Analyzing Business Environments and Barclays

This assignment delves into the various factors influencing the business environment, categorized as micro and macro factors. It examines how these factors, such as political, social, technological, economic, and environmental aspects, can impact a firm's operations. The assignment specifically focuses on Barclays Bank Group, analyzing its strengths, weaknesses, opportunities, and threats (SWOT) while applying the PESTEL framework to understand the broader business context.

BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P 1. Different types of enterprises and their purposes............................................................1
P 2. Scope and size of range of various types of firm............................................................3
TASK 2............................................................................................................................................5
P 3. Relation between several organisational functions and its objectives............................5
TASK 3............................................................................................................................................7
P 4. Negative and Positive impact macro environment business operations:.......................7
TASK 4............................................................................................................................................9
P 5. Internal and external analysis of BARCLAYS.:.............................................................9
P 6. Interrelation of strengths and weaknesses.....................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................13

INTRODUCTION
It is essential for every firm` to understand the condition and environment in which they
are operating businesses. It determine that different elements exists in a environment utilise
to provide a wast level of influence on entire aspects connected with the units of the firm and its
nature, price of goods, management, positioning and standards and so on. Hence, it is true that
development and success of the business in relays on adoption of environment of business. In
which they are operating (Cantwell and et. al., 2010). factors affecting element external and
internal are not is control of the company and comes as a problem and utilise to hinder their
operation and actions. Such of factors are user, government, workers, technology, social group
and much more. Due to these factors the decision making of firm is affected. The present
report project is grounded on BARCLAYS . In this project different kinds of firms along with
their operation is going to be represented. Apart for it, discourse is also be completed on
their various context such as size, scope and legal structure. In addition to it, for determine the
impact of macro as well as micro conditions, swot and pestle evaluation has been conducted
effectively.
TASK 1
P 1. Different types of enterprises and their purposes
On the grounds of the size and purposes, company are divided into three divisions which
are private, public and voluntary. These all are differ form each other that can be determine by
below enlisted points:
Public sector : organization and company that are operating as or handled by the bodies of
government are falls into this segment. Such kind of firm has been manufacturing services and
product for the citizen at the lower price so that each and every division of the society either it is
rich or rich takes profits of all of these services. In the United Kingdom there are different sort of
public sector industries.
BARCLAYS is an multinational bank that are providing services related to the finance
and banking of the national citizen of the UK. Its profitability is recorded as nearly £3.230
billion and has create more profits of approx. £2.828 billion in the year of 2016. the
headquarter of the BARCLAYS bank is located in the London, United Kingdom and also
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propounded or established on 17th November 1690 in the metropolis of London (Carroll and
Shabana 2010).
Purpose : The main aim of this firm is to provide services to common person because they can
be able to survive without hurdle in the nation. It is noted that they are not enthusiastically
interested in creating larger or higher sum of benefits like of private organisations.
Legal structure – the management of public sector firm is different and separated on the basis of
such specified locations like as, central government, local authorities, sate government and a lot
more that are enlisted below:
 Central government has all of administrative and management sector of particular state
and other unit of centres whose responsibility is to determine the whole of region of the
nation, apart form the body of government of social protection fund.
 "State government" is determine as the isolated firms division which is utilised to practise
different functioning of the government under such units that determine the level of
central government and are recognised as major and above those entities which are exists
at the leave of local government.
 "Local government" it involves every sort of public government authority that are having
the responsibility in order to guard localised portion of the economical location, differ
form domestic body of the social security funds.
Private sector : This kind of enterprise is completely owned by the individual and single entity
or person and group. There is no role of the governmental authorities hence government is not
having the right to use their control over their commercial functions or activities.
Domino's pizza would be the best and prominent example of the sited sector. It is an
American restaurant chain that offers pizzas and different kind of consumable item. It was
founded in the year of 1960 and having headquarter that is located in the Ann Arbor, Michigan in
United State. On the bases of a survey, it has been shows that nearly 14100 employees were
exists in the venture- owned stores and office. At the very same period around 29000 workforce
is presented in the relative company's in the year of the 2017. They have benefits approx.
US$ 214.68 million in same time period.
Purpose : The importance of this essential qualities and foremost intention of the firm is to
provide different kinds of foods items such as pasta, pizza, Submarine sandwiches, Chicken
Wings, Dessert and much more. To their future and current consumers as very lower and pocket
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friendly cost in the comparison of other competitors. They desired to flourish their business root
in the entire world and grab higher sum of the benefits form the same operation.
Legal structure : This structures framework of enlisted sector is falls into different sections
such as partnership, sole trader, short term companies..
Voluntary sector : In this division it is very different public and private organization as it is
having various different objective in relation of those. It includes all the firms in that group of
single persons named as a volunteer to have participation in the social services to the citizen of
the UK in order to attaining certain social purpose (Cavusgil and et. al., 2014). They tries harder
in respect to reduce the hurdles and problems of general or common person also facilitates them
required basic services such food, shelter, clothes, care, water and so on. Oxfam can be the
strong example of the voluntary department.
Purpose : The crucial and main motive of the such sector is to meet social as well as economic
needs of the entire communities of the nation but limited sectors.
Legal structure : Top of the hierarchical managements people have recognise as a trustees of
this types of venture who are having the authority of making every right decision and establish
structure of the working operations. Volunteers are those persons who utilise to respect as well as
follow the direction reflected by the such members of committee.
P 2. Scope and size of range of various types of firm
Every enterprise is having its size as well as scope and they determine their motives in
accordance to that for the completing of the same. The size and scope of the different kinds of
company are detailed as follows:
Private segment : As detailed above such sort of firms which are privately owned by an
individual person or more then that. They are having core purpose to boost up their turnover in
effective manner by investing minimum level of finance. The size and scope of the various
different firm are explained as follows:
 Sole traders : such sort of the firm are operated through only single individual who is
having the liability of taking care of their all problems and uncertainty which are
connected with the activities of the business.
Scope : The major scope of this kind of venture is to having or generating strong level of
amount of the turnover for the spending by flourishing their branches.
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Size : it is very small in aspect of the size and firms of lower numbers of shops and
stores.
 Partnership : this is a that sort of venture which are operated with the helps on two or
more persons or partners and they all are having mutual sharing of the work load, benefits
as well as losses are beard in the same condition (Chavis, Klapper and Love 2011).
Scope : partners and members of the enterprise believe in earning and creating more of profit
and build distribution of equal basis among all of them.
Size : this venture is framed in medium size and also controlled by large no. of owner.
External parties– The prominent shareholders connected with the private firms are enlisted
below:
 Employees – They are responsible to perform properly in order to completing their
continuous assigned job. Completion of the prescribe task will required a strong team and
hence employees needs to have more of impressive and effective interpersonal abilities.
Workers needs to be have knowledge or be aware about the norms and laws of their
organisation.
 Consumers – they provide helps to firm in order to determine about their services and
product to be manufactured on the grounds of their demands or requirements. They also
provide helps to the sited bank in respect to determine about dynamical attitude of the
present market and therefore they can be able to frame out themselves for the future
demands and requirements of the citizen.
 Owners – they provide offers to those assets that are important for the business in order
to runs it in effective manner and strong style (Trkman, 2010). These includes the venture
of personal, determining suitable premises and attaining equipment , machines and raw
material as well.
Public sector's size and scope : PUBLIC corporation are regulated by government so their
scope and size are bit larger as compare to other organisations and sectors. for an example,
Barclays is a British multi national bank which are having around 119,300 employees. They are
running in more them forty country. The prime scope of this kind of enterprise is to provided
financial services to people of uk to improve their level of standard.
External parties of the public organisations are -
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 Government – it is utilised for the operating firm related exercise in order to protect the
buyers. Governance bureau in confirming the product's core and prominent rights.
 Society – The social group generally keep their actions of venture in the proper track
through creating them conscious about their effects on the person's surviving in a society.
They used to write the letters to particular venture and the individuals of the media and
tries to showcase their thought and view with the helps of them.
Voluntary sector's scope and size : these sort of venture is also named as the charitable
associations that are also comes in medium size (Chesbrough,2010). But it is not compulsory
therefore it may also comes in small or larger in the some conditions. For an example, Oxfam is
a prominent and prestige or famous NGO that have around 51 stores and workers nearly more
them 3000 employees who provide helps to older, poor and needy child who does not has parent
for take care them. Main reason and scope of this sort of the firms are detailed as:
 Primary aim of this industry is to work in social up gradation by providing basic services
to the poor and weak citizen such as orphans.
 Its different motive is to reduce crime that are arises in the society at continuous basis
such as labour, child, corruption, exploitations of the females and much of various unfair
action.
External parties of these kind of firms :
 Voluntary enterprises present in the board of the members provide helps them in order to
keep their venture operating.
 Donors, facilitates helps to suppliers such as national and state firms, associations and so
on that are providing larger sum of revenues or finance.
TASK 2
P 3. Relation between several organisational functions and its objectives
An entire commercial business venture builds and arrange their organisational structure
with various operation environment. In which each and every person flourish their offered
services in order to attain firm's objectives and goals. Govern and maintain various different
division environment as well as maintain health communication and relationship collectively
under the single roof of venture this entire procedure is known as structure of business entity.
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Different divisions maintains their communication and relationship with in the Barclays are
detailed follows:
 Research and Development Department: this is one of the prominent division of the
bank that are working on the evaluating the reality of the market through using scientific
technology and strategies of the business (Chow and et. al., 2011). Future business
practises and strategy of the Barclays bank entirely depend on the research and
development report and remaining all the different segments of the business venture will
perform in accordance to the report of research for the betterment in working and
productivity of the bank.
 Marketing Department: In current scenario, its a highly competitive world,
advertisement of the services as well as product of the bank is the prominently signify
and it is also playing effective and huge role in order to maintain buyers relations through
facilitating or sharing the data or information with their customers about their services
and product through various platforms as well as modes. Firm's financial growth, relation
of customer as well as sales are highly relays on the strategies and policies of division of
marketing. But with out having proper financing for the finance department and
availability of product for the buyers on the time for the manufacturing sector, the
department of marketing cannot able to provide their assistance to the growth of firm and
sales with higher benefits.
 Production Department : it is also a prominent section of the bank cause with out
utilising and imposing of the creativity and innovation on manufacturing of product, it
returns costly goods that are directly and indirectly effects on the firm's financial and
sales growth as well as on the buyer's power of purchasing to firms product and services.
In addition to it, department of production also concentrated on small-small wastage that
produce during various processes (Commander and Svejnar,2011). it will helps in
reducing the price of product that effects positively on the sales of the firm and growth in
term of the finance.
 Human Resource Management Division: this section of the firm plays prominent role
in order to manage entire firm as a family. management of HR department creates a
fruitful and healthy environment with in the organisation, in which employees will
provide their effective services for betterment of the firm's future. Organisation's main
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goal is to build training and learning program for workforce with the helps of workshops
as well as different several activities. They are the ones who are able to frame an
condition in which all the conflicts and hurdles of employees and trainees are to be
resolved as well as build an atmosphere in that they will feel as the part of the firm as not
just for the pay only.
 Accounting and Finance: they are ones who are able to manage and provide fund to all
different segments financially. This sectors arrange all the financial practises with in the
firm that establish its priority with the helps of funding in accordance to the demand of
the market as well as firm's first priority for the effective performance and productivity.
Account and finance segment manage all the case flows with in an organisation, with
trading the account and arrange firm in yearly budget with the priority for tasks and
project.
TASK 3
P 4. Negative and Positive impact macro environment business operations:
Macro elements comprises of those factors that are existing in the outer areas and there
are providing mark or impact ion the whole of activities in related to the business either negative
and positive. Hence it is very prominent to evaluate such elements so that every planning and
strategies are framed in accordance to them (Drucker 2017). BARCLAYS are also having such
impacts. To analyse their effects, PESTLE examine is required to be conducted in signify
manner which is detailed as below:
Political factor : The sited business has faced very challenging and tough political
environment in the year of 2016 as government of the United Kingdom has been forcing the new
norms that are connected with the capitals. Legal authorities has imposed some of new changes
of nearly 8 percent on the entire profit of the ban in the month of January in 2016. this
overcharging is seeks to more burdensome if a firm is having foreign subsidiaries. It is the
explanation for the bad or negative influence of the political condition on bank's abroad
subsidiary at Africa. Hence cause of the reason, bank will sold their property for 50 to 60 % in
the year of 2016. other side there are some positive impacts as government is facilitating support
to all these kinds of the firms for their higher age and development as they know that such types
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of organisation provide various services to common citizen and tries to minimise the numbers of
problem of them. The political factors impact on BARCLAYS bank that they face political issue
which related to tax and other political conditions like changes countries regulations and legal
formalities.
Economical factor : it is also an important element that is making impact on the
performance of connection. The bank is influenced for the risk and uncertainness that are
associated to economical conditions of the UK as they have always exited for the Europe. The
governmental agencies of departing the European Union was depends on the particular
international accords that arise among the associates of the Eu and Britain (Gecevska and et. al.,
2010). As the outcome, the losses in the worth of pound money happens in comparison to the
various nations currencies such as Euro and Dollar has happened. For the Barclays, Brexit has
offered various negative effects on the capitals, principle and commercial activities. In addition
to this, it is also impacted on the present situations of employees , consumers and shareholders.
The economical factor impacts going to the bank assets like the customer are take their money to
their bank and invest to the another bank which impact going to their asset.
Social factor : these kinds of elements involves alteration in the society of general
persons, their living standards, cultural mobilities, labours and so on. The analysis of the main
market location in the UK and US in the outcome of the such demographical changes that is
currently impacting Barclays in major term. The demands of the individual are dynamic in nature
and are changing in regular routine also effects in various manner to an organisation. The social
factor impact on the BARCLAYS bank to provide social service to society like they open
account in zero balance and also provide insurance service to the society.
Technological factor : the progress and improvement in the technological context
provide optimistic effects on the bank. It offers assistance in order to increase the development in
the sector of the banking in very higher rate. It has been noted that every context of the bank firm
can today be complete by taking the helps on internet through online actions. This factors
impact going top the organisation technical condition like bank use new technique's facility like
online transaction and digital service which is help to easily money transfer in one bank to
another bank.
Legal factor : these elements has been implementing the kinds of standards and laws for
the whole companies that are operating their business in the UK and it required to be followed by
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the all of them in respect to runs their operations in ethical way. BARCLAYS was suffering
with the particular legal elements at the larger aspect. This has founded in a survey that Barclays
and four past senior executives were suspect to be guilty for a law-breaking that occur in year of
2017. this case was done through the help of Serious Fraud Office for dealing of bank with Qatar
at the emerging of financial crises (Iskanius and et. al., 2010). The legal factor impact on bank
legal formalities like any clients which is form the out of and they want to open bank account.
The bank require all legal document form the clients.
Environmental factor : Barclays is also effected by the present transition of legal bodies
and consumers as they are needing for the minimisation of the carbon foot print for their
ventures. As the outcome, in order to dealing with the condition, they are framing a strategies of
citizenship and reasoning for reducing the foot print of the carbon through making decrease in
their energy intake primarily by carrying out property advance of their funding.
TASK 4
P 5. Internal and external analysis of BARCLAYS.:
Strengths weakness
The bank has huge business around in 40
nations and the main strengths of the
BRACLAYS bank to provide international
fund service for the organisation.
The main weakness of bank to gives loan and
fund in high percentage which cost have high
and lower people cannot afford those loan and
mortgage service.
Every venture is having some weaknesses and strengths as well. Barclays also have the
same that is enlisted below by having SWOT evaluation:
Strength : Key strength of this bank is expressed below :
Strength of Barclays
 Strong existence in the international marketplace : the multi nation bank is having
powerful presence as it determine internationally as a major player that is capable of
commanding the market in accordance to the facts and information (Klapper and
Delgado,2011). They are having business in around 40 nations.
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 Diverse portfolio of business and brand perceptibility : they are performing the
activities of business in various segments and their formation of business involves
investment bank and corporate , Barclaycard and wealth international, Entrepreneur and
commerce finance,etc.
weakness of the Barclays are described below :
Weaknesses of Barclays
 Shortness in returns : returns achieved form the main business of bank for the sector of
venture and investment in the US.
 The divestiture of Africa : it is looked to be more time consuming and cost with
Barclay as they accepted for paying its subsidiary firm of Africa.
opportunities of Barclays which is listed below :
Opportunities
 BARCLAYS can flourish their venture in different nations where they are present and
attain high buyers numbers.
 It is evaluated as first bank that begin the process on the ground on the block chain
tools (Teece 2010).
Threats of Barclays which are :
Threats of Barclays
 legal authorities are forcing through creating the carious regulations in regards of new
capital significance.
 8 percent of more charge was implemented by the government on the benefits of the
bank.
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P 6. Interrelation of strengths and weaknesses
The strengths and weakness is indirectly related to the external factors. Weakness arises
due to some policies and laws that has been imposed by the government in order to protect the
environment or interest of people. Barclays is affected by change in legal factors as laws are
modified which have a direct affect in service of Barclays.
This term is identified of relationship between strengths and weakness with the help of
macro elements.. Majorly environment is fall into two categories which is internal and external
conditions (Osterwalder and Pigneur,2010). Therefore, extrinsic and intrinsic factor in various
methods are mentioned as below:
Political and Legal Factor: political and legal change in the venture can be affected as the team
of firm needs to frame approaches and principle as well as control hence it will effected the
promoter that they will adjust their standards and arrangement.
Social Factor: social and cultural division make major influence to their business and highlights
major factors with the helps on selection and manners of multicultural through consumers and
forms or additional patterns. It affects the requirements and needs or demands as per the
modifications.
Technological Factor: current services and product flow can be arranged with the inclusion the
new options or tools with helping in firm of contenders that are having the interest of the factors
through having the request of innovation. For fast and finer management it is useful for business
arrangement in effective manner.
Economical Factor: it is determine as the signify power that affects internal along with different
situations of firm. It makes influences to the framing of the firm with the procedure of leadership
in between costumers. These elements incorporates with monetary enhancement , price of funds,
management of trade , expansion and market share and so on.
Environmental Components: lacking of the more of demanded factors, effects of carbon
objectives undertakes with the state, material of the objective and business morals and much
more are the factor existing in the general factors so that management of the change in the
versatility environment of an organisation can be arranged (Storey and Greene,2010).
Therefore it can be determine in the end that there are different kind of interrelation in
between micro and macro conditions like after modification of the acts, rules, laws and norms it
has been analysed in the bodies of the state then it affects the strategies.
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CONCLUSION
This reports concludes that there are several factors that exists in business environment
that effects its operation and functions there are various factors such as society , political
environment , etc. that can have both positive and negative impact on business.. Apart from this,
different various aspects like scope, legal of various organization like private , public, etc. is also
explained in the project. Other side of it, this weakness, capability, threat and opportunity as
well of Barclays bank group has discussed in effective manner.
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REFERENCES
Books and Journals
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Online
MARKETING THEORIES – PESTEL ANALYSIS. 2017. Available through :
<https://www.professionalacademy.com/blogs-and-advice/marketing-theories---pestel-
analysis>.
Organisational structure chart. 2017. Available through :
<https://www.forbes.com/sites/greatspeculations/2014/05/15/a-look-at-barclays-
revamped-strategy-and-its-impact-on-the-banks-shares/#6582e8363f17>.
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