Analysis of Business and Legal Environment

The provided document is an assignment that involves analyzing the business and legal environment. It includes a list of articles and references from 2011 to 2017, covering topics such as governance indicators, B2B critical success factors, environmental uncertainty, and strategic management. The assignments also include case studies and references to books on legal environments and research methods for business.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of business organisations.....................................................1
P2 Size and Scope of various types of organisations.............................................................5
TASK 2............................................................................................................................................6
P3 Relationship between organisational functions with its structure to achieve objectives. .6
TASK 3..........................................................................................................................................10
COVERED IN PPT..............................................................................................................10
TASK 4..........................................................................................................................................10
COVERED IN PPT..............................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business and business environment is concept which includes different organisations and
factors which plays important role in business. Internal and external components which directly
or indirectly affect operations are acknowledged by administration to design system and executes
appropriate activities. Present report is based on SANTANDER Bank which is leading and
popular bank in UK. Commercial, Investment, Market personal financial services and various
other financial products and services are provided by bank. This assignment defines different
types and purpose of business organisation which varies with each other in aspects of size, scope,
objective and structure (Chetwood and et. al, 2014). Executive divide members and formulate
department which includes activities which have relationship with each other. This helps seniors
accomplish their goals and objectives within defined period of time. PESTEL and SWOT
analysis are appropriate internal and external tools used by management to assess impacts of
macro environment factors and capabilities of system.
TASK 1
P1 Different types and purpose of business organisations
In present fast development time, business environment is upgrading at fast rate. This
increases opportunities for firms to execute activities and generate good amount of revenue from
business. Brexit was beneficial for UK, as it enhances number of possibilities and chances for
enterprises. Private, public and voluntary are forms of businesses which are distinguished in
according to their size and objectives. It is essential that adequate items and services are
delivered in market in respect to wants and requirement of people. Along this, executive another
goal is to generate appropriate profit from business. These are various tactics which divide
companies in following categories which are described below (Crane and Matten, 2016):
Basis of
Comparison
For Profit NPO NGO
Meaning This sector defines
companies which are
incorporated by
These are organisation
which conduct activities to
enhance society conditions
Non-Government
organisation are
charitable trusts which
1

businessperson to utilise
funds and gain adequate
amount of revenue (Saleem,
2017).
and standard of people.
Money earned is invested
back in business, so that
appropriate operations are
executed properly.
execute tasks for
developing society and
deliver adequate
products and facilities
for needy people.
Area of
Operations
Large and small scale of
activities are conducted by
profit firms.
Limited area of operations
are executed by Non-Profit
organisation.
Large scale of
activities are conducted
by NGOs.
Objective Main goal of profit
organisation is to increase
market reach and customer
base to enhance sales
volume and profitability.
NPO objective is to
promote scientific
disciplines, art and
commerce (Gharajedaghi,
2011).
Prime motive of
organisation is to
reduce poverty level
and provide adequate
items and services to
people.
These are different types of business organisation which are stated beneath:
Public organisation: This sector defines firms which are regulated and controlled by
central or local government; to enhance and strengthen economy of country. Authorities fund
these organisation to increase employment opportunities and give facility to people to generate
adequate income for their livelihood (Meiners, Ringleb and Edwards, 2014). Bank of England is
public bank established in UK.
Purpose: This bank aim is to raise funds and provide money to State by keeping custody
of gold reserve of UK. Government gives support and help to organisation by providing them
funds at lower rates.
Advantage: Public organisation enhances employment opportunities and provide chances
to people to generate money for maintaining their living standards. Money which authorities get
from tax are used for providing various facilities such as electricity and water supply to public
(Gilboy, 2016).
Disadvantage: This sector has less competition and government knowledge determine
activities that are conducted to enhance and develop state of economy. This impacts on use of
funds which are received by authorities from tax; thereby remain properly utilised.
2

Legal structure:
Local government: This segment includes firms which require to function and frame
policies in respect to state authorities. It is essential that appropriate things and services are
delivered in market in according to demands and requirements of people.
State government: This is another form of enterprise which conduct adequate business
operations to improve state of country by providing appropriate facilities and employment
opportunities to people (Kian Chong, Shafaghi and Leing Tan, 2011).
Central government: These are organisation which are regulated and controlled by
authorities to provide appropriate services to people. Finance, national defence, commerce and
foreign affairs are various functions which are regulated and controlled to safeguard rights of
public.
Private Organisation: This sector comprises companies which individuals or group of
people start to utilise money and conduct appropriate business activities. Entrepreneur or board
of directors of firm frame objective and organise resources in such manner that adequate variety
of items and services are delivered in marketplace. SANTANDER Bank provides financial items
and services to people. It is a British Bank which is leading enterprise which gives loan,
mortgage and other business services to clients.
Purpose: SANTANDER Bank goal is to sustain its market position and image by
providing quality and quick things and facilities to customers. Prime goal of bank is to secure
money of people, grant them loan by giving mortgage facility. Hence, management provide
different financial products and services to people. Various other objectives are stated below:
 Provide facility to people to deposit money and save for future use.
 Grant loan to individuals and businessperson on mortgage of items.
 Provide commercial banking and focus on retail services. Innovate and use digital transformation to provide quality and quick services to clients.
Legal structure:
 Sole proprietorship: This aspect includes company which are started and owned by
single person to conduct activities and generate income for maintaining their living
standards. Profit or loss both depend upon skills and quality of services provided by
person to customers (Kaufmann, Kraay and Mastruzzi, 2011).
3

Advantage: Entrepreneur is able to make fast decision making and select appropriate
things in respect to objective set by them.
Disadvantage: Shortage of money and other resources affect life of business which is
limited and individual is not able to generate adequate profit.
 Partnership: This is another tactic which two or more individuals which share
investment and invest money to incorporate business; thereby gain adequate revenue. An
individual will not have adequate capabilities and skills to organise activities in proper
manner. Thus, it is best and efficient technique which helps businessperson to assess risk
and generate good amount of profitability (Li, Q. and et. al., 2011).
Advantage: Organisation have good amount of funds, material and manpower to execute
business activities effectively. Executive have appropriate skills and abilities to organise firm
and handle risk properly.
Disadvantage: Partnership faces various demerits which are disagreement between
people due to having different opinions and thoughts. This impacts on their decision making and
also affect on their choices to select things in according to their knowledge.
Company limited by guarantee: This is another form of private organisation which
require to function in according to regulations and have limited scope. Advantage: These are organisation which are controlled by Charity Commission and this
benefits people to execute business properly. It is a legal entity and volunteers have
limited liability.
 Voluntary organisation: This sector includes firms which conducts activities and deliver
adequate things and services in market in according to demands of people. Oxfam is
company which belongs to this tactic and is charitable enterprise which function
independently and deliver appropriate facilities to public (Türetken and et. al., 2011).
Purpose: This sector aim is to execute activities for welfare of community and promote
educational facilities, public conscience on social problems and moral standards. Oxfam goal is
to promote, maintain and formulate schemes which enhance employment opportunities and
improve society. Along this, different solutions to remove poverty and conduct activities for
global movement.
Legal structure:
4

Trust: This is traditional form of structure which is regulated by trust deed which set
objectives and guidelines to direct activities and people to deliver appropriate things in market. Advantage: It is cost effective and members get appropriate authority to take decisions
and conduct business properly.
 Disadvantage: It is old tactic and creates problems for trustees as they have unlimited
liability and have to invest money for execution of business adequately.
Primary sector includes agriculture business, while secondary comprises manufacturing
and construction firms. Along this, tertiary sector defines organisation which provide services to
people. SANTANDER Bank is firm which is conducting business in tertiary sector. Financial
services that is saving, credit, loan and other products are provided by bank so that people are
able to safe it for future use or get money for their personal use (Wack, 2017).
P2 Size and Scope of various types of organisations
Market have different forms of organisation which differentiate with each other in aspects
of size, scope, objective and structure. Small, micro, medium and large are various firms whose
scale of operations are determined on basis of availability of resources. Funds, material and
manpower are various things which influence operations that are conducted by administration to
accomplish targets and sustain their position in market. Thus, these are different firms which
have variance size are defined beneath:
Micro Scale: This sector includes firms which are incorporated by individual to utilise
funds and open venture; to generate adequate income for maintaining their living standards.
Businessperson prime focus is to become financially secured and improve their family members
conditions.
Size: This scale of business is either regulated by single person or less than 5 people.
Along this, lower amount of revenue is generated by micro scale firms.
Scope: This aspect includes firms which has less number of resources that is funds,
material and manpower. For this, businessperson require to organise things and take care that
capital is utilised properly.
Small Scale: This is another sector which is bigger than micro level business, as
executive invest adequate amount of money to conduct business operations effectively. Market
research is conducted by individual to assess needs and demands of customers (Tayur, Ganeshan
and Magazine, 2012).
5

Size:This bank has around 3500 branches in different locations and SANTANDER is
providing better services and facilities to its clients. Their turnover is around 5 million dollars
which is comparatively higher in ratio.
Scope: SANTANDER Bank objective is to provide commercial, investment, market
personal financial services and various other financial products and services to people. Loan,
saving, credit and mortgage facility is given by bank to have adequate clients.
Public organisation: These are firms which are controlled and owned by state and local
government to provide adequate services for development and growth of economy (Meiners,
Ringleb and Edwards, 2014). Size: Bank of England is large scale enterprise which was established in 1694 and it is
central bank of UK. Along with this, it has world's eighth position and provide financial
services to people.
 Scope: Public betterment is main objective of Bank of England, for which bank rate is
fixed at 0.5% to grant more loan availability to people. It is regulator and central bank
which was not offering consumer banking services. Thus, changes in system and
technologies to provide adequate financial services to clients.
Voluntary organisation: Size: Oxfam is charitable firm which was founded in 1942 and is international non-
government organisation.
 Scope: Oxfam prime focus is to provide adequate facilities and job opportunities to
reduce poverty by giving chances to people generate adequate profit from business.
Businessperson manage operations and deliver adequate products that is clothes and
donate money for needy people (Sekaran and Bougie, 2016).
TASK 2
P3 Relationship between organisational functions with its structure to achieve objectives
Due to over dynamic working environment, it is essential for all business associations to
focus on work with proper coordination and cooperation thus to gain high competitive edge
(Wack, 2017). In order to improve its performance level and increases organisational stability,
management tries to collaborate all department as well as improving their organisational
structure; it lead attaining firm's goals and objectives in a certain time period. In SANTANDER
6

Bank, it is must for administration to maintain a healthy and positive working environment thus
to attain and retain employees for long term. Following is defined several organisational
functions such are stated as under: -
Finance department – In banking sectors, finance department plays a key role in
managing all activities and tasks in the best possible manner. Finance department is charged for
recognising financial health of the company and try to reduce unintended deficits which can
occur. In SANTANDER Bank finance manager is accountable for managing certain aspects,
such as – funding, capital investment, cash inflow and outflow, budgeting, preparing income
statements and so on. If all these activities will be managed in proper manner than any corporate
association will attain its goals and objectives effectively. Funds are divided and provided by
management to each department that is marketing, operation, R&D, human resource to conduct
operations properly.
Human resource department – An effective and efficient human resource department is
liable to manage entire workforce in systematic manner thus to attain and retain them within
organisation for long term. One of the most important responsibility of Human resource manager
of SANTANDER Bank is to recruit well qualified and talented people who enables to perform
all working activities and operations. Apart from this, the person is liable for providing training
and development assistance to employees thus to improve their skills and abilities; it results staff
members will be performed in more innovative and efficient manner; they will also contribute in
accomplishing business goals and objectives (Vaiman, Sigurjonsson and Davidsson, 2011).
Employer responsibility is to distribute members into different department so that business
operations are conducted effectively. Along this, coordination and connection activity to make
members function properly and deliver adequate items and services to people.
Marketing department – Promoting products and services of a company is most critical;
it helps increasing sales and profitability of the company. Henceforth, marketing department of
business organisations is focused on how to reach large group of customers and for this sake they
intend towards increases their network areas by using new and innovative communication
channels. Proper interaction with target audiences supports to know clients' feedbacks upon
offering products and services of the company. Promotional techniques that is advertisement,
sales promotion, online and social media which are used by marketing team to inform people
7

about financial services that are provided by SANTANDER Bank to attract people. This gives
help to operation unit to deliver adequate things to clients.
Operation department – This unit is obligated for ensuring quality of offered products
and services by the company. SANTANDER Bank is service firm which provides financial
products and services to people. For this, management require to organise activities and give
duties to members to provide appropriate facilities that is loan and saving to clients. Latest tools
and technologies are used by firm to deliver quality and quick services to people. (Türetken and
et. al., 2011). Finance unit provide budget and funds which require to be provided to clients in
according to their demands. Customers requirements which operation people acknowledge as
they interact with people and have complete information about market conditions.
Research and development department – Without having strong market knowledge any
firm cannot grow and survive for long term at marketplace. So that, function of research and
development helps business organisations to recognise current market trends so as to fulfil
customers' needs and wants in the best possible manner. The department of R&D also tend
towards assessing competitors' strategies, interest of geographical areas and future changes in
market, then develop business strategies accordingly. It ensure firm's market growth and boom
up the decision making process of the company. This unit helps operation team to provide
appropriate financial services and things to clients. Along this, R&D gives information about
competitor's offerings to help other department to function according to demands of people.
Thus, these are various departments which have interconnection with each other and
require that operations are conducted effectively. Employer of SANTANDER Bank takes care
that adequate workforce are present in firm which are able to deliver appropriate services and
facilities to clients. Finance unit responsibility is to have sufficient funds which are distributed in
different units.
Different types of organisational structure:
Divisional organisational structure: This tactic defines that large scale firms which have
branches in different nations. Businessperson uses this structure when they have large market
reach and offer variety of items and services. For this, they require to utilise resources that is
funds, material and manpower efficiently. Along this, administration even require to conduct
business activities and gain good amount of profit from business.
8

Matrix organisational structure: This is another aspect which specifies that management
have projects which require to be accomplished. For this, appropriate members are selected from
each department and given duty to perform activities effectively. This helps senior to utilise
resources and given opportunity to staff to enhance capabilities and skills.
Functional organisational structure: Human resource, finance, operation, marketing,
sales, research and development are various department which are constructed by administration.
These are unit which are formulated in each and every organisation, so that business operations
are conducted properly (Chetwood and et. Al, 2014).
Therefore, in SANTANDER Bank divisional organisation structure is used by executive
to manage outlets which are spread in different nations. This structure helps management to
utilise resources that is funds, material and manpower efficiently. Apart from this, functional
organisation structure is also used by administration to distribute members in different
departments and deliver appropriate financial services and facilities to clients.
Illustration 1: Divisional organisation structure
(Source: Divisional organisation structure, 2018)
9

(Source: Functional organisation structure, 2017)
TASK 3
COVERED IN PPT
TASK 4
COVERED IN PPT
CONCLUSION
As per above report it has been concluded that business environment has various
organisation which are public sector, private sector and voluntary sector. Micro, medium, small
and large are different scale of firms which differs with each other in respect to size and scope.
In this, they also analysed the PESTEL as well as SWOT analysis are accomplished also given
the positive and negative impact of all the environment factors. Business environment should
effectively and efficiently help in achieving the goals and objectives within a marketplace.
External factors affect every business within the company they have to analysed before
launching a new product at the place of working environment.
10
Illustration 2: Functional organisation structure

REFERENCES
Books and Journals
Chetwood, M. K.,and et. Al, 2014. Transforming a legacy IT infrastructure into an on-demand
operating environment. U.S. Patent 8,775,232.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
designing business architecture. Elsevier.
Gilboy, G. J., 2016. The myth behind China's miracle. In SEEKING CHANGES: The Economic
Development in Contemporary China (pp. 1-16).
Kaufmann, D., Kraay, A. and Mastruzzi, M., 2011. The worldwide governance indicators:
methodology and analytical issues. Hague Journal on the Rule of Law. 3(2). pp.220-
246.
Kaufmann, D., Kraay, A. and Mastruzzi, M., 2011. The worldwide governance indicators:
methodology and analytical issues. Hague Journal on the Rule of Law. 3(2). pp.220-
246.
Kian Chong, W., Shafaghi, M. and Leing Tan, B., 2011. Development of a business-to-business
critical success factors (B2B CSFs) framework for Chinese SMEs. Marketing
Intelligence & Planning. 29(5). pp.517-533.
Li, Q., and et. al., 2011. Towards the business–information technology alignment in cloud
computing environment: anapproach based on collaboration points and agents.
International Journal of Computer Integrated Manufacturing, 24(11) pp.1038-1057.
Li, Q., and et. al., 2011. Towards the business–information technology alignment in cloud
computing environment: anapproach based on collaboration points and agents.
International Journal of Computer Integrated Manufacturing, 24(11) pp.1038-1057.
López-Gamero, M. D., Molina-Azorín, J. F. and Claver-Cortés, E., 2011. Environmental
uncertainty and environmental management perception: A multiple case study. Journal
of Business Research. 64(4). pp.427-435.
López-Gamero, M. D., Molina-Azorín, J. F. and Claver-Cortés, E., 2011. Environmental
uncertainty and environmental management perception: A multiple case study. Journal
of Business Research. 64(4). pp.427-435.
Meiners, R. E., Ringleb, A. H. and Edwards, F. L., 2014. The legal environment of business.
Cengage Learning.
Meiners, R. E., Ringleb, A. H. and Edwards, F. L., 2014. The legal environment of business.
Cengage Learning.
Saleem, M. A., 2017. The impact of socio-economic factors on small business success.
Geografia-Malaysian Journal of Society and Space. 8(1).
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Tayur, S., Ganeshan, R. and Magazine, M. eds., 2012. Quantitative models for supply chain
management (Vol. 17). Springer Science & Business Media.
Türetken, O., and et. al., 2011, June. Enforcing compliance on business processes through the
use of patterns. In ECIS (p. 5).
11

Vaiman, V., Sigurjonsson, T. O. and Davidsson, P. A., 2011. Weak business culture as an
antecedent of economic crisis: The case of Iceland. Journal of Business Ethics. 98(2).
pp.259-272.
Wack, P., 2017. Shooting the rapids. Historical Evolution of Strategic Management, Volumes I
and II, 1, p.121.
12