which provides its services like share dealing, loans, insurance, credit cards
and many more under big brand name “Lloyds”
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 It has different kinds of current and saving accounts which are suitable for those who are
in need of current account, reward account and ultimate reward current account.
Weaknesses:-
- Its major weakness is, it has some advertisement campaigns by its own that have an adverse
impact from its viewers.
 In 2008 when the financial crisis reached at high level it had some severe issues
regarding credit facility.
 It changed its overdraft related scheme in past previous years because it occurred too
many losses.
Opportunities:-
 It has many opportunities of expansion of its business.
 It is capable to expand through programs such as Cash Back Extras. It is a Cash Back
Debit Card Plan. It was launched recently.
 It can expand its target market of elder people through good services of wealth
maximisation schemes.
 This organisation has an opportunity related to expansion through acquisition of other
smaller banks and several insurance firms.
 This organisation has a big opportunity for joint ventures in their local banking industry.
Threats:-
 There are some slowdowns in economy so that the bank have a negative impact on its
business.
 There are also default risks in economy. From this reason there is a probability is that the
customers are not pay their loan and this is an adverse impact on its business
 In UK there is very high competition in banking sector market especially retail banking
 There is also a problem of raw materials because of raw material's prices are rise around
the world and it also reduces the consumer buying power.
P.6 Strengths and weaknesses interrelated with external macro factors
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Halifax is a UK based banking firm works under the Lloyds Banking Group. It facilitates
insurance and financial services to people of England, Wales and Scotland. According to
external macro environment of the Halifax bank, these factors are affect business of this bank.
Lloyds group known as safe planning business because when Barclays and Scotland (another
bank of same stage) are continued to in losses and mega restructuring in that time Lloyds has
relied on its optimum cost operating scheme to become the second largest banking group in UK
after HSBC.
Its micro and macro environment factors are related to its strengths and weaknesses.
Halifax bank compare its own strengths by macro environmental factors which are political,
social, economical, legal, technological and environmental (Wheelen, 2017). It also describes its
weaknesses according to these factors.
These macro environmental factors can affect the business as follows:-
1. Political Factors – In last decades there are a challenging political environment for many
banks situated in UK because of new regulatory capital related rules. These rules and
regulation must be followed by every bank especially for those banks who entitled in
international business. A special political issue is the continued demand for another
Scottish referendum in opposition to Brexit. In another side there are potential risks for
Lloyds Banking Group as well as other banks which are similar type of business, they are
related in Scotland like the Royal Bank of Scotland.
2. Social Factors – in this factor these things are includes like fashion, people's life style,
labour composition, social mobility and many other demographic trends. These things
have the potential threaten to either UK banks or avail opportunities to them (Ferraro,
2017). There are an ageing group of population comes with business opportunities for
many other organisations as pension age consumer earn and they have higher disposable
revenues. For Lloyds banking group, shift means a different drive for the savings, wealth
management and investment as a basic base line service.
3. Economical Factors – the economic uncertainty and risk is a significant challenge for
many banks including Lloyds banking group in UK. There are an agreement also made
between the Britain and other European Union for international agreement. It affects the
international business of Halifax and its potential implications of its business.
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4. Legal Factors – legal factors also affect every business environment. It also a big impact
on those businesses who is entitled in international business because this business
required to follow international rules and regulations for providing better services.
Halifax is an international banking business organisation so all legal requirements should
be follow by it. The legal actions seen that perhaps the last remnant of financial related
liabilities from the early crisis era.
5. Technological Factors – in the technological factor the banking industry will be grow up
very fast and reached at top level (Savrul, 2014). Digital technology will help for
evolution of banking industry. In this organisation technology perform a lead role to
increase profits and Lloyds banking group is perhaps better prepared to these market
situations than UK rivals. It has focussed on a multi channel and multi brand business
model in every time. It puts digital and mobile capabilities at the front.
6. Environmental Factors – low resource situation and the transition to a low carbon is
affect to the every sector of the economy. The major concerning topic is air quality,
natural habitats and flooding are the local environmental considerations. In this bank's
policies they committed to reducing its own carbon foot prints which is buying renewable
electricity and also they committed for low use of paper (Bovée, 2013). These are the
environmental factors are affect the macro environment of its business.
CONCLUSION
Form the above report is focus on business operation that would be affecting the Halifax
bank, In UK, Business market has been changed and increasing the demand of customer so the
objective of macro organization to expanding their business in all over world. As per the above
report is focus on business opportunities for many other organisations as pension age consumer
earn and they have higher disposable revenues. For Lloyds banking group, shift means a
different drive for the savings, wealth management and investment as a basic base line service.
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