Analysis of Aviva's Business Environment: Report on Tasks 1 & 2

This report provides a comprehensive analysis of Aviva's business environment. It begins with an introduction to the business environment, explaining its key components and stakeholders. The report then delves into the legal structures of different organizations, differentiating between public, private, and voluntary sectors, and provides examples like the Crown Prosecution Service, Aviva, and the British Heart Foundation. The analysis further explores the size, scope, and organizational structures of these entities. Task 2 examines the relationship between different organizational functions, highlighting the importance of finance and operations departments. The report utilizes PESTLE and SWOT analyses to evaluate the external and internal environments affecting Aviva, a British international insurance company. Overall, the report offers valuable insights into the factors influencing Aviva's operations and strategic decision-making, supported by relevant examples and analysis.

Business and Business
Environment

INTRODUCTION
Business environment refers to the collection of different initial and outside elements of a
business which affect the business concern operations of an organisation. These type of
components are most crucial for the administration and at same time duration frame very
essential also as they are effecting organisation's inner management and overall operations. Some
of these components existing in external environs are political, societal, economic,
environmental, consumers, competitors and others (Alves and Ritchie, 2019). All the
stakeholders that are connected to administration directly and indirectly or play and essential
function in making different judgements for ongoing and effective operations of the
administration. This written document provides effective information about the lawful structure
of different organisation's divisions, extrinsic marketplace analysis with the help of Pestle
analysis and SWOT analysis is conducted for intrinsic analysis. Apart from it, some important
subjects like size, scope, structure based on the analysis of outside atmosphere of Aviva, such
factors affect a company both in positive and negative manner. The present report is supported to
Aviva which is a British international insurance company. This company was founded in 2000
and headquartered in ST. Helen's London. This firm has 33 million target audiences and operate
its business across 16 nations all over the world.
TASK 1
P1. Different types and purposes of organisation
This task will be explain about the different kinds of organisations with their motives,
range, lawful structure and others. There are basically three kinds of companies which are public,
private and voluntary company. Each company is set up and established with some set purposes
and to achieve the vision. These type of vision in reality establishes by considering all the
guidelines for several plan of actions and policies which the organisation will appropriated in its
due to actions. These components assist in generating a goodwill and brand name creation in the
marketplace. It helps in betterment of the economy of the organisation and nation also.
Public sector- It is a kind of administration that affiliated to those kind of firms which are
closely-held and operated by the lawful authorization on the place of unspecific public. These
kind of organisations also financed by the national authorities so that they can operate their
bushiness actions and operations (Bangalore and et., al., 2019). Public organisations are not
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devise focus on gaining profit margins, they are work for offering several services to the
individuals and satisfying their needs. There are diverse types of complexities which aresuffered
by the individual and for resolving them a business concern decision making is found out and
then a company is established. The Crown Prosecution Service is a Principle Public authority
which is work for organising criminal prosecution in England and Wales. This company was
settled in 1986 and headquartered in Petty France, London (Chepkwei, 2019). The organisation
operate its business concern actions with the assistance of 6000 people. The major goal of this
enterprise is to provide legal proposal to the polices and other inquiry offices at the duration of
investigation. The actions and operation which are performed by the respective are controlled
and governed by the government of the country. For instant, British Army, AWE, BBC etc. are
examples of national companies.
Purpose- The main motive of the public firms are to give their job options to local public
by using their origins efficiently. The company execute its responsibility for offering
condemnable aggregation and offer lawful advice to the enquiry departments during wrong
inquiry.
Legal structure- Crown Prosecution Service is a cardinal authorities respectively public
sector organisation.
Private Sector- In this industry, different organisations have been included which are
established and monitored buy the private individual. These are the organisations which related
to nation's economic system and assist in maturation and improvement of business enterprise
sector. They are are dominated and administrated by the private persons and the legal authorities
of the country which has no function to be executed in the management and standard of the
company. Aviva is a private organisation which is monitored with public limited organisation
framework of private sector. Aviva Motor Company is a British transnational Insurance
company and head quartered in St Hele's London. This firm is offering its services about 33
million consumers approx 16 nations all over the world. For example, General motors, Tesla
motors, Barclays, Daimler etc. are private sector organisation.
Purpose- The main motive of private industry organisations are to gain profits by
operating is business activities and actions or furnish the fulfilment to the needs and demands of
its potential clients by manufacturing products and services according to their requirements. As it
will lead them to escalate effectuality and skilfulness (Evans, Fox and Taylor, 2019). There are
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number of firms which provides latest and effective product and services to their potential
clients.
Legal structure- Aviva Plc considers within the limited organisation which is regulated
and governed by Company ACT.
Voluntary company- this kind of company includes bunch of people who volitionally come into
an statement to develop an organisation with the purpose of attain objective. There are few
companies which do not have the purpose of gain profitability but they impoverishment to fulfil
other aims and verifiable which are beneficial for surviving of the people in the community.
British Heart Foundation is one of that kind of firm which is consisted in performing societal
work and not to have the motive of earn profit. The organisation is a charity firm which invest
finance to beat issues and problem from heart and circulative diseases and their hazard
component (Filipovič Hrast and et., al., 2019). The company was established in 1961 and
headquartered in Birmingham, England. The organisation operate its business with estimated
3,000 employees and the annual revenue of the company is approx $10M. The firm work for the
advantageous of offer them efficacious health service so that they can bushed heartbreak and
circulative issues and problems and their hazard elements. They also work for developing the
living style of the local community by generating employment option for them. Save the
children, Oxfam, Wellcome Trust, Cancer research are some example of non governmental and
voluntary firms.
Purpose- The main motive of these kind of companies are to work for the development and
betterment of the social welfare. These are those type of company which are work to create
improvement in surviving standard of the people.
Legal structure
Trust- it is not a lawful firm which implementation they can not run into any hold and
written report it their own name.
Unincorporated association- There is no boundations of monetary value indebtedness as
they come in the argument on the place of foundation and are personally hypersensitive. British
Heart Foundations includes under Trust.
According to above mentioned info, it is clear that there are different types of
organisations like public, private and Voluntary and they have their own legitimate structure
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(Jones, 2019). As the companies have diverse legal framework so they have differentiation in
their impersonal as well.
Micro enterprise- It indicates to those kind of organisations which are operate and run by less
than 5 employee and required fund of $250,000 per year fro running the business activities and
operations. Cobbler, Saloon and others are some examples of these types of business ventures.
Small enterprise- These category of business concern organization are primarily owned
organization, partnership, public limited that have minimum employees less than 10 and low
amount of fund (Kaufmann, Carolus and Starzmann, 2019). Prime people, introduce UK,
BrightStar are these kind of organisations.
Medium company- it refer to those firms which are needed support of 250 individuals for
operating the business of the firms and accomplishing the desired aims and objective. These type
of business firms are operated and defined within the company Act 2006 like a business
organisation.
Global organisation- It refers ton a business which is operated across the world and within
number of countries with the purpose of attaining its goals and objectives and earning
profitability. For operational the business concern action and trading operations, the firm
required number of employees and large amount of fund so that business actions can be
performed by it in effective manner. H&M, ZAR, Google, Microsoft are how much fund
required medium sized company in UKxample of global enterprises.
P2. Explanation of the size scope of a ranges of different types of companies
There are three important accumulation in which companies are categorised that is
public, private and voluntary. There are different differences also on which companies are
imposed and supported on the company's productivity and their turnover ratio.
Crown Prosecution Service
Vision and mission- The respective has a vision of pursuing individual who have been
supercharged with a deplorable office in England and Wales.
Size and scope- the company controlled and managed its business concern actions and
operations with the assistance of estimated 6000 workers and work for offering legitimate
proposal to the polices and other investigation agencies during criminal enquiry (Pesch and
Bartoschek, 2019). The organisation has wide scope of improvement as they are performing a
sphere to offer safety and security to the public form condemnable and illegal actions.
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Organisation structure- the respective firm adopt divisional framework which involve
different department like CPS proceeds of Crime Unit, Specialist fraud section, Special Crime
and Counter terrorism Division and others.
Aviva
Vision and mission- the vision of the company is to earn the consumers' believe as the
best place to prevent for the forthcoming time, unfavourable retirement and assure which matters
most to them (Porter, 2019). The aim of the company is to grow long term savings business
concern sharply and profitableness and build a world class finance administration business.
Size and scope- There are 30,021 individuals are make their contribution in operating the
business concern actions and operations of Aviva. The organisation run its business 16 nations
across the world by offering several insurance and investment products. The company has wide
scope because operate its business in investment sector in term of insurance and people have the
nature of saving and investing for security of their life.
Organisation structure- The respective organisation followed Divisional organisational
construction which help in regulating the business of the company across the world. This
structure is supported various business concern needs in varying merchandising conditions
across the world.
British Heart Foundation
Vision & Mission-The Vision statement of the organisation is to beat heart and circulatory
diseases and their hazard components. So that they can assist the individual to get over these
kind of heath issues.
Size and scope-The business has wide scope because the management of the company
work for the welfare of the society. For operating these welfare actions and activities the
organisation has 3000 employees.
Organisation structure- they have a group meeting of individuals which have trustees
who frame actions, utilities and dealings of the administration (Shavers and Mitchell, 2019).
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Illustration 1: British Heart Foundation
Scope: British Heart Foundation. (2019).
TASK 2
P3. The relationship between different organisational functions
Organisational framework can be explained as the extents of administration within a
company and also defines the allotment of several functions and duties to the workers in context
of accomplishing set objective and goals. Several companies can have diverse organisational
framework like functional, divisional, hierarchical, mater ix etc. A corporate framework is
created for effective running of all the operation and activities of the company (Shindryaeva and
et., al., 2019). It is not only assist in the development of the company as well as accomplish the
goals that it has establish to attain. Each and every company has diverse divisions that work
primly regarding their own objectives and as a whole regarding accomplishing the organisation's
establish objectives and aims. The relations among these several functions and the manner in
which they are related with the framework of the company and impersonals is defined under:
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Finance and Operation department- Finance function is the major department which is play a
crucial role in running and operating the business of the company. This division has the duty of
managing and dominating the flow of the fund which is invested by the firm in its different
business operation s and activities. This function is also assist other division when they have
remitment of finance (Westrick, 2019)(Zerva, K.Zia Elbouchikhi, Benbouzid and Guerrero,
2019). In Aviva, this function delivers the raw accounting entries into usable fiscal statements
that assist the company to get information its monitory value situation an devise determination
accordant to it. Previous records are also determined and utilised to make budget and to
prediction for the long and short term time frame.
Operation function on the other hand basically develops and administrates the
manufacturing of the goods and services of the company. The major purpose of this division in
Aviva to produce effective investment and insurance products as per the requirements and wants
of their customers. Both of the functions work in effective manner with each other as the finance
function offer required monetary value for buying and purchasing machinery and equipments so
that the business concern actions and trading operations can be run in effective manner. This
function acts as a backbone of the operation division in any firm. Both the organisation functions
work regarding utilising the company's origins efficiently and efficaciously.
Marketing & Human resource department- Each and every company has a marketing team
whose single motive is to run the different business activities of marketing related to business
like promoting products and services of the company by advertising, promotional campaigns,
barding and others. This function is answerable for examining the current trends of the
marketplace and implementing them to alter the manner in which the firm can interact with its
potential clients. In Aviva, this marketing department of the company administrates the social
media platforms and organisation page with its latest products and offers. The division
acknowledge the desires and needs of the target marketplace and adopts the ways and tools of
publicity which are effective and essential to attract customers.
Human resource management of the company is accountable for choosingng and
recruiting skilled and well qualified workers to the company for filling the vacant positions of it
(Alves and Ritchie, 2019). In Aviva, when there are any positions are vacant then human
resource manager conduct recruitment process and use different methods of it to select and
choose skilled and knowledgeable candidates who make their endeavour in running the business
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concern operation and activities of the company. In Aviva, this department also help other
department by hiring employees for filling their vacancy posts. It also conduct training and
development session for the employees so that they can make improvement in their skills and
knowledge or gain information about the use of new technology etc. Both HR and Marketing
function of Aviva are interrelated to each other as the latter encourages the former to publish any
vacant posts in the firm by social media, TV, Newspaper and others (Bangalore and et., al.,
2019). The marketing function does thus by carefully monitoring the requires and desires of the
target audiences.
TASK 3
P4. The positive and negative impacts the macro environment has upon business operations
Macro environment mention to those components and components which create effect
upon the business concern functions, actions, action and trading operations of the company in
both manners favourably as well as unfavourably. In Aviva, the management of the company can
use PESTEL analysis to admonisher the affirmative and destructive impacts of macro environs
component. This analysis is a tool which can be used by the company to monitor different macro
environmental component that create their effect upon the business concern of the firm.
Political- This factor of political analysis consist several components like trade policy, taxation
policy, government policy, foreign exchange law, trade restrictions, labour law and others. These
all elements create positive and negative impact upon the business and its activities of
operations.
Positive- A low minimum wage is the factor which mean high profit margins so it
provide maximum chances to Aviva to survive in global market till long term.
Negative- The trade obstructions that the host nation has would defend Aviva Plc,
however, trade obstructors that nations with possible trade partners would harm the firm by
preventing potential exports. High level of tax is another factor which demotivate the respective
firm from increasing probability.
Economical-It another factor which consist different elements like inflation, deflation, interest
rate, exchange rate, tax rate, currency rate, economic growth, disposal income of target audiences
and others (Chepkwei, 2019)(Evans, Fox and Taylor, 2019). These all components affect
economic condition of Aviva in different manners.
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Positive-Maximised extent of unemployment in the nation, positively affect the company
in term of supplying high level of job and it means people are willing for a lower wage. This help
in minimising the operation cost of Aviva.
Negative- High exchange rate of Aviva negatively affect the company in term of its
profitableness, especially if it prosecutes in international trade. The stableness of the currency is
also essential an unstable currency discourage global investors.
Social- It involve several elements such as culture, population growth, beliefs, values, needs,
taste, preferences and others (Filipovič Hrast and et., al., 2019). If there are any type of
modification are created by the administration of the organisation in its trade goods and services
then it directly and in directly affect the business of the firm.
Positive- The administration of the organisation manufacture investment and insurance
product as per the wants and needs of the consumers which are beneficial for their target
audiences to provide them an effective return.
Negative- Aviva is not able to encourage a premium good to the general public if the
majority of the people is lower or middle class rather they have to rely on very niche
merchandising.
Technological-It is an essential factor which highly impact the business concern of the
organisation, this component consist different factors due to which positive and negative affect
generate in the business activities. These elements are new ways of allocating and offering
products and services to the target audiences, new ways of producing commodities and service,
new tools of communicating with target markets.
Positive- The management of the organisation usage latest technologies and make
technical innovation in the business of the firm which positively impact the business of it in term
of gaining more profitability.
Negative- The management of the organisation use less or lower level tools of promotion
so it is not properly and effective create awareness about its new or existing products and
services.
Environmental- This component of PESTEL analysis include raw material, pollution act,
environmental law, carbon emissions and others (Jones, 2019). If the organisations will not run
their business activities and operations in effective manner then they influence business actions
and activities favourably or unfavourably.
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Positive- The also make make contrition to work for improvement or betterment of
environment. So it invest a small part of its profit in environmental saving activities like
reduction of wastage, planting etc.
Negative-Those firms that manufacture highly ample amounts of wastage may be needed
to negociate their environs habits (Kaufmann, Carolus and Starzmann, 2019). This consider
pollution fines which may place a fiscal deformation on Aviva.
Legal- This component of this respective analysis refers to those lawful and legitimate which are
developed by the national authorises of the countries fro effective running of the business of the
firm in legal or lawful manner.
Positive- The management of the company properly follow all employment law like
equality act, diversity act, discrimination act etc. and pay equally to all those employees who are
working on same positions. It provide equal right to its all employees to minimise the risk of
discrimination.
Negative- If the organisation will not effectively follow all the rules which are developed
by the government of diverse countries like health and safety act, anti discrimination act and
others then it unfavourably influence the oprganisation.
TASK 4
P5. Internal and external analysis of particular companies
SWOT analysis of AVIVA
Strengths Weaknesses
 Aviva Life insurance has a great and
different goods portfolio and several
life insurance and advantageous
schemes for diverse parts and targets
(Pesch and Bartoschek, 2019).
 The company has a strong and effective
marketing strategy and has the effective
marketing campaign.
 The management of the receive large
amount of customers complaints
throughout the year in context of
performance of its policies.
 Controversial promotion like an
advertisement of “After-Death” create
negative impact on the business of the
company.
Opportunities Threats
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 By creating awareness between people
about securing their forthcoming them.
 To grow rural market and getting
attention of Urban youths (Porter,
2019).
 The major risk which is face by the
respective company due to entry of new
NBFCs in the related industry.
 Economic crisis also generate threat for
the business of the company which are
generated due to Brexit and other
reasons.
SWOT analysis of British Heart Foundation
Strengths Weaknesses
 It is the market leader and number one
heart charity foundation in UK.
 The company has large integrated CRM
and large pool of consumer
information.
 Minimisation of detected connection to
the customers and it is hard to the firm
to connect with BHF.
Opportunities Threats
 There a large expectation youth market
which assist in providing a growing
opportunity regarding increment of
income and market shares.
 The government of UK conduct
Chnage4Life campaign which assist in
exposing BHF (Shavers and Mitchell,
2019).
 The major hazard which is faced by the
organisation is to come from the use of
animals for testing and due to which
number of dogs has died. It problem is
generated due to harm of natural
resources.
 Direct marketing is not efficacious
which is used by the company to be for
charities.
P6. Explain how strengths and weaknesses interrelate with external macro factors
Basis Strengths Weaknesses
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Political Aviva is a company which
efficaciously follow all the laws and
legislation which are developed by the
legal authorities of the company
(Shindryaeva and et., al., 2019).
Aviva operating its business globally
so when the government of different
nations modified its plans and policies
then it unfavourably affect the
business of the company.
Economical When the respective company expand
its business at that location where
employment rate is low so it can
maximise it profitability because
people are ready to work at low pay.
Change in exchange rate policy in
term of increment which negatively
affect the business of the company.
Social The management of the firm produce
number of insurance products and
offer them international customers
which help in maximising the
customers.
The management of the company
manufacture investment and
insurgence product as per niche
market so it do not target lower of
middle class customers which
negatively affect the company.
Technological The administration of the firm use new
and latest technologies and machines
in business operations and activities
which positively affect the company in
term of maximising productivity.
The firm use lower extent and less
promotional technologies which
unfavourably affect the business of the
firm.
Environmental The firm provide effective, healthy
and secure working environment to its
employees where they execute their
work appropriately (Westrick, 2019).
The firm which raise fund and devise
insurance regarding their business or if
they are not make control on the
wastage and the activities which harm
the environment then it negatively
affect the receptive firm in term of
fine.
Legal The management of the company
properly follow all the employment
In the situation of changes in the
amendment and legislation of the
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which help in effective running of the
business concern.
regions and nations, then it negatively
influence Aviva (Zerva, K.Zia
Elbouchikhi, Benbouzid and Guerrero,
2019).
CONCLUSION
As per above mentioned info, it can be analysed that Business is an activity of trading the
goods and services of the company in business concern environs. There are different kind of
business enterprises and the differentiation are generated among them due to their size, extent,
framework legal artifact and others. These all kind of companies are ruin their business with the
contribution of different business functions and they all are effectively interrelated with each
other. The monitor the internal and outside business concern environment, the administration of
the organisation use PESTEL and SWOT analysis. To monitor the capability and weakness of
macro components, the interrelation of both internal and external environs assist it and determine
that how they influence decision making.
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