Report on NatWest PLC: Business Environment, Structure, and Analysis

This report examines NatWest PLC, a leading international bank based in the UK, focusing on its business environment. It explores different organizational types, including public, private, and charitable sectors, and their legal structures. The report analyzes the size, scope, and structure of various organizations, including the merits and demerits of private, public, and charitable companies. It also details the interlinked relationships and functions of different organizational departments, such as finance and marketing, within NatWest. The report further assesses the positive and negative impacts affecting NatWest, incorporating both internal and external analyses. SWOT and PESTLE analyses are conducted to identify key factors influencing NatWest's operations and strategic positioning within the market. The report aims to provide a comprehensive understanding of NatWest's operational environment and strategic considerations.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Types and purposes of different organisations and their legal structures..............................3
P2 Size , Scope and Structure of various organisations..............................................................5
P3 Different organisations inter link relationships and their functions.......................................8
P4 Positive and negative impacts on the NatWest ....................................................................9
P5 Internal and External analysis of NatWest plc.....................................................................11
P6 SWOT analysis of the NatWest...........................................................................................14
CONCLUSIONS............................................................................................................................16
REFERENCES..............................................................................................................................16

INTRODUCTION
It is important for the business is to understand the environmental conditions that been created
in the market for conducting its successful operations. The environmental factors are those
factors that influencing the business activities such as its location, prices of commodity,
production and distribution system(Aguilar, 2017). So, it is very important for the business to
understand the components and factors related to it such as political, economical, social, cultural
and environmental factors that been creating during business activities. Both the internal as well
external constraints are affecting the business activities so business have to assess all such factors
while conducting its successful operations. The present report which have been selected is based
on NatWest PLC and having headquarters located in UK(Ayyagari and Maksimovic, 2016). It is
the world's leading international bank and having more than 44,000 branch offices across the
country. This report includes different types and purpose of organisation regarding public,
private and voluntary sector and their legal structures. It also describes about the impactful
factors that affect the business activities in form of positive as well as negative. The SWOT and
PESTLE analysis been also made to identify the internal ad external factors that affect NatWest
and its business activities.
P1 Types and purposes of different organisations and their legal structures
 Public organisations:The public organisation name ends with Limited only and these
organisational are also called governmental organisation and whose activities are
managed and controlled by government and local authorities. The public organisation aim
is not to earn profit but to provide services to its individuals and work for their benefit.

These are those organisations whose generally work in order to help down the society and
companies and provide them benefit so they can conduct their operations successfully
and sustain its business in long run(Batra and Stone, 2017). There area of operations is
also broad and they are serving down the various benefits in form of non economic to the
society. The public organisations conduct down their operations in different field not in
one field and this type of firm is set up and formed by the direct administrator and
government so they are working accordingly as per the directions of central government
and state government and there work is to collect down the tax from the local residents,
imposed duties on good and services and whatever they are collecting using that amount
in the field of economic growth ad development of the country. Moreover, there is
another form of public organisation who conducting outsourcing work where both the
private and public company comes together to conduct down the business operations and
contracting is done by both the ventures so they can share down assets and liabilities
altogether. The national health services is also a governmental organisation who is
providing various services in field related to health of individuals and also generating
various opportunities for them so operations and medical treatment is provider to the
individuals so they can recover from their diseases and conducting their working and will
not have to depend on others for their livelihood. The another example is World Health
Organisation who is renowned public health organisation working on international level
and they are been responsible for framing down the world health report and there key role
is to take down care of different individuals from different countries. Public Sector
Organisation are such companies which conducting their operations as per the directions
of central government and also contributing or funding by the government directly.
 Private organisations:These are those organisations which are owned, managed and
controlled by private individuals and entities such as sole proprietor, partners, investors
and so on. The aim of this organisation is to earn profits by conducting its operational
activities(Buchholz, 2016). It includes people in form of proprietors, shareholders,
managers, departments, executives and so on. There are different private organisations
whose working area is also different and by conducting its different operations for which
they set up through that way they are earning their profits and fulfils there objectives.
These are those organisations where sole proprietor, partnership firm, private business are

also its owners. The various profit and losses are to be decided before conducting
business and in the absence of partnership deed all the partners have to sharer there profit
ad losses equally. The different private organisations under UK are Mark and
Spencer ,Tesco and so on.
 Charitable organisation:These are those organisations that are set up for the charitable
purpose and they are conducting down various programs for the aim of collecting amount
soi by using that they can provide benefits to the poor individuals and also generating
various opportunities so that needy people get help from such organisations in various
forms. There aim is not earn profit but they are set up or conducting their operations for
the social and moral cause and working for the welfare of the people. The certain
examples are as Red Cross society, Red Crescent and so on.
P2 Size , Scope and Structure of various organisations
Private Company
Merits
 Private Company is a company which owned by private entities and these type of
organisations are attracts its capable customers.
 Generally, these business are owned and conduct by the private individuals who having
money and potential to do business.
 If private company want to wind up and afterwards it wants to sell their assets or
operations then in such case there are large number of buyer in the market to purchase its
business and assets.
 It having potentiality to earn more revenue and profit as compared to voluntary and
governmental companies.
 Proprietor want to sell its ownership they can easily sell in the market and selling can be
made easier in case of private ventures.
 All the activities and operations are managed and controlled by the private individuals
who are working and ownership posses in the hand of proprietor so he himself
responsible for conducting business operations which are performing under their
firm(Child, and Möllering, 2017).
 Private organisations can easily merge with larger firms and can easily takeover the
business of small firms.

 These companies need not to file any financial statements or register themselves under
the Registrar of Companies or take register certificate in any course and their financial
statement is not available to public.
Demerits
 There is essentially involved the chances of fraud, misrepresentations, manipulations
because it is owned by private individuals not involving the government.
 The registration procedure under this is very difficult as compared to governmental
companies.
 The have to fulfil down the various provisions and legal requirements which is provided
under companies act, and their requirements is completely different as compared to
public companies.
Public Company
Merits
 These are those companies which is owned, managed and controlled by government ad
the work which is performed under this, the central and state government is been
accountable for this work.
 There is not involved any chances of fraud, misrepresentations and manipulations
because the activities which are performed by an enterprise is controlled by the
government.
 These type of company providing development in the field of economic growth and also
boost up the country output.
 Whatever is performing by the government is for the development and growth of the
society not for the aim of earning profit.
Demerits
 There are so many rules, regulations, policies ad procedure under this which is formed
and implement by the government and all such things have to follow by the public
company otherwise dissolution and winding up chances will be arise(Davis and
Blomstrom, 2016).
 The low salary is given to the employees and workers because whatever they are working
for the benefits of society so the salary which is been provided to workers is not
beneficial for them and also will not able to meet their wants and satisfactions.

Charitable organisation
Merits
 They are working for the welfare for the people.
 They set up for the moral and social cause.
 The donations, grants, gifts which they receive is free from stamp duties and taxes.
 They generally need not pay down income tax.
 They can conduct down various programs and through that they can raise funds from the
government and local public.
Demerits
 They are not allowed to receive any benefit from financial institutions because they are
set up and working for the benefits of individuals as well as society.
 They have to follow the activities of trust act and have to follow the guidelines of Trust
Commission.
Types of organisations Public Private Charity
Size It having large size
and the work which is
conducting under such
organisation, the
government is
accountable for all
such work and limited
number of people are
working and
organisation is
working for the
benefits of society.
It having small or big
size is owned and
managed by private
individuals, investors
and they set up for
profit motive ad
investing is made by
stakeholder according
to the business and its
size.
It having small size
because there aim s
not to earn profit but to
give services to the
needy people and set
up for the social cause.
Scope The scope is very wide
because whatever they
are doing, doing for
the welfare for the
There motive is to earn
profit by selling their
products and services
in the market to their
There motive is not to
earn profit but to
provide services to the
individual, so they can

public and society. customers. improve their living
standards.
Structures They can be individual
or body corporate and
minimum one director
and maximum limit is
50.
It includes private
entities and having
minimum one director
and maximum no
limit.
It includes board of
directors and they are
essential for taking
decisions and solving
the problem of the
people and staff.
Objectives Their objective is to
increase the value of
shareholders and
maximise their value.
Their objective is to
produce eco friendly
products so that more
and more customers
will be attracted and
become satisfied.
Their objective is to
create the awareness
related to the child
labour, illiteracy,
unemployment and
poverty.
P3 Different organisations inter link relationships and their functions
The organisational structure is a structure that been set up under the organisations and it is
essentially framed because before conducting the working the pattern and order is decide that
who will conduct what activity and been responsible for that so that profitability and smooth
running will ensure. The cited business having its own pattern and structure to conduct down
work under different departments such as finance, marketing, human resources and so on. The
different departments follow the different pattern and structures to conduct their work so the
attainment of goal can be done. The different departments who are working under different areas
made the task easy and each one is having its own speciality and area of working(Eifert and
Ramachandran, 2015). The finance department conduct down the financial work such as
procurement of funds and effective utilisation funds and conducting financial operations in
support of their work, the marketing department is producing the product by fulfilling the market
conditions and also been responsible for delivery operation so that right kind of product been
delivered to the right customers on right time so they get maximum satisfaction on each course
and HR department is play an essential role because they tend to focus on their recruitment and
selection procedure of candidate and choosing the best suitable candidate for the business and the

HR manager is also been responsible for conducting training so that employees can develop their
skills, understand their job and conduct their activities in effective manner so that ensures
profitability and growth. Being the role play as a Bank it is essential for them to give essential
product and service to their customers. More than that it also having one more department that is
IT department.
The IT department main role is to manage down the computer system and any technical will
arise during course of work then their role is to remove down such technical aspects sdo
organisation can conduct their smooth running of operations. The main motive behind that is to
provide high qualifies services to their customers. All are playing their part to made down the
services effective so with the help of them company can increase its profits and maximise its
productivity.
P4 Positive and negative impacts on the NatWest
Positive and negative impacts :-
PESTLE analysis is the best tool to explain down the positive and negative impacts that arise on
NatWest(Haksever, 2016). There are several factors that impact the business and its operation
and they are described by way of PESTLE analysis such as political, environmental, social,
technological, environmental and legal and effect business operations directly or indirectly.
1.Political -
 These factors determine the extent to which a government may influence the economy or
a certain industry. For example a government can start new tax or reduce the tax. But in
business operation needs so many changes due to change in tax slab. Positive impacts are
business can grow in non manufacturing areas or state, if government start the new tax
slab like GST. Negative impacts are manufacturing hub will get less profit.
 Some business can grow up fast and some business grow slowly.
 If government change then business strategy also change, so all business operation needs
the new strategy to work in NatWest company.
 Increase opportunities but also increase business operation work load.
 Some business get the new ideas and some business can be wind up.
 In the loan require more documentations so its helpful for the company to get the loan
easily but organisation have to pay the interest rate which is increase their cost.

 Business operation run smoothly and healthy but responsibilities also increase and work
load will increase.
2.Economical -
 Determinants of an economy's performance that directly impacts an organisation and
have resonating long term effect.
 In the economic, rise in the inflation rate of any economy would affect the way
companies' price their products and services.
 Positive impacts are RUPEES can be strong, product will be best by good audit system,
loan services can be easily, from foreign exchange rates increase more opportunities, by
bank loan can start a good business easily, importance of import and export will be
increase(Highsmith and Cockburn, 2016).
 Companies' value can be increase or company value and profit can be decrease.
 High product rates are increases the profit level of NatWest plea.
 Negatives impacts are if share market go down then Rupees can be weak compare to
dollar, by audit, product can be wind up if found any weak point about any product, if
purchasing power of a consumer will increase and company can not able to supply then
market value can be decrease.
3.Social -
 These factors describe the social environment of the market and determine the cultural
trends, population analytics.
 In social analysis production is based on market trend, buying trends, cultural trends etc.
For an example we are manufacture the winter cloths or we are the textile organisation,
so this is a seasonal business and in this business we have to increase of our stock for
winter and there are sold in winter holiday and earn the profit but negative factor is if
stock will not be finished then cost will be increase and profit will be stop.
 People choices are increase but company needs more fund(Tapscott and Caston, 2017).
 From trend company look the new opportunities and invest in the good things and
according to trend.
 Cultural trends are important for organisation because stock will be out easily.

 Socialism can be demanding.
4.Technological -
 Business technology helps automatic back office functions, as record keeping, salary
process, payroll, accounting, execute the work according time.
 Business owners can use technology to reduce business costs and business owner can
also use technology to create secure environments for maintaining sensitive business or
consumer information.
 So many types of technology or software programs are use friendly.
5.Legal-
 The various laws and policies are formed by government and implement it for carrying
successful operations(Poon, 2017).
 The government also put pressure on the NatWest so they can restore down the British
Treasury in 2009.
 Single license is to be taken by banker to open different branches across the various part
of the nations.
6.Environmental factors
 It deals with the problem that creating in the working environment.
 The company have to alter there working pattern and procedure according to the
environmental factors and respond positively in the market.
P5 Internal and External analysis of NatWest plc
 Political factors:Political factors are those factors that affect the business activities of
NatWest so in such case the business has to considered down all the rules and
regulations. The rules formed by the government at both the level such as local and
national level. The company and its branches which conducting its operations in different
nations have to considered down the political factors and political changes for conducting
smooth operations(Kaufmann and Schankerman, 2017). The company which is operating
have to follow down all the rules, regulations, policies and laws. Company follow all
such things to avoid down the restrictive trade practices and procedure. The different
political structure in form of federal, unitary and both and every country state follow its
own structure which they cover. In today situation NatWest is fighting for its survival and

giving support to all the other banks which come under their intervention. Due to fear of
recessions the European central bank, US federal reserve, Bank of England each one have
cut off there interest rates of 0.5% in case of emergency. Due to there cut off under
interest rates the stock market have to faced down such trouble situation. However, the
NatWest did not get any help from the UK government in such crisis situation.
 Economic factors:These factors are also affecting its operations. The economic factors In
form of inflation, deflation, exchange rates, interest rates are also affected its price,
growth, profitability and competition. The company have to conduct down its operations
by focussing on certain factors. It is very important for the NatWest company to evaluate
and monitor those economic factors while conducting its operations. If any economic
conditions arise in form of negative manner that will impact badly on company and its
consumers. The marketing manager is essentially responsible for it so it is necessary for
them to understand the relationship and also have to assess down the working conditions
and changes that have been involved in the market place.
 Social factors:The company what is serving should serve according to the demographic
conditions that been creating in the market. The company serving as per the taste,
fashion, preferences and attitude of the consumers. So, It is essentially for company to
evaluate down the changes that been creating and provide the services accordingly so the
customers receive maximum satisfaction every time(Keiningham and Evans, 2013). The
company producing and serving by considering out the demographic factors and also
bring changes time to time. The certain condition help down its users in buying there
product and it also tells them whether they can buy it in cash or credit. The expectation of
people will be higher due to changing in their life style pattern. In today's period the
people demand and expectation is very higher so for that they are earning more money.
Due to more money the demand for banking services is also increasing so in such case
the NatWest bring two investment plans in form of basic investment and pension assets
for their consumers.
 Technological factors:The technological plays an important role because this play an
important role in producing and developing the product. It is the most important factor
for business because through technology the NatWest produce goods and availed services
to its customers by providing satisfaction to them. It also plays an important role because