Analysis of Business Environment: NatWest Report (BUS101)

This report provides an in-depth analysis of the business environment, focusing on NatWest as a case study. It begins with an introduction to the concept of the business environment and its impact on organizations. The report then explores different types of organizations, including public, private, and voluntary sectors, examining their purposes, legal structures, sizes, and scopes. A significant portion of the report is dedicated to analyzing the interrelationships between various business functions within firms, using NatWest as a primary example. The report also touches upon the importance of adapting to changes in the business environment, highlighting the dynamic nature of market forces. Finally, the report concludes with a summary of key findings and references to supporting literature, providing a comprehensive overview of the subject matter. The report covers the structure, objectives, and the impact of different business environments on the firms.

Business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Different type of organisation, their purpose, legal structure, size and scope............................1
TASK 2............................................................................................................................................4
Relationship between functions of various firms........................................................................4
TASK 3 & 4.....................................................................................................................................6
Covered in PPT...........................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
In attaining the success of each and every business depends on the environment which
they are providing to their employees while doing or managing work by using functions. When
managers and higher authorities wants to make changes by using appropriate policies or
regulations. They have to use appropriate technology so that they can update their existing
products and services which they are offering to the consumers (Ahmed, Aamir and Ijaz, 2011).
Business environment includes the internal as well as external environment and this will having
an impact on the functioning of business as it includes consumers, suppliers, competitors and so
on. Environment of business is dynamic in nature and that means they have to keep on changing.
Present report is based on NATWEST is a large as well as retail bank in UK. In the present time,
NatWest and RBS hit occasional infringers with the overdraft on a daily basis (Business and the
environment, 2017). In the below mentioned report, discussion on different type of business
organisation and their size and scope. Along with this demonstration on interrelationship
between different functions and it should be link with the structure of business entity. Moreover,
proper analysis should be demonstrated by adopting different tools and techniques so that they
cannot face any obstacles in attaining targets.
TASK 1
Different type of organisation, their purpose, legal structure, size and scope
Organisation are divided into three parts and all the entities having different purpose, size
and scope as well as legal structure which are:
Public sector business entity
These are the firm which are owned along with the regulation should be done by the
ministry bodies. It involves the different type of ministry bodies which includes national, other
agencies as well as local. It having a aim to use available resources and provide benefit or
advantages to social people (Auzair, 2011).
Legal structure: There are different kind of public sector which includes
Central government is the essential regulatory body of country. In UK, ministry bodies
having a power to make or prepare new rules and regulations for the firms so that they can do
best work and these policies or regulations should be share by central along with the state
government.
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State government includes the power and that should be share and it is political in nature
with national government. They have to put proper control on the activities (Barnett and
Salomon, 2012).
Local government is also a form of ministry bodies which prepare laws and regulations
for small areas includes town or city. These regulatory authorities assist in putting proper control
on the specific areas. They can make or generate distinctive policies and that should be follow by
every individual.
Size and scope: In private sector, Transport system in London is a organisation which is
accountable by ministry body. The budget was £11.5 billion in 2015 – 2016 and the funds which
are remaining will get or earn by financial earning, cross rail resource, financial earning and so
on. Mission of the business entity is to defend environment along with the decrement in the
crime fear (Boons and Lüdeke-Freund, 2013).
The main objective of London Transport is to do improvements as well as developments
by using the strategies as well as policies which will assist in delivering benefits to members of
community.
Private sector organisation
In this, entities are controlled as well as managed by the individuals. The main purpose of
this firm is to earn maximum profits. There are some type of private sector firm which includes:
 Partnership
 Franchise
 Sole Traders
The main aim of the private sector business entities is to improve their business in the
market at a time of high competition. This will assist in increasing the performance and
productivity by boosting the sales (Borio, Drehmann and Tsatsaronis, 2014).
Legal structure: This is divided into four parts which includes:
Sole trade: These are the business who are run by the individual person and they are
liable to pay all the debts as well as credits. But on the other side, it having a disadvantage that it
requires lot of investment.
Partnership: In it a type of business which are run by the two or more person with the
mutual understanding. Partners share their profits and losses in the ratio which are decided by
them and it was written on partnership deed as it is helps in resolving all conflicts.
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Limited companies: It includes the liabilities of the staff members which are limited
according to their share. It includes two type of business entities which involve public and
private company.
Cooperatives: It is also a type of firm which is run and controlled by the person for
attaining maximum benefits. It is based on one vote and contribution needs to be done on the
basis of their shares (Bryman and Bell, 2015).
Public limited companies: It is comparatively more larger type of joint stock entity as
compare to the private limited company. It is briefly known as P.L.C. and is governed by the
Board of Directors. Private limited companies can also become PLC by altering its memorandum
and articles of association and later re-submitting them to the registrar of the entity.
Size and scope: NATWEST is a private bank in UK. They provide different financial services to
the consumers such as loans and insurance services. This bank have 6.625% share price in the
London stock exchange.
Mission of the business entity is to deliver best financial as well as insurance services to
the consumers which assist in fulfilling the needs and wants in the proficient way. The interest
rates on which they are providing services should be at cheaper rate so that everyone can afford.
The vision of NATWEST is to serve best services to users and on the basis of that trust
should earn and also focus on their personal needs as well as create the value. This will assist in
providing satisfaction. This will help them in increasing their goodwill (Chang, Hughes and
Hotho, 2011).
The main and fundamental target is to improve or increase their market share along with
the profits by offering or delivering better financial services. If NATWEST wants to attain their
goals and objectives then this will definitely helps in reaping that in appropriate manner. When
they become successful in increasing the sales then this will aid in boosting productivity and
proficiency as well as attain success among their rivalries (Macro environmental forces, 2017).
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Voluntary sector
It is a type of enterprise which is not owned by the individuals and its another name is
not-for-profit business entity. They deliver different benefits to community and in this
individuals are not distributing their profits. In this type of organisation, they have to set their
own goals as well as objectives and also develop some schemes along with the plans so that they
cannot fulfil in a appropriate manner (Chavis, Klapper and Love, 2011). It also includes the
charitable organisation as it is a part of not for profit firm. They deliver charity to the individuals
and fulfil their needs and wants. The purpose of this business entity is to deliver benefits to the
whole society so that they can attain success along with the advancement.
Legal Structure: This type of organisations are run by unpaid management committee and are
not present for earning. They are rather started with an objective to bring social change in the
communities. There are four main structure of it namely, trust, unincorporated association,
company limited by guarantee and charitable incorporated organisations. Some other
constructions includes community benefit society, co-operative society, community interest
company and royal charter bodies.
 Trusts- They are set up to manage money for a clearly defined aim. Such organisations
create relationships with three parties; the donors of the value added to their trusts,
trustees who are the owners of the trust property and the beneficiaries who are the people
who will receive benefits from the trusts.
 Unincorporated association- This voluntary business association is more suitable for the
small groups, short-term objectives and low income. They do not need to employ
workers.
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 Company limited by guarantee:- There are no shareholders in this structure and thus, the
profits are transferred back to the company's fund and re-invested on other functions.
The main advantage of this the includes the separate legal identity, liability, democracy,
ownership of money/property, borrowing money and registration process.
Size and scope: Not – revenue driven organization are essentially subsidized by foundations and
donations. In entire world, there are just about 3.5 million NGOs who gave their administrations
to the whole consumers. Alongside this, they never partition their offer between individuals.
Mission of this kind of firm is to offer security to people identified with their lives. Alongside
this, they need to diminish poverty line in the whole world, with the goal that they can enhance
economy of nation. Furthermore, they need to accomplish social equity. There are some
fundamental goals of NGO are talked about as beneath:
 Individuals from firm needs to offer instruction to people which will aid their prosperity,
headway and additionally development (Chesbrough, Vanhaverbeke and West, 2014).
 Basic point is to give medicinal help to people, subsequently they can diminish illness in
state.
 They give exhortation in allowed to poor people, which might be identified with lawful
prerequisites.
 Fundamental point of NGO is to mastermind structures, accordingly, individuals can
without much of a stretch run healing centres, schools and moreover colleges.
Primary sector is concerned with the extraction of raw material and it covers fishing, farming
and mining. Further, the primary sector involve the extraction of raw material and mainly the
type of worker who are included in this sector are coal miners, hunters and farmers
Secondary sector involves the transformation of raw material into goods. Further the
development of this sector is depended on the demand for the goods and foods. For example the
type of employees who are included in this are factory worker, craftsman and seamstress.
At last tertiary sector which consider the supply of services to consumers and business, This
provide services to business and general people. Therefore, it includes retail, sales and
tansportations.
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TASK 2
Relationship between functions of various firms
NATWEST is a large retail along with the commercial bank in UK. They provide
financial as well as insurance services to the whole public. Business entity follow hierarchical
structure for offering services. According to the structure, duties, responsibilities, positions along
with the obligations are to be distributed in a proper manner (Crane and Matten, 2016). In the
firm, higher department and authorities having more duties and responsibilities than the lower
level division.
There are different type of organisational structure that are divisional structure and matrix
structure. Divisional structure basically is used within the large companies and in different
geographic area. The main benefit of this stricture is that can met more rapidly and more
specifically and it costly because of its scope and size.
On the other side matrix structure are a hybrid of divisional and functional structure. Further it
can be power struggle it is so because there are most of the area within the firm that allow dual
management
There are different objectives of NETWEST includes:
 Manager of the firm wants to improve their business and expand market share so that
success can be attain.
 It is necessary that they have to deliver effective quality of services to the users but at a
affordable price.
 They have to increase their revenue by getting high return from their shareholders.
 It is a responsibility of the manager and employees of NATWEST to provide every
financial instrument to their customers so that they cannot face any issues.
 They have to reduce or decrease their wastage as it helps in protecting the environment in
the best way.
In organisation, they are having different departments and these are helpful in fulfilling
the demand of consumers (Demil and Lecocq, 2010). These departments having distinctive
purpose. These department should follow appropriate structure as it helps in delivering better
services. There are different kind of organisation function which includes:
 Sales and marketing: It is basic for firm to direct research, in this way, they can fulfil
needs of necessities of their purchasers. For above expressed reason, they can make a few
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procedures, such as valuing, deals and moreover limited time. It is necessary as well as
essential to them to alter their present services which will help them to enhance their
deals. For deals and promoting office, there is excessively need of speculation,
subsequently they can do satisfactory marketing of their stocks and administrations.
 Human resource: Central motivation behind this division is to oversee human resource of
NATWEST. In the event that chief of firm needs to upgrade execution of their staff
individuals, at that point they can give training to staff members. Alongside this, business
needs to give better workplace to their representatives, as result to, it will help in their
maintenance and they can finish their work all the more successfully and inside time
span. Human asset's boss needs to motivate their work and for this, they can cook them
some extra rewards or advantages. Henceforth, it is must to render reserve to this
division, so they can guide some motivational and preparing program for their labourers,
which will help them to enhance their work execution (Edquist, 2010).
 Finance: It is must for administrator to keep up records of firm in a successful and
proficient way. On the off chance that they need to raise support for them, at that point
they can take help of offers. On a very basic level, this unit is associated with others, as
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Illustration 1: Organisational Chart
Source:

their primary point is to make spending plan for association. Alongside this, it is
fundamental for them to keep up appropriate records about all earnings and additionally
consumptions. Earlier duty of this office is to convey spending plan for every single unit
and they need to tail it in a sufficient way. Also, they need to settle pay roll and pay rates
to their works.
 Production: It is essential for the managers of the firm that they have to utilise
appropriate resources in the profitable manner. They have to use correct methodologies
and strategies so that they can deliver better services (Helms and Nixon, 2010). If
employer and manager of NATWEST wants to decrease the cost which is unwanted and
for that they have to deliver training and also guidance so that they cannot face any issues
in meeting their objectives. If they want to reduce the cost then appropriate budget should
be provided by them.
 Administration: This department having own purpose that they have to provide proper
assistance to the person who are working in the business entity. They have to follow
appropriate laws as well as regulations as it helps in managing and controlling the work
in the appropriate manner so that all goals and targets are attained by them. This division
of NATWEST having main responsibility is to collect or gather essential data or
information by doing research and should organise in a proper and appropriate manner.
 Research and development: It is also a important and essential department as it helps in
identifying and analysing the needs and wants of the consumers and according to that
they have to modify their services which will assist in reaping targets as well as
increasing profits. They have to use appropriate budget as well as fund so that they can
attain targets in the appropriate and proficient manner (Grimpe and Kaiser, 2010). They
have to use their strategies according to the rivalries in marketplace so that they can boost
their market share and attain success in the market at the time of high competition.
These are the departments and they have to follow appropriate structure which will assist
in reducing cost so that targets can be attained.
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TASK 3 & 4
Covered in PPT
CONCLUSION
After summing up report, it has been interpreted that appropriate and best environment
should be providing by the managers to their staff members which will helps them in providing
motivation so that they can deliver best products to their services users. If manager provides best
environment then this will succour them in managing all activities which will enhance the
goodwill of firm. Correct relevant tools should be adopted by the manager of NATWEST so that
analysis and evaluation needs to be done such as Swot and Pestle. If these equipments are used
by them then this will helps in identifying and analysing strength and weakness so that workers
cannot face any issues in reaping the goals and objectives which are pre decided by the higher
authorities of NATWEST. The staff members and managers have to use appropriate organisation
structure and also have to maintain relationship with the members of other departments which
assist in delivering better and qualitative products and services to consumers and provide proper
satisfaction in the market when they are facing high competition. If the business entity wants to
expand their business then they have to proper research and according to that services should be
delivered which aid in boosting their brand image in the market.
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