Business Environment Analysis and Decision Making

This assignment is focused on analyzing the business environment, which includes both micro and macro factors such as SWOT analysis, PESTEL analysis, and others. The purpose is to help students understand how these factors can be used in decision-making processes. References from various books, journals, and online sources are provided for further research and understanding.

Business and The
Business Environment
Table of Contents
INTRODUCTION...........................................................................................................................1

TASK 1............................................................................................................................................1
P1. Various types and purposes of organisations...................................................................1
P2 Scope and Size of various form of organisations.............................................................3
TASK 2............................................................................................................................................5
P3. Relationship between various organisational purpose and their link with organisational
objectives................................................................................................................................5
TASK 3............................................................................................................................................8
P4. Positive and negative effect of macro-environmental factors on the business operations8
TASK 4..........................................................................................................................................10
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.....................................................................................................10
P6 Explain how strengths and weaknesses interrelate with external macro factors.............11
CONCLUSION..............................................................................................................................13

INTRODUCTION
Business environment is the collection of all internal or external factors like customer
requirements, employees, management, clients, demand and supply, owners, innovative
technologies, market trends, changes in economic environment and so on. All these factors
influence the functions of an organisation in order to see that how company works directly or
indirectly. Business environment helps in analysing the opportunities of business, assisting
planning and changes the overall performance and growth of the business (Chetwood and et. al,
2014). This concept of business environment determines the two factors which is micro and
macro environment. Present study is based on, European Metal Recycling which is occupy with
the supplying of resources through recycling scrap metal. This company may become client of
Yorkshire Bank which manages their functions as a loan, mortgage and other business services.
As per this scenario, discussions have been made on various kinds of companies in London.
Bank was formed in the year of 1859 and headquartered in Leeds, England. This report will
analyse the scope of organisation and their interrelationship with another companies department.
Strength and weakness of business with the positive and negative impact of macro environment.
Along with this report will identify several kind of organization with their legal structure
effectively.
TASK 1
P1. Various types and purposes of organisations
In the present period of time there are different types of business organisations wherein,
group of people manage and control the business requirements in order to gain particular target
effectively. By this all companies have good system of management which define the
relationship between the several activities of an individual in order to carry forward various task
of enterprises. Now there are several organisations which are as following under:
Private organisation
This type of organisation always comes under the part of economy and refers to the
partnership, person, corporation or agencies which are not public part but operated for earn
profit. On the other side, private organisation maintains selective members by them they can earn
more and more profit which is not managed by any state (Crane and Matten, 2016). According to
this organisation people can get good job and achieve their desired goals effectively. Along with
1

this private organisation mainly influence people in a positive way. In reference to the European
Metal Recycling which generally deal in the providing non-ferrous and ferrous metal recycling
services.
Purpose: In context of European Metal Recycling limited which is a global leading metal
recyclers, they mainly offers total waste management through the converting of scrap metals in
to the better attractive services. The main purpose of this company is to make better environment
in order to provide better environmental consultancy which is offered by them.
Legal Structure: It refers to the structure in which business owner mostly busy with
their structure and top position effectively (Gharajedaghi, 2011). In the legal structure middle
level of manager have mid position whereas, top executives have higher position. In regards with
European recycling their managers are able to take good decision in order to formulate strategies
in an appropriate manner.
Public organisation
It is the important part of country economy and it is managed by local, central and state
governmental bodies in a particular manner. In the modern world, there are lot of public
organisations such as departmental or governmental organisations that always fulfil the customer
requirements in a better way. Public sector companies mainly focused on the people interest and
formulate good profit. In reference to the Crown Prosecution service which is the agency of
public prosecution.
Purpose: CPS has purpose to conduct criminal prosecution in the England and Wales.
This company offers different types of services being a legal advisor to police or any other
investigated agencies. By this function company manage their activities in the secondary sector
as they always take raw data (information) which is formulated by police and also contentious
advice them efficiently.
Legal Structure: The legal structure of CPS is maintained at higher level. As per this
company examine evidence of police and decide wherein criminal proceedings are accomplished
by some people who is busy with tier hierarchy (Gilboy, 2016). This helps in making better
decision and develop plan accordingly. With the help of this it is easy to communicate and share
task efficiently in order to develop good outcomes.
Voluntary organisation
2

These are non profitable companies that generally focus in order to formed supply
welfare services to the local communities. According to this sector companies didn't work to earn
profit but to provide lot of services to people. In reference to the Oxfam which is the charitable
organisation with the aim of alleviate global poorness.
Purpose: Oxfam has purpose is to remove poverty globally. This company also offer
relief to every people who are facing poverty. They offer different kind of tools to people and
helping them in order to become self support (Li and et. al., 2011). This organisation perform
their all function in the primary sector in order to offer safety services to people who really need
it.
Legal Structure: The legal structure determine the various values like trust,
incorporation association, provident and industrial society effectively.
An Unincorporated association: It is a sum total if any person are not in legal existence.
In this all proceeding are taken on the basis of groups.
A trust: In this people work together in order to control or manage effective fund to do
welfare of community. Basically trustees are the individual who are liable for contract that fix
behalf of trust.
P2 Scope and Size of various form of organisations
Business environment is collection of internal or external factor which affects the
business functions. Business dimensions mainly depends on the various factors. In present time
every company has several scope, size and structure that have good aim to accomplish their goals
and objectives. Organisation structure are given below:
Private organisation
These organisation are controlled and managed by the persons or an individual having
aim towards getting higher profit. As they transfer lot of services and product as per the customer
needs. In context of European Metal Recycling their size and scope are given below:
Background: This organisation was previously known as Nobledrift limited. Now they
changed their name to European Metal Recycling. This company was mainly formed in the year
of 1994.
Product and Services: This company provide metal recycling services such as product
related to steel, mixed copper granules and cable granulation (Meiners, Ringleb and Edwards,
2014). Apart this they offer best recycled products to its customers.
3

Size: This organisation has broad area of servicing and have 4500 employees at 180
geographical area across the world.
Vision: Organisation has vision is to recycle scrap metal in to the supply and preserve
resources effectively.
Mission: This company have good mission which offer better quality of recycle products
and become more and more financially strong leader of market (Sekaran and Bougie, 2016).
They think they should grow in any kind of difficult situation and saving environment through
offering effective corporate social responsibilities.
Objectives: The objective of European Metal Recycling is to find several ways to change
and keeps on adding values and do right fore their employees, customers with in the
environment.
Structure: This organisation has 1800 offices globally and it is one of the respected and
leading sector in UK.
Public Organisation
These companies are managed by the central, state or local government. This company
coffer their services in order to satisfy customer needs. CPS is the principle of public prosecution
agency. They determine criminal prosecution in the England and Wales.
Background: In 1962 royal commission to build up independent prosecution in order to
ignore invest and prosecute cases. So in the year of 1986 CPS formed and begins operating their
functions as a legal advisor.
Products and Services: In this CPS provide legal advice to police and another
investigate agencies.
Size: This company controls more than 800,000 prosecutions with having a 6,900 staff
members and 2,900 barristers and solicitors.
Vision: CPS vision is to be very fair and independent. They always respect their public
and set clear vision about services (Saleem, 2017).
Mission: This organisation has mission to behave professionally and strive for
excellence.
Objectives: CPS works with one team because one team can easily seek unique and
better way to deliver effective services to police.
4

Structure: CPS works in the form of partnership with home office, courts, police,
ministry of justice and any other agencies. With the helps of this they have diversify workforce
nationally and locally.
Voluntary Organisation
These are the no profit organisation which is mainly prepared for the welfare of society.
In regards with the Oxfam their size and scope are given below:
Mission: Main mission of Oxfam is to handle different challenges of poverty reasons and
develop good solution for them.
Vision: The main vision is to world without poorness. This is because if company follow
this statement then it can enhance development of their structure (Tayur, Ganeshan and
Magazine, 2012).
Products and Services: In this, company mainly focuses on the working growth
humanitarian work. They also perform different activities through offering ventures to local
benefits and medical care facility.
Size and Scope: This company is a confederation of 20 independent charitable
organisations that concentrate in the remove the poverty and offer extensive services to locals
globally.
Objectives: This company has objective in order to remove poorness worldwide and
bring few changes or empower people to make them independent.
TASK 2
P3. Relationship between various organisational purpose and their link with organisational
objectives
At the current scenario each company has separate department who plays their business
function efficiently. Apart from these functions companies have several department in order to
achieve proper growth and increase sustainability business effectively. It is much easier to form
any business but it is difficult to maintain their sustainability (Türetken and et. al., 2011). It is
essential to chosen organisation that is European Metal Recycling they perform their functions of
business like marketing, finance and human resource efficiently in order to enhance profit
5

regularly. There are interrelationships between various organisational activities in European
Metal Recycling which are given as under:
(Source: Organisational Chart, 2019)
Marketing Department:
Marketing department is mainly related with the conducting research and provide goods
and services effectively with in the marketplace. Marketing involves in promoting goods and
services in order to grab customers and profitability of an organisation effectively (Vaiman,
Sigurjonsson and Davidsson, 2011). It is necessary for marketing manager that they need to
perform their activities effectively with the production department in order to satisfy present and
future consumers effectively. With the help of this marketing department can fix the deadlines so
that they can easily finish their products in order to gain competitive advantages effectively.
Human Resource Department:
6
Illustration 1: Organisational Chart

HR department always focused on the recruiting right person for right job. HRD is a kind
of backbone for every organisation in an appropriate manner. This is because it provides lot of
effective employees which are known as the key source of an organisation in order to develop
their growth and firms productivity efficiently. In reference to the European Metal Recycling HR
department is interconnected with the another department to ensures stability and growth of the
company (Wack, 2017). For example, If HR department helps in marketing team in order to
search different tactics to promote the brand effectively. So that they also helps in production
department in order to comes with the unique or innovative ideas of product to achieve target.
Therefore, it will be more benefited organisation in the term of increasing better quality of
products in an effective manner.
Finance Department:
There are few different function of finance department in order to provide financial
stability and security to the business enterprises. Finance department is also known as the
supporter of any kind of company in order to operate their business function smoothly. With the
helps of this, it is very much important for European Metal Recycling their finance department is
very closely related with several departments in order to search the financial requirement or
budget to research, promote and proper distribution of product. Instead of this in any
organisation finance department is related with marketing department where they consider the
requirement of funds by them in order to perform their branding and promotional activities.
7

Both finance and marketing department have to assure that their work will be completed with in
the allocated budget in an effective way. This concept will remove the unnecessary wastage of
cost and organizational profitability.
Here, in order to manage sustainability and develop proper working chain in the structure
of organisation business now it is necessary for managers to develop innovative plan effectively.
It is also needed for them develop and evaluate needs and desire of every department (Yu and
Ramanathan, 2013). Now this can be said that by keeping the update about every needs of
department that can assure their remarkable growth and productivity. It will not benefit even it is
helpful for increase profit and job performance of employees.
In the case of CPS their horizontal structure follows through management. As per this top
level executives have higher authority wherein mid level executives are on the middle level. In
the European Metal Recycling their management system also follow vertical structure which is
taken by higher position. Therefore, it helps in making the good decision and communicate well
with each and every individual within the company in order to make potential customers
effectively.
TASK 3
P4. Positive and negative effect of macro-environmental factors on the business operations
For the satisfy consumer needs and increase the area of services it is necessary for
Yorkshire Bank to define their internal or external factors. Evaluation may be done with the
support of PESTLE analysis which is given below:
Political factors:- It includes in so many riles and regulations which is governed by the
government. These all factors influence the business in various ways (Zeng, Li and Duan, 2012).
Here, it is necessary for managers to focus on these factors and make attractive decisions in order
to decrease negative impact of all these factors.
Positive Impact: It can affect the emergence of new technologies. It is necessary for
every organisation in order to deal with several kind of customers with the politics. It is also
benefited for the data protection, trade control, environmental law and policies of tax.
Negative Impact: There are several changes in the government regulations it can give
results in the form of risk. It can becomes the huge issue for growth of an organisation. It can
also affects the decision making process of company.
8

Economic factors:- This factor can helps the business organisation in order to meet
desirable goals and objectives effectively. There are different type of organisation factors like
behaviour of consumer, banking, employment factors that all affects the function of business
efficiently.
Positive Impacts: If the country is strong financially or economically and also have good
balanced standard of living then it will make good population in order to purchase several goods
and services effectively (Zsambok and Klein, 2014). This concept will enhance the sales of an
organization and profitability also in a better way.
Negative Impacts: Low economic rates and low power of buyers of buying give results
negatively with in the business productivity rate.
Social factors:- It can affects the overall functions of business. There are some factors
which are come under this like economically, technologically, legal etc.
Positive Impact: In order to take care of society cultural belief system or practices to its
customers as well as tradition of the present time can also maximise the brand image of an
organization.
Negative Impact: In the negativity if the company does not follow corporate social
responsibilities than it will become more tough to run their business in a good way.
Technological factors:- These factors are mainly developed in the area of technological
processes. In which these factors can influence the business function positively or negatively
with in the environment.
Positive Impact: Due to the several changes in the technologies company can easily
enhance their production quality and able to play their function nationally or worldwide.
Negative Impact: Technology is a type which can change in any time, so in order to apply
various unique technologies than lot of cost is needed through the company so that it is
negatively affects an organisation (Zsambok and Klein, 2014).
Environmental factors:- This factor influence the any kind of business whether the it is
big or small operated in the business units. This factor can easily impact on the business
functions effectively. This factor involves in the risk in climate changes, changes in geographical
location, socio cultural change and so on.
Positive Impact: In this company can use friendlily environment in their company like
machines, furnitures and so on in order to save environment effectively.
9

Negative Impact: In the negative impact climates has changes frequently in the areas of
geographical that can influence the people as well as performance of employees.
Legal factor:- By this factor every company have lot of competition within the market in
order to tough business environment. Now it is important for Yorkshire bank to follow all
legislations and laws that is emphasis by government in their specific area of working (Chetwood
and et. al, 2014). So that it will helps company to restart their business with in the new
segmentation of market.
Positive Impact: If company will take care or follow each and every legal rules and
legislations that involves in the employment safety, health safety act etc. therefore, it will be
influence positively in order to create good working environment within the market place.
Negative Impact: In the negative effect of legal factor keeps modification every time in
their laws. That's why it is hard for company to changes their policy accordingly, so that
sometimes company will not be able to connect with those new rules and regulation in their
everyday business functions and rules effectively.
TASK 4
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses.
It is essential for a company to evaluate its internal and external analysis so that they can identify
its strength as well as weakness, for this they may use various methods such as SWOT and
PESTEL analysis (Crane and Matten, 2016). Method used by Yorkshire Bank is SWOT analysis
which is given below:-
Strength Weakness
 The respective bank able to enhance its
pre tax earnings.
 They also able to diminish its
provisions of bad debts that show
increment in quality of assets.
 Respective bank earn as well as record
profit that determine its financial
position.
 Yorkshire Bank Cut off its employee’s rate
or numbers. That reduce moral of staffs
and this will directly impact on moral as
well as productivity of employees.
 The performance of respective bank gets
affected by various economic recoveries at
UK and Europe which impact on company
growth.
 Management is shutting down several
10

 They are also providing variety of
services such as personal, private and
business banking services
(Gharajedaghi, 2011).
branches of Yorkshire Bank in London,
United Kingdom which will impact on
customer’s base and employee’s
confidence.
Opportunities Threats
 Respective bank face various risk, due
to oppose party because they are
defaulting on their obligations towards
bank.
 They may also face problem related to
interest rate that impact on movement
of market rates in against of the bank.
 Yorkshire Bank goes through various
risks due to which group of foreign
exchange rates beside the bank.
 The main threat for Yorkshire Bank is
their competitors such as UBS, Barclays
as well as Standard Chartered.
P6 Explain how strengths and weaknesses interrelate with external macro factors.
External macros factors refers to those factors that impact on a company in an indirect
manner, such as those factors are political, economic, social and technological factors. In context
with Yorkshire Bank, they must analysis and identify strength and weakness of external macro
factors which help in improving knowledge (Gilboy, 2016). In order to this Yorkshire Bank
manager conduct analysis by using PEST analysis, which is mentioned below:
Political Factor
Strength- It is consider as a strength according to which a company need to develop as well
as maintain good and effective relationship with government bodies inside and outside
boundaries. This is so because by it an organization able to ensuring availability of
resources, trade medium etc. in easy and effective way. Along with this by it Yorkshire
Bank able to operate its business in effective manner at all level i.e. local, nation and
internal. This will also help in creating positive image, name and presence of respective
company.
11

Weakness- Due to this various function of Yorkshire Bank gets affected such as decisions
making process, independent operation, policies and procedure, rules and so on (Li and et.
al., 2011). So it is necessary for a company to implement or adopt a tough structure in order
to develop their own decisions.
Economical Factor
Strength- This factor includes various aspects such as cost of the product and services, rate
of interest, growth rate of the company and country, purchasing power of customer and so
on. In this context, Yorkshire Bank they develop their products and services according to
economic condition of customers or client.
Weakness- According to this manager of respective bank has to conduct analysis of market
in order to understand economy condition of customers and then develop products
accordingly. This is very hectic process and costly process to conduct analysis on regular
basis.
Social Factor
Strength- This factor refers to products and services which influences as well as includes
diverse tastes and preferences of customer of target market which will directly and indirectly
impact on decisions making process of Yorkshire Bank (Meiners, Ringleb and Edwards,
2014). Along with this respective factor also help respective company in growing its
business at national as well as international marketplace.
Weakness- Taste as well as preference of customers get update or change on regular basis so
it is very difficult for respective company manger to update or design products and services
at short duration.
Technological Factor
Strength- Through technological factor respective company able to conduct their work in
more effective manner along with minimum wastage. Moreover innovative technology also
help Yorkshire Bank to promote its business in more effective and efficient manner at both
national as well as international level.
Weakness- In order to adopt new technology respective company required huge amount of
funds as well as when they adopt new technology, management needs to train and develop
their employees accordingly which will also directly impact on budget of Yorkshire Bank.
12

CONCLUSION
From above discussed point it can be concluded as well as analysis that a person can start its
business in mainly three sectors i.e. public, private and voluntary. There are various type of
organization which is conducting its operations and functions in economy and they are having
diverse size, scope, purpose, target market, legal structure and many more. Before opening any
enterprise entrepreneur need to conduct market analysis so that they can identify its potential
market as well as customers for whom they are developing products and services. This analysis
can be done through various ways such as SWOT analysis, PESTEL analysis and so on. Through
these they able to evaluate its micro as well as micro environment that will also help in decision
making process.
13

REFERENCES
Books and Journals
Chetwood, M. K. and et. al, 2014. Transforming a legacy IT infrastructure into an on-demand
operating environment. U.S. Patent 8,775,232.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
designing business architecture. Elsevier.
Gilboy, G. J., 2016. The myth behind China's miracle. In SEEKING CHANGES: The Economic
Development in Contemporary China (pp. 1-16).
Li, Q. and et. al., 2011. Towards the business–information technology alignment in cloud
computing environment: anapproach based on collaboration points and agents.
International Journal of Computer Integrated Manufacturing, 24(11) pp.1038-1057.
Meiners, R. E., Ringleb, A. H. and Edwards, F. L., 2014. The legal environment of business.
Cengage Learning.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Saleem, M. A., 2017. The impact of socio-economic factors on small business success.
Geografia-Malaysian Journal of Society and Space. 8(1).
Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain
management (Vol. 17). Springer Science & Business Media.
Türetken, O., and et. al., 2011, June. Enforcing compliance on business processes through the
use of patterns. In ECIS (p. 5).
Vaiman, V., Sigurjonsson, T. O. and Davidsson, P. A., 2011. Weak business culture as an
antecedent of economic crisis: The case of Iceland. Journal of Business Ethics. 98(2).
pp.259-272.
Wack, P., 2017. Shooting the rapids. Historical Evolution of Strategic Management, Volumes I
and II, 1, p.121.
Yu, W. and Ramanathan, R., 2013. Business environment, employee competencies and
operations strategy: anempirical study of retail firms in China. IMA Journal of
Management Mathematics. 24(2). pp.231-252.
Zeng, L., Li, L. and Duan, L., 2012. Business intelligence in enterprise computing environment.
Information Technology and Management. 13(4). pp.297-310.
Zsambok, C.E. and Klein, G. eds., 2014. Naturalistic decision making. Psychology Press.
Online
Business environment. 2018. [Online]. Available through:
<http://www.investorwords.com/19252/business_environment.html>.
14