Analyzing Business Environment Factors

This assignment examines the crucial role of external factors in shaping a company's success. It emphasizes the importance of analyzing various elements within the business environment using tools like PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) and SWOT (Strengths, Weaknesses, Opportunities, and Threats). The analysis helps companies understand how these factors can positively or negatively affect their activities, ultimately influencing growth and performance.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
P3 Relationship between various functions of a business for accomplishing objectives and
targets.....................................................................................................................................1
TASK 2............................................................................................................................................3
P4 Positive and negative impact of macro environment analysis with specific example of
business...................................................................................................................................3
P5 Internal analysis of business for evaluating strength and weakness.................................5
P6 Relationship of strength and weakness with macro environment analysis.......................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business possibility to get sustain at market area completely depend upon its ability of
understanding macro and micro environment. Such analysis enable and support them to gain
better and effective outcome so that better and suitable gain could be estimated (Cascio, 2018).
Business firms need to assess and understand the dynamic nature of business properly so that
better and suitable gain suppose to be estimated. This project is based on business environment
which define about the size, scope and various kinds of firms. It will also define about
interrelationship of various functions properly so that business objectives could be fulfil. It will
also define and signify about the positive and negative attribute of macro environment of
operations with their relationship of micro environment analysis. This project is based on HSBC
which is one of a banking or financial sector firm of the UK. Along with this some other
associations which used to include in this project are Crown Prosecution services whom which is
a public company and used to operate for social purpose but not based on profit to an extent.
The NGO which used to cover this project is British Heart Foundation.
TASK 1
Covered in PPT
P3 Relationship between various functions of a business for accomplishing objectives and targets
There are various functions and considerations are taking place in business and its
environment whom support such entity to manage and maximise their working and generate
more and more profit as well (Deasy and et. Al, 2016). It is really important for business
managers to utilise such functions in better and definite manner so that profit margin could be
enhance and manage. With such functions suitable and appropriate working, organisation
become able to accomplish their targets properly and in better frame so that effective evaluation
of work could be done. Business need to define their structure properly and in better manner as
well so that efficient and effective gain could become possible. This project is based on HSBC
whom are one of a major financial service providers at UK. They used to evaluate all major
functions at workplace in better and effective manner so that management could become able to
generate more profit which further support in deriving efficient gains. The various functions
which used to present at HSBC bank are define and signify as follow:
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 Research and Development: They are the significant one which assume the liability of
all sort of creation and also development (Eling and Schaper, 2017). Research division
required to explore and examine things legitimately with the goal that better and
successful working assume to complete. Along these lines, such division need to cop up
and consolidate their working with different capacities too. Like they required to join
their working with showcasing group so all new and late patterns could be survey which
receive by contenders so one stage ahead development or advancement complete. HSBC
need to maintain and manage their innovation on time where they suppose to have to
launch their application properly. This will support them to provide diverse number of
opportunities for their ultimate clients. Hence, a better satisfaction suppose to be define
which enable them to enhance profit and growth margin of a company (Goleman, 2017). Human resource division: Another division which major mindful to enlist and select
immaculate person which contribute in general working of business are HR. Chief
empower and assess the capacity of every single individual appropriately and decide the
empty position. This survey and empower an association to assess all significant thing
and support to fill such remain positions. They required to cop up the work with other
piece of business too like at showcasing division they have to satisfy deals singular
position. This complete by giving occupation promotion and particular. Another function
is HR department which enable and facilitate to maintain effective working by recruiting
efficient operations. Thus, they need to facilitate their work with marketing division so
that efficient work could be done (Hillary, 2017). HSBC bank need to understand the
relationship of both units which further enable them to gain market share and manage
efficient working as well (Typical business organisation departments and functions,
2018).
 Finance department: This division work is to oversee budgetary reports of an
organization and additionally to keep up inflow and surge of money also. They
additionally view on accessibility of cash in a firm with the goal that fitting and
reasonable working towards tasks get oversee and keep up. Back office need to help
different divisions of an organization legitimately with the goal that better and powerful
working complete. At whatever point advertising group will going to deal with any
occasion to help up the deal they required some cash or store so better and strong
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working should be possible. Hence, finance division of HSBC bank need to perform their
work in better and effective frame of reference by align it with other units. This will fulfil
their overall accomplishment of targets which formulated on the basis of annual year
consideration (Kew and Stredwick, 2017).
TASK 2
P4 Positive and negative impact of macro environment analysis with specific example of
business
HSBC has got 7500 offices in more than 80 countries of the world where they used to
deliver effective and better quality financial services to each and every individual properly. Some
major competitors of HSBC are Barclays bank, Royal bank of Scotland etc. All these business
provide better and effective services and reflect a tough competition to HSBC bank. Thus, it is
really important for business to determine the macro environment aspects properly so that they
could maintain a healthy competition at market area as well as to maintain their competitiveness
at sustainable environment (Kolk, 2016). Thus, this used to utilise and organise a PEST analysis
on company and its working through which better and effective operation assessment could be
done which enhance absolute working operations. The PEST analysis for HSBC bank limited is
define as follow with all associated positive and negative attribute on company working
operations:
Basis Meaning Positive Negative
Political This is a major thing where
government or political
party of a country used to
formulate policies related
with trade etc. Thus,
business used to understand
about the government
interventions properly for
better and suitable working.
One of a major
positive attribute
which used to support
by government of UK
to HSBC bank is
related with policies
where government is
stable in nature which
support and provide
strength to HSBC
working operations.
Some negative
influence is related
with consumer
behaviour or with their
interest where
sometimes
management of HSBC
forget them and not
understand the clause
associated with such
policy. This restrict
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them to operate in
better frame where
government used to
highly taking
involvement in such
practices.
Economical It is related with
employment rate and
unemployment rate of a
country. Although,
economical condition of a
country enable and facilitate
them an option to manage
working at vast level.
Business need to understand
and determine them at vast
level and economical aspects
of a region as well so that
better and effective working
could be done.
HSBC used to provide
a better and suitable
economic strength as
they already operating
as a global finance
service provider which
support at the time of
economic crises as
well. This reflect
positive strength to a
company which enable
them to manage
working at vast level.
A major and
considerable negative
influence on business
from economical
crises is associated
with depression and
unemployment. Hence,
this could be a major
issue for a company
and its working where
chances of
inappropriate gain
would become
possible.
Social It is related with the society
and their attributes in better
and developing frame of
reference. Although,
consumer aspects, recent or
future trends, lifestyle,
leisure all define the social
aspects towards business and
need to understand properly
for delivering product and
HSBC is one of a
financial services
provider whom used to
deliver suitable offers
to society. Like they
used to charge lesser
rate of interest on
loans like housing and
education. This used to
made positive
One of a major
negative influence of
society is related with
cheat and unethical
practices. Like many
of their clients used to
failed in paying debts
at various regions
which used to
influence their
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services. goodwill of a company
towards society.
financial strength at
long term.
Technological This is related with speeding
up of working in better and
definite manner. This could
be related with internet
working where management
become able to expand their
operations in better and
effective manner. A
technological expansion
enable them to improve
communication process.
Technology made a
positive aspect on
business and its
working where firm
managers become able
to interact with vast
number of individuals
properly by analysing
trends as well.
Although, this
advancement also
enable them to expand
and manage operations
in better and signified
manner.
A negative influence
on HSBC could be
define as expansion of
fraudulent activities.
From past few years,
number of unethical
activities getting
expand which create
negative influence on
working operations of
HSBC finance
providers which reflect
and create obstacle in
their working.
P5 Internal analysis of business for evaluating strength and weakness
Business needs to be more focus on their working which enable and facilitate them to
grow and expand their operations as well (Prajogo, 2016). Thus, they need to understand the
micro environment factors or internal elements properly so that they could facilitate and maintain
strength towards working and operations. This project is based on HSBC bank whom used to
evaluated that their operations are going in right and appropriate direction or not. For this,
management used to conduct and organise a internal analysis for their working so that better
efficiency in their working operations could be maintain and manage. This internal aspect used
to influence the decision making process of a company. Before organising SWOT analysis on
HSBC bank, they need to understand a basic estimation of such consideration which direct and
signify as follow:
 Strength: It is also define and signify and need to understand about the strength of a
company,. HSBC need to understand the strength of themselves where first they need to
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listed in stock exchange of a New York. Although, another strength for every business is
their profit rate and revenue growth rate which enable and support them to manage work
in better and definite course of time (Smith, 2017).
 Weakness: Business need to determine their weakness in an appropriate and suitable
manner. Although, they need to create their strategies as per the weakness which further
enable and support them to deal and manage various considerations and aspects properly.
Some weakness for any organisation could be evaluated in the form of brand name or in
the form of poor performance . Hence, such weakness need and required to address in
definite manner of course which reflect better profitability and growth (Sodeyfi, 2016).
 Opportunities: Business need to understand evaluate all major opportunities at target
market world. Although, for many companies they need to understand all relevant
opportunities at market world properly like emergence at criteria world etc. Hence,
managers of a company used to understand and determine the relevant market area
properly.
 Threats: A firm need to determine the relevant threats and danger at market world
properly especially at the time of globalised world (Wack, 2017). Like number of
competitors etc. which used to understand and determine in better and suitable gain.
Although, managers need to understand the relevant danger and threats properly so that
effective and efficient gain could be estimated.
Below is a table which used to present about the SWOT analysis of HSBC bank. This
analysis is essential for managers of a company so that effective and better strategies could be
determine which used to concentrate at macro world as well as need to estimated micro factors in
better frame:
STRENGTHS WEAKNESSES
One of a major strength for a company is
record profit. Business have sufficient fund
and profit at the end of each year which
enable and facilitate them to gain market
share and work as a major strength for a
company. Although, a reason behind this
strength is already listed in London stock
A major weakness for HSBC bank is poor
performance. From past many years, every year
by year, business try to fix and overcome from
major issues and problems arrives at business
world. Some other and major issues are also
associated with brand name of a company which
could be impacted by the inappropriate brand
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exchange. name which could be done due to more influence
of fraud activities from past few years.
OPPORTUNITIES THREATS
Some major opportunities for HSBC is
related with the growth and determine
consideration at the emerging market world.
Like they could expand number of operations
in some major countries like France, India
etc. where business suppose to charge lower
interest rates which enable them to establish
them at such world.
Some major threats for HSBC is related with
number of competitors where Barclays etc. are
some determined rivalries. Although, they again
moved back to China where they have to
understand all associated laws which create
problem in their working. These are some major
threats for a business like HSBC banks.
P6 Relationship of strength and weakness with macro environment analysis
Business managers need to understand and underpin the relationship of micro factors
with strength and weakness (Zidar and et. Al, 2016). Managers of HSBC need to understand
about the relationship of each and every PEST factors with strength and weakness of a company
so that better and supportive working could be manage and enhance. This enable and support
them to organise various operations in better and definite manner so that appropriate outcome
could be sustain. This project have to align the relationship of macro factors with inner abilities
and disabilities which reflect them to become more capable where chances to met with definite
outcome could become possible.
Although, possibility to enhance profit as well as creation of customer base become
possible through such relationship (Cascio, 2018). Through this relationship better and suitable
working could be done. The relationship of such aspects used to define properly by taking HSBC
bank into consideration: Political: Government is stable in UK where chances of fluctuation in policies are
relatively low in nature. Thus, this will reflect positive attribute towards business and its
working so that maximum return could become possible. Thus, a major reason business
sustainability is record profit from past few years which clearly enable them to support
government at the time of requirement. Although, management perform this section at the
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time of Brexit where small operators used to gain support from banks (Deasy and et. Al,
2016). Economical: Another thing which reflect weakness could be economical crises. Like at
the time of 2008 depression changes lifestyle of many individuals. Hence, at the time of
Brexit economical condition of a country become so depressed where the debt outcome
and number of records tend to rise. This reflect weakness towards business and its
working which could be improved through better and definite strategies. Social: Another aspect of PEST is related with social attributes of society where the need
to understanding about market scenarios is must (Eling and Schaper, 2017). Although,
managers have to understand and determine about the trend of customer properly and
then deliver their services. One of a major weakness could be frequent changes in user
demand and attribute. Thus, it could be gain weakness to a HSBC working and operations
which need to improve in better and definite frame of reference.
 Technological: The last aspect of PEST signify strength to a company where they could
expand operations and reduce the paper world. HSBC used to launch their application at
market world which enable and support in provide various opportunities for their clients
like online transfer etc. This enable them to gain better competitive advantage which
suppose to define and determine better and appropriate outcome. Thus, such could be
reflect strength to a company and its working (Goleman, 2017).
Such strength and weakness need to relate with macro environment factors so that better and
efficient working could be done which further reflect in deriving appropriate outcome in the
form of customer base. Such aspects used to evaluated by business managers of HSBC for
reflecting strength (Hillary, 2017).
CONCLUSION
From the above given information, it can be summarised that analysis of external
environment is very essential for a business enterprise to operate in better manner and to sustain
in market for long run. Various type of organisation with different size and scope operate in
business environment. Structure adopt by companies play a big role in its growth and largely
affect its performance. Mainly, analysis of various factors exist in external environment is very
essential for a business environment and for this PESTLE can be utilise by company. Various
elements such as political, technological, legal and many more affect business activities in
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positive and negative manner so analysis of all external factors should be done in effective
manner. SWOT is another tool that can be utilise by managers to examine the internal
capabilities of company.
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REFERENCES
Books and Journals
Cascio, W., 2018. Managing human resources. McGraw-Hill Education.
Deasy, S. and et. Al, 2016. Controlling use of a business environment on a mobile device.
U.S. Patent 9,247,042.
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.
Goleman, D., 2017. Leadership That Gets Results (Harvard Business Review Classics). Harvard
Business Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan
Page Publishers.
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.
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.
Smith, S. S., 2017. Strategic Management Accounting: Delivering Value in a Changing
Business Environment Through Integrated Reporting. Business Expert Press.
Sodeyfi, S., 2016. Review of literature on the nexus of financial leverage, product quality, &
business conditions. International Journal of Economic Perspectives. 10(2). pp.146-150.
Wack, P., 2017. Shooting the rapids. Historical Evolution of Strategic Management, Volumes I
and II. 1. p.121.
Zidar, M. and et. al, 2016. Review of energy storage allocation in power distribution
networks: applications, methods and future research. IET Generation, Transmission &
Distribution. 10(3). pp.645-652.
Online
Typical business organisation departments and functions. 2018. [Online]. Available
through: <http://www.open.edu/openlearn/money-management/organisations-
andmanagement-accounting/content-section-4.1>.
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