Business Environment Report: Types, Scope, and Functions of Business

This report provides a comprehensive analysis of the business environment, focusing on the types, purposes, scope, and functions of business organizations. It examines both micro and macro environmental factors influencing business performance, using NATWEST as a case study. The report details the characteristics of public, private, and voluntary sectors, exploring their legal structures, advantages, and disadvantages. It also delves into the organizational structure, objectives, and functions of businesses, highlighting the relationship between organizational elements and their impact on achieving goals. The report covers topics such as organizational functions like sales, marketing, and operations. The report also covers the scope and size of different organization and their business activities. The report also elaborates the different sizes, typologies, purposes and scope of business organisation.

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Types and purposes of business organisation..................................................................1
P2. Scope and size of different organisation.........................................................................4
TASK 2............................................................................................................................................5
P3. Relationship between organisational functions, structure and objectives.......................5
TASK 3..........................................................................................................................................10
Covered in PPT.....................................................................................................................10
TASK4...........................................................................................................................................10
Covered in PPT.....................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment means all factors which affect its performance, growth,
profitability and success. The nature of organisation scenario are dynamic, complex, uncertain.
The two type of factors are influenced the profitability and productivity of company such as
micro and macro environment factors. Micro environment are controllable in nature and it
include supplier, customer, intermediary, competitor etc. whereas the macro environment factor
are uncontrollable in nature and it consist economic, social, political, legal, demographic factors
etc. NATWEST is the world leading international bank which provide the various financial
services to other organisation in term of commercial banking, investment banking and other
products and services. This report also elaborated the different sizes, typologies, purposes and
scope of business organisation. To analyse the micro and macro environment factors are also
mentioned in this report. The report also mentioned the strength and weaknesses which are
intercalated with external environment.
TASK 1
P1. Types and purposes of business organisation
Business organisation is the place where large number of persons are come to fulfil their
needs and wants. They provide various employment opportunities to large number of people so
this can help to improve the living standard of people. Manger has responsibility to maintain
strong relationship with their employees so they can give better productivity and profitability in
long run. Business manager mainly focus for establish organisation functions and objectives so it
can help to accomplish goals and objectives in long run (Auzair, 2011). There are various
typologies which are described as below:
Public sector: Government has established this sector. They are regulated and controlled
all activities and operations of this sector. The main aim and target of this sector is to provide
better products and services to large number of customer. They are not worked for making
profits. This sector works for welfare of society. They establish various facilities to public
especially poor persons like free medical facilities, education, foods etc (Ahmed, Aamir and Ijaz,
2011). Various ministry bodies are largely supported to this sector it include national and local
agencies.
Legal structure: This sector are divided into three parts, these are as follows:

Central government: This government has right to imposed various rules and
regulations in organisation so according to this policies, company has made their strategies that
can help to achieve better profitability and productivity in near future (Barnettand Salomon,
2012).
State government: National government has given power to this state government. This
government has right to control and maintain all organisation activities and operations so it can
achieved in given time.
Local government: This government bodies play major role for managed and control the
various areas. This government has right to make various rules and regulations so it is necessary
for company to follow this policies and procedures. They mainly work for public welfare so
customer wan t and demand are easily meet. This improve the satisfaction level of consumers.
Advantages:
 They provide various perquisites in term of education, health and other services.
 They ensure the efficient control of industry (Auzair, 2011).
Disadvantage
 They can generate high taxation and tariff.
 Lack of competition
Private sector: The main aim of establishment of this sector is to make large profits.
This sector firstly identify the need and want of customer and according to this demand, they can
manufacture various innovative products and services.
Legal structure: This sector are divided in various parts, these are as follows:
Sole trader: This type of organisation is operated by single owner. They alone are able to
make decision and responsible for all organisation activities and operation. The main
disadvantage of this type of business is that they are not able to invest high capital (Grimpe and
Kaiser, 2010) .
Partnership: Partnership is formed by two or more persons. The main gaol and objective
of this business is to make large profits. It is necessary for every partnership that they have
registered inn partnership deed.
Limited company: Both the public and private company are included in this limited
company. But the limited liability are existed in this company (Helms and Nixon, 2010).

Advantage:
 They provide various employment opportunities to large number of public, it can help to
remove the unemployment condition that exist in country.
 The most important advantage of this sector is that its liability is limited so it is
beneficial for every person.
Disadvantage:
 The major disadvantage of this sector is restrict the transferability of shares.
 They are not able to issue prospectus to general public (Barnett and Salomo, 2012).
Voluntary sector: This sector are not established by single person but it is operated by
group of people. It is just like the non-profit organisation and their main aim is to provide better
products and services that can help to meet the need and want of customer (Hoang and
Rothaermel, 2010.). This kind of organisation works for economy development and
improvement.
Above these are three kind of organisation that can largely help for development and
improvement of economy. All these sectors are working with different methods and procedures,
so they are differ from each other. This organisation has established with their own goals and
objectives. This sector provide equal employment opportunities to large number of persons so it
can help to improve and develop the living standard of people. So the unemployment condition
are not existed in long run (Bryman and Bell, 2015).
Advantage:
Organisation have to obey the social responsibility, so it maintain that they invest some share
into this public welfare and non profit organisation.
Disadvantage:
There is not profit because they almost invest their output into them for the social welfare.

P2. Scope and size of different organisation
Today, large corporations play major role for development and improvement of
economy. It is necessary for every business enterprise to works in an ethically manners so it can
help to development and improvement of economy (Chang, Hughes and Hotho, 2011). Every
business enterprise are basically consist into three parts, these are as follows:
Private sector: This sector play very important role for development and improvement
of economy. They mainly focus to contribute in country development. Now a days, people are
interested to operate their own companies because they are not interested in any job. So this will
help to provide large employment t opportunities to public so it can help to improve the living
standard of people. They also focus to provide better quality products and services to large
number of customers. This sector are divided into three parts such as sole trader, partnership and
limited companies. The main aim of this cited organisation is to make large profits in near future.
This enterprise are made various business strategies and according to it, they can produce various
goods and services (Boons and Lüdeke-Freund, 2013). They work with full efficiency and
effectiveness. Private sector consist various functions, these are as follows:
 Earn maximum profits
 To meet the need and want of customer
 Produce high quality products and services.
Size and scope:
NATWEST is the world leading bank of international economy. They are operated in
United Kingdom. They mainly focus to provide better financial services to other organisation.
Their market target is approx. 6.6 % shares in London. They can able to provide financial
services to all type of organisation whether it is small, medium and large. They generate the low
interest rate that can help to attract large number of customers. The main aim is to provide better
services so this can help to gain the customer trust and loyalty. This will improve the goodwill in
market place .
Public sector: This type of sector is formed by the government authorities. Government
has right to maintain and regulated all policies and procedures that are exist in this sector. The
main sources that can help to give large funds in this sector are taxation and tariffs. The main
aim and objective of this kind of organisation is to provide better services to society. They are
not worked for making profits. There are various functions of this sector are as follows:

They largely help to poor and needy persons who live in below poverty line. They protect the
interest of weaker section of large society (Business and the environment, 2017) .
Size and scope:
London transport is public company that are located in United Kingdom. They mainly
works for providing the transportation services to large number of public. In this organisation,
approx. 13000 workers has currently employed. They made their goals and objectives according
to mission and vision statement. The mission of this cited company is to protect the environment.
The main goals and objective of this cited company is to provide better transportation facilities to
large number of public.
Voluntary sector: The main aim of this cited organisation is to fulfil l the basic needs of
poor and needy persons. Various trust and NGO are working under this sector. Their size and
structure is of small in size. This type of sector is not working for make profits but they are
provide better services to large number of public. They also provide various employment
opportunities to a large number of public so it can help to reduce the unemployment condition
that exist in country (Borio, Drehmann and Tsatsaronis, 2014). They also provide the free
education facility to children. The main goals and objective of this cited company is to provide
the better medical facilities to those person who are not afforded (Macro environmental forces,
2011).
Size and scope:
Prince trust is the largest charitable trust that are located in united kingdom. They provide
various training and development programme and also give financial grant to disadvantage
people. This in one of the largest funding organisation which are located in united kingdom. If
they go on this service then they will fulfil the needs and demand of the people along with this
they makes society better and increase standard of living.
TASK 2
P3. Relationship between organisational functions, structure and objectives
Every kind of company have various functions which is very important for full fill the
objectives and targets. NATWEST is one of the most popular international bank of UK.
Organisation structure of this company is very effective which operate activities in various

locations. Various rules, laws, regulations, plans, obligations, and business activities are include
in the structure of the organisation (Crane and Matten, 2016). The top part of the structure which
formulate policies, strategies and decide goals and objectives of the enterprise. The top level of
manger play important role for accomplish organisation productivity and profitability. There are
various objectives of cited organisation are given below:
 Development and improvement of the organisational performance.
 To boost up income level and productivity also.
 To provide their best and quality products to various customer so that they can satisfied.
 One important purpose is that to reduce the cost of production and maximize the
earnings.
 Company also try to save the time and money so that they can easily achieve their goals
and objectives (Demil and Lecocq, 2010).
There are various function of organisation, these are as follows:
It is necessary for every organisation is to produce the better product and services so it
can help to fulfil l the need and want of customer . They largely works for achieve their goals
and objectives in short period of time. NATWEST also focus for various functions which are
mentioned below:
Sales and marketing: It is necessary for organisation to establish various research and
development programme that can help to identify the need and wants of customers. Company
also made various marketing strategics that can help to achieve their goals and objectives in a
given time period. They use various promotional and advertisement tools that can help to
promote their products in large geographical area (Demil and Lecocq, 2010). Sales representative
actually force to the target customers to open their account in this particular bank which leads to
the benefit as well as profitable to the organisation and public.

Finance: Manager has responsibility to maintain all records and information relate to
company. Company has acquire large funds from various sources such as commercial bank, and
other financial institution. They can acquire the funds from various short term and long term
sources. Manger has responsibility to make the proper income and expenditure records so it can
help to increase their profitability and productivity . It is responsibility of manager to maintain
the strong relationship with their subordinates so it increase the motivation and efficiency level
of workers so employees are able to give best potential in order to achieve profitability and
productivity of company.
Human resource: This resource is very important for every organisation success and
profitability. HR department is essential for every company. Company has establish the training
and development programme this can help to increase the knowledge and skill of workers.
Worker are able to perform their task with full efficiency and effectiveness . Manger has
responsibility to provide the positive working environment in their organisation so workers can
easily do their task in an effective manner. This will help to reduce the labour turnover problem.
HR manger also focus to provide the various perquisite facilities to their employees so it can help
to increase their motivation level. They can generate the training facility to their worker so it
encourage the skill and knowledge competence of worker and they can able to give their best
potential in order to achieve high productivity and profitability in long run (DongW and Hou,
2009).

Administration: This department play very important role for organisation growth. They
can mainly focus to assess the activities and operation of organisation. They can prepare various
plans and procedures so it can help to accomplish organisation goals and objectives in given time
period. They regularly focus to maintain the strong relationship between employer and employee
and give the motivation element to their workers (Marketing and business environment, 2014).
The main responsibility of this department is to gather all Data and information relate to
company policies and rules and worked for it (Edquist, 2010). This can help to accomplish the
goals and objectives in near future.
Research and development: It is necessary for every company is to focus for research
and development programme (Bryman and Bell, 2015). The research department can easily find
the interest and exchange rates of competitor and according to this they can establish their rates..
So company has acquire large funds from various sources this can help for conduct this
programme. They also gain competitive advantage over other rivals.

(Source: TESCO COMPANY ORGANISATIONAL STRUCTURE CHART EXAMPLE, 2016)
Tesco is the leading retail company that are located in united kingdom. There are three
level existed one is top level , middle level and lower level of manager. In this cited company the
top level consist regional manager, it has responsibility to allocate each task to middle level and
lower level of manager. They work for both the food and non food products. It is responsibility
of store manager to see the working method of food trading and non food trading manager. In
food trading manager, it consist three section that is fresh food section manger ,ambient food
section manager and electrical section manager. The personal manager responsibility to appoint
personal assistance which help for gain organisation profitability and productivity. Company has
focused for produce organic products because the customer are so conscious about their health,
they largely preferred the organic foods.
Illustration 1: TESCO COMPANY ORGANISATIONAL STRUCTURE

TASK 3
Covered in PPT
TASK4
Covered in PPT
CONCLUSION
From the above mentioned report, it can be concluded that it is necessary for every
organisation identify their internal and external environment with the help of swot and pestle
analysis. They also produce innovative products and services that can help to attract large
number of customers. They mainly focus for maintain and improve their goodwill and
productivity. This report also describe the functions of finance, human resource, sales and
marketing.