Business Environment and Organisations Analysis

The provided assignment is a comprehensive report that delves into the business environment and organisations. It covers a wide range of topics, including the functions of organisations, different sectors of industry, business enabling networks, and government support for entrepreneurs. The report also references various academic sources and research studies to provide a thorough understanding of these concepts.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ..........................................................................................................................................1
(Covered in PPT)....................................................................................................................1
P3 Relationship between functions of different companies...................................................1
TASK 2............................................................................................................................................4
P4 Negative and positive influence of macro environment....................................................4
P5 External and Internal analysis of companies to identify weakness and strength..............5
P6 Weakness and strength interlinked with external factors..................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is an very main term which comprises each factors which can
impact company indirectly and directly in any way. Therefore, a manager is going to start up
enterprise, an entrepreneur requirements for including all required factors which will provide
organisation success. Generally, environment of enterprise can compare into two types such as
macro and micro. Both impact enterprise either positively nor negatively. NATWEST is an
organisation which is selected in this project report as it is established in United Kingdom as well
as provide finance to peoples at a cheaper rate of interest. Main aim in this report is to
understand various forms of companies like as public, voluntary and private also analysed
PESTEL and SWOT within this assignment. Macro and micro components impact on the process
of decision making within company in a negative or positive manner. It is determine in a very
effective way.
TASK 1
(Covered in PPT)
P3 Relationship between functions of different companies
NATWEST is a broad retail as well as commercial bank which is established in United
Kingdom. They are giving management within the entire world. Cited company follow the
structure of hierarchy in their enterprise as well as indicated by positions, obligations, duties,
responsibilities and many more are divided in an effective way to firms employees (Hilton and
Platt, 2013). Mainly, department of top authority are having much responsibilities as compared
with lower level.
Their are different NATWEST objectives which are given below:
 It is important for managers to improve enterprise as it help them in development as well
as growth.
 It is necessary to give best quality of products to buyers at a cheaper rates. Hence every
and each type of particular person can purchase.
 If organisation profits can be improved then they can give easily returns to bondholders.
 They require to cater every as well as each financial instruments sort to their customers
within roof (Kolk, 2016).
1

 It is important for company to decline unnecessary wastage, so they can secure
surrounding in an proper and efficient way.
Various forms of companies functions:
It is necessary for each type of company to give better management and goods to persons.
So, that they can satisfy wants as well as needs of them in an efficient way. Its purpose in
NATWEST that there are different units as well as they are having their aims which are very
different (Overview of the Business Environment Working Group, 2017).
Certain business functions are explained in detail below:
(Source: Functions of organisations, 2018) Sales and marketing: It is important for every and each company to lead a research.
Hence, they satisfy wants as well as needs of consumers. In this, they can develop some
type of techniques as well as it may be linked with sales, promotional and pricing. It is
important for them to alter their previous products as outcomes can easily increase their
sales as well as productivity. This unit require higher investments so they can do proper
products marketing (Komatsu and et. al., 2012). Finance: It is required for managers to maintain companies records efficiently and
effectively. If they issues shares to persons they can raise finance easily for organisation.
Frequently, this division is linked with others due to its main aim to make budgets with
2
Illustration 1: Functions of organisations

others organisation department. In addition, it is necessary for company to keep effective
records of their all expenses as well as revenues. These important obligations is to give
each section budget. All they require to flow in an effective way. With that they have to
decide pay wages and roles to their employees. Human resource: Various responsibilities of department is to manage HR of
NATWEST. If managers of business needs to improve labours performance then it is
necessary for them to provide training. In addition, it is important to cater best working
environment to them so they can accomplish task properly. As outcomes, it will help in
retaining and workers to do their work within a given time limit. If organisation manager
want to encourage employees then they can provide extra advantages, rewards,
commission and many more. It will improve work properly. With that, manager can
organise certain type of motivational and training activities for employees. As it will help
them in raising their performance of work. Administration: Main purpose of this unit give support to task of company. It is
important to employers of the company in an effective manner. Departmental employees
so their work as a link within senior manager and employees of NATWEST. With this,
they have to stimulate their employees (Lee, Sohn and Ju, 2011). So, that they can satisfy
objectives and goals efficiently and effectively. Important obligations of department is to
give require data nad information which is linked with research. Along with that, they can
arrange achieved in an effective manner. Production: It is important for each company to get assets properly so that employees
can use them in an proper way. Managers of organisation can use certain approaches for
this as well as it may consists batch, flow, job and so on. If employer have to decline
unnecessary price then it must give training to employees. As outcomes, they can
accomplished their task in an efficient and effective way. In additionally, it unwanted
price is removed them workers can complete budgets and goals.
 Research and development: This is important for each type of company as manager has
to analyse their wants and needs of their purchaser. So, they can complete on time. With
this, they can easily alter their services as well as goods in an proper manner.
Development and growth of business is generally depend on units. If efficient fund is
available for them, they can work more effectively. As outcomes, they can easily take
3

benefits from their competitors within a market as well as increase their value within
market.
TASK 2
P4 Negative and positive influence of macro environment
External environment can directly effect company as well as kind of components is not in
control. It is very complex to determine their factors. With this, it is important for manager to
measure their influence due to it can indirectly or directly affect enterprise. In addition, business
can create certain techniques and plans for above stated aims.
If employers of NATWEST have to find out these factors which affect enterprise either
negatively or positively, then it is necessary for them to organise analysis of PESTEL, utilization
of their methodology is very easy as well as manager can easily analyse environment more
clearly (Othman and Rahman, 2014). It also enhance strategic development as well as external
thinking by the help of research, companies chief can easily analysed threats as well as destroy it
from enterprise effectively. Therefore, they can achieve desired targets and objectives in an
proper and efficient way. With that, it help them in beating competitors within a market. Hence,
it can easily improve reputation within market. If organisation director do not take effective
decisions within a limited period of time then also macro surrounding will affect enterprise.
PESTEL analysis are given below in detail: Political factors: Banking domain is very powerful as well as it is much wide within
nature. Developed laws by ministry body which affect their domain. For example,
interest rate. With that, it is necessary for organisation to know each firms laws in which
they are operating functions. Economical factors: This components as well as banking business, both are interlinked
with one other. Income of particular person can affect their purchasing power. By which
if NATWEST revenues is better then recession do not impact their actions. Social factors: Peoples values, beliefs, culture and many more can impact business
either indirectly or directly . Mainly, peoples are taking advice for bank loans from
workers, so they can give better aid to social group (Pikka, Iskanius and Page, 2011). Technological factors: As time dynamically changes, hence person are utilizing latest
techniques as well as tools within their enterprise. Today times, person can withdraw
4

funds by ATM, debit card and many more. With this they can easily transfer their
money by utilising applications online. Environmental factors: By using these application they can make friendly environment.
As outcomes, reduce of paper work at higher rate.
 Legal factors: It is important for NATWEST to follow every as well as each law, so
that they can give privacy and security to their customers.
P5 External and Internal analysis of companies to identify weakness and strength
In this business environment, it is mainly divided into two parts like as external as well as
internal within nature. It is affected by various problems as well as factors, because it is
important to effectively evaluate and analyse all factors in an proper way with the help of smart
as well as new approaches (Rossi, Vrontis and Thrassou, 2012). For analysing, analysis of
SWOT approach can be utilised by firm within their working surrounding. By the help of SWOT
approach, properly finding out organisation weaknesses, strengths, threats and opportunities in
an effective manner. With that, internal surrounding involves management, workers, managers,
vision, mission and many more. In other hand, external involves: suppliers, buyers, rivals,
government etc. Additionally, NATWEST is an royal bank of Scotland group, it is a biggest
commercial as well as retail bank in United Kingdom. For determining this firms present status
as well as position, SWOT analysis approach can be used.
SWOT ANALYSIS
Strengths
 In present time, Royal Bank of Scotland owns a various franchises within global area by
the help of this RBS become one of a major group of financial in United Kingdom.
 This company use a powerful distribution network in its working surrounding, by the
help of this they can properly distribute the services of bank to all buyers.
 Successful tracking of records will develop a new banking goods as well as services.
 In this context of brand portfolio, over this year organisation is investing funds while
building a better relations as well as effective brand portfolio.
 NATWEST is successful in performing new bank goods as well as services and getting
better return on capital expenditure by the help of making a new revenue in their
enterprise (Rose and et. al., 2014).
5

 In this company is having high skilled employees, due to NATWEST organisation is
investing money within in the sector of training along with development. By the help of
this functions all workers will increase their working capabilities as well as skills.
Weaknesses
 This firms can not face challenges in current time by entering a new segment and has lost
small share of markets.
 This companies has required to invest money to utilise as well as adopt latest
technologies for accomplishing works within a given time and giving best services to
their buyers.
 By managers financial planning is not accomplished within a efficient as well as effective
way. Because in the ratio of current asset along with the ratio of liquidity is not represent
effectively.
 Leading weakness is controversies linked to internal audits of Royal Bank of Scotland,
which finish or damage brand name as well as image.
Opportunities
 The new system of taxation as well as are importantly influence on working surrounding
of a bank, by the help of this NATWEST will raise their level of probability.
 The low level of inflation rate of United Kingdom, which is stable within the external
marketplace. Latest as well as smart technologies assist in giving best opportunities to NATWEST. By
this, companies can maintain their loyal customers by giving better goods and services to
customers.
Threats
 Advances and latest technologies are manufacturing by their rivals that could be lead a
threat for business.
 NATWEST have to face lawsuits within their various domains.
 On a regular basis raising of business competition within a marketplace.
P6 Weakness and strength interlinked with external factors
Both internal and external analysis that are done by taking help of PESTLE and SWOT
analysis are both valuable (Chetwood and et. Al, 2014). These methods are helpful in easily
6

analyse complexities of small and large size of market. There are many distinctive targets of
SWOT analysis that are related to PESTLE also and these interconnections are stated as follows:
Political Economical
There are many standards and laws that
government made for assessing all business
activities and their relevance. All these laws
and regulations should be analysed by
organisation so that all task could get
completed in allotted time frame (Crane and
Matten, 2016). There are many policies which
are having impact upon operations of an
corporation and these laws are stated as
beneath:
 Change in import and export policies.
 Changes in globalisation and
liberalisation are having vast impact
upon business operations.
 If there are any changes occurred in
environmental policies then all these
should be studied by corporation so that
any problem could be raised.
This points shaving its own strengths and
weaknesses which are defined as below:
Strengths: Company is having a better
management and legal team which is efficient
in understanding all legal obligations in order
to perform all activities in continuous and
smoother manner.
Weaknesses: There are many laws and
legislations that must be taken into
consideration by management of NATWEST
There are many factors that must be comprised
in economical aspects and these elements are
level of income, inflow and outflow of cash,
rate of inflation and recessions along with
deflations. Strengths and weakness differs
country to country. For example, if there in any
strength in country then it could be weaknesses
in another nation. This pattern is analysed in
following ways which are defined:
Strengths: There are many options available
that make business operations successful in
different countries. For example, if income
level is high of consumers than they can buy
expensive products also and due to this reason
corporation is gaining larger amount of profit
(Gharajedaghi, 2011).
Weaknesses: Policies are hard to change.
7

company then it is to be analysed as when
corporation follows all these legal obligations
then it will bring complications in task
conductions.
Social Technological
Attraction of consumers towards products and
services of NATWEST bank are different from
culture to culture like languages and religion.
Strengths: This type of action is helpful in
fascinating larger pool of customers.
There are many tools and technologies which
are being used by NATWEST bank like
bringing all operations on internet and this type
of action is helpful in increasing number of
customers (Gilboy, 2016).
Strengths: Providence of high quality items.
Legal Environmental
Laws are getting change on frequent basis that
should be ascertained by corporations.
Weaknesses: All these short term changes in
laws are difficult to understand and strategy
could not be framed upon this.
Providence of the activities linked with save of
atmosphere and enhancement of society.
Strength: It aids to obtain the support of
manpower.
CONCLUSION
Above report is summarise as, business environment is dynamic in nature and also
includes very complexities that affect operations of corporations in negative and positive
manner. In order to conduct all business activities in most appropriate manner then complications
of business environment should be analysed and relevant implications should be employed in
operations of association. There are different type of organisations that differs from each other in
various manner like scope, purpose, vision, mission and legal structure affected on company and
overall performance of firm. There are multiple functional areas that play a vast and essential
role for completing and attaining all goals and objectives. There are two options that are useful in
analysing market environment and these are SWOT and PESTLE analysis.
8

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.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Dibrell, C., Craig, J. and Hansen, E., 2011. Natural environment, market orientation, and firm
innovativeness: An organizational life cycle perspective. Journal of Small Business
Management. 49(3). pp. 467-489.
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).
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Kolk, A., 2016. The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business. 51(1).
pp. 23-34.
Komatsu, S., and et. al., 2012. Are firms' voluntary environmental management activities
beneficial for the environment and business? An empirical study focusing on Japanese
manufacturing firms. Journal of environmental management. 105. pp. 121-130.
Lee, J. H., Sohn, S. Y. and Ju, Y. H., 2011. How effective is government support for Korean
women entrepreneurs in small and medium enterprises? Journal of Small Business
Management. 49(4). pp. 599-616.
Othman, Z. and Rahman, R. A., 2014. Attributes of ethical leadership in leading good
governance. International Journal of Business and Society. 15(2). p. 359.
Pikka, V., Iskanius, P. and Page, T., 2011. The business enabling network–a tool for regional
development. International Journal of Innovation and Regional Development. 3(3-4).
pp. 324-344.
Rose, E. L.,and et. al., 2014. International business. Pearson Australia.
Rossi, M., Vrontis, D. and Thrassou, A., 2012. Wine business in a changing competitive
environment–strategic and financial choices of Campania wine firms. International
Journal of Business and Globalisation. 8(1). pp. 112-130.
Online
Business environment within different sectors of industry . 2015. [Online]. Available
though:<https://www.ukessays.com/essays/business/the-range-of-business-
organisations-within-different-sectors-of-industry-business-essay.php>.
9

Overview of the Business Environment Working Group. 2017. [Online]. Available through:
<http://www.enterprise-development.org/organisational-structure/working-groups/
overview-of the-business-environment-working-group/>.
10