NATWEST Bank: Business Environment and Organizational Structure

This report provides a comprehensive analysis of the business environment, organizational structure, and related factors of NATWEST Bank. It begins with an introduction to the importance of considering environmental factors in business decisions, particularly macro and micro environmental influences, and sets the context for the report, which evaluates different business typologies, sizes, purposes, and scopes of business organizations. The report explores the typologies of business organizations, including public, private, and voluntary sectors, detailing their legal structures and objectives. It then delves into the scope and size of different business organization types, focusing on the private sector with NATWEST Bank as a case study. Furthermore, the report examines the interrelation between organizational functions, structure, and objectives, and analyzes the positive and negative impacts of external factors on organizational activities. It concludes with a micro and macro analysis of the organization, focusing on internal strengths/weaknesses and their relation to macro environmental factors.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Typologies and purposes of business organisation along with their legal structure..............1
P2.Scope and size of different typologies of business organisation...........................................3
TASK 2............................................................................................................................................4
P3.Relation betwixt various organisational functions and there relevance with organisational
structure and objectives...............................................................................................................4
TASK 3............................................................................................................................................6
P4.Positive as well as negative impact of external factors on organisational activities and
practices.......................................................................................................................................6
TASK 4............................................................................................................................................6
P5.Micro and macro analysis of organisation.............................................................................6
P6.Interrelation betwixt strengths/weaknesses and macro environmental factors......................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
It is very much important for organisation to consider all environmental factors while
making business decisions. This can also help in providing good working environment to
workers. For making changes in current products and services, mangers have to use appropriate
technology so that they can provide high quality goods or services to their customers. Mostly,
this kind of modifications are made by top management and higher authorities. Business
organisation have to make its strategies and policies to consider macro environmental
components (Klapper, Lewin and Delgado, 2011). Above mentioned factors can increase and
decrease organisational profitability. In simple words, failure and success of any enterprise
depends upon micro and macro environmental factors. This project report is based on
NATWEST which is a very reputed international bank of London. In present time, NATWEST
and RBS are the leading banks of UK. In this project report, different typologies, size, purposes
and scope by business organisation has been evaluated. Interrelation between organisational
functions and objectives has also been demonstrated. At last, relationship betwixt Internal
strengths/weaknesses and macro environmental factors has been determined.
TASK 1
P1.Typologies and purposes of business organisation along with their legal structure
Business organisation can be defined as place where many people come together to fulfil
their personal and professional objectives. Enterprise provides various employment opportunities
to poor people so that they can improve their standard of living. Company is managed and
controlled by its administration department. It is very much important for business mangers to
interrelate their organisational functions and objectives so that desired results can be achieved.
There are various typologies of organisation which are follows as under:
Public sector
Private sector
Voluntary sector
Public sector: This sort of business organisation is part of government , because they are
managed and controlled by legal authorities (Welford, 2013). Public sector company provides
various products and services to general public but at lower prices. This kind of enterprise
provides various public services such as health and social care, education, constabulary, military,
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transit facilities etc. The major objective of public company is to provide social welfare. It
includes various ministry bodies such as national and local agencies. Example: National health
service.
Legal structure: Public sector company is divided into three parts which are following as under:
 Central government: It is called as most important legal body. Central government of
United Kingdom have made various rules and regulations for organisation so that it can
make strategies according to legal aspects.
 State Government: Legal authorities which comes in this category, take their power from
national government. The main function of state body is to keep control on organisational
activities and practices (Moutinho, 2011).
 Local government: This kind of legal authority makes various rules and regulations to
mange and control local areas. It also provide justice to local people so that their interests
can be promoted and protected.
Private sector: The main objective of privately held company is to manufacture high quality
products and services to satisfy different needs and wants of customers. This type of organisation
is highly focused on maximising financial profit. Private sector is also refer as citizen sector
because it provide goods and services to citizens. Privately held company can re-innovates its
products and services on interval basis. Vodafone is an example of private company.
Legal structure: Private sectors is categorised in various parts which are following as under: Single proprietorship: This type or organisation is operated by single individual. He is
responsible for organisational success and failure. The biggest problem in this is that,
single person can not afford high level of capital. CLT Accounting Services Ltd. Is an
example of sole proprietorship. Partnership: It is that kind of organisation which is operated by two or more persons.
The biggest advantage of partnership is that profits and losses of company is divided into
different partners. For example: Pret A Manger. Private limited company: This type of enterprise have their own rights. According to
this, finance of company is apart from its own owner's capital. Private limited
organisation can be limited by shares and grantees. Shareholders of firm can be people or
other enterprises. AEGIS GROUP PLC. Is one of the leading public limited company.
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Voluntary sector: Company which comes in this category is not operated by people and legal
authorities. In fact, they are known as non profitable organisation, which provides its products
and services to poor people free of cost. Mostly, it involves charitable trust which helps poor,
orphans and under privilege senior citizens. The main objective of voluntary sector is to enhance
social welfare, so that it can improve and develop country. Cancer research UK is example of
voluntary organization.
Moreover, due to environmental changes UK economy is continuously changing.
Proportion of population is affecting those activities which are supporting national economy.
There are various sectors which have been explored due to economic change, which are primary,
secondary and tertiary.
Primary sector: This involves those activities which are totally dependent on environment. In
simple words, companies of this sector utilise the resources like building materials, minerals,
vegetation, water and land. This type of industry manufacture or produce their products and
services by taking help of natural resources (McMillan and Rodrik, 2011). It involves mining,
farming and fishing industries. Owner of this type of company have to use natural resources that
is why they have to live near the area where they can easily get them. People of this sector is
known as red-collar workers. For example farmers have to live near farms so that they can
operate their farming activities in most effective manner. BHP Billiton is an example of primary
sector company.
Secondary sector: Industry which comes in this sector, use the resources produced by primary
sector. In simple words, secondary sector get their raw material from primary sector so that they
can operate their business activities and practices. People of this industry is known as blue collar
workers. Company of this sector focus on transformation of raw material into final goods. It
includes carpenters, steel workers, car manufacturers and builder who acquire inputs from
primary sector to operate their business activities (Schindler and Lörz, 2011). The traditional
building Co. is an secondary sector organization.
Tertiary sector: It includes those enterprise which provides services to other corporations and
customers. Catering, hotels, education and call centres come in this industry. People engaged in
this sector is known as white collar workers. Softcat is one of the leading company of tertiary
sector
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Hence, these are the three types of organisation. Every sector is different from each other.
They all have their own goals and objectives. All sector plays a significant role in economic
development, as they provides various employment opportunities to unemployed people.
P2.Scope and size of different typologies of business organisation
In modern world, improvement and development of nation depends upon its various large
and small corporations. So it is very much important for organisations to work ethically so that
they can contribute more in economic development (Hamilton and Webster, 2015). Business
enterprise is divided into three parts which are following as under:
Private sector: Privately held company have a great role in economic development of UK or it
can be said that improvement of national economy depends upon private company. In resent
time, lots of people are starting their own company because they do not like to work under any
other origination. This step of individual helps in job creation. This type of company enhance its
growth by providing quality goods and services to customers. Private sector can be divide in
three parts which are sole proprietorship, partnership and limited companies. This sort of
organisation is highly focused on profit maximisation. Privately held enterprise make various
strategies and policies so that it can operate its activities and practices in effective and systematic
manner. Main functions of private sector are following as under:
 Profit maximisation
 To satisfy needs and demands of customers To provide high quality products and services to clients
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Illustration 1: Types of business organisation.2017

Size and scope: NATWEST is one of the leading bank of United Kingdom. It is a private firm
which provides financial services to other organisations (Cuervo-Cazurra, 2011). This company
have its 4,400 branches in all over the world. Also, it have 6.6% shares in share market of
London. The main objective of this company is to provide financial services to large and small
organisations so that they can operate their business activities and practices. For better growth of
bank, it should provide low interest rate which can help it in attracting a huge number of
customers. This organisation achieve customer's trust by giving them best services. This also
help it in enhancing its goodwill in market place. Most important target of this company is to
increase its market share by next year.
Public sector: Company owned by government is come under public sector. This type of
organisation makes various rules and policies. It collects most of funds by taxation policy. The
main objective of this kind of organisation is to provide best services to general people (Cai and
Yang, 2014). Main functions of public sector company are following as under:
 Help poor people by providing them food and other services. Protect and promote interests of weaker section
Size and scope: London Transport is one of the leading public company of United Kingdom.
This organisation provides transportation services to general people. This transportation
company have strength of approx 13,000 employees. London Transport is having mission of
protecting environment. Main objective of this firm is to improve and develop transportation
facilities and services.
Voluntary sector: It includes those charitable trusts and organisation which provides basis needs
to poor, handicapped and old citizens. This sort of company is not big in size. Its main objective
is to improve national conditions. Voluntary sector is highly focused on weaker sections are
come under poverty line (Harrison, 2011).
Moreover, these are the important sectors in which organisation can be divide. They
contributes a lot in national development. With the help of them many people can get employed.
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TASK 2
P3.Relation betwixt various organisational functions and there relevance with organisational
structure and objectives
Every business organisation is establish to fulfil its objectives by operating various
functions. NATWEST is one of the most popular international bank of United Kingdom. This
company have great organisational structure, which operate its functions in effective and
systematic manner. Structure of company includes various rules, regulations, obligations, plans,
positions, business activities and so on. There are various types of organizational structure which
are follows as under:
Functional structure: In this type of structure, work of people are divided according to their
positions. Mainly there are two positions line and staff. Individuals of line position gives
command to other members of company. Also, they are responsible for organizational success
and failure. On the other side, people with staff position takes command from higher authority
and work according to them.
Divisional structure: This is known as most effective organizational structure. In this, company
is divided into different departments on the basis of product, function, project and geographical
territory (Nagarajan and et. al., 2012).
Matrix structure: It is that permanent organization designed which helps in achieving
organizational goals with the help of specialists of different functional areas. It includes set of
divisions in which people report their work onto a hierarchical functional structure. NATWEST
company is currently using this organizational structure.
The first part of organisational structure is known as top management which makes
various important decisions that can help in accomplishing company's goals and objectives
(Nicolaidis and Katsaros, 2011). It also gives instruction to lower management. It is
responsibility of mangers to fulfil all objectives of enterprise, because without them no
organisation can enhance its growth and development. Major objectives of NATWEST are
following as under:
 To improve and develop organisational performance.
 Enhance productivity and profitability
 Provide high quality goods and services to customer so that they can satisfy their needs
and wants.
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 The most important objective is to minimise organisational cost, because it can increase
organisational expenses (Ullah and Lai, 2011).
 This company wants to remove its wastage so that it can save its time and resources, and
can utilise them effectively.
Hence, these are some most important objectives of NATWEST. Employers and
employees of this company makes various efforts to accomplish its desired results. This
company have various departments which operate their function to achieve its desired results and
also shows that there is huge relationship between organisational functions and objectives.
Human resource: It is that department of company which helps in recruiting and selecting most
qualified staff. In simple words, human resource helps in recruitment and section. Through this
organisation can have suitable employees which can help in accomplishing organisational goals
and objectives. Also, this section provides helps in determining worker's performance. By
evaluating work force performance, human resource department can provide them training and
development programs, which can help the in increasing their work efficiency and effectiveness
(Guglielmetti, 2011). If NATWEST will have high skilled labours then it can enhance its
profitability and productivity in minimum time period. As, cited company is using matrix
organizational structure, Which helps HRM department in decentralising decision making.
Sales and marketing: This is known as most important department of company, which helps in
promoting products and services. In modern world, marketing has become most important aspect
of every business enterprise. Through this, NATWEST can promote and advertise its various
services among people. Also, with the help of sales team it can approach to a huge number of
customers. The main task of sales department is to do field work so that actual needs and wants
of client can be identified. So, sales and marketing department gives accurate knowledge about
customer preferences through which company can produce its products and services according to
their preferences. By this NATWEST can give better experience and satisfaction to their
potential customers. Matrix structure of company helps it in improving its product quality. Also,
it provides effective environment monitoring through which marketing department can easily
identity market needs.
Information Technology: It is that department of organization which use computer system to
store, transit and manipulate information. With the help of technology advancement, NatWest
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has improved his services. By taking help of technical support this company have become able to
provide inline services to its customers (Venkatesh, Thong and Xu, 2012).
As, NatWest have matrix structure in which it divides people in different group so that
business activities can be operate it activities in most effective manner. As per its structure, cited
company have to make its functions interrelated. It department have to forward information to
marketing department so that it can take future decisions about market place.
Hence, these are some most important functions of NATWEST which helps it in
accomplishing its above mentioned goals and objectives.
TASK 3
P4.Positive as well as negative impact of external factors on organisational activities and
practices
A organisation can get higher success if it operate its business functions and activities
according to its business environment. In simple words, without considering environmental
factors no organisation can accomplish its desired goals and objectives. Business environment is
divided into two parts which are internal and external. Factors which affects organisational
performance from inside is called as micro or internal factors. On the other side, factors which
affects performance of organisation from outside are called as external and macro factors.
It is very much important for NATWEST to evaluate its business environment. This
company can use PESTLE analysis to determine macro environmental factors. This is
responsibility of its mangers to identify that what positive and negative affects of external
environment can be. Organisation can determine it by developing various business plan (Craig
and Campbell, 2012). This can also force NATWEST to consider different macro environmental
forces. By evaluating these factors company can make effective and systematic strategies which
can help in enhancing its profitability and productivity.
Business enterprise can control micro environmental elements but not macro elements.
Different external components are following as under along with their positive as well as
negative impact:
Political and legal factors: Continuous changes in government policy is affecting banking
industry. After the labour movement Government of United Kingdom have made many laws
which force organizations to consider their human resources while making important decision.
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The positive impact of political factor is that it gives relaxation to organization in taxation policy.
Also, By implementing various legislations NATWEST can retain its employees for long time
period. But it is not easy for this company to comply with all rules and regulations of UK
government.
Economical factors: This external factor is managed by government to control the supply and
demand of currency. Due to global shifts, prices of oil and other natural resources has been
increased. After the recession period, economic condition of British has changed. People of UK
does not spend a lot in banking sector which is affecting NATWEST. But in modern world,
economic condition of United Kingdom is improving very well which is providing high growth
to banking firms (Fatoki and Smit, 2011). To consider economic factors, cited organization
should set its interest rate according to customer;s purchasing behaviour. By doing this, company
can attract a huge number of clients. But any changes in government policy can bring various
problems of this enterprise.
Social factors: United Kingdom have diversified people or population. Different kind of people
have different needs and demands. NATWEST company should make accounts according to the
needs of its clients. Online services of this organization provides high satisfaction to its
customers. By considering social needs, banking enterprise can attract many clients. But sudden
changes in customer needs can affect organisational growth as well as its performance.
Technological factors: Due to technology advancement banking sector has increased its
financial profit. With the help of technical support, NATWEST have become able to provide
inline services which is huge advantage for this. But it consumes high cost which influence
negative impact on this company.
Environmental: It is responsibility of all organizations to protect their environment. If
NATWEST will consider environmental factors while making important decision the it can
protect its environment in which it exists. By doing this, it can increase its corporate image in
market place (Hamilton and Webster, 2015).
TASK 4
P5.Micro and macro analysis of organisation
Every organisation is surround by its business environment which can influence positive
as well as negative impact on organisational performance. It is huge duty of business person to
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make sure that their strategies and polices are according to their environmental factors. There
are various internal forces which can affect company internally, these are customers, employees,
stockholders, products and services, strategies and polices and so on. This kind of factors can be
control by organisation, as they are controlled by management system. On the other side macro
environmental factors are those which can affect company externally. They involves political,
environmental, sociocultural, legal, technological forces. These factors can not be control by
business enterprise. So it is very much important for NATWEST to evaluate all these factors so
that it can determine its positive and negative sides (Carlin, and Schaffer, 2012). For analysing
micro and macro factors company can take help of SWOT matrix. This concept help
organisation in evaluating its internal as external aspects which can affect its current position in
market place. SWOT analysis of NATWEST is following as under:
Strengths (Internal):
 This company have great brand image in United Kingdom. As it provides financial
services at lower interest rate.
 It is also associated with various sports event which helps it in increasing its goodwill in
market place.
 This company have also have big size as it have approx 8,60,000 bank accounts which
shows that it have huge number of customers.
 This is well known baking company as it gives high attention to its customer
satisfaction.
Weaknesses (Internal):
 This company have less global presence because its most of branches are established in
United Kingdom only.
 Due to some controversies this organisation have reduced its brand image.
 Increment in competitor banks is also decreasing its market shares.
Opportunities (External):
 This company can enhance its profitability and productivity by expanding its business at
international level (Cassell and Blake, 2012).
 By developing fore market this company can also increase its market shares.
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