Business Environment Analysis
Added on 2020-07-22
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BUSINESSENVIRONMENT
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31. Different types of Size, scope, object of organisation ...........................................................3TASK 2............................................................................................................................................8Interrelationship of the various function between organisations..............................................8TASK 3............................................................................................................................................9TASK 4............................................................................................................................................9CONCLUSION .............................................................................................................................10
INTRODUCTIONBusiness environment includes external and internal factors which influence function oforganisation and employees. It creates opportunities and threats for business which are affectedby social, political, economic factors. This assignment is based on National Westminster Bankcommonly known as NatWest. Established in 1968 with the merger of National Provincial Bankand WestMinster Bank and is the largest retail and commercial bank of United Kingdom.Advantages, disadvantages, object of sole partnership, private, public sector is explained. SWOTand PESTLE analysis give the highest impact on the operation of business. TASK 1Different types of organisation and their purposePublic Sector: This company is managed by shareholders but shares of this company can be publicizingon the basis of stock exchange. Various objectives which helps in formation of organisationsome are welfare of consumer, self-reliance, public utilities etc. Its aim is to provide goods atlower 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 andresources (Benmamoun, and et.al., 2016). The requirement of finance is completed byissuing shares to public. Survival in this competitive environment is necessary for thisto do facility of additional finance.2.Economic development and surplus: Main objective is economic growth in countryby earning maximize profit. It is important to generate surplus for reinvestment and itcan be possible by public saving.Purpose:It aims to provide the best product to its customers and at the lowest price. The purposebehind is to provide best services to them which can attract more customers and encourage themto produce more.Legal structure of Marks and Spencer: To increase the business, it focusses on partnership structure as it cost less and is easier toset 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 banketc. 3.Risk can be distributed to shareholders by selling shares.4.Shares can be transfer to other companies and capable to do capital expenditure forgrowth of business. Disadvantages of organisation: 1.Issues are created about the control and ownership because in public companies, group ofpersons working together.2.Term is short, starting commitment of financial is higher and it required higher level oftransparency.Private sector: This is non- governmental organisation formed by small number of owners. These typesof 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 theongoing. Example of private sector is Iceland limited.Purpose: Providing the best services and goods to their customer so that they can increase theirsale and profit margin in the market. Legal structure: Legal structure is developed accordingly so that the organisation is responsible for its lossand debts incurred during the business. Proprietorship legal structure is followed by Icelandlimited which do not discriminate among the owner and the business.Objectives of private sector:
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