Business Environment Report: HSBC and BBC, Organizational Analysis

This report presents a comprehensive business environment analysis of HSBC and BBC, examining their organizational structures, including public, private, and voluntary types. It delves into the size and scope of these organizations, exploring the relationship between different organizational functions using matrix and horizontal structures. The report identifies the positive and negative impacts of the macro environment through PESTLE analysis, encompassing political, economic, social, technological, legal, and environmental factors. Furthermore, it investigates the interrelation of strengths and weaknesses with external macro factors, providing a holistic view of the companies' positions within their respective industries. The analysis includes an examination of organizational structures, financial aspects, HR, IT, and production department interactions and their impact on the overall business environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and purpose of organisation........................................................................................1
P2 Size and scope of different types of organisation..................................................................2
TASK 2 ...........................................................................................................................................4
P3 Relationship between different organisational functions.......................................................4
TASK 3............................................................................................................................................7
P4 Identify the positive and negative impact of macro environment towards organisation.......7
TASK 4............................................................................................................................................9
P6 Inter-relation of strength and weakness with external macro factors of organisation.........11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
Business environmental is defined as sum of all internal and external factors by which an
organisation is surrounded. This factors directly or indirectly impacts on functions and
operations of a corporation. Business environment leads an organisation to identify different
opportunities and threats that exist in market. It is divided into two environment factors like
micro and macro. The present assignment is based from perspective of HSBC and BBC firm
which operates their business in financial sector and media industry. Moreover, the present
assignment focuses on different types of structure, types and purpose of organisation. Also types
of industry in which an organisation is operating their business such as primary, territory and
secondary (Ayios, A., 2018). Along with its relationship between different organisational
functions and operations will also be discuss in this report. At last PESTLE and SWOT is also
discuss in upcoming task for better understanding of their work.
TASK 1
P1 Types and purpose of organisation
Their are different types of organisation such as public, private and voluntary are present
that operates its business in various industry. Further information about this organisation are
mention as follow:
Public organisation- Public corporation or organisation are those which are operated and
managed by government of a country. The taxes which is based by public to government is
utilize to finance this organisation which leads them to complete their work effectively. Public
organisation is operating their business in territory as well as secondary industry.
Purpose- The main purpose of public organisation is to provide effective services and products
to its customers at minimum price. Along with this they utilize available resources for providing
several benefits to society.
Structure- legal structure of public organisation is formulated under royal charter. It signifies
that an agreement is developed with secretary of a specific industry in order to essential
information to all persons. BBC is performing their business at a global level therefore they
execute centralised structure in organisation (Beatty and Abril, 2018). So it is easy for
management to make effective decisions to perform their work through consent of all
employee's.

Private organisation- Private organisation are operated and managed by an single entity, group
of persons or company. It is divided into two parts which is public and private limited company.
M&S operates its business in primary industry. Along with this there are large number of persons
are engage to complete their work effectively.
Purpose- Private organisation perform their business in order to earn more amount of profits and
growth for their business. Another purpose is to increase their market share by increasing sale of
its products or services.
Legal structure- Sole traders refer to those person who is whole sole responsible to take
effective decisions for organisation. Another part relates with partnership it represent more than
two person manage the work of an organisation. HSBC and BBC is an example for private
organisation. In last private limited company refers to those in which organisation raise funds
from the public in form of shares, debenture and capital market (Brown, 2018).
Voluntary groups- It refers to those organisation which are not owned and controlled by
individual or government. Further some persons are responsible to complete their work
effectively in organisation. Such as to manage budgets and to achieve goals and objectives in a
appropriate manner. Oxfam is an example of voluntary organisation which ensure to remove
poverty from society. They are performing their business in territory sector.
Purpose- The main purpose of voluntary organisation is to remove poverty and to increase the
living standard of people in order to develop a country.
Legal Structure- Association, trust, community interest are legal structure is followed by
organisation. It is one of the most common form for voluntary organisation as it refers to a group
of people that work to provide service in market. Trust is a traditional structure of voluntary
organisation in which individuals provide funds to perform their functions.
P2 Size and scope of different types of organisation
Size and scope of public organisation
Size- In context of public organisation they are large in size because they provide their services
at a national and global level. BBC is an example of public organisation.
Scope- This types of organisation works for benefiting society therefore the scope of this
organisation is widely present in market.

Objective- The main objective of public organisation is to provide good quality product and
services to its customers (Charter, 2017).
Structure- In present scenario there are large number of organisation are included to complete it
is related with several factors. Further they follow centralised structure in which all decisions are
taken by upper management.
Advantages of public organisation
 Public organisation leads a country to maintain their economic of scale through providing
effective services and products to customers.
 It is easy for public organisation to plan and coordinate different activities because they
perform their work in system manner.
Disadvantage of public organisation
 Public organisation perform their work at national level due to this it is difficult to
manage and cooperate between activities of organisation.
 Their is also risk of ineffective products as it raises by methods of different factors to
complete their work in minimum time period.
Size and scope of private organisation
Size- Whereas, the size of private organisation is based on different factors which is related with
its market area. Like M&S is large in size because they perform their business at global level.
Scope- In terms of scope, according to present scenario most of business perform their business
at global level. So the scope for private organisation is wide that helps them to accomplish their
goals and objectives with in minimum time period.
Structure- Private organisation implement flat organisation structure in order to complete their
work effectively (Fabuš, 2017). It is beneficial for HSBC and BBC because it helps them to
complete their work effectively through reducing communication gap between employee's.
Objective- Private organisation work with aim of earning high amount of profits and to capture
high market share in industry. In this it is related with accomplishment of different objectives to
complete it effectively.
Advantages of private organisation
 Private organisation are able to complete their work with more efficiency through long
term planning. This helps them to complete their work in systematic and sequential
manner.

 Another benefit is private organisation perform their work through self sufficient funds. It
governs that they have limited liability to pay their debts.
Size and scope of voluntary organisation
Size- Voluntary organisation perform their work at small level therefore its size depend on the
area in which they are performing their operations.
Scope- Oxfam is a large organisation therefore the scope is large as more than 20 organisation
work or perform their operations under guidance of Oxfam.
Objective- The main objective of Oxfam is to remove poverty from society within minimum
time period (Foss and Saebi, 2017).
Structure- Decentralised structure are followed by voluntary organisation because there are
large number of person are engage for the welfare of society. It refers voluntary persons,
members of organisation and trustee follow simple structure to perform their operations
effectively.
Advantage of voluntary organisation
 The major benefit of voluntary organisation is that they work for making the society a
better place. This helps them to move their efforts of whole team towards right direction.
 Voluntary organisation works with aim of increasing living standard of society. This
leads them to save tax from government as they are not working for earning profits.
TASK 2
P3 Relationship between different organisational functions
According to present market conditions several organisation of UK are performing their
business at global level. Due to this to gain competitive advantage in market it is important for
organisation to inter-relate all of their function with each other. Some points which describe
relationship between different organisational function is mention as follow:

Illustration 1:
Source(https://www.managementstudyhq.com/types-of-organizational-structures.html)
Matrix organisational structure
The above chart represent matrix organisational structure in which reporting relationship
relates with grid or matrix structure rather than its traditional hierarchy. It is a type of
organisational management in which people of similar skills are combined together and reports
to upper management for completing their work effectively.

Illustration 2
Text 1: Source(https://www.orgcharting.com/horizontal-org-chart/)
Horizontal Structure
In present scenario there are large number of organisation to complete their work with more
efficiency and effectiveness. The horizontal structure is one of the most traditional structure
which undertakes several types of model to complete their with in appropriate manner. HBSC as
well as BBC are large organisation therefore horizontal structure are one of the most effective
structure for organisation (Hamilton and Webster, 2018). As it delegates equal responsibility and
authority to all departments.
Interrelationship between Finance department and marketing department- Marketing
department of an organisation perform different function such as advertisement, promotion and
analysis of customer needs. On other perspective finance department deal and manage all

monetary transaction of an organisation. To perform different functions marketing department
formulates effective budget to complete their work in a minimum cost. So finance department
assist them to estimate or predict right price for their products. HSBC and BBC perform their
work to achieve their objective by constantly performing their operations.
Interrelationship between HR Department and production department- HSBC and
BBC provides their services in finance industry. This result it is essential for them to recruit and
hire effective, skilled and capable employee's that are able to deal with clients. In context of this
HR department deal with employee's to hire right candidates so they are able to give effective
decisions to customers. It determines that production department will communicate with HR
department for identifying number and skills that are required by employee's (Hillary, 2018). It
leads them to accomplish their objectives by building positive relations between all departments.
Relationship of IT department with production department- In present scenario major
functions of an organisation are completed through implementing updated technology. This
represent technology is entered in most of the functions and department of organisation. As it
refers large number of persons is completing their work through dealing in those factors which
are related with accomplishment of goals and objectives in systematic manner. At last there are
different functions which is achieved is because of constant efforts of organisation. Whereas, to
achieve their objectives or goals they need to accomplish their goals through executing
technology in all of its functions.
In last it is analysed that it is essential for organisation to manage all function and to relate them
with each other to perform their operations with more efficiency and effectiveness. The main
agenda to inter-relate all functions is to achieve their objectives in specified time period. An
organisation refers to a organised group of people that works in various departments for
achieving their goals and objectives. Due to this it is mandatory for organisation to inter-relating
within different functions to complete it effectively by communicating with each other
(Komljenovic and Kumral, 2017).

TASK 3
P4 Identify the positive and negative impact of macro environment towards organisation
To achieve high advantage in market it is important for HSBC and BBC to complete their
work with understanding of environment. It determines through analysing and implementing
PESTLE analysis it is easy for organisation to understand different opportunities and threats that
exists in market. Further in this task, Pestle analysis in regards of HSBC and BBC is mention as
under beneath:
Political factor- Political factor refers to those that directly impacts on profitability of
organisation. The major problem that raises due to political changes is of sudden changes that is
taken by ruling government of organisation. In context of finance industry of UK they take
several steps to deal with this changes which benefited them to remain stable for longer period.
UK is a developed country due to this there are minimum changes are implemented in country
regarding to their policies, rules and legislation (Kopnina and Blewitt, 2018). So the organisation
is able to complete them effectively.
Economical factor- The economic factor undertakes various aspects of a country such as
inflation rate, foreign exchange rate, interest rate, income level of consumers etc. In present
scenario the economic condition of UK is facing challenges to retain it at a constant level. This
factor refers after Brexit there are several modifications are faced by country and society in order
to manage their asset specifically monetary transaction. It impacts finance industry as its difficult
for them because they operates their business in financial sector.
Social factor- The social factor which impact on HSBC and BBC present to a reflection
of society or area in which they operates their business. In simple words social factor undertakes
culture, belief, value and attitude of a particular country. Moreover for organisation or finance
industry social factors is not only beneficial for exploring market opportunities but it also works
as a marketing aspect for organisation. In UK, there are different types of people belongs to
various religions. So for HSBC and BBC it is important for them to implement effective
diversity policy in organisation accomplishing their task effectively (Nohria, 2017).
Technological factor- As per the present market conditions technology is rapidly
expanding and executing to perform several task. It determines that it is mandatory for all
organisation to utilize technology for completing their work effectively. The infrastructure and
technological factor of UK is well developed. Due to well developed technology factor finance

industry need to utilise technological aspect effectively in performing their work. As it helps
them to complete their work in appropriate manner. Example- Financial industry or organisation
adopts or developed a new technology in market then it is easy for them to capture more market
in area through competitive advantage.
Environmental factor- From recent years organisation, NGO and government are aware
about environmental conditions. Moreover each industries holds different standards in order to
protect climate and weather. The present market conditions of environment is at declining due to
hazardous conditions. Finance industry plays an crucial role in market and for a country. So the
bad weather conditions impacts on delivery and transportation of their goods to other places. On
other side climate also refers to make changes in weather as if they organisation produce
seasonal goods then it is important to monitor environmental conditions regularly (Saebi and
Foss, 2017). This leads to them to make constant sale about their products.
Legal factor- The term legal factor includes government institutions, framework and
rules that are developed in a country. While technically it involves rules formulates by political
party and government body. The main agenda to implement legal factor in organisation is to
ensure the interest of political parties in a particular country. Like in UK local as well as
international organisation both are performing their work to earn high amount of profits.
Example- This is easy for financial organisation to secure their intellectual properties with
implementation and follow of legal aspects.
TASK 4
P5 Internal and External analysis of organisation for identifying their strength and weakness
SWOT (strength, weaknesses, opportunities and threat) analysis is studied by the
organization so that unique strategies can be formulated accordingly. Market research is
conducted to better understand threat prevailing in the open market place. Whereas, strong
strategies are designed to turn out the loop holes of other as their growth opportunities in the
competitive market place. The SWOT analysis of HSBC bank and BBC are explained as
follows:
SWOT analysis for BBC
Strengths
Old reputation- BBC is operating their
Weakness
High operating cost- The major weakness of

business in broadcast industry from several
years. So it works as an effective strength
against its competitors.
Expanded broadcaster- Organisation
expanded their business at a large level by
offering and delivering effective services to its
clients.
Advance market strategies- BBC gives tough-
minded competition to its rival organisation by
formulating effective market strategies.
BBC relates with their high operating cost.
This affects negatively on the annual profits of
BBC.
Biased views- It is conducted by survey that
most broadcast news of BBC is biased and
inaccurate that provides negative information
to the public.
Involvement in controversies- Due to touch
and cover sensitive issue many times BBC face
unintentionally or intentionally involved in
controversies among overall world.
Opportunities
Partnership- The present management of BBC
is totally controlled by government of UK. So
with joint partnership management is able to
reduce their cost for performing various
operations.
Increasing revenue- BBC are largest operator
and service provider. Therefore by increasing
in market share it leads them to earn more
profits.
Threats
Strong competition- Most of the present
organisation are performing their work at
global level. It results that there is tough
competition exists in market that impacts on
growth of BBC.
Launching of domestic channel- Local news
and other channels are giving tough
competition to BBC. This is biggest threat for
organisation to perform their operations.
The SWOT analysis of BBC affect the decision making process as by scanning the
market proper tactics can be farmed. The strengths and weaknesses of the firm push them to
work for more improvements. By this act top level management take effective decision for the
betterment and growth of the business in the global market (Teece, 2018). While to overcome
threat and to grab opportunities research work is conducted on continuous basis.
SWOT analysis for HSBC Bank
Strength
Skilled workforce- With implement of
Weaknesses
Decline market- In most of developed