Miles and Snow's Typology

This assignment provides an in-depth analysis of Miles and Snow's typology, a framework for classifying organizations into four types: defenders, prospectors, analyzers, and reactors. The analysis explores the strengths and weaknesses of each type, as well as the impact of political factors and social elements on organizational performance. The conclusion highlights the importance of understanding an organization's typology to make effective decisions and achieve success.

Business and business
environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1............................................................................................................................................1
P2 ...........................................................................................................................................2
TASK 2 ...........................................................................................................................................4
P3 ...........................................................................................................................................4
TASK 3............................................................................................................................................5
P4 ...........................................................................................................................................5
TASK 4 ...........................................................................................................................................8
P5 ...........................................................................................................................................8
P6 ...........................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11
Miles and Snow's Typology...........................................................................................................12

INTRODUCTION
A environment of business is delimited as a sum of all micro and macro components
which affect the functioning and operating of an organizational entity. It is necessary for
organisations to know what are these factors that affect the success of business so that there will
be less chance of failure in business. A business environs is the process of intrinsic and
extraneous components that affects the operating situation of a company. The business
environment can include different components like competition in the market, ownership,
clients,customers and suppliers, alteration in technologies, trends and modes in market and
society, governmental activities, etc. The establishment which have been chosen in this report is
Metro bank plc. which is a retail bank situated in UK since 2010 and was founded by Vernon
Hill and Anthony Thomson. Metro bank is one of the earliest broad street bank established in
UK. For analysing the strengths and weaknesses of the bank, this report includes SWOT and
PESTEL analyse of the company.
TASK 1
P1
In a business environs there are various kinds of organisation which are operating and
working such as voluntary, public and private enterprises. The objectives and goals of these
organizations are different from each other. The various kinds of organisations are listed below -
Private limited – This is enlightened as a type of organisation which is a small enterprise
started by a new entrepreneur or businessperson. These organisation are liable for the
shareholders to pay some liabilities and shares of these companies can not be sold publicly. Sole traders – Under this type of establishments, individuals are responsible for handling
of various business activities and tasks of the organisation. Both profits and losses in
bushiness can be assigned or allotted to the individual owner of the company. Partnership – This is the most suitable manner for conducting a snobby enterprise when
owner or businessperson is facing an issue of lack funds. These type of business can be
divided into two categories that are partnership of two partners and partnership of more
than two domestic partners. Both the partners have to put wealth for running the
organization and they have to lend in doing transaction and purpose of the organization.
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Public Limited Company (PLC) – This type of establishment is an administration i.e.
governed by state or central government of the country. Private limited companies render quality
in business offerings and help in providing basic necessary products to customers. These
products include health care companies, fertilizer companies, lipide and gas companies, etc.
These organizations have the primary impersonal of raise national economic system. Local authorities – In specific state, general government are the authorities which
monitor and control the operations of particular city administrations.
 Central government department– These are the specific state companies which
endeavor by cardinal authorities.
Voluntary Sector: These sectors are defined as not-for-profit or non-earning companies and
these do not need any monitory benefits for running these companies. Those companies which
are known as non profit organization and these do not get any income for doing business. For
exampl, Wellcome Trust which was established by Henry Wellcome in 1936 is a voluntary
sector enterprise of UK which has an overall objective of conducting research in biomedical
field. Unincorporated association- These associations are the administration commissions of a
company or also can be derived with the name of councils. Although, unorganized
affiliation haven't any sharp recognition from trustees.
 Trust- In the trusts, they have few trustees who provide funds and resources to perform
day to day operations.
P2
Various kind of companies have assorted size and extent. They can be bifurcate on the
basis of their shareholders or owners, structure, culture, offerings, mission, vision, etc. Assorted
sizes and scope of various organisations are defined as under:
Private limited
The companies which are closely-held by snobby possessor are known as private limited
enterprises. Earning maximum profit and increase the revenue and capital of the owners is the
main objective of these entities.
Background: Metro Plc bank is a merchandising bank which was started in United
Kingdom and the organization was developed by Anthony Thomson and Vernon Hill in the year
2010.
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Mission and Vision: The main mission of selected bank is to stimulate economic growth
within the undeserved communities of Kentucky, Jefferson county, etc. The vision of this bank is
to empower an individuals and client's business. Objectives: The objectives of the firm is to provide the assistance in sustainable
improvement of social group by their organizational model. Products: This is a private bank which deals with credit cards, consumer banking and
corporate banking terms. Size: Metro bank is conducting its business at 67 locations around the world.
 Structure: Lean organisational structure is adopted by The metro plc bank for getting
attain of number of consumers.
Public Limited Company (PLC)
These kind of establishments are operated by the authorities of specific country in order to
render quality services to the customers so that their living standards can be raised. For example,
NICE ltd. is one of the biggest technology establishment in Israel is a public sector organisation. Background: NICE Ltd which has its headquarter in Ra'anana, Israel was established in
the year 1986. Products and services: The firm offers business IT consultation as well as business
intelligence software that works on video and speech analytics. Objectives: The main objective of the firm is to become one of the prime organization for
attaining growth by rendering high quality services as well as products to customers. Vision: The selected enterprise create values for its owners and stakeholders by providing
world class performance and become most prestigious business organization. Mission: The mission of the firm is to be informative and innovative. Size: The respective organisation was conducting its business with a net operating
income of $134.2 million and a net income of $ 116.9 million with approx. 4,930 staff
members in the year 2016.
 Structure: NICE Ltd is following Matrix structure for internal organizational
environment.
Voluntary sector
Voluntary sector organisations those firms which work for the welfare of society and
gaining profit and increasing wealth is not their main objective. Wellcome trust is an example of
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voluntary sector organization which has approx. 2,000 personnels within it according to the data
of 2017. The principle of this trust is to improve and maintain the health of their customers by
conducting regular biomedical researches.
 Vision- The vision of the firm is to organize special and specific research for
improvement in health of animals as well as human being.
 Mission- The mission of the company is to function and operate its medical research in
such a way that no one has ever conduct in this field.
TASK 2
P3
There are various departments in an organisation which work efficiently for attaining the
aims and objectives of the organization in less time period. These departments are interrelated
and they have to work in a synchronised manner so that targets can be achieved in less time. The
various departments in Metro Plc bank are finance, Human resource departments, marketing, etc.
The interrelation of these are described as under -
Finance department - Metro Plc bank's financial department is related to financial
aspects of the business like cost of the services and products, sales growth, profits, financial
efficiency. This division is responsible for providing money and price required for doing various
tasks and activities of the company. The major function of this department is to manage finance
given to every department. The finance department of bank provides money to Human resource
department for hiring and recruiting right candidates for the company. Finance department helps
marketing department by providing efficient funds that can help in promoting services offered by
Metro Plc bank.
Human resource department – This department of the company is answerable for
recruiting people who can work n the company and achieve the objectives and targets of the
establishment in particular period of time. In context of Metro Plc bank, this department works
effectively for hiring the best candidates who can help in providing customer satisfaction and
trust. If good candidates are hired for the bank it will assist in attaining the goals and objectives
in minimum time. This will also provide help in improving profitability and proficiency of the
establishment.
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Marketing department – Marketing department of selected company is related to aspects
such as sales volume and target, publicity by promotions and advertisement, analysis of
competitive sales, data mining, etc. In context of Metro plc bank, it is important for this company
to achieve the targets of sales. For proper functioning of marketing department, this company
requires money and finance department provides a proper budget and fund for accomplishing
this.
TASK 3
P4
A PESTLE analysis is a structure that is exploited for analysing different extraneous
components that affects the working of an organisation. The PESTLE analysis provides
information about the operating challenges that Metro Plc Bank has to face within macro
environment other competitive forces. As Metro Plc Bank is a firm that is operating in various
nation this is significant for this bank to analyse macro components before incoming into a new
country for business or creating a new business concern in the existing marketplace. The various
components which have impact over organizational environs of Metro bank Plc are described in
below mentioned points-
Political factors – These include various political rules and regulations that plays a
significant role in estimating the factors which have impact on profitability of Metro bank Plc.
This bank is conducting business in different nations and it has to follow various political
environments and political system hazards. The main reason for success of this bank is the
systematic way of analysing the risk of political environment. Positive impact - The political factors of countries change rarely and business expansion
of Metro Plc bank has always been appreciated in all countries as it operated by
following all rules and regulations abide by government of the nation.
 Negative impact - Sometimes it is difficult for the companies to obey all rules and
regulations of the company. The Metro Plc bank has experienced negative impact on the
company's operations while it was operating in countries with lower economic growth.
Thus, it is advisable for the company like Metro Plc bank to have proper knowledge
about the expansion before starting business in a new country.
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Environmental factors – There are different norms and standards of environment that
impacts the profitability of the organisation in market. There are liability laws of different
countries that affects functioning of the business. The firm various situational laws and should
examine environmental modular before launching a new business idea into existing market or
entering into a new sector. Various environmental elements which are considered while
operating a business are recycling, weather, waste management, climatic condition, renewable
energy, attitude towards ecological or green products and so on. Negative impact – There are numerous nations or economies which have risks of
unfavourable weather conditions and natural calamities where it is difficult to start an
establishment and be successful. Therefore it is advisable for Metro Plc bank to to
evaluate and analyse the various climatic conditions of the area before starting a new
enterprise.
 Positive impact – The business sometimes is developed in a particular country or
economy just because of the climate or weather conditions of that country.
Social factors – Social or societal culture is defined as the path by which environment
and culture of organisational workplace is affected. The shared cognition and beliefs of the
customers plays a significant role in understanding the customers of Metro Plc bank. The various
social elements which must be evaluated for leadership of Metro Plc bank are skills, culture,
education level of the population and demographics of banking industry within the economy. Negative impact – The fluctuation in the social attitude and trends of a market have
negative impact on the Metro plc Bank because it is dealing in a retail banking sector and
it is not easy for handling various changes which occurs in trends and living manner of
customers.
 Positive impact – Sometimes the operations and functions of the Metro Plc bank are also
positively affected by changes in social components. This organisation suggests that it is
important for companies to render quality business offerings to the consumers. This
helps in attaining customer loyalty and trust.
Technological factors – Technology is considered as a broad area which is expanding
rapidly in the business environment. The banking sector has changed rapidly within last 5 years.
This is important for banks to be competitive so that there is no chance of other competitors and
players of the industry to take place. To analyse the technical competency of the organization, it
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is significant to conduct a technological analysis of the sector or industry. A technological
analysis includes assessment of various elements such as impact of new technology on business
offerings, impact on cost structure, cost of technological diffusion, impact on chain structure and
others. Negative impact – The implementation of new equipments, technologies and modes
cause high price to the company. It is not very easy to adopt new software and systems in
the bank and use them effectively to meet needs of the customers.
 Positive impact – The utilization of latest technology is significant as it provides
assistance to this bank to provide good and quality products and services to people. This
also helps in creating positive image and respect in front of clients.
Ecological factors – Various types of micro and macro environmental factors to effect
the operations and functions of the Metro Plc bank are situated in the economy. These external
factors include inflation rate, savings rate, economic cycle foreign exchange rate, etc. and the
internal ecological elements involve competitive terms. The metro Plc bank uses economical
situations of the nation or marketplace such as inflation, growth rate of banking industry,
spending capacity of the customers and other industry economic indicators. Negative impact – It is not profitable to banks for operating and working in a low
economy country. It may affect the operations and functions of the bank adversely if the
market does not have firmed and stable policies.
 Positive impact - The Metro Plc bank may be expand the business in new countries
where economy is high and there are fixed exchange rates. This helps in smooth
performance of the organization across numerous economies.
Legal factors – Some of the nations or economies have not implemented institutions and
legal frameworks so sufficiently that they can protect the intellectual property rights of the
company. Thus is is advisable for companies to evaluate legal framework of the company before
entering into new markets. This can lead to theft of secrets of the company and decline in the
overall competitive edge of the industry. The various legal factors that leadership of Metro Plc
Bank should consider while entering into a new market involves anti trust laws, discrimination
regulations, employment legislations, health and safety laws, data protection, e-commerce and
consumer protection and other laws.
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 Negative impact – Various rules and regulations which are implemented by the
governing authorities and are necessary to be followed by the organizations in order to
conduct their business in appropriate manner but they cause decrease in sales volume and
profitability of the firm.
 Positive impact - This is significant for The metro Plc bank to expand the business by
earning more revenue for increasing international market share. The Metro Plc bank
analyses all policies and rules of the company and then operates business.
TASK 4
P5
SWOT analysis is defined as a process of assessment and evaluation of various strengths
as well as weaknesses that is helpful in defining the opportunities and competitive edge of
companies. Strength and weakness are those factors which include elements that can be
controlled. Threats and opportunities are related to the macro environmental factors which are
not possible to control by the company directly. At the time of operating in various markets,
SWOT analysis can help in evaluating utmost weaknesses, threats, opportunities ans strengths of
an establishment. An analysis of SWOT for Metro Plc bank is given below -
Strength Weakness
 There is a high growth of this bank in
recent years as there is an increase in
account holders.
 This company has won various awards
within three years for performing good
in the market.
 This bank is opened recently and
consumers are not having trust on this
bank.
 This bank is facing problem in raising
funds from notable investors.
Opportunity Threats
 This bank has a unique position and it
is a first high street bank that is
leveraged.
 This bank can start online platform for
operating that will help in increasing
 The main threat of this bank is the
increase in competitors in market.
 The adverse banking environment and
fluctuation in economical scenarios are
also threat to this bank.
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growth because of the increasing
internet penetration.
P6
The strength and weakness of the Metro Plc Bank are analysed before entering into new
countries and starting business over there. The major macro environmental components that have
impact over performance and operating of Metro Plc bank are political elements and
technological elements. Thus it is crucial to know how these factors will be an opportunity for
doing a successful business. These macro factors are mentioned as under -
Political factors – These include the elements which are influenced by the governmental
laws and legislations which are followed by the company for avoiding any political disputes.
This bank is operating in various economies and thus it is crucial for this bank to analyse the
governmental rules for making effective decisions that are regarding direct trade policies,
licensing policies, tax regulations and so on.
Strength Weakness
 If the Metro Plc bank will follow all
governmental rules and regulations
then it will easily operate in different
countries.
 This bank has adopted all governmental
rules and regulations and thus this bank
has not faced any issue related to the
industry laws, tax policies and labour
laws.
 These elements affects bank's
functioning and operating.
 Unstable political condition will
decrease the performance of the
organization and employees as well.
 An adverse political situation is not
good for the establishment as it
negatively affects the decision making
power of the organization.
Social factors - These elements are essential to be analysed like the demands and trends
of customers, the lifestyle of clients, important for an organisation to evaluate the demands of
customers for improving the quality of products and services of the company. These societal
components has impact over the lifestyle and other factors of life of a person's life like
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community, family, social and economical status, religion and others. The elements are analysed
before offering services and products to customers for making good profits and money.
Strength Weakness
The overall objective of The Metro plc bank is
to provide good bank services to account
holders . A good service which is provided to
customers will help in meeting the loyalty and
trust of customers. Customers' loyalty and trust
can be attracted towards bank with help of it.
Fashion, trends and lifestyle of the customers
are being fluctuated. Nowadays customers
require more security of data and thus they will
prefer banks which are providing a lot of
security of account.
CONCLUSION
With the help of above analysis it is terminated that organizational environment is an
essential component to be evaluated by the entrepreneurs so that chances of failure are less. It is
important for the company to do analysis like SWOT or PESTLE that is important for knowing
the capability and failing of the organization in doing business. All the functions in the company
are interrelated and these require helps of each other in accomplishing goals and objectives of the
organization in less time. There are both affirmative and antagonistic effect of large components
on the operations and functions of business.
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Miles and Snow's Typology
Miles and Snow's Typologies. 2019. [Online]. Available Through:
<https://ebrary.net/3737/management/miles_snows_typology_defender_prospector_analyzer_rea
ctor>.
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