Firm Structure and Its Management : Report

BUSINESS
ENVIRONMENT

EXECUTIVE SUMMARY
TSB bank is a commercial and retail bank enterprise in United Kingdom. Chairman of
TSB bank is Richard Meddings and Chief Executive is Paul Pester. In 1995 TSB is used as
trustee saving bank prior to its merger with Lloyds bank. Companies are providing core products
such as life insurance, general insurance, commercial banking and retail banking. TSB bank is
having its headquarters in UK, Scotland and Edinburgh. Organisation are having 550 location of
branches, 5 operations centres and 2 centres of telephone. TSB bank is adopting a divisional
structure in their companies and they manage them in a very efficient and effective manner.
PESTEL environments are giving benefits to organisation and external environment give impact
on companies such as micro and macro environments.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK ..............................................................................................................................................1
1. Organisation structure, its management and how it governed................................................1
2. Benefits for conducting PESTEL analysis .............................................................................3
3. Forces of external environments impact on TSB bank...........................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
1

INTRODUCTION
Operating an enterprise, it is necessary to understand environment of business for running
of an organisation at a place successfully. Factors of environment impact each aspect of
enterprise like its location, nature and system of distribution and product price. Hence, it is
necessary to understand different elements of environment of business which includes
technological, framework of political, aspects of socio cultural, legal etc. TSB bank is a
commercial and retail bank in the UK that is selected from the present study. In 1995 TSB is
used as trustee saving bank prior to its merger with Lloyds bank. TSB bank is having its
headquarters in UK, Scotland and Edinburgh (Agbim, Oriarewo and Zever, 2014). It is having
550 location of branches, 5 operations centres and 2 centres of telephone. TSB bank core
products are life insurance, general insurance, commercial banking and retail banking. In this
report discussed about firm structure, its management and how it governed, benefits of analysing
PESTEL along with general forces of external environment which impact on organisation.
TASK
1. Organisation structure, its management and how it governed
Organisation structure
Divisional structure is a collective functions which gives their product. It utilized their
plans for operate and compete as a centre of profit. Responsible workers for some services are
placed in the structure of divisional for raising flexibility. Divisional structure are mainly
managed by their own and focus on narrow aspects of firms services and their products.
TSB bank is adopting a divisional structure in which authority are delegated so their
performance can measure directly with every group. Outcomes of managers are performing
higher and better morale of their workers (Chow and et. al., 2011). Structure of divisional are
more efficient while working in coordination between various department of bank and having
much flexibility for responding to a market changes. Organisation is having a same process if
they have to modify enterprise size by eliminating or adding departments in structure of
company. TSB bank is following a divisional structure in which director gives authority to three
departments deputy and chief managers of company which are telecommunication
standardization policy of department, study groups department and planning and operations
2