Business Environment Analysis

This assignment delves into the intricate relationship between businesses and their environments, drawing insights from nine scholarly articles focusing on global contexts. The research spans various aspects including external involvement fit (D., Feng, T. & Zhang, Z., 2016), cross-border M&A challenges (Caiazza et al., 2017), wicked business environment challenges (Camillus, 2016), and the impact of business environments on firms' strategies, capabilities, and performances.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1. Different types of Size, scope, object of organisation ...........................................................3
TASK 2............................................................................................................................................8
Interrelationship of the various function between organisations..............................................8
TASK 3............................................................................................................................................9
TASK 4............................................................................................................................................9
CONCLUSION .............................................................................................................................10

INTRODUCTION
Business environment includes external and internal factors which influence function of
organisation and employees. It creates opportunities and threats for business which are affected
by social, political, economic factors. This assignment is based on National Westminster Bank
commonly known as NatWest. Established in 1968 with the merger of National Provincial Bank
and WestMinster Bank and is the largest retail and commercial bank of United Kingdom.
Advantages, disadvantages, object of sole partnership, private, public sector is explained. SWOT
and PESTLE analysis give the highest impact on the operation of business.
TASK 1
Different types of organisation and their purpose
Public Sector:
This company is managed by shareholders but shares of this company can be publicizing
on the basis of stock exchange. Various objectives which helps in formation of organisation
some are welfare of consumer, self-reliance, public utilities etc. Its aim is to provide goods at
lower cost to its customers. Example of public sector organisation is Marks and Spencer.
1. Expansion and survival: For the development of public sector require more fund and
resources (Benmamoun, and et.al., 2016). The requirement of finance is completed by
issuing shares to public. Survival in this competitive environment is necessary for this
to do facility of additional finance.
2. Economic development and surplus: Main objective is economic growth in country
by earning maximize profit. It is important to generate surplus for reinvestment and it
can be possible by public saving.
Purpose:
It aims to provide the best product to its customers and at the lowest price. The purpose
behind is to provide best services to them which can attract more customers and encourage them
to produce more.
Legal structure of Marks and Spencer:
To increase the business, it focusses on partnership structure as it cost less and is easier to
set the business.

Advantages of public organisation;
1. Capital can be raise through public investment by issuing share them.
2. Availability of finance can be arranged easily through financial institution which are bank
etc.
3. Risk can be distributed to shareholders by selling shares.
4. Shares can be transfer to other companies and capable to do capital expenditure for
growth of business.
Disadvantages of organisation:
1. Issues are created about the control and ownership because in public companies, group of
persons working together.
2. Term is short, starting commitment of financial is higher and it required higher level of
transparency.
Private sector:
This is non- governmental organisation formed by small number of owners. These types
of organisations focus on making money and providing their best services to the customers.
Profit and Loss are maintained by individuals and they are themselves responsible for all the
ongoing. Example of private sector is Iceland limited.
Purpose:
Providing the best services and goods to their customer so that they can increase their
sale and profit margin in the market.
Legal structure:
Legal structure is developed accordingly so that the organisation is responsible for its loss
and debts incurred during the business. Proprietorship legal structure is followed by Iceland
limited which do not discriminate among the owner and the business.
Objectives of private sector:

1. To maximize profit: Aim of private company is to earn more profit to stand in market.
Stakeholder who have invested in company demand for the share in profit.
2.To choose right structure of organisation: For the interest of any business it is necessary to
choose correct structure (Kljucnikov and et.al., 2016). This type of company has some structure
which are limited liability company, corporation’s sole business. To select the best structure is
main objective of private companies because it helps to earn maximize profit.
Advantages of private sector:
1. The members of private firms are known to each other so that capital can be controlled
easily and flexibility is created between affairs and conduct of business.
2. Capital can be raised easily by selling shares and can be purchase and sold with the
approval of directors.
2. If any member of company is dies than it will not effect on existence of firm because it is
isolated from its partner or separate legal entity concept is followed (Caiazza, Shimizu,
and Yoshikawa, 2017).
Disadvantages of firm:
1. Formation of company is more expensive and take more time in set up of business as
compare to sole proprietorship.
2. The members of private firms are known to each other so that capital can be controlled
easily and flexibility is created between affairs and conduct of business.
3. Documents which are made to registrar to the company is send for public inspection and it have
Documents which are made to registrar to the company is send for public minor chances of
earning profit and raise sale.
Voluntary sector:
This type of business can be set up easily because requirement of resources is minimum. It is a
non-profitable and no involvement of government bodies. It provides basic necessities to the

disabled and the needy person. It aims at developing the society by giving social needs like food,
shelter, education and health. Example of voluntary sector is Leonard Cheshire Disability Trust.
Purpose:
Its main aim is to provide the required support to the disabled people in improving their
conditions. They focus on giving education and employment and basic needs to the needy. They
also provide financial support to the disabled people.
Legal structure:
Protecting human rights and providing them with the necessities is the core function of their
legal structure. It has adopted or followed the legal liability structure which help them to protect
their resources and right to their property.
Advantages of Voluntary sector:
1. Full control on business: Sole trader have full control on business because no need to discuss
with other about their decision (Bhowmick and Prasad, 2017). Daily activities are done by him
and chances to grow their company in market and increase the goodwill of business.
2. Accounting cost is low: Sole trader require low investment and no load of work is starting So
sole trader just need to prepare profit and loss account account and balance sheet. No
requirement of cash flow statement.
3. To start new business, it is not difficult task because minimum money is required in
investment. this trader not require any staff so that salary issue is not came in this case. In this
financial data are kept private and Lack of rules and regulations because this is managed by
single person.
Disadvantages of Voluntary sector:
1. Lack of resources for the operation of business
2. sole trade is not expert in such areas like marketing, financing, production etc. so
that problem of management is arise because of less knowledge of business.

Life of sole business is limited because this depend on the life of the proprietor. Death of sole
trader dissolve the business for lifetime.
Size and scope of different types of organisation
Scope and size of Marks and Spencer:
One of the biggest multinational retail company in the United Kingdom. It specialises in
selling clothing, home products and luxury food products. Also, known as M&S currently has
more than 900 stores across UK including over 600 which deals in food products only, it has
employed more than 80,000 employees in the organisation. It became the first company in the
retail market to make a profit of over £1 billion. Its scope is to increase the product quality and reach as
many customers worldwide.
Companies mission is to easily access to the customers worldwide and increase the quality of its product. It
focuses on delivering products in their home country as well as different part of the world. To provide products
at the lowest cost and to attract customers.
Scope and size of Iceland limited:
Iceland Foods limited trading as Iceland is a retail business and is a British supermarket chain. Mostly it is
known for selling frozen foods and prepared meals and vegetables. It also provides grocery items other than
frozen foods. Headquartered in Deeside, Wales, UK is located in more than 800 places. It has a share of 2.2% of
UK food market and over 23,000 employees under it. Net income of over £160 million and furthur they have
increased their sales and earned net profit of about £113.7 million which is approximate 16% growth in the retail
market.
The company aims at increasing its sales and provide best suitable products for their customer. It aims
to reach different countries with their services and increase its customers.
Scope and size of Leonard Cheshire Disability Trust:
Founded in 1948 by Leonard Cheshire is a charity trust working for the welfare and health and
developing projects worldwide. It works in encouraging and moving disabled individuals and providing support
to live independently. It provides training and education and employment for their development.
The main motive of the organisation is to help the disabled and give them a living and fulfil their basic
needs. Its aim is to help the needful in difficult conditions and give financial support and meet their basic needs.
It also provides higher support to the individual to develop in the society.

TASK 2
Interrelationship of the various function between organisations.
Marks and Spencer follows Line Organisational structure whereas Iceland limited is
following Matrix Organisational structure. Line organisational structure means all organisation
work under the single organisation. Power and authority in hand of main entity and have control
on small and medium enterprises (Ostos, Hinderer and Bravo, 2017). Members of this
organisation can communicate with their superior or with their subordinates. The shape of this
structure is look like a pyramid in which upper portion describe about the seniors or high
authority and lower portion is for employees and subordinate. In company managers,
subordinates, employee’s consumers all are involved and their activity affect the performance of
organisation.
Marks and Spencer is one of the worlds the largest retail companies and the purpose of
this organisation to achieve the target. Functions which affect the structure of organisations and
interrelated with each other:
1. To decide the objective: For the running of any business it is necessary to fixed the target
and do planning for their achievement. Objectives are related to success of business and
to earn profit (Doh, Luthans and Slocum, 2016.). This function of business affects the
structure of organisation because goal of employees and managers are different and they
individually try to achieve the goal. Team leader of group allow them to accomplish their
target in group because if aim of company is completed than aim of individual is
automatically completed. Sometime suggestions are given by employees and accepted by
higher authority which are beneficial for company. The sharing of ideas between
employees and manger make their relation strong and this affect process of organisation
to run smoothly.
2. Allocation of resources: To collect proper resources is the main function of company
because lack of resources affects the efficiency of organisation. If resources are not
utilized properly in organisation it causes loss to the productivity of organisation. Marks
and Spencer utilise their resources decently and it can be possible by their employees
who are efficient in working (Cai, Feng, and Zhang, 2016). This function of business is
performed by mangers as well employees and staff because work is distributed among

them. Some employees research on past information’s and compare them with recent
data. Choose the best alternatives than share to their seniors so that they can select best
option.
3. To fixed the responsibility: Duty is assigned to the individual and performance of their
work is check by organisational structure. If any employee is not performing their work
in well manner than it can be said he is irresponsible, bad attitudes and behaviours. This
affect the functions of company and value of business is reduced (Adebisi, Azeez, and
Oyedeji 2016). Mangers have to delegate responsibility to their subordinate according to
their skill and experience. Ability of worker affect the function of organisation structure
directly and indirectly manner.
4. Specialisation: Organisation required to promote specialisation because with the help of
this modern techniques for the better production which increase the performance of
organisation (Hansen and et. al., 2017). Different function is performed by expert person
of company which increase the value of business and help to attain desired goal. By
developing innovative idea, the employees build their image in the eye of managers and
their relation become strong.
5. To define the role of employees: For organisation, it is necessary to tell their employees
about their position and role so that they can identify themselves in enterprise. To
maintain the relation with other employees it is important to know about their position in
company (Camillus, 2016). If employees feel that management is giving importance to
their ability they more motivate toward work and give their best effort to company.
Structure of organisation is affected by the trust of subordinates on their department.
TASK 3
Enclosed in ppt.
TASK 4
Enclosed in ppt.
CONCLUSION
From the above report, it concluded that any type of business their main aim is to earn
profit and satisfied their consumers. In this report three types of companies are included where

one is a private sector business, second is public sector business and third one is voluntary sector.
All have some advantages and disadvantage and their scope and size is large, moderate, small.
All above firm is affected by the SWOT and PESTLE analysis. Function of every business is
related to organisational structure because without functions no business can perform their
activities.

REFERENCES
Books and Journals
Adebisi, S. A., Azeez, O. O. and Oyedeji, R., 2016. Appraising the Effect of Boko Haram
Insurgency on the Agricultural Sector of Nigerian Business Environment. Journal of
Business Systems, Governance & Ethics.11(1).
Baumane-Vītoliņa, I., Baumane-Vītoliņa, I., Apsalone, M., Apsalone, M., Sumilo, E., Sumilo,
E., Jaakson, K. and Jaakson, K., 2017. Ethical behaviour and honesty in post-Soviet
business environment. Baltic Journal of Management.12(1). pp.46-62.
Benmamoun, M. and et.al., 2016. Gulf Arab E‐Business Environment: Localization Strategy
Insights. Thunderbird International Business Review.58(5). pp.439-452.
Bhowmick, A. and Prasad, C. G., 2017. Time and Cost optimization by Grid Computing over
Existing Traditional IT Systems in Business Environment. International Journal.5(3).
Cai, D., Feng, T. and Zhang, Z., 2016. The Fit between External Involvement and Business
Environment: Evidence from Chinese Manufacturing Firms. International Journal of
Information Systems and Supply Chain Management (IJISSCM).9(3). pp.46-64.
Caiazza, R., Shimizu, K. and Yoshikawa, T., 2017. Cross‐Border M&A: Challenges and
Opportunities in Global Business Environment. Thunderbird International Business
Review.59(2). pp.147-151.
Camillus, J. C., 2016. The wicked challenge of the business environment. International Journal
of Business Environment.8(1). pp.19-31.
Doh, J. P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business: Introduction to
the special issue. Journal of World Business.51(1). pp.1-5.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research.258(3). pp.1082-1094.

Hansen, M. W. and et.al., 2017. Coping with the African Business Environment: Enterprise
Strategy in Response to Institutional Uncertainty in Tanzania. Journal of African Business.
pp.1-26.
Jaakkola, M. and et.al., 2016. Is more capability always beneficial for firm performance? Market
orientation, core business process capabilities and business environment. Journal of
Marketing Management.32(13-14). pp.1359-1385.
Kljucnikov, A. and et.al., 2016. The Entreprenurial Perception of SME Business Environment
Quality in the Czech Republic. Journal of Competitiveness.8(1).
Ostos, J., Hinderer, H. and Bravo, E., 2017. Relationship between the Business Environment and
Business Strategy Types: Evidence in Peruvian Companies. Universidad &
Empresa.19(32).
Prajogo, D. I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics.171.
pp.241-249.
Virglerová, Z., Dobes, K. and Vojtovic, S., 2016. The perception of the state's influence on its
business environment in the SMEs from Czech Republic.Administratie si Management
Public. (26). p.78.