Green Business Models and Performance

This assignment delves into the relationship between green business models, innovation, and firm performance. It examines research on how businesses integrate sustainability into their operations, products, and strategies to achieve both economic and environmental benefits. The analysis covers topics like sustainable innovation drivers, the influence of corporate social responsibility on brand equity, and the co-evolution of multinational enterprises (MNEs) with institutional environments. Students are expected to synthesize theoretical frameworks and empirical evidence to understand the complex interplay between green business models and success in today's market.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain different type of organisation...............................................................................1
P2 Explain scope and size of different business organisations..............................................2
P3 Explain the interrelation between various functions of the organisation..........................4
TASK 3............................................................................................................................................5
P4 Explain how macro factors affect business operations.....................................................5
TASK 4............................................................................................................................................7
P5 Explain SWOT analysis....................................................................................................7
P6 Explain how strength and weaknesses interconnected with macro factors.......................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment consist external and internal factors that affect the operations of
the organisation. It includes some components such as customers, suppliers, competitors,
government legislations and market trends. These factors are influence the business negatively or
positively (Wheelen and Hunger, 2011). This report will talk about the NATWEST which is
leading international bank. Business is affected by the environment in which they operate their
activities. It describes various types, scope and size of the enterprise. How internal strength and
weakness of the cited enterprise connected with the external factor will also consist in this file.
Different type of public, private and voluntary sectors and how they are interrelated to each other
will also discuss in this report. PESTEL analysis which helps to identify external components of
the environment will also explain in this file.
TASK 1
P1 Explain different type of organisation
Every company have their different structures, operations, activities and size so their
goals and objectives are also different. There are many type of organisations which are given
below:
Private sector: This sector play crucial role in the economy large number of companies are
conduct their business in private form. Main purpose for conducting the business is to make
profit by selling goods and services to the customers. That kind of firms owned by individual or
group of persons and free from government interventions. Private companies have large number
of employees rather than public sector. Competition is important part of private enterprises
because there are many other enterprises who provide same kinds of goods and services. Private
organisations are non- governmental with have small number of shareholder. These organisations
are not offer their shares in stock market but they are exchanges their shares privately. So
basically, companies which are not listed in the stock market are known as private organisations
(Sekaran and Bougie, 2016). Various kind of forms of business including in private sector which
are mentioned below:
Sole trader: in this form of business operated by an individual who are control all the activities.
Entrepreneur bear all the risks and profits individually are known as sole trader. It is the simplest
form of conduction a business because it free from government interventions. The liability of
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these trader is unlimited because personal asset of the trader can also use for cover the losses and
debts. Apart from that it is important for sole proprietor that they cannot use their business for
tax shelter purpose(Hair, 2015).
Partnership: This is also form of business where two or more members owned and manage all
activates. It is the legal relationship in which two or more persons are given their consent and
sign an agreement for conduct business activities. Partnership have multiple owners which are
invested in the business for smoothly conduct of activities. There are various kinds of partners
are including in the partnership like some partners are directly involved in the operations and
other have limited participation in the business. Income tax is paid by the partnership but the
losses and profits are shared by every partner according to their agreement.
Public organisations: These firms are partly or wholly owned by the government because it
includes critical services such as national defence, police protection, taxation, urban planning
and many other social programmes. Government cooperate with private companies to provide
products and services to the public sector which is called outsourcing. Public company issue
their shares to the public and registered at least in one stock exchange market. Public
organisations also analyse the value of their business by day to day trading. Shares of these
companies are purchased by large number of investors. It is important for the public enterprise to
give satisfaction and give information regarding any changes in their business activities. For
these kind of organisations, it is important to disclose all the financial statements so that
investors get to know current position of enterprise.
Voluntary organisations: In this kind of sector involves multinational charitable trusts, credit
unions, local community groups and housing associations. Voluntary organisations are basically
formed for betterment of the society. They are not focusing on the profit maximization and
volunteers are play very important role for conduct the activities. They have many number of
stakeholder such as funders, beneficiaries, staff, trustees, volunteers and partners also(Carroll
and Shabana, 2010). These organisations are raised fund from government agencies, individual
and corporate groups for cover the expenses. Oxfam is the largest voluntary organisation in Uk
which are expend approx. 378.7 million.
P2 Explain scope and size of different business organisations
There are various kind of business forms are available with different purpose, advantage,
size and scope. The ultimate motive of all these organisation is to provide products and services
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to the customers and make society better. Some other enterprises with the motive of betterment
of the society without focusing on earn profits. These different kinds of firms are directly
contributing to the country development through increasing gross domestic products.
Private sector: The companies which are included in this sector are not offer their shares in
public and not registered in stock market are known as private organisation (Cantwell, Dunning
and Lundan, 2010). They conduct their business with the purpose of earn income by provide
products and services to clients. Government of the country is not interring fair in the operations
of the private companies. But they are answerable to their stakeholder such as suppliers, creditors
and customers.
Size and scope: NATWEST is the largest international bank which located in UK and operate
their activities in various locations. it was developed in 1968 through the merger of two other
banks. Financial services are provided by cited bank to every kind of business such as small,
medium and large. Private companies can easily raise funds from cited bank to operate their
activities smoothly. It has large number of employees approx. 33300 and cited bank is located in
more than ten countries.
Public sector: Organisation which are offer their shares to the public and registered in the stock
market is known as public company. They have huge number of investors who are purchase
shares of the firm. It is important for the public enterprises to provide full information about their
business activities to their shareholders. The child support agency which is public sector
company focuses on protect the rights and development of childes in terms of education and
other services.
Size and scope: London transport company is biggest transport company which provide their
transportation services. It is the public-sector organisation because its shares are sell in the stock
market and it get registered in the stock exchange. Purpose of this company is provided transport
services to wide geographical area. It has large number of employees and shareholders who are
purchase shares of this company.
Voluntary organisations: The main purpose of these kind of organisation to make society
better. For full fill this motive they are provide that kind of services and products which largely
contribute for betterment of the society (Zott, Amit and Massa, 2011). Trusties and volunteers
are play important role for conduct the operation. They are not focusing on the profit earning and
funds can be raised from the individual, corporate and charitable trust.
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P3 Explain the interrelation between various functions of the organisation
Cited bank has many functions and operations by which they can conduct their business
activities. For smooth running particular department is responsible of the company (Boons and
et. Al 2013). It will help to achieve organisational goals and objectives. To provide banking
services NETWEST Bank have some core functions which are mentioned below:
Service: It is the primary function of cited bank which have to performed by them financial
institution they want to provide their appropriate services to the customers. To provide effective
services, it needed some factors of productions such as labour, capital, material, energy and men.
If talk about NATWEST which is provide banking services in UK focuses to get the data and
information about their customers before provide them services. It is important for cited bank
update accounts and information related to their bank services. Customer service department is
responsible to make new policies and plans which helps to provide new services to the
customers. All functions of other department are based on the effective services by the
NETWEST.
Finance: It is also important function because implementation of whole activities of cited bank
is depend on the funds. This division of the company is responsible to maintain the record of
financial information. This data can be used for the formulate Income statements for legal
requirements and tax motive. Finance and other function of a firm is interconnected because plan
and policies which is formulate by the department is require enough funds. Finance department
is not only focuses on the provide finance to the customers but also, they keep record of expenses
and salary of the employees. for example, finance department make payment of wages it is
important to consider statutory deductions such as tax.
Human resource: This function is play very important role in cited bank because employees are
the key factors for the success. HR department is responsible to analyse the need of manpower in
the organisation (Astrachan, 2010). Effective execution of recruitment and selection process is
the responsibility of this department. They are not only focuses on hiring of new employees but
also conduct training and development programme to enhance the skills and competencies of
existing workforce. They are also formulating policies which helps to coordinate between
organisational needs and their employees. HR department is closely related to finance
department because when they hire new candidate they have to inform finance department for
discuss the salary which pad by the company.
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Marketing and sales: This function is conducted by marketing department which helps to
increase the sale of products and services of the cited bank. It is the responsibility of this division
to analyses the needs and wants of the customers. (Dangelico and Pujari, 2010). This information
will help to develop strategies and plans so they can give satisfaction to clients. If talk about
NATWEST it is important to provide loans at lower interest rate so that customers take more
interest to raise funds. Various insurance policies and financial products are developing and it is
also important to provide information to customers related to these services. Production and
marketing function are interrelated because product is designed than it requires its packaging,
advertising and promotion and these are conducted by marketing department. Apart from that
sells function are help to influence the customers to purchase the financial products. Selling
strategy is developed which involve sales interview, mail shots and telephone sales.
Research and development: This function is also play very important part for success of the
company. To innovate existing products and services, development of production method and
also create effective procedure all activities are conduct by research and development
department. This is connected to other departments because if they make any changes in the
procedure of production and develop new product they have to inform production department.
Research and development is helps to reduce the cost, boost up profitability level which helps to
sustain the company in market for long time. These researches are based on the finance
department because they give funds for research and development of the services and products.
If talk about NETWEST this department is play very important role. They collect the
information related to their needs and then develop new financial services so that more
customers can attracted (Chen, 2010). this department is basically focuses on analyse the future
fluctuations in the interest rate which affect the functioning of this financial institution.
TASK 3
P4 Explain how macro factors affect business operations
There are various external and internal factors which affect the activities and operations
of the business. It is important to analyse these impact on profitability and current and future
performance level of the company. It is not compulsory that these factors are always effect
adverse, they are also favourable for the business. Cited bank is providing their financial services
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in various countries so it is important to identify external and internal factors. To analyse these
components cited bank can use various tools and techniques. Pestle analysis given below:
Political: NATWEST bank is internationally provide their financial services in many countries.
Rules, regulations and legislations which are opposed by the government have to be followed by
the cited bank. Negative impact of this factor is that it is difficult to cooperate with these rules
and laws because government is different in every country. Political condition of a nation is
consisting government stability, tariff policy and fiscal policy which directly and indirectly affect
the business. Apart from that political condition can also favourable for the bank in some cases
such as if fiscal policy is changed so they can easily provide loan at lower interest rate so that
more customers can attracted and take interest to raise funds.
Economical: This component are include change in many rates such as inflation rate, foreign
exchange rate and interest rate which are important for economic condition of a country. These
factors are directly influence the banks because their cash availability is affected so that they
cannot provide good financial services to the customers. Purchasing power and living standard
are also affected through the bad economic conditions. In low economic situation prices of the
commodities are affected and then it affects the performance and growth of the cited bank. Apart
from that one positive impact of this factors is that in when income of the people is high than
they able to raise funds from bank at higher interest rate which is positive sign.
Social: According to this factor choices and preferences of peoples are dynamic in nature. so it is
important to make strategies and plans which helps to analyse demands of different customers. It
is important to analyse the preferences and wants of the people and financial status of the people
so that they can develop financial services. This will help to provide satisfaction to customers
located in wide geographical area.
Technological: This factor is play very important role in terms of operations because new
technologies are affect the methods of operating. In modern days’ new technologies are emerged
for develop the performance and continue growth. So, it is crucial for the cited bank to adopt
latest technologies to provide new and developed services. Through adoption of new
technologies, they can give their best services such as online banking facility and digital payment
so that clients can easily transact with bank at anywhere and anytime. Negative affect of this
factor is that sometimes employees and customers cannot learn these technologies so that they
face various difficulties related to operation.
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Legal: In this factor consist many laws and legislations which are developed by the
government. NATWEST is international bank which operate their activities globally so it is
difficult to coordinate with those legislations. Apart from that one positive side of this factor is
that if government is change in their policies such as taxation policy so that bank easily give
loans and advances to many customers.
Environmental: Environment of country is not under control by the cited bank because it
unpredictable environment conditions are affect the income, standard of living and purchasing
power of the customers so that cannot able to raise funds from the cited bank so it affect the
performance of the bank.
TASK 4
P5 Explain SWOT analysis
Every organisation has their internal and external strength which are helps to sustain in
the market. For analyse these strengths cited bank can use SWOT analysis which helps to
develop a strategy according to their strengths (Bear, Rahman and Post, 2010). This method can
be used in two ways as strategy formation and serious strategy tool. With the use of this method
cited bank can easily identify their strength, weakness which is exist inside and opportunities and
threats which are outside of the company. Detail of SWOT tool are given below:
Strength: According to this factor internal prospective in terms of customer satisfaction and
people in the market. It includes some components such what factors which make unique and
successful in the market, what factors which helps to make increase the sales and what the
unique selling proposition which help to attract the customers. If talk about NATWEST their
main strength is that they give attractive financial services such loan and advances at low interest
rate, unique online banking services and digital payment also these are including in their sales. It
is important to identify internal strength of the organisation because it can use for provide best
services to the customers which helps to them get success in future.
Weaknesses: These factors are including negative points of the company which have to need
eliminate in near future. The main weakness of is that their competitors which are providing
same kinds of products and services. It includes many factors such as what points which have to
be improved, some activities which is important to eliminate, image in the mind of the customers
and factors which are affect the sales (Welter and Smallbone, 2011). These weaknesses are affect
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the operations of the firm because these are existing in inside of the company. If talks about cited
bank their weakness is such internal operations which affect their services which is given to the
various clients. It is important for the cited bank to make that kind of strategy which helps to face
these weaknesses (Wheelen and Hunger, 2011).
Opportunities: This component are existing outside of the enterprise which is very important for
get the success. It includes various factors such as trends, technologies and other opportunities
which they can adopt for increase the performance and development of the firm. Useful
opportunities can come from such things as change in market on broad and narrow scale, change
in government policy, social patterns, population, lifestyle, taste and preferences of the
customers and also local events. There are many opportunities which a cited bank can adopt such
as if government change in any policy such as taxation and change in bank rate than bank can
use these changes and make their operations easy. It also includes all those factors which helps to
make better and helps to increase the growth and development of a business. Emerged latest
technologies for the operations so they can deliver various financial services to their clients.
Threats: These factors are existing in the outside of the enterprise which affect their internal
operations. There are many threats which are faces by an organisation is that suddenly change in
technology, any bad debts or cash flow problems, quality standard of products and services and
performance of the competitors. Threats for the cited bank is that economic condition of the
country is slow down and global crises is also becoming threat for the bank which affect their
performance and growth. It is important for the cited bank to analyses external threats because
these are affect overall performance.
P6 Explain how strength and weaknesses interconnected with macro factors
It is important for any kind of enterprise to analyse external and internal environment
factors because they are directly and indirectly affect the functions and operation. As per the
above discussion of SWOT and PESTEL analyses, it can be analyse that all environment factors
are interrelated with each other (.Sekaran and Bougie, 2016). strength and weakness of the are
exists internally and macro factors such as political, economic, social, environment,
technological and environmental which are exist outside of the company.
 Political factors which are includes rules, regulations and legislations which sometimes
strength or weakness. If political conditions are favourable for the firm than it is known
as strength and if they are unfavourable than it will became weaknesses.
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 Economic condition of the country is also affect the functioning positively or negatively.
If there is economy slow down and inflation condition in economy than it directly affect
the performance and development of the cited bank. They cannot provide effective
financial services to their customers. On the other hand economic growth is work as a
strength for the cited bank because when people earn enough income so they can easily
repay their loans and advances (Hair, 2015).
 Social factors such as change in taste and preferences of people, mobility of people from
one place to another which affect the sale of products and services of the a organisation.
But if talk about the strength customers are key factors for getting success so it is
important to give them best services and goods. NATWEST can easily get opportunities
from society through understand the needs and demands of the customers. When cited
bank provide various financial services such as online banking and digital payment than
they can attract large number of customers.
 Technological component is favourable and unfavourable for the cited bank. When new
techniques arise in the market such as digital payment and online banking which are
adopted by the cited bank. These are helps to them give facilities to the customers so that
they can transact with the bank at any time anywhere. This factor are seem as strength for
them nut on the other hand it will became weakness at some point. Employees and
customers of NATWEST cannot learn use of these technologies which increase
difficulties in operation.
 Legal factors consist many laws which is opposed by the government and have to
followed by every organisation. Cited bank is providing their services globally that
means they have to follow many legislations if they are not obey these laws it affects
their operations. Government is changed by a fix time period so their rules and
regulations is also changes so it is very hard to coordinate with those situations. On the
other hand, legal conditions some time favourable for the cited bank if they are helps to
achieve the goals and objectives than it is knowns as strength for bank.
 Environment components is play very important role because sometimes they became
positive and some time they are negative for the organisation. These are includes various
factors such as change in climate condition and natural disaster (Carroll and Shabana,
2010). Firm cannot control over these factors so t impact adversely. On the other hand, if
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cited bank is full fill their corporate social responsibility and give contribution to make
environment better than it is easy for them to face these difficulties. Better and healthy
environment is a huge strength for the cited bank. Because these are helps to achieve the
goals and targets of the NATWEST.
So basically, it can be concluding that strength and weakness of the cited bank is closely
interconnected with the macro environment factors. For smooth functioning, it is important for
them to analyse all those internal and external competencies.
CONCLUSION
As per this report it can be concluded that environment is play very important role in the
for any kind of business (Cantwell, Dunning and Lundan, 2010). There are many kinds of
organisations are available such as private, public and voluntary. Every business has their
advantages, disadvantages, size, scope and different structure which are describe in this report.
NATWEST is one of largest international bank which provide their financial and banking
services globally. For accomplish goals and objectives cited bank have to perform various
functions which also a part of this report. Business environment includes many macro and micro
factors which are influence functioning of an enterprise. So it is important for the cited bank to
identify those components so that they can easily conduct their activities. For this purpose, many
tools and methods are available in which SWOT and PESTLE analysis is explain in this file. At
last relationship between strength and weaknesses with the macro environment factor is also
describe.
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REFERENCES
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on corporate social responsibility and firm reputation. Journal of Business Ethics. 97(2).
pp. 207-221.
Boons, F., Montalvo, C., Quist, J. and Wagner, M., 2013. Sustainable innovation, business
models and economic performance: an overview.Journal of Cleaner Production. 45.
pp.1-8.
Cantwell, J., Dunning, J. H. and Lundan, S. M., 2010. An evolutionary approach to
understanding international business activity: The co-evolution of MNEs and the
institutional environment. Journal of International Business Studies. 41(4). pp. 567-586.
Carroll, A. B. and Shabana, K. M., 2010. The business case for corporate social responsibility: A
review of concepts, research and practice.International journal of management reviews.
12(1). pp. 85-105.
Chen, Y. S., 2010. The drivers of green brand equity: Green brand image, green satisfaction, and
green trust. Journal of Business ethics. 93(2). pp. 307-319.
Dangelico, R. M. and Pujari, D., 2010. Mainstreaming green product innovation: Why and how
companies integrate environmental sustainability.Journal of Business Ethics. 95(3). pp.
471-486.
Hair, J.F., 2015.Essentials of business research methods. ME Sharpe.
Sekaran, U. and Bougie, R., 2016.Research methods for business: A skill building approach.
John Wiley & Sons.
Welter, F. and Smallbone, D., 2011. Institutional perspectives on entrepreneurial behavior in
challenging environments. Journal of Small Business Management. 49(1). pp. 107-125.
Wheelen, T.L. and Hunger, J.D., 2011.Concepts in strategic management and business policy.
Pearson Education India.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. 37(4). pp. 1019-1042.
Online
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THE LEGAL ENVIRONMENT OF BUSINESS. 2016. [Online]. Available
through<https://www.lawteacher.net/free-law-essays/international-law/the-law-that-
regulates-businesses-in-united-state-of-america-international-law-essay.php>. [Accessed
on 7th September 2017].
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