Business Environment Report: Types, Functions and Interrelation

This report provides an overview of the business environment, focusing on the different types, sizes, and scope of organizations, with a specific emphasis on the UK-based bank, NATWEST. The report explores the distinction between private, public, and voluntary sectors, highlighting their unique roles and objectives. Furthermore, the report delves into the interrelationship of various functions within an organization and how they connect with its structure, using McDonald's and Burger King as examples to illustrate these concepts. The analysis also covers the importance of organizational structure, with a focus on how companies like NATWEST use it to achieve their objectives and respond to the demands of their customers. The report concludes by summarizing the key factors that influence the success of a business within its environment, including the impact of micro and macro factors.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different types, sizes and scope of organizations.......................................................................1
TASK 2............................................................................................................................................3
Interrelationship of various functions within organization and its link with structure...............3
TASK 3 & 4.....................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment is a term which shows the influence of micro and macro factors on
business operations because of their roles and responsibilities towards development of world
economy. Environment is dynamic in nature which influence the corporate world in both positive
as well as negative manner. Therefore, manager of a company is responsible for managing
available resources in an appropriate manner (Cantwell, Dunning and Lundan, 2010).
NATWEST is a private owned bank based in UK that is chosen in the present report whose main
responsibility is to provide financial support to other entities so that they can run their business
properly. Various types, sizes and scope of different organisations will be discussed in the report.
Along with this, interrelationship of various functions within organization and its link with
structure will be highlighted.
TASK 1
Different types, sizes and scope of organizations
There are number of entities which are present in a corporate world with different motive
and differentiate from others because of their roles and responsibilities towards society. For
example: few enterprises believe in maximizing their profit whereas some other institutions just
want to uplift the standard of entire society by implementing various impressive programmes
(Commander and Svejnar, 2011). NATWEST is a private owned bank by having worldwide
connection and almost 4400 offices at international level whose main aim is to provide loan to
small, medium and large organizations so that they can run their business in a smooth manner.
Therefore, various types of enterprises are stated as follows:-
Private sector: - It is a part of economy which is also considered as a citizen sector that
means this segment is run or managed by individuals or groups of people for generating
maximum revenue. In fact, it is also controlled by state government but they are also liable for
following rules and regulations which are set by governing bodies
(Czinkota, Ronkainen and Moffett, 2011). In the UK, there are number of private companies
present for example TESCO, Starbucks, McDonald's, Wilkinson, etc. whose main aim is just to
maximize their profit by fulfilling the demand of desired consumers. Furthermore, there are
numerous kinds of organizations present in private sector which are explained as follows:-

 Sole traders: - According to this, an association is controlled and regulated by
individual person because he/she is liable for all the liabilities. In fact in UK
approximately 20 percent sole entrepreneurs in operating in a construction industry,
another 20 are in retailing and around 10% engaged in finance as well as other 10% are
involved in a catering. Thus, it means there are number of business are available which
are having a single owner without any support of shareholders (Eckardt, 2012).
 Partnerships: - Business which is owned and managed by two or multiple partners are
comes under this category. People which are engaged in a partnership business may
share skills, risk, profits and liability between them. In fact it is very common in
professional services for example lawyer, accountants etc.
 Companies: - This organization is fully owned by several of shareholders and hired
board of directors so that they can direct as well as assist them towards their particular
goals and objectives (Eisenberg and Miller, 2012). Basically company is a legal body
which is represented as an institution name and follow separate law which is amended
by legal bodies. Along with this, every organization needs to register with the registrar
of a company and have their official address.
 Franchises:- According to this, franchising team have an authority of granting licence
to another firm in place of sum of money to use their goods and brand name in their
area by using their own idea. For example McDonald's which is seen as a brand
franchise.
Public sector: - It is also plays a very eminent role in a development of economy by
providing government services to general public with the introduction of impressive ideas
(Fernando, 2011). In fact functions of public sector is different from country to country but in
UK services which was offered by this segment are military, police, enhancement in public
properties for example roads, bridges, tunnels, water supply etc. Along with this they might be
offers services which are not chargeable like street lighting which is beneficial for entire society
instead of single individuals. Moreover, public associations are owned and managed by
governing bodies because government wanted to raise the living standard of weaker sections of
society (Gecevska, and et. al., 2010). Additionally, levels of public sector is organized at three
levels that is federal, regional or state and local level which means powers or authority is
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distributed among these three levels. Example of institution which is regulated by government
are electricity board, government schools or colleges, postal services etc.
Voluntary sector:- It is also known as a non-profit enterprises whose main reason behind
establishment is to protect weaker sections of society from any exploitation and try to fulfil the
basic needs of desired public (Halbert and Ingulli, 2011). Another name of this segment is a
tertiary sector as well as non-governmental which means governing bodies are totally away from
charitable institution. Oxfam is a one of leading charitable organization whose main aim is to
serve needed people and try to reduce poverty from entire nation by implementing various
campaigns and programmes of improvement.
All these above organizations are fully different from others as per their roles and
obligations as well as size or motive. NATWEST is expanded across international borders and
provides loans to these enterprises as per their requirement after analysing overall background. In
fact they all are different in size as well as scope due to their roles and responsibilities towards
improvement of general public (Hamilton and Webster, 2015).
TASK 2
Interrelationship of various functions within organization and its link with structure
Every enterprises have distinct purpose and motive behind their establishment as per their
size and objectives. Therefore target of an enterprise is different from their competitors as well as
structure. NATWEST is a very large institution by having almost 77000 employees which is
responsible for providing financial support to various public and private owned companies so
that they can accomplish their business operations in an efficient manner (Harrison, 2011). In
fact there are several number of private and public companies which are trying to acquire loan
from NATWEST bank for completing their projects in a minimum time period. Thus,
McDonald's and burger king are two very popular enterprises in restaurant field which are
serving their customers very tasty, delicious and healthy foods as well as maintain their
organizational environment (Iskanius, Page and Anbuudayasankar, 2010). Hence, to manage or
fulfils demands of customers they really want large amount of capital which is owned by
NATWEST bank by depositing something as a security.
Furthermore, such amount is very supportive for organization in a difficult time or any
disaster. Thus it has been understood that every associations have their own purpose and motive
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behind running their business by designing their structure in their way (Jayeoba, 2012).
Additionally, every employees performing their job role have their own roles and obligation
towards development of a company. Hence, objectives and structure of two competitors are
described as follows:-
Company Objectives Structure
McDonald's First and foremost motive of this enterprise
is to offers qualitative goods and services
to foreign as well as domestic clients
because goodwill is one of indispensable
factor for them (Klapper, Lewin and
Delgado, 2011). As McDonald's is proudly
operating their business since nearly 1974
in number of countries. Along with this,
main focus of this organization is offers
products with high standard as well as
instant services so that customers will not
wait for maximum time period and get
their order in a minimum duration
(Functional Organizational Structure,
2017).
Structure is term which shows the
hierarchy of an organization which is
followed by member of entire
association to run their business in
an appropriate manner. Therefore
McDonald's is a very impressive
structure in which every worker of a
company is aware about their roles
and responsibilities towards success
of a company. Moreover, all the
work is classified into proper manner
for minimizing any risk and losses
by satisfying the demand of different
customers.
Burger king Objectives are plans and policies which is
set by management team for proper
working of an association. Burger king is
an American global chain which was
serving since nearly 1953 and popular for
hamburger as well as reasonable meal pack
which may capture attention of millions of
clients (Welford, 2013). They also believe
in offering tasty burger and fast food with
best quality in a minimum time period. In
Burger king believes in following
effective reporting structure in which
they will not compromise with
policies of an organisation by
satisfying demands of customers. As
per this managerial team trying to
manufacture goods with high quality
in minimum cost by attaining long
term and short term mission. Their
main aim is to motivate employees
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fact they are having its branches across
international borders by expanding their
menu.
towards their personal and
professional objectives (business
environment, 2017).
NATWEST is trying to measure the goals of customers and relate it with SMART
objectives. Therefore, they get aware about the requirement of companies so that they can
implement effective decision making process (Siewiorek and et. al., 2012). It is not easy to
manage large projects and enterprise because it requires maximum amount of capital for proper
functioning of entire association. Their main aim is to fulfil the demands of customers by
utilising all the resources in an efficient manner. Thus, NATWEST bank plays a significant role
in providing monetary support so that every department of compared organisation accomplished
their mission in given time frame (PESTLE, 2017).
(Source:- Functional Organizational Structure, 2017)
As per the above graphical representation, it has been understood that structure of
company is described in a hierarchy form and powers are distributed among them to manage all
the tasks within minimum time period.
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Illustration 1: Organizational structure

TASK 3 & 4
Covered in PPT
CONCLUSION
From the above report, it can be summarized that environment plays an eminent role in
attaining goals and objectives of an enterprise by determining all factors which are essential for
the success of a company. Initially, it defines several types of associations and their motive in
world economy. Additionally, report highlighted PESTEL analysis by which a cited enterprise
come to know about hidden barriers and obstacles which create problem in success of a
company. Furthermore, assignment is all about different type of sectors which is segmented in
corporate world for uplifting the overall society. Apart from this it also shows impact of micro
and macro factors on success of an enterprise.
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REFERENCES
Books and Journals
Cantwell, J., Dunning, J. H and Lundan, S. M., 2010. An evolutionary approach to understanding
international business activity: The co-evolution of MNEs and the institutional
environment. Journal of International Business Studies. 41(4). pp.567-586.
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.
Czinkota, M., Ronkainen, I. A. and Moffett, M. H., 2011. International business. Wiley.
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.
Fernando, A. C., 2011. Business environment. Pearson Education India.
Gecevska, V. and et. al., 2010. Product lifecycle management through innovative and
competitive business environment. Journal of Industrial Engineering and Management.
3(2). pp.323-336.
Halbert, T and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Harrison, R., 2011. Learning and development. Development and Learning in Organizations: An
International Journal. 26(1).
Iskanius, P., Page, T and Anbuudayasankar, S. P., 2010. The traditional industry sector in the
changing business environment–a case study of the Finnish steel product industry.
International Journal of Electronic Customer Relationship Management. 4(4). pp.395-
414.
Jayeoba, F. I., 2012. NEED-GOAL INTEGRATION AND ORGANISATIONAL TYPES;
IMPLICATION FOR INDUSTRIAL RELATIONS. European Scientific Journal. 8(19).
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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.
Siewiorek, A and et. al., 2012. Learning leadership skills in a simulated business environment.
Computers & Education. 58(1). pp.121-135.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Online
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<http://www.investorwords.com/19252/business_environment.html>. [Accessed on 13th
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PESTLE. 2017. [Online]. Available through: <https://business-docs.co.uk/downloads/pestle-
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September]
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