Business Environment Analysis: Firm Types and Strategic Evaluation

This report offers a comprehensive analysis of different types of business firms, encompassing private, public, and voluntary organizations. It delves into the operational structures, sizes, scopes, and objectives of each type, providing examples such as NATWEST, Marks & Spencer, and the NHS. The report explores the merits and demerits of each business structure and utilizes PESTEL and SWOT analysis techniques to evaluate the internal and external factors impacting the firms. It examines the relationships between different business enterprise structures and their influence on business operations. The study provides insights into the positive and negative impacts of the macro environment on NATWEST and assesses the combined effects of micro and macro environments using SWOT analysis, culminating in a detailed conclusion and references.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Several type of business firms.....................................................................................................1
TASK 2............................................................................................................................................5
Relationship between two type of business enterprise structure.................................................5
TASK 3............................................................................................................................................8
Positive and negative impacts of macro environment of NATWEST bank ..............................8
TASK 4..........................................................................................................................................10
Impacts of both micro and macro environment with the help of SWOT analysis technique. . .10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
.......................................................................................................................................................14

INTRODUCTION
In this recent scenario, Regularly growing business firms across all over the world, which
provides several opportunities to persons. In this light, it is very important for every
organisations to properly analyse and evaluate major internal and external factors while using
smart techniques and methods. Furthermore, it directly impacts on working system,
management, employee’s working performance and so more. This assignment will be
demonstrate about different type of organisations as well as their size, scope, purpose. Apart
from this, NATWEST is a large retail and commercial company of UK, which rendering several
kind of financial services and facilities to customers. Furthermore, this report will be discussing
about different type of organisations and several type of business structures with proper effective
examples (Teece, 2010). In this addition, PESTEL will be used for determining and analysing all
major factors also for identifying actual and current position of the firm, SWOT analysis
technique will be used.
TASK 1
Several type of business firms
There are different type of organisations, which focuses on to increase profitably and
production of the firm in the appropriate manner. Basically, business firms facilitates to provide
employment to society. Due to, people can learn something new things as well as enhance their
working performance and skills in a appropriate way. In this addition, there are various kind of
enterprises such as profit and non-profit organisations (Drucker, 2017). Its working style,
structure, size, scope and purposes are different from others. Apart from this, every business firm
are working for achieving some decided targets and goals in minimum time.
Private organisation: Private business firms are controlled and managed by an
individual person as per their rules and regulations, it is not owned by government of the nations.
Because they does not have any rights and powers to operate enterprises. Private business firms
are run their business for the purpose of earning profit also they focuses on to build an brand
image in the external market place (Iskanius, Page and Anbuudayasankar, 2010). Due to, private
companies are easy to establish in market also
they can easy to get attention from high number of profit. For example, NATWEST is one of
leading and largest commercial and retail bank of UK, which facilities to provide financial
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services and facilities to customers such as insurance, loans and so more. It was established in
the UK by merger of National Provincial Bank and Westminster Bank in 1968. Further, it has
some merits and demerits which will defining under follows:
Merits
 One of the major advantage of private business firm, its regulated and controlled by
individual person of the company which also knows as owner of the firm. Because he has
all powers and rights to operates their business as per their rules and regulations.
 Private organisation are more flexible as compare with other companies, due to they
perform their tasks in a significant way.
 As like public companies, in private companies not require to conduct statutory meeting
in every month or in three months ( Cantwell, Dunning and Lundan, 2010).
Demerits
 Private companies has limited number of membership, sometimes its impacting on
working performance of the organisation.
 These enterprises are does not provide proper safety and security to employees, due to
they cannot effectively perform their tasks as well as reduce their moral towards their
works.
Size of NATWEST
NATWEST is one of the largest commercial and retail bank of UK, it facilities to give
financial services and facilities to customers such as insurance and loans. In this current scenario,
it also knows as Royal Bank of Scotland Group. Apart from this, approximately 34000
employees are currently working in this organisation. Employees or workers of this firm
concentrate on to understand customers as well as their demands, then as per their needs
employees provide services to them. Better understanding and interaction positively impacts on
firm, it helps to enhance profitability and effectiveness. Leading strength of this organisation is
that, in this current time it has approximately 8 billion customers as well as 8,50,000 small
business accounts (Aterido, Hallward-Driemeier and Pagés, 2011).
Vision : NATWEST focuses on to provide better financial services and facilities to
consumers as well as they wants give proper satisfaction to them towards their needs.
Mission: This bank wants to become one of largest leading organisation of UK.
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Scope of NATWEST: This organisation wants to expand their business in several areas
as well as facilities to provide impressive financial services to customers. While any kind of
business decided to expand their firm in different sectors, this is one of the best opportunity to
increase production and profitability in the appropriate manner. Further, NATWEST tries to
understand customer’s needs and their requirements. Because employer of this firm wants to give
proper satisfaction to them towards their demand (Chavis, Klapper and Love, 2011).
Objectives of firm: Every organisations has their own objectives and goals , which
wants to be achieve in future in minimum time. In the context of NATWEST, it has some
objectives and targets such as:
 One of the major objective of NATWEST is give fully satisfaction towards their
requirements.
 This bank wants to become a large financial organisation of UK, as well as it wants to
build a brand image in customer’s mind due to they can easy to make trust on their
services and facilitates.
 It facilitates to compete with other banks, due to it can enhance their profitability and
effectiveness in the appropriate manner.
Public business enterprises- These type of enterprises is generally controlled and
managed by the government or by the public authority. In relation to this, the public
organisations are totally under the control of public. The main purpose of these business firms is
to work for the people and also for their welfare (Welford, 2013). It provides goods and services
at reasonable cost. In addition to this, Marks & Spencer is a public business enterprise and its
main objective is to produce better quality of goods and services from using the quality raw
material. This business firm deals in selling many products such as accessories, clothing, books,
luxurious food items and many more in United Kingdom country.
Advantages:
 The major benefit of public business industry is that; it can increase the capital for
expand its business firm with the help of selling the additional shares.
 It has good and high status or goodwill as comparison to the private business
enterprises.
 The shareholder’s liability is limited.
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Limitations:
 There is an authority to public companies to reveal all their financial statements
between public and its stakeholders.
 The shareholders do not have any kind of control on business.
Size of Marks & Spencer- It is a largest business firm and it is also a big multinational
business industry in United Kingdom. This firm is listed in the London Stock Exchange. It sells
products such as clothing, luxury food items, hair and beauty products etc. It is established in
year 1884 and its owner is Michel Marks and Thomas Spencer both, they both are partners.
Marks & Spencer has around 959 stores in United Kingdom and it has many international stores
in many countries such as Turkey, Russia, Ireland, Poland etc. (Commander and Svejnar, 2011).
Vision- The vision of Marks & Spencer business firm is to develop a better and unique
incorporation of its stores by using the new technology in an effective and proper manner.
Mission- It mission is to develop and produce the better quality services and products to
its consumers.
Scope if Marks & Spencer- It is a retail business firm and its it sells home products,
clothing, luxury food items and also the beauty products. In addition to this, company can
increase or expands its business in all over the world.
Objectives:
 It provides high orientation of staff members.
 To recover its market position with the help of delivering good quality products
and services to its loyal customers.
 The main motive of Marks & Spencer is to raise the sales of its products and also
enhance the customer’s satisfaction level.
Voluntary organisation: Basically, organisations are categorised into two parts profit
and non-profit. Voluntary companies are included in non-profit companies, its not concentrate on
to earn profit. Voluntary enterprises are focuses on to provide basic services and facilities to
persons such as house, education, shelter, clothes and so more. These kind of enterprises are
controlled and regulated by government of the nation, because all rights and powers to regulate
and operate voluntary organisation has within the legal authorised. So, they enacted their own
rules and regulations for managing and controlling business activities in the effective manner.
For example, NHS (National Health Care Service) is an voluntary organisation of UK, which
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working for society. It provides health care services and facilities to society, so they can
effectively solve their health issues and problems in the significant manner. This non- profit
institution established in England, Scotland and Wales. Basically, NHS working for society
welfare, due to, this organisation already set a brand image in market place. Voluntary
companies has some merits and demerits such as follows:
Advantages
 Voluntary organisations more flexible as compare with other companies, due to they can
easy to operate their business.
 Basically, these firms are regulated and operated by government of the country according
to their rules and regulations (Wild, Wild and Han, 2014).
Disadvantage
 One of the major demerit of NHS is, it does not have separate legal entity, due to, these
firms cannot build their own image in external market place.
 Another one is, it doest not authorised by individual person's name.
Size of company: NHS is one of the largest and leading voluntary organisation of UK, it
facilitate to supply health care services and facilities to society at free of cost. Also it can be
consider in 2015-2016 , NHS provided approximately 1.9 million employment and several
opportunities to persons so they can lean something in their life as well as enhance their working
performance and skills in the effective manner.
Scope: The major purpose of NHS is want to expand their business firm in different
areas, so they can effectively resolve health care services.
TASK 2
Relationship between two type of business enterprise structure
Organisation structure refers to, it is a effective concept which defines all business
activities and operations are systematically and in a proper sequence maintain as per their
priorities. It helps to manage and control all business operations as well as with the help of this
will effectively achieve organisational goals and objectives in minimum time. Basically,
business structure are categorised into three parts such as top, middle and lower level. Better and
impressive organisation structure assists to manage business activities as well as it aids to
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increase motivation level of employees. For managing and developing healthy environment in
the organisation, it is important to choose suitable working structure as well as must be conduct
several kind of motivational activities for employees. Furthermore, there are several kind of
organisation structure, which helps to manage and control all business operations in the
appropriate manner (Wheelen and Hunger, 2011). Mainly, it can be explain within two concept
such as:
 Basically, it can be define as an fundamental foundation, in which can take participate all
employees of the organisation.
 Apart from this, it provide a proper direction and guideline for managing and controlling
activities of the firm. In this addition, there are three type organisation structures such as
under follows:
Functional: This type of business structure helps to manage and control business
operations such as allocation of resources, coordination, motivation, confidence level and so
more. In this light, will significantly choose appropriate and suitable methods for completing
task in the appropriate manner.
Divisional: Divisional business structure is mainly categorised into various sections as
per the activities and operations. With the help of this, significantly complete works as well as it
aids to achieve them in the minimum time period (Bryman and Bell, 2015).
Matrix: In this kind of organisation structure includes group of employees on the basis of
works and tasks. Moreover, also it can be defined as a mixture of functional and divisional
business framework. Matrix organisation constitution assist to define major strengths,ad
weaknesses of the firm as per that employees will significant can take appropriate action to
reduce weak points.
NATWEST: It is retail and commercial bank of UK, which provides several financial
services and facilities to customers such as insurance, loan and so more. Basically, NATWEST
established in 1968 in UK. This organisation mainly using function organisation structure in their
working environment for managing and controlling business activities and operations in the
effective manner. This company's working structure explaining under follows:
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Illustration 1: Organisation structure of NATWEST
(Source- Company legal structure, 2017)
In the context of organisation structure of NATWEST, on the top level management
includes The Royal Bank of Scotland Plc. Basically under this, includes four sub sections of the
department (Company legal structure, 2017). Furthermore, NATWEST Holding Limited also
categorised into three main sections. In the last, under this sector involves other more
departments such assist to mange ad control operations and activities of the bank. Basically,
organisation structure is categorised into three sections such as top, middle and lower level. Top
level management of the firm has all rights and powers for regulating and controlling business
activities as per their rules and regulations (Trkman, 2010).
Another one organisation has been selected Marks and Spencer, it is a multinational retail
market of UK. It provides clothes, accessories and other items to customers. Basically, in the
organisation of Marks and Spencer on the top level directors are plays their major role, under this
managers. Managers of the company categorised all activities and operations in two different
team which handled by team leader, under them includes supervisors or lower level works (The
structure of an organisation, 2017). All these activities are significantly performed by employees
of the organisation because there are all major activities re systematically arranged in the
effective manner, as well as it helps to achieve goals and objectives in minimum time.
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Illustration 2: Organisation framework of Marks and Spencer
(Source- The structure of an organisation, 2017)
TASK 3
Positive and negative impacts of macro environment of NATWEST bank
It is very important to very organisation, to properly analyse and identify the major
internal and external factors. It directly impacts on working environment and system of an
particular company (Hamilton and Webster, 2015). Furthermore, for analysing and identifying
all major factors in the effective manner, PESTEL technique can be used. It includes some
causes such as political, economical, social, technical, environmental and legal. All these factors
are unstable in nature because all these are depends upon external environment or market
situation. In the context of NATWEST, it is retail and commercial bank of UK, which providing
better financial services and facilities to consumers as per their demand (Boons and Lüdeke-
Freund, 2013). This organisation is effected by different factors such as:
 Political: In the context of political factor includes, rules, regulation, political situation,
government of the country and so more. Sometimes, all these causes are directly impacts
on organisation as well as their working system. Due to, it is very important for every
organisation, must systematically identify and analyse them in the appropriate manner.
 Economical: It refers to, economy of the nation, income level, exchange rate taxation
system, inflation rate, currency fluctuation and so more. All these terms are unstable in
nature, because it depends on purchasing power of customers, share market, export and
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important level of products and goods. All these things are directly impacts on
organisation and their working system. In the context of NATWEST, this is an retail and
commercial bank of UK, it is directly related to the bank and economy of the nation
(Gecevska and et. al., 2010).
 Social: It involves, society rules and regulation, ethics, norms, life style, occupation,
education, income level and so more. All these factors are impacting on working style
and performance of the enterprise. Apart from this, it is very essential for NATWEST
must be identify and analyse social factors and society culture. Then, should be provide
effective insurance and loan services and facilities to customers.
 Technological: In this current scenario, regularly increasing technologies, due to most of
the organisation concentrate on to adopt new and innovative techniques in the
organisation for completing operations in the effective manner. Selected organisation
must be modify and update their existing machinery and techniques with the help of
smart ideas and methods. It smart techniques assist to count cash, manage operations,
effectively store data and records in the appropriate manner (Sekaran and Bougie, 2016).
 Legal: It includes, legislations, laws, rules and regulations, all these terms are directly
impacts on organisation as well as if enterprises are does not follow legal rules and
regulations in their working environment. So government of the nation can take legal
action towards them. Legal rules and regulations are assist to manage and control illegal
activities as well as helps to reduce them in the appropriate manner.
 Environmental: Environmental factors are also unstable in the nature, due to all working
system and style is totally based on surrounding (Zott, Amit and Massa, 2011). Apart
from this, for every business firm must be effectively analyse and evaluate them in the
appropriate manner. Because all environmental terms are affecting on working system as
well as production level of the company. Due to, before producing products and goods
for customers, must be identify and evaluate environmental factors with the help of smart
techniques and methods.
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