Business and the Business Environment: Report and Analysis

This report provides a comprehensive analysis of the business environment, focusing on different types of organizations including private, public, and voluntary sectors. It examines the purposes and objectives of these organizations, highlighting their operational differences and legal structures. The report uses Barclays Bank as a case study, exploring its functions, size, and scope within the financial services industry. It delves into the relationships between various organizational functions and analyzes the positive and negative impacts of the macro environment on business operations. Furthermore, the report conducts an internal and external analysis of Barclays Bank, identifying its strengths and weaknesses and how they interrelate with external macro factors. The report concludes by summarizing key findings and providing references to support the analysis, offering valuable insights into the complexities of the business environment.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1...........................................................................................................................................1
P1 Different types and purposes of organisations.......................................................................1
P2 Size and Scope of a range of various kinds of organisations.................................................4
TASK 2............................................................................................................................................6
P3 Relationship among various functions of an organisation which are interrelated with each
other.............................................................................................................................................6
TASK 3............................................................................................................................................8
P4 Positive and negative affects the macro environment has upon business operations............8
TASK 4..........................................................................................................................................11
P5 External and internal analysis of strengths and weaknesses of an organisation..................11
P6 Strengths and weaknesses interrelate with external macro factors......................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
.......................................................................................................................................................15

INTRODUCTION
Business environment refers to the collection of firms, people and some many other
factors which can and can not be under control of a company. In business environment internal
as well as external environment are included. These both factors can be impacted on the growth,
profitability and also survival of an organisation. There are different kinds of business firm
which runs and manages its various kinds of environment (Aterido, Hallward-Driemeier and
Pagés, 2011). It is an effective and efficient part of business management. Barclays is British
financial services and also a multinational bank. This bank has around 4,400 offices in all over
the world. It provides wide range of financial services to people in which involves investment
banking, commercial banking, financial products etc. Under this present business report
mentions about the various kinds of organisations and also their purposes. There is also
discussion regarding the relationship among various functions of an organisation. An external
and internal analysis of Barclays bank in context to determine its strengths and also weaknesses
given below in this report. In this given present business report also mentions regarding the
weaknesses and also strengths which are interrelated with the external macro factors.
TASK 1
P1 Different types and purposes of organisations
Each and every business firm is having the various kinds of purposes and also objectives
and their main aim is to accomplishing them while situating at the market place. There are many
different kinds of business organisations which operates its businesses for the purpose of earning
more profit through performing different kinds of functions and these firms also tries to fulfil the
needs and wants of customers in a proper manner (Bryman and Bell, 2015). But the motive of
every company is different from each other. There are various kinds of business firms which are
existing at the market place and these are private, public and also voluntary organisations. There
are some difference among these three sectors:
Basis for comparison Profit Organisation Non- Profit
Organisation
NGO
Meaning These organisations
operates their business
It operates its business
for the purpose of
It operates it business
for providing the
1

for earning the profit. serving the whole
society or satisfy their
needs.
goods and also
services to the
customers and it works
for the welfare of
society.
Motive To earn profit Providing beneficial
and effective services
to customers.
Its main motive is to
promote science,
commerce, research
and any other useful
things.
Area of Operations It can be limited and
large.
Limited Large
The purposes of these three organisation are given below as above:
Private Organisation- It is that type of sector which main aim is to earning the more and
more profit by satisfying needs and demands of consumers in an effective and also proper
manner. In these recent years, there are different business organisations which expand their
business internationally in order to earning more profit (Carroll and Shabana, 2010). These kinds
of organisations are fully allowed that these can issue their shares but these all shares private
firm can not trade in the public. In United Kingdom country, there are various private firm an
they produce the goods on the basis of customers tastes and needs. On this sector, there is no role
of government.
ASDA is a private business organisation in United Kingdom country. This firm deals in
the retail sector and this firm was established in year 1965. It provides its good quality of
products and services at the market place and it has around 32 million consumers in all over the
world. The main objective of this company is to offer or provide the best value of Britain to
customers with the reasonable cost as comparison to its competitors. This firms provides many
effective services or facilities to its customers like mobile phone services, financial facilities etc.
It conducts its promotional schemes at the large scale so that every person cam aware from the
services and also products of this firm. In this company more than 1,80,000 staff members are
2

working and they are fully skills and capable. It is the duty of this firm to take care the safety and
also security of its staff members. It conducts the research and development programme for
making its business process better than its other competitors. Purposes of this sectors mentions
below:
 Its main purpose to earn more profit and also increase its market share of
company.
 It works on increasing its development and also productivity by increase its profit
level.
 The main objective of privation organisations to produce only those products and
also services which people can easily afford.
Legal structure of Private Organisation:
Sole Proprietorship- In this, a single person owned and also run a business firm. If there
is any kind of risk involved in business, that single person is reprehensible to bear that full risk.
In this there is no needs to share its profit and loss with any other. The income which is
generated from this business are to be regarded as a personal income.
Partnership- Under this two and more than two people are involved in conducting a
business together. Under this profit and loss both shared among these people.
Private limited companies- It is that kind of company which operates its business
privately. Under this liability of members is limited. But in this hares can not be traded publicly.
Public Organisations- These kinds of business firms are owned and also managed
through the Local along with the Central government (Charter, 2017). It is regarded as a part of
an economy which gives the various kinds of government services to the people. These
organisations plays a necessary role in context to accomplishing the goals and also aims in an
effective and also proper manner. Minimum number of persons can start this kind of
organisation, minimum seven or maximum unlimited.
Barclays bank is a public bank and it also provides financial services. It operates its
business more than 40 countries ad this bank has around 120000 staff members. Purposes of
public organisation given below as above:
 The main motive of this Barclays Bank is to provide financial services.
 The public sector gives its contribution in development of some backward areas.
 It always works for the goodwill of company.
3

 Barclays Bank works in enhancing the productivity and also growth rate of United
Kingdom.
Legal structure of Public Sector:
State government- It is separate institutional units which provides help in government
functions. Under thins all those departs are involves which are regarded to central, state agencies
etc.
Local government- Under this all the public administration are included and its main aim
cover Untied Kingdom local part so that economy of this country can be enhanced.
Central government- In this administrative department which is concerned to the central
and state government consists.
Voluntary sector- It is that kind of association under which people or group of people
are included in to voluntarily agreements in order to achieve common objectives and targets.
Generally this sector works for the development of socio economic of United Kingdom.
Oxfam is a voluntary organisation and it is an international confederation charitable
company and its main focus on the alleviation of the global poverty (Chesbrough, 2010).
Purposes of this sector mentions below:
 Main purpose is to work for improving society.
 Promotes volunteering and give some contribution towards the welfare of society.
P2 Size and Scope of a range of various kinds of organisations
In this present time period, the market is so competitive, so in context to this it is
necessary that firms should conduct their business and also perform their functions in an
effective and legal way. In this business environment, busies firms are segmented in to the three
parts and these are small, medium and also large. The size of every firm is varied from the each
other. The small size business firms generally deals at the local level at market place where as
medium size firms concerned to the state level. The large size firms operates and also managed
its business at the national along with the international level.
In some of the business firm only 11 staff members are working but some companies
have more than 30000 staff members (Commander and Svejnar, 2011). It is only depend on the
size of firm. The size and also scope of three sectors or organisations are given below as above:
Private Sector- It consist those business firms whose main objective is to earn more profit. It is
regarded as the most necessary part of United Kingdom economy and it is helpful in generating
4

the more revenue or also profit through performing different function at the national as well as
international level. The scope and also size of sector is based on the business firm.
Size of ASDA Company- It is a private firm and the size of this company is large. Under
this more than 180000 staff members are working for achieving its common goals and also
objectives. The operating income of this firm is £1 billion. It deals in general mechanise,
providing financial services and also grocery products (Craig and Campbell, 2012). ASDA firm
has more than 61 supermarkets.
Scope- ASDA company deals in the grocery market along with provides financial
services. It covered large market share in United Kingdom country. Other scopes of this sector
give below as above:
 Single person can operated and managed private organisations.
 In establish a business, there is a need of minimum 2 and maximum unlimited.
Stakeholders- They plays a necessary role in an organisation. They give their
contribution in the activities and also operations of an organisation. The main stakeholders of
ASDA firm are customers, suppliers, shareholders, investors etc. But the role of every
stakeholder is varied from each other. With out the help of stakeholders, firm can not conducts
its business in an effective and also proper manner. There are some objectives of private
organisations given below as above:
 Increase businesses.
 Do Corporate Social Responsibility (CSR) for welfare of society.
 Give good quality of products and also services.
Public sector- The scope and also size of this sector is based on the kind of business firm
(Drucker, 2017). This sector mainly work for the goodwill and also welfare of society or people
of society. Barclays is a international British Bank. It operates its business at the large scale.
Size of Barclays Bank- In this company more than 120000 staff members are working
and it operates it business in over 40 different countries. This bank established in year 1690. in
deals in providing the financial as well as banking services.
Scope of Public sector:
 There will be need of licence and also government permission in order to running
a business legally.
 To incorporate a new business, there will be requirement of more funds.
5

Stakeholders- There are many different stakeholders of this company like government,
staff members, shareholders etc. But the main and important stakeholder of Barclays Bank is
government from which the activities of this bank can be impacted (Fernando, 2011).
Some objectives of Barclays Banks mentions below:
 To provide financial help.
 TO became a leading bank.
Voluntary Sector- It is a NGO (Non- government organisations). It provides the benefits to
people. Oxfam is a voluntary organisation and it is an international charitable organisation. The
main focus of this company is on the alleviation related to the global poverty.
Size- It is a large size organisation and this company works with the more than 1000 local
partners which works on the human rights.
There are some objectives of this company given below as above:
 It main objective is to alleviation of the global poverty.
 Work for goodwill of people.
TASK 2
P3 Relationship among various functions of an organisation which are interrelated with each
other
There are many different kinds of function which are performed in a business firm and
these all functions of a company are interrelated with the aims and goals of business
organisation. In all the functions of an organisation includes all those activities which are helpful
in accomplishing aims and goals in an effective or specific period of time. The many different
functions of Barclays firms are Human Resource, marketing, finance, operations, Research and
Development etc. Barclays Bank perform its all these functions in an effective and also proper
manner (Hamilton and Webster, 2015). These all function works for achieving the common
goals and also objectives of firm. From it, the growth rate and market share of this bank is more
than any other bank. For the purpose of enhancing sales, an organisational structure is very
helpful which asses managers and also staff members to perform their duties and also
responsibilities in an effective or proper manner. The main objectives of business are enhancing
sales, profit level, survival, satisfy the needs and also wants of customers. There are some
interrelationship of functions of company with its all functions mentions below as above:
6

Marketing- This function of Barclays Bank plays an important role in increasing the
sales and revenue. It helps in enhancing the value of goods at the market place along with
accomplishing the target in competitive market. But this function work with the operation
function,. With out this, it do not perform in a better way. Managers can attract large number of
consumers with the help of this marketing function (Klapper, Lewin and Delgado, 2011). It
conducts promotional; activities to aware people about the services of banks. It is helpful in
developing the positive brand image in market.
Human Resource- This function is necessary in every organisation and it works on all
levels. The HR manager of Barclays Bank make coordination among the staff members. This
person manage all the activities of company and motivate its staff members so that they all can
work for achieving the common aims and also objectives. This function gives its suggestions to
its staff members regarding their work and also performance level. It is also helpful in defining
the various roles and responsibilities of an organisation.
Finance- This function of Barclays Bank provides the details and information regarding
the money related transactions on the regular basis. This functions also arranges money for the
activities of business. It also helps in promoting the business at large scale. The creditors and
investors plays a necessary role in business.
Operations- It is a main function and it main work is to producing the goods and also
providing services on the basis of demands or needs of customers. All other functions of this
company work with this function on common aim.
Research and Development- It is very effective function of this firm and this bank
conducts a research programme to know about the marketing strategies, existing services, strong
competitors etc. With the help of this, Barclays Bank can perform its business related activities
in an effective manner (Osterwalder and Pigneur, 2010). It will also helps in increasing growth
rate of bank.
The four kinds of organisational structure given below as above:
Function based- It is most common structure. In this the positions of employees are
according to the kind of work. The common functions are Human Resource, marketing, Finance
and also operations. They are separated from each other.
7

Geography based- For a business firm, it covers the span of the geographic region nut
most of the times it makes some sense to organise through a region. Basically this type of
structure is organised through the geographical regions.
Product Organisational structure- This kind of structure is organized through
particular product type. The product or services which Barclays Bank provides the financial
services. Every kind of goods and services group falls with the destruct of reporting.
Customer based structure- Some of the business organized through the types of
consumers. The main focus of cited firm is on satisfying the needs of its consumers by providing
them effective services (Scheer, 2012). The main benefit of this structure is that it is expert in
needs of every consumer group.
TASK 3
P4 Positive and negative affects the macro environment has upon business operations
In the business environment, there are two main factors are included which are always
present and these can impact on the business functions and activities of an organisation. These
factors are divided in to two parts internal and external environment. In internal environment
those factors are included which can impact on business internally. On the other hand, external
environment includes those factors which can impact on the business from outside factors. In
context to this, it is necessary for the manager of Barclays Bank firm to reduce all impacts of
these two factors. So, from this the business operations and its activities will be performed in an
effective and efficient manner. The PESTLE Analysis of Barclays Bank given below as above:
Political factors- In this, United Kingdom government develops some ]of the effective
policies and also policies in an effective manner. It is the responsibility of company to conduct
its business by following government rules and regulations (Shigang, 2010). The government
stability is one of the main factor which can impact on the business activities and also its
performance level. It is necessary that government should give their support to the business. So
that they can conduct its business activities in an effective and proper manner.
The positive impacts of this factor are:
 the stability of government
 Effective policies which are beneficial for business.
Negative impacts:
8

 Instability of government.
 Regularly change in government policies, tax rates etc.
Economical factor- An uncertainty and also economic risk of United Kingdom which
exist from the European poses to a challenge to many different banks including the Barclays. In
this factors includes inflation, unemployment rate, economic condition of country. These all
factors can develop the negative and also positive impacts on business (Teece, 2010). The
Barclays firm conducts its business activities for enhancing the profit level.
Positive impacts
 High purchasing power of customers.
 Expansion of business activities.
Negative impacts
 Enhancement in loan rates.
 Reduction in economic growth of country.
Social factors- In this includes change in lifestyle, social mobility, demographics, labour
etc. Ageing population is of the demographic change which can impact on the Barclays business
in the market of United States and United Kingdom. So, in context to this it is necessary to this
firm to analyse these all factors for minimising affect (Trkman, 2010). It is necessary that firm
should produce its goods and also services on the basis of tastes of customers.
Positive impact
 Increase in disposable market of the operational geography.
 In case if Barclays firm implement CSR activities.
Negative impacts
 If firm will not implement CSR related activities in an effective manner then it
will develop negative impact on business.
 In case if firm will not upgrade its infrastructure.
Technological impacts- It is necessary for every company to use new technology in its
business for increasing the performance of business. It is the duty of manager to upgrade its
technology and also use those technology which can develop the positive impacts in the mind of
customers.
Positive impacts
9