Understanding the Business Environment

This assignment delves into the multifaceted nature of the business environment. It examines various internal and external forces that influence business operations, including political, economic, social, technological, legal, and environmental factors (PESTLE analysis). The assignment requires students to analyze academic sources and understand concepts like product lifecycle management, law and ethics in business, sustainable development, and corporate social responsibility.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of organizations........................................................................1
P2 Size and scope of different types of enterprises.....................................................................3
TASK 2............................................................................................................................................5
P3 Relationship between organizational functions and its link with objectives and structure. . .5
TASK 3 & 4.....................................................................................................................................6
Covered in PPT...........................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Environment is a combination of all the resources which is used by industries for
accomplishing their business activities and operations. Business environment is a term describe
influence of micro and macro factors on functions of company due to their vital role played in it.
In fact it plays a very eminent role in success of an organization because it affects overall
decision making process of a company (Chavis, Klapper and Love, 2011). This report is mainly
classified into four different parts whose main motive is to highlight the importance of internal
and external factors in corporate world. NATWEST is a reputed bank which supports other
companies to operate properly and effectively by providing sufficient funds as well as financial
help. Furthermore, it also throw some lights on different types of organizations and its role
towards development and upliftment of entire society by conducting various programmes. Apart
from this macro and micro factors have negative as well as positive impact on corporate world
because of their roles and responsibilities towards economy development. At last, assignment is
going to identify the strength and weakness of environmental factors because it have a greater
impact on organization (Commander, and Svejnar, 2011).
TASK 1
P1 Different types and purpose of organizations
There are diverse firms having number of operations which prompt complete by them. As
some of them have a reason to create benefit though some work for society. There are generally
three noteworthy parts are distinguished in which entire business are beginning their exercises
appropriately which are: Public segment, Private division and Voluntary segment. Every one of
them have diverse reason for operations with each other. NATWEST give them credit to making
their administrations and products successful in nature and they can fulfils their clients
legitimately (Czinkota, Ronkainen and Moffett, 2011). An essential separation between each of
them is mentioned below:
Public sector Definitions :- These are such kind of elements or associations which
claimed by government only for the purpose to give administrations to
natives. Aside from these, there are a few number of associations are
additionally discovered who wind up plainly open segment organization
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with a reasonable goal is to find out benefit (Eckardt, 2012).
Purpose:- Just like voluntary segment, their thought process is not to
produce benefit but rather give satisfactory quality administrations to all
clients. A few case of these kind of division are: Electricity board,
Education in which government schools, postal administrations, police
administrations and so on. As their principle reason for existing is simply to
give benefits and stay away from any kind of bother to overall population.
MacDonald is a best case of public organization with an expect to boost
benefit.
Private Sector Definitions :-Organizations which totally keep running with help and
execution of a person who don't have any connection with government yet
take after every legitimate direction which outline by government or any
lawful body. The significant target is simply to produce increasingly benefit
for business (Eisenberg and Miller, 2012).
Reason:- These associations are totally unique in relation to public sector
organization and principle intention is simply to find out substantial
measure of income with the goal that they can support at advertise for long
term. There are different structures are discovered in private division which
are: Sole merchant, Partnership and so on. Sole broker is one which used to
work entire business by single individual as indicated by wish. Organization
firms are those which keep running by the at least two people. Starbucks is
an ideal case of private part organization (Fernando, 2011).
Voluntary Sector Definitions :- Associations which don't work business with a thought
process to produce benefit yet all they need is to give quality
administrations and ignore inconvenience to clients.
Reason:- The real motivation behind these voluntary affiliation is simply to
give suitable administrations to all individuals who live in the public arena
and upraise their living. As they support to such gatherings which have low
level of standard. Oxfam is one of a gathering which is an intentional
affiliation.
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In fact banks offers loans to only those firms which guaranteed them to return their
amount into given duration (Gecevska, and et. al., 2010). Thus companies which have capability
of generating maximum benefit can easily meet the debts and liabilities. Hence NATWEST is
one of biggest private sector bank which is situated with a coalition of national provincial bank
and Westminster bank. Main reason behind establishment of this bank is to provide sufficient
loans and mortgage to those enterprises who have the ability to return actual amount with set
interest. This bank may raise money only for private sector as compare with public and voluntary
segment because they deposit few thing as a security amount for example land and building,
jewellery, gold etc. because if an enterprise is failed to pay full amount then bank have full
authority to sale deposited security to recover their loan. Apart from this, sometime they also
raise money for private sector if government does not have sufficient fund because in that case
governing body have to pay loan (Halbert, and Ingulli, 2011).
P2 Size and scope of different types of enterprises
Each association is different in size and their extent of operation is additionally unique.
As they are performing and become expertise in their own field and that move toward becoming
solace level for them. Private area organizations have little and huge extension both and their
size can be little or huge (Halbert and Ingulli, 2011). Henceforth, these little and huge
associations are isolated into three fundamental classifications in an economy of a nation which
are: Micro, Small and Medium.
As per this, their operations to manage different client likewise get shift. NATWEST is a
bank who prompt give advances to every single part organization. Concerning this, they need to
give advance as indicated by size and extent of operation. This guide them in recuperation of
cash effectively with no kind of swindling or unsettling influence.
Company Size Scope
MacDonald It is a one of a biggest food chain
organisation at international level.
They are working their business around
everywhere throughout the global
market with more than 32 nations. As
their piece of the pie is around 49% with
Business degree is high as they are
enhancing their administrations and
nature of nourishment which signfies a
thought process to wind up plainly
most elevated gross creating benefit
organization than some other. Thus,
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a reasonable goal to become as a famous
restaurant as compare to other
(Hamilton and Webster, 2015).
their future degree is high when
contrasted with others which get
measure through addition in number of
clients regular.
Starbucks One of impressive and tasty coffee shop
than some other. Their size is
additionally immense and they are
working their business everywhere
throughout the world. As fluctuations in
nourishment items bolster them to be a
piece of Micro business classification in
which operations are occurring outside
of UK moreover (Harrison, 2011).
Scope is consider with respect to
future and long haul advantage.
Starbucks have an unmistakable
extension in which they need to
amplify their clients 5% when
contrasted with most recent couple of
years. Likewise with this, they turn out
to be expansive association which aid
them to produce more income.
Rolex One of a popular watch organization
with a reality that they are deliberate
affiliation and give the greater part of
their wage in philanthropy. As they are
an expansive association whose size is
extensive than some other.
Their future extension is simply to
expand productivity and proceed with
philanthropy so they can upraise
standard of society (PESTLE, 2017).
Austin
Fraser
Recruitment organization with a little
nature. They are useful in contributing
interior development of a nation.
Their scope is not all that high as they
have restricted nature of operation than
some other.
All the above enterprises maximize their capital from banks as per their nature and size of
operations but for this it is essential for them to deposit suitable security. In fact NATWEST
have make more strict rules and regulations by which they may recover their loan easily in a
minimum duration. Therefore the were trying to allocate proper fund to every sector with full
surety of return (Iskanius, Page and Anbuudayasankar, 2010).
MacDonald is a very famous enterprise and have a very well reputed image at a
marketplace due to which they can easily acquire loan for their business operations.
Additionally, risk of a company also get minimized because they don't want to influence their
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image. Moreover all the above companies are multinational and popular brands as compare with
Austin Fraser because this company is a small organization due to which NATWEST may
provide limited loans or as per requirement.
TASK 2
P3 Relationship between organizational functions and its link with objectives and structure
Each association have diverse reason which is related with their motivation of operation.
Consequently, their goals are unique and as their structure which take after for each
correspondence procedure likewise get fluctuate. NATWEST is an open restricted organization
who have a quality of more than 77000 workers (Jayeoba, 2012). As they give advances and
other office to numerous such organizations which require vast measure of reserve for venture
reason and making their operations powerful in nature.
Numerous extensive organizations whether they are relate with open division or private
part, take credit from NATWEST in connection to working their tasks legitimately. MacDonald
and Burger lord are two well known associations in the field of eatery who owe advance from
banks in their troublesome time. In that capacity sum is useful for them in making their
operations viable (Klapper, Lewin and Delgado, 2011).
Different association have distinctive reason behind working their work and they outline
destinations as indicated by reason. In addition, a very much characterized structure likewise
need to take after by them with the goal that they can work in sufficient way. Alongside this,
each worker end up noticeably ready to obliged with obligation and privileges of their own in
connection with substances.
As different association and their motivation are:
MacDonald:- Objectives:- A noteworthy goal of any association is simply to give proper quality
administration to client. MacDonald is gladly maintaining their business from 1974. As a
reasonable goal of an organization is to give nourishment of exclusive expectation quality
with brisk administrations so client don't prompt sit tight for more hours in submitting a
request and additionally estimation of cash to item which convey by organization
(Rankin, Windsor and Wahyuni, 2011).
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 Structure:- is characterize as a tie which need to take after by an association in learn and
keep up proper condition in business. MacDonald have an all around characterized
structure in which every single worker is very much aware about their obligation and
duty which need to satisfy. This guide them in mindful all representatives their obligation
and commitment.
Burger King:- Objectives:- are such plans which detail for here and now period which need to complete
in an all around characterized way. Organization need to convey best feast and
administrations to client without trading off with others (Siewiorek, and et. al., 2012).
 Structure:- An impeccable announcing relationship structure is take after by burger lord
which distinguish as by no trade off with arrangement or client fulfilment. As indicated
by this, administration end up noticeably ready to deliver just quality items which help
them in find out all fleeting targets and in addition long haul points of an organization.
NATWEST need to gauge destinations of their customers and connection them up with
SMART targets. As by considering this, organization can take proper choice that such
organizations truly require immense sum for speculation or not (business environment, 2017).
As there are different division are as of now working in an association who have diverse work. In
this way, they all require some cash to done their undertakings and errand in a fitting way. As
each office have their own connoted goals in which appropriate use of assets is consider as real
thing to complete. This guide them in oversee stream of back and cash which prompt get put
resources into various ventures and exercises which done by every division(Wetherly and Otter,
2014).
TASK 3 & 4
Covered in PPT
CONCLUSION
From the above report it can be summarized that internal and external environment have
a greater impact on success of entire organization due to its eminent role played in it.
NATWEST is a private owned bank which provide financial support to different organizations
on a specific interest rate or deposited something as a security amount. Main motive of this
assignment is to highlight the importance of micro and macro factors on business operations
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because all the essentials resources are acquired by environment only. Instead of all this it also
shows strength and weakness of laws which is enacted by governing bodies because every firm
is liable to follow rules amended by legitimate.
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REFERENCES
Books and Journals
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Czinkota, M., Ronkainen, I. A. and Moffett, M. H., 2011. International business. Wiley.
Eckardt, M., 2012. The European Private Company: Do we need another 28th private company
law form in the EU? On regulatory competition of corporate law.
Eisenberg, T. and Miller, G. P., 2012. The English versus the American rule on attorney fees: an
empirical study of public company contracts. Cornell L. Rev.. 98. p.327.
Fernando, A. C., 2011. Business environment. Pearson Education India.
Gecevska, V. and et. al., 2010. Product lifecycle management through innovative and
competitive business environment. Journal of Industrial Engineering and Management.
3(2). pp.323-336.
Halbert, T and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Harrison, R., 2011. Learning and development. Development and Learning in Organizations: An
International Journal. 26(1).
Iskanius, P., Page, T and Anbuudayasankar, S. P., 2010. The traditional industry sector in the
changing business environment–a case study of the Finnish steel product industry.
International Journal of Electronic Customer Relationship Management. 4(4). pp.395-
414.
Jayeoba, F. I., 2012. NEED-GOAL INTEGRATION AND ORGANISATIONAL TYPES;
IMPLICATION FOR INDUSTRIAL RELATIONS. European Scientific Journal. 8(19).
Klapper, L., Lewin, A. and Delgado, J. M. Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development. pp.
108-123. Palgrave Macmillan UK.
Rankin, M., Windsor, C. and Wahyuni, D., 2011. An investigation of voluntary corporate
greenhouse gas emissions reporting in a market governance system: Australian
evidence. Accounting, Auditing & Accountability Journal. 24(8). pp.1037-1070.
Siewiorek, A., and et. al., 2012. Learning leadership skills in a simulated business environment.
Computers & Education. 58(1). pp.121-135.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Wetherly, P. and Otter, D. eds., 2014. The business environment: themes and issues in a
globalizing world. Oxford University Press.
Online
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<http://www.investorwords.com/19252/business_environment.html>. [Accessed on 12th
September 2017].
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PESTLE. 2017. [Online]. Available through:<https://business-docs.co.uk/downloads/pestle-
product-strategy-template/>. [Accessed on 12th September 2017].
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