Business Environment, Its Nature and Significance - Report

Added on - 21 Jul 2020

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Business Environment
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1. Different types and aims of those firms...........................................................................1P2. Sizeand scopeof different types oforganisations..........................................................................................................................3TASK 2............................................................................................................................................3P3. Relationship betweendifferent organisational roles and how theylink to goals andstructure.................................................................................................................................3TASK 3............................................................................................................................................5P4. PESTLE analysis of Royal Bank of Scotland and HSBC................................................5TASK 4............................................................................................................................................6P5. Internal and external analysis of banks to know their strengths and weaknesses............6P6. Strengths and Weaknesses interrelate with external macro factors.................................8CONCLUSION...............................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONBusiness is a set of activity which deals with the production of good and services by aorganisation. Manufactured goods are sold in the market and the owner company earn by profitby them. Businesses are not confined to this particular description but there are some activitieswhich are also part of it. For success of any enterprise there are some factors which need to betaken care off. These elements make a business environment and any variations in these wouldeffect the company. Changes could give positive as well as negative results to them. It willinfluence almost every aspect of an organisation, it can be nature, its location, prices of theirproducts, distribution system or the personnel policies. So every component of the surroundinglike socio-cultural, political, legal and technological factors need special attention. This reportwill be dealing with various concepts of business environment, its nature and significance.HSBC, Royal Bank of Scotland and National Trust are the three organisation which will be takenin account for this report. All three are categorised on the basis of their ownership i.e., private,public and voluntary respectively. Royal bank of Scotland and HSBC are from banking sectorand are one of the prominent banks of UK.TASK 1P1. Different types and aims of those firms.Businesses can be classified on different basis because it is hard to define it on any singlecriteria. In the business there exist lots of organisation who has different goals and targets, theseall targets they want to achieve in specific period of time. Depending upon the nature, ownership,size and revenues they can be categorised into different types. At larger level people generallydefine organisations on the basis of their ownership. Ownership can be private, in which privateindividual is responsible for all doing. Whereas there are companies exists in the market whichare under government control. Following are the types of sectors which are classified on thebasis of their ownership:-Private Sector:This sector has companies which are owned by the private individualsand are not part of government. They offer their shares to the public in the stock market and itcan be traded and exchanged privately. Such type of firms have a great significance in theeconomy of UK because they add a value to different aspects of it. It generates a largeemployment opportunities and help people to grow their ideas & innovations. Growth of this1
sector is a sign of good economy. Enterprises whether small or big which falls in this categoryhas ultimate goal of earning profits. They manufacture their respective products and sell them inthe market with different strategies. Selling gives them revenues which they can utilize indifferent areas. Their business ideas and strategies are focused on increasing market share,maximizing sales and increasing the productivity. Financing of this sector companies are fromsavings of the owners, loans form banks and the subsidies which government provides. A privateorganisation can have one or more owners and they can also operate into partnerships.Depending upon the percent of the partnerships, their decision making depends. Sole traders,partnerships and franchises can be some examples of this sector. They cab be also called ascorporations, limited companies, limited liability and unlimited companies depending upon thewhere and how they are organized. HSBC which is a multinational bank, has made its mark inthe international market. In UK it is one of the largest bank.Public Sector:This sector is totally governed by government and they exercise all theactivities of it. All its tasks are managed by the government officials or managers who areappointed by the governing body. They can be owned by various types of government likefederal, provincial, state and municipal governments. Generally, these are related to power,health, education, telecommunications and infrastructure. All the taxes which citizens of thatcountry pays are used for financing these type of industries. These firms provides a security totheir public by giving various benefits like fair prices of the products and services. In aneconomy where all the market is covered by the private companies there might arise situationswhen they are constantly increasing prices. So in that condition this sector will be of greatimportance because they work in the interest of public. Such industries break monopoly in themarket because they know if there will be monopolistic situation, then that firm will controlmarket according to their needs. Royal Bank of Scotland has developed a trust among people andcontinuously giving their services from last 280 years.Voluntary Sector:The third sector of the economy operates its operations in order toserve the people without making any profit. Their purpose is to add value to the society bycreating an impact from their initiatives. They know that if al will be well in the society thenautomatically a country will grow in all areas. Such sectors consists of NGOs, charitable trustsand social groups, who are constantly working for the development of people. Normally they2
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