Business Environment Analysis Report: Yorkshire Bank and Macro Factors

This report provides a comprehensive analysis of the business environment, focusing on Yorkshire Bank. It begins with an introduction to the business environment and different types of organizations, including public, private, and voluntary sectors, highlighting their structures, objectives, and scopes. The report then delves into key business functions and their interrelations, discussing organizational structures like line and functional structures. A significant portion of the report is dedicated to PESTLE and SWOT analyses of Yorkshire Bank, examining the impact of macro and micro factors on the bank's operations and external relationships. The interrelationship between these factors is also explored. The report concludes with an overview of the findings and references used.

BUSINESS AND THE
BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Diverse Kind of organizations ...................................................................................................3
TASK 2............................................................................................................................................7
Key business function and their inter-relation ..........................................................................7
TASK 3..........................................................................................................................................11
Pestle analysis of YORKSHIRE bank and its impact on organisation.....................................11
TASK 4..........................................................................................................................................14
Swot analysis of YORKSHIRE bank and their external relationship with macro factors.......14
Explaining the interrelationship of the macro and micro factors that are affecting
YORKSHIRE bank...................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business environment comprises all the internal and external factor that affect an
organization's function and decision making, directly and indirectly. Internal factor is
manageable by business where external factor is inevitable in nature. Manager can minimize the
negative affect of macro elements by taking precautionary measure and actions. YORKSHIRE
is a private bank which render all the financial and banking service like saving accounts facility,
loans, insurance and mortgage credit card facility. Online, net, telephone, ATM and post office
services also given by to its target customer. Present study will describe kind of organisation and
interrelation between various business units, which collectively aimed to achieve organisation
goal. Report will cover the knowledge of impact, that macro and micro factor put upon business.
YORKSHIRE banks External (PESTLE) and internal (SWOT) will also be done.
TASK 1
Diverse Kind of organizations
Organisations are dissimilar from each other because of their different structure, purpose,
serving area, size, specialisation, environment, and culture.
Public organisation
Business entity which get its funding from government and operates by state are called
public organisations. Revenue of company's are generally invested for public welfare,
infrastructure, and other capital project (Effiom, Kwabena and Precious,2015). Statutory
corporation come into existence by low enacted by parliament and state legislatures. They deal
majorly in primary sector. BBC is one of the largest public sector broadcast service provider in
UK.
Advantage
 Easy to get fund and finance as people trust government.
 Great opportunity for growth and expansion as it has government support and sound
financial position.
Disadvantage
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 Business demand more legal compliance to follow as protection of shareholder also a
prime concern.
 Company need to render high transparency in all the detail and information as its data
and reports as to put on public domain.
Private company
It covers all the Firm, whose prime concern is to get high profit and retain earning. It has
to register itself under The Companies Act 2006. It has to pay corporate on total income. This is
most popular business form currently uses in UK because in case of financial loss, repayment to
creditor is limited to company only. Members do not have to sell out their own asset for this.
They are more interested in primary and tertiary economic pillars. Morrison supermarket plc is a
private firm. Advantage of private organisation are, It has legal entity as it is register in company
act, which Added credibility. This creditworthiness helps in raise fund from capital and money
market. And its certain problems too which are Private business entities have to pay certain
annual fees, which enhances the obligation burden in case of bad profits. Some business
activities and operation render tax benefits and subject to comparatively lower corporation tax.
Private organisation can be divided into two major categories on the basis of ownership as sole
proprietor and partnership. Morrison supermarket plc is one of the large private organisation in
UK.
In sole proprietor, an individual can open its business, operates it's all activities by own or
by employing people in firm. This individual is solely accountable to any kind of loss. It is not
required to register personal business in company act, but it should have HMRC (Her Majesty's
Revenue and Customs) registration number for self Assessment along with national insurance
number(NI). HMRC collects income tax on it's earning (Aryati and et.al., 2018.). Generally it
works in secondary (manufacturing, construction and engineering sector) and tertiary (education,
business consultants, hospitality industry and computer programming services). Sole properties
firms Easy to start and operate. Easy to control, fast decision making and lower accounting cost
as one can maintain account by own without taking help of professionals. Problem in raise fund
as larger lenders have lack of trust on these. It is considered as small and week establishment
because large company viewed as more credible and professional in approach. Tessa Scott
recently owned a cupcake business as individual business.
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Partnership is same as sole proprietor but it has only difference that here two and more
than two people are owner of the firm. Profit being shared among these, which considerer as
their income. Each has to pay income tax on their income. Arrangement of capital are done
though self finance only (Besley, 2015). It also, divided into three kinds as 'ordinary, limited and
limited liability partnerships(LLP). These business works in secondary and tertiary sector. They
also, have partnership with government for primary sector activities (mining, agriculture,
infrastructure and natural resources' industry). Render good decision making as brainstorming is
performed by more than one person. Business as a whole does not need to pay tax on its profit,
as individual has to pay on their income. High potentiality to arrange money than individual
business with limited shared of profits. It has High chances of interpersonal conflicts which can
lower the decision making speed. When a partner leave and join the company, valuation is done
again and again. And, it a costly process. Jamie's Plumbing is partnership firm owned by Smith
and Jamie Johnson. It renders plumping and kitchen, toilet fitting and repairing facility to its
customer
Voluntary organisation
It's second name is community sector and third sector. These companies are neither
having profit generational objective nor they are funded by government. Also, they have less
capital in hand (Kolk,2016). These firm render social care and welfare services like free
education, medical, law consultation. Charitable trust, foundations , NGO's, and cooperatives are
comes under this. Red Cross is one of the biggest voluntary firm in UK, which service medical
care for free and required essential service like food, water, medicines, blood in emergency
situations.
Advantage
 As it has volunteers in human capital and grants in material, organisation has less
overhead charges.
Disadvantage
 It is difficult task to avail fund and volunteers to run business seamlessly.
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There is direct relation can be seen in organisation objective, scope and size with its goal.
When a business works for social causes it does not take make for growth and expansion, which
required less money requirements. It can manage its capital arrangements from grants and
donation. These companies do not take care about public money interest. Government gives
option to this voluntary organisation use minimum legal structure.
A large size organisation need more money for working capital and growth and
expansion. In such case they will go for public offering (Lee and Klassen,2016). Government
instructs these organisations to follow well defined legal structure. Big size enterprises need wide
legal structure as they have to control wider area of function and vice versa.
Scope means business expansion, diversification and growth potentiality of firm, which
highly depend on financial position. Week position is threatened to scope and vice versa. Legal
structure depends on size of the firm and pre decided legal compliance for company. Following
table shows the objective, scope and legal structure complexity in three kinds of firms.
Dimension Pubic Private Voluntary
Objective BBC 's vision is committed to
fulfil public value written on
Royal charter and agreement.
It also tries to be most creative
broadcast service organisation
in the world.
Profit maximization and
increase business capacity.
YORKSHIRE bank's All
branches strive to render real
value to customer, for their
relation with bank. It also
deigned various product as per
the need of customer to help
them in saving.
Social welfare and earn
only required money. Red
cross's Fundamental
principle also convey its
purpose and vision, they are:
voluntary service
impartiality, independence,
humanity, unity, and
neutrality universality in
society.
Size Large size organization which
run its business In domestic
country only. (BBC) but these
organisations can further
enlarge their size as well as
They are Large size company
who also interested in set up
the business in multiple
countries(YORKSHIRE).
There are small private
Small and large size
organization like Red Cross
and NHS. Though Red
Cross currently working in
190 countries, which
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product line, when it acquired
the needed capacity. BBC
nowadays become a
globalised organisation.
company are too, who perform
business in domestic country
only.(Hakim Group)
remove the general
assumption of limited scope
of voluntary Firms.
Scope High to medium scope
potentiality. Public sector
expand its market by going
threw merger, acquisition ,
joint venture and. BBC not
only expand its working area,
it now successfully enter in
different digital services like
radio and online services.
High to low possibility of
expansion. Private firms
mostly chooses franchises
option, when they want to
expand within domestic
boundaries (Maclachlan and
Joye, 2017). Joint ventures, are
done for enter in new market.
YORKSHIRE bank's also
enlarge its product basket like
saving account, mutual fund
and other financial service.
Medium to Low capacity to
expand. They also use joint
venture and merger.
Legal structure Public company
(Departmental undertakings,
Public corporations,
Government company, and
statutory corporations) and
Partnership with private
company (PPP model)
Sole proprietor, partnership,
limited liability
partnership(LLP)
A Trust and Limited
Company. Trust are made
for clear purpose (here,
social welfare). It develops
formal relation between
stakeholder I.e. trustee,
donor and beneficiaries.
TASK 2
Key business function and their inter-relation
An organisation chose organisational structure as per its size and requirement. For
instance, large size firm use functional structure small size can reply on line structure.
Line organisation
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It is traditional and simplest form of authority, in which flow of information and order flows
from top to bottom. Company which is not render specialised service and supportive service are
comes in it. All the department under this, directly comes under the higher authority. Generally
public sector organisation uses this one.
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Illustration 1: Line organisation structure
(Sources: 8 Types of Organisational Structures: their Advantages
and Disadvantages, 2018 )

Functional organisation structure
In this structure authority is delegated to specialised personnel. These head personnel
comes under the main line manager. Unity of command is being ignored to maintain efficiency
the work. This structure are used in organisation which offer specialised service to customer.
Private sector follow the functional structure to maintain its different operation function. Like
Morrison supermarket plc has marketing, finance, human and IT department heads.
(Sources: 8 Types of Organisational Structures: their Advantages
and Disadvantages, 2018)
Business function comprises all the activities, process and function performed by
organization to meet its vision, mission and objectives. These key business operations can be
divided into two classes i.e. core and supportive business activities. Core function works closely
to organization's strategic goal, Where, supportive business activities facilitates aid to smooth
delivery of final goods and service and render help in accomplish the primary activities. These
business function work together for business objective like they produce the standard product,
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Illustration 2: Functional organisation structure

maintain the quality, innovation, put their efforts to increase sale, marketing research, develop
technological competency.
These contributory element help in achieve the firm goal. Like innovation render
increases competitive advantage and technology enhance the customer satisfaction. Customer
satisfaction increase the market share too(Nicolescu,2015). HRM maintain employee's
competence, efficiency, morale and motivation and, motivated human capital participate more in
business function. They also use their individual learning for organization's sake, which
eventually can be seen in improved service, lower mistakes and controlled cost.
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Marketing and operation function
Marketing department conducts market research, campaign management, product
promotion, customer research, competitor's analysis, business environment evaluation, branding,
segmentation, targeting and position. These marketing roles help an organisation in product
development, improvisation and innovation. For instance company changes its store decoration
and setting as per the recent trend and choice of customer. These changes are made on the basis
of market research. Market research identifies that people are interest in self check in and check
out service, they do not want to waste their time on long payment queues. So supermarket
company tries to install all the latest technology regarding it.
Marketing team successfully identifies the opportunity, which gives birth to flexible long
term buying experience, where customer can enter shopping by apps, even store now have sensor
and face recognisance technique. These technologies help in seamless buying to customer.
Marketing team of company render all the latest scheme, update, information and anouncemenet
of organisation's policy on different promotion platform (OZER and KILIÇ,2017). Marketing
team can not move one step ahead when operation team does not cooperate with it. Like
company's thinking tank design the service and product as per the knowledge given by team. If
they do not follow the suggestion, not only marketing team will fail to meet its sales target but
firm will face probability concern soon.
HR and other business function
Like other business Morrison supermarket plc also need human capital to manage its
activities and to maintain healthy relationship with customer. Customer satisfaction need soft
communication, conflict management, interpersonal relation and other skills. company's HR
render training and development, on the subject where its personnel are lacking. HR maintains
the efficient human capital by recruitment and selection. People are nourished by best HRM like
talent management, fair performance appraisal and motivation. HR try to maintain the optimum
balance of old and new working people(Pearson,2017). On the other hand marketing, operation
and IT teams render HR information about the latest skill, knowledge and experience
requirement so that HR can make effective job description, job role and job specification.
Marketing team also help human resource department to attract the best talent from market by
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showing their outstanding services. People want to attach their name with supermarket by
viewing the happy people of bank.
IT and other department
Firm's Information technology department responsible to make software, technical
solution, development of customer friendly user interface, troubleshooting the problems, design
company website, install and set up computer in organisation, ensure smooth internet connection,
repairing of hardware and software. IT department also provide the training banking employee
for new technologies(Kolk, A., 2016).YORKSHIRE different department uses the latest
computer programs like HRIS, CRM, MIS and cloud storage only because its IT professionals.
Marketing team gives information to IT people about marketing mix requirement of customer,
latest terotechnological trend uses in retail industry, so that they can alien their efforts
accordingly. HR department help IT by offering them people with required technical skills.
Finance and other units
Financial department of Firm is accountable to raise fund, investment decision,
arrangement of working capital, maintain salary and overhead expenses accounts, generate
financial statement, important financial reports, get sales targets etc. HR department decide
perks, incentives, salary and other monetary benefits with the help of finance manager.
Marketing team get promotional fund from this department. It also monitors the performance of
team by evaluation its performance time to time. Marketing and finance department are knows
as heavenly matched relation because they are highly depends on each other for sustain.
Marketing team generate enough fund by its marketing efforts, If it fails to generate cash inflow
bank can not perform its single function.
Advantage of inter-relation
 Nice coordination and cooperation among business function help in achieving
organisation goal, vision mission by eliminating obstacles, share information, assistance
to each other, knowledge sharing etc.
 Interrelation of business unit indirectly contributes in quality management Because these
function are interdependent to each other. All the departments keep their eyes on each
other performance and activities.
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