Business and The Business Environment Solved Assignment (Doc)

BUSINESS AND THE BUSINESS
ENVIRONMENT
TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................1
TASK – 1....................................................................................................................................................1
Illuminating diverse types, size as well as scope of organizations...........................................................1
TASK – 2....................................................................................................................................................3
Organization structure.............................................................................................................................3
Two types of organizational structure that the clients of JP Morgan Finance and Investment might have
................................................................................................................................................................. 4
Relationship amid different organizational functions..............................................................................5
TASK – 3....................................................................................................................................................7
PESTEL analysis.....................................................................................................................................7
TASK – 4..................................................................................................................................................10
SWOT analysis......................................................................................................................................10
Inter-relation of Strength and Weakness with Macro and Micro factors in business decisions..............11
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

TABLE OF FIGURES
Figure 1: Functional organizational structure..................................................................................4
Figure 2: Divisional structure of organization.................................................................................5

INTRODUCTION
The concept of the business environment is quite broad including various internal and
external factors of the business that influences the operations. Each and every organization
irrespective of their industry belongs to an environment which has two different sub-parts that is
macro and micro environment. These two environment share some sort of relations and impact
the functioning of a business on the basis of the type of companies (Brooks, 2003). Thus, it
necessitates evaluation of these environment in order to have efficient and proper flow of
activities within the business.
Pertaining to this, the present research study also aims to analyze different types, sizes,
scope and structure of organizations. The case study of JP Morgan Finance and Investment will
be taken under consideration for this purpose. The firm is one of the leading investment and
financial banking company of United Kingdom. It also deals in industrial and commercial
banking services. Being a Client Manager of JPMorgan Finance and Investment, different types
of organizations will be discussed and evaluation as a prospective client will be done. This report
will also focus on the inter-relationship amid different functions and will considerably depict the
impact of macro-environmental factors on the successful functioning of operations within the
firm. The final part of the paper will throw light towards determining internal strengths as well as
weaknesses of the company that will demonstrate their inter-relationship in an effective manner.
TASK – 1
Illuminating diverse types, size as well as scope of organizations
Organization is nothing but an entity that includes variety of people that have a common
goal to have a significant connection with an external environment. In simple words, when two
or more people collaborate and work together for accomplishing common objectives or interests,
it is known as organization. In addition to this, it is also vital that organizations should be
established with some purpose. This is because of the fact that the purpose acts as a guide to the
business and many crucial decisions are taken that are based upon the organizational purpose
(Lasanthaw, 2012). the main purpose of these firms are to achieve their mission, vision and
short-term goals and objectives decided at the time of formation of the business. But these
purposes and objectives differ with the types of firms. However, there main aim will remain the
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same i.e. rendering services to their valuable customers effectively and to achieve growth for the
business with each passing day.
There are specifically three major sectors that dominate the economy of a nation such as
primary, secondary and tertiary sectors. Primary sector refers to the sector wherein each and
every person are employed in agriculture and production of food and other food products
(Pettinger, 2017).
On the other side, in the secondary sector, finished goods such as toys, factories, food and
clothes are offered. Finally, in the tertiary sector, the main emphasis is being given on the
intangible products and services to the customers like information technology, retail, tourism,
banking and many other services.
The economy of UK is quite developed and market oriented and thus tertiary sector has a
major dominance on the entire economy of a nation. Primary and secondary sectors also subsist
in UK, comprising only 20-40 percent in the overall size of these sectors.
Categorization of varied types of organizations is described below:
Partnership – Partnership is a very popular form of organization, where more than two
person come together and decides mutually to work in collaboration for accomplishing
common goals and interests. Partnership can reap out many benefits to the firm such as
ore capital can be arranged, as many partners will be involved plus there will be limited
external regulations. But, partnership is also very risky because of high risk of
disagreements (Peh, 2009). In addition to this, each and every partner is responsible for
actions of their other co-partners. For instance, in a restaurant business, two or more
person work together and make equal investment as per their mutual consent. Restaurant
industry is both related to tertiary and secondary sector, as they offer intangible services
to their customers and at the same time, they use raw-materials from the primary sector
and convert them into finished goods.
Sole trader – Sole trade is that type of business which is possessed by one person and
has full control over the operations. The profits being earned through business is retained
by the sole trader alone. The main advantage of this type of firm is that the owner can
take quick and feasible decisions, as he is the one who plans and takes valid choices.
Conversely, they are not considered as a separate legal entity from its business and
therefore, he is exposed to unconstrained liability (Huczynski and Buchanan, 2000).
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