Business Environment: Organizational Analysis and Decision Making

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 characteristics, legal structures, and objectives of Brit Insurance, the Cabinet Office, and the Child Support Agency. The report delves into the size, scope, and organizational functions of each entity, highlighting the relationships between these functions and their alignment with organizational objectives and structure. Furthermore, it includes a PESTLE analysis to assess the macro-environmental factors impacting the chosen organizations and a SWOT analysis to evaluate their internal strengths and weaknesses, as well as external opportunities and threats. The report concludes with a critical reflection on the key findings, emphasizing their role in effective decision-making processes within these diverse organizational contexts. This analysis aims to provide a clear understanding of the interplay between internal and external factors in shaping business strategies and outcomes.

BUSINESS AND THE BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
(a) Overview on different types of organisation.........................................................................3
(b) Size and scope for different range of organisation................................................................4
(c) Relationship between different organizational functions and how they link to
organizational objectives and structure.......................................................................................6
TASK 2............................................................................................................................................7
(d) Discussion of the various macro-environment factors(PESTLE) that has impact on chosen
organisation.................................................................................................................................7
(e) Discussion over the SWOT analysis for the chosen organisation.........................................9
(f) Critical reflection of key findings and its role into the effective decision making process. 10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment is the sum total of all external and internal factors that influences a
business. This kind of environment has taken care several different types of organisation such as
public, private & voluntary organisation (Miller, 2018). In the current scenario, business
environment has become necessary to regulation its functional activities for the longer period of
time. This report will be carried on three different organisation, which are classified on the basis
of private, public and voluntary organisation. The names of the organisations are Brit insurance,
Cabinet office and Child support agency. The overview of the companies are mentioned in the
report with their defined vision & mission. Apart from this, report will be carried on discussion
over different types of organisation whether public, private or voluntary. Along with this, report
will cover background, products & services, size & scope and legal structure. Also, report will
carry the assessment of the PESTEL & SWOT analysis to understand the inter-relationship
among the functional units of different organisation.
TASK 1
(a) Overview on different types of organisation
International business environment is the platform through which business entities are
regulate the other different business operations for their goal & target accomplishments. Also,
there growth has been raised for bringing the business sustainability into their business operation.
Organisation has played a pioneer role into the development of society as well as culture of
different country, majorly in the positive manner. Also, different types of organisation has
brought development for the people as well as helpful in bringing business to the global stage.
There are different types of organisation such as: Private, public and voluntary. All three are
varies in respect to their size, structure or way of doing their own business. The explanation for
different types of organisation are as follows:
Private sector: This type of organisation are mainly owned by an individual entities,
firms, private people or independent authorities. In other ways, private sector can be termed as
sole traders, who do their self business (Hill, 2018). But, still there is the difference between sole
traders and private sector organisation. The reason is their own structure, where sole traders
might be small, but private companies have structure or size with change into the hierarchical
level. In this sector, importance to profit making is the major priority, because they don't have

any specific funding from government bodies of any nation. Major sources of raising funds are
investments from various investors, financial bodies or other business. In addition to this, private
sector has put pressure onto the internal business environment, by their ups-down of business
operation.
For example: Brit insurance is the UK based private organisation, which deals with
international general insurance and reinvestment groups which are specialised in the commercial
insurance to general public as well as corporate entities.
Legal structure: This organisation is owned by Ben-field & Rea investment trust in 1996.
Later, it was acquired by John Stewart in 1999. In addition to this, Stewart is the current CEO,
Michael Puffery is the managing director (Ward, 2016). There legal structure is comprises of line
based organisation structure, where roles & responsibilities of their employee's are classified on
the basis of different hierarchical level of an organisation.
Public Sector: This type of organisation are governed by various legal government
bodies, legislative agencies, bodies who are controlled by government regions (Sum, 2015). The
main purpose is to provides the welfare development to their people rather than focus towards
profit making. Generally, public sector firms are democratic in nature, where everyone have
freedom to take their separate decision strategies. Also, people have controlled over this sector
firm, in such a way that their single action can demolished its functioning. They are mainly
authorized by the elected government of any nation. Size, structure or hierarchical level are
spread over different local area, regions or even country.
For example: Cabinet office is one of the department, which belongs to UK government,
who are mainly responsible for supporting the prime minister and cabinet of an entire United
Kingdom. Also, Cabinet office is composed of various units that support cabinet committees and
which co-ordinate the delivery government objectives.
Legal Structure: Cabinet office is comprises of staff or functional authority organisation
structure, where line and job position, who facilitates the prime minister working module and
cabinet committee decision planning (Neely, 2013). They prepares the curriculum for tenure of
the UK's prime minister.
Voluntary organisation: Those entities who conducts their work towards welfare for the
common people, understanding their needs, wants or issues arises with them to overcome. These
organisation can be survive in form of being as private, public or individual units (Kong Leon,

2014). In addition to this, they could also be hired by other organisation, whose focus are into the
same context. The main purpose of this firm is to pursue activities related to the social activities,
welfare of the poor people as well as assistance in response to any natural calamities occurred.
They are basically not for profit organisation, with major aim to societies welfare &
development.
For example: Child support agency is the voluntary organisation, which was recognized
as delivery arm of the department for work and pension in the United Kingdom and which was
former part of northern Ireland. The major purpose of this organisation is to protect children
from being exploit from others and also providing welfare & development to kids of orphanages.
This agency is an independent agency, who used to get funds for their work through UK legal
firms.
Legal structure: Legal structure comprises of Julia Grodan, who started this organisation
with their aim which is focused towards the human development. Apart from this, rest 200
employee's are assigned for different roles and tasks.
(b) Size and scope for different range of organisation
Every organisation varies on the basis of their scope, structure and size. Some firms have
limited employee's, which could be as a reason of LLP (Durey, 2014). Also, they are distinguish
through profit generation or income level. Hence, it is necessary to undertake discussion over
classification of all three defined organisation on the basis of their respective size, structure &
scope. The explanation is as follows:
Brit insurance:
Background of the company: Brit is the leading insurance agency deals with international
general insurance and reinvestment groups, whose specialisation is in commercial insurance. Its
parent company is Fairfax financial in May 2015. It is headquartered in London, UK. Products or
services of Brit are focused towards giving insurance and investments to the public or corporate
entities.
Business objectives: The major objectives of Brit insurance is to achieve maximum no of
customer, who must have insurance policy to protect their file.
Vision & mission: Brit mission is to expand their services throughout the globe with
maximum customer satisfaction. Also, the vision for being as “Customer's first priority”.

Products & services: Brit insurance deals with selling of their insurance policies to their
customers, which mainly includes general people along with corporate firms. They also provides
services, which are related to investment making or assistance towards investment acquisition.
Size & scope: This leading insurance agency has total of 400 employee's who are located
in different region of the UK such as Northern Ireland, England, Scotland etc. The scope lies
with development or expansion of their business operation at the global level mainly covering
Europe. Stakeholders of Brit insurance are well-equipped with their control over company power
and politics to continue the effective valuation of the company in an effective manner.
Legal structure: This organisation is owned by Ben-field & Rea investment trust in 1996.
Later, it was acquired by John Stewart in 1999. In addition to this, Stewart is the current CEO,
Michael Puffery is the managing director (Ward, 2016). There legal structure is comprises of line
based organisation structure, where roles & responsibilities of their employee's are classified on
the basis of different hierarchical level of an organisation.
Organisation structure:
Illustrati
on 1: Organisational structure of Brit insurance
Cabinet office:

Background of the company: Cabinet office is the department of government of the
United Kingdom responsible for supporting the prime minister and cabinet of the UK. It is
composed of various units that support cabinet committee and which co-ordinate the delivery of
government objectives via other departments.
Vision & mission: Mission is to facilitate the prime minister and cabinet in their supreme
decision making. Also, the vision is to “Enhance the power of government entities on higher
basis with strategic action plan”
Objectives: The goals & objectives of cabinet office is to assist the prime minister of UK
and committee over decision making for development and regulation of the company.
Products & services: Cabinet office provides the information assistance as well as
support into decision making of the prime minister of the UK and cabinet committee to initiate
their action plan for development of the entire UK and also to make the legislation effective.
Size & scope: Size of the Cabinet office comprises of 2000 employee's staff, who work in
Whitehall of the UK. That staff currently in the prime minister's office as part of the Cabinet
curriculum. There scope for being as major part of government is wide with purpose to facilitate
prime minister of the UK. The government agencies are the major stakeholders of the cabinet
office to control its affairs for an effective and clear decision making process.
Legal structure: Cabinet office is comprises of staff or functional authority organisation
structure, where line and job position, who facilitates the prime minister working module and
cabinet committee decision planning (Neely, 2013). They prepares the curriculum for tenure of
the UK's prime minister.
Organisation structure:

Child agency support
Background of the company: It is one of the voluntary organisation, who are focused
towards welfare and development of children, by help them or their parents to give effective
growth for their life. It is considered as local strategic partnership. Also, they provides support
for child education and life growth.
Vision & Mission: The mission of Child agency support is to “generate their services in
various field of development for child” and vision is to “fulfil every child dream”.
Objectives: The major objective of child agency support is to provide assistance to new
born babies, children in betterment of their life.
Size & Scope: This voluntary organisation has total of 200 members, whose targets is to
facilitate the people to happy growth to their children along with facilitate them financial support
and scope is to make organisation for the longer period of time.
Illustration 2: Organisation structure of cabinet office(Public sector)

Legal structure: Legal structure comprises of Julia Grodan, who started this organisation
with their aim which is focused towards the human development. Apart from this, rest 200
employee's are assigned for different roles and tasks.
Information of stakeholders: Child support agency has various stakeholders such as
Manchester development council, who has power to control over its functioning to secure their
common interest to invest funds of council in future continuation of support agency activities.
(c) Relationship between different organizational functions and how they link to
organizational objectives and structure
Organisation function of the Brit insurance: Marketing: This function help to enhance the relation between consumers and suppliers.
In context of Brit Insurance, marking is helping them to increase their customer where
they can provide loan amount to them so earn more revenue. In Brit Insurance, marketing
relationship with other departments are wide and long lasting for this leading insurance
sector. Each contributes in their well-being and focused towards the common goals of the
company. For better marketing company has decided to provide loan at low interest rate
(Kenney, 2013). The relationship of marketing with other department is unique and
centric towards selling of product to earn higher profitability through usage of effective
human resource. Human Resource Department: This types of department are created just to increase the
work efficiency by providing guidelines that must be followed (Evans, 2013). In terms of
Illustration 3: Organisation structure

Brit International, this department helps the organisation by providing proper knowledge
to newly recruited and by controlling proper administration. HR Dept. relationship with
marketing is huge and collaborative, it provides human support to marketing to generate
sales and with finance to get adequate funds for hiring an effective employees. Finance: Every organisation must know how to utilise there financial resources so that
every business activity can be performed. In context of Brit Insurance, manager have the
major responsibility to manage all the activity which are related to finance where he must
provide proper facility to its employee's in order to complete each and every task.
Finance provides the funds to marketing department for sales purpose or goals. Finance
Dept. provides funds to other department such as marketing, finance, human resource
etc., just after approval of senior person to assist them in conducting their respective
activities such as hiring & staffing, sales promotion, developing of new product design
etc. this relationship is helpful and productive source for Brit insurance.
 Research and development: This function should be performed by almost every
organisation in order to enhance there knowledge. While, having discussion about Brit
International insurance, R&D is the separate department which are always in hurry for
trying to find something new and on that basis development work will be conducted.
R&D relationship with other departments such as finance, marketing is focused towards
developing new product, in such a way that long term profitability for business entity,
would be achieved. Also, such relationship will last for longer period of time.
These interrelationship of one department to another has resulted Brit insurance to accomplish
their desired goals and targets. Also, these co-ordination has resulted into the saving of cost and
money at the higher rate. These functions are linked to organisational objectives by contributing
to each and every efforts to others. Brit insurance business functional units work together with
common purpose of business expansion through R&D and implementing it through marketing
involvements. Advantage of such interrelation of different departments is centric towards
accomplishments of common goals along with potential of Brit insurance to raise and increase
their profitability at the greater and higher level. Conflict and rise of an issues among different
departments is forced disadvantage of this interrelation. This has made both positive and
negative burden on organisational structure of the Brit insurance. On the Positive side, it has
brought transparency and accomplishment of goals and targets effectively. Also, rise of conflicts

has burden process and functioning, which has ultimately burdened organisation structure of Brit
insurance.
TASK 2
(d) Discussion of the various macro-environment factors(PESTLE) that has impact on chosen
organisation
Macro-factors has played an important role for getting known about the benefits or issues
which are occurred as a reason of any forceful pressure. These kind of forces could be political,
economical, social etc. (Perkins-Munn, 2012). It has been proven necessary to conduct the
PESTLE analysis, which can briefly demonstrate the business potential & capacity to work for
longer tenure of life. In context with Brit insur Discussion ance Plc Ltd, positive and negative
impact of the PESTLE analysis are as follows:
Political: Within the UK political ambitious and rise of communalism, actual political
tendencies are von rise and may well continue for quite some time. Based on this, insurance firm
may introduce political risk coverage in their policies. In entire UK, this is the only area, where
customers consider to take insurance cover on custom duty change on certain legal condition.
Continuous change in government tenure has effected the insurance sector by unfavourable
choice of different ruling parties. Also, the Brexit has reduced long term relationship with other
European countries with UK. Impact of political factors are as follows:
Positive: Government of the PM David Cameroon has facilitated insurance sector to
become independent to take their separate decision making and assist insurance or investment
sector to generate funds from other regions to enhance the business operation.
Negative: Removal of entire UK from European union has reduced the currency of UK
on global platform, which has impacted insurance sales of the Brit Insurance.
Economic: The interest rates at the bank and also the provident fund variation has impact
the insurance sector, as people are always attracted by the higher return. In comparison to this,
the lower return policy will not attract customer's. Another factors which has effected insurance
is unemployment, which has reflected the less sales of an insurance policies. Low return policy
has no economic benefits to the customer's, but that has impacted the profitability of the Brit

insurance. Because, calamities such as high rain, flood in the UK has made to release the claim
quarterly basis. Other factors such as high inflation rate.
Positive: Variations into the banks interest rate has facilitated Brit insurance in getting
the suitable level of income on their return over selling of policies.
Negative: High inflation rate has impacted the valuation of pound sterling, which has
forced Brit insurance to look for investment to continue business operations.
Social: Population is one of the major factor, which has effected insurance sector to get
huge base of the suitable customer's. Also, the interference of government in controlling flow of
money in insurance policies actually has limits the suitable base of the consumer (Cunningham,
2016). In UK, simply people are interested in having car, as a result, they are investing more in
car insurance rather than life insurance. This is why because, life insurance is the major income
source for Brit. Lifestyle is also the another factor that impact over insurance process.
Positive: Increased population has raised Brit insurance potential to expand their own
business operations into the location or regions. Business suitability is favourable.
Negative: People potential to spend money on their personal needs rather than giving the
insurance policy has created trouble for Brit ins Discussion urance to sell their product.
Technology: Internet has become fast house-hold name in the entire UK. The insurance
has taken advantage of this with having many policies which can be flexible to the customer's.
One main factor such as debit & credit card, which has facilitated people to pay their respective
instalments, has positive impacts on the business of the Brit insurance. Also, the customer's can
check the credential of their due amount over the instalment balance.
Positive: It has facilitated Brit insurance to ease into the premium collection for insurance
amount and it has facilitated business to track their business activities on the larger basis.
Negative: Negative impact is that cost of bearing and holding the updated technology has
become less cost effective for Brit insurance.
Legal: The insurance sector has growth, which is more than 3 times than the growth in an
UK economy. So many businesses or the domestic firms will aim to invest in the insurance
sector (Simmers, 2018). Moreover, the growth of insurance sector in UK is 13 times more than
growth of insurance industry in the developed countries. So, foreign companies will be fostering
an immense desire to invest in the UK insurance market.

Positive: Insurance sector has grown at the higher rate in UK industry and it has enables
more and more investment into insurance sector of UK.
Negative: Brit insurance has tucked in certain legal issues, which has impacted them in
hazardous way by affecting the financial position of the companies.
Environment: Various factors such as floods, Tsunami etc. has increased the flow of
premium to the customer's who demanded it (Abramovich, 2014). This has led bulk outflow of
money out of the Brit company, which has been into the financial burden to this leading
insurance corporation.
Positive: This has raised different people belief over the insurance sector, which will led
to more insurance as well as investment business to Brit insurance.
Negative: This factor has led huge money outflow out of the Brit financial strength,
which will burdened investors to invent more.
(e) Discussion over the SWOT analysis for the chosen organisation
Brit insurance has their operation into the different sectors including regions of an entire
UK. The SWOT analysis will help this organisation to showcase their attributes of this leading
insurance corporation which will be discussed as under:
Particu
lar
Brit insurance Prudential Plc
Strengt
h
Brit insurance has effective talent
management, which has led their
operational results on the productive basis.
They also provides the favourable margins
onto the customer, majorly when they
purchase the high rate premium along with
monthly or quarterly basis (Gagarin,
2013). They are catering to different
customer's segment to enhance their brand
image & profitability. Brit insurance have
business regulations into the investment
sector, which has created revenue flow
Prudential is the world's leading
organisation with has invested its money
in corporate entities. It provides the
insurance services to their customers and
engaged in investment business also. This
brand have strong customer over what they
actually offers to them.

into the business.
Weakn
esses
There major weaknesses is requirement of
extra cost for building new supply chain
and logistics network. Also, they have
weak hands into the artificial intelligence,
which they actually requires to generate
revenues to their firms. Lack of
investment has been occurred for Brit
insurance, which has effected their
margins and revenues. Non-support of the
Niche market and local monopolies has
suffered in the business activities of Brit
insurance.
Because of low identity into the market,
this would impact its business operation in
the future with decreased profit. Also, they
are less investors as compared to Brit
insurance (Ramachandran, 2015).
Opport
unities
Increasing adaptation of online services
for customer engagement is potential
opportunity for Brit insurance to enables
their business for productivity and
profitability purpose. Accelerated
technological innovation and advances is
one of the potential opportunity for Brit
insurance in getting the higher business
results along with acquiring the high
customer attention.
Adaptive advertising and creating loyalty
for customer is the major opportunities for
Prudential to raise their business at the
larger and utilized context. Also, they can
attracted different investor to get suitable
money for their business.
Threats Higher inflation rate along with dropping
valuation of pound currency is the major
threat for Brit insurance. Lack of skilled
labour and change into the political
environment would result for Brit
insurance in the negative manner
(Montaigne, 2014).
Brit insurance is the major threat for
Prudential, which they needs to overcome
through effective product strategies.

Inter-relationship between Strength and weakness with PESTLE factors:
Political: Brit insurance has strong command over political factors such as regulation
over politics of entire UK, which is their major strength. Weakness is their lack of negotiating
potential, to tackle political situation into the UK as a region. Hence, they need to work over
their political policy & rules.
Economic: Brit insurance is suffered with an issue of high inflation rate in UK, which
has reduced their loan generation to different customer or business entities (Teece, 2017). They
have potential strength to generate more and more loan through platform of e-service to facilitate
customer easy access of money. Weakness, which belongs to less investment raise into the
market.
Social: Because of people spending has increased on building infrastructure, Brit have
strength to pass out high loan at affordable rates of interest and repayments. Weakness is that
they don't have adequate money to pass out the loan.
Technological: Artificial intelligence has increased in finance sector, which has been
resulted into ease access to investment and loan generation. The major strength identified is
increase potential to involve maximum customer to get applied money in less period of time.
Environmental: Floods, Tsunami, tides are some of the environmental factors, which has
link with strength for more insurance policy of Brit insurance and profitable business and
weakness is to waive of lump-sum money, in case any uncertainties being occurred.
Legal: Because of high penalties, fines etc., strength relates to effective working of Brit
insurance in finance sector with Zero chances of any error or mis-regulation. Weakness relates
burden on business operation of Brit insurance.
(f) Critical reflection of key findings and its role into the effective decision making process
From the above PESTLE and SWOT analysis, it has been critically analyse that these two
factors has been resulted for decision making in both positive and negative manner. It has been
found that political, social, technological factor have ruled both positive and negative impacts
onto the decision making process of Brit insurance. Such analysis has led effective working and
customer management into business operation and led Brit insurance to take collective decision

making fro this company (Ward, 2015). It is also critically analysed that PESTLE analysis has
been resulted into productivity as well as profitability of the Brit insurance and make their
decision making process with ability to solve problem into that process or situation. Finally. The
role of inter-relationship of strength and weakness with external factors have brought
transparency into the working process of Brit insurance.

CONCLUSION
From the above report, it is concluded that business environment has played a necessary
role in classifying the different types of organisation. This concept has facilitated for bringing the
clear-cut understanding of the different organisation's size & scope, legal structure, vision &
mission, objectives, products & services etc. Also, the report has facilitated the understanding of
complete PESTEL along with assessment of SWOT technique to analyse internal & external
factors that has effect the business operations of the company. It is important to compare the
strength & weaknesses of different organisation to gear up their business suitability along with
generation of profitability & productivity for the business.

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