Business Environment Analysis Report

The report analyzes the business environment, identifying strengths and weaknesses within the company. It also examines the impact of internal and external factors on decision-making processes. The report concludes by discussing the importance of considering these factors in organizational decision-making.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1 Different types and purposes of organisation....................................................................1
P2 Size and scope of a range of different types organisation.................................................2
M1...........................................................................................................................................3
LO2..................................................................................................................................................3
P3 Relationship between different organisational functions and how they inter relate with each
other........................................................................................................................................3
M2...........................................................................................................................................4
D1...........................................................................................................................................5
LO3..................................................................................................................................................5
P4 Positive and negative impact of macro environment upon business operations...............5
M3...........................................................................................................................................6
LO4..................................................................................................................................................7
P5 internal and external analysis ...........................................................................................7
P6 strength and weakness interrelate with external factors....................................................9
M4...........................................................................................................................................9
D2.........................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is a sum total of all the internal and external factors that can affect
the process of an enterprise. It is a collection of all the factors that can affect the over all
performance and sustainability of the business. YORKSHIRE BANK is one of the UK leading
and most respected bank in UK. This bank is providing an intensive range of financial services
such as- investment banking, commercial banking and market personal financial services. This
report discuses about the different types and purposes of organization with its size and scope.
The report also discusses about the relationship between organisation functions and their
interrelations in the enterprise. This report also identify the positive and negative impact of
macro environment on the business operations. The report further discusses about the internal
and external analysis of an organisation in order to identify strength and weakness.
P1 Different types and purposes of organisation
Different types of organisation can be described as the structures of the different has set with the
achieving specific goals and objectives.
Following are the clients of Yorkshire bank-
 Pentaland group
 HSBC holdings
 SAVE THE CHILDREN FUND
Private organisation- this type of organisation has set up with the primary purpose of
generating profits they also described as the for-profit organisation (Brewster, Mäkelä and
Suutari, 2019). These types of organisation usually operate in the private sector that shows that,
they have owned by an individual. These types of organisation are not regulated d by the state
government so the revenues generated by the private organisation is mostly reinvested into the
business to expand the business. The owner of company will invest the money to sustain and
distribute the profit among the shareholders. The operations of the private sectors can be based
ion various sectors such as- retail, fashion and food (Quinlan, Babin, Carr and Griffin, 2019).
Pentaland group is a small organisation of UK as well as it is a client of Yorkshire bank. It is UK
based private company which is involved in sports, outdoor, fashion market.

Public organisation- these types of organisations has set up with the purpose of financial
gain. These type of organisations are different from private organisation on the basis of their
prioritise of work. This types of organisations includes social enterprises and charities. Some of
them can include the business activities. Sum generated by these organisations usually used for
the charities and society. HSBC holdings is a public organisation as well as it is a client of
yorkshire bank. Irt is multinational banking services holding company. The profits of these
organisations never distributed among staff members. Public organisation usually generates
funding through investment, donations and sponsorships etc. these type of organisations operates
in educational and regional sector (Fatehi and Choi, 2019).
Sole trader- it is business which is controlled and owned by one person itself . The own
is one who takes every types of responsibility and decision that is related to business including
its profit and loss.
Advantages-
 Maximum privacy
 owner itself is a boss
 high level of privacy involved
disadvantages
 it will be hard to take holidays
 the life of business is quite limited
Partnership – the partnership from ownership suffers from certain limitation such as
limited resources, limited skills. Expansion in every business requires more capital and
managerial skills also involves more risk.
Advantages
 both the partners have greater borrowing capacity
 External regulation is limited.
Disadvantages
 Each partner is an agent and is also liable for every actions taken by other partners.
 The liability of partners of the business is unlimited
Voluntary sector- these are non- government organisations are commonly refers to as
NGO these types of organisation that operates independently from the state government. State

government also provides funds to operate NGO s. According to World Banks there are two
types of different groups of NGO and these are – Advocacy and operational.
Operational NGO work for the planning and development based projects. And advocacy NGO
are those which work to promote a specific cause. There is a charity trust in UK which is known
by SAVE THE CHILDREN FUND it is a client of Yorkshire bank. It promotes children rights ,
provide relief and helps supports children in developing countries (Contini, Annunziata, Rizzi
and Frey, 2019).
Advantages-:
 Restricted liability- it ensures the advantage of investors in the event that if organisation
will close because of the monetary emergency there many sources will be available there.
 Public organisations provides essential facilities such as- health, eduction facilities for
free.
Disadvantages-:
 Private companies cannot issue share to the public because of the law restrictions to a
limited no. of employees. That means they have limited to the amount of capital they can
not raise from the issue of share.
 Political pressure is the biggest disadvantage on public sector.
P2 Size and scope of a range of different types organisation.
Size and scope of organisations

Private organisation- these types of organisation have the simple management structure.
These types of organisations usually handle normal tasks which are manageable and limited.
Operations of the organisation are managed by the top level members such as- senior members
of their company. Employees of lower management are usually participated in the decision-
making process of the organisations. This Organisation has simple structure of information flow
to define the changes (Business and business environment. 2019). These types of organisations
prepare and generate few numbers of documents. Perntaland is a private ltd. Company it is an
organisation of 15,468 employees (Brewster, Mäkelä and Suutari, 2019).
 Informations require for small organization-
 Cash management
 daily updates
 cash management
Voluntary organisation – save the children is non government organisation which
promotes the children rights in developing countries. The organisation is providing their services
across the word in more than 120 countries. There are 29 other members of different nations who
are the members of save the children organisation.
Public organisation -These types of organisations are characterized by a large scale of
operations such as – no. of employees, public organisations requires for large no. or employees
for various functional units. Amount of turnover- these types of organisation have a big amount
of turnover of their product and services. They invest a lot of money behind the production and
sells. Number of branches- they keep many branches across the world. It is very necessary for
the large organisation to make their management structure flexible, management should have
strong control on their departments.
M1
1. Objectives of Yorkshire bank to expand their business in UK by providing the intensive
range of financial services to the customers and other financial products and services.
There re other various banks which are providing the same financial services but
Yorkshire bank is providing different services among all other banks. York shire is a
large Bank it has 4,400 offices across the word. Objective of this bank is to generate the
in terms to expand their business. Basic objective of all large organisation is profit
maximization and sales growth (Zhang, Chen, Lyytinen and Li, 2019).

LO2
P3 Relationship between different organisational functions and how they inter relate with each
other
Organisational structure of Peterland pvt. Ltd.
Company has a flat organisational structure with the fewer management levels. With each
level controlling a broad functional area. This type of organisational structure focuses on
empowering employees.
Organisational structure of HSBC holdings
Organisational structure of HSBC holdings- it is a public organisation that has tall
organisation structure because of the management levels. These types of organisational structure
have various departments with the large no. of employees.
1. Management - it is a primary role of a manager of Peterland to supervise another people.
Management is all about planning, organising, directing and controlling all the business
activities to reach out the future goals of an organisation. Public organisations have their
own recruitment policies
2. Operation department- this department is responsible to convert the inputs in outputs.
That means it converts the raw material into good and services. The operation manager of
HSBC HOLDING is responsible for activities of this department.
3. Marketing- it is a responsibility of this department to identify their customers, needs and
wants. This function also includes the promotional strategies and customer services
(Turner, 2019).
4. Accounting- this department has a responsibility to allocate capital to other functional
units for their activities. This department helps to provide the information regarding
budgets, costs, appraisals etc.
5. Finance- this department involve the planning and managing the funds.
Interrelationship of various departments
Human resource and finance department – Human resource department of Peterland
pvt. Ltd. Has responsibility of recruitment, selection, training and development of staff. To
conduct all these activities human resource department is depended upon the finance department
because all these activities take a lot of investments. Marketing department is also somewhere

depended upon the human resource management. Because this department has responsibility to
hire employees for various other departments. This department also responsible to conduct
training and development sessions to let employees know about their roles and responsibility in
organisation (Brewster, Mäkelä and Suutari, 2019).
Marketing and production department- this department includes many promotional
strategies of a product. By identifying the customers’ needs and wants this department can help
to production department of Peterland pvt. Ltd. So the company can produce their products
according to market demand.
Finance and other department- this department plays a very big role in any
organisation because it has a responsibility to allocate budgets for several departments. They
cannot perform any activities until finance department will not allocate their annual budgets
(Klepac and Berg, 2019). Finance department of HSBC will allocate the budgets to other
department for their various activities.
M2
Advantages-
First advantage is about the specialization because each department is created according
to specialization of employees. It is security of whichever task assigned to the department it can
be done in a professional manner for an example- If Yorkshire bank has no any IT department
and the bank is facing some problem related to IT, then the hole bank would have been confused
regarding how the problem will be solved.
Other advantage is, interrelations of various departments increase the efficiency and
speed of work because employees who are specialist likely to do their task more effectively
compare by a normal person.
Third benefit is about it enables management to work according functional units and
avoid the duplication of work. Management will assign the task accordion to functional
specialization. It will help to Yorkshire bank to work more effectively (Cruz and et.al., 2019).
Disadvantage-
The biggest disadvantage after the segregation of departments is employees has no any
scope to help and meet with the other department of employees. Another disadvantage is about
the lake of coordination in the case of some work requires the help of two department, work may
be delayed due to lake of coordination.

D1
One of the biggest complexities of inter relations of various departments it increases the
chance of conflicts among employees due to some reasons such as their ego, attitude and
designation. It is very necessary for functional units to carefully takes the decisions that should
not affect the other functional department (Kang, Burdon and Mooney, 2019).
Among all the functional units in the organisation and their impact on the business operation.
The report also concluded that the impact of internal and external analysis in terms of identifying
the strength and weakness of the company. This report further discussed about the impact of
factors on the decision making processes of organisation.
LO3
P4 Positive and negative impact of macro environment upon business operations
Impact of macro environment factors on business operations of Yorkshire Bank :
There are mainly two kinds of environment micro and macro both the factors can affect
the decision making process of Yorkshire bank. Following are the macro environment factors
and their positive and negative impact on the business-
Political factor- Political factors affecting the bank too much. As the change in
government this factor affected the bank. Every government have its different rules and
regulations and instability of government make impact directly on the organisation.
Positive impact- It is depended upon government how it creates policies in welfare of
bank as well as people. Good policies make positive impact on the bank.
Negative impact- If the new government change the policies which is not beneficial for
the bank such as change in interest rates, make bad impact on the bank.
Economic factor- this factor has a huge impact on the business operations of the
company. This factor can affect the production unit of the organisation and decision making
process of the customers. This factor includes the rate of inflation, GDP etc. if the economy state
of the country is strong that means this factor has a positive impact on the business operations of
Yorkshire Bank. If the economic condition of the country is poor it can be a cause of the loss of
business operations. So, this factor can affect both the sides to the Bank (Cruz and et.al., 2019).
Positive impact- Inflation rate and employment make positive impact on bank.
Negative impact- Bank size and GDP rate impacted in vegetative manner on the bank.

Social and culture factor- socio culture factor can affect the business of a company
because in any society, there are many demands' comes through people. Any factor of the
production process that is harmful for the society to show that organisation is taking social
responsibility. For an example- Yorkshire bank is being forced according to services ion terms to
become more friendly with environment.
Positive and negative impact- If the bank rules, interest rates, loan process are in favour
of people than it impact positively on the bank and other side if the bank can not stand upon the
demand of people than it will harm the bank.
Technological factor- this factor has mainly impact on the production department
because this factor includes material needs for the production and new technology.
Positive impact- Bank is performing their activities with the help of new technology it
will impact positively.
Negative impact- Yorkshire bank is not adopting the new technology in their business
processes it will impact negatively.
legal factor- this factor can affect the legal formalities of the business. This factor
includes all the business regulate policies. Change in business policies can affect the business
process. Either it can impact positively or negatively. Change in interest policies can make a
huge impact on the business of bank (Yousfi, Batoulis and Weske, 2019).
Positive impact- Bank has to follow all the rules and regulation which generate by
government so it can reduce the risk factor and impact positively on bank.\
Negative impact- Some laws such as employment low, pay scale laws, make impact
negatively on the bank.
Environmental factor- different types of market and companies are impacted by the
demographic factors. Lifestyle and educational level of a particular market segment can affect
the business operations.
Positive impact- If the people of country are well educated and their life style is modern
it can affect positively.
Negative impact- Loan and debt repayment influence in positive manner on the bank.
M3
PESTLE analysis of Yorkshire bank

Political factor- this factor has a huge effect on the Yorkshire bank to ban the donations
to political groups in an image clean over. This factor includes political stability, foregone trade
policies and laws which are affecting the performance of bank. Brexit union has created political
and business uncertainty for Yorkshire bank in different areas like – market access.
Economical factor- this factor includes inflations rate, exchange rates, interest rates and
unemployment rates. This factor has an direct impact on the banking process of Yorkshire bank.
The economic growth of a country remains sub- trends in market of Yorkshire bank since 2011
with mute outlook (Contini, Annunziata, Rizzi and Frey, 2019).
Social factors – this factor includes age distribution, growth rate of population, income
of the customers. Many communities have involved in the programs which addresses social
cohesion. The Yorkshire bank focuses on gender equality.
Technological factor- Yorkshire bank has an investment in many programs to prepare it
for data revolution. Bank has its personal data base system which is an integrated management
system of all functional units.
Legal factor- fine and penalty policies of Yorkshire bank impact the profitability of the
bank. This factor includes copyrights, patent laws and employment laws etc.
Environmental factor- Yorkshire bank is first bank to achieve the carbon neutrality.
Bank always takes initiatives in the environment programs and science based programs to target
the greenhouse emission. This factor includes climate change factors, scarcity of raw materials
etc.
P5 internal and external analysis
Yorkshire bank swot analysis
Strength
 This bank has global presence it helps to spread the risks and enjoy the economies of the
scale.
 Yorkshire bank is well established bank and it is continuously promoted trough
sponsorship of premier league golf.
 Yorkshire bank is associated with the innovations because it brought out first debit card
in 1977. And bank is organising several cashless and credit functions for the customers.
 Yorkshire bank has many branches across the world so the size of bank reduces the risks.
Weakness

 Yorkshire bank does not have any plan for dividends on its shares until 2008 it is making
them less attractive to share holders (Yousfi, Batoulis and Weske, 2019).
 Directors of Yorkshire bank has attracted unwanted attentions from commentators.
 The financial statement of bank is not meeting with its objectives.
 Business process and trisections needs an improvement.
 Yorkshire needs to be competitive by providing different services to the investors.
Opportunity
 Yorkshire bank has an opportunity to offer a full portfolio of their services to the
customers. This thing will be helpful to provide a large number of cross selling options.
 Nowadays Asia still considered as a big opportunity for the banking sector to expand
their business. Banking sector can set up their operations in different locations.
 In many countries provisions of welfare has decreased because the cost of government
and Yorkshire bank has self provision according to trends that should be utilise by the
bank.
 Yorkshire bank can use different marketing strategy to expand its business in different
countries by providing different services to the customers.
 Country of UK found the baking charges of the Yorkshire bank that were enforceable and
that need to be continued and enforce.
Threats
 Yorkshire ban has accused for making the loss making policies which is associated with
the other prime market. And it is big risk for the bank (Yousfi, Batoulis and Weske,
2019).
 While bank is providing the wide number of services to the customers, thereat can be
occur in the form of customers can prefers to go to the suppliers which is more effective
approach for them.
PESTLE analysis
Political factor- these factors can affect the business of Yorkshire bank by making the
tax policies, foreign trade policy, laws and trade restrictions. All these are the factors through
which Yorkshire bank can be affected.

Economic factor- economic factors include the inflation rate, exchange rate consumer
income and economic growth. This factor can affect in both the ways' positive and negative it
depends on the economic state of a country.
Social factor- social factor include the population trends. These factors will be helpful
for the marketers for targeting the customers by knowing their preferences. Customers thinking
can be change any time so it important to work according to their preferences (Kang, Burdon and
Mooney, 2019).
Technological factor- This factor can be used to perform business operations and
activities. This factor can affect the activities of production department.
Environmental factor- these factors can affect various ways such as lake of raw
material, change in weather awareness of green and carbon. All such things can affect the
business (Yousfi, Batoulis and Weske, 2019).
Legal factor- this factor includes laws, copyrights and safety laws. It is very essential for
the Yorkshire bank to follow the rules and regulation of every country in ethical manner.
P6 strength and weakness interrelate with external factors
Strength and weakness both are opposite factors from each other they can increase the
impact of external factors. It is very necessary for the Yorkshire bank to identify their strength
and weakness because it will be helpful for the bank while they will face external problems.
Political stability in country can also deal in favour of an organisation in developing strategies
related to their products sales and services. As the policies made by the government are highly
influencing business activities. On the other hand fluctuating political environment forces the
organisation to change as policies and processes to perform certain organisation activities which
is a major weakness for the company. By identifying the needs and wants of specific services of
the customers Yorkshire ban can deal with the socio culture factor. Bank is following the legal
formate of the government this strength will be helpful to deal with legal factor. With the help of
macro environment tool Yorkshire bank has find out the macro environment tla factors that
affecting both the sides such as- positively and negatively.
M4
SWOT analysis a tool to identifying the internal strength, weakness, opportunities and
threats of the company and TOWS analysis examines the external opportunities and threats by
compare them with other company's strength and weakness. Both the strategies plays a big role

in decision making process by identifying the strength weakness the listed bank can deal with
many problems they can take decisions easily.
D2
Macro and micro environment both are the factors of environmental scanning. Macro
environmental factors has such a big impact on the business operations. All these factors can
affect the future growth of the company.
CONCLUSION
From the above study it has been concluded that there are different types of organisation
structures according to their size and scope. The report also concluded that the interrelationship
among all the functional units in the organisation and their impact on the business operation. The
report also concluded that the impact of internal and external analysis in terms of identifying the
strength and weakness of the company. This report further discussed about the impact of factors
on the decision making processes of organisation.
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