Analysis of Business and Business Environment for Merrill Lynch

This report provides a comprehensive analysis of the business environment, focusing on Merrill Lynch as a case study. It begins with an introduction to the business environment and its impact on organizations, followed by an examination of different types of organizations, including private, public, and voluntary sectors, along with their legal structures, purposes, size, and scope. The report then delves into the relationship between organizational function and structure, highlighting the interconnections between departments like marketing, finance, and human resources. Furthermore, it applies PESTLE and SWOT analyses to evaluate the external macro-environment and internal potential of the organization, respectively, and explores the interrelationship between strengths, weaknesses, and external factors. The report concludes with a summary of the key findings and implications for Merrill Lynch's strategic management and sustainable growth.

Business and Business
Environment

INTRODUCTION.....................................................................................................................................3
TASK 1.......................................................................................................................................................4
P1 Different types of organization with their purpose.............................................................................4
P2 Size and scope of various kinds of organization.................................................................................6
TASK 2.......................................................................................................................................................9
P3 Relationship between organizational function and structure...............................................................9
TASK 3.....................................................................................................................................................12
P4 Application of PESTLE analysis to analyses external business environment...................................12
TASK 4.....................................................................................................................................................15
P5 Implication of SWOT analysis to identify internal potentiality of organization...............................15
P6 Interrelationship of Strength and weakness with external macro factors..........................................17
CONCLUSION........................................................................................................................................17
REFERNCES...........................................................................................................................................19

INTRODUCTION
Business Environment combinations of all forces, factors and institutions which are
external to and beyond control of an individual business firm but which application a significant
influence on the functioning and growth of enterprises. Additionally, it impact directly over
association decision making which influence positively or negatively over firm’s efficiency and
profitability (Shenkar, Luo and Chi, 2014). Moreover, it permit establishment to recognize or
examine its strength and weakness in order to embrace challenges or threat that supports them to
manage sustainable proficiency and growth. This report is based on Merrill Lynch that is one of
the leading financial service company established in the year of 1914 It deals into investment
management service, wealth management, private wealth managing with more than 2500 outlets
across UK. This report covers, different kinds of organization along with their legal structure,
size, scope, purpose, interrelationship between various business function. Implication of
PESTLE and SWOT analysis for analyzing internal and external macro environment.
TASK 1
P1 Different types of organization with their purpose
An enterprise is a process of dividing work into convenient tasks or duties, of grouping
such duties in the firm of posts of delegating authority to each position and of appointing
qualified manpower to be responsible that the work is carried out as planned in order to
accomplish common goal or objective. Along with this, every organization contains its own
purpose and legal structure which enable them to monitor or govern its business operation and
function for an attainment of high level of profitability in an appropriate manner. However,
setting up legal structure is one of the first decision during establishing a company as it defines
the way business is organized as well as allow them to determine legal obligation and can gain
better positioning within competitive marketplace. There are different kinds of organization with
its purpose and legal structure which are as follows:
Private – Merrill Lynch

They are legally distinct entities with their own assets, profits and liabilities, along with
this personal finances of any shareholders are protected by limited liability. Moreover, its shares
are not offer to general public. For acquiring deeper understanding of this concept, Merrill Lynch
is considered as it one of the reputed financial service company in UK which operate across the
globe with a high and best quality of products and services.
Purpose
The core goal of Merrill Lynch is to become the first and best choice of customer by
rendering high quality of products and services in an affordable price.
Legal Structure
However, some of the legal structure of Merrill Lynch are as follows:
Sole Proprietorship: It is regarded as simplest structure in which it consist an individual
personality who is responsible for entire business operation and function as well as obliged to
take all gain and loss by its own. Some of its advantages and disadvantages are as follows:
Strength Weakness
 It is easy or cheap to form and it
employ others which directly reflect in
enhancement of business sales growth
or function.
 Owners are fully liable, if business
debts become overwhelming the
individual owner’s finances will be
impacted.
Partnership: Under this, business entity or ownership is divided among two parties who
come together with mentality to share all risk, responsibilities, profit and loss equally in order to
achieve organization common goal in an effective and efficient way.
Positive Negative
 It is easy to establish as they have
limited external regulation that enable
them to modify legal structure based
on circumstances changes without any
 The liability of partners for debts of
business are unlimited as well as there
is a risk of disagreement among

hindrances. Due to this, they can bring
better working environment to their
personnel.
partners and management.
Corporation: It is considered as more complex and expensive than other business
structures. However, it is an independent legal entity, separate from its owners and such, it
requires complying with more regulations and tax requirements (Prajogo, 2016).
Advantages Disadvantages
 Under this, firms may be able to raise
additional funds by selling shares in
the corporation and also reduces the
cost of benefit it provides to
employees and officers.
 Starting a corporation requires more
money, time than forming other
business structures
Public
It is also similar to private limited companies, in the sense that they are legally distinct
entities with their own assets, profits and liabilities. But one difference is that they can freely
trade their shares to general audience as well as it can be listed on a stock exchange. In order to
acquire detailed information about this sector of company, BBC is more effective and suitable
firm which is a world’s oldest and leading broadcasting organization which is commenced in the
year of 1922 and it serve worldwide with a fair and transparency in trading their products or
services. Thus, BBC is governed by Executive board and BBC trust which help them to obtain
maximization of profit. The several types of legal structure and it’s in public sector are as
follows:
Purpose
Their main aim is to enrich people’s lives with programs and services that inform, educate and
entertaining by being most creative organization in the world. (Kljucnikov and et. Al 2014).

Voluntary
It is fully liberated from local and national government and distinctive from private
sector. The key function of its formation is to aid humanity and improve their life standard by
satisfying their demand and interest in an innovative or creative manner. To obtain added
knowledge regarding voluntary sector, World Vision is considered as one of the leading
organization in not for profit organization which is highly devoted to expand life style of a
company as well as find ways to eradicate poverty or injustice among community or societies. It
follows trust legal structure. Some of other structure are as follows:
Trust: It is governed or administrated by trust deed which set outs the objects of trust,
names the trustee and provides for an administration of trust. One of its advantages is that its
formation provides continuity in life of company even after the death of owner or trustee.
P2 Size and scope of various kinds of organization
Private – Merrill Lynch
Vision: To generate a healthy relationship with customer and offer them best and
attractive products for retaining and capturing large number of audience attention towards brand.
Mission: To provide distinctively global, integrative and personal experience by
providing best quality of products.
Business objectives: To become a global force in financial service industry by fulfilling
customer demand and interest and boost up their morale which add value to its brand image as
well as enrich its market share.
Size: It contains of 15,100 manpower who contribute their best performance to produce
high and best quality of products in order to gain competitive advantage as well as to sustain
within industry for longer period of time. (Rastogi and Trivedi, 2016).
Scope: Its contain huge scope as it deal into investment management service with 2500
outlets as well as several divisions like Merrill Lynch Wealth management, private wealth and
many more across UK.

Organizational structure: It follows hierarchical structure that help them to handle or
oversee all division’s work properly and can implement fast solution to business conflicts for
generating healthy working atmosphere.
Stakeholders: Its stakeholders are employees, suppliers, customers, civil society, and
materiality.
Public – BBC
Vision: BBC core vision is to create a world where each and every human resource be
informed and empower people live in healthy, resilient and inclusive communities.
Mission: The main mission of BBC is to grasp millions of customer through creative
mode of communication and trusted media so that they can help communities and renovate their
lives in a better manner.
Business objectives: BBC core goal is to get high level of progression by providing
ethical and precise evidence in order to escalation market share as well as to sustain within
competitive industry.
Size: It comprehends highly skilled or dedicated manpower of 35,402 who are allocated
with several shifts like part time, full time and they contribute their best into attainment of
increased level of sales growth and sustainable profitability ratio.
Scope: It has extensive range of scope as it delivers 10 network television services, 10
network radio services, 46 radio service plus an extensive presence. Along with this, it offer
range of carrier in the areas of journalism, broadcasting, technology as well as corporate roles
such as HR, legal finance and administration which enlarges its market share among an industry.
Organizational structure: It follows line organizational structure allow them to
implement fast decision making and maintain vertical relationship with all level of management
of company.
Stakeholders: Its stakeholders are employees, customers, government, and general public.

Voluntary – World Vision
Vision: Its purpose is to eliminate the poverty and injustice among community or society
and boost the life standard of people.
Mission: Their core mission is to renovate human life and afford them a healthier life
which is filled with justice, prosperity and love (Aithal, 2016).
Business objectives: To generate a world where an every individual can survive without
anxiety and poverty and can lead a life of justice, equality and abundance of richness.
Size: It encompasses 22,500 personnel who ardently work to eradicate scarcity and
inequality among community.
Scope: It consist great scope as it largely positioning over wellbeing of societies specially
children and compromise them education, shelter, food and clothing.
Organizational structure: It entails divisional organizational structure in which each units
are formed on the base of function, product, geographic territory, and project.
Stakeholders: The stakeholders are government, employees, charitable trust, and
association, public.
TASK 2
P3 Relationship between organizational function and structure
Each and every company is comprise of different departments and each of them contain
their own roles and responsibilities which make them diverge from other. These business
function are interlink with each other that enable Merrill Lynch to accomplish its goal in an
innovative or creative way for survive among competitive industry. The interconnection among
several Merrill Lynch departments are given below:
Marketing and Finance Department: Both these function has huge connectivity as they
require each other support. However, for publicizing the product or service within marketplace,
Merrill Lynch require adequate fund which help them to capture the attention of wide range of
customer towards their brand. Thus, in order to promote product efficiently, Merrill Lynch

marketing function demand fund from finance department which takes an initiative to evaluate
all expense and budget in order to afford full support to marketing division for promoting firm’s
products in an impressive and productive way.
Human Resource and Marketing: These two units plays a vigorous role as they contribute
towards accomplishment of goals. Moreover, every company desire for hiring highly skilled
workforce who can put its greatest effort in an organization. For this, they seek encouragement
from marketing function in which they conduct job fare, advertisement in newspaper, magazine,
campus recruitment etc. By this, human resource department can recruit vast skilled manpower
with the help of marketing tools which reflect Merrill lynch to improve its overall performance
innovatively and productivity (Aithal, Shailashree and Kumar, 2016).

Although, each and every business function are interrelated likewise organizational structure has
vital role in organizational function as it allow them to accomplish their goal in an effective and
efficient manner within prescribed time limit. Moreover, it help Merrill Lynch to uphold a
healthy relationship with all level of management which lead company to attain increased level
of productivity and profitability ratio. Yet, it contain various advantages and disadvantages
which are explained below:
Advantage Disadvantage
 It help them to oversee or monitor
each and every function’s work
certainly and can maintain a better
relationship with workforce of all
level of an association. By this firm
 In some cases, there will be a
probability of rising duplication of
work as well as delay in transitory the
information and getting answer which
directly affect over business volume of

can expand its proficiency and can
reinforce its profit margin.
sales and proficiency in a great way.
TASK 3
P4 Application of PESTLE analysis to analyses external business environment
It is procedure which benefit firm to examines its external macro environment and empower
them to create corrective course of action. Due to this, an organization can enrich its sales growth
and backing them to gain competitive edge effectually. However, Merrill Lynch and BBC
applies this constituent to their business function which is illuminated below:
Merrill Lynch Investment
Political: It is concerned with government policies, measures, stability of political
parties, interest rate, tax policy etc. which has gigantic impact over concern’s productivity rate.
However, according to recent modification in UK due to Brexit, it effect negatively over Merrill
Lynch as it demands UK to leave EU which become major challenging factor for company’s
profitability. Howver, Merrill Lynch tackle this issue by decreasing the cost of products like
mortgage, loan and other business service in other country like China, Romania etc. and assume
UK that help them to conserve their volume of sales and it directly replicate over its development
in proficiency ratio in a better method (Bohari, Hin and Fuad, 2017).
Economical: This factor comprises inflation, deflation rate, economic stability, exchange
rate, disposable income and many more that consequence over firm’s profit margin. Hence, in
regard of Merrill Lynch, it undertakes through an extreme recession which took place few years
ago and due to that it impacted negatively over customer purchasing behavior that became major
threat for firm to attain proficiency. However, Merrill Lynch overcome this negative issue by
putting their whole focus over digital sales which attracted large number of audience towards
firm and this activity helped Merrill Lynch to endure productively within competitive
marketplace during huge recession period in UK economy. Along with this, it benefitted every
customer as it enhance the buying behavior as well as provided them enough employment
opportunity which directly reflect in the increase in disposable income. Thus, Merrill Lynch
enables to acquire best positioning within competitive industry.

Social: Under this, it includes demographic characteristics, norms, customs, values of
population, population growth rate, lifestyle attitudes and many more which stimulus
prominently over association potentiality to accomplish their goal within prescribed time limit.
Furthermore, in recent years there was an increasing trend of income inequality which has
altered the power structure that has been persistent in the society for over last 6-7 years and one
of the main area which Merrill Lynch faces is that media outlet as it plays a crucial role in
influencing public opinion and thus it impacted company’s sales growth and development.
Hence, Merrill Lynch took this negative influence as an opportunity to boost their ability as they
announces innovative course of action for sales or marketing sector and also firm leverage the
trend of traditional and social media sector in order to build efficient marketing network. With
the help of this, Merrill Lynch is enable to retain huge audience and help them to enlarge its
productivity in an impressive way.
Technological: It is viewed with most recent innovation, advancement in technology etc.
that affect enterprise profit margin. In regard of Merrill Lynch, this aspect impacted greatly over
establishment sales growth as well as in enlargement of business effectually as wide range of
population were demanding for online shopping that menace company’s proficiency. Thus,
Merrill Lynch acquired this challenge or threat as a dais for improvement as it produces or
developed their own website for online trading which captured an attention of UK population
towards Merrill Lynch brand. Along with this, it facilitate with an option of providing their
reviews over company’s website regarding quality of products so that they make corrective
course of action in order to gain competitive advantage. Additionally, latest technologies based
innovation implemented by company provide a good insight into what competitors are thinking
and where sales or marketing industry business model future is. Due to this plan of action,
Merrill Lynch was qualifies to acquire sustainable profitability in a marketplace (Scolozzi and
et.al 2014).
Legal: Under this it involves government legislation, laws, rules, regulation and legal
procedure for organization which is enforced by government which effect association survival in
an industry. However, Merrill Lynch always proceeds one step forward to form a healthy
relationship with personnel by rendering them reasonable reward, equal opportunity regardless of