Business Environment Report: Organizational Types, Functions, NATWEST

This report provides an overview of the business environment, focusing on the analysis of NATWEST, a major commercial bank in the United Kingdom. It begins by defining the business environment and its impact on organizations, emphasizing the need for analysis to ensure smooth and effective operations. The report then explores various types of organizations, including public and private companies, sole traders, partnerships, franchising, and voluntary sectors, detailing their characteristics, legal structures, and objectives. The size and scope of different organizations are also examined, using TESCO and NATWEST as examples, highlighting their revenue, employee numbers, and missions. Finally, the report analyzes the relationship between organizational functions, such as production and design, finance, and human resources, with the company's objectives and structures, emphasizing the importance of these functions for achieving success in the market, with specific reference to NATWEST.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different types and purpose of organisation...............................................................................1
Size and scope of different types of organisations......................................................................4
TASK 2............................................................................................................................................5
Relationship of organisational functions with its objectives and structures...............................5
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment can be defined as an internal and external factors which affect
company's operation as well as employees, customers and management activities in positive and
negative manner both (Chavis, Klapper and Love, 2011). In order to get success in the market, it
is necessary that organisation should analyse these elements so that operations can be carried out
effectively and smoothly. This project is based on NATWEST which is the biggest retail
commercial bank in United Kingdom. Various types of organisations and their objectives will be
defined in this report as well as it will also state about their scope, size and legal structure. It will
also explain the relationship among different functions of an organisation.
TASK 1
Different types and purposes of organisations
In today’s era of globalisation, there are various types of organisations which are
operating their business in the market for achieving specified objectives and goals. Some of them
are given as below-
 Public company- These kind of organisations are those in which government is holding a
large share of capital and is taking all important decisions regarding company. In this, top
authority of nation takes interest in the business activities and also evaluates its
operations whenever required, for ensuring that company is going into right direction and
is following all specified rules and regulations (Commander and Svejnar, 2011). These
organisations have the main motive to utilize public resources in an effective and
efficient manner so that society can get more benefits out of the same. In other terms,
these kinds of firms are carrying out their operations for doing social welfare while
earning profit. For example - TESCO. Its legal structure is described as below-
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 General government- It has three types which are explained hereunder-
◦ Central government- It is the prime regulatory body which has main responsibility to
make rules and regulations for controlling the situation of whole country so that
economy can be developed (Eckardt, 2012). It generates revenue by collecting taxes
for citizens and is also responsible to print money as per marketing situation.
◦ State government- These kind of government looks after a specific state and controls
negative activities there that means it has main responsibility to take care of a
particular state and to control or prevent any unethical activities within limited
boundaries.
◦ Local government- It is only obliged to look after the activities of small area like city,
district, town, etc. Private company- These kind of organizations are looked after by private individuals
who operate this for earning profit as well as for capturing a large customer base. Like
NATWEST; which is a private organisation is running their operations for gaining more
benefits. Its legal structure is described as below-
◦ Sole trader- He is the only person who is responsible to carry out business operations
and entitled to keep surplus, if any as he is the only owner of his firm. In case, if there
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Figure 1: Legal structure of public company
(Source: Legal structure of public company, 2017)

is any kind of financial crisis then he will only be liable that means it cannot be
shared with anyone.
◦ Partnership- It is that kind of business where two or more persons operate their
business activities for obtaining common goals and objectives (Eisenberg and Miller,
2012). Before carrying out venture, an arrangement has been made among partners
which will contain all terms and conditions of business like profit sharing ratio,
amount of capital, rights and responsibilities, etc. If there will be profit or loss then it
will be distributed among members as per the decided ratio. In this, every individual
will have unlimited liability.
◦ Franchising- In order to capture a large market share, now a days, mostly companies
are adopting this strategy in which owner of business gives right to other one for
using his trade name or logo in exchange of royalty. Individual who has given right,
will be known as franchisor and other one will be franchisee. If anyone wants to use
the trade name of other individual then he will be liable to operate their business as
per specified rules and regulations of franchisor; otherwise this agreement will be
terminated. Along with this, all required material will be provided by the business
owner so that products or services can be delivered to the customers as per specified
standards. Overall, it can be said that this strategy is very helpful in capturing a large
market share.
 Voluntary sector- It is when group of people comes together voluntarily and starts a new
venture for society welfare. It can also be called as non-for-profit organisation which has
the main motive to provide various benefits to society without having will to earn profit.
It is helpful in improving the living standard of people (Hamilton and Webster, 2015).
For example - In the United Kingdom, OXFAM is operating their business at
international level which has main motive to remove poverty situation from the world so
that everyone can live their life effectively and efficiently. These type of business gets
various types of benefits like they do not need to face any competition, government
support, no requirement to pay tax, etc. Along with the benefits, it also has some
limitations like its members do not get any kind of surplus because it is a charitable trust
which has main motive to provide benefits to the society.
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Size and scope of different types of organisations
Every organisation has different size and scope which depends on the amount of capital
of the company. There are description of different types of companies which are given below-
Public sector organisation- One of the popular organisation which name is TESCO, is
the biggest retail outlet in United Kingdom (Jayeoba, 2012). It delivers grocery and other
merchandise related items to the people so that their needs or wants can be satisfied. It comes on
third position if it will be evaluated in terms of profit. It is operating their business at
international level which has opened approx 6553 stores through out the globe by which it is
generating approx 54 million pound revenue in a year. There are employed approximately
476000 employees who are playing an important role in its success because it aids in serving to
their clients as per their requirements by which it is able to retain customers for long period of
time. With the help of workers, organisational efficiency and effectiveness has been increased by
which it is able to reach to its decided destination within stipulated period of time. TESCO is
operating their business because of providing better quality of goods or services to their
customers so that they can live happily. On the other hand, It has also mission statement which
states that it wants to be champion for their clients and to help them so that they can get better
quality of goods or services and find out a effective way for living happily.
Private sector organisation- In private sector, NATWEST retail commercial bank is
operating in United Kingdom which has main motive to enhance sales or revenue as well as to
capture large market share. Its network is too large because it has approximately 960 division
and 3400 cash machines through out Britain (Klapper, Lewin and Delgado, 2011). Whenever
their clients requires its help then it is available at all time because it serving to their customers at
24*7 format. It provides better quality or goods or services as per requirements of customers so
that they can be maintained for long period of time and will help in achieving the expected result.
It delivers online banking and action line telephone services to their customers. Approximately
33300 skilled and capable employees are working here and providing help in serving to their
consumers as per their requirement by which organisation is able to attain its desired result
within stipulated period of time as well assists in attaining competitive advantages over its rivals.
It has also approx 7.5 million personal clients and 850000 small business accounts which creates
great revenue for the company. It has also got a award which name is “Best Banking App”
because of providing better facilities to their users.
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Voluntary organisation- One of the biggest charitable organisation in UK is OXFAM
which has main motive to minimize financial crisis from the world so that everyone can live their
lives effectively and without facing any kind of problem. For preventing any unethical or unfair
practise for the global, it conducts various programmes in which all issues are addressed properly
so that desired result can be obtained (.Klapper, Lewin and Delgado, 2011). In order to enhance
their own effectiveness, it is taking support from local accountable organisations. It has main
objective to help people whenever they required and local community is not working properly
and appropriately. It also helps in developing the structure of society so that everyone will get rid
of poverty related problems and injustice situation. This sector can be divided further into three
parts which are described below- Primary sector- It involves the acquisition of raw material from the earth or any third
party. Generally, farmers, coal miners and hunters workmen are included in this criteria. Secondary sector- At this stage, raw material will be converted into goods or services. In
simple terms, it can be said that company will collect all tools or techniques at one place
so that manufacturing process can be carried out effectively and efficiently and without
any disturbance.
 Tertiary sector- In this, organisation will serve to their customers by supplying better
quality of goods or services. This sector delivers their merchandise to general public and
other businesses like retail, sales, transportation etc.
TASK 2
Relationship of organisational functions with its objectives and structures
From a research, it came to know that NATWEST is a largest commercial bank in United
Kingdom which provides their services as per requirements of customers so that they will not
switch to any other brand (Krishnan, 2013). It provides various range of products or services like
banking and insurance related products or services as per their requirements which helps in
achieving the desired result or outcome within stipulated period of time. In order to get success
in the market, it is necessary that chosen organisation should carry out various types of functions
in an effective and efficient manner which are described below- Production and design- In order to get success in their particular industry, it is necessary
that organisation should conduct market analysis for identifying needs or wants of
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customers so that their requirements can be satisfied easily and effectively and they will
remain in the company for long period of time. If organisation will do that then large
number of customers will be attracted towards it and will only prefer its products or
services rather than of its rivals. It will assist in reaching to its decided destination within
stipulated period of time (Love, 2011). For achieving same, it is necessary that production
process should be improved so that appropriately products or services can be designed.
For this, it should adopt batch, six sigma etc. related strategies so that production
efficiency can be enhanced. In this procedure, mainly some components play an
important role like labour, raw material, capital etc. without having them, no task can be
completed. Finance- It is the most important function that should be carried out with proper care so
that expected result can be obtained. If NATWEST wants to complete their project on
time and in an effective manner then it should have proper amount of financial resources
so that desired outcome can be obtained. Here, finance department has responsibility to
analyse the requirements of funds to each and every activities and must allocate resources
accordingly so that operation can be run in smooth and effective manner. Human resource function- It is another functions which should be carry out with proper
care because if it will not be exist at workplace then no employees will perform as per
specified standards then organisation will not be able to reach to its decided destination
within decided period of time (Macdonald, 2012). This section of company has main
responsibility to analyse staff requirement so that there will not occur any over and under
staffing situation. Suppose if there will be no proper availability of employees then task
will not be completed on time and effectively which will create hurdles in the success of
company. So this section is very important which helps in achieving competitive
advantages over its rivals. It is also known as backbone of company which assists in
reaching to its decided destination within specified period of time. Sales and marketing functions- Identification of needs or wants of consumers is an
important task in today competitive environment because products or services will be
able to satisfy the requirements of consumers then it will be able to attain competitive
advantages over its rivals. This analysis will be done by marketing department because it
has more knowledge about market situation and behaviours of customers.
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 Administrative functions- This department has main responsibility to address the
problems of customers, solves their queries etc. so that they will not switch to any other
brand. Apart from this, it maintains proper records or documents by which important
tools or techniques can be maintained in an effective and efficient manner like annual
reports, notices etc. In short, it can be said that it works as a link between employer and
employees of NATWEST because it conducts meetings and research related activities so
that problems of members can be resolved easily and effectively so that they can become
committed towards their job and company.
 Research and development- In order to attain desired result effectively and efficiently, it
is necessary that NATWEST company should hire capable and skilled team members in
this department because if they will not have any knowledge about market then they will
not be able to collect relevant and important information about the taste and preferences
of customers ( Business environment, 2017). And then organisation will not be able to
design products or services as per requirements which will create hurdles in the success
of company.
From the above discussion, it can be said that for getting desired result or outcome, it is
necessary that NATWEST organisation should focus on above mentioned functions so that it can
reach to its decided destination within stipulated period of time.
NATWEST company follows following given organisation structure which helps in
managing all tasks in an effective and efficient manner-
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(Source: ORGANIZATIONAL CHART AND GROUP STRUCTURE, 2012)
TESCO company follows tall structure which are given below-
(Source: Dudovskiy, 2017)
CONCLUSION
From the above report, it has been said that before implementing any kind of strategy, it
is necessary that organisation should evaluate business environment so that desired result can be
obtained within specified period of time. There are various types of enterprise which have
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Figure 2: ORGANIZATIONAL CHART AND GROUP STRUCTURE
Figure 3: Tesco Organizational Structure

different objectives and targets like public company which has main motive to use public funds
in an optimum level so that society will get more benefit. This report has also contained about
various functions which needs to be performed in an effective and efficient manner so that
organisation can reach to its decided destination within stipulated period of time.
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REFERENCES
Books and Journals
Chavis, L.W., Klapper, L.F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Eckardt, M., 2012. The European Private Company: Do we need another 28th private company
law form in the EU? On regulatory competition of corporate law.
Eisenberg, T. and Miller, G.P., 2012. The English versus the American rule on attorney fees: an
empirical study of public company contracts. Cornell L. Rev.. 98. p.327.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Jayeoba, F.I., 2012. NEED-GOAL INTEGRATION AND ORGANISATIONAL TYPES;
IMPLICATION FOR INDUSTRIAL RELATIONS. European Scientific Journal. 8(19).
Klapper, L., Lewin, A. and Delgado, J.M.Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp. 108-
123). Palgrave Macmillan UK.
Klapper, L., Lewin, A. and Delgado, J.M.Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp. 108-
123). Palgrave Macmillan UK.
Krishnan, A., 2013. Culture As a Successor of Quality Initiatives: A Review. International
Journal of Social Science. 2(1). p.53.
Love, V.J., 2011. Private company accounting: A concept whose time has come. The CPA
Journal. 81(2). p.16.
Macdonald, R., 2012. Unilever. A Strategic Analysis.
Online
Business environment. 2017. [Online]. Available through:
<http://www.investorwords.com/19252/business_environment.html>. [Accessed on
26th September 2017].
Dudovskiy, J., 2017. Tesco Organizational Structure. [Online]. Available through:
<https://research-methodology.net/tesco-organizational-structure/>. [Accessed on 26th
September 2017].
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