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Business Environment of NatWest organisation : Report

Added on - 22 Jul 2020

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Business environment1
Table of ContentsIntroduction......................................................................................................................................5P1 Different types and purpose of organizations as well as their legal...........................................5P2 The size and scope of different types of organizations..............................................................6P3 Relationship between the various functions and how they relate to objectives and structure....7P4 identify the impacts (positive and negative) of the macro environment upon the business.......8P6 explain how strengths and weaknesses interrelate with external macro factors......................12Conclusion.....................................................................................................................................13References......................................................................................................................................132
IntroductionBusiness environment is the sum total of all the surroundings that has a direct or indirectimpact on the overall functioning if business in a positive or negative manner. These areinclusive of clients, competitors, suppliers, governmental bodies, socio culture factors, laws,technology among others (Margea, Hurbean and Artene, 2014). The present report has thus laidfocus on making a study on business environment of one of the potential client of NatWestwhich can be Primark in the near term future. Focus will be given on internal and externalanalysis of Primark so as to assess its business operations in a better manner.P1 Different types and purpose of organizations as well as their legalstructureAn organization can be defined as social unit of individuals that is structured as well as managedin such a manner so as to meet a set of collective goals and objectives. There usually existsdifferent types of organizations such as sole traders, partnerships, public, private and voluntaryfirms (Amit and Zott, 2014). The below mentioned section gives emphasis on varied types oforganizations as well and also discusses there advantages and disadvantages.Sole trader – It is also known as sole proprietorship where an individual runs as well asowns the entire business entity. This type of organization is very simple to setup andthere is full control over assets and business decisions. But the presence of unlimitedliability presents a threat that all personal assets may go at risk if things go wrong. It alsoprovides very little chances for tax planning as an individual is personally liable to paytax on all income that comes from business.Partnership- it is a form of business arrangement where 2 or more persons share profits aswell as liabilities of a business setup. This type of business is easy in terms ofestablishment and has low startup costs (Barnes and Hunt, 2013). There is also a presenceof more capital availability for business but the partners have unlimited liability for debtsof business. Moreover, there is often a chance of disagreements and friction betweenpartners as well as management.Private – These are the ones that are run by a single person or a firm in comparison to agovernmental body. The private firm shows the presence of restricted ownership thatfurther has a presence of objectives that aid in its successful running. The sector is3
advantageous due to presence of limited liability, continued existence even after death ofowner and also enjoys tax breaks (Foss and Saebi, 2017). On a negative note, such firmscannot sell their shares publicly which somewhere limits the growth. As shares are notsold on stock exchanges hence these companies are able to raise a limited amount ofcapital.Public – These are the ones whose ownership and management is in hands ofgovernment. These firms can be partially or completely owned by center or state and areunder a separate ministry. Some of the firms are also set by special act issued byparliament. These firms offer better access to capital and liquidity. They further haveincreased opportunity for acquisitions and also own a prestigious profile. However thefirms have more regulatory requirements over them and are also required to maintainhigh levels of transparency (Belas and et.al., 2015).Voluntary – these are the ones whose working is based on improving the society andcreating social rather than materialistic wealth. These firms have their own set ofadvantages such as public recognition and trust, tax relief and funding benefits. Howeverthey face restrictions on the type of work that can be carried out or funded. Moreover,these firms cannot raise equity investment and the board is often unpaid unless charitycommission authorizes for payment.P2 The size and scope ofdifferent types of organizationsThe size and scope of sole trader is very limited however it serves a lot of purpose suchas creating opportunities for self-employment and making productive use of funds. It furtherencourages independent and honorable living where the trader is free to take all decisions. Alsosole trader serves the consumer in a better manner as he is in direct contact with them. It furtherserves the purpose of equitable distribution of wealth. There is a presence of many sole firm inUK that have been providing varied kinds of product and service offerings. One such isSusan M.Alexander Accountant that provides accounting related services within UK. Its working is basedon the purpose of providing quality services by being in direct contact with the client (Susan M.Alexander, 2017).The partnership firms also have a presence limited size and scope but it is more than soletrader firm where the members in whom partnership is formed can go up to 20. Further the legalbusiness structure of such firms is also very simple. Weightmans is a partnership firm in UK that4
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