Business and the Business Environment: An Analysis of UK Organizations

This assignment delves into the diverse landscape of organizations in the UK, focusing on the clients of HALIFAX BANK. It explores the various types, scopes, and sizes of organizations, examining the interrelationship between their functions and structures. The assignment further analyzes the impact of the macro environment on business operations, utilizing PESTEL analysis to identify both positive and negative influences. Finally, it conducts a SWOT analysis of specific businesses, highlighting their internal strengths and weaknesses and their connection to external macro factors.

Business and the Business Environment
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Executive Summary
This assignment discusses about different types of organization in the UK which are mainly the
clients of the HALIFAX BANK. Usually, there are different types of organizations which have
different size. There are also various scopes of the organization. Within an organization, there is
an interrelationship between the various functions of the organization. The way these functions
are linked to the overall structure of the organization is discussed in the later section of this
assignment. The external as well as the internal environment of the different organizations are
discussed well here. The macroenvironment has both positive and negative impacts on the
operations of the business. The weaknesses and strengths of the organizations are also discussed
in this section.

Contents
Introduction....................................................................................................................................4
LO1: The different types, scope and size of organizations........................................................5
Different types of organizations...............................................................................................5
Scope and size of the organizations..........................................................................................5
Organization functions as well as structures...........................................................................6
LO2: Interrelationship between different functions within an organization and the way
they link to the structure of the organization..............................................................................8
LO3: Negative as well as positive impact of the macro environment factor on the business
operations.......................................................................................................................................8
PESTEL Analysis.......................................................................................................................9
LO4: The internal strengths and weaknesses of specific businesses and their
interrelationship with the external macro factors....................................................................10
SWOT analysis.........................................................................................................................10
Conclusion....................................................................................................................................12
References.....................................................................................................................................13

Introduction
The place where a group of people are organized with a particular purpose such as public serving
or business is termed as an organization. In the organization, managers take different types of
action such as management, planning, logistics, running, coordination and organizing. There are
various types of organization in the UK. The categories are many like sole trader, partnerships,
private, public or voluntary organizations. The strategy is usually explored (Johnson, 2016). But
it can be said that there are differences between different types of organization in terms of scope,
size, objectives as well as legal structure. These organizations usually operate in three main
sectors like primary, secondary or tertiary.In this assignment, the bank given is the HALIFAX
BANK which is a most respected and one of the leading banks in the UK. Around 4,400 offices
of this bank are present worldwide. Intensive range of financial services are provided by the
bank. I as a Client Manager would explain different types of organizations of UK which are the
prospective clients of this bank.
Now, both the external as well as the internal environments of these organizations are analyzed.
As stated by de Maré (2018), large groups politics are discussed.

LO1: The different types, scope and size of organizations
The convertible process of materials and skills is the business which provides services according
to the customer’s request. Different factors like competitors, resources, customers, industry
trends, suppliers, distributors, regulations, substitutes, government activities, regulations,
technological development, demography, innovation, and population are included in the business
environment. Within the UK Supermarket industry as per Tench and Topić(2017), the sourcing,
sustainability and the CSR is evaluated. The most importance resource for any organizations is
the financial, physical and human resources.
Different types of organizations
Many different types of organizations are present in the UK. This includes organizations like
sole trader, private, partnership, public or voluntary. These organizations are the probable clients
of the HALIFAX BANK.Noncompliance and Value Conflicts are the Whistleblowing attitudes
in Swedish Organisations (Berndtsson et al., 2018). These organizations can approach the bank
for the purpose of a mortgage, loan and other business services.There are various advantages and
disadvantages of this organization.There are some differences in terms of scope, size, objectives
and legal structure between these organizations.
Scope and size of the organizations
Different types of enterprises are present like large, medium-size, small and micro enterprises.
Usually, the micro and the small businesses face a lot of difficulties to sustain as they are
competing with the large businesses. The market share of micro as well as the small businesses
are also small compared to the large businesses. The medium-sized organizations possessed a
medium size market share, and they can sustain better than the small and micro enterprises. In
public-sector organizations as per Domingues et al., (2017), sustainability reporting is present.
The small and micro enterprises have a very little scope to change their management strategy.
These small, and micro enterprises can be damaged by the entry of competitors.The factors and
importance of Sustainable Green HRM which affects the implementation in a successful way in
Organisations (Viswanathan, 2017). However, due to the competition with the very large
organizations, some risks are also faced by the medium-size enterprises. Sometimes, the risk may
be too high for them to sustain competition as the large organizations have more resources. So,

the profit share of large enterprises is the greatest followed by the medium-sized, small and the
micro enterprises.
Organization functions as well as structures
There are different kinds of organization structures which are relating to the scope of the
operations as well as the size of the business which includes:
Sole trading organization: The organization which is entirely maintained by a single person i.e.
private owned is known as the sole trading organization. As per Scarborough et al., (2015), in a
choice experiment, the shoppers of UK supermarket use different information on a traffic
level.For all the profit and the loss of the organization, only that person is liable. For example,
Zaffirson food.
Partnership organization: Partnership organizations are those organizations which are owned
by two or more people. In transforming economies as per Volberda et al., (2017), the innovation
of business model is discussed. The whole partnership programs are owned by two or more
people and all the profit and loss are shared by them. For example, FAB.
Private organization: In a private-sector organization, the control as well as the ownership of
the organizations is controlled by the private group or individuals. So, profit is the only aim of
these organizations. These types of organizations are the profit organizations. Sainsbury’s is one
of these types of organization in the private sector. As stated by Sharma et al., (2014), the
decision-making processes are usually transformed.
Public or voluntary organization: There are also various public-sector or voluntary
organizations whose economies are controlled by the government agencies or the government.
These organizations are the ‘not for profit’ organizations. The tools and strategies for building a
learning organization is discussed (Senge, 2014).The whole business operation is controlled by
different types of these organizations which is for the general well-being of the citizens on behalf
of them. In England, one of the popular public organizations is the National Health Service
(NHS).
The purpose of sole trading organizations is to maximize the sales revenue, increase profitability
and to provide fresh and good quality foods to the customers. The advantages of these
organizations are that these are the least expensive and the easiest form of ownership to organize.

Whereas the disadvantages of these organizations are limited liability i.e. the organization is
legally responsible for all debts which are against the business. So, their personal asset is always
at risk. In voluntary organizations, the values, visions and stories are discussed (Schwabenland,
2016). The purpose of the partnership organizations is to gain maximum profit so that the profit
can be equally divided among the partners of these organizations. Advantage of these
organizations includes easy establishment but as decisions are shared so disagreements can occur
which is the main disadvantage of these organization. The advantages of private organization are
many like increased profit but disadvantage is that in case of fund issues no supportive members
are there. Public or voluntary organizations are not concerned about their profits as these are ‘not
for profit’ organizations. So, the main advantage is that they are controlled by the government
agencies but sometimes some problems may occur as various organizations are also involved
with these organizations. This the main disadvantage. This is the main difference between these
different types of organizations whereas some differences in terms of scope, size, objectives and
legal structure is also there which is discussed here. These organizations are either operated in
the primary, secondary or the tertiary sector. The structure, scope and the size of the different
organizations are linked to the objectives of the business as well as the services and the products
offered by the organization. The organizations having a good structure usually set a huge target
as their objectives. It is impossible to achieve the target if the organization does not have enough
people and if the people of the organization lack the knowledge regarding the subordinate and
role. Almost every organization sets their objectives based on their size. As per Cheshire et al.,
(2014), evidence from a UK supermarket chain is found regarding the land use productivity and
regulation. Big targets are set by organizations which can invest huge money with its enormous
size. The profit level of every organization differs with the size, but every organization has a
common objective of serving customers and earning profit. They will set business accordingly to
the customers like international or national customers. The organization sets their size, scope and
structure according to the products and the services. Like, if the scope of any particular service or
product is vast then the organizations create a scope and a massive organization size.

LO2: Interrelationship between different functions within an organization
and the way they link to the structure of the organization
The structures of the organization like sole trading and partnership organizations are dependent
upon the organization’s business function. These organizations include companies like Zaffirson
food and FAB. This is because the organization always makes the objectives and the structure on
the basis of the role they serve to their customers. Mainly, to uphold control as well as
uniformity in the organization as well as to serve customers with their services and products are
included in the business function of an organization. The evaluation and modelling of
supermarket emissions and energy use is discussed (Maidment, 2016). Through the actual
amount of control, an organization can maintain consistency and through their business structure,
they can easily monitor their business. A better functionality can be achieved by the
organizations in which everyone has a good knowledge about their roles when connected with
any project. Hence, an organization can be helped by the organizational structure as well the
effectiveness in the setting of the business objectives. These things can help an employee in
knowing their role with effectiveness.
LO3: Negative as well as positive impact of the macro environment factor on
the business operations
New risks appear always in the macro environment which becomes harder to identify for the
organizations. Usually, societal, economic, governmental influences as well as technological
factors are included in the macro environments. On the business operations, usually, the
technology has several negative and active impacts on the operations of the business. The
organization and the individual are usually integrated (Argyris, 2017). Those organizations
which have real technological proficiencies are only selected by the online customers. Different
government regulations, policies and law have a negative as well as positive impact on any
business. So, the government can help the organizations by providing subsidiaries, loans and
different governmental assistance. However, the negative impact may be the tax rates on any
corporate organization. The sales of the organization can be increased as a result of a robust
economy. It usually, helps any organization to sell more services and goods. The disposal
income may be decreased as a result of lethargic economy. This causes a less amount of
spending in the market. It usually forces retailers to lower their strategies of the price and also it

leads to the declining level of sales. In transforming economies as per Volberda et al., (2017), the
innovation of business model is discussed.
PESTEL Analysis
Political
The different types of organization of UK mentioned above are operating around the globe in so
many other countries and so the legislations and politics of those countries are influencing the
performance of their business. The governments usually encourage organizations for the purpose
of employing labors i.e. by providing locally based, flexible and average paid jobs, they are
hiring the employees. As per Rowley and Hartley (2017), the knowledge of organizing is
discussed well. Also, some taxes are introduced by the UK government which benefits, the
business and operation of the companies.
Economical
The economy of UK nowadays is showing positive signs from the economic crisis and inflation.
The GDP of UK now is increased to 2.7% higher than the previous. There are various factors
like social, economic and cultural which affects the entrepreneurship (Castañoet al., 2015). This
growth result in the growth of the UK organizations mentioned above. But it will take some time
increase their revenues as well to increase the monthly disposable income of the citizens.
Socio-cultural
Nowadays, there is a huge change in the demand of the customers. People are more inclined now
to buy organic and fresher foods. A skill building approach to the research methods for business
are discussed (Sekaran and Bougie, 2016). The elderly people prefer to buy grocery items online
due to the mobility issues. The organizations should focus on a very good online strategy which
will help them to earn huge amount of profit and also to meet the customer’s need. They should
develop a good catalog which shows their products of diverse ranges.
Technological
The organizations should give attention to the efficient ways of technologies as the customers are
more inclined to the present technology. It is important to develop internet activities which are
effective as the number of e-shopper is increasing. As mentioned by Rachet (2014), Porters Five

Forces and PESTEL analysis for innocent drinks company is done. These technologies usually
attract the customers. Different technologies like RFID, wireless devices, self-checkout
machines, etc. should be utilized by these companies.
Environmental
The organizations should reduce their ejection of different greenhouse gases and carbon footprint
to be environmentally responsible. The significance of PESTEL Analysis is usually determined
(Dockalikova and Klozikova, 2014).
Legal
Different legislative factors are there which are directly affecting the operations of the
organizations mentioned above. As mentioned by Van Der Aalst et al., (2016), the process of
business management is discussed. Food retailing Commission is there which has implemented a
policy which suggests one code of practice. It usually bans different activity in the retailing of
food of the organizations.
LO4: The internal strengths and weaknesses of specific businesses and their
interrelationship with the external macro factors
SWOT analysis
SWOT analysis of the different types of organizations:
Strengths
High customer loyalty is present as these are very prevalent brands. The wider assortment of
operations of business is present. Geographical diversification is present. Strong traditions of
these organizations develop the loyalty of both the employees and the customers. In modern law,
the reflexive and substantive elements are discussed (Teubner, 2018).
Weaknesses
Limited liquidity position can be a problem for these organizations. Due to the lack of national
cultures in different geographical areas, they have some problem to implement the common
ethics. The management of strategy is important (Rothaermel, 2015).

Opportunities
These organizations can capitalize for their growth in the future. In the new markets, there is a
possibility of huge growth. As a result, their market shares can be enlarged globally. This in
turns increases their revenue. As per Slocum (2017), the occupational careers are discussed.
Threats
Threat includes financial crisis, increasing rivalry and the changing demands of the customers.
The strengths and weaknesses of these organizations are directly linked to the external macro
factors. Macro environment factors affect the entire geographical region in which the firm
operates and the weaknesses and strengths effects the nearby operating environment of the
organizations. As per Northouse (2018), the practice and theory of leadership are discussed.
In this way, the micro and macro factors of the organizations affect their decisions as well as
business objectives.

Conclusion
So, in the above context it is seen that there are different types, scope and size of the
organizations. Various functions of the organization are linked to the organizational structure,
and interrelationship exists between the various functions. Both external and internal factors of
these organizations are analyzed in the above section. Thus, it can be said that the weaknesses
and the strengths of the organizations are linked to the external macro factors.

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