Business Environment Analysis

This assignment requires a thorough analysis of the contemporary business environment. Students are expected to examine various aspects like globalization, cultural dimensions, technological advancements, social media's impact, and ethical considerations in business. The focus is on understanding how these factors influence business strategy and operations. The assignment also delves into sustainability concepts and their relevance in modern business practices.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purposes of organisations..................................................................1
P2 Size and scope of a range of different types of organisations...........................................3
TASK 2............................................................................................................................................5
P3 Relationship between organisational functions and how they link to organisational
objectives and structures.........................................................................................................5
TASK 3............................................................................................................................................8
P4 The positive and negative impacts that macro environment has upon business operations
with PESTEL..........................................................................................................................8
TASK 4............................................................................................................................................9
P5 Internal and external analysis of Barclays in order to identify their strengths and
weaknesses with SWOT analysis...........................................................................................9
P6 How strengths and weaknesses interrelate with external macro factors discussed above for
Barclays bank.......................................................................................................................11
Conclusion ....................................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment plays an important role in business activities and operations. The
introduction of business and business environment includes the different types and purposes of
organisations such as public, private and voluntary sectors as well as legal structures plus how
they link to business objectives and goals with services offered by Barclays bank. The size,
scope, range, legal structures and objectives of these organisations is also explained. The
relationship between different organisational function and their link to organisational structure
and objectives is also included. Macro environment impact upon business operations and
activities in both positive and negative terms is also included with the help of PESTLE model.
Internal and external analysis of Barclays organisation is also evaluated with the help of SWOT
analysis to identify the strengths and weaknesses effectively. Finally, the interrelationship
between external macro environmental factors and business strengths and weaknesses is also
justified to make an effective decision-making process within the firm.
TASK 1
P1 Different types and purposes of organisations
Organisations have different types such as sole trader, partnership, private, public and
voluntary. The purposes are also different for each of them. Organisations are group of people
who works together to accomplish the business objectives and goals. Private sector firms work
for making special profit to develop and improve their own business effectively. Public sector
firms’ operations and management are owned by government. On the other hand, voluntary
sector organisations are known by non-profit which is managed by both government and
individual charities (Belás, and et.al., 2014).
Sole trader: This type of business is managed by only one person that he is only one to operate
the business activities and operations. Sole traders usually earn less profit from their business
and he is responsible for the profits and losses. He has sources of funding with his savings, bank
loans and overdrafts plus profits.
Partnership: Partnership businesses are run by two or more than two people with common
objectives and goals. People in partnership firms can share their skills, knowledge and workload.
It also helps business to raise its capital and make it wider in the market. The profits and losses
are divided among the partners and each of them try to expand business effectively.
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Private organisation: These are the firms in which a person works for providing goods and
services to customers at a profit. Private business is in form of small or medium size which is
often run by a small group of workers or a family. Private limited firms have limited liabilities
and those shares which represent share percentage of ownership. Ordinary people are not able to
purchase the shares of private companies through the open market. These businesses are
restricted by laws and company rules. These companies are also flexible in nature that enterprise
blends elements of corporate and partnership structures effectively. Private companies work in a
legal framework which governs what they can do or cannot do. Private sector employees are
most of the workforce and activities managed by the owner to earn more profit effectively. These
sectors are wider in free economy countries and with more government authorities, the business
makes up most of the economy of respected country effectively (Cohen and Kietzmann, 2014).
Public sectors: Public firms are the part of economy concerned which provide different
governmental products and services effectively. It is a non-profit firm which provide services to
public such as health care, education, public transit, water supply, telecommunications etc.
Services provided by public firms is beneficial for the society and not for individuals who uses
the services. Organisations and businesses are not a part of private sector, it is composed of the
business sectors, which initially works for earning profits for their enterprise. The organisations
of the public sector take forms including production decisions considered by government, direct
funding of administration through taxation etc. Public sector levels are organised at three levels
which is national, federal and regional. Thus, public organisations provide essential services and
products for the society effectively and efficiently.
Voluntary sectors: Voluntary sectors includes different organisations such as business
community, voluntary bodies and charity. These organisations are basically non-profit
enterprises and non-governmental organisations, which works for providing services and
products to those who are not able to catch them (Hardy, and et.al., 2013). The business structure
of Barclays depends on different factors such as corporate social responsibility, market share and
profit effectively. Voluntary associations can be unincorporated or incorporated. It is also
defined as third sector in order to private and public-sector organisations. Voluntary sectors help
in the growth of economy with a growing number of non-profitable firms. These sectors are
made up of many categories of activity which affect the society aspects. The trade unions, public
arts organisation, community interest, voluntary organisation, general charities, social enterprise,
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faith groups, housing associations, mutual societies are the main elements of voluntary sectors
for public benefit.
P2 Size and scope of a range of different types of organisations
BASIS SOLE TRADER PARTNERSHIP PRIVATE
SECTOR
PUBLIC OR
VOLUNTARY
MEANING A business run
and managed by a
single person
Business managed
by two or more
than two people
Business which is
managed by a
group of people
Public or voluntary
sector is managed
by government
GOVERNME
NT ROLE
Not much
interruption of
government rules
UK partnership
act, 1980 involved
Rules, laws and
legislation of
government
involved
No specific statute
as it’s under the
government
authority
OWNER Single person
known as sole
proprietor
Business partners
are the real owners
Owner known as
business head
Owned by
government
MEMBERS Only one member Two or more than
two members
A number of
members involved
Many members or
can be add more
for development
LIABILITY Borne by the
trader only
(Weiss, 2014).
Shared between
partners
effectively
Liability owned by
business head or
departments head
Government
liabilities
DECISION
MAKING
Too quick Depend on
discussions
According to
situations but
delayed sometimes
Always standard
for taking actions
PROFIT AND
LOSS
Trader is
responsible for
profits and losses
Profit and loss
shared in agreed
ratio
Acquired by
business head
Government takes
the burden of
losses
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SIZE Small business Small or medium Large business
and activities
Large voluntary
sectors
SCOPE Limited scope or
depends on
market conditions
Scope depends on
partners durability
or working time
Large scope
towards market
and countries
Sufficient scope
for government
LEGAL
STRUCTURE
No specific rules
and regulations
Partnership 1980
and legalisation
Companies act
2006 is involved
with rules and
legalization
Authorities under
UK government
OBJECTIVES Earn profit and
manage business
Earning profits
and productivity
Profitability and
production
effectively
Provide products
and services to
societies.
SOLE PROPRIETORSHIP
Advantage
 Complete control upon business activities and decision making.
 No corporate tax payments.
 Minimum cost for establishing business and its requirements.
Disadvantages
 The only person liable for obligations and debts.
 Responsibilities and decisions fall on the shoulders of sole trader.
 Investment not provided easily (Fleischmann, and et.al., 2014).
PARTNERSHIP
Advantages
 Two or more than two partners involvement.
 Capital investment availability.
 Business affairs between partners are private.
Disadvantages
 Risk of disagreements and friction among partners.
 Partners liabilities for debts in business is unlimited.
 Each partner is liable for the action taken by other partner in partnership.
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PRIVATE SECTOR
Advantages
 Capital can be increased by selling shares of the company.
 Limited liabilities of members in the firm.
 Shares can be sold and bought with approval of director.
Disadvantages
 Professional help needed for business operations
 Annual audit and accounts are available for public inspection.
 Separation of ownership that decision making is no longer for owners.
PUBLIC SECTOR
Advantages
 Decisions are made up on full cost and involvement of benefits.
 Increase the economy activities (Ferraro and Briody, 2017).
 Ownership by government makes coordination and planning easy.
Disadvantages
 Large size of the business is difficult to manage and control.
 Low quality products with relatively high prices.
 Tax revenue uses to support them is a cost opportunity.
VOLUNTARY SECTOR
Advantages
 Labour force works for free of cost.
 Support from peoples to expand the sector.
 Plays a main role in economy development.
Disadvantages
 Training is missing that labours works according to their interests.
 Funding difficulties and personal difficulties.
 Lack of accountability and counselling.
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TASK 2
P3 Relationship between organisational functions and how they link to organisational objectives
and structures
FUNCTIONS OF BARCLAYS
Human resource department: Human resource department of Barclays is considered to
improve the effectiveness of human performance. This department plays an important role that it
improves the working capacity of employees and make them able to achieve their individual and
business goals effectively. Human resource manager has duty to complete the organisational
targets and goals such as resources requirements, selection of employees, analysing job
performance, loan and mortgage and other financial activities within Barclays effectively
(Tukker, and et.al., 2017).
Production function: Production function includes the services provided by Barclays in a
certain way. Production function such as service depends on some elements which is manpower,
material, money power and any many other facilities to operate the production process
effectively within Barclays. The responsibilities of production manager are to ensure the
availability of resources and requirement of employees and should meet the delivery dates on
times to perform all the operations in production process effectively.
Marketing function: Marketing is a function where customers of Barclays meets their demands
and wants according to their satisfaction. This process transfers the relationship and services
between customers and Barclays business effectively. Marketing function includes the
distribution, promotion, branding, services and publicity. It also helps business to increase its
profitability in terms of policies and procedures and to achieve business goals and objectives
effectively.
Finance function: Financial functions of Barclays is responsible for the decisions regarding the
investments, financial and budgeting of capital. Budgeting of capital includes the short and long-
term process also working and fixed conditions to take dividend decisions within business
effectively. Barclays also provide an intensive range of financial services which includes
commercial banking, investment banking and market personal financial services and other
financial products and services effectively and efficiently (Schaltegger, and et.al., 2017).
Business try to maintain their good relationship in financial markets which includes, institutions,
shareholders and borrowings to rise their capital and reduce the risk effectively.
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Information function: Barclays business collects the information about marketing, finance
production and human resources which is very important and crucial for them. In this modern
world, business cannot run without taking market information and positions. The main role of
collecting information is to make effective decisions and policies as well as strategies to execute
them for executives. Manager of Barclays collects information from market and make changes
accordingly to develop and improve the strategies and techniques effectively.
Innovation and research: Innovation is a crucial process where Barclays business try to
improve and develop their services, business practices, marketing procedures and external
relationship effectively. Research and innovation is important in this modern stage to compete
with others effectively and develop the products and service techniques efficiently. Innovation is
simulated by the client manager with his creative thoughts to improve the business position in
the market effectively. This will also help them to achieve the business objectives and goals
efficiently (Solomon, 2014).
The chart describes the organisational structure of Barclays business that it is managed
and directed by the managing director and other employees work under him such as marketing
director for managing marketing activities, finance director for managing financial activities,
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Illustration 1: Organisation charts
(Source: Organisation charts, 2017 )

operational director works for managing business operations and plans, human resource
management complete the business function process effectively. Sales team, account assistant
and production team members work under these four departments within Barclays to manage the
work given by them effectively and efficiently. This organisational chart helps business to
understand its activities and also to accomplish objectives and goals (Chang, 2016).
TASK 3
P4 The positive and negative impacts that macro environment has upon business operations with
PESTEL
PESTEL ANALYSIS FOR BARCLAYS
Political: Political factors are related to government policies which determine the changes and
new duties as well as taxes which affect the whole business or may change the price and services
offered by Barclays effectively. Such political changes by UK government also change the
business activities for Barclays that it can be positive or negative for the firm respectively.
According to the political changes business can change their plans and strategies to improve their
business activities and raise their profitability effectively and efficiently.
Economic: Factors of economic changes impact the business performance in long terms.
Economic changes also affect the business services and products effectively which further affect
the demand and supply as well as purchasing power of consumers. These economic changes
include interest rates, foreign rates and inflation rates etc. The changes in these rates affect the
business policies and strategies towards customers that they need to change their plans for
implementing new strategies in their policies. This can be positive or negative for the firm
Barclays.
Social: Social factors such as cultural trend, environment of social markets, demographics and
population analysis. Barclays has many branches across the country that it will be affected by the
countries culture as well as demographics of the respective country. During the holidays demand
will be increase due to the population increment that business should be ready for their plans and
policies to attract their customers effectively. Different countries play various roles in social
changes that business also need to make changes accordingly (Georgescu and Popescul, 2015).
Technological: Technology always changes with the modern world and innovative new
techniques that affect the business operations within Barclays. New techniques and innovative
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changes affect the business activities in both positive and negative way. The business should
adopt the latest techniques and changes to run with modern world and to improve its operational
activities. This will help firm to make new policies and plans to implement them accordingly and
effectively.
Legal: Legal factors have two sides: one is internal and second is external which impact the rules
and laws of the business effectively and also affect the business environment in a certain way.
Barclays business has many branches across the countries that it needs to maintain the rules, laws
and legalisation according to that country which will help it to manage its policies and plans
effectively and efficiently (Wheelen and Hunger, 2017).
Environmental: Environmental factors are the surrounding environment which affect the firm
by agriculture and tourism farming way effectively. Business should adopt the environmental
factors to make an effective working environment at work place. The business environment
factors include the analysis of geographical location, global changes, climate and weather offsets
effectively. This will help business to create a peaceful environment at workplace so that
employees can work freely and effectively.
Macro environment: Macro environmental factors are the major external factors which are
uncontrollable and influence the Barclays business decision making process. It also affects the
business strategies and plans as well as performance effectively. These factors are the economic
factors which includes legal, demographics, political, social and technologies changes and nature
force as well. Business should focus upon these factors to maintain a good environment and
activities at workplace. This will help business to grow its profitability and productivity
effectively and efficiently which will accomplish the goals and objectives respectively.
TASK 4
P5 Internal and external analysis of Barclays in order to identify their strengths and weaknesses
with SWOT analysis
SWOT ANALYSIS FOR BARCLAYS
Strengths: Barclays has around 4,400 offices worldwide and is the world’s leading and most
respected international bank. Barclays has been able to provide an intensive range of financial
services which includes commercial banking, investment banking and market personal financial
services and other financial products and services. The business philosophy of Barclays gives
importance to values and principles in all aspects of everyday living. The bank has also business
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units such as retail banking, contribution for overall growth and wealth management. It is the
first bank to launch its website in 1995. The bank has also good brand visibility with large
international network. There are more than 1,45,000 employees working with bank group and it
is also sponsored of major sporting events. It has operations in over fifty countries and around 48
million happy customers. Advertising and strong marketing boost the brand image and it has
most prominent sponsorship with Premier football league held in England.
Weaknesses: The bank needs the bailout while recently economy crises in UK. Some
controversies in Zimbabwe such as funding of government affected the brand image and
reputation of Barclays bank effectively. Some other factors also affected the image of bank such
as involvement with South Africa under the apartheid and accusations of laundering money etc.
such elements were the weaknesses for the bank that now, it is the most leading bank in the
world that functions effectively and efficiently (Neubauer and Lank, 2016).
Opportunities: Barclays bank is leading with its number of branches across the countries which
can help it to expand and grow its business opportunities in emerging economies. This is a very
huge opportunity for the bank that it can be more expanded and effectively find more
opportunities for the business activities. Earning urban youth is also looking for investment
options that the capital of bank can be increased more than before. Another opportunity for the
bank is to venture into online banking which can be easier for customers to operate the bank
activities and services effectively.
Threats: There are few threats in the bank that it is the largest bank with a number of branches
and employees working. It has a stringent economy policy over the world and the competitive
environment which is growing day by day can affect the business market shares effectively.
These are some threats which can affect the business activities and market share of the Barclays
bank. The bank can easily remove these threats from managing business operations well and
become the number one bank effectively and efficiently (Bocken, and et.al., 2014).
Competitors: In this modern world, competition is growing day by day that Barclays bank need
to consider its competitors and work according to the conditions which can help it to beat others
in the market effectively. The competitors for the bank at present are ABN AMRO, Goldman
Sachs Group, BNP Paribas, HSBC, Royal Bank of Scotland, JP Morgan and Chase, Wells Fargo,
UBS and Morgan Stanley. These are the tough competitors in the market for Barclays bank and
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it can beat these banks by managing day to day activities and operations of the business
effectively and efficiently.
These are the strengths, weaknesses, opportunities, threats and competitors for the
Barclays bank that from this analysis bank can find its strengths and weaknesses and work upon
it to be stronger than before. This will help business to expand its area and improve business
activities and operations which help it to achieve objectives and goals effectively and efficiently.
Business can adopt new and latest techniques as well as innovations which improve its sales rate
and satisfaction level (Dunning, 2014).
P6 How strengths and weaknesses interrelate with external macro factors discussed above for
Barclays bank
Strengths and weaknesses of Barclays bank is related with the macro and micro factors of
environment. Business management of Barclays bank can compare its strengths with the external
macro factors of environment which are technology, social, economic, cultural and political. This
will help firm to make strategies and plans as well as policies according to it which helps to
manage the business operation activities effectively. The changes in macro environment factors
will affect the process of decision making within the firm. The strengths and weaknesses
interrelated with macro environmental factors for Barclays bank is given below:
Economic factors: Economic factors such as interest rates, inflation rates and foreign rates
affect the business decision making process managed by management. These factors affect the
business operation and performance in long terms. It affects the services and products offered by
bank. These economic factors will not affect the price, policies and strengths of the business if it
is able to maintain its financial position strong. This will reduce the chances of affecting
economic factors and business can make its position sustainable and towards growth.
Political and legal factors: Political and legal factors can be determined if the UK government
changes its tax and duties. This will affect the whole business activities and operations within
bank managed by the management. The business can remove its weakness of political and legal
factors changes if it tries to maintain the laws and policies according to the UK government or
any other country where the branch of Barclays is established. The firm can make changes to its
policies, strategies and plans according to the government changes which will help it to manage
the policies and operations at work place effectively and efficiently.
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Social and cultural factors: Social and cultural factors include cultural trend, environment of
social markets, demographics and analysis of population. These factors affect the business in
both positive and negative manner that it depends on the firm to use these factors as their
strengths or weakness. The generation is changing and their demands are also changing with that,
business can expand its area through manage these factors positively. Thus, Barclays has many
branches across the countries as well as employees that it should manage the different culture,
trends and environment of countries which will help it to make effective decisions according to
the business situations effectively and efficiently (Zikmund, and et.al., 2013).
Technology factors: New and innovative techniques and technologies can also affect the
business in both positive or negative terms. The business should adopt the latest techniques for
its business operations which will help it to manage its profitability and production effectively.
Business can improve its strengths through new innovations and technologies which helps to
make effective decision making for the firm and management effectively and efficiently. This
will also help employees to work easy with the latest techniques and will increase the production
level which leads business towards achieving its objectives and goals effectively.
Environmental factors: Environmental factors such as agriculture, farming, tourism and
surrounding environment can affect business in both favourable and unfavourable way. It
depends on the business that how it adopts the environmental changes for improving its
strengths. Different countries have various environmental factors and business should try to
manage the surrounding environments effectively and efficiently. This will help business to
make effective decision making in environmental studies. Moreover, it will include the climate,
geographical location, weather and global changes which can affect the business. Barclays bank
can improve its strengths with improving these factors within the business environment
effectively and efficiently (Virglerová, Dobes and Vojtovic, 2016).
Thus, strengths and weaknesses interrelate with external macro environmental factors in a
certain way. The analysis of strengths and weaknesses will help business to adopt the macro
environmental factors from which it can capable of filling customers’ needs and deliver quality
service for them.
Conclusion
The present report analysed the different types of organisations such as sole trader,
partnership, private, public and voluntary sectors. There are advantages and disadvantages of the
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same that are also evaluated for the respective organisations with their size, scope, objectives and
legal structure to understand the different organisations’ policies and process. Along with this,
the relationship between various organisation functions and departments is also examined with
linking to their objectives and structure effectively. The impact of macro environmental factors is
also analysed with help of PESTEL analysis to find the strengths and weaknesses of Barclays
firm effectively. Finally, the SWOT for Barclays helps in identifying the threats, opportunities,
strengths, weaknesses and competitors which aids in improving its strengths and competency
level effectively. Moreover, the inter-relationship with macro environmental factors is also
evaluated to make an effective decision-making process for the firm.
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Weiss, J.W., 2014. Business ethics: A stakeholder and issues management approach. Berrett-
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