Business Environment and Management

The provided document is a compilation of references related to business environment and management. It includes citations from several research papers and books on topics such as business ethics, compliance, and operations strategy. The references cover various aspects of business management, including employee competencies, retail firms in China, and naturalistic decision making. The document also provides information on e-commerce and business intelligence in enterprise computing environments.

Business and
business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Explain different types of businesses along with their legal structures................................1
P2. Explain size and scope of different types of business concerns...........................................3
TASK 2............................................................................................................................................5
P3. Relationship between different organisational functions and how they help in achieving
organisational objectives.............................................................................................................5
TASK 3............................................................................................................................................7
P4 Positive and negative impact of macro-environmental factors on business and its
operations....................................................................................................................................7
TASK 4 .........................................................................................................................................10
P5 Internal and External analysis of Yorkshire Bank to identify strength and weakness.........10
P6 Interrelation of strength and weaknesses of macro environment element on a company....11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment refers to a combination of all factors whether internal or external
which have a significant impact of business and its functioning. Business environment is a quite
vast term which employs all factors and forces that affect any business entity's capability for
developing and maintaining successful customer relationships. In present scenario, chosen
business entity is European Metal recycling. This business concern deals in supplying resources
by converting scrap metals into new innovative products (Crane and Matten, 2016). This
organisation is assumed to be a leader in scrap metal market. Furthermore, this company even
has fair chances of becoming client of Yorkshire bank. It has its operating office in England and
works for loans, mortgages and other key functions. It works as a trading division of Clydescale
Bank plc. This bank was founded in 1859 on May,1 and has its headquarters in Leeds, England.
This report focusses on various types of business concerns and their legal structure as well.
Interrelationship between various departments with their positive as well as negative impact has
also been mentioned in this report. Lastly, pestle analysis of Yorkshire bank has been conducted
in this report.
TASK 1
P1. Explain different types of businesses along with their legal structures.
Business environment is a sum total of all internal as well as external factors that affect functions
and working of a business concern. In today's world, there are are numerous organisations that
are present in competitive market. These organisations are further classified into 3 categories
namely public private and voluntary. All these different organisations are further classified as
under:
Private sector company
Business concerns that are owned and controlled by single or group of individuals are
known as private sector companies. These business concerns operate mainly with profit motive
and raising funds which help in enhancement of productivity level. Private sector business
concerns are further classified into 2 categories, sole proprietorship and partnership (Chetwood
and et. al, 2014). In present context, European metal recycling is the chosen business entity.
Purpose of private sector company: European metal recycling is a private sector firm
that deals in supplying iron related as well as non iron related goods and services. This is a
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global level business entity whose main aim is to convert scrap metals into useful products that
act as resources for people.
Legal structure: Legal structure of chosen business concern, European Metal Recycling
is exactly similar to a pyramid where business owners generally have a stable top level position.
This structure greatly helps managers in effective decision making and formulating essential key
policies . Managers further follow a vertical structure in their organisation. This can also be
called as a top down approach (Gharajedaghi, 2011).
Public sector company
Public sector business concerns are identities that are owned and controlled by
government bodies or officials. Public sector business concerns form an integral part of a
country's overall economy. These business concerns can further be classified as government
companies or departmental undertakings whose main aim is satisfying customer's needs. These
business concerns work for welfare of individuals rather than earning profits. In this report,
Crown prosecution services has been chosen.
Purpose of public sector company: Crown prosecution services is a law based firm
which is situated in Wales, England. This is public sector company provides legal advice to
inspectors as well as investigation agencies. This further leads to resolving issues in a more
significant way.
Legal structure: Crown prosecution services has around 6000 employees that are further
divided into 14 regional teams that work at prosecuting cases on a local level. All these 14
regional teams have a head chief crown prosecutor for each team. This type of legal structure
assists in effective decision making.
Voluntary business concerns
Voluntary business concerns are basically non profit business concerns which are set up
for welfare and development of society as a whole. Companies formed in this do not have a
profit motive rather deal in providing better services to individuals (Gilboy, 2016). In present
report, chosen organisation is Cancer Research which has its area of operations in UK.
Purpose of Voluntary organisations: Cancer Research is a UK based firm which aims at
keeping people healthy and fit. Main aim of Cancer Research is to control and prevent number of
deaths that occur in a year that may happen due to cancer and other deadly diseases. For this,
people working in this organisation undertake research techniques.
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Legal Structure Of Voluntary Organisation
Voluntary organisation legal structure consists of unincorporated association, trust,
community interest company, industrial and provident society.
(a) Association: This is most widely available form of unincorporated structure formed
by small and new groups in order to carry out all key association activities. These are
comparatively cheaper as compared to other business concerns.
(b) Trusts: This business is an incorporated structure and usually governed by trust
deed. It is usually formed by groups that does not require any membership structure (Li and et.
al., 2011).
P2. Explain size and scope of different types of business concerns.
Business environment is a sum total of all internal as well as external factors that affect
functioning of a business concern. In a business environment, there are numerous business
entities present which are public, private, voluntary and multinational business concerns. Size
and scope of all these business concerns is quite different from each other. This has further been
explained as under:
(a) Private organisation: A private business entity refers to any person, corporation or
agency which does not operate as a public body and also has a profit motive. Private sector
business concerns that companies that are run by single individuals. Main aim of private sector
business concerns is earning good amount of funds and enhancing its overall productivity level
as well. In present scenario, chosen private sector business entity is European metal recycling
which has its businesses operating in UK, US and Europe.
Background: European metal recycling is a private sector business concern which deals in
converting scrap into resources by recycling process (Meiners, Ringleb and Edwards,
2014). European metal recycling was originally established in 1994 in Warrington, UK
Products and services: In present context, European metal recycling offers various services
related to metal recycling services such as products that contain steel, cable granulation,
copper granules mixed with other metals and so on. They also deal in services where
scrap materials are further made usable by recycling process.
Size: European metal recycling firm operates on a large scale. It has around 180 offices
located worldwide and employees around 4500 and more people.
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Vision: Vision of European metal recycling is to be a global leader in scrap recycling
market.
Mission: Mission of European metal recycling is to become financially strong and
independent in global market. For this managers focus towards providing excellent
quality products to their overall clients.
Objectives: European Metal Recycling main objective is to find different ways to improve
and keeps on adding value and do right things for their employees, customer and
environment (Sekaran and Bougie, 2016).
Structure: European Metal Recycling has 1800 offices worldwide and it is one of the leading
and respected sector in United Kingdom. It operates on a formal organisation structure.
(b) Public organisation: Public sector business concerns refers to companies that are
owned, managed and controlled by government authorities or officials. Main aim of such
businesses is satisfying needs and wants of general public rather than profit maximisation. An
example of public company is Crown Prosecution Service which is involved in legal matters and
prosecution. Background: Crown prosecution services is a legal firm formed in 1986. It is a non
ministerial government business concern which has its headquarters in Petty France,
London. Around 6000 employees are currently working in Crown prosecution services. Products and services: Crown prosecution services is a legal firm which works at
providing legal advice to police department and other investigating agencies. Size: Crown prosecution is constantly increasing in size since last 33 years and has
around 6000 employees. Vision: Vision of Crown Prosecution Services is “ To provide excellent quality
services of prosecution by conducting research and investigation.” Mission: Mission of Crown Prosecution Services is “To work as an independent and
public agency.” Objectives: The main objective of Crown Prosecution Services is to provide services
that help in welfare and betterment of the society as a whole (Saleem, 2017).
 Structure: The chosen organisation Crown Prosecution Services is operating its
business activities with a flat organisational structure. It works in partnership with
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courts, home office, police, ministry of justice and various other agencies. Furthermore,
they also have a diverse workforce both nationally and locally.
(c) Voluntary organisation: Voluntary business concerns are brought into existence with
aim of fulfilling all necessary roles within a less restrictive market economy. These businesses
run with a non profit motive and for development of society. The chosen organisation here is
Cancer Research, UK which initiated its operations on 4th February, 2002. Their main motive is
to control increasing death causes due to cancer (Tayur, Ganeshan and Magazine, eds., 2012).
 Mission: Their main mission is to cure cancer by conductive effective research in order
to double survival rates.
 Vision: Their vision is to carry out world class research activities in institutes,
universities and hospitals with a motive to raise awareness about cancer.
 Products and services: They are protecting rights of cancer people for enhancement of
the nation.
 Size and Scope: It was established in 4th February, 2009 for generating awareness in
order to cure cancer. It is a national level organisation with thousands of employees who
work as volunteers.
 Objectives: Their main objectives is to conduct effective research in various institutions
for creating awareness about cancer.
 Structure: Cancer Research, UK works as a voluntary business concern and operates on a
global level. Structure followed by this business entity is flat organisation structure.
TASK 2
P3. Relationship between different organisational functions and how they help in achieving
organisational objectives.
Every business concern has various departments which are interlinked with each other.
All these departments help an organisation in operating smoothly and effectively. This further
leads to timely accomplishment of goals and objective within a set time frame (Vaiman,
Sigurjonsson and Davidsson, 2011). In present scenario, it is quite necessary for European Metal
Recycling to work effectively for further enhancement of their productivity as well as profit.
Relationship between various departments of European metal recycling has been explained in
detail as under:
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Marketing department: Marketing is an essential function of each and every business
entity. This forms a core function which exists at all levels and stages in an organisation.
Marketing function helps by promoting goods and services of a business concern. This function
also involves conducting a research for effectively analysing market situation. It helps in
attracting customers and enhancing productivity as well as profitability of a business concern
(Wack, 2017). Marketing department of European Metal Recycling should work in co-ordination
with other departments so that they can achieve stability and growth. By market analysis,
marketing department also sets deadlines for production departments as per customer's demands
and requirements.
(Source: Organisational Chart, 2019)
Human resource department: Human resource acts as lifeblood in every business
organisation. Main function of human resource department is putting right people at right jobs.
This department is known for its effectiveness in choosing right kind of employees at right
position. This further leads to growth and productivity of a business concern (Yu and
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Illustration 1: Organisational Chart

Ramanathan, 2013). In present scenario, HR department of European metal recycling is
interlinked with other departments such as finance. HR department provides technically skilled
employees to all other departments such as production and marketing with further helps in
forming effective strategies related to marketing and promotion. This helps in overall growth and
success of a firm.
Finance Department: Finance department of every business concern is responsible for
smooth flow of funds so that effective functioning can be ensured. Main work of finance
department is to check inflow and outflow of funds and resources. It is very important that
finance department of European Metal Recycling to have an interconnection with all other
departments for assessing financial needs of every department such as marketing department will
require funds for promotion and marketing of new products. Also, it ensures reduction of
wastage cost and leads to enhancement in profitability of a firm.
Hence, it has been noticed that all departments within an organisation should be co-
ordinated with each other so that they can maintain a sustainable position of a firm (Zeng, Li and
Duan, 2012). Furthermore, managers should also make effective plans and strategies that help in
overall growth and development. This acts as a two way benefit tool both for organisation and
for employees as well.
TASK 3
P4 Positive and negative impact of macro-environmental factors on business and its operations.
Business environment of a business concern is further classified into two categories
internal business environment and external business environment. In case of Yorkshire Bank, it
is important that managers should closely evaluate their internal as well as external factors so
that they can enhance satisfaction level of their customers and also expand their operating area.
PESTLE analysis of Yorkshire bank has been done as under:
Political factors: Political factors are essential factors that comprise of rules and
regulations that have been made by government or which get affected due to change in
government. In present context, it is essential that managers of Yorkshire bank should assess
laws made by government of UK and accordingly undertake decision making (Zsambok and
Klein eds., 2014).
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Positive impact: In case of UK, government is quite stable which becomes a positive
factor for businesses there. Stable political environment is useful for companies as they do not
face any unpleasant situation. Also it helps managers of Yorkshire bank in achieving a
competitive edge over other firms and enhance their market share.
Negative impact: Government policies and rules are quite strict for financial institutions
in UK. So, it is quite difficult for Yorkshire bank to operate as it is a financial institution. It has
been found that even a little difference from its working standards becomes difficult for bank and
hampers its image (Laudon and Traver, 2016).
Economic factors: Economic factors are basically money related factors. These factors
can affect business operations of firms both positively as well as negatively. Various key
examples of economic factors include consumer behaviour, interest rates etc.
Positive impact: There are stable borrowing and lending rates in banks in UK due to
stable market conditions. This helps Yorkshire bank in operating smoothly. In context of UK,
economic cop0ndition of people there is quite strong so they can buy luxury goods and services.
This enhances sales and profitability of businesses working in UK.
Negative impacts: A sudden economic crisis decreases buyer's purchasing power. This
greatly affects productivity and profitability rate of businesses running in UK. So, in it is advised
that managers of Yorkshire bank should decide its rates after careful assessment. This saves them
form any unforeseen losses (Crane and Matten, 2016).
Social factors: Factors that are affected by society are known as social factors. Some
examples of social factors include demographic classes, education level, culture etc. These
factors affect overall functioning of businesses.
Positive impact: Companies should always consider society and its cultural belief system
while making any policies or strategies. This will lead to enhancement of brand image of
businesses. In case of Yorkshire bank, managers should consider these factors for ensuring their
long term growth and sustainability.
Negative impact: Yorkshire bank has some statutes formed and it is compulsory that they
conduct CSR activities as laid down in statutes. If in any case, bank does not follow these CSR
activities it may even hamper their overall performance.
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Technological factors: Factors which are based on new and innovative technology and
its further use in Yorkshire bank are known as technological factors. These factors are assumed
to be externally generated changes in technological processes.
Positive impact: Technologies used by banks and financial institutions in UK are quite
advanced. This will help Yorkshire bank in increasing their quality of productions and
performance both nationally and globally.
Negative impact: Due to constantly changing scenario and technology, managers of
Yorkshire bank will have to invest a high amount of funds for upgrading their technology .
Furthermore, they will also have to develop an effective plan for the same (Sekaran and Bougie,
2016).
Environmental factors: Factors that deal with protection and safeguarding of
environment are known as environmental factors. All businesses run in environment so this
factor can affect any type of business whether small or big. Environmental factors in case of
Yorkshire bank include climate change, geographical change( location) and socio cultural
change.
Positive impact: In case of Yorkshire bank, managers follow an eco -friendly structure in
their organisation. This helps them in achieving a competitive edge over other financial business
concerns.
Negative impact: Change in geographical location of bank and changes in climate affects
performance of employees who are working in bank.
Legal factors: Every business should carefully analyse all legal factors such as employee
laws, import duty and so on. In context of Yorkshire bank it is important that managers follow all
rules and regulations that have been laid down by government of UK.
Positive impact: Following ethical code of conduct and rules laid down by government
will help Yorkshire bank in developing an effective and healthy work environment.
Negative impact: In case, managers of Yorkshire bank neglect any laws or do not make
amendments as per laws , they may have to face severe punishments such as penalties.
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TASK 4
P5 Internal and External analysis of Yorkshire Bank to identify strength and weakness.
Yorkshire Bank is a English bank, having head quarter in Leeds, England. It was founded
on 1st, May, 1859 by Colonel Edward Akroyd of Halifax. It basically operates in Northern
England, and now owned by Clydesdale Bank Plc. In early phase, it was firstly designed as
provident society, but then eventually chosen as saving bank profile. SWOT analysis id needed
to analyse the internal and external factors of Yorkshire Bank which can define their strengths
and weaknesses. SWOT for Yorkshire Bank is as follow :-
Strengths – Yorkshire Bank has taken some restructuring measure, which help them to make a
significant increase in their pre – tax earnings. They also were able to decrease their bad
debts and this help them to improve their asset's quality. Bank was able to make their
financial position stronger by increasing profit and reducing the underlying expenses. In
2004, Yorkshire Bank has won the awards of Money net award for it's excellent financial
management and control. Various services like personal, private and business services are
provided by bank for their customers. Under these services they provide loan, mortgages,
saving accounts, current account services, along with other facilities like wealth
management service and other also (Zsambok and Klein eds., 2014).
Weaknesses – The main weakness for Yorkshire Bank was cutting down jobs of man employees,
as this can cause to decrease in morale of remaining employees. This also can affect the
performance of employees and also cause to decrease in quality of services. The main focus
of bank is on providing loans and mortgage facilities, as if in future financial recovery get
slower in Europe, then it will affect the performance of the bank. Now a day's, bank is using
to shutting down their some branches across the city, this can lead to loss in confidence of
employees and customers over bank.
Opportunities – The bank have many opportunities which they can grab like, they can improve
their customer's experience by providing them better services and quality products. This also
help them to increase in numbers of customers. Yorkshire Bank can have opportunity to
increase in number of their branches in all over the Europe. This help to increase in number
of customers which can contact to them. Bank also can provide some attractive offers and
products for their current and new customers, like low rate of interest on loans and
mortgage, and also can provide high rate of return on their investments.
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Threats – There are many threats for Yorkshire Bank related to their competitors and
government policies. They have treat of increase in bad debts for their obligations towards
parties, in such conditions recovery is very difficult as the party get defaulted for bank. This
can affect the financial conditions of bank. They also risk of fluctuation in interest rate and
also change in policies of interest rate by government. This can lead them to a huge loss in
economical conditions. Change in foreign exchange rate can also affect the strategies and
financial conditions of bank.
P6 Interrelation of strength and weaknesses of macro environment element on a company.
Every business entity comprises of both internal as well as external market. All these
factors are expected to develop or hamper overall growth of a business concern. These factors
also face challenges which affect their profit position. It is always advised that managers should
assess strengths and weaknesses of their company so that they can deal with problems effectively
(Andersson, Forsgren and Holm, 2015). In relation to Yorkshire bank, managers mainly focus on
expanding their services and operations. Also, they wish to enhance satisfaction level of
customers . The inter relationship between strengths and weaknesses with macro environmental
factors have been mentioned below:
FACTORS STRENGTHS WEAKNESSES
Political Factors Business can expand their area of
operations effectively in
commercial sector as well.
This is promoted as there is no
or very little political
interference in financial sector
in UK. Government rules of
UK are such that they create a
pressure on banking sector for
modifications in lending and
interest rates as well.
Indulgence of political parties
in banking sector of UK is
quite high. This further
leads to creation of hurdles
in their operations.
Economical Factors Net income of Yorkshire bank is Quality of banking services in
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quite high which makes them
stand at an effective ranking
position in UK. This helps in
continuous growth of financial
position of Yorkshire . This
further serves as a motivating
tool for its employees.
Yorkshire bank can
decrease in situations of
economic crisis. Also,
major branches of
Yorkshire bank are located
in urban areas, so it is
advised that managers
should also expand there
area of operations in rural
sector as well.
Social Factors Banks can increase their area of
operations as they include
various geographical sectors
where they can be expanded.
Yorkshire bank can even
enhance their brand image by
considering various rules and
laws.
Brexit scepticism can hamper
the growth rate and
organisation functions in
all banking sectors of
United Kingdom.
Change in consumer
prescription related to
several banking schemes
can hamper Yorkshire
bank activities.
Technological Factors Banks should adopt advanced
technology such as digitization.
This will create a modification
in their area of services an
technology. In case of
Yorkshire bank, advancement
in networking system will be
greatly useful in both national
and global market.
Not every person is technically
skilled or have an
exposure to latest
technology which creates
an obstacle for Yorkshire
bank. Also, enhancement
in technology and
developing a networking
system will need excess
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amount of funds to be
invested by banks.
CONCLUSION
From the above discussed report, it has been concluded that business environment refers
to a sum total of all internal as well as external factors that affect with working. This report
consists of various macro environmental factors as well as their effect on business and its
growth. This report comprises of size scope and structure of various organisations that serve
people so that they can achieve competitive advantage. Along with all these key elements, inter
relationship between various organisational functions have been discussed here. Hence, to gain
more competitive advantage in marketplace it is essential for each and every business
organisations to evaluate all internal and external factors and then develop effective strategies to
achieve high growth and profitability.
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REFERENCES
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Business environment. 2018. [Online]. Available through:
<http://www.investorwords.com/19252/business_environment.html>.
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