Business Environment Analysis: JP Morgan, NHS, and Oxfam Report

This report provides a comprehensive analysis of the business environment, encompassing various organizational types, their purposes, and legal structures. It explores the size and scope of organizations like JP Morgan, NHS, and Oxfam, highlighting their distinct characteristics and operatio...Read More

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1: Various types and purpose of organisation along with their legal structure.........................1
P2: Size and scope of various organisation.................................................................................3
TASK 2............................................................................................................................................5
P3: Interrelation among various organisational department........................................................5
TASK 3............................................................................................................................................7
P4: PESTLE analysis with positive and negative impacts..........................................................7
TASK 4............................................................................................................................................9
P5: SWOT analysis of JP Morgan...............................................................................................9
P6: Interrelation of strength and weakness with external factors..............................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is the combination of internal and external factors that can impact the
company’s operation condition. It can consist of various aspects such as clients and suppliers,
competitors and owners of an organisation. It means a collection of various individual entities
and other aspects that cannot be under the control of an organisation, but can affect their
performance, profitability and sometime survival also. Most of the business organisation
operates in a distinctive nature, as it cannot be present in inaccessibility. Management of an
organisation is having the right to reduce from the negative implication of internal factors as they
are adequate control over them. Whereas external environment would have direct or indirect
impacts on the operation of JP Morgan clients. It is one of the leading investment companies
working in UK with 4400 offices worldwide (Shenkar, Luo and Chi, 2014).
This project report aimed at provided necessary information about various types of
organisation with their size, scope and purpose are discussed clearly. Apart from this, analysis of
the internal and external factors with the use of PESTLE and SWOT is been covered under this
report.
TASK 1
P1: Various types and purpose of organisation along with their legal structure
An organisation is said to be group of people with the aimed of effective management of all the
resources that are used by the company for the production of various products and services. It is
a social unit of people that is framed and managed in order to meet the specific requirements of
the attaining all the essential goals that are set by the company during the period of time. It has
been seen that every organisation is having a well organise management structure that is examine
overall relationship among the different activities that are assign to the employees working
within an organisation (Andersson, Forsgren and Holm, 2015). There are various crucial purpose
and legal structure of this organisation which are mentioned below:
Private company: It is said to be that company which is owned either by government or
through relatively small number of shareholders. A company whose total number of shares is not
been offered to the public for sales is been operated under the legal needs. The organisations
which are falls into these categories are liable to issues stock and have shareholders but cannot
permit to trade on public exchange. Example, JP Morgan is finance and Investment Company
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that has been providing an intensive range of financial services associated with banking,
investment banking and other financial services. The company was considered as sixth largest
bank in the nation with total assets amounted to be $2.534 trillion.
Purpose:
The main aim of these types of business organisation is to earning maximum amount of
profit and makes plan to survive for longer period of time in the market. Business can only gain
through using a larger market share by increasing the overall sales of their products against the
competitors.
Legal structure of private company
Partnership: A partnership is said to be a formal arrangement under which two or more
parties used to cooperate in order to manage and regulate their business effectively. If there is no
any contract with the other person in relation to profit and loss, then if would be circulated
equally among the partners.
Sole proprietorship: This is said to be that business in which only one person used to
operate business. The entire share and profit is being shares by the owner of the company. The
liabilities of the business are handled by single body and have entire control over the operations
of the business (Charter, 2017).
Limited companies: This particular company is being further categories into various
form of incorporation which limits the total amount of liability that are undertaken by the
company’s shareholders. It means that total debts of members are limited to unpaid amount on
the shares that are held by the company investors.
Public company: It is known as that company who can easily trade their securities on the
stock exchange and would be bought and sold through anyone. These are strictly regulated and
are needed by law to publish their complete and accurate financial position of the company. The
activities that are associated with the transport, learning and healthcare are considered under this
company. NHS is the one of the best example of these types of organisation that primary aim is
to deliver all medical services to the needy people. They used to deliver all essential services all
overall the nation.
Purpose:
The primary objective of this company is to provide a public service instead of generating
maximum profit. It would create employment opportunity for the latest skilled people.
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Legal structure of public limited company:
Central government: They would make sure that overall operations must be followed in
proper so that chances of mistakes can be minimum.
State government: They are working with the motive of enhancing the local job that are
supplies and it is likely that public sectors employers that consist of local bodies and healthcare
services (Crane and Matten, 2016).
Local government: This can ensure that all the legal norms and regulation that are made
by the central as well as state has been followed effectively by this government.
Voluntary organisation: This will consist of various organisations that are established
with the aim of providing all specific kind of activities for the fulfilment of the society. These
types of organisation have not been aimed about providing overall earning for themselves. The
majorly related with increasing overall satisfaction level of the customers. Oxfam is one of the
voluntary sector businesses that used to provide medical services for the reduction of the poverty
from the society.
Purpose:
This is basically aimed to benefit and increase society without the aim of earning profit.
One of the positive think of voluntary sectors is that is aim is to create social growth wealth
instead of material wealth.
P2: Size and scope of various organisation
In most of the business organisation, it has been seen that they used to carry a well
organised operations in which most of the employees and staffs are working for the motive of
increasing overall profitability. The size and scope of various organisation has been varies
according to the operations and nature of business. It can be different for private, public and
voluntary sectors that are discussed in the above report. Basically structure of a small business is
been flat since there are limited numbers of people that are held responsible for many activities
that are performed within an organisation (Bryman and Bell, 2015). In case of private company
is seems to be large with vertical levels as well as management stages that used to show a more
complex structure for an organisation.
JP Morgan Company:
Size: It has been seen that this particular company is related with investment and other
financial services business. It is having total size of a bank, they would basically referring to
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their balance sheet and more commonly to combined value of assets which tends to include loan
and other government securities. It has about $2.5 trillion net worth of assets during the period of
time.
Scope: The main scope of JP Morgan is to become one of the largest investment providers
as compare to other financial institution. In the current period of time, they are offering more
valuable services to their client with sufficient amount of banking services to protect their
securities and investments.
NHS:
Size: In accordance with the total size of this organisation, it can be seen that basic point of
the employees those are working within an organisation and services which they used to serve in
various countries. During the period of time, 1.5 million employees are operating and have
delivered better assistance in delivering their services in more than one nation. This organisation
has come into existence in the year 1948. The primary motive for which this firm is working is to
deliver more reliable services to the needy people of free of cost. It will assist them in attaining
various results and satisfy the necessary needs and demand of the society that are deprived from
essential amenities.
Scope: It has been analysed that the basic scope of this organisation is to serve as much
society from their valuable services so that chances of getting maximum support can be more in
coming period of time. There are various essential facilities which are been provided by the NHS
organisation is associated with Medical facilities, optical care and other dental equipments. The
policy that is applied to all recorded data has been held through the trust by someone else in
accordance of the trust. It was born with the long held ideal that is good healthcare available to
all staffs that are working within an organisation. The NHS used to provide proper healthcare
services to all UK citizens that are based on requirement for healthcare instead of their ability to
pay for it. It is capitalised by proper taxes that are charged by the government.
Oxfam:
Size: As this company is working international confederation of about 19 organisation
operating together with sub partners and domestic communities in more than 90 nations. This
particular organisation is established in 1920. They are providing their all vital services in all
over the nation that would be helpful for wide number of people that are associated with this
particular organisation.
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Scope: The primary motive of this activity of an organisation is to reduce poverty from
the community. In accordance with that there is no any other functions in which this organisation
is associated with advocacy; disaster related aspects as well as policy of research. They are
working with the motive of changing the nation through mobilizing the power of people in
respect to the poverty. Oxfam works to determine practical, innovative manner for people to
examine themselves out of the poverty. They also used to rebuild all kind of livelihoods in case
of any crisis strikes.
TASK 2
P3: Interrelation among various organisational department
As JP Morgan is one of the private organisations that have created positive scope for other
company that are operating in the same field. JP Morgan chases as one of the largest bank in the
most of the countries and is currently working as sixth largest bank in the nation in terms of total
assets with the total amount of 2.5 trillion. According to the market capitalization, this seems to
be one of the best banks as compare to other financial institutions. Fiduciary activity is related
with the private banking that can help them to perform their role in more effective manner. There
are various specific structure that has been followed by this company which will assist them in
organising all their essential activities in order to attain overall aims and objectives in coming
period of time (Smith, 2016). Some of the specific structure which are being followed under the
JP Morgan is been mentioned below:
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(Source: Organisational structure, 2018)
Human resources with Marketing: The primary functions of HR department within JP
Morgan are related with overall recruitment of employees and workforce planning which are
basic aspects of an organisation. They can ensure that well skilled employees should be hired in
an organisation so that chances of growth can be attaining in coming period of time. It is
effectively working with the aim of serving their overall services towards their department. The
interrelation of various department with marketing is been examine from the point of view in
providence of candidates which have been adequate amount of ability regarding the use of
marketing method and theories so that it can be applied in practical life.
Finance with operation department: Finance department is one of the primary sectors which
will help an organisation to plan their business resources more effectively in coming period of
time. The primary function of finance department is all about evaluating the requirement of
capital from various departments and formulating of reliable budgets. The interrelation of this
particular department with the operation is been determine from the point that can assist in
providence of candidates that is having reliable amount of knowledge regarding the
manufacturing ability and skills. This will assist in attainment of various objectives of
profitability and fulfilment of essential customer requirement from the company (Wetherly,
2014).
Research and development department with marketing: It is known as innovative
activity that has been undertaken by JP Morgan or other developing organisation while launching
new services in the market. It is basically directed towards the innovation and modification of
products and processes during the period of time. The primary function of R&D department is to
examine the market and determine the current trend that can persist between customers. As this
department of JP Morgan has been providing their overall functioning related with the evaluation
of ability of competitors and current demand of people that are further utilised by the marketing
department. It would bring certain changes in their overall promotion and targeting planning to
boost the position of an organisation in the current market.
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TASK 3
P4: PESTLE analysis with positive and negative impacts
Pestle analysis is all about external elements which plays a crucial role in determining
operating challenges which is faced by JP Morgan other than competitive forces. For instance; an
industry is highly profitable due to strong development but nor good for selected firm if there is
an unstable environment. Therefore, assessment of macro environment and its positive and
negative impact is going to discussed as follows-
Political Factors- Morgan is liable for providing financial services to their organization due
to which they need to analyse current political status of a nation before establishing their new
business. Somehow, this will influence an organization in positive as well as negative manner
both which is discussed as follows-
 Positive- In order to operate successfully, all the rules and instruction needs to be
followed by company for attaining for accomplishing their business operations in more
suitable manner. In fact, various taxes, employment policies and banking regulation
control the possibilities of fraudulent activity that might incurred while running business
entity.
 Negative- On the other hand, various norms, rules and regulations which is designed by
governing bodies create sometime problem for an enterprise because it will increase the
process of doing business. As a result, large amount of expense is required for company
for handling various governmental formalities.
Economic- Fluctuation in national economy due to inflation and deflation affect the business
in both manners that is described below-
 Positive- Changes in currency rate and raise in income level of users affects the business
in positively because customers get attracted towards financial services. Along with this,
economic change leads to increase in competition which is beneficial for JP Morgan as
people will demand more and more financial services.
 Negative- Financial crisis, growth in population, urbanization rate and rate of
unemployment affects the Morgan negatively as company needs to invest more efforts
otherwise their profit terminologies might get reduced.
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Social – JP Morgan also needs to concentrate on socio-cultural values of customers for
building long term relationship with distinct users. As this factor also influence an organization
in positive and negative manner-
 Positive- Societal connectivity will help an organization in building long term
relationship as well as brings them closer with each other for gaining competitive
advantage (Hilton and Platt, 2013). Basically, JP Morgan needs to conduct awareness
programmes which will support them in understanding users’ needs and demands.
 Negative- Changes in customer choice, preferences and taste maximize the cost of an
organization because company needs to modified their policies as per situational and
consumer demand.
Technological- Emergence of advanced technology enforce an enterprise to use modern
methods for performing their business operations but there are some pros and cons which is
described below-
 Positive- Usage of advanced technology at JP Morgan is very much beneficial for whole
organization because it helps them in connecting people across the global level. Along
with this, easily get connected with foreign clients also in order to perform their business
operations.
 Negative- Modern methods are not easy to handle due to the availability of large number
of complexity and features which are difficult to understand. In fact, cost of training and
development increase at workplace.
Legal – Fixed interest rates, financial transaction charges and various other trade policies or
provisions are enacted by legitimate bodies which is somehow beneficial but sometime these will
act in negatively also.
 Positive- Legitimate rules help JP Morgan while performing their business operations as
it helps in maximizing business profit with the help of several interest rate.
 Negative- On the other hand, these charges create problem for company because
procedures become more complex and consume maximum time period. In fact, there is a
possibility of mistakes also.
Environmental factor- Ecological aspects of business will discuss in this element and its
affect.
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 Positive- All the resources which are used by company is acquired through surroundings
only such as; manpower, land and buildings, machinery and so on.
 Negative- Sometime changes in environment affect the business performance in
negatively as it may destroy the whole business such as; fluctuation in market minimize
the profit level of an enterprise, maximum price of employees affects the profit margin of
an enterprise henceforth.
TASK 4
P5: SWOT analysis of JP Morgan
For every organisation it is very important to examine its strengths and weaknesses so that
business can be executed effectively. If a company is not aware of its strengths and weaknesses
than it is not possible to formulate effective strategies that may result positively. For good results
it is essential to analyse strengths and weaknesses so that effective decisions and judgements can
be made by the managers. All of them can be analysed with the help of SWOT analysis. For JP
Morgan a SWOT analysis is as follows:
Strengths:
 Strong liquidity and capital: JP Morgan is having high liquidity and capital that helps to
operate business effectively. If the organisation is having sufficient funds than it may
guide throughout the way of success hence all the goals may be achieved by using funds
appropriately. Deposits of the company are continuously increasing and loans are
decreasing which is because of its strong liquidity and capital level.
 Good brand name: JP Morgan has a good market image which has created various
brand loyal customers for the company. The image has been established by providing
excellent services to its customers with the help of extensive networking in retail sector.
 Superb performance in the market: Performance of JP Morgan is very good as it is
executing business activities effectively. Effective performance in the market attracts
many customers toward company that results in increased revenues and profits for the
company. It also helps to grab attention large number of investors who invest in such type
of organisations that performs good in the market.
Weaknesses:
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 Increasing expenses: Expense management system of the company is very week which
has resulted in increased expenses. Different types of expenses like non interest and
operational outlays are continuously increasing that may lead the organisation
downwards in future.
 Instability: Fluctuations in the market have lead the organisation toward instability.
Vulnerability in the market in the market are the main reason for consequences that are
unstable and JP Morgan have to deal with them.
Opportunities:
 Expand geographically: It is very important for JP Morgan to expand its business on
different geographic locations so that all the demerging and important markets can be
covered in order to operate business globally. This may help to enhance profitability and
execute operational activities worldwide. If the organisation is able to expand the
business globally than it may also help to target international customers who are from
different geographical locations.
 Investment across the world: Another opportunity for the organisation to invest across
the world this will help to enhance foreign currency and also guide to enhance monetary
resources.
Threats:
 Regulatory challenges: As the organisation is currently operating business in different
countries hence it has to follow the regulations that are induced by the government. If JP
Morgan is not able to obey those regulations than it may affect its business because the
government may not allow to operate business in their country (Hilton and Platt, 2013).
 Increasing competition: there are various competitors are available in the market that is
willing to acquire the market share of JP Morgan. It is very important for the company
identify the competitors who are there in the market and then formulate effective
strategies as compare to other organisations. If JP Morgan is not able to implement
appropriate policies that it may lose its market share.
All the strengths, weaknesses, opportunities and threats are described above with the help of
SWOT analysis. This may help the managers of the organisation to formulate strategies for
future so that all the organisational goals can be attained and long term sustainability can be
acquired.
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P6: Interrelation of strength and weakness with external factors
It has been seen that there is huge connection among the external factors along with the
strength and weakness of JP Morgan. This would be examining from the given below points that
have outside factors which become positive and negative aspects of an organisation are given
below:
Political factor: This would be associated with the legal laws, taxation policies and other
specific laws those are followed with the country and impacts JP Morgan. In the case of political
situation that is present in UK is seen as more quite and stable. But on the other hand, it is strict
in their rules and regulation that are implied with the employees (Hamilton and Webster, 2015).
Strength: As the with the constant government policies, JP Morgan is having great
chances of attaining maximum growth in terms of investments. It will also help them to make
further plan for growth in near future time.
Weakness: There are certain strict regulations that are effective affect the overall activities
of JP Morgan as they required adhering to them more closely. In case they cannot be able to
obey those in proper manner they gone have to pay serious consequences.
Economical factors: This particular factor is related with the condition of UK economy
which is quite balance and good and has high cash flow in current point of time. But the biggest
issues are related with the high rate of interest which is charged during the time of recession.
Strength: There is maximum flow of cash which become of positive point as this would
aid in order to increase the capital from the market. This will be more suitable for the company
in attaining their aims and objective more effective coming future (Business environment, 2018).
Weakness: The only limitation is related with the rate of interest which is charged during
the time of borrowing capital from the banks. JP Morgan can used to charge high rate of interest
from their client from their total investments. It would create negative implication on the overall
performance of the company as compare to other.
Social factors: The company belief and behaviour of youth for their business. As they are
working in the investment banks so they want to create job opportunity among the society. This
will shapes the career of the candidates toward attaining of their future targets.
Strength: The overall demand of the fresh talent in the market is more. As they can create
maximum growth opportunity for the company in coming period of time. It will be more suitable
for JP Morgan to hire skilled talent for their investment business.
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Weakness: This particular approach of career centric method of wide number of people
has been negatively impacts on the attitude at the time of increase the investment plan.
Technology: It has been seen that today era is working with the use of latest technology
that can shape the business as well as individual towards attainment of group as well their own
goals at the same point of time (Boons and Lüdeke-Freund, 2013).
Strength: With the use of latest technology, JP Morgan can strength the investment and
increase the chances of growth and financial stability in the market for very longer period of
time.
Weakness: It has been seen that changes in processes and training level of employees has
become negative point on huge amount of expenditure as they have to deal with inappropriate
use of network.
CONCLUSION
From the above project report, it has been concluded that business environment is
primary aspects for an organisation. It will help them to analyse the internal and external factors
those are affecting their business. Further, this project has related with various types of
organisation size, scope and structure. It can be examine by the help of using PESTLE and
SWOT analysis with its positive and negative impacts on the given organisation. This analysis is
been helpful for the company in attaining their aims and objective in coming period of time.
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data to big impact. MIS quarterly, pp.1165-1188.
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Press, USA.
Hilton, R. W. and Platt, D. E., 2013. Managerial accounting: creating value in a dynamic
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globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
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Shenkar, O., Luo, Y. and Chi, T., 2014. International business. Routledge.
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External Business Environment. In Global Perspectives on Contemporary Marketing
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Wetherly, P., 2014. The business environment: themes and issues in a globalizing world. Oxford
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Online
Business environment. 2018.[Online]. Available through:
<http://www.economicsdiscussion.net/business-environment/business-environment-
types-external-micro-and-external-macro/10095>
Organisational structure. 2018. [Online]. Available through: <
https://www.researchgate.net/figure/Formal-organizational-structure_fig1_223944417>.
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