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Business And The Business Environment

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Business environment is a combination of all individuals and various other factors which affect overall business performance and it's sustainability. There are several factors like suppliers, government, consumer group, competitors, economic conditions, technology and various other institutions that affect functioning of business.. Present study has been conducted on, European Metal Recycling which is engage in supplying of resources by recycling scrap metal. This company is a World's leading metal recycler and offer their services to local independent. This organisation  can become client of Yorkshire Bank which operate there functions as a loan, mortgage and other business services.

According to scenario, discussions have be made on different types of enterprises in London. This bank was established in the year 1859 and headquarters in Leeds, England. This report defines overall scope of organisation their interrelationship with other organisation department. Internal strength and weakness of business and positive and negative impact of macro environment upon business functions is discussed in this project. In addition to this, different types of organisation with their legal structure are also examined (Crane and Matten, 2016).


P1 Different types and purpose of organisations

 There are various organisations like public, private and voluntary that are established with different aims and objectives. All these organisations are divided into various factors like size, scope, workers and company turnover. In this regard, three major business structure are briefly described below:

Public Organization

Public organisation is an essential part of country economy and are controlled by central, state and local government bodies (Vaiman, Sigurjonsson and Davidsson, 2011). There are different types of public sector organisations like, departmental undertakings and government companies that aims towards satisfying consumer demands. Companies in public sector mainly focus on serving interests of general people rather than generating more profit. In this context, chosen public organisation here is Crown Prosecution Service which is a public prosecution agency.

Purpose Public Organisation:

Crown Prosecution Service organisation purpose is to conduct criminal prosecutions in England and Wales. This organisation provides their services as a legal adviser to police and other investigative agencies. This organisation functions their activities in Secondary sector as they take raw information that are generated by police and then advise them further.

Legal Structure of Public Organisation:

Legal structure of crown prosecution services is of higher level.  In their organisations all process of examining police evidence and  decide where to take criminal proceedings are done by few people who occupy next tier hierarchy. In this organisation few number of superiors exist. It helps in making effective decisions and formulate plans accordingly. This methods is suitable to communicate and share task effectively in order to generate efficient results..

Private Organization

Organisations that are comprised in this sector are owned and controlled by individuals and groups (Chetwood, 2014). Companies in this sector mainly run their business functions to make profit and raise funds. Some examples of private sector business are sole traders, partnerships and franchises. In context with this, company which is chosen here is European Metal Recycling  which deals in providing ferrous and non-ferrous metal recycling services.

Purpose of Private Organisation:

European Metal Recycling limited is global leading metal recyclers, they provide total waste management by converting scrap metals into best effective products and services. Main purpose of this organisation is to save environment by providing effective environmental consultancy through services provided by them.

Legal Structure of Private Organisation:  

Legal structure of European Recycling is in which business owner occupy top position and their structure is like pyramid. In this structure top executives have highest position and middle level manager have mid position.  In European recycling their managers take effective decisions and then formulate appropriate strategies. In this organisation vertical chain of structure follows which help to effectively communicate plans and policies..

Voluntary Organisation

These are non-profit organisation that are mainly established to deliver welfare services to local communities (Gharajedaghi, 2011). Companies in these sectors did not work to generate profit but to provide basic necessities services to populations. In this context, organisation chosen here is Oxfam , which is an charitable organisation and aims to alleviate global poverty.

Purpose of Voluntary Organisation:

Main purpose of Oxfam, is to erase global poverty. This organisation provide relief to people who are facing poverty and injustice. They provide various tools to people and help them to become self- supporting. They perform their functions in primary sector as they gather raw material like food products and clothes, pack them and deliver it to people who are in need.

Legal Structure Of Voluntary Organisation:

Voluntary organisation legal structure consists of unincorporated association, trust, community interest company, industrial and provident society.

A trust:

 In a trust people work in order to manage and provide effective fund to do welfare of a community. In this trustees are the person who are liable for contract that are set on the behalf of trust.

An Unincorporated association:

It is a collection if individual in this there are no such legal existence. All legal proceeding that are taken are basically on the behalf of groups.

P2 Size and Scope of different types of organisations

Business environment is sum total of internal and external forces that influence functioning of business structure. Different dimensions of a business organisation are depended on different factors (Gilboy, 2016).  Every organisation has different size, scope and structure and have certain purpose to accomplish their goals and objectives. Structure of different organisations are briefly described below:

  1. a) Private Organisation: These organisations are owned and controlled by individuals or group of individuals and aims towards achieving high profit. They deliver products and services by evaluating consumer needs and requirements. In relation to this, European Metal Recycling is being chosen over here in private sector.
  • Background: European Metal Recycling Limited was previously known as Nobledrift Limited. They changed their name to European Metal Recycling in the year 1994. This company was originally incorporated in 1994 and are Warrington United Kingdom based organisation.
  • Product and Services: European Metal Recycling limited offer metal recycling services like, products related to steel, cable granulation and mixed copper granules. They provide services related to turning of scrap into best recycled products.
  • Size: Company is having wide area of servicing and employs approximately 4500 people at 180 geographical locations across the globe.


  • Vision: European Metal Recycling vision at recycling scrap metal to preserve and supply resources.
  • Mission: Company have remarkable mission that is to provide best quality recycle products and become most reliable and financially strong market leader. They have magnificent thought that is to grow even in extreme difficult economic situations and keeps on saving environment by providing effective corporate social responsibility.
  • Objectives: European Metal Recycling main objective is to find different ways to improve and keeps on adding value and do right things for their employees, customer and environment.
  • Structure: European Metal Recycling has 1800 offices worldwide and it is one of the leading and respected sector in United Kingdom.
  1. b) Public Organisation: Public sector organisations are owned and controlled by central, state or local government (Yu, and Ramanathan, 2013). They provide their services in order to satisfy consumer needs in effective manner.  Crown Prosecution Service organisation is a principle public prosecution agency. They conduct criminal prosecutions in Wales and England.
  • Background: In the year 1962 Royal Commission to set up independent prosecution department to avoid same officer to invest and prosecute cases. So in 1986 Crown Prosecution Service established and starts operating their functions as a legal adviser.
  • Products and Services: They deliver legal advice to police and other investigative agencies.
  • Size: Company manages more than 800,000 prosecution and have ample of 6,900 staff and 2,900 solicitors and barristers.
  • Vision: Crown Prosecution vision is to be independent and fair. They respect their colleagues and public and set their clear standards about services.
  • Mission: Mission of this organisation is to behave professionally and strive for excellence.
  • Objectives: Main objective of this organisation is to work as one team and seek new and better modes to deliver effective services to public.
  • Structure: Crown prosecution works in partnership with courts, home office, police,  ministry of justice and various other agencies. In addition to this they have diverse workforce locally and nationally.
  1. c) Voluntary Organisation: These are non-profit organisation that are mainly established for society welfare. In relation with this, Oxfam is chosen over here in Voluntary organisation.
  • Mission: Oxfam mission is to tackle and challenge root of poverty causes and create various solutions for the same.
  • Vision: Oxfam vision is “ World without poverty”. They aim to enhance effectiveness of locals  by assisting them to develop their structures.
  • Products and Services: Organisation mainly focus on development work and humanitarian work. They perform activities by providing medical care and ventures to benefit locals.
  • Size and Scope: Oxfam is mainly a confederation of 20 independent charitable organisations that focuses on eradicating poverty and provide extensive services to locals worldwide.
  • Objectives: Organisation most important objective is to eradicate poverty globally and bring moment for change and empower people in order to make them self dependent.


P3 Relationship between different organisational functions and their link with organisational objectives

Every organisation has separate department who perform their business functions effectively (Zeng and Duan, 2012). Despite of having different functions purpose of all these departments are same that is, to achieve growth and increase sustainability and profitability of business unit. It is bit easier to establish any business, but it is much tougher to maintain its sustainability.  In this regard, it is important for chosen organisation European Metal Recycling to perform their business functions like finance, marketing and human resource effectively to increase their profit. Relationship between different organisational functions in European Metal Recycling are mentioned below:


(Source: Organisational Chart, 2019)

Marketing Department:

Marketing is related to conducting research and promote goods and services in a marketplace. Marketing includes promoting goods and services in a marketplace in order to attract attention of consumer and increase profitability of a company. It is essential for marketing manager to implement extensive techniques and formulate appropriate plan. This will benefit employees in marketing department to conduct their research in effective manner.  It is important for European Metal Recycling marketing department to perform their functions closely with other department to ensure stability in business operations (Türetken,  2011). For instance, in this organisation marketing department need to perform their activities relatively with production department in order to make sure that effective research is planned accordingly to satisfy present and future consumer needs. Marketing department can set deadlines so they can get finished products as soon as possible to gain competitive advantages.

Human Resource Department:

Human resource deals in recruiting right candidates for right job. Human resource department is a backbone of every organisation as it provides effective employees which is the key source of company growth and productivity. In relation with this, European Metal Recycling human resource department is inter related with other department to ensure growth and stability. For example, HR department helps marketing team to find out various tactic in branding and promoting. They help production department in order to come up with innovative and new products ideas and set effective production targets. This will benefit organisation to increase their quality of products.

Finance Department:

Major function of finance department is to provide financial security and stability to business organisation. Finance department is known as blood of any organisation to operate their business activities smoothly. In relation with this, it is essential for European Metal Recycling finance department to closely relate with other departments in order to find out any kind of budget and financial need related to promotion, research and distribution. For instance, finance department in this organisation is inter related with marketing department to examine funds required by them to perform their branding and promotional activities (Saleem,  2017). They also need to ensure that all departments in the organisation perform their work within allocated budget. This will reduce wastage of unnecessary cost and firmly promotes organisational profitability.

Hence, in order to maintain effective sustainability and create proper working chain in a company business structure it is essential for managers to evaluate and make appropriate plans. It is also necessary for them to formulate and examine needs and wants of every department. Thus, by keeping an update about each and every requirement of different department prevailing in organisation management can ensure their remarkable productivity and growth (Wack, 2017). This will not only benefit organisation to increase their profitability but also help employees to enhance their job performance.

In Crown Prosecution Service horizontal structure are follow by their management. In this structure top level executives are on higher authority and mid level executives are on middle level. In European Metal Recycling their management follow vertical structure in which top position is taken by higher one. In addition to this, there structure are of pyramid form that facilitates effective communications and efficient decision making power.


P4 Positive and negative impact of macro-environmental factors on business operations

In order to satisfy consumers and expand area of services it is essential for Yorkshire Bank to determine their internal and external factors. Evaluation can be done with the help of PESTLE that are firmly described below:

Political Factor:

Political factors includes rules and regulations by government. All factors included in this can put adverse impact on business in so many ways. It is essential for managers to address all these factors and make effective decisions to decrease impact of all political factors.

Positive Impact:

Political factors can influence emergence of new technologies. It is essential for an organisation to be ready in order to deal with outcomes of politics. As it will benefit in trade control, data protection law, environment law, employment law and tax policies.

Negative Impact

As there are periodically change in government regulation this can results in mitigation of risk (Sekaran and Bougie, 2016). This can become an obstacle in organisation growth. Political factor can affect decision making process of an organisation.

Economic Factors:

Economic factor can help or hinder business organisations to achieve their objectives. Consumer behaviour, banking, employment factors and interest’s rates are some of the economic factor that affect business functioning.

Positive Impacts:

If a country is economically strong and people have balanced standard of living then it will make population to buy various goods and services. This will automatically increase company sale and comparatively results in enhancing their profitability.

Negative Impacts:

Economic crises and decrease in buyers power of purchasing results in adversely affect in business productivity rate.

Social Factors:

Social factors can impact on overall business functioning. Some of these factors are, economical, environmental, technological, legal and ethical.

Positive Impact:

By taking care of society cultural belief system and practices their customers and traditions company can increase their brand image.

Negative Impact:

If an organisation does not follow CSR activities in appropriate manner then it will become hard for them to run their business functions effectively.

Technological Factors:

These are externally generated changes in the area of technological process. Technological factors can negatively or positively  affect business function.

Positive Impact:

With the advancement in technology company can increase their quality of productions and functions nationally and globally.

Negative Impact:

 As technology is dynamically changing in current scenario. So, in order to implement various new technology lot of cost is required by organisation

Environmental Factor:

This factor can affect any type of business whether it is small and big operating business unit. This factor can collectively impact on functioning of business. Environmental factors include  risk in climate change, geographical change in location and socio culture change.

Positive Impact:

Company can use eco-friendly structure in their business organisation for examples furnitures and machines to save environment.

Negative Impact:

Climate change and frequent frequent change in geographical locations can affect performance of employees.

Legal Factor:

As competition in  market is continuously increasing, it is essential for Yorkshire Bank to abide all legal laws and regulations laid down by government in their particular area of working. This will help them to start their business in new market segment.

Positive Impact:

If an organisation timely take care of every legal rules and regulations that includes employment safety and heath safety act, it will benefits them to create positive working environment in their workplace (Sekaran, and Bougie, 2016).

Negative Impact:

As government periodically keeps on changing and modifying their laws and regulations. It will become hard for an organisation to cope up with all legal regulations this will results in slow down of business functions in day-to -day operations.


P5 Internal and External analysis of specific organisation in order to identify strength and weaknesses

Yorkshire Bank is an UK based organisation and deals in intensive range of services which includes financial services, commercial banking, marketing personal and other financial product and services (Vaiman,  Sigurjonsson, and Davidsson, 2011). In order to identify strength, weaknesses, threats and opportunities of this firm, it is essential to conduct SWOT analysis which is briefly done below:



· Yorkshire is a trading division bank operating in England.

· This banking unit is having strong balance sheet which results in high capitalization.

· This banking division is having net interest income up to 14.6% to 769 million euros.

· Yorkshire bank is having well trained and professional manpower that results in efficiency in services provided by them.

· Most of their branches are fully computerized and technically developed.

· Yorkshire bank provides online banking facility to their customer in order to enhance their quality of services.

· In order to train their employees in best suitable manner. Yorkshire bank have separate training centres.

· Financial position of this bank is growing every year.  

· Yorkshire bank is having various opportunities to expand their business operations by adding more geographical locations in both domestic and international market.

· This banking unit can enable new and innovative factors in their technological aspects.

· Bank can grow their area of service in commercial banking industry.

· Yorkshire banking industry can expand their area of service. For example they can open their new branches in rural areas (Meiners, and Edwards, 2014).

· As there is increase in demand of account opening, import, loan and life insurance schemes bank can expand their services in various sectors.

· There are lack of investment environment or culture in society.

· There are high growth in smart phone user and society is accepting digital media for various services. Yorkshire bank can increase awareness about their services on digital platform to their consumers in order to increase their productivity.



· Al through Yorkshire bank is having high networking system but they are confined to less number of branches.

· High rate in employee turnover results in decrease in stability in their working environment.

·  Yorkshire bank is having less exposure in global business as compare to other financial firms (Li,  2011).

· Most of their banking branches are situated in urban areas which hamper their growth of services in rural segments.

· Brexit ambivalence can harm functioning of mainly all banks in United Kingdom.

·  Regular advancement in Digitalisation continuously disrupt future challenges of Yorkshire bank.

· Government rules and regulations keeps on pressurising new capital requirements for this bank.

· There are large amount of increase in online scams that results in difficulties to secure data of clients.

· There are high involvement of political parties in decision making process of banking sector.


P6 Interrelation of strength and weaknesses of macro environment element on a company

Every organisation those who are  providing their services in order to satisfy needs and demands of consumer have to face challenges in both internal and external market. All those factors include in these market can hamper growth of these organisation and create numerous obstacles in their profit retention (Saleem,  2017). It is essential for every organisation whether it is small or large to identify their strength and weaknesses in order to effectively over come them and enhance their productivity and profitability. In relation with, Yorkshire bank this organisation mainly aim towards expanding their services and satisfy their consumers at it's best. Mentioned below thee are an inter relational of strength and weaknesses of macro environment mentioned below:




      Political Factors

· Company can effectively increase their services also in commercial banking industry. As there are less political interference in this sector they can expand area area of growth (Zsambok and Klein, 2014).

· Government laws and regulations continuously pressurise banking sectors in order to modify their lending rates, interests rates and capital reattainment.

· There are high indulgence of political parties in banking sector of United Kingdom. This will results in creating unnecessary obstacle in  their process.

· Different different types of government laws can create various hurdles in banking process and satisfying needs of consumers in best possible manner.

   Economical Factors

· Yorkshire bank is having strong net income and they place in effective rank in trading division bank in United Kingdom. This will benefits them to increase in high capitalization.

· Financial position of Yorkshire bank continuously keeps on growing from past many years. This will act as an motivating agent for whole of their staff and organisation.



·  Quality of banking services provide by them can decrease if there is any economic crises prevailing in any geographic location.

· Most of there branches are located in urban sector (Tayur,  Ganeshan, and Magazine, 2012). So it is essential for Yorkshire bank to start operating their services in rural market to increase their profitability.

 Social Factors

· Bank can effectively enhance their area of services as they have various geographical sectors to expand their area of servicing.

· By implementing various laws related to environmental and employee health services banking sector can increase their brand image. This will results in enhance in their goodwill in external market.


· Brexit scepticism can hamper the growth rate and organisation functions in all banking sectors of United Kingdom.

· Change in consumer prescription related to several banking schemes can hamper Yorkshire bank activities.

Technological Factors

· As there is high rate of growth in technology users in smart phones unit, bank can magnify their area of services, with the help of digitalisation in online banking sectors (Gilboy, 2016).

· With the advancement in organisation networking system Yorkshire bank can highly increase quality of their services in both national and global market (Li,  2011).

· Some people have less exposure towards technology and some have negative aspects about it. This can create obstacle in growth rate of Yorkshire bank.

· As there are dynamically change in technology which require large capital investment to implement new develop network in their working sector.



In this report, conclusion are made on business environment which is a sum total of internal and external forces that affect overall functioning of business organisations. As business environment is dynamic, complex and uncertain it is important for business persons to recognise   all forces and analyse their effect on firms.  Main findings in this project is size, scope and structure of organisations that are wide and serves consumers effectively to gain competitive advantages in best manner. Along with this, present  study proves inter relationship with different organisation functions in order to perform business activities smoothly. There are some negative impacts of macro environment on business operations in order to which it is essential for business organisations to find their strength and weaknesses to perform effectively. Hence, to gain more competitive advantage in marketplace it is essential for each and every business organisations to evaluate all internal and external factors and then develop effective strategies to achieve high growth and profitability.


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