Report on the Business Environment of Merrill Lynch Investment Firm

This report provides a comprehensive analysis of Merrill Lynch's business environment, examining various organizational types, including private, public, and voluntary organizations. It explores Merrill Lynch's purpose, legal structure, and business objectives, comparing it with other organizational structures like sole proprietorships, limited companies, and partnerships. The report delves into the interrelationship between different business functions and organizational structures. It applies PESTLE analysis to evaluate the external business environment and utilizes SWOT analysis to assess internal strengths and weaknesses in relation to macro factors. The report aims to provide insights into the factors influencing Merrill Lynch's strategic decisions and overall performance, considering its vision, mission, and scope within the financial services industry. The report also considers the scope and size of various organizations like small, medium and micro businesses.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Various types of organisation along with this size and scope ....................................................1
TASK 2............................................................................................................................................6
Relationship between different kinds of business function and its relation with organisational
structure ......................................................................................................................................6
TASK 3............................................................................................................................................8
Usage of PESTLE analysis to evaluate external business environment.....................................8
TASK 4..........................................................................................................................................11
Application of SWOT and explain its interrelatedness macro factors ....................................11
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The environment of an organisation is sum total of all condition, events, influences that
surrounds and directly affect over its decision making capability in order to achieve business
goal or objective in an effective and efficient manner. However, business environment means it
is a combination of internal and external factor which impact company's ability to create and
maintain successful customer relation in an impressive and productive way. Along with this,
within an industry there are different types of organisation which contain unique set of roles and
responsibilities as well as structure which lead them to accomplish their pre determined goal in a
better way (Aithal, 2016). For this report, Merrill Lynch Investment has been considered which
is one of the leading financial service firm in UK and it is commenced in the year of 1914. It
deals into wide range of products like commercial banking, personal financial service etc. and
serve its function all over the world. However, this study involves several sort of organisation as
well as its scope, legal structure, purpose, interrelationship among various functional areas of
company. Moreover, implication of appropriate models or theories for evaluating internal and
external business environment. Finally, interlink of strength and weakness with macro factors for
analysing the firm's potentiality in attaining high proficiency ratio.
TASK 1
Various types of organisation along with this size and scope
Every organisation is surrounded with several kinds of situation, forces and factors which
directly influence over its decision making capability in order to achieve business goal or
objective in an efficacious and prompt manner. Along with this, each establishment is classified
into various categories and each of them has its own aim, size, scope which makes them different
from each other. In addition to this, the foremost types of organisation are profit and non- profit
firm. However, from this perceptive, it has been evident that profit is not only the intention or
purpose of every establishment existence within marketplace but rather they also dedicated to
serve community in order to improve their living standard in a better way (Bah and Fang, 2015).
Moreover, the different type of organisation are as follows:
Private
This is come under those category where company are limited with shares and are not
allowed to trade their share on a stock market. Moreover, such sort of companies are mainly
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centring over obtaining profit maximisation with an optimal utilisation of resources. However,
Merrill Lynch Investment is a private company which is incorporated in the year of 1941 and
headquartered at New York, US.
Purpose
The primal intent of Merrill Lynch is to become the leading competitor in global financial
service industry by making use of available opportunity and also by adopting risk allotment
structure. Moreover, they makes an initiative to analyse the marketplace situation and based on
that take corrective course of action in order to gain competitive advantage (Bashir and Verma,
2017).
Legal Structure
Sole Proprietorship: In such type of business, all the operation and functional area of
establishment are governed and controlled by an individual who reports the profit on a personal
income tax return. Some of its benefits and drawbacks are as follows:
Advantages
 It is considered as one of the easiest and cheaper way of starting a business as well as it
allows an owner to have full authority over firm decision making process for achieving
organisational pre determined goal in an effective way.
Disadvantages As a sole person is responsible for whole business procedure it puts a burden of unlimited
liability which influence company's capability in acquiring increased level of profitability
and productivity
Limited Company: Under this, firm is considered as a legally distinct body and also
contain separate finances that shows that that they have limited liability. In addition to this,
shareholders or owners are not personally oblige for any losses or debits which occurs within an
establishment.
Merits
 One of the foremost advantage which limited company impose is that it contain restricted
number of liability which gives owner to make use of available growth platforms that
enhance its proficiency rate (Belás and et,. al., 2015).
Demerit
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 In Limited firm, possessor face many difficulties in raising the fund because in this
members are very few in numbers so the amount which will be invested by them will also
be in constricted.
Partnership: This business structure is formed by two or more individuals who makes an
agreement to share all roles, responsibilities, profit and loss in an equal manner for an
accomplishment of desired objective or aim in a better manner within prescribed time limit.
Benefits
 Under this, the integral advantage which a proprietor gains is that the sharing of work and
risk among each other in a equal manner which helps them to maintain a better working
culture inside an enterprise (Deasy and et. al., 2016).
Drawbacks
 As the firm does not contain separate legal entity which impact partners in negative as
they are personally liable for all debt and loss incur in establishment premises.
Public
This kind of company are very much subjected to greater control and supervision of
business function in an effective mode. Along with this, they are allow to offer or trade its shares
to public through different techniques like prospectus and many more. Additionally, Bank of
England is viewed as one of the well known public firm within UK marketplace as it is
established in the year of 1694.
Purpose
The integral aim of Bank of England is to build and generate an impressive relationship
with communities and clients which lead them to maintain its monetary and financial stability
among competing industry.
Legal Structure
Local government: It is a form of public administration as they exercise power or
authority through representative council who are established by law within defined area.
Central government: It is concern with those group of national authorise who are
obliged to govern or monitor the entire process or function of a nation. However, in order to
mange the process , they acquire the fund from public in the form of tax (Epifanova and et. al.,
2015).
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State government: It is a form of federal government in which all activity are monitored
and controlled by central governance. Moreover, its main role is to promote the state economy
for enhancing the living standard of community or society.
Voluntary
This type of enterprise's main focal point is to enhance or enrich the life status of society
or individual by making an attempt to identify the need or demand of each personnel and
initiating projects to provide increased level of satisfaction in a better manner. Furthermore,
Small Charity Coalition has been taken for understanding the concept of voluntary firm which is
introduced in the year of 2008 with an aim of serving group of individuals in an ethical way
(Erasmus, Strydom and Rudansky-Kloppers, eds., 2016).
Purpose
The purpose behind Small Charity Coalition is to render equal opportunity to every group
of personnel in terms of gender, caste, religion, race and recognise their role within community
by responding towards their demands or needs in an effective style.
Legal Structure
Trust: It is a fiduciary arrangements in which trustee give sufficient amount of funds for
the well-being of needy individual or client an impressive manner.
Unincorporated Association: This formation contains a group of people who come
together to achieve common interest i.e. to improve the social cause and consequences in an
equal and ethical style (Evans and et. al., 2017).
There are various kind of business organisations such as small, medium and micro which are
different from each other because of their purpose, size, scope and other basis. Here are define
below the detail difference between these organisations:
Basis Medium-size Organisation Small Organisation Micro enterprise
Purpose The main purpose of this kind
of business is to earn that
much profit which will help
them to compete their
competitors.
Small businesses are
operating their business
activities for satisfying
the needs of customers
and to earn profit on
daily basis.
The main aim of this
business is to provide
employment
opportunities and
develop the backward
areas.
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Market share They are conducting their
business activities large scale
as compare to small or micro
business due to which they are
able to earn higher profit in
their business.
As they are operating
their activities at a very
small scale due to
which they are not able
to cover a big market
place as compare to
medium size business.
This business is able
to cover a small part
of the market as they
are operating their
business at micro
level.
Growth and
Sustainability
They have invested higher
amount of money as compare
to small business which enable
them to take the advantage of
the growth opportunities in the
marketplace.
They are operating their
business operations
only in one area due to
which the growth and
sustainability chance of
this business is very
less.
This business form
also consist little
chances of growth
and sustainability as
because they have
also invested lesser
amount in their
business operations.
Size and scope of various organisations:
Private organisation:- Merrill lynch
Vision: To maintain the healthy relationship with customer by offering the high quality
products so that the large customer base can be developed within the organisation.
Mission: To offer the products according to the customers needs and wants so the interest of the
customers can be maintain (Georgescu and Popescul, 2015).
Business Objectives: The main objective of this firm is to manage the company's position
among all the financial service companies by meeting the requirements and needs of the
customers.
Size: This organisation has 15100 employees and approx 14000 financial advisors in their
organisation who has great contribution in gaining the competitive advantage in the market.
Scope: This business have 2500 outlets by which they are offering investment
management services.
Public Organisation- Bank of England
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Vision: The main vision of this organisation is to motivates the people in order to
increase the interest of them in investing money.
Mission: The mission of this bank is to determine the growth and develop their monetary
resources so that they will be able to pump their capital to the public in form of debt or loans.
Business objectives: The main objective of this business is to make easy the process of
fund transfer and reduce the financial burden.
Size: This bank has almost 5000 employees which are working on hierarchy basis. Other,
it has 80 percent of their capital in the form of electronic deposit.
Scope: The scope of this organisation is wide as their main focus on the creating higher
brand value in form of financial support which enables them to maintain their sustainability for a
longer period of time.
Voluntary Organisation:- Small Charities Collection
Vision: The major vision of this company is to encourage health and social welfare. Also,
it develop awareness for financial saving, home and social evolution (Grewal and et. al., 2015).
Mission: The main mission of this association is to make financial strong to poor people
and focus on the development of the society.
Size: They have almost 12000 volunteers which helps them to accomplish their social
welfare goals at a large scale.
Scope: The scope is based on the long term goal to serve the people so that the living
standard of them can be enhanced.
Business objectives: The objective of this firm is to give best possible assistance to the
poor people by creating various channels of social development.
TASK 2
Relationship between different kinds of business function and its relation with organisational
structure
In an establishment, each and every departments are connected with each other in order
to accomplish organisational goal or objective in an effective way. Some of the relationship of
Merrill Lynch's functional area are as follows:
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Marketing and Finance: Both function plays a vital role within firm premises for
achieving business objectives in a better manner (Hair Jr and et. al., 2015). However, Merrill
Lynch marketing function seeks for promoting its products in industry. Hence, for this, finance
departments provide sufficient amount of fund which marketing to enlarge its market growth by
adopting various techniques like personal selling, direct selling, sales promotion and etc. in order
to gain competitive advantage.
Human Resource and Marketing: Under this, Merrill Lynch's human resource section
acquires various tactics to promote the firm product like advertisement via newspaper, social
platform, job fare, campus recruitment and etc. With the help of this, company can capture large
pool of individuals towards their premises that expansion its brand value and its profit margin in
an innovative manner.
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TASK 3
Usage of PESTLE analysis to evaluate external business environment
Every organisation is classified into two categories of environment i.e. internal and
external and each of them are distinguish from each other in terms of regulation, policies,
procedure, roles, authorities, feature and so on (Hillary, 2017). However, external factor are
those which is uncontrollable in nature as it include suppliers, government, customers,
competitors and many more which influence greatly over firm profitability rate. Thus, PESTLE
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analysis is a framework which help an establishment to identify current or emerging trend of
marketplace and according to that implement corrective course of action in order to accomplish
sustainable proficiency ratio among an industry. Thus, Merrill Lynch and Bank of England
implies PESTLE tool within their business premises which are explained below:
Merrill Lynch
Political: In this factor, it comprises taxation policy, budgets, international trade laws,
trade restriction, political stability and so on which influence organisational productivity.
However, in context of Merrill Lynch, due to the introduction of Brexit, company undergoes
with a huge changes in policies of political party which directly impact on its decision making
process. Hence, firm makes an effort to adopts all modification which is imposed by UK
government into their functional areas in an trenchant and economical mode. With the help of
such action, it enable Merrill Lynch to improve the overall performance in aspect of high
productivity and profitability rate ( Kolk, 2016).
Economical: This phase involves inflation rate, GDP, income level, interest ratio,
economic growth and etc. that effect establishment potentiality to achieve its goal or objective.
Moreover, recently UK has suffered with drastic recession period which effect negatively over
Merrill Lynch ability to make best strategic decision in order to survive within an industry.
Therefore, Merril Lynch takes a corrective course of action as they decreases the price of their
product which help them to capture the attention of large number of population towards their
brand as well as aid them to acquire sustainable profitability ratio.
Social: Under this component, it encompasses demographic factors like age, gender,
population growth, employment rates and so on which affect organisation to acquire profit
maximisation. Henceforth, in regard of Merrill Lynch, it faces a intense level of demand from
UK individuals regarding making banking service more comfortable and convenient that
challenged firm to attain high level of profitability. Thus, Merrill Lynch examine the need or
requirement of people and started delivering information about opening account, credit card,
other benefit scheme through online platform which generated positive perception among
personnel towards Merrill Lynch brand. And also enlarge its profit margin in an awful and
cultivable style.
Technological: This factor includes automation, advent of technology, novel techniques
and many more that effect business productivity and proficiency rate. Moreover, in UK there was
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a wide range of requirement among population about latest or modern technologies which makes
their life more easier and fast. Therefore, Merrill Lynch makes an effort to launch advanced
technologies as they create mobile application which render service like accounts, transferring
money, making payments, online banking and etc. With the help of activity, Merrill Lynch were
enable to survive within competing marketplace in an innovational and ingenious style within
prescribed time limit.
Environmental: It is concerned with environmental laws, eco friendly practices,
application to reduce or control pollution which impact on company's ability in decision making
process. Furthermore, UK population were in great demand from banking sector in regard of
making an attempt to protect atmosphere more healthy and clean, which effect Merrill Lynch to
maintain its brand value among marketplace. Thus, company design its majority of the service
vis online which help them to control over the usage of paper and also to decrease the customer
footprint to bank. Moreover, it enable firm to enlarge their market size or share in a better
manner.
Legal: This factor involves legislation, regulation, laws, polices which govern
organisational performance within competing industry. In context of Merrill Lynch, they makes
an effort to comply with all standard and rules that assist them to reduce an inference of
government into their business operation or functions (Kozubíková, Homolka and Kristalas,
2017).
Bank of England
Political: It concern with all government polices, procedures or practices which effect
organisation to acquire best position within marketplace. However, In UK, Brexit created a wide
range of uncertainties and political issues which impact negatively on Bank of England
surveillance. Thus, company were highly benefited from stable nature of UK political party
which help Bank of England to make suitable modification within their business functional areas
for obtaining increased level of proficiency.
Economical: Under this, Bank of England faces a major economic recession which
occurred in UK recently and it influence negatively on firm productivity. Henceforth, Bank of
England lowers its price of products which assist them to maintain its brand value during those
drastic time period in a better mode.
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