Business and Business Environment

This presentation provides an overview of the business environment, including different types of organizations, their size and scope, and their impact on the business world. It includes case studies of HSBC and Bank of England to illustrate the concepts discussed. References are also provided for further reading.

BUSINESS AND BUSINESS
ENVIRONMENT
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Content
• Introduction
• Different types of organisation
• Size and scope of different types of organisation
• References
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Introduction
Business is considered as a set of activities such as
marketing, purchase, producing, sales of services and
products.
Whereas internal and external conditions in which firms are
performing its above mentioned activities is known as
environment.
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Different types of organisation
There are three types of organisations that are operational
throughout the world. These are categorised according to
their operations and purpose they want to achieve from
their set up. Three types of organisations are private,
public and voluntary. They are operational under three
sectors primary, secondary and tertiary.
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Cont...
Public sector companies are operating under the hands of
government and share its profit with people. Private
sector firms aims to make maximum profit that to goes to
only owners of the organisation. Whereas voluntary
organisations aims to serve people, generally not owned
by single people but a group is certainly responsible for
its decision making process. HSBC is one of the largest
private sector bank in UK.
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It is subsidiary bank that has operations in the field of
personal finance, private banking, commercial banking,
investment or corporate banking and consumer banking.
On the same page Bank of England also comes from the
same industry and is one of oldest banks in the world
whose funds are now being raised by Government of UK.
It is second most oldest central bank still operational in
this world. It is independent for setting its own monetary
policies. It helps government in its financial operations.
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Voluntary sector banks such as Co-operative bank helps
many people by providing them loans at lower rates and
are serving in public interests.
Legal structure for Bank of England suggests that the
company is under government and is owned by Treasury
Solicitor Of UK. But have its own set of officials that are
indulged in decision making process and setting up of
monetary policies.
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Size and scope of different types of
organisation
There are different structural formats in which organisations
are being set up. These set ups are according to the goals
that company aims to achieve. Structures are formulated
to achieve objectives effectively. Private sector
companies aims to attain higher profits from its business
activities.
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Cont..
HSBC comes under the category of private sector
companies. In order to understand the size of the cited
company these points needs to be checked:
 It has approximately 8500 employees working in it.
 Before paying taxes it has made a profit of around 2971
million pounds.
 Its total assets cost to around 797,289 million pounds.
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 It is one of the four major clearing banks operational in
UK and is operating at approx 1800 sites.
 It has approximately 4400 offices around the globe.
 It has 90% loan deposit ratio and is one of the five major
banks of UK.
 Its customer throughout the world numbers to 38 million.
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Scope of the cited company:
 Due to its high deposit ratio it can come in new sectors
of banking.
 It has its expansion scope in South Asia pacific and
African countries.
 UK is a large economy and in the present era when it is
moving out of EU, investor needs lot of loans which can
be given by the company.
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Size of Bank of England:
 It has employee strength of approx 3600.
 It has a cash reserve of around 408 billion pounds.
 It is second largest central bank in the whole world.
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Scope for the Bank of England:
 It can come into financial and investor market where it can
provide services to investors as well as to public.
 After Brexit banks this bank has a critical role in providing
stability to British economy.
 Company is in the business of printing notes and hence it has
to make more number of Pounds than Euros.
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References
Zalengera, C. and et. al., 2014. Overview of the Malawi
energy situation and A PESTLE analysis for sustainable
development of renewable energy. Renewable and
Sustainable Energy Reviews. 38. pp. 335-347.
Zott, C., Amit, R. and Massa, L., 2011. The business model:
recent developments and future research. Journal of
management. 37(4). pp. 1019-1042.
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THANK YOU
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