Business Environment Analysis Report: NatWest Operations

This report provides a detailed analysis of the business environment, focusing on NatWest, a major player in the banking sector within the UK. The report begins with an introduction to the business environment, differentiating between macro and micro factors and their impact on organizational operations. It then delves into an examination of various organizational structures and their objectives, using examples like Burger King and McDonald's to illustrate these concepts. The core of the report evaluates the positive and negative impacts of the macro-environment on business operations, including political, economic, social, legal, technological, and environmental factors. It further includes an analysis of both the external and internal environments through a SWOT analysis of NatWest, identifying its strengths, weaknesses, opportunities, and threats. The report concludes by summarizing the key findings and providing references to support the analysis.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1) Covered in Ppt..................................................................................................................1
P2 Covered in Ppt .................................................................................................................1
TAKS 2 ...........................................................................................................................................1
P3) Explaining Relations between different organisational purpose, their link with structures
and objectives.........................................................................................................................1
P4) Evaluating negative and positive impact of Macro environment on business operations3
P5) External and internal analysis to determine strengths and weaknesses ..........................5
P6 Relation of strength and weakness with external macro factors.......................................7
CONCLUSION...............................................................................................................................9
REFERENCES .............................................................................................................................11

INTRODUCTION
A business consists of people who come together to earn profits for each other. They all
work in order to gain success in market place. They try to compete in market for the purpose of
making profits. In addition, they provide various kinds of goods and services to people based on
their needs and demands ( Hillary, 2017). Business environment refers to the environment in
which a business operates and it consists of macro as well as micro factors. Macro factors would
include political, economic, social, legal etc. These are the aspects which affects business
directly and has a direct influence on workings of company, it is therefore of crucial importance
that management of organisation work in proper manner after considering all these factors into
account. Net West is a company operating in banking sector which is a very crucial sector from
the point of view of economy. It provides various services related to banking to its customers
within UK. The present report will throw light on various types of businesses as well as the kind
of business environment in which they operate for the purpose of making profits and growing in
market.
TASK 1
P1) Covered in Ppt
P2 Covered in Ppt
TAKS 2
P3) Explaining Relations between different organisational purpose, their link with structures and
objectives.
In this modern world the main aim of any organisation is to maximise high profit and
generate large amount of revenue at marketplace. Organisation needs to recognise various rivals
present in the market place and took initiative steps in order to enhance performance of
organisation. In order to attain various objectives of organisation, management needs to
implement new and innovative methods to perform various types of functions. There are
different types of strategies adopted by the organisation. These strategies implemented by the
different organisation in order to expand their structure and modify the various sector of
organisation. Net West is the deals with banking organisation who perform its work in private

sectors. In this approx 70000 employee working in organisation. They are having good
knowledge and skills about the banking sector. They put their effort in order to provide loans and
provide facilities to provide funds in order to perform various types of function in effective
manner. This is very helpful for organisation in order to various strategies in order to perform
different types of function in very planned manner. The main purpose of these organisation is to
attain goals and desire of organisation and sustain high position in the marketplace (Wack,
2017).
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Different types organisation and their structure and purpose are mentioned below:
Name of organisation Objectives of organisation Structure of organisation
Burger King Aims plays an important role
in order to provide direction
to organisation and also to its
employee in order to perform
their work in effective
manner. This organisation
concentrate on to implement
new and innovative design in
order to attract large number of
customer. It is necessary for all
organisation is to perform all
activities in short duration of
time in order to satisfy desire
of customer.
This organisation concentrate
on to retain strong relationship
to its customer for the long
period duration of time. The
main duty of manager is to
control all activities of
organisation in order to
provide qualitative service to
their customer. It aids to attract
large number of customer.
McDonald's It is leading food retail
organisation in all over world.
This organisation famous for
providing qualitative service
and products to various
country. This organisation start
its business in 1947. the main
objectives of this organisation
is to provide high quality of
products and services in order
to fulfil desire of customer. It
provide plenty of services and
products so that customer
needs not to stand in queue to
The structure of organisation is
based on the size and purpose
of of the work which perform
in the organisation. The
structure of the organisation is
termed as the plan which is
implemented in order to
perform different business
functions. It aids to attain the
target which is fixed by the
organisation. McDonald's
implement concise structure
by which employee working in
the organisation are well aware
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attain services and products. about their responsibilities and
their duties. It helps to execute
different functions of
organisation in effective
manner.
Although this organisation it deals in private sector and it also have some goals and
objectives. In order to perform various functions of organisation the manger of organisation
focused on the goals and objectives of organisation and employee perform their work
accordingly. It helps to attain advantages to compete its rivals present in marketplace.
NATWEST concentrate on provide various loans and funds to those employer who wants to start
up business venture and also have capabilities to return the loan amount with interest./ so
organisation took corrective measures in order to settle the loan amount (Zeng, Li and Duan,
2012).
P4) Evaluating negative and positive impact of Macro environment on business operations
The environment of any organisation should be dynamic and possess high quality of
facilities in order to perform different types of functions in effective manner to enhance the
performance of organisation. This quality gives effectiveness in the organisation. There are two
factors which impact the environment of organisation. These factors are like macro factor and
micro factor which influence various operation of organisation in effective manner. The
structure of the external factor are very complex and it is not controlled by organisation. So
management needs to implement changes in organisation itself in order to resolve the various
issues which are arises through macro factor. These factors affect the performance of different
functions of the organisation. Another factor is micro factor it plays an important role in order to
perform various functions of organisation. Therefore it is duty of the manager is to determine
the internal factor which impact the performance of organisation. These factor can be involve in
reduce the performance of organisation:
 Political factor: This factor concerned with the various decision taken by the
government in order to maintain stable and define organisation policies. Concerning with
the rules regulation of UK. There are sufficient political structure is being established in
order to start the business venture in effective manner. Nat West should recognise the
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various rules and regulation in order to make effective decision as per the norms which is
made by government of UK (Gilboy, 2016).
 Economic Factor: This is another element which related with GDP, rate of
employment, rate of interest. Rate of inflation, supply and demand of products and
services and many other factors. Which influence the organisation on long term basis and
short term basis. Considering example government of UK decided to enhance the rate of
interest which impact the business of the organisation for long time.
 Social factor: This factor is related with various types of culture, population, income
and other factor. It plays a essential roles in order to determine the various aspects in
order to develop the various products and services in effective manner. There are huge
amount of consumer in UK who have income of approx. $35000 per capita which is as
high as any other Nation. It aids to enhance the sales of different products in a systematic
manner (Avramenko, 2012).
 Legal Factor: There are various legal problem like rate of wage given to employee,rate
of labour, act of discrimination and many others. It is duty of organisation is to go for the
legal directives of which is made by the government of UK. It helps to maintain an
effective image besides their stake holder like employees, shareholders, investors,
suppliers and any others. It is very difficult to manage various operations according to
the legislation of UK.
 Technological factor: This factor plays a significant role in order to attain goals and
objectives of organisation. It also helps to growth and explore business in different areas.
Implementation of new and innovative technology leads to compete the rivals present in
marketplace. It also helps to perform different types of functions in short stipulated time
period. It helps to increase profitability of different products provided to consumer. It
aids to increase profitability of organisation. Nat West needs to evaluate the various
conditions in effective manner.
 Environmental factor: In present era, all organisation put their efforts tom attain
sustainable position in the marketplace. For this management needs to creates effective
environment to perform different types of work process in systematic manner. It plays a
significant role in order to attain the effectiveness in environment to increase the
performance of organisation. Different types of CSR activity which aids to attain goals
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and objectives of organisation. Nat West implement new and innovative technology in
order to create effective environment (Meiners, Ringleb and Edwards, 2014).
P5) External and internal analysis to determine strengths and weaknesses
It is essential for organisation to evaluate the internal and external factor which impact
the performance of organisation. These factor impact the profitability of and expansion of
organisation in effective manner. So it is mandatory for the manager is to prepare a effective plan
in order to accomplish different types of task in systematic manner. The organisation Nat West
concerned with banking sector and also aids to perform different types of task in stipulated time
period. Organisation determine the various external and internal factor in order to solve issues
with help of SWOT analyses. It is related with strengths, weaknesses, opportunities and various
threats of organisation. It helps prepare developing plan in order to inculcate with the challenges
in future. So manager of organisation needs to conduct SWOT analysis.
SWOT analysis of Net west :
Strength Weakness
 There are effective network to
distribute various products of
organisation to its customer in order to
maximise the profit and enhance the
sales of different product.
 Organisation put its branch in different
area where large number of people
resides in the society. It helps to stand
before the customer and also
accomplish different target in effective
manner.
 The organisation recruit employee with
high quality of skills and have better
knowledge about the work. It aids in
attaining success and expand the
business in effective manner. Net West
 The organisation is not able to resolve
the various challenges and issues which
are arises because of existence of new
competitor arrive in the marketplace
 the manufacturing processes
implemented by the organisation by
traditional method. So NetWest in
incapable to compete the external
market forces. Because of this level of
production is decrease.
 The planning related to organisation is
being not done properly it leads to
crate unbalance between the ratio of
current assets and liquidity.
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conduct various training session in
order to enhance the effectiveness in
performing different types of task. It
helps to attain compete advantage in
the marketplace .
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Opportunity Threats
 New taxation policy in UK is
implemented aids to create lots of
opportunities to the firms. It leads to
enhance the level of profitability. It also
enhance the productivity of products.
 There are lots of pros and cons in the
economy which affect the demand of
made by customer. Because they are
able to spend more money to buy the
new products. It leads to improve the
share of Net West in effective manner.
 The organisation get change to build
sustainable position in the marketplace
due to low rate of inflation. Because of
this credit funds are available at lower
rates. There are many other factors
which helps to creates the opportunity
to enhance the performance of the
organisation (arillo, 2013).
 In order to enhance the performance of
organisation the management of
organisation implement their own
strategies and policies. So it is difficult
to determine the various plan and
strategies in order to manage different
types of issues arise in the firms. It is
not necessary that implemented plan
and strategies are liable to enhance the
performance of organisation. As the
management operates in the various
nation.
 Implementation of new technology in
the marketplace is the largest threat it
may leas to reduce the performance of
organisation in the marketplace. It also
diminished the performance of
organisation in the marketplace.
P6 Relation of strength and weakness with external macro factors
Strength of organisation plays a significant roles in order to attain growth and exploration
of business in very diverse situation. Every organisation needs to determine the various functions
in order to expand and growth of the organisation. It helps to attain goals and objectives of
organisation in effective manner. Thus management needs to implement different strategies in
order to overcome from the different business in order to perform different type of functions in
effective manner organisation needs to implement suitable strategies in order to maintain the
effectiveness in various work processes concerned with organisation (Yu and Ramanathan,
2013). Net West bank needs to determine the all its strength and weaknesses in proper manner
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which are kinked to the external factor like political, technological, legislative, economical,
environmental, social. Management neds to implement different types of plan which helps to
create opportunity to implement new development opportunities in order to attain the goals and
opportunity of organisation. And helps to inculcate with different weaknesses of Net West and
it link to the external factor so manager should consider suitable steps to develop the
organisation (Hillson and Murray-Webster,2017).
Basis Strength Weakness
Political The main strength of the
organisation to have various
availability of products and
services at different locations.
It is essential to ascertain
strong political support to start
the business venture with the
help of government to
accomplish different types of
functions in stipulated time
period. It aids to attain goals
and objectives of the
organisation (Li, Wang, Wu,
Li and Wang, 2011).
Dues to variation in the
government leads to stability
influence the different business
and perform different
operations in effective manner.
It give negative impact on the
organisation. As the
organisation already suffers
from instability of current
ratio.
Legal This is the major strength for
business is to hire appropriate
applicant for the organisation
and to follow various rules
and regulations in effective
manner . So that employee
work perform their work in
effective manner.
Due to various modification of
policies is main weakness of
Net west bank. Bank have
incapabilities to manipulate the
changes and modification in
different regulation in effective
manner after perfectly after
implementation of changes
made by the Brexit.
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Economical The in order to fulfil the
demand and desire of the
customer the economical
condition of a organisation
should be good condition in
order to attain goals and
objectives of organisation
(Crane, and Matten, 2016).
Due to lack of better financial
plan the management of
organisation is unable to
operate various types of plan
in effective manner. So it is
unable to sustain strong
financial position in the market
of all over world.
Environmental It is related with strength of
organisation because
organisation concentrate over
the digitalisation it aids to
reduce the chance of wastage
of paper (Scheer, 2012).
In order to implement change
in the organisation affect the
various activities of the
organisation due to low ability
of financial plan.
Social Implement various steps leads
to give positive impact on the
people living in the society
such as providing abundant
amount of job opportunity,
implementation of these
practice aids promote various
ethics of work .
Due to lack of financial
stability and the decision taken
by the Brexit is being
incorporate a result of various
people loses their job. This is
the negative impact on the
organisation.
CONCLUSION
As per the above mentioned report it has been concluded that in this modern marker era
competition is so high at market place and each business organisation is concern on providing
high quality goods and services to their signification buyers in respect to satisfying their needs
and wants at market place. The major purpose of each small as well a large business enterprises
is to attaining high growth and profitability through gaining attention of customers towards their
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