Report on Business and the Business Environment: JP Morgan

This report provides a comprehensive analysis of the business environment, focusing on JP Morgan as a case study. It begins by defining different types and purposes of organizations, including public, private, and voluntary sectors, and their legal structures. The report then examines the scope and size of various organizations, using the Bank of England, JP Morgan, and Oxfam as examples. It delves into the relationship between organizational functions such as human resources, finance, operations, marketing, and R&D, and their link to organizational objectives and structure. Furthermore, the report identifies the positive and negative impacts of the macro environment on operations, utilizing PESTEL and SWOT analyses to assess internal and external factors affecting JP Morgan. The analysis interrelates external macro factors with the company's strengths and weaknesses, concluding with an overview of the key findings and recommendations for the company's future strategies. The report aims to provide a clear understanding of how businesses operate within their environments and how they can adapt to changes to succeed.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Different types and purposes of organisations..................................................................1
P2 Different types and scope of organisations.......................................................................4
TASK 2............................................................................................................................................5
P3 Relationship between organisational functions and link with objectives and structure....5
TASK 3............................................................................................................................................8
P4 Identify positive and negative impacts of macro environment upon operations...............8
TASK 4..........................................................................................................................................10
P5 Internal and external analysis of JP Morgan...................................................................10
P6 Interrelate external macro factors with strengths and weaknesses..................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business environment comprises internal and external elements which directly or
indirectly affect organisation and its activities. It is necessary that management implement
adequate equipments and tools in system to conduct operations effectively, thereby deliver
appropriate products and services in market to fulfil demands and requirements of people
(Gebauer, Paiola and Edvardsson, 2011). Present report is based on JP Morgan which is leading
firm and has headquarter in UK. It is a multinational firm which provide financial and banking
services to public. This assignment defines different types and purpose of organisation which are
present in market. Management require to adopt appropriate structure and formulate department
such as human resource, operation, finance and other functions to execute business operations in
efficient manner. Positive and negative impacts of macro environment are acknowledged by
management to design system accordingly. PESTEL and SWOT analysis are various techniques
which help administration of JP Morgan to have knowledge about market conditions and system
capabilities. Thus, internal and external analysis is conducted by management to interrelate
strengths and weaknesses by external macro factors.
P1 Different types and purposes of organisations
Market have different forms of organisation which are present to deliver products and
services and generate adequate profit from business. With fast development, companies have
large opportunities to execute innovative and creative business ideas to enhance goodwill of
firm. Public, private and voluntary are various types of firms which enhances employment
opportunities and help government in development of society. These are different types of
organisation which are described beneath:
Public organisation: This sector comprises companies which are established, regulated
and controlled by government to improve and strengthen state of economic conditions of
country. These are enterprise which help authorities to increase job chances, so that people can
generate adequate income for their livelihood (Holliman and Rowley, 2014). Bank of England is
public firm of UK which provide financial services to other institutions and public. It is main
authority which issue currency and formulate rules to govern the operations of other bank.
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Purpose: Bank of England goal is to provide money to other banks and have gold reserve
as custody to sustain and maintain economic state of UK. It is lender of last resort for other
banks which frame monetary policies to regulate country.
Legal structure:
Local government: This segment constitutes authorities which are given responsibility to
manage public administration of town, city and district. For this, their responsibility is to control
specific region or area by conducting duties that is frame strategies and enforce law (Homburg,
Wilczek and Hahn, 2014).
State government: It is government unit which formulate and enforces law for state. This
unit responsibility is to control trade and regulations to coordinate and control working of state.
Central government: This is political authority which manages and govern whole nation.
For this, rules and laws are formulated by them which local and state government require to
follow to execute work for betterment of country.
Benefits: Public organisation provide education, health care, electricity, transportation
services such as road, rail and other facilities to public. This help government to conduct
business for betterment of society.
Disadvantage: Government require to have skilled staff to provide appropriate services
to people. For this, tax is only source of income for authorities which determine quality of
services that are provided and operations conducted by them (Khan and Quaddus, 2015).
Private organisation: This is another industry which includes firms which are
incorporated, managed by single person or group which spend money to set up business and
generate revenue. Primary, secondary and tertiary are various forms in which private firms are
divided in according to their business activities and objectives. It is necessary that products and
services are delivered in market to satisfy demands and requirements of people. Agriculture
business is part of primary sector which is provide raw material to other companies and public.
Apart this, secondary industry includes firm which are manufactures that produces items to
satisfy demands and needs of people. Lastly, third type is tertiary which comprises warehousing,
transport, banking, advertising and other enterprise which provide services. For example, JP
Morgan is private bank which provide financial and banking services to people. Bank provides
variety of facilities such as brokerage, wealth management, investment banking, asset
management, treasury and securities services to public (Lee and et. al., 2015).
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Purpose: JP Morgan aim is to provide quality and adequate variety of financial services
internationally to become leading bank.
Legal structure:
Sole proprietorship: It is form of enterprise which is started, controlled and managed by
individual to utilise their funds and gain profit from business. Entrepreneur is sole decision-
making authority which is liable for losses and revenue whichever occurs.
Benefits: This tactic includes firm which is owned and managed by single person that
help them to make decisions fastly and choose things which are beneficial for company.
Disadvantage: Entrepreneur have shortage of money which impact on amount of
resources and business activities. Person require to have complete knowledge of market
conditions to conduct operations accordingly. Along this, they even need to asses all financial
sources and communicate with them solely and convince them to invest funds in their business
(O'Boyle, 2014).
Partnership: This is another structure which comprises company which are managed and
controlled by two or more individuals. Businessperson bind themselves in formal deed and sign
agreement which define all terms and conditions that require to be followed in firm. This is one
of most best form of tactic, as it help firm to have good amount of capital to conduct business
operations effectively.
Benefits: Firms which are started in partnership benefits people to have sufficient
resources that is funds, material and manpower to conduct business activities effectively. Along
this, businessperson have chance to enlarge business and open branches in different countries to
have large market reach and customer base to enhance sales volume and revenue.
Disadvantage: Partnership even have demerit which are conflicts between shareholders,
as they have different experience and thoughts which impact on their decision-making activities.
Along this, there is time lag in judgement making which is due to procedure that are
communicating partners about meeting and conference (Chen and et. al., 2014).
Limited company: This is another structure which define that investors have limited
liability which either depend on regulations of authorities or amount of money spend by them in
firm. Thus, limited by liability or share are two forms which depend on company and its top
personnel selection.
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Benefits: Enterprise which use this structure benefits shareholders to have limited
functioning in firm, thereby secure and protect themselves from risks.
Disadvantage: Administration of limited company faces problem about increasing funds
which is due to share of owner rights with investors.
Voluntary sector: This sector comprises enterprise which execute business for welfare
and development of society. It is necessary appropriate products and services are delivered in
market to satisfy needs and wants of people. OXFAM is charitable and an independent firm
which execute activities to lower down poverty and improve conditions of country (Crane and
Matten, 2016).
Purpose: Oxfam goal is to enhance employment opportunities and provide chance to
individuals to gain money for sustaining and maintain their living standards. Besides this, firm
also increases solutions which help nation to become free from poverty.
Legal structure:
Trust: It is traditional form of structure which is used by voluntary organisation to
provide appropriate products and services for improving society. These are firms which get
support from government that is property to conduct activities and provide facilities to needy
people.
P2 Different types and scope of organisations
Public, private and voluntary are different types of firms which have variance size and
scope that are related with products and services provided to satisfy demands of people. Public
organisation conduct operations to develop and enhance economy of nation, while private
enterprise are incorporated by individuals to generate profit. In this, voluntary companies provide
items for needy people. Thus, market have different types of organisation which have variance
size and scope which is described below (De Massis and Kotlar, 2014):
Bank of England: It is public organisation of UK which frame policies and is controller
of financial services of nation. Scope: Bank of England aim is to frame policies for monetary stability and asset
management of nation. Firm aim is to sustain and enhance economy of UK by
formulating policies and regulations which other commercial banks require to follow.
 Size: It is a central bank of UK which was constituted in 1694. Headquarter of bank is in
United kingdom and is old and eighth position in nation.
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JP Morgan: It is private bank which provide financial services such as asset
management, treasury bills, fund management, financial analysis, wealth management and other
banking facilities to people. Scope: JP Morgan is expanding its business to become leading and largest band all over
the world. For this, bank require to have adequate funds to execute and manage business
in different nations.
 Size: JP Morgan is sixth largest bank which has around 166,900 members which help
bank to generate good amount of profit from business to sustain its position and goodwill
in market (Foss and Saebi, 2017).
Oxfam: It is voluntary firm which is conducting business worldwide for development of
country by giving services and facilities to disadvantaged individuals. Scope: Oxfam focus is to reduce poverty level, provide justice to people, disaster relief
and various other facilities to poor people. For this organisation formulate rules about
rights for social services, sustainable livelihood, security of individuals.
 Size: Oxfam was originated in 1970 as an independent non-profit firm which conduct
campaigns and fight for rights of people.
TASK 2
P3 Relationship between organisational functions and link with objectives and structure
Organisation have various department which are developed by administration to conduct
business activities and achieve business objectives and goals. Human resource, finance,
operation/ production, marketing, sales, R&D are different unit which are existing in companies.
These departments have interconnection with each other and helps management of Tesco to
utilise resources efficiently. Along this, appropriate business activities are conducted in firm to
provide adequate products and services to customers to fulfil their demands and needs. This also
help top personnel to establish competitive advantage to sustain company's position and
reputation in market. Hence, these are different organisation functions which are explained
below (Oriesek and Schwarz, 2016):
Human resource department: This is essential unit to which top personnel given
responsibility to have sufficient workforces in organisation. For this, management of Tesco
conduct HRM practices which are recruitment, selection, performance management,
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compensation, training and development activities. This help them to have skilled and competent
staff to provide quality products and services to buyers. Human resource distribute members in
different department that are operation, marketing, sales and R&D to utilise resources efficiently.
Along this, they construct and make employees motivated and dedicated to position firm superior
than rival bank.
Finance department: Major role of this department is to provide funds to every
department for completing their work in the given time period in effective manner. In context to
Tesco, function of finance department is related to every to every department as it provides fund
to them for complete their work in given time period. For example: finance department provides
funds to marketing department to use latest advertisement and promotional tools. This will help
them to perform their work in effective manner (Prajogo, 2016).
Operation/ production department: Functional activities of production department
involves manufacturing of products and services. In relation to Tesco, its operation department
is related to the function of marketing team. As marketing members are communicating with the
customers and understands the requirement of customers. Marketing department help the
operation department to influence buyers easily, as they have knowledge about different products
that are food items, clothes, home appliances. Along this, management is able to manufacture
appropriate items in respect to demands and choices of people.
Marketing department: Function of marketing department is to promote and popularise
the products and service at market place. In addition to this, marketing team also develops the
brand name of the Tesco in external environment. This department has relation with operation
team, as they interacts with customers on regular basis. In addition to this, marketing team guides
production team to modify products in respect to demands of customer. It will enhance
satisfaction level of customer.
Sales department: Marketing people helps salespeople to promote and advertise
information to people about organisation and its products and services. Tesco provide food
items, home appliances, apparels and many other products to satisfy demands and requirements
of public. In this, marketing team provide support to salespeople to attract customers and make
them purchase products to fulfil their needs. Along this, they even help production team to
provide products accordingly.
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Organisation structure: Executive frame structure to give systematic order to department
and members to make them perform activities accordingly. Divisional, functional, matrix,
project, flat and many other forms of organisation structure which are chosen by top personnel
in according to market conditions and business objectives.
Divisional organisation structure: It is efficient structure which firm uses to manage and
coordinate branches in different countries. This help management to have good market reach and
customer base to improve sales volume and profitability. For this, firm require to have sufficient
resources that is capital and members to conduct business activities effectively.
Functional organisation structure: This is another form of structure which specifies that
department such as HR, finance, production/ operation, marketing, sales, R&D are designed by
management to conduct business activities effectively. Management distribute members in
different unit to make them perform tasks and deliver appropriate products and services in
market (Weiss, 2014).
Management of Tesco uses functional and divisional organisation structure to arrange
and execute business operations to achieve objectives. This help company to sustain its position
and reputation in market. With help of divisional structure helps Tesco to manage outlets in
different countries, thereby have large market reach and customers (Al-Saleh and Mahroum,
2015). Along this, functional structure which specifies that HR, operation, finance, marketing,
sales and R&D department are frame by top personnel to execute activities effectively and
provide variety of food items, home appliances, clothes to people. Thus, company uses these
organisation structure which help top personnel to sustain its position and reputation in market in
respect to rival firms.
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(Source: Functional and Divisional Structure of Tesco, 2015)
Hence, this can affirm from the above discussed graph that Tesco function according to
the hierarchical structure of organisation in regard of properly maintaining their operations in
each division worldwide.
TASK 3
P4 Identify positive and negative impacts of macro environment upon operations
Macro environment is refer to components which are existing in external of organisation.
Government, economic conditions, technological, public and environment are various
components which indirectly affected by business operations. For this, PESTEL analysis is
appropriate tool which is used by top personnel of JP Morgan to have accurate and complete
knowledge about market conditions. It is necessary that bank conduct activities and provide
appropriate financial services to public to fulfil their demands and requirements (Bah and Fang,
2015).
PESTEL analysis of JP Morgan:
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Illustration 1: Functional and Divisional Structure

Political factor: This tactic define that government frame rules to control and regulate
organisation. Trade policies, taxation and many other policies which are formulated by
authorities and which differentiate from one nation to another. For this, executive of JP Morgan
require to have complete knowledge about countries policies which are considered to make
system function legally. Along this, company even require to registration and take license from
government to protect and secure important assets of firm. Positive impacts: JP Morgan provide financial services to people, for which bank follow
instructions and rules of government to make system function properly. Negative impacts: Employment policies, tax and regulations about banking require to
considered by top personnel of JP Morgan which affect on operations (Bryman and Bell,
2015).
Economic factor: This aspect includes interest rate, inflation, exchange rate, growth
which depend on state of country. These are various factor which influence on business activities
as it affect on capital and profit generated by organisation. Positive impacts: JP Morgan is benefited by population growth which help bank to have
adequate clients and members to conduct operations and generate money. Interest,
exchange rate and financial products pricing are require to be set by bank in according to
conditions of country for making contribution in growth of economy.
 Negative impacts: JP Morgan funds availability depend on financial crisis of country
which affect on its operations and market position.
Social factor: Organisation provide products and services to satisfy and fulfil demands
and requirements of people. For this, executive conduct market research and survey are
appropriate technique which help them to have knowledge about needs of public to conduct
business activities effectively (Gebauer, Paiola and Edvardsson, 2011). Positive impacts: JP Morgan provide banking and financial services to people to increase
their habit of saving, investing and take loan for enhancing economy of nation.
 Negative impacts: JP Morgan have large number of rival bank, for which it is necessary
that appropriate financial services are provided to clients to sustain them for longer time.
Technological factor: Administration require to implement appropriate tools and
equipments in system to execute business activities effectively. It is necessary that modification
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