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Business and Business Environment Assignment - YORKSHIRE bank

   

Added on  2020-10-22

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BUSINESS AND THEBUSINESSENVIRONMENT

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3Diverse Kind of organizations ...................................................................................................3TASK 2............................................................................................................................................7Key business function and their inter-relation ..........................................................................7TASK 3..........................................................................................................................................11Pestle analysis of YORKSHIRE bank and its impact on organisation.....................................11TASK 4..........................................................................................................................................14Swot analysis of YORKSHIRE bank and their external relationship with macro factors.......14Explaining the interrelationship of the macro and micro factors that are affectingYORKSHIRE bank...................................................................................................................16CONCLUSION..............................................................................................................................16REFERENCES..............................................................................................................................17

INTRODUCTIONBusiness environment comprises all the internal and external factor that affect anorganization's function and decision making, directly and indirectly. Internal factor ismanageable by business where external factor is inevitable in nature. Manager can minimize thenegative affect of macro elements by taking precautionary measure and actions. YORKSHIREis a private bank which render all the financial and banking service like saving accounts facility,loans, insurance and mortgage credit card facility. Online, net, telephone, ATM and post officeservices also given by to its target customer.Present study will describe kind of organisation andinterrelation between various business units, which collectively aimed to achieve organisationgoal. Report will cover the knowledge of impact, that macro and micro factor put upon business.YORKSHIRE banks External (PESTLE) and internal (SWOT) will also be done.TASK 1Diverse Kind of organizations Organisations are dissimilar from each other because of their different structure, purpose,serving area, size, specialisation, environment, and culture. Public organisation Business entity which get its funding from government and operates by state are calledpublic organisations. Revenue of company's are generally invested for public welfare,infrastructure, and other capital project (Effiom, Kwabena and Precious,2015). Statutorycorporation come into existence by low enacted by parliament and state legislatures. They dealmajorly in primary sector.BBC is one of the largest public sector broadcast service provider inUK.Advantage Easy to get fund and finance as people trust government. Great opportunity for growth and expansion as it has government support and soundfinancial position.Disadvantage3

Business demand more legal compliance to follow as protection of shareholder also aprime concern.Company need to render high transparency in all the detail and information as its dataand reports as to put on public domain.Private company It covers all the Firm, whose prime concern is to get high profit and retain earning. It hasto register itself under The Companies Act 2006. It has to pay corporate on total income. This ismost popular business form currently uses in UK because in case of financial loss, repayment tocreditor is limited to company only. Members do not have to sell out their own asset for this.They are more interested in primary and tertiary economic pillars. Morrison supermarket plc is aprivate firm. Advantage of private organisation are, It has legal entity as it is register in companyact, which Added credibility. This creditworthiness helps in raise fund from capital and moneymarket. And its certain problems too which are Private business entities have to pay certainannual fees, which enhances the obligation burden in case of bad profits. Some businessactivities and operation render tax benefits and subject to comparatively lower corporation tax.Private organisation can be divided into two major categories on the basis of ownership as soleproprietor and partnership. Morrison supermarket plc is one of the large private organisation inUK.In sole proprietor, an individual can open its business, operates it's all activities by own orby employing people in firm. This individual is solely accountable to any kind of loss. It is notrequired to register personal business in company act, but it should have HMRC (Her Majesty'sRevenue and Customs) registration number for self Assessment along with national insurancenumber(NI). HMRC collects income tax on it's earning (Aryati and et.al., 2018.). Generally itworks in secondary (manufacturing, construction and engineering sector) and tertiary (education,business consultants, hospitality industry and computer programming services). Sole propertiesfirms Easy to start and operate. Easy to control, fast decision making and lower accounting costas one can maintain account by own without taking help of professionals. Problem in raise fundas larger lenders have lack of trust on these. It is considered as small and week establishmentbecause large company viewed as more credible and professional in approach. Tessa Scottrecently owned a cupcake business as individual business. 4

Partnership is same as sole proprietor but it has only difference that here two and morethan two people are owner of the firm. Profit being shared among these, which considerer astheir income. Each has to pay income tax on their income. Arrangement of capital are donethough self finance only (Besley, 2015). It also, divided into three kinds as 'ordinary, limited andlimited liability partnerships(LLP). These business works in secondary and tertiary sector. Theyalso, have partnership with government for primary sector activities (mining, agriculture,infrastructure and natural resources' industry). Render good decision making as brainstorming isperformed by more than one person. Business as a whole does not need to pay tax on its profit,as individual has to pay on their income. High potentiality to arrange money than individualbusiness with limited shared of profits. It has High chances of interpersonal conflicts which canlower the decision making speed. When a partner leave and join the company, valuation is doneagain and again. And, it a costly process. Jamie's Plumbing is partnership firm owned by Smithand Jamie Johnson. It renders plumping and kitchen, toilet fitting and repairing facility to itscustomer Voluntary organisation It's second name is community sector and third sector. These companies are neitherhaving profit generational objective nor they are funded by government. Also, they have lesscapital in hand (Kolk,2016). These firm render social care and welfare services like freeeducation, medical, law consultation. Charitable trust, foundations , NGO's, and cooperatives arecomes under this. Red Cross is one of the biggest voluntary firm in UK, which service medicalcare for free and required essential service like food, water, medicines, blood in emergencysituations.Advantage As it has volunteers in human capital and grants in material, organisation has less overhead charges.DisadvantageIt is difficult task to avail fund and volunteers to run business seamlessly. 5

There is direct relation can be seen in organisation objective, scope and size with its goal.When a business works for social causes it does not take make for growth and expansion, whichrequired less money requirements. It can manage its capital arrangements from grants anddonation. These companies do not take care about public money interest. Government givesoption to this voluntary organisation use minimum legal structure.A large size organisation need more money for working capital and growth andexpansion. In such case they will go for public offering (Lee and Klassen,2016). Governmentinstructs these organisations to follow well defined legal structure. Big size enterprises need widelegal structure as they have to control wider area of function and vice versa.Scope means business expansion, diversification and growth potentiality of firm, whichhighly depend on financial position. Week position is threatened to scope and vice versa. Legalstructure depends on size of the firm and pre decided legal compliance for company. Followingtable shows the objective, scope and legal structure complexity in three kinds of firms. Dimension PubicPrivateVoluntary ObjectiveBBC 's vision is committed tofulfil public value written onRoyal charter and agreement.It also tries to be most creativebroadcast service organisationin the world. Profit maximization andincrease business capacity.YORKSHIRE bank's Allbranches strive to render realvalue to customer, for theirrelation with bank. It alsodeigned various product as perthe need of customer to helpthem in saving. Social welfare and earnonly required money. Redcross's Fundamentalprinciple also convey itspurpose and vision, they are:voluntaryserviceimpartiality, independence,humanity, unity, andneutrality universality insociety.SizeLarge size organization whichrun its business In domesticcountry only. (BBC) but theseorganisations can furtherenlarge their size as well asproduct line, when it acquired They are Large size companywho also interested in set upthe business in multiplecountries(YORKSHIRE).There are small privatecompany are too, who perform Small and large sizeorganization like Red Crossand NHS. Though RedCross currently working in190 countries, whichremove the general6

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