Business and the Business Environment

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.................................................................................................................3
P2 Explain the size and scope of a range of different types of organisations........................4
TASK2 ............................................................................................................................................4
P3 Interrelation in between the function of the northern trust investment bank....................4
TASK3 ............................................................................................................................................6
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................6
TASK4 ............................................................................................................................................8
P5 Conduct internal and external analysis of specific organisations to identify strengths and
weaknesses.............................................................................................................................8
P6 Explain how strengths and weaknesses interrelate with external macro factors...............9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and journals...............................................................................................................11

INTRODUCTION
Business is the process of producing, buying and selling of the product for the
achievement of profit and satisfy the needs of customers in exchange of money. So the business
environment is comprise the macro and micro environmental factors which is also known as
internal and external factors of the organisation (Aithal, 2017). Micro factor is basically internal
elements of the organisation which highly influence the goals and achievement of the company
and this factors is can be change by the management. But external factors can not change by the
organisation so they have to plane according to macro elements for success of the company. In
this report types of the organisation along with its purposes is evaluate. Scope with the different
range of organisation is consider in context to the selected organisation. Here the relationship of
other organisation function with the selected company is analyse along with the identification
and study of the macro and micro factors.
TASK 1
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures.
Organisations are classified into various categories to earn profits and revenues and social
objectives. There are various organisations divided in various sectors. These are:
Private sectors: private sector organisations are those who are independent and started
with any form. The major objective of these organisations to focus on their mission and vision.
For example Tesco is one of the private company (Bah and Fang, 2015). As company is the
largest retailer in all over the world. The legal structure of company consist of ten board
members and have department of corporate governance that deals with shareholders.
Public sectors: Public sectors organisations are those that are tracked on stock exchange.
The goal of these organisations is to maximise the welfare of society and works towards the
achievement of their objectives. For example Northern Trust Corporation bank is the financial
service company of Chicago. It is one of the largest bank in the US. The [purpose of this bank is
to provide corporate and institutional services and wealth management. This bank has ranked
486th on the Fortune 1000. this bank provides various financial services to customers and there
clients which helps them to earns profits through investments (Beynon-Davies, 2020).

Voluntary sectors: These are the organisations that are controlled and guided by the
government of country as there activities are performed by volunteers to work on the social
improvements of society. For example American red cross is the organisation that is
humanitarian organisation that provides emergency assistance, or disaster relief to the person
who are affected. Company was founded in 1881 and it legal structure follows board of
governors.
P2 Explain the size and scope of a range of different types of organisations.
Small term organisations: Theses re those organisations that are has 10- 49 employees
working in the company. These are very limited in the UK market. For example Bright star is the
organisation that is engaged in lodging and residential mortgages. There are 50 employees
working and and its probability is 71 %. the legal structure of company poses specific heirchaical
structure (Bustinza, 2018).
Medium term organisations: These organisations consist of 250 employees approx .
Company called Smith brother was founded in 1999 as a contract business. Its legal structure is
managed by top management according to the directions provided by board of directors.
Large term organisations: These organisations are Tesco, Sainsbury etc which shares a
lot market share and deals in retailing company and these organisation consist of many
employees working there (Čepel, 2018). Tesco earns profits of 300 millions in a year and its
overall turnover is about 63.11 at the end of year. The legal structure of company is matrix
structure that consist of mix of functional and divisional structure. The size of shareholders is
450000. its market share is in all over the world which includes Asia, Europe, Thailand and
Ireland etc.
TASK2
P3 Interrelation in between the function of the northern trust investment bank
Interrelationship in between the various departments are important as no company can
run individually on the basis of their own performance. Every department must coordinate and
manage with the others in order to achieve the targets of the company (Doh, McGuire and Ozaki,
2018). All the department make a separate structure on the basis of their functional activities.
Make a proper planning in the organisation related to the responsibilities and roles are very
important as it help in determining the success and failure of the company. There are various

department in the northern trust Investment bank like; management department, customer
support department, sales department, marketing department and finance department. These
department are interrelate with each other within the organisation (Durst and Zieba, 2017). These
are explained below:
Finance and Human resource department: In the northern trust investment bank the
finance department and human resource department are work with the interrelation concepts. As
to appoint the new employees and provide them a proper training and development programme
need funds which are assign to them by finance department. So they are interlinked and
connected with each others. Same as the to assigns the budget in the different departments they
need to make the list of the employees and departments which are provided by the human
resources team. The human resource manager need to make the more recruitment and selection
process so in order to complete that they have to coordinate with the finance department as it is
the very expensive method in the organisation.
Marketing and Human resource department: For getting the success in the business,
they suppose to business to expand the business organisation. The marketing department of the
respected organisation need to complete the research and based on that research they decide the
various promotional techniques and strategies (Gavurov, 2017). So if the marketing department
need more employees in the company to complete the new promotion techniques. So they will
ask the human resource department for help to know about the policies and strength of the
company. To appoint the marketing team they have to make the coordination with financial
department and to human resource department as well.
Sales and HR department: It can be said that both are connected with each other
completely. In the both process the main element is user experience because customer and
candidate both invested their time in company to achieve something. So align with this
experience is main factor to handle both persons (Hahn and Kim, 2016). Technology is another
important element which connect SALES and HR positively because in sales process technology
is required to manage records of customers and other business organisations. In the other hand
technology played a great role for HR to find such persons through technology like social
networking , which really required the job opportunity and as well as their capabilities and
qualities matching with companies required job profile. In this way both are handling same kind
of opportunities and challenges during sales and appointing a candidate because during sales the

mandatory element is customer satisfaction and at another side it is also mandatory to satisfy the
candidate with facilities and work frame of company.
TASK3
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples.
PESTLE analysis
For the identification of positive and negative impact of the macro factors on organisation
PESTEL is can be the best tool as it aid to evaluate all the external elements such as political,
economical, social, technological, environmental and legal factors.
Political: This group of the factors basically consider as the political rules, regulation and
agenda which highly impact the multinational businesses. In context to the Northern Trust
investment Bank it posses both positive and negative effect (Katz and Green, 2018). Positive effect- Government has supported the skill development of Northern Trust
investment Bank workforce along with this another political benefit is political support
for the domestic company's of the nation.
 Negative effect- Due to the Brexit there is the huge problems created related to the new
regulations. It has effected the organisation in decreasing sale. Changes in the tax law
between the different nation has affected the profitability of company. Another example
is US- china trade War which has highly effected product supply and growth of various
organisations.
Economical: This group of the external element includes the economical stability of
target market. Which can highly effect the consumption of Northern Trust investment Bank
products line. It is essential to balance the organization plan according to changing economy.
Brief analysis of economical factors effect on company is given below. Positive effect- The increasing development of economy in the target market, can for the
higher profit because due to the good sate of the economy company can select the price
rate with high profit margins (Meskhia and Shaburishvili, 2015).
 Negative effect- Due to the discerning economy company have to manage the price rate
according to that, such as in the lower process rate this can effect the profit. But
necessary for making the constant sale.

Social: This group of the macro factors involves the customer demand, upcoming trends
and personalise requirements of the customers. So it is important to make the product on the
basis of trends and culture of the target customers. Positive impact: The social factor brings an advantage for Northern Trust investment
Bank while innovating and offering new services to customers which results in making
the best of talents and offering customers utmost satisfaction.
 Negative impact: Sometimes the market trends changes rapidly and banking industry is
continuously becoming more and more competitive. The highly changing requirements of
people and industry becoming competitive makes it difficult for bank to cope up and
work according to the efficiency required.
Technological factors: Technological factors are very important aspect of analysing
change in the market. There can be change in production, automation and digital technology.
Such technological developments and innovations can affect the business environment. Positive impact: Due to day to day change in technology, Northern Trust investment
Bank launched self-checkout banks and other facilities which leads to fast and hassle
free management (Shaw and Barry, 2015).
 Negative effect- This is also impacting negativity on performance of bank. This is
because firm has to use new tools and techniques which increasing cost.
Environmental factors: The environmental factors that are responsible for change in the
environment can arise due to global changes in climate, change in sustainability, insurance
policy and environmental offsets. Positive impact: Environmental factors such as sustainable production, fair trade affects
the macro environment of Northern Trust investment Bank. The company also launched a
Green Policy which focuses on creating a positive impact on individuals and on society.
 Negative effect- This is also impacting negativity on performance of bank. This is
because firm has to use new tools and techniques which increasing cost.
Legal factors: The legal factors that affects the organization can be consumer and labour
laws, trade regulations, health and safety standards, product labelling, safety and others which
can affect the macro and micro environment of the business.

 Positive impact: Northern Trust investment Bank focuses on giving training to its
employees on health and safety related concerns and they also keep their company up to
date as per government laws and legislations.
 Negative effect- The challenging factor which Northern Trust investment Bank will be
facing is due to the increasing criticality and complexities of laws and polices which are
developed in aspects of legal concerns and that are essential for them to follows and
complete effectively.
PESTEL Analysis of Northern Trust investment Bank analyses numerous factors that can
affect a business. The factors such as political, economical, social, technological, environmental
and legal aspects are analysed to calculate the change that can arise or can be raised which can
affect the present and future market of the organization. With the help of pestle analysis it helps
the organization to improve the business continuously by understanding the dynamics of the
market.
TASK4
P5 Conduct internal and external analysis of specific organisations to identify strengths and
weaknesses.
SWOT stands for strength, weakness, opportunities and threat. SWOT analysis helps the
company to assess its ability to achieve its goal. SWOT analysis helps the company in decision-
making. SWOT is an internal analysis where a company can identify its strength, weakness,
opportunity and threats. SWOT analysis helps the company to identify all the factors which help
the company in decision making.
SWOT ANALYSIS OF NORTHERN TRUST INVESTMENT BANK:
Strengths: Northern Trust investment Bank is one of the largest company with global
presence in various countries. The company has highly skilled workforce as it invest its
resources to provide training to its employees. The company has maximum customer satisfaction
as they are devoted towards their customers.
Weaknesses: Northern Trust investment Bank is one the biggest brand but still they need
to improve themselves in some areas. The company buy large volume of stock without
forecasting the demand in the market which results in improper service management. This will
also lead them to lower their prices. The company has limited outside their core business.

Opportunities: Increasing popularity of online services become opportunity for brand
like Northern Trust investment Bank. This will increase their customer base and helps them to
reach at global level. Emerging economies will also lead to their expansion.
Threats: Increasing number of market players are threat for brand like Northern Trust
investment Bank. This will lead to intense competition and lower their profit. The company need
to be innovative to satisfy their costumers.
P6 Explain how strengths and weaknesses interrelate with external macro factors.
Political Economic Social Technological
Strengths Northern Trust
investment Bank
is wide enough
which offers it the
diverse ground to
cover and enable
it to have long
relations with
different
countries and
regions as well
with their
administrative
bodies.
The economic
factor offers
Northern Trust
investment Bank
the strength to
have stability of
their business in
separate
environments and
economies.
Northern Trust
investment Bank
is widely present
that offers them
the largest
customer base
and market share.
Technologies
enable Northern
Trust investment
Bank to bring in
more
transparency in
their function and
keep people
informed.
Weaknesses The weakness
surrounds the
political factor of
Northern Trust
investment Bank
is its global
presence which
means exposure
The weaknesses
arises of
increasing
complexities of
economical
influences such as
recession in
different
The social trends
are highly flexible
and causes
challenges for
Northern Trust
investment Bank
on regular basis
to sever
Northern Trust
investment Bank
is a techno
friendly
organisation
which sometimes
bring more
complexities as

to more political
constraints which
increases risk and
liability to follow.
economies. customers
accordingly.
employees are not
well aware of
them and shows
resentment while
working on them
as a result their
efficiency
reduces.
CONCLUSION
The report above concludes over the discussion made over business environment and
different business organisation. While conducting the report different types of business
organisation and their efficiency are identified which are important for economies to run and are
interrelated with one another.

REFERENCES
Books and journals
Aithal, P.S., 2017. An Effective Method of Developing Business Case Studies based on
Company Analysis. International Journal of Engineering Research and Modern
Education (IJERME), ISSN (Online), pp.2455-4200.
Bah, E.H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Beynon-Davies, P., 2020. Business information systems. Red Globe Press.
Bustinza, O.F. And et.al., 2018. Product-service innovation and performance: unveiling the
complexities. International journal of business environment. 10(2). pp.95-111.
Čepel, M. and et.al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness.
Doh, J., McGuire, S. and Ozaki, T., 2015. The Journal of World Business Special Issue: Global
governance and international nonmarket strategies: Introduction to the special
issue. Journal of World Business, 50(2), pp.256-261.
Durst, S. and Zieba, M., 2017. Knowledge risks-towards a taxonomy. International Journal of
Business Environment, 9(1), pp.51-63.
Gavurova, B. and et.al., 2017. Predictive potential and risks of selected bankruptcy prediction
models in the Slovak business environment. Journal of Business Economics and
Management, 18(6), pp.1156-1173.
Hahn, Y. and Kim, D., 2016. Corporate social responsibility: A comparison analysis. The
Journal of Business Economics and Environmental Studies, 6(4), pp.13-17.
Katz, J.A. and Green, R.P., 2018. Entrepreneurial small business. McGraw-Hill Education,.
Meskhia, I. and Shaburishvili, S., 2015. Basics of researche of the technological environment of
business.
Shaw, W.H. and Barry, V., 2015. Moral issues in business. Cengage Learning.