Business and Business Environment Report: Analysis of Organizations

This report examines the business environment, focusing on the different types and purposes of organizations, including private, public, and voluntary sectors, with a specific emphasis on Barclays Bank and ASDA. It explores the relationship between various organizational functions and analyzes the size and scope of these organizations. The report delves into the positive and negative impacts of the microenvironment on business operations and conducts internal and external analyses to identify strengths, weaknesses, and their interrelation with external macro factors. The report also covers the legal structures of each type of organization, providing a comprehensive overview of the business environment and its impact on organizational success.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types an purpose of organizations..........................................................................1
P2 Size and scope of a range of different types of organizations...............................................4
TASK 2............................................................................................................................................6
P3 Relationship between different organizational functions......................................................6
TASK 3............................................................................................................................................8
P4 Positive and negative impacts of micro environment has upon business operations............8
TASK 4..........................................................................................................................................11
P5 Internal and external analysis of specific organizations in order to identify strength and
weaknesses................................................................................................................................11
P6 How strength and weaknesses interrelated with external macro factors.............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment defines an effective combination of internal and external factors
which directly affect the organization’s activities. It includes competitors, customers,
government, legal, social and many more factors which are considered in organizational process
in order to attain better results. Basically, it is a significant activity which directly influences
operational situation of company (Business Environment, 2017). In this, both internal and
external factors impact on the overall growth of firm in a positive and negative manner. Present
report is based on Barclays's Bank which is a British multinational bank that provides financial
services to their customers. They operate their offices in various locations. It involves various
activities their operational process such as commercial banking, financial products, investment
banking and many more. This report discussed about various types of organizations and their
purposes which help in determining the actual structure of company. It also defined relationship
among all the organizational functions. Along with this, internal and external factors of the
business are also mentioned in this assignment. At the end of project, strengths and weaknesses
and their interrelation with external micro factors are also mentioned.
TASK 1
P1 Different types an purpose of organizations
Every business is having their own purpose and target in which they set objectives for
improving their performance level in the market. In this, various business organizations operate
their enterprise in order to attain higher profitability which leads in developing its growth in
market. All these firms try to offer high quality services to their potential customers in order to
fulfil the needs in the most effective manner (Becker, Kugeler and Rosemann, 2013). The main
motive and purpose of every organization is totally different form each other because every firm
wants to expand their business at the global level and they operate operational activities
accordingly . In this context, there are various businesses which exist in the market place and
operate their process in order to gain better success. There are three types of organizations which
differ from each other such as private, public and voluntary organization. All are as follows:
Comparison Profit organization Non- profit
Organization
NGO
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Meaning These types of
business organizations
operate their business
to earn more
profitability in the
market. For this, they
offer new and
innovative services to
their customers in
order to attract them
towards the products
and services.
These types of
organisations operate
their business for
serving quality
services to society in
order to satisfy their
needs in the most
effective manner.
These types of
organizations operate
their business for
providing beneficial
services to their
customers. Mainly,
they work for
improving the
society’s status and
also, promote social
welfare.
Motive The main purpose of
these types of
organizations is to
earn profits.
These type of business
provide quality as well
as effective services to
their customers.
Main aim of these
organizations is to
promote social welfare
and useful things
which helps in
enhancing the
satisfaction of society.
Operations area These types of
businesses can be
large and limited.
These organizations
are limited.
These are large
companies in the
market.
Along with this, all three organizations are having their specific purpose in market which
leads to gain better benefits.
Private Organization:
These types of business organizations operate their business for attaining higher
profitability by delivering quality services in front of its customers. In today's modern era, these
types of businesses easily expand their enterprise at global level for gaining higher revenue. In
this, they issue their shared but they cannot trade in public. In the UK, various private companies
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focus on producing their products to fulfil customer’s demand on the basis of their preferences.
In this sector, government’s role does not exist (Blanchard, Tolbert and Mencken, 2011). In this
context, ASDA is a private company which operates their business in the UK. They operate
activities in retail sector and provide quality services to their customers in order to gain their
higher satisfaction (Bocken and et. al., 2014). They have millions of customers in the entire
world in which they easily earn more revenue. Main objective of ASDA is to deliver quality
products at affordable price so that they will compete with their competitors easily. They provide
mobile phone and financial facilities to their customers. They use effective promotional tools in
order to increase the awareness of customers towards firm’s products and services. They include
more the 180000 skilled and experienced staff members within their operational activities so that
they easily execute functional action. In this, there are some main purposes of this sector which
are as follows:
 The main and prime purpose of company is to increase their market share and attain
large amount of profits. The main focus of this company is to develop their productivity level.
Legal structure of private organization:
Sole Proprietorship: These type of firm operate by single person and also bear all the
risk and issues within the business. They does not share their profit with others and also attain all
the profits. They take all the decision on their basis and operate their business in effective way.
Partnership: These type of business run by two or more than two partners in which they
conduct their business together and share all the losses and profitability with each others
(Charter, 2017).
Private limited company: These type of business operate as well as execute their
business privately and there is no government role. In this all the members have limited liability.
Public Organization:
These type of organization operate by the local people with Central government. It is a
operate of the economy because it provide effective government services to individuals. The
main aim of these organization is to set their goals and objectives in systematic manner. In this
minimum people start the business.
Along with this Barclays's bank is public bank which provide various financial services
to their clients (Bovee, Thill and Raina, 2016). They operate their business at various countries
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and include many staff members. There are some main purpose of this organization are as
follows:
 The main purpose of this business organization is to provide better financial services to
their customers. They focus on enhancing their goodwill at market place (Crane and Matten, 2016).
Legal structure of public organization:
State government: It is single as well as separate section which provide better help to the
government functions. In this all the function are regarded by the state agencies and many more.
Local government: It include public administration which cover whole local part which
helps in enhancing the economic conditions in most effective manner.
Central government: These type of section include administration department which
regarded with the state and central government.
Voluntary sector:
These type of organization related with the social activities in which all the people
include in voluntarily agreements in which the main aim of this company is to achieve all the
target and objectives in appropriate time period. Mainly these type of business focus on
development the economic condition which lead in enhancing the overall performance of the
economy of the country.
Oxfam is one of the popular voluntary organization, which is an international charitable
firm and the main aim of this organization is to eliminated the global poverty in economy. The
main purpose of these type of organization is:
 Main aim and purpose of this organization is to improve society and economy condition.
 Promote better social welfare within the country so that they easily enhance people living
standard.
P2 Size and scope of a range of different types of organizations
In today's modern era, it is more important for the business to perform their functions in
effective manner. Every business have their size and scope which is related with its structure (De
Jonge, 2011). It largely affect the organization performance which helps in achieving its target
and objectives in most effective manner. In this context, there are size and scope of the business
organization are as follows:
Private sector:
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The main aim of these type of business is to attain more profitability by delivering quality
services to their customers (Dunning, 2012). ASDA is private company which operate their
business in various countries which helps in achieving more revenues in effective manner.
Size of ASDA company:
It is one of the popular and private company which include more than 180000 employees
within their activities. All are work for achieving better goals and objectives. They has more than
60 supermarket over the world and they operate in general mechanise and grocery products in
effective manner.
Scope:
ASDA is biggest company which operate their business in grocery market in which they
provide better financial services to their customers. It established a well as managed by one
single person in which they get all the profitability on their basis.
Stakeholders:
It is one of the important aspect for the company which play important role because they
highly contribute in overall success of the company at market place. In this ASDA company
stakeholder are its investors, shareholders, suppliers and customers. Which the help of this they
improve their overall performance level and also helps in delivering quality services to their
customers in most effective manner (Ferraro, G. P. and Briody, E. K., 2017).
Public sector:
These type of business operate their business at large level in which they focus on
enhancing their brand image by delivering quality services to the society. Barclays's bank operate
their activities at international level which considers in large scale.
Size of Barclays's Bank:
This bank include more than 120000 employees within their business activities in which
they operate their business in more than 40 countries in over the world. They provide financial
services to their customers in order to get their higher satisfaction.
Scope of public sector:
These type of business required licence for operate their business in which they get
permission form the government to run their business effectively (Dunning, 2014). In this they
needs more funds to execute their business activities in most effective manner.
Stakeholders:
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It is more important for the Barclays's bank which help in providing better financial help
to the business in order to execute all the business activities in most effective manner
(Gharajedaghi, 2011). Stakeholders of Barclays's bank is government. Shareholders and many
more.
Voluntary Sector:
This type of business related with non government organization which provide more
benefits to the people for improve their living standard. Oxfam is a voluntary sector company
they operate their charitable activity in international level in order to remove society problems
and also reduce the global poverty.
Size:
It is lager business organization which include more than 1000 employees. All they are
work for social welfare and protect human rights. The main objective of this company is to
develop better economic condition and eliminate poverty within the country.
TASK 2
P3 Relationship between different organizational functions
Various organizational function are mentioned within the industry which helps in
performing all the activities in effective manner. All the function are interrelate with other
function which helps in achieving its organizational goals and objectives (Healy and Palepu,
2012). In context of Barclays's banks various functions are included which help in executing all
the activities in systematic way which contribute in end results. All these function are human
resource, operations, finance, marketing, research and development and many more. All these
are assist in completing all the organizational task in order to achieve positive end results. With
the help of these bank easily attain their target in specific time period. It help to manager and
staff members to perform their duties in order to get their final goals and objectives. In this
context the main aim of organization to to enhance their profitability level by increasing their
sale volume in which they offer quality services to their customers in order to get their higher
satisfaction level. In this context there are some function which is interrelate with all other
function are as follows:
Marketing:
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It is one of the important department which play significant role in Barclays's bank in
order to increase their overall profitability of the company (Hair, 2015). With the help of this
department company operate their business at wide level and enhance their productivity. In
absence of this function company can be be able to attain success. By effectively performing
marketing function manager of the company easily attract large number customers towards their
products and services. In this various promotional activities used by the manager which leads in
increasing public awareness about the services of the bank. With the help of this department
bank easily increase positive brand image at market place and also enhance their productivity.
Human resource:
It is necessary for every business organization in which all the all the people works at
every level in order to attain positive results. It is important aspect for Barclays's bank in which
manger effectively coordinate with their staff members and also motivate them. With the help of
this employees perform their best achieve all the goals and objectives in appropriate manner. It
also provide better suggestions to their staff members so that they perform their duties effectively
and attain their targets in systematic manner (Onetti and et. al., 2012).
Finance:
This function play important role in whole business activities because without financial
fund company fails in executing their process. So that it is significant function for Barclays's
bank which define all the information all their overall transaction on continue basis which leads
in achieving its target in appropriate time period. In this creditors and investors are important key
elements which helps in executing all the activities in effective manner.
Operations:
It is one of the main function of the company which helps in producing quality services
for their customers so that they fulfil all the needs effectively. With the help of this Barclays's
bank easily satisfy their clients demand and retain them for long time period.
Research and development:
It is one of the important as well as effective function for Barclays's banks in which they
conduct better research programs for identifying competitors, market trends, existing services
and many more which helps in improving the performance level at market place and also capture
larger market share form its rivals effectively (Mahmood and Hanafi, 2013).
Along with this, there are some other organizational structures are as follows:
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 Function based: It is common structure which define employees position as per the work
function and its nature. It include various common function such as marketing, human
resource, finance and operational all are differ from each other and play their roles and
responsibilities effectively (Schaltegger, Lüdeke-Freund and Hansen, 2012). Geography based: It is also effective and important which cover geographic region in
which company defining their banks and units in various location in order to maintain
their existing performance. Product organizational structure: It is related with the specific product type which helps
in satisfying customers demand as per their needs. In context of Barclays's bank, it
provide financial services which helps in generating larger revenue.
 Customer based structure: Customers are more important for the business organization
to get higher success. The main focus of Barclays's bank is to satisfy their customers
demands by delivering better services. The main advantage of this structure is to invite
large number of customers groups in order to attain better success.
TASK 3
P4 Positive and negative impacts of micro environment has upon business operations
It is more important for the business organization to analysis the impact of environment
at business functions. Because it directly impact on the organizational activities in positive and
negative manner so that it is important duty of manager of the company to analysis effectively
(Scheer, 2012). Macro environment consider all the external factors which highly affect the
overall performance of the company. It is important for manager of Barclays's bank is to analysis
and reduce the negative impact on organizational activities effectively. With the help of this
company easily perform as well as operate their activities in appropriate manner and maintain
their strong brand image at market place. For this PESTLE analysis of Barclays's bank are as
follows:
Political factors: It is one of the important factors which is made by government for the business
organization. In this UK government made some effective policies and regulation which must be
follow by the company to maintain ethical environment. In this, stability in government is more
important which helps in improving the overall performance of the company. It is also important
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for the government authorities to provide better support to their business so that they effectively
execute their business and attain positive results (Sharma, Chrisman and Chua, 2012).
 Positive impact:
◦ Government stability is one of the positive impact which lead in enhancing the
overall brand image at market place.
◦ Effective policies is also helps in improving the performance level of the company.
 Negative impact:
◦ Continuously changes in government policies, and taxation.
◦ Government instability is negatively impact on the performance of the company.
Economical factor: It is one of the important factors for the Barclays's bank which helps in
enhancing the profitability level at market place. Economic risk and uncertainty is negatively
impact on the company. It include unemployment, inflation and many more which impact on the
company in positive and negative manner. So that it is important to effectively analysis and
attain better results.
 Positive impact:
◦ One of the positive impact of effective economic is high purchasing power of the
customers which helps in enhancing the overall sale of the company (Trevino and
Nelson, 2016).
◦ Better expansion of all the business activities helps in enhancing the brand image at
market place.
 Negative impact:
◦ Increase in interest rate is negative impact on business organizations.
◦ If economic growth is reduce than company also reduce their performance level at
market place.
Social factors: These factors is also significant for the company which helps in improving
customers satisfaction level because it include lifestyle, attitude, taste, demographic and labour.
All changes are directly impact on business of Barclays's bank . So that it is important for the
manager to analysis effectively and reduce the negative impact on company (Storey, 2016).
Which the help of this company satisfy customers need as per their expectation.
 Positive impact:
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◦ Increase in customers demand is also helpful for the company in which they easily
achieve better revenue.
◦ Barclays's bank also implement CSR activities to enhance their performance and also
improve economic condition in most effective manner (Trompenaars and Hampden-
Turner, 2011).
 Negative impact:
◦ If company will not use updated infrastructure than they reduce their profitability and
also face various problems.
◦ If company fails in implementing better CSR activities than they can not able to
improve their performance level at market place.
Technological factors: Higher success is depend on the company and its technologies which
were used by them. So that it is important for Barclays's banks to use new and advance
technologies in their operational activities than they easily improve their performance level and
capture larger market share. It is important responsibility of the manager to update their
technologies in order to improve their image in market place.
 Positive impact:
◦ With the help of advanced technologies company increase their profitability level.
◦ It helps in reducing the time and operational cost.
 Negative impact:
◦ If company does not update their technologies than they increase their operational
cost.
◦ Continuously changes in technologies is also negatively impact on the business.
Legal factors: It is one of the important factor which define all legal rules which have to be
follow by the Barclays's bank. With the help of this company easily protect employees
performance and protect their rights. It include taxations, employment law and many more which
help in managing the better working environment at the workplace.
 Positive impact:
◦ With the help of effective laws and policies company easily perform their activities.
◦ All these acts helps in improving employees performance at the workplace because it
protect workers rights (Turban, Sharda and Delen, 2011).
 Negative impact:
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