Business and Business Environment Report for Northern Trust

This report provides a comprehensive analysis of the business environment, focusing on different types of organizations and their purposes. It categorizes organizations into public, private, and voluntary sectors, outlining their definitions, purposes, and legal structures. The report further examines the size and scope of various organizations, including micro, small, medium, and large enterprises. A significant portion of the report delves into the interrelationship between organizational functions, such as marketing, human resources, finance, operations, logistics, and sales, and how these functions are linked to organizational objectives and structure. It emphasizes the importance of these interrelationships for effective business operations and achieving competitive advantages. The report concludes by highlighting the significance of understanding business structures and the interconnectedness of functional divisions for achieving business objectives efficiently.

Business and Business
Environment

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
LO1............................................................................................................................................3
P1 Different types and purposes of organization...................................................................3
P2 Size and scope of a range of different types of organizations..........................................4
LO2............................................................................................................................................5
P3 Relationship between different organizational functions and their linkage to the
organisational objectives and structure..................................................................................5
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8

INTRODUCTION
The performance of a business organization is dependent upon the business
environment in which it is operating. A positive business environment results into ensuring
that the firm is operating effectively and profitably along with attainment of the competitive
edge. In this report, the evaluation of the different types of organization with its size and
scope which can be client of NORTHERN TRUST INVESTMENT BANK. It also covers the
interrelationship between the different functional units of an organization that is linked to
their business structure.
LO1
P1 Different types and purposes of organization
Basis of
comparison
Public Private Voluntary
Definition This involves the
non-profit
organizations which
is owned and
controlled by the
government
(Contractor and
et.al., 2020).
It involves the profit
making
organizations which
are both government
and private body
owned.
It includes the
bodies which carry
out the social
activities mainly by
the not for profit
organizations which
is non-governmental
in nature.
Purpose The purpose these
organization is to
deliver the public
goods and services
which incorporates
the police and
military
requirements, public
transit, infrastructure
and other things for
the betterment of
society.
These entities are
owned by private
individuals and the
groups with the
purpose of making
profits.
The main purpose of
these organizations
is to provide benefits
and the enriching the
society and
community at large
without any return.
It creates wealth.
Relation to the For instance, Virgin For example, ASDA Taking example f

chosen
organization
money is the UK’s
challenger bank
which focused on
offering good value
to its clients and
therefore, resulting
into positive
contribution to the
society.
which is an MNC is
focused on
generating greater
revenue and profits
and gaining
competitive edge.
the Cancer research
in UK, which
conducts research
and campaigns for
creating awareness
for preventing
cancer from the
society.
Legal structure or
organizational
structure
The financial
requirements is
delivered by the
government and it is
formed by the
government acts and
regulations.
The company has a
private legal
structure and
complies with the
companies act.
Through holding
effective
entrepreneurship, it
is able to support its
internal structure
and the 9 in clinical
trials units, 17
experimental cancer
centres and so more.
P2 Size and scope of a range of different types of organizations
Basis Micro enterprises Small enterprises Medium and large
enterprises
Size It involves the small
businesses in which
the employment
level is small along
with the capital
invested.
It is owned by the
independent bodies
and also involves
low number of
employees and is
seeking for
expanding the
business through
rising sales (Wanke
and et.al., 2020).
It incorporates both
types of workers
working as
voluntary
membership and is
mainly includes the
MNS which are
having the
possibilities to grow
at a faster pace.
Scope The developing They are the private They incorporate the

countries are having
the large constitution
of such
organizations where
all the requirements
are constrained by
the micro business
people. This adds to
the estimation of
their economy
consequently
augmenting the
degree for better pay
openings and
development and
bringing down of the
business costs.
Cancer Research UK
is a reasonable
illustration of this
sort.
bodies controlled
and owned by sole
owners where they
work in organization
and gets the
opportunity of
fluctuating in their
size and income
structure
appropriately.
TESCO is an
appropriate example
of this type.
global organizations
that fill in as a part
of the public
authority area and
accordingly earning
colossal incomes.
The capital that is
procured is saved
aside for future
formative purposes
subsequently trying
to build up the inner
parts of the
organization further.
Virgin cash is a
reasonable example
of this sort
organization type.
LO2
P3 Relationship between different organizational functions and their linkage to the
organisational objectives and structure
There is a very close interrelation among the hierarchical capacities, goals and
structure. The hierarchical capacities are put together and worked based with respect to the
authoritative goals and structures. Then again, hierarchical structures impact the general
nature and range of the organizational functions. Organizational functions don't work alone
rather they works all in all, that is collectively and produces unrivalled qualities and perform
better within an organization. An efficient and well organised business functions work better
thus better operational productivity, incomes and performances which benefits the partners.

The increasing competition and the risks, the different departmental roles have come
up within an organization which helps them in effectively and efficiently managing the
suitable business position.
Marketing and human resources department: The marketing department is
considered as an integral part of the business as it works on promoting the products and
services of an organization and enhancing brand (Attri and Grover, 2017). While the HR
division works on ensuring that the marketing team is having right skills sets for meeting
with the organization goals and objectives. The marketing department provides information
for recruiting a new employee based upon which the HR department prepares the job
description ands starts looking for the right candidate along with implementing the right
training sessions as well.
Finance and operations department: The function of the finance division is to
allocate resources to the different departments based upon the budget prepared. The operation
department states about the resources that it will require for undertaking the operational
activities of the business. Based on which the finance department carries out the cost analysis
depending on which the resources are allocated to the department.
Marketing and the production department: After carrying out the market research,
the marketing department sends the report to the production department which specifies the
direction in which the product should be produced (Crull, 2020). Based on the marketing
report, the production department starts the process of producing the goods as per the
specification which will help in effectively meeting up with the customers requirement and
thus, satisfying them and meeting with the organization objectives.
Logistics and sales department: The sales department working on selling of the
products after completing a sale successfully is the responsibility or the function of the
logistics department to effectively deliver the products to the customers. There is a direct
relation between the both the department as just mere selling is not enough, it is important to
ensure that the product is delivered to the customers on time. This is an important process
which helps in guaranteeing that the business is growing and is moving in the direction for
effectively meeting with the set objectives.
Interrelationship among the business functions is evident within the different kinds of
organisations which make it conceivable to convey the items and services to the clients. This
perspective explains that it isn't sufficient to include all the functions inside an organization
however legitimate interrelation among them alongside better control and leadership in those
capacities can serve a huge segment of the clients and benefit competitive edges. There are

different types of focal points of this interrelation among the business functions alongside
different weaknesses. Better interrelation among the business divisions and by
implementation of the right organization structure and also plays an important role in
effectively managing the business goals.
CONCLUSION
It can be inferred from the above that there are different forms of business structure
which an organization is needed to understand for determining its own and along with
determining its target clients as well to whom it can offer its products and services. Along
with this, every function division in an organization is interlinked to another which helps in
ensuring the business activities will be carried out effectively. Through this, an organization
can accomplish its business objectives in a far better way.

REFERENCES
Books and Journals
Attri, R. and Grover, S., 2017. Analysis of quality enabled factors of production planning
system stage of production system life cycle using interpretive structural modelling
approach. International Journal of Productivity and Quality Management. 22(1).
pp.22-41.
Contractor, F. J. and et.al., 2020. How do country regulations and business environment
impact foreign direct investment (FDI) inflows?. International Business
Review. 29(2). p.101640.
Crull, D. D., 2020. Organizational Innovativeness Among Employees in an IT Operations
Organization: A Self-Determination Theory Perspective.
Wanke, P. and et.al., 2020. Business environment drivers and technical efficiency in the
Chinese energy industry: A robust Bayesian stochastic frontier analysis. Computers
& Industrial Engineering. p.106487.