Business Environment Analysis: NatWest and Organizational Types

This report examines the business environment, focusing on NatWest as a case study. It begins by defining the business environment and its internal and external factors, before exploring different organizational types: public, private, and voluntary, with examples including NatWest, Aldi, and the NHS. The report analyzes the size and scope of these organizations. It also investigates the relationships between organizational functions (HR, R&D, Operations, Marketing) and their links to organizational objectives and structure. A significant portion of the report is dedicated to analyzing the positive and negative impacts of the macro environment on NatWest, as well as an internal analysis of the bank, including its strengths, weaknesses, opportunities, and threats. The report concludes with a summary of findings and key insights regarding the bank's position within its business environment.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1. Different type and purpose of organisations.........................................................................4
P2. Size and scope of different type of organisation...................................................................5
TASK 2............................................................................................................................................7
P3 Relationship between different organisational functions and their link to organisational
objectives and structure...............................................................................................................7
TASK 3............................................................................................................................................8
P4 Analysis of the positive and negative impact of the macro environment on NatWest..........8
TASK 4..........................................................................................................................................10
P5. Internal analysis of NatWest...............................................................................................10
P6 Effect of macro factors on strength and weakness of NatWest...........................................11
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment includes all those factors which affects the business of company.
The factors which are included in environment are external and internal factors. Both these
factors have major effects on the activities of company (Scheer, 2012 ). External factors includes
political, environmental, social, legal and technological which have major impact on business
and all these factors are not under the control of company. Internal factors includes strength,
weakness, opportunity and threats. This factors associated with the working of company and
controllable by the management. NatWest is the world's leading international bank which
provides the large number of services in different countries. The services provided by bank
includes personal financial services, commercial banking, financial products etc (Gharajedaghi,
2011).
In this report explain about, type and purpose of the public, private and voluntary organisation,
size and scope of these different types of organisations, relationship between different
organisation functions and the link between their objectives and structures, Positive and negative
impact of macro environment and internal & external analysis of organisation.

TASK 1
P1. Different type and purpose of organisations
There are mainly three type of organisation which includes: public, private and voluntary.
Public company: Public sector companies generally provides the government services. All the
tax income generated by government is used to finance the public companies. Public sector
companies are provided the goods and services which are not provided by private companies. All
these companies are formed under special acts and by parliament. The main objective of public
organisations are:
 Economy: It provides the various job opportunities to the individuals of country. This
contributes the economy of country to grow (Zikmund and et. al., 2013).
 Efficiency: That investors get good return from their investment. This helps the company
to create their image.
 Effectiveness: It is the duty of company to provide quality services to their customers as
per the standards set by government.
NatWest is the international bank which provides various financial services in all over the world.
The services provided by bank includes, commercial banking, financial products etc.
Objectives of NatWest are described below:
 To provide financial services to persons of UK and in all over world
 To provide online banking services to their customers (Trevino and Nelson, 2016).
 To satisfy the wants of their customers and expand their business activities
Legal structure of public company: The legal structure of public company includes state,
central, local government.
 State government: The state government of country includes the all the activities related
to central and state agencies.
 Central government: It handles all the departments of central and state government.
 Local government: It includes all the activities related to public administration of the
companies.
Purpose of NatWest: The main purpose of NatWest is to provide the financial services to
customers. The main aim behind is to make the economy of UK more stronger in world and to
solve the financial problems of individual.

Private company: It includes those companies on which there is no control of government.
Private companies covers the large sector in national economy of country. The main aim of
company is to earn profit. These companies are not required to meet the requirements of
securities and exchange commission. Private companies issue their stock but their shares do not
trade on public exchange (Elliot, 2011).
Aldi is the private company which deals in the retail sector and provides many products. It has
more than 10000 stores in 18 countries and combined turnover of more than € 50 billion.
Objectives of the company are described below:
 To provide quality services and increase their profits
 To capture the more market share
 To increase brand image of company
 To earn higher profits for the benefit of investors and different stakeholders.
Legal structure of private company:
 Partnership: It includes the joining of two or more persons to start new businees for thr
purpose earning high profits (Cavalcante, Kesting and Ulhøi, 2011).
 Sole trader: It includes the business which is controlled by the single person. This
person is sole owner of company and have unlimited liability.
 Limited companies: In includes those companies which are managed by shareholders.
The number of shareholders not more than 50.
Voluntary organisation: These organisation are work for the welfare of society. The main aim
of the company is to provides services for the benefit of society not to earn profit.
NHS is the voluntary organisation which provides medical facilities to needy people of society.
The main purpose of organisation is to help them in difficult time.
Objectives of company:
 To provide services for welfare of society
 To provide basic medical facilities
P2. Size and scope of different type of organisation
NatWest: Size and scope of the company is described below:
 Size of NatWest: NatWest is large retail and commercial bank in UK. It was established
after the merger of National provincial bank and Westminster bank and from 2000, it is
the part of Royal bank of Scotland group. It has been considered as one of the big four

clearing bank. This bank has more than 960 branches and 3400 cash machines across
great Britain and also provides the services of 24 hour action line telephone and online
banking services. Today it has the very large position in market. It has more than 7.5
million personal customers and 850000 small business accounts. It also has m,any
subsidiary banks which operates in different countries. In Ireland, it operates their
operations through Ulster bank which is the subsidiary of NatWest. In 2017, NatWest is
awarded as Best banking app and British Bank awards ( Zeng, Li and Duan, 2012).
 Scope of NatWest: The large number of activities are provided by this bank. This helps
the bank to attain the large position in market. It has very huge network which covers all
the areas of UK. This bank not only in UK but also provides their services in other
countries. There are many subsidiary bank of NatWest which provides their services in
different countries. The services provided by this bank includes: personal banking
financial services, commercial banking, financial products and services, loans,
investment services, bonds etc. All these services provided by bank helps them to retain
their position in market and gain competitive advantage.
Aldi: Size and scope of the business is described below:
 Size of Aldi: Aldi is providing various products and deals in retail sector. It has many
supermarket chains which are operated to maximise their sales and profit. It is a common
brand of two supermarket chain with over 10000 stores in 18 countries and have more
than € 50 billion estimated turnover. Aldi German operation consists more than 35
individual regional companies with about 2500 stores in western, northern and eastern
Germany and Aldi sud's 32 regional companies with 1600 stores in western and southern
Germany. Aldi is the big company which operates there business in many countries. The
business operated in countries includes: Denmark, France, Benelux countries, Poland,
Great Britain, Hungary, Switzerland etc (Scheer, 2012). In 2017, they also stared their
business in united states. They operate 1600 stores in united states ( Doh and et. al.,
2010).
 Scope of Aldi:The many products and the services are provided by this company. The
diversified activities of the company in different countries helps them to earn higher
profits and become the largest retailer. They have many supermarket chain in different
countries which provides variety of products.

National health services: Size and scope of the company is described below:
 Size of NHS: This company is providing public health services in England, Scotland and
Wales. This can be established by labour party which the biggest reform after second
world war. The main aim of the company is to provide free services to needy peoples. It
contributes to economy to grow. This works for the welfare of society. In 2015-16, the
employees working in company are around 1.6 million people with combine budget of
£136.7 billion. UK residents are not charged for the medical treatment provided by this
company (Gharajedaghi, 2011).
 Scope of NHS: The main of the company is to provide medical facilities to the residents
of UK. All the services provided by company is free of charge. The main purpose of the
company is to helps the needy peoples in their difficult times and provides basic medical
facilities to them.
TASK 2
P3 Relationship between different organisational functions and their link to organisational
objectives and structure
All the type of organisations described above have there different functions and different
objectives for this they operate their activities. To fulfil there objectives large number of
functions are carried out by companies this helps them to accomplish there goals. But there is
some relation between the activities which are carried out by companies. The relation is that they
work for the betterment of society and to develop the economy of country. Some of the
interrelation between the activities of the different business is described below:
 All the public, private and voluntary organisations are work to make society more better.
 To create the job opportunities for the individual of country. This helps in economic
development also (Zikmund and et. al., 2013).
 To improve the living standard of the persons by providing them better job opportunities
NatWest is the banking company in which various departments are working to accomplish the
different needs of customers. The departments which are working in NatWest includes: Human
resource, Research and development, operational, marketing etc. The link of these organisational
departments with the objectives and structures of the company are defined below:
 Human resource department: This department is responsible to maintain employee
relation in bank. This helps the bank to properly manage their activities. There are many

functions of HR department. It includes appraisal of employee performance,
determination of remuneration, appointment of employees in company as per the
requirements etc. All these activities help to motivate the employee and to improve their
performance. This will help the bank to achieve there targets effectively and efficiently
(.Trevino and Nelson, 2016).
 Research and development: This department helps the bank to get the information
about the preferences of customer regarding the services which they want from bank.
This department also helps in understand the view of customers towards bank. According
to that information management of bank has opportunity to change their services and to
retain their position. This department provides information related to competitors which
are operating in same field and their technologies which are used by them. This helps the
NatWest to adopt the new technologies to achieve the bank targets more effectively.
 Operational: This department is responsible for the day to day activities of bank. This
helps to manage the activities of bank to satisfy the all needs of customers. The main of
this department is to properly conduct the services of bank to achieve their objectives and
to provide financial services to the customers ( Elliot, 2011).
 Marketing: This department has the main work of advertisement of the offers provided
by bank. This helps the bank to reach the large number of customers and expand their
business activities. This department also helps in proper functioning of the activities of
business.
TASK 3
covered in PPT
TASK 4
covered in PPT
CONCLUSION
It has been concluded from the above report that internal and external factors have huge
impact on the activities of bank. These factors not only adversely affect there working but they
also helps to strengthen their position. SWOT analysis of the NatWest helps to identifies the area
where there is need to improve and provide solutions regarding them. All these analysis provides
opportunity to grow in future.

REFERENCES
Books and journals
Scheer, A.W., 2012. Business process engineering: reference models for industrial enterprises.
Springer Science & Business Media.
Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
designing business architecture. Elsevier.
Zikmund, W.G and et. al., 2013. Business research methods. Cengage Learning.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base
and framework for IT-enabled business transformation. Mis quarterly. 35(1). pp.197-
236.
Cavalcante, S., Kesting, P. and Ulhøi, J., 2011. Business model dynamics and innovation:(re)
establishing the missing linkages. Management Decision. 49(8). pp.1327-1342.
Zeng, L., Li, L. and Duan, L., 2012. Business intelligence in enterprise computing environment.
Information Technology and Management. 13(4). pp.297-310.
Doh, J. and et. al., 2010. Ahoy there! Toward greater congruence and synergy between
international business and business ethics theory and research. Business Ethics
Quarterly. 20(3). pp.481-502.
Casadesus-Masanell, R. and Ricart, J.E., 2010. From strategy to business models and onto
tactics. Long range planning. 43(2). pp.195-215.
Bharadwaj, A and et. al., 2013. Digital business strategy: toward a next generation of insights.
Gebauer, H., Paiola, M. and Edvardsson, B., 2010. Service business development in small and
medium capital goods manufacturing companies. Managing Service Quality: An
International Journal. 20(2). pp.123-139.
Herbst, U. and Merz, M.A., 2011. The industrial brand personality scale: Building strong
business-to-business brands. Industrial Marketing Management. 40(7). pp.1072-1081.
Online
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[Accessed on 17th November 2017].
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