Business and the Business Environment- Assignment

BUSINESS AND THE
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different types and purpose of organisations....................................................................1
P2 Size and Scope of different types of organisations...........................................................3
TASK 2 ...........................................................................................................................................5
P3 Relationship between different organisational functions and their link with organisational
objectives................................................................................................................................5
TASK 3 ...........................................................................................................................................8
P4 Positive and negative impact of macro-environmental factors on business operations....8
TASK 4..........................................................................................................................................10
P5 Internal and External analysis of specific organisation in order to identify strength and
weaknesses...........................................................................................................................10
P6 Interrelation of strength and weaknesses of macro environment element on a company11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................16

INTRODUCTION
Business environment is a combination of all individuals and various other factors which
affect overall business performance and it's sustainability (Crane and Matten, 2016). There are
several factors like suppliers, government, consumer group, competitors, economic conditions,
technology and various other institutions that affect functioning of business. . Present study has
been conducted on, European Metal Recycling which is engage in supplying of resources by
recycling scrap metal. This company is a World's leading metal recycler and offer their services
to local independent. This organisation can become client of Yorkshire Bank which operate
there functions as a loan, mortgage and other business services. According to scenario,
discussions have be made on different types of enterprises in London. This bank was established
in the year 1859 and headquarters in Leeds, England. This report defines overall scope of
organisation their interrelationship with other organisation department. Internal strength and
weakness of business and positive and negative impact of macro environment upon business
functions is discussed in this project. In addition to this, different types of organisation with their
legal structure are also examined.
TASK 1
P1 Different types and purpose of organisations
There are various organisations like public, private and voluntary that are established
with different aims and objectives (Gharajedaghi, 2011). All these organisations are divided into
various factors like size, scope, workers and company turnover. In this regard, three major
business structure are briefly described below:
PUBLIC ORGANISATION
Public organisation is an essential part of country economy and are controlled by central,
state and local government bodies (Vaiman, Sigurjonsson and Davidsson, 2011). There are
different types of public sector organisations like, departmental undertakings and government
companies that aims towards satisfying consumer demands. Companies in public sector mainly
focus on serving interests of general people rather than generating more profit. In this context,
chosen public organisation here is Crown Prosecution Service which is a public prosecution
agency.
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Purpose Public Organisation: Crown Prosecution Service organisation purpose is to
conduct criminal prosecutions in England and Wales. This organisation provides their services as
a legal adviser to police and other investigative agencies. This organisation functions their
activities in Secondary sector as they take raw information that are generated by police and then
advise them further (Yu, and Ramanathan, 2013).
Legal Structure of Public Organisation:
Legal structure of crown prosecution services is of higher level. In their organisations all
process of examining police evidence and decide where to take criminal proceedings are done
by few people who occupy next tier hierarchy. In this organisation few number of superiors
exist. It helps in making effective decisions and formulate plans accordingly (Meiners, and
Edwards, 2014). This methods is suitable to communicate and share task effectively in order to
generate efficient results..
PRIVATE ORGANISATION
Organisations that are comprised in this sector are owned and controlled by individuals
and groups (Chetwood, 2014). Companies in this sector mainly run their business functions to
make profit and raise funds. Some examples of private sector business are sole traders,
partnerships and franchises. In context with this, company which is chosen here is European
Metal Recycling which deals in providing ferrous and non-ferrous metal recycling services.
Purpose of Private Organisation: European Metal Recycling limited is global leading
metal recyclers, they provide total waste management by converting scrap metals into best
effective products and services. Main purpose of this organisation is to save environment by
providing effective environmental consultancy through services provided by them.
Legal Structure of Private Organisation:
Legal structure of European Recycling is in which business owner occupy top position
and their structure is like pyramid. In this structure top executives have highest position and
middle level manager have mid position. In European recycling their managers take effective
decisions and then formulate appropriate strategies. In this organisation vertical chain of
structure follows which help to effectively communicate plans and policies..
Voluntary Organisation
These are non-profit organisation that are mainly established to deliver welfare services
to local communities (Gharajedaghi, 2011). Companies in these sectors did not work to generate
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profit but to provide basic necessities services to populations. In this context, organisation
chosen here is Oxfam , which is an charitable organisation and aims to alleviate global poverty.
Purpose of Voluntary Organisation: Main purpose of Oxfam, is to erase global
poverty. This organisation provide relief to people who are facing poverty and injustice. They
provide various tools to people and help them to become self- supporting (Zsambok and Klein,
2014). They perform their functions in primary sector as they gather raw material like food
products and clothes, pack them and deliver it to people who are in need.
Legal Structure Of Voluntary Organisation:
Voluntary organisation legal structure consists of unincorporated association, trust,
community interest company, industrial and provident society.
A trust:
In a trust people work in order to manage and provide effective fund to do welfare of a
community. In this trustees are the person who are liable for contract that are set on the behalf of
trust.
An Unincorporated association:
It is a collection if individual in this there are no such legal existence. All legal
proceeding that are taken are basically on the behalf of groups.
P2 Size and Scope of different types of organisations
Business environment is sum total of internal and external forces that influence
functioning of business structure. Different dimensions of a business organisation are depended
on different factors (Gilboy, 2016). Every organisation has different size, scope and structure
and have certain purpose to accomplish their goals and objectives. Structure of different
organisations are briefly described below:
a) Private Organisation: These organisations are owned and controlled by individuals or
group of individuals and aims towards achieving high profit. They deliver products and services
by evaluating consumer needs and requirements. In relation to this, European Metal Recycling is
being chosen over here in private sector.
 Background: European Metal Recycling Limited was previously known as Nobledrift
Limited. They changed their name to European Metal Recycling in the year 1994. This
company was originally incorporated in 1994 and are Warrington United Kingdom based
organisation.
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 Product and Services: European Metal Recycling limited offer metal recycling services
like, products related to steel, cable granulation and mixed copper granules. They provide
services related to turning of scrap into best recycled products (Türetken, 2011).
 Size: Company is having wide area of servicing and employs approximately 4500 people
at 180 geographical locations across the globe.
 Vision: European Metal Recycling vision at recycling scrap metal to preserve and supply
resources.
 Mission: Company have remarkable mission that is to provide best quality recycle
products and become most reliable and financially strong market leader. They have
magnificent thought that is to grow even in extreme difficult economic situations and
keeps on saving environment by providing effective corporate social responsibility.
 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.
 Structure: European Metal Recycling has 1800 offices worldwide and it is one of the
leading and respected sector in United Kingdom.
b) Public Organisation: Public sector organisations are owned and controlled by central, state
or local government (Yu, and Ramanathan, 2013). They provide their services in order to satisfy
consumer needs in effective manner. Crown Prosecution Service organisation is a principle
public prosecution agency. They conduct criminal prosecutions in Wales and England.
 Background: In the year 1962 Royal Commission to set up independent prosecution
department to avoid same officer to invest and prosecute cases. So in 1986 Crown
Prosecution Service established and starts operating their functions as a legal adviser.
 Products and Services: They deliver legal advice to police and other investigative
agencies.
 Size: Company manages more than 800,000 prosecution and have ample of 6,900 staff
and 2,900 solicitors and barristers.
 Vision: Crown Prosecution vision is to be independent and fair. They respect their
colleagues and public and set their clear standards about services.
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 Mission: Mission of this organisation is to behave professionally and strive for
excellence.
 Objectives: Main objective of this organisation is to work as one team and seek new and
better modes to deliver effective services to public.
 Structure: Crown prosecution works in partnership with courts, home office, police,
ministry of justice and various other agencies. In addition to this they have diverse
workforce locally and nationally.
c) Voluntary Organisation: These are non-profit organisation that are mainly established for
society welfare. In relation with this, Oxfam is chosen over here in Voluntary organisation. Mission: Oxfam mission is to tackle and challenge root of poverty causes and create
various solutions for the same. Vision: Oxfam vision is “ World without poverty”. They aim to enhance effectiveness of
locals by assisting them to develop their structures. Products and Services: Organisation mainly focus on development work and
humanitarian work. They perform activities by providing medical care and ventures to
benefit locals. Size and Scope: Oxfam is mainly a confederation of 20 independent charitable
organisations that focuses on eradicating poverty and provide extensive services to locals
worldwide.
 Objectives: Organisation most important objective is to eradicate poverty globally and
bring moment for change and empower people in order to make them self dependent.
TASK 2
P3 Relationship between different organisational functions and their link with organisational
objectives
Every organisation has separate department who perform their business functions
effectively (Zeng and Duan, 2012). Despite of having different functions purpose of all these
departments are same that is, to achieve growth and increase sustainability and profitability of
business unit. It is bit easier to establish any business, but it is much tougher to maintain its
sustainability. In this regard, it is important for chosen organisation European Metal Recycling
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to perform their business functions like finance, marketing and human resource effectively to
increase their profit. Relationship between different organisational functions in European Metal
Recycling are mentioned below:
(Source: Organisational Chart, 2019)
Marketing Department: Marketing is related to conducting research and promote goods
and services in a marketplace. Marketing includes promoting goods and services in a
marketplace in order to attract attention of consumer and increase profitability of a company. It is
essential for marketing manager to implement extensive techniques and formulate appropriate
plan. This will benefit employees in marketing department to conduct their research in effective
manner. It is important for European Metal Recycling marketing department to perform their
functions closely with other department to ensure stability in business operations (Türetken,
2011). For instance, in this organisation marketing department need to perform their activities
relatively with production department in order to make sure that effective research is planned
accordingly to satisfy present and future consumer needs. Marketing department can set
deadlines so they can get finished products as soon as possible to gain competitive advantages.
Human Resource Department: Human resource deals in recruiting right candidates for
right job. Human resource department is a backbone of every organisation as it provides
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Illustration 1: Organisational Chart

effective employees which is the key source of company growth and productivity. In relation
with this, European Metal Recycling human resource department is inter related with other
department to ensure growth and stability. For example, HR department helps marketing team to
find out various tactic in branding and promoting. They help production department in order to
come up with innovative and new products ideas and set effective production targets. This will
benefit organisation to increase their quality of products (Türetken, 2011).
Finance Department: Major function of finance department is to provide financial
security and stability to business organisation. Finance department is known as blood of any
organisation to operate their business activities smoothly. In relation with this, it is essential for
European Metal Recycling finance department to closely relate with other departments in order
to find out any kind of budget and financial need related to promotion, research and distribution.
For instance, finance department in this organisation is inter related with marketing department
to examine funds required by them to perform their branding and promotional activities (Saleem,
2017). They also need to ensure that all departments in the organisation perform their work
within allocated budget. This will reduce wastage of unnecessary cost and firmly promotes
organisational profitability.
Hence, in order to maintain effective sustainability and create proper working chain in a
company business structure it is essential for managers to evaluate and make appropriate plans. It
is also necessary for them to formulate and examine needs and wants of every department. Thus,
by keeping an update about each and every requirement of different department prevailing in
organisation management can ensure their remarkable productivity and growth (Wack, 2017).
This will not only benefit organisation to increase their profitability but also help employees to
enhance their job performance.
In Crown Prosecution Service horizontal structure are follow by their management (Yu,
and Ramanathan, 2013). In this structure top level executives are on higher authority and mid
level executives are on middle level. In European Metal Recycling their management follow
vertical structure in which top position is taken by higher one. In addition to this, there structure
are of pyramid form that facilitates effective communications and efficient decision making
power.
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TASK 3
P4 Positive and negative impact of macro-environmental factors on business operations
In order to satisfy consumers and expand area of services it is essential for Yorkshire
Bank to determine their internal and external factors. Evaluation can be done with the help of
PESTLE that are firmly described below:
POLITICAL FACTORS: Political factors includes rules and regulations made by government.
It is essential for managers to address various laws made by UK government and make decisions
that are in accordance with country's rules and regulations (Zsambok and Klein, 2014).
Positive Impact: The government of UK is stable. This reflects that the companies
operating in UK benefit from the uniform policies and laws of country. Yorkshire Bank can take
advantage of stable political conditions to gain high competitive stake in marketplace.
Negative Impact: Being a financial institution, government regulations are very strict
with respect to the financial activities that take place within Yorkshire Bank. Thus, even a slight
variance in desirable and actual working manner becomes harmful for the bank.
ECONOMIC FACTORS: Economic factor can help or hinder business organisations to
achieve their objectives. Consumer behaviour, banking, employment factors and interest’s rates
are some of the economic factor that affect business functioning of companies in United
Kingdom.
Positive Impacts: UK government have stable conditions which results in effective
borrowing and lending rates. This will benefit Yorkshire bank to perform their functions
smoothly. This country is economically strong and people have balanced standard of living then
it will make population to buy various goods and services. This will automatically increase
company sale and comparatively results in enhancing their profitability (Türetken, 2011).
Negative Impacts: Economic crises and decrease in buyer’s power of purchasing results
in adversely affect in business productivity rate. So, to deal with this, Yorkshire bank should
accordingly decide its rates.
SOCIAL FACTORS: Social factors can impact on overall business functioning. Some of these
factors are, economic, environmental, technological, legal and ethical.
Positive Impact: By taking care of society cultural belief system and their customers,
company can increase their brand image. Also, by adopting ethical practices, Yorkshire bank can
ensure its sustainability in long run.
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Negative Impact: Being a financial institution, it is required that Yorkshire bank indulge
in CSR activities as required by statute. If in future bank doesn't follow CSR activities then it
results them in a negative way (Zsambok, 2014).
TECHNOLOGICAL FACTORS: These are externally generated changes in the area of
technological process. Technological factors can negatively or positively affect business function
(Meiners and Edwards, 2014).
Positive Impact: With rapid advancements in technology in UK, Yorkshire bank can
increase their quality of productions and functions nationally and globally.
Negative Impact: As technology is dynamically changing in current scenario. So, in
order to implement various new technology lot of cost is required by organisation. So to deal
with this, company should prepare an action plan or a budget.
ENVIRONMENTAL FACTORS: This factor can affect any type of business whether it is
small and big operating business unit. This factor can collectively impact on functioning of
business. Environmental factors include risk in climate change, geographical change in location
and socio culture change.
Positive Impact: Yorkshire bank use eco-friendly structure in their business organisation,
for example- furnitures and machines to preserve environment.
Negative Impact: Climate change and frequent frequent change in geographical locations
can affect performance of employees of this bank.
LEGAL FACTOR: As competition in market is continuously increasing, it is essential for
Yorkshire Bank to abide all legal laws and regulations laid down by government in their
particular area of working. This will help them to start their business in new market segment.
Positive Impact: By timely taking care of every legal rule and regulation that includes
employment safety and health safety act, company can benefit in creating a positive working
environment. (Sekaran, and Bougie, 2016).
Negative Impact: If Yorkshire bank doesn't keep itself updated with laws of UK then it
may result in penalising their company for any misconduct.
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TASK 4
P5 Internal and External analysis of specific organisation in order to identify strength and
weaknesses
Yorkshire Bank is an UK based organisation and deals in intensive range of services
which includes financial services, commercial banking, marketing personal and other financial
product and services (Vaiman, Sigurjonsson, and Davidsson, 2011). In order to identify strength,
weaknesses, threats and opportunities of this firm, it is essential to conduct SWOT analysis
which is briefly done below:
STRENGTH OPPORTUNITIES
 Yorkshire is a trading division bank
operating in England.
 This banking unit is having strong
balance sheet which results in high
capitalization.
 This banking division is having net
interest income up to 14.6% to 769
million euros.
 Yorkshire bank is having well trained
and professional manpower that results
in efficiency in services provided by
them.
 Most of their branches are fully
computerized and technically
developed.
 Yorkshire bank provides online
banking facility to their customer in
order to enhance their quality of
services.
 In order to train their employees in best
suitable manner. Yorkshire bank have
 Yorkshire bank is having various
opportunities to expand their business
operations by adding more geographical
locations in both domestic and
international market.
 This banking unit can enable new and
innovative factors in their technological
aspects.
 Bank can grow their area of service in
commercial banking industry.
 Yorkshire banking industry can expand
their area of service. For example, they
can open their new branches in rural
areas (Meiners, and Edwards, 2014).
 As there is increase in demand of
account opening, import, loan and life
insurance schemes bank can expand
their services in various sectors.
 There are lack of investment
environment or culture in society.
 There is high growth in smart phone
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separate training centres.
 Financial position of this bank is
growing every year.
user and society is accepting digital
media for various services. Yorkshire
bank can increase awareness about their
services on digital platform to their
consumers in order to increase their
productivity.
WEAKNESSES THREATS
 Al through Yorkshire bank is having
high networking system but they are
confined to less number of branches.
 High rate in employee turnover results
in decrease in stability in their working
environment.
 Yorkshire bank is having less exposure
in global business as compare to other
financial firms (Li, 2011).
 Most of their banking branches are
situated in urban areas which hamper
their growth of services in rural
segments.
 Brexit ambivalence can harm
functioning of mainly all banks in
United Kingdom.
 Regular advancement in Digitalisation
continuously disrupt future challenges
of Yorkshire bank.
 Government rules and regulations keeps
on pressurising new capital
requirements for this bank.
 There is large amount of increase in
online scams that results in difficulties
to secure data of clients.
 There is high involvement of political
parties in decision making process of
banking sector.
P6 Interrelation of strength and weaknesses of macro environment element on a company
Every organisation those who are providing their services in order to satisfy needs and
demands of consumer have to face challenges in both internal and external market. All those
factors include in these market can hamper growth of these organisation and create numerous
obstacles in their profit retention (Saleem, 2017). It is essential for every organisation whether it
is small or large to identify their strength and weaknesses in order to effectively overcome them
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and enhance their productivity and profitability. In relation with, Yorkshire bank this
organisation mainly aim towards expanding their services and satisfy their consumers at its best.
Mentioned below thee are an inter relational of strength and weaknesses of macro environment
mentioned below:
FACTORS STRENGTH WEAKNESSES
Political Factors  Company can effectively
increase their services also in
commercial banking
industry. As there is less
political interference in this
sector they can expand area
area of growth (Zsambok
and Klein, 2014).
 Government laws and
regulations continuously
pressurise banking sectors in
order to modify their lending
rates, interests rates and
capital reattainment.
 There is high
indulgence of political
parties in banking
sector of United
Kingdom. This will
results in creating
unnecessary obstacle in
their process (Saleem,
2017).
 Different different
types of government
laws can create various
hurdles in banking
process and satisfying
needs of consumers in
best possible manner.
Economical Factors  Yorkshire bank is having
strong net income and they
place in effective rank in
trading division bank in
United Kingdom. This will
benefit them to increase in
high capitalization.
 Financial position of
Yorkshire bank continuously
 Quality of banking
services provide by
them can decrease if
there are any economic
crises prevailing in any
geographic location.
 Most of their branches
are located in urban
sector (Tayur,
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keeps on growing from past
many years. This will act as
a motivating agent for whole
of their staff and
organisation.
Ganeshan, and
Magazine, 2012). So it
is essential for
Yorkshire bank to start
operating their services
in rural market to
increase their
profitability.
Social Factors  Bank can effectively
enhance their area of
services as they have various
geographical sectors to
expand their area of
servicing (Türetken, 2011).
 By implementing various
laws related to
environmental and employee
health services banking
sector can increase their
brand image. This will
results in enhance in their
goodwill in external market.
 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  As there is high rate of
growth in technology users
in smart phones unit, bank
can magnify their area of
services, with the help of
digitalisation in online
banking sectors (Gilboy,
 Some people have less
exposure towards
technology and some
have negative aspects
about it. This can create
obstacle in growth rate
of Yorkshire bank.
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2016).
 With the advancement in
organisation networking
system Yorkshire bank can
highly increase quality of
their services in both
national and global market
(Li, 2011).
 As there are
dynamically change in
technology which
require large capital
investment to
implement new develop
network in their
working sector.
CONCLUSION
In this report, conclusion is made on business environment which is a sum total of
internal and external forces that affect overall functioning of business organisations. As business
environment is dynamic, complex and uncertain it is important for business persons to recognise
all forces and analyse their effect on firms. Main findings in this project is size, scope and
structure of organisations that are wide and serves consumers effectively to gain competitive
advantages in best manner. Along with this, present study proves inter relationship with different
organisation functions in order to perform business activities smoothly. There are some negative
impacts of macro environment on business operations in order to which it is essential for
business organisations to find their strength and weaknesses to perform effectively. 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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