Business Environment and Corporate Law Analysis

The provided assignment is a collection of research papers and articles on business environment and corporate law. It covers various topics including entrepreneurship and economic development, SWOT analysis, marketing plans, and accounting for private companies. The assignment also includes a review of culture as a successor of quality initiatives and an investigation of voluntary corporate greenhouse gas emissions reporting. Additionally, it provides information on regulatory competition of corporate law and the impact of business environment on business creation processes. The assignment aims to provide students with a comprehensive understanding of business environment and corporate law.

Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different purpose and types of organisations...................................................................1
P2. Size and scope of various types of organisations.............................................................3
TASK 2............................................................................................................................................4
P3. Relationship between various organisational functions and its link with structure and
objectives of enterprise...........................................................................................................4
TASK 3 & 4.....................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Surroundings in which commercial activities of a business takes place is known as
business environment. This is made up of large number of influences called internal and external
factors of business (Chavis, Klapper and Love, 2011). All these elements directly affect the
operations of a business. So, identification of these factors and their effect on the activities of
organisation is very important. NATWEST a private bank based in the UK is chosen in this
report for study. Types of business enterprises with their scope, size and purpose; all are detailed
in this report. Interrelationship of macro factors with the strengths and weaknesses of enterprise
along with assessing positive and negative impacts of these elements on the activities of
organisation are detailed here.
TASK 1
P1. Different purpose and types of organisations
Different types of businesses are carried out by large number of individuals with an aim
of earning huge amount of profits. For this, organisations first identify the needs of its customers
and after that, make products and services in order to better satisfy their wants. One of the main
purposes of almost every firm is to generate profits. Operations of a commercial enterprise get
affected by its size and nature. Big firms execute their activities on a large scale whether small
enterprise performs the same on a lower level. Various types of organisations and their purposes
can be understood by the following points:
Public limited company:
Firm which is owned and regulated by the government is refer as public limited
company. These type of firms make and deliver innovative products in order to satisfy the wants
of individuals and make a large amount of profit every year (Commander and Svejnar, 2011).
Shares are also issued by these firms to invite large number of customers to buy the shares for
raising funds. These type of enterprises keep PLC after the name of the organisations. A meeting
called annual general meeting is held by these types of companies in order to take suggestions
from its stakeholders regarding the various issues and decisions about the firm. Approval and
support of shareholders is very necessary before taking a big decision and action. For example:
Tesco is a public firm.
Legal structure of a public company can be understood by this:
1

General government: This is further divided into two parts: Central government: This is the apex body of government which control every activity of
whole nation. In the UK, state and central government both share the same powers.
Central government print money and collect taxes from the businesses. State government: This government control the activities of a particular state. This also
play a big role in controlling the activities of education universities and at the same time
enforce the education of children.
 Local government: Regulation of a small area like a city and town is done by this type of
government. Local government have small amount of authority to solve the issues related
with the specific areas.
Private company:
2

These type of firms are governed and controlled by the private hands with the aim of
offering innovative products to individuals and to capture a larger market share (Eckardt, 2012).
For example NATWEST. Private company is mainly divided into following parts: Sole trader: This type of private business is run and governed by an individual who take
all the important decisions regarding the business. He suffer all the losses and profits
related with the business. Partnership: This is another part of private business. Under this two or more individuals
work together for earning large number of profits. Main advantage of doing this is that it
increase the knowledge and skills required for executing business activities.
 Franchising: Under this form of business owner of a positive brand image give right to a
person to sell products under the name of his brand in exchange of some consideration.
Owner who give the person is known as franchisor and the individual who get the
permission is known as franchisee (Eisenberg and Miller, 2012). This is one of the best
strategy in today's competitive environment as this provide opportunity to an individual
to capture a larger market share.
Voluntary sector:
3

Firms which are controlled by some individuals with the aim doing development of
society is known as voluntary enterprises. Main motive of these firms is to provide basic
facilities to individuals so they can live a better life. OXFAM is an example of this which work
for remove poverty form the world.
P2. Size and scope of various types of organisations
Public sector enterprise: TESCO plc. is a public limited company and one of the biggest
retailer of grocery and merchandise products in UK. In term of generating profits, firm is the
third largest retailer. Today firm has more than 6653 stores in the world which generate more
than 55 million per year. More than 456400 employees are working there which help in
executing all the activities effectively and efficiently (Hamilton and Webster, 2015). All this help
the company in achieve its set target easily. Vision of the company is to make and deliver quality
product to its customers while mission of the company is to help the customers for making better
purchase decision and deliver them effective quality products.
Private sector enterprise: NATWEST (National Westminster bank) is one of the biggest
retailer and commercial bank in UK. Today firm is operating through more than 850 branch and
3000 cash machines in the whole Britain. Bank provide the facility of online banking by 24*7
and also active telephone banking during the working hours. More than 33000 employees work
in the different branches of bank and assist customers. At present firm serve more than 7.0
billion clients. Various efforts are done by the company for delivering effective services to its
customers.
Voluntary organisation: OXFAM is a charitable enterprise which is operating at on
international level with the aim of removing poverty from the world. For this various
programmes are conducted by the firm for addressing the issues such as injustice and poverty.
Firm help the individuals who does not have the capability fulfil their basic needs. For this
company work through more than accountable firms. Further this also assist the development of
different type of structures with the aim of provide benefit to the people who are suffering from
the poverty.
4

TASK 2
P3. Relationship between various organisational functions and its link with structure and
objectives of enterprise
NATWEST is one of the commercial bank in UK which provide number of insurance
related products and services to its customers for achieving the set objectives and targets. For
delivering and providing quality services to audiences it is very important that various functions
and activities of a firm should be executed properly. Main functions which should be effectively
performed by NATWEST in order to satisfy more number of customers can be understood by the
following points: Production and design: Before giving shape to final product and services, it is very
necessary for NATWEST to first undertake a survey in order to identify the needs of
customers. After that company can design effective products in order to get the attention
of large number of customers (Jayeoba, 2012). For this company can use various
strategies during the production process for getting efficiency in the business operations.
For this it is very necessary that company should have the necessary resources such as
labour, raw material and capital. Finance: Funds are required at almost every level of enterprise for execute the services
effectively. Lack of financial resources creates unnecessary obstacles and at the same
time create unnecessary delays in the commercial operations. In absence of proper funds
effective results will not be achieve by the NATWEST. So, it comes under the
responsibility of finance manager to first identify the requirement of funds in enterprise
and then make effective budgets as per the collected information so that company can
achieve the desired results. Human resource function: Manpower is one of the important assets of every enterprise
in today's business environment. It is very necessary for every firm to have a skilled
manpower to achieve the set targets. This function is done by the HR manager. He first
identify the skills and capabilities required in an enterprise and then set the criteria for the
recruitment process. Skilled employees help the firm in achieving competitive advantage
in the market and also contribute a lot in capturing a larger market share. Marketing and sales function: Various activities and research are done by the marketing
department of every enterprise to identify the needs and wants of customers with the aim
5

of satisfying their needs and wants. One of the main advantage of doing this is that it
provide opportunity to the firm to capture a larger market share by effectively satisfying
the needs of customers. This help the firm in gaining both short and long term advantages
in the market. Administrative function: This is one of the important departments of every enterprise
because this executes various activities such as sending e mails to customers, suppliers
and handling their complaints. Necessary and required documents are prepared by this
department. Furthers this department use various tools and techniques and play a role of a
link between management and employees. Collection of relevant information, conduct
meetings all this done by this department.
 Research and development: As the name implies, this department conducts various types
of research with an aim of collecting important data about trends existing in market and
about the tastes of customers (Klapper, Lewin and Delgado, 2011). All this provides
support to the top managers in formulating effective strategies sand policies regarding the
business.
So, for achieving better results and pre-determined objectives, it is necessary for
NATWEST to perform all these functions in an effective manner. It is because; all these
functions are directly linked with the success of business.
TASK 3 & 4
Covered in PPT
CONCLUSION
From the above report, it can be concluded that identifying factors which exist in
business environment and its effect on activities of business is very important for a firm like
NATWEST. For making effective strategies, external and internal analysis of firm can be done
by the managers. By this, they can identify the strengths and weaknesses of firm and make
effective policies regarding the management of business operations. By identifying the factors
which can affect activities of business on large level, managers can make an effective business
plan. Every function of an enterprise is important as this helps in delivering effective products to
a large number of customers. SWOT and PESTLE; both techniques can be used by the managers
of NATWEST for planning future activities of business and to capture a larger market share.
6

Further, by identifying the relationship between various factors of environment and activities of
business, firm can make and offer a unique product to its customers.
7

REFERENCES
Books and journals
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Eckardt, M., 2012. The European Private Company: Do we need another 28th private company
law form in the EU? On regulatory competition of corporate law.
Eisenberg, T. and Miller, G.P., 2012. The English versus the American rule on attorney fees: an
empirical study of public company contracts. Cornell L. Rev.. 98. p.327.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Jayeoba, F. I., 2012. NEED-GOAL INTEGRATION AND ORGANISATIONAL TYPES;
IMPLICATION FOR INDUSTRIAL RELATIONS. European Scientific Journal.
8(19).
Klapper, L., Lewin, A. and Delgado, J. M. Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp.
108-123). Palgrave Macmillan UK.
Klapper, L., Lewin, A. and Delgado, J. M. Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp.
108-123). Palgrave Macmillan UK.
Krishnan, A., 2013. Culture As a Successor of Quality Initiatives: A Review. International
Journal of Social Science. 2(1). p.53.
Love, V.J., 2011. Private company accounting: A concept whose time has come. The CPA
Journal. 81(2). p.16.
Macdonald, R., 2012. Unilever. A Strategic Analysis.
Madsen, D. Ø., 2016. SWOT Analysis: A Management Fashion Perspective.
McDonald, M. and Wilson, H., 2011. Marketing plans: How to prepare them, how to use them.
John Wiley & Sons.
Mojaveri, H. S. and Fazlollahtabar, H., 2012. Designing an integrated AHP based fuzzy expert
system and SWOT Analysis to prioritize development strategies of Iran agriculture.
Revista de Management Comparat International. 13(1). p.117.
Myers, M. and Korsmo, C., 2014. Appraisal Arbitrage and the Future of Public Company M&A.
Rankin, M., Windsor, C. and Wahyuni, D., 2011. An investigation of voluntary corporate
greenhouse gas emissions reporting in a market governance system: Australian
evidence. Accounting, Auditing & Accountability Journal. 24(8). pp.1037-1070.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Online
Business environment. 2017. [Online]. Available through:
<http://www.investorwords.com/19252/business_environment.html>. [Accessed on 12th
September 2017].
8

MARKETING THEORIES – PESTEL ANALYSIS. 2017. [Online]. Available through:
<https://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-
analysis>. [Accessed on 12th September 2017].
9