Business and Business Environment Analysis Report - Natwest Bank

This report provides a comprehensive analysis of different types of businesses, including public, private, and voluntary sectors, along with their objectives, legal structures, size, and scope. The report uses Natwest, a commercial bank in the UK, as a case study to illustrate these concepts. It delves into the relationship between organizational functions and how they link with the firm's objectives and structure. The analysis covers micro and macro environments and their impact on businesses. The report also examines the objectives, legal structures, and functions of public, private, and voluntary sector organizations, providing examples such as London Transportation, Iceland, and St. Andrew's charity. The report concludes with a discussion of the interconnectedness of various departments within an organization like Natwest and how they contribute to the overall success of the business.

Business and Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different types and the purpose of organisations along with their objectives, legal structure,
objectives as well as size and scope.......................................................................................1
TASK 2............................................................................................................................................6
Relationship between organisational functions and the way they link with firm’s objectives
and structure...........................................................................................................................6
TASK 3 & 4.....................................................................................................................................9
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business is a term in which the activity of producing good and services are being done
with it. The business environment is a essential term which could directly or indirectly can
influences the firm in any manner. Before setting up of any business firm the entrepreneur has to
consider that what all are the factors which they needed for the success of the company (Ahmed,
Aamir, and Ijaz, 2011). The business environment can be distinguished in two forms i.e. micro
and macro. Both of these can affect the firm in a positive as well as in negative manner. In this
report, all the questions are being solved in context of NATWEST which is a commercial bank
in the UK. In this report the topic which is being covered is about different types of business
enterprise. And strength and weakness of the firm is being identified. Macro and micro
environment is also being explained and it impact on business is identified in this report.
TASK 1
Different types and the purpose of organisations along with their objectives, legal structure,
objectives as well as size and scope
Public sector organisation- This kind of enterprise is owned and run by the government
bodies. They have different types of regulatory bodies such as local, agencies and national. They
have the responsibilities and power to make new changes and policies as well as rules in the
country. This is a sector which works for the public and makes policies and rules in favour of
them so that they can gain a lot of benefits.
Legal structure
1

There are two forms of the public organisation which are:
General government
 Central government- It is an essential form of government and their major task is to
regulate rules and policies for nation. The rules and regulations are being passed through
and shared with the ministry bodies. Along with that, main work of them is to collect all
taxes and they use to print the money.
 State government- They are the government bodies which share the power with national
bodies (Auzair, 2011). For them, it is important to have control over the nation’s
government. Their main work is to control the educational things and make rules for
universities, etc.
 Local government- This is the form of government that is made especially to control over
and make rules and regulation for the little parts such as in city, towns, etc. they focus on
the societies and all.
Public corporation
2
Illustration 1: Legal structure of public sector
organisation

In this form of public organisation, the shares are being traded in stock exchange that are
being kept by many people and it is known as public corporation.
Private Sector organisation
The firm which is run privately is managed and owned by individuals as well as rules and
regulations are being made by that person only (Barnett and Salomon, 2012). Their main aim
behind owing this type of firm is to earn maximum profits. They do not work in no profit and no
loss condition. Private sector is having various types which are described as below:
 Sole trade
 Partnership
 Franchises Cooperative
Objective - Main purpose of this company is to make their business reach at a high level and
achieve a strong position in the marketplace. With this, they increase their sales as well as
productivity.
Legal structure
Illustration 2: Legal structure of private sector organisation
3

 Sole Trade- In this, an individual establishes the business alone with his rules and
regulations. He is the only person to run business and all profits and losses which occur
in the firm comes in their part only they have to bare it alone. This type of business
requires a lot of investment to be there before starting business and in between also
(Boons and Lüdeke-Freund, 2013). objective of this sector is to earn lots of profit, and as
that use to be managed and owned by individual person all the profits and loss is his own.
There vision is to stay for a long and earn profit. Advantage of this firm is that all the
profit which will come in the firm will only have one owner. But the main drawback is
that all the losses has to be bare by that individual only.
 Partnership- In this type of business, two or more people come together in an agreement
to start a business. All the things which will happen in the organisation would be
according to them all, they have to invest equally and even all the loss which will occur
in the organisation has to be bare by all the people together and the profits has to share
equally. The profit and loss can be divided among them equally or it may be according to
the ratio which they had decided. The partnership firm has a advantage which is that the
work is being divided among all the partners by which burden will not come at any
individual, and the loss which will occur will be bared by all together. Disadvantage in
this is that the profit which will be earned by the firm has to be divided among all so that
may sometimes will be less.
 Franchises- The franchises is a kind of chain store which is owned and opened at various
places it provide the products and services to people are various places. Advantages is
that people will get goods and services at various places and the stores which are opened
is not by the company some of the people takes the franchise and open the shop by their
own so company is getting wider without doing some much of expense.
 Cooperatives- This is a form of company which is owned by the individuals for their
advantages and in this, it is essential to contribute each and every part so that they can
have a proper control over enterprise (Borio, Drehmann and Tsatsaronis, 2014).
Voluntary sector
This type of firm is basically made with some group of people together. This is ruined in
non-profit condition they do not owned this business to earn the profits. Main purpose of this
4

firm is to provide help to the people who are in need of it and that are suffering with some or the
other problems. All the people who are involved in this firm work for the welfare of society
(Bryman and Bell, 2015). They collect denotation by which they can help the people which is
required money or any other services to treat the problems or the disease they have.
This type of firm works on the non-profit basis to provide help to people who are in need.
They help those having poor financial condition and in need of money to get treat for their
decease. This sector focuses on helping as much people as they can by the funds or donations
which they receive from society or by any of organisations. In this world, there are a lot of
voluntary firms working to provide help to the needy people (Chesbrough, Vanhaverbeke and
West, 2014).
Public Sector Organisation
London transportation is a public company which is owned by the government. It deals
with various transportation services such as buses, road ways, rails systems, etc. They focus on
providing the services to customers through different places.
Size- It is having 28000 employees working over there and its revenue in 2015-16 is 11.5 billion.
Scope- They want to provide various services to their customers by different ways.
Vision - Vision of company is to have their company with the other partners, and to have a safe
and secure conveyance system (Chang, Hughes and Hotho, 2011).
Mission - Mission of London transportation is to protect the environment in an effective
and efficient manner.
Private Sector Organisation
Iceland is a private company that works in the food market sector. It is located in the UK
and uses variety of food items to the customers such as, vegetables, non-veg, dry fruits and many
other things. They do also have 2% of the grocery market. Vision - Vision of Iceland is to provide various types of goods and services to their
customers at different places at an affordable price. Mission - Mission of company is to offer good quality products and services to their
customers and fulfil the demand of them in short period of time (Chavis, Klapper and
Love, 2011).
5

 Objective - Main objective of this firm is to increase their market share and to gain higher
profit in return. It is very required thing for them to improve their market and they have
to earn effective profitably. Size- In Iceland, there is approx. 23000+ employees who are working over there and their
revenue is around 160 million per annum.
 Scope- They want to provide better quality products and services to their customers at
various places and at low price. They want to spread their company at different places.
Voluntary sector
The group of people working behind the NGO's wanting to provide education to every
individual, provide the medical help to them, they gives advice to the people. St Andrew's is a
charitable organisation which deals with the people who are in the need of help or want to have
proper treatment as well as any other kind of help.
Vision- The vision of this sector is to open more and more voluntary sector at various
places so that people can easily come in touch with and health of people can get better.
Mission- To treat more people and make them cure, they want to reach out more people
which are suffering from various diseases and illness.
Objective- There main object is to make the environment good and make people aware
about all the required things about their health.
Size – In this firm, there are group of people who are working to provide high quality services to
approx. 600 people. They are earning approx. 2.5 million per annum.
Scope- They are trying to collect more and more denotions with people and can be able to help
as much as needed people they can and treat them and make them decease free.
TASK 2
Relationship between organisational functions and the way they link with firm’s objectives and
structure
NATWEST is a retail bank which is located in the UK. It provides various kinds of
services to the customers at different places through distinct sources. In their organisation, they
follow hierarchical structure and divide as well as make sure that they would do their
responsibilities, rules and duties in proper manner by their staff members (Crane and Matten,
2016).
6

Objectives of NATWEST are explained as below:
 It is essential for the firm to improve their growth and for that, they have focus on their
performance.
 It is required for the organisation to provide high quality products and services to their
customers in affordable price so that all people would become able to buy the products.
 If company will get success in improving their profits then it will be easy for them to
provide the best possible returns to their bondholders (Demil and Lecocq, 2010).
 They have to make proper plans while producing any product so that they can control the
wastage of any useful thing.
In organisation, there are many different form are their so that they can perform all their
day to day activities properly and the business can be able to run in smooth and correct manner.
In NATWEST, many departments are running and performing different functions having
interrelation with each other. Some of the departments are described as below:

 Finance department- It is required for the employers to maintain the It is required for
manager to keep up records of affiliation viably and proficiently (Ahmed, Aamir and Ijaz,
2011). On the off chance that they issue their offers to individuals then they can without
much of a stretch raise subsidize for their organization. Thusly, this division is connected
with others in light of the fact that their primary reason for existing is to make or choose
spending plan for different bureaus of organization.
 Human Resource: Main obligation of this office is to oversee human assets of
NATWEST. In the event that business of big business needs to enhance execution of
their work then it is essential for them to offer preparing to them (Dong, Wu and Hou,
2009). Also, it is important to provide better working surroundings to them with the goal
that they can do their errand in a powerful way.
 Administration department: Fundamental point of this unit is to offer help to work of
firm. It is fundamental to oversee association in a satisfactory way. Individuals of this
division do their work as an association between labourers and additionally, senior
director of NATWEST.
 Production department: It is basic for each association to get resources viably with the
goal that specialists can use it in a sufficient way (Edquist, 2010). Manager of
7

organization can in like manner a few strategies for this, and it might incorporates, work,
stream, clump etc.
 Research and development department: This unit is essential for each kind of
relationship as business needs to decide needs and needs of their purchasers, with the
goal that they can fulfil it opportune (Auzair, 2011). Alongside this, they can without
much of a stretch adjust their merchandise and enterprises in a satisfactory way.
8

9

All the departments are interlinked with each other at some of the points, like- finance
department has the responsibility to provide fund to the other departments whenever they need.
And marketing department use to help the other department to collect the information regarding
the market and the trends and requirements of market. Like this all the department are connected
to each other at some points.
TASK 3 & 4
10