Business and Business Environment Report: Yorkshire Bank Analysis

This report provides a comprehensive analysis of the business environment, focusing on Yorkshire Bank. It begins with an introduction to the business environment and then explores the different types and purposes of organizations, including public, private, and voluntary organizations, with a specific focus on Yorkshire Bank as a private organization. The report then examines the size and scope of Yorkshire Bank, as well as the Cabinet Office, outlining their missions, products, services, and legal structures. The core of the report delves into the organizational functions, such as marketing, human resources, finance, and research and development, and how they relate to the organization's objectives and structure. A significant portion is dedicated to PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors impacting Yorkshire Bank. The report also includes a SWOT analysis, critically reflecting on key findings and their role in effective decision-making processes within the bank. The report concludes with a summary of the key findings and their implications for Yorkshire Bank's operations and strategic planning.

Business and business environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different Types and purposes of organisations.....................................................................3
P2 Size and scope of different range of organisation..................................................................4
TASK 2............................................................................................................................................6
P3 Understanding of different organizational functions and how they link to organizational
objectives and its structure..........................................................................................................6
TASK 3............................................................................................................................................7
P4 Explanation of the various macro-environment factors (PESTLE) that has impact over the
organisation.................................................................................................................................7
TASK 4..........................................................................................................................................10
P5 Discussion over the SWOT analysis for the chosen organisation.......................................10
P6 Critical reflection of key findings and its role into the effective decision making process.11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is the cumulative of both the external and internal factors that may
influence business operations of nay organisation. In the different organisation, business and its
formal environment has created various impacts such as positive and negative. Also, in the
current scenario, effective business environment such as external and internal factor has played
necessary role for growth of business firm and its profitability. This report will be carried on
Yorkshire bank, which is the leading banking services institution deals in financial services,
investment making along with wealth management of their clients. Apart from this, report will
focus on discussion over different types of organisation along with legal structure. Also, this
report will give its efforts on clear understanding of size, scope and products &b services of the
given organisation. Apart from this, report will make discussion over complete analysis of
PESTEL tools to know the various external forces of particular organisation or industry. Along
with this, report will put its focus on SWOT analysis along with its analysis with macro factors
such as political, economical, technological etc.
TASK 1
P1 Different Types and purposes of organisations
It is an entity and association in which collection of people or employees are work
together in order to achieve goals. Any success organisation generates operating profit and make
easy environment to accept the challenges in companies. Its helps to bring business at global
range by making profits. There are different types of organisation such as public, private and
voluntary. They have different methodology and scope to be sustain in market which is
mentioned as below-
Public organisation: This contains public sector which is controlled by governments and
all publicly fund enterprises, agencies and other entities. These sector would often engage private
association to delivery goods and services through outsourcing. Public services includes
governmental services, public goods and services like as infrastructure (public bridges, roads,
water supply, electronic services, tunnels, telecommunication sector, etc.), public education,
public transportation along with health care. For example, HSBC holding is a public limited
company which is situated in CANADA SQUARE LONDON, UK. It started trading on British

market since 1959-01-01. This is one of the largest banking and financial services
organisations .The main purpose of this to provide banking and financial services in all over the
world, growth of business, economic development and helping people to completing their needs
and realise their scope.
Private organisation: This contains any firm or enterprises which is controlled by
private sector not government. It includes sole proprietorship business but there is a difference
between sole traders and private enterprises. Sole proprietorship business is also controlled by
single owner but at small size of business where as private company has wider range of business.
It does not issue shares for public subscription and arrange capital from privately sources. It
focuses on increase profits because it raise funds by its own sources. For example,
YORKSHIRE BANK is a private bank which provide financial services to people, established in
1859 at UK. It has around 4400 offices all-over the world. This is able to provide high range of
services such as commercial banking, investment banking, secure online banking and personal
services. Its main purpose to increase turnover and make profitable organisation by providing
financial services. There are mainly three types of private organisations which are discussed
below: Sole Trader: It is the simplest type of business which is comparatively easy to setup than
other types of businesses. In this, the owner is responsible for all the aspect of the
business. The owner makes the decisions for the business regarding the operating, hiring
employees, developing strategies etc. Franchises: This concept is generally accepted by the organisations as expansion
strategy. After implementing, the firm provides the procedures, business model,
intellectual property, brand, and right for selling the products and services of the firm to
the franchisee. The franchisee pays a suitable and agreed amount of money in return
which is specified in the Franchise Agreement.
 Partnerships: It is an agreement in which the parties or partners agrees to cooperate for
their mutual interests and for achieving the shared goals. This partnership can be between
the firms, individuals, schools or governments etc. Through the partnership, organisations
can achieve their shared goals in effective manner for amplifying their reach.
Voluntary organisations: This includes group of people or union who enter in to an
agreement to work together for common interest and welfare of poor people. When two or more

than two person works together by mutual concern for common purpose is known as voluntary
enterprise. In this enterprises each person have same duties and obligations and they does not
have separate legal personality. For example, Save the children, it is an international
nongovernmental organisation that focus on welfare of poor children and promotes children's
rights. Its main purpose to provide relief and education to children. It also helps to support
children in developing countries and believes every child deserves a bright future by providing
education to them. This agency is an independent agency who used to raise funds by their legal
UK firms.
P2 Size and scope of different range of organisation
Every organization is different from others on the basis of size, structure and scope. Few
organisations have limited employees because of the limited liability partnership (LLP). It is also
differ on the basis of profit and income level. It is very important to identify the all three entities
on the basis of their scope, size and structure which is discussed below:
Yorkshire Bank limited:
Background of the company: It is the leading service organisation, whose business is
currently engages in providing the financial services at both national and international general
level along with investment facilitation. It is headquartered in London, United Kingdom. This
leading bank has collaboration with Barclays group to make their products more profitable with
continuous development for services improvements.
Vision and mission: Vision or mission of the company to provide world class service to
their customer with financial benefits at the larger context. There mission is to expand their
business services at the global level on the larger scale.
Product and services: Yorkshire bank currently deals with financial services with
investment generation to different and other business entities. They provides the loan facility to
their customer's along with investment return to respective business. There major services are
loan generation to their customer's at the lower return rates and they are focused towards
investment giving to different business.
Size and scope: Yorkshire bank has 400 employees who is situated in different region of
United Kingdom such as England, Scotland, Northern Ireland etc. As, Yorkshire bank is looking
for business expansion to raise their business expectancy into the different location such as other
countries of European union.

Legal structure: Yorkshire bank was founded by John perry, who is the current CEO of
this leading banking services. Ali Hassan is the current managing director, Allen musk is the
global head, who is in charge to enables the corporate activities.
Cabinet office:
Background of the company: It is a department of UK government who is responsible
for the prime minister and Cabinet of UK. It include various departments and units who support
cabinet committees. It also deliver the government objectives through various departments.
Vision and mission: Mission of the company is to provide decision making facilities to
the Prime minister and Cabinet. Vision of the company to “Enhance government unity's” power
according to strategic action plan and higher basis”.
Product and services: It is provide various relevant information as well as support to the
Prime minister for taking any decision. Also take initiative for the cabinet committees to convert
their action plan for the development of UK and make build effective legislation.
Size and scope: Cabinet office have 2000 employees who work in the Whitehall location
in the UK. All the employees currently working under prime minister's office as a part of cabinet
program. Scope of the cabinet office to become important part of the government who facilitates
the prime minister of the UK.
Legal structure: In this particular legal structure, the cabinet office consist of various
level of staff members and organisational function authority. Where job and line position
facilitates the prime minister and decision planning of cabinet committees. It prepare program for
particular time period for the UK's prime minister.
TASK 2
P3 Understanding of different organizational functions and how they link to organizational
objectives and its structure
Marketing: This marketing function would help Yorkshire to take decision making for
enhancing long term relationship among consumers, company and suppliers. In context of
Yorkshire bank, marketing would help this leading bank to raise their customer base where,
they will provide correct information of the loan details to their prospective customers, so as to
higher and higher revenue. For equipped marketing, Yorkshire bank must focus on deciding the
actual and real products or services.

Human Resource Department: This department of the Human resource has been created
for increasing the efficiency of an employees to become effective in order to accomplish future
decided goals of an organisation. In context with Yorkshire bank, this needs to hire most suitable
and reflective employees in order to accomplish desired goals of an organisation. Also, bank
needs to focus on making their recruitment & selection process more effective with increasing
scenario for organisational development.
Finance: Finance department of Yorkshire bank needs to be well-equipped with desired
knowledge and information about the financial aspects and methodologies. In context with
Yorkshire bank, company is required to make proper budget and financial statements to ascertain
the financial requirements for the business. As, this department needs to outsource funds to an
entire structure of the Yorkshire bank to carry out productive activities.
Research and development: This departmental functions needs to be focused on
performing several activities such as finding any new products/service for generating future
revenue for business of Yorkshire bank. Also, they needs to identify any product issues/problem
in order to suggest several changes/measures to overcome any shortage into the financial
services of the Yorkshire bank.
There is the proportionate relationship of Yorkshire departmental function with their
organisational goals and structure. Structure of the Yorkshire bank is comprises of different
branches and individual department, which use to make their separate individual decision
making. The structure of the Yorkshire bank is given in following diagram:

As, goals and objectives of Yorkshire bank are focused towards achieving their long term
goals of getting the financial strength. Hence, there each and every section of department are
focused towards accomplishing this defined goals. Yorkshire bank uses functional structure,
which is divided into the different department such as marketing, sales and customer services.
TASK 3
P4 Explanation of the various macro-environment factors (PESTLE) that has impact over the
organisation
Macro factors has played an important role for generation-loss of the business of any
firm. Loss occurring could be generate as a reason of any forceful act by the external forces such
as political, social, economical etc. In context with Yorkshire bank, it has proved useful and
productive to give priority to discussion over PESTLE analysis, which will demonstrate any
effects onto the its business operation along with existence for longer period of time. For
Yorkshire bank limited, the positive and negative impact of PESTLE analysis are as follows:
Political: Within UK political regulation and rise of communalism, politics tendencies
are raised and it may effect the environment of corporate regulation into an entire United
kingdom. In response to this, Yorkshire bank has noticed several effects such as brought down of
business operation, because of political unfair. In entire UK, London is the only city, which is
Illustration 1: Functional structure

effected by rise of political biases along with rise of communalism. Also, continuous change of
government tenure has put critical burden over banking sector in entire United Kingdom , which
has effected its growth.
Positive: David Cameroon government has provided legislative support to banking in an
entire UK to avoid the rise of communalism and organisational biases. This positive impact has
raised effective decision making and financial assistance to the Yorkshire bank.
Negative: In negative side, rise of communalism and ineffective structure of taxation has
created informal behaviour for Yorkshire bank profitability and productivity.
Economical: Interest rates has increased by Reserve bank of Britain, which has created
for people to surpass their borrowing before the given period of time. Also, valuation of pounds
with dollar has been declined, which has raised the taxation and import duty for every business
firm. Low return policy has effected financial potential of banking sector. Hence, Yorkshire bank
needs to take separate decision making to control financial power of this leading bank.
Positive: To overcome this issue, Yorkshire has bring down their interest rates, so that
customer would return the borrowed in an earliest manner.
Negative: Negative response was increase into the inflation rate by 1 percent to entire
United Kingdom economy.
Social: Higher population in London city is the major factor for banking sector. This is
why, because most of the UK banks are located in that location. More and more people are now
taking loan, which has been resulted to outflow of funds. This has resulted into cash crisis for
UK banking sector.
Positive: The positive impact will be higher expectancy for return on investment made by
Yorkshire bank in return to loan amount made to public. This will also provide cash availability
to this bank in case of urgency.
Negative: In negative side, because of higher population, maximum loan has been raised
which led to burden over financial potential of Yorkshire bank.
Technology: Internet has widely spread over entire UK within few decades, which ha
influence the behaviour of an individual for easy access of money. Now a days, people are less
involved to banks physically than online platform to generate money. This has brought burden to
banks to invest huge on building IT infrastructure. Investment into the technical aspects has been
raised by corporate to enhance their customer experience at the larger context.

Positive: The positive response is rise in customer experience of banking sector in an
entire United Kingdom. Also, reach to customer has been raised with saving and time.
Negative: Building an effective IT infrastructure has sucked funds of the Yorkshire bank,
in future which will ultimately results into huge burden to their financial strength. Proper budget
planning will be beneficial.
Legal: Banking sector has grown over many years in United Kingdom 2 times faster than
entire globe banking regulation. Hence, more and more investment firms are looking in a mood
to make funds flow into this sector. The major reason is that banks have comparatively high
returns as compared to other different industry. This imbalance would cause burden to other
sectors. There are several other legislations, which are made by UK legislation to overcome these
challenges.
Positive: This will be major support for banking sector of United Kingdom to get proper
response of their customer, which would helpful in establishing the financial strength of this
leading Yorkshire bank.
Negative: There are some chances that biases with other industry would create. This will
led to burden on UK economy. Hence, this legal issue needs to be overcome and measures to
overcome it.
Environmental: Factors such as flood, Tsunami etc., has resulted into flow of funds by
this leading bank to overcome challenges faced by common people. This has led bulk out-flow of
money by Yorkshire bank to remove these challenges. In UK, every company needs to invest
funds for recovery of local contingencies.
Positive: This will help Yorkshire to build their self brand image along with trust of their
potential customer's.
Negative: In negative side, flow of funds would create burden for Yorkshire to control, if
they wants to continue their business for the longer period of time.
TASK 4
P5 Discussion over the SWOT analysis for the chosen organisation
Yorkshire bank has their operation into the banking regulation along with advisory
services in investment sector. It is necessary to do complete analysis of SWOT to know their
internal and external environment such as strength and weaknesses. In context with Yorkshire

bank, this SWOT analysis will help this leading bank to make their services as well as product
more suitable and relevant.
Particular Explanation
Strength Yorkshire bank limited have collective talent management, which has generate
d their operational & profitable results on the continuous basis. There focus I on
providing favourable margins to their customer, mostly when they takes loans
of higher amount with guarantee to return it in less period of time. They are
also looking for other different business investment firms, stock management
along with wealth management to enhance their brand image & profitability.
Yorkshire bank till now have small business regulations into the investment
sector, which has created funds inflow into the business purpose.
Weaknesses There are several weaknesses such as additional costs for building new supply
chain, improper customer connection along with ineffective customer services.
In addition to this, Yorkshire bank has inadequate control over financial
affairs, because of old technology in their accounting system. Lack of adequate
investment has been raised for Yorkshire bank, which has resulted into their
their sales and profit generation. Also, the continuous fluctuation of market has
resulted Yorkshire bank to borrow money from reserve bank of London.
Opportunities Increasing scenario of online technology is suitable for customer services along
with retaining them for longer period of time. As, customer engagement is
required in every organisation to gain potential opportunity for Yorkshire bank
to enables their higher business productivity and profit generation purposes.
Increased technological innovation, creativity and advancement is one of the
long-live opportunity for the Yorkshire bank to more and more investment from
the investors. This opportunity will be suitable for this leading bank to get their
business outcomes at the longer period of time.
Threats Continuous Higher inflation rate with dropping valuation of pound currency
would be major threat for Yorkshire bank limited. Also, they have less skilled
labour with improper communication skills and analytical potential to take
financial decision making. Competition is also one major threat for Yorkshire

bank.
P6 Critical reflection of key findings and its role into the effective decision making process
From the above discussion, it is a critical reflection that analysis of PESTEL tool with
SWOT assessment has necessary to know external and external factor, which could effect the
business operation of the Yorkshire bank. Discussion of SWOT and PESTEL will help Yorkshire
to make their effective and clear decision making, irrespective of their critical consequences or
even threats. It is necessary for those organisation, who are engaged in banking sector to do
critical and comprehensive analysis of PESTLE model to know various critical forces such as
political, social, technological etc., to avoid circumstances which could effect the business
operation along with future based profitability and profit making.
Analysis of these two technique will help business entities to take decision making with
right and utilized policies & regulations. In economic factor, Yorkshire bank needs to make
appropriate budgets and do cumulative planning to take effective decision making in context
with financial stability and growth to the organisation. Yorkshire needs to make certain suitable
rules & regulation, so as to get legislative support from an organisation.