BTEC HNCD Engineering - Business Environment - Pearson Qualifications


Business environment is an very main term which comprises each factors which can impact company indirectly and directly in any way. Therefore, a manager is going to start up enterprise, an entrepreneur requirements for including all required factors which will provide organisation success. Generally, environment of enterprise can compare into two types such as macro and micro. Both impact enterprise either positively nor negatively. NATWEST is an organisation which is selected in this project report as it is established in United Kingdom as well as provide finance to peoples at a cheaper rate of interest. Main aim in this report is to understand various forms of companies like as public, voluntary and private also analysed PESTEL and SWOT within this assignment. Macro and micro components impact on the process of decision making within company in a negative or positive manner. It is determine in a very effective way.

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Task 1

P3 Relationship between functions of different companies

NATWEST is a broad retail as well as commercial bank which is established in United Kingdom. They are giving management within the entire world. Cited company follow the structure of hierarchy in their enterprise as well as indicated by positions, obligations, duties, responsibilities and many more are divided in an effective way to firms employees (Hilton and Platt, 2013). Mainly, department of top authority are having much responsibilities as compared with lower level.

Their are different NATWEST objectives which are given below:

  • It is important for managers to improve enterprise as it help them in development as well as growth.
  • It is necessary to give best quality of products to buyers at a cheaper rates. Hence every and each type of particular person can purchase.
  • If organisation profits can be improved then they can give easily returns to bondholders.
  • They require to cater every as well as each financial instruments sort to their customers within roof (Kolk, 2016).
  • It is important for company to decline unnecessary wastage, so they can secure surrounding in an proper and efficient way.

Various forms of companies functions:

It is necessary for each type of company to give better management and goods to persons. So, that they can satisfy wants as well as needs of them in an efficient way. Its purpose in NATWEST that there are different units as well as they are having their aims which are very different (Overview of the Business Environment Working Group, 2017).

Certain business functions are explained in detail below:

Illustration 1: Functions of organisations
(Source: Functions of organisations, 2018)

  • Sales and marketing: It is important for every and each company to lead a research. Hence, they satisfy wants as well as needs of consumers. In this, they can develop some type of techniques as well as it may be linked with sales, promotional and pricing. It is important for them to alter their previous products as outcomes can easily increase their sales as well as productivity. This unit require higher investments so they can do proper products marketing (Komatsu and et. al., 2012).
  • Finance: It is required for managers to maintain companies records efficiently and effectively. If they issues shares to persons they can raise finance easily for organisation. Frequently, this division is linked with others due to its main aim to make budgets with others organisation department. In addition, it is necessary for company to keep effective records of their all expenses as well as revenues. These important obligations is to give each section budget. All they require to flow in an effective way. With that they have to decide pay wages and roles to their employees.
  • Human resource: Various responsibilities of department is to manage HR of If managers of business needs to improve labours performance then it is necessary for them to provide training. In addition, it is important to cater best working environment to them so they can accomplish task properly. As outcomes, it will help in retaining and workers to do their work within a given time limit. If organisation manager want to encourage employees then they can provide extra advantages, rewards, commission and many more. It will improve work properly. With that, manager can organise certain type of motivational and training activities for employees. As it will help them in raising their performance of work.
  • Administration: Main purpose of this unit give support to task of company. It is important to employers of the company in an effective manner. Departmental employees so their work as a link within senior manager and employees of NATWEST. With this, they have to stimulate their employees (Lee, Sohn and Ju, 2011). So, that they can satisfy objectives and goals efficiently and effectively. Important obligations of department is to give require data nad information which is linked with research. Along with that, they can arrange achieved in an effective manner.
  • Production: It is important for each company to get assets properly so that employees can use them in an proper way. Managers of organisation can use certain approaches for this as well as it may consists batch, flow, job and so on. If employer have to decline unnecessary price then it must give training to employees. As outcomes, they can accomplished their task in an efficient and effective way. In additionally, it unwanted price is removed them workers can complete budgets and goals.
  • Research and development: This is important for each type of company as manager has to analyse their wants and needs of their purchaser. So, they can complete on time. With this, they can easily alter their services as well as goods in an proper manner. Development and growth of business is generally depend on units. If efficient fund is available for them, they can work more effectively. As outcomes, they can easily take benefits from their competitors within a market as well as increase their value within market.

Task 2

P4 Negative and positive influence of macro environment

External environment can directly effect company as well as kind of components is not in control. It is very complex to determine their factors. With this, it is important for manager to measure their influence due to it can indirectly or directly affect enterprise. In addition, business can create certain techniques and plans for above stated aims.

If employers of NATWEST have to find out these factors which affect enterprise either negatively or positively, then it is necessary for them to organise analysis of PESTEL, utilization of their methodology is very easy as well as manager can easily analyse environment more clearly (Othman and Rahman, 2014). It also enhance strategic development as well as external thinking by the help of research, companies chief can easily analysed threats as well as destroy it from enterprise effectively. Therefore, they can achieve desired targets and objectives in an proper and efficient way. With that, it help them in beating competitors within a market. Hence, it can easily improve reputation within market. If organisation director do not take effective decisions within a limited period of time then also macro surrounding will affect enterprise.

PESTEL analysis are given below in detail:

  • Political factors: Banking domain is very powerful as well as it is much wide within nature. Developed laws by ministry body which affect their domain. For example, interest rate. With that, it is necessary for organisation to know each firms laws in which they are operating functions.
  • Economical factors: This components as well as banking business, both are interlinked with one other. Income of particular person can affect their purchasing power. By which if NATWEST revenues is better then recession do not impact their actions.
  • Social factors: Peoples values, beliefs, culture and many more can impact business either indirectly or directly . Mainly, peoples are taking advice for bank loans from workers, so they can give better aid to social group (Pikka, Iskanius and Page, 2011).
  • Technological factors: As time dynamically changes, hence person are utilizing latest techniques as well as tools within their enterprise. Today times, person can withdraw funds by ATM, debit card and many more. With this they can easily transfer their money by utilising applications online.
  • Environmental factors: By using these application they can make friendly environment. As outcomes, reduce of paper work at higher rate.
  • Legal factors: It is important for NATWEST to follow every as well as each law, so that they can give privacy and security to their customers.

P5 External and Internal analysis of companies to identify weakness and strength

In this business environment, it is mainly divided into two parts like as external as well as internal within nature. It is affected by various problems as well as factors, because it is important to effectively evaluate and analyse all factors in an proper way with the help of smart as well as new approaches (Rossi, Vrontis and Thrassou, 2012). For analysing, analysis of SWOT approach can be utilised by firm within their working surrounding. By the help of SWOT approach, properly finding out organisation weaknesses, strengths, threats and opportunities in an effective manner. With that, internal surrounding involves management, workers, managers, vision, mission and many more. In other hand, external involves: suppliers, buyers, rivals, government etc. Additionally, NATWEST is an royal bank of Scotland group, it is a biggest commercial as well as retail bank in United Kingdom. For determining this firms present status as well as position, SWOT analysis approach can be used.

Swot Analysis


  • In present time, Royal Bank of Scotland owns a various franchises within global area by the help of this RBS become one of a major group of financial in United Kingdom.
  • This company use a powerful distribution network in its working surrounding, by the help of this they can properly distribute the services of bank to all buyers.
  • Successful tracking of records will develop a new banking goods as well as services.
  • In this context of brand portfolio, over this year organisation is investing funds while building a better relations as well as effective brand portfolio.
  • NATWEST is successful in performing new bank goods as well as services and getting better return on capital expenditure by the help of making a new revenue in their enterprise (Rose and et. al., 2014).
  • In this company is having high skilled employees, due to NATWEST organisation is investing money within in the sector of training along with development. By the help of this functions all workers will increase their working capabilities as well as skills.


  • This firms can not face challenges in current time by entering a new segment and has lost small share of markets.
  • This companies has required to invest money to utilise as well as adopt latest technologies for accomplishing works within a given time and giving best services to their buyers.
  • By managers financial planning is not accomplished within a efficient as well as effective way. Because in the ratio of current asset along with the ratio of liquidity is not represent effectively.
  • Leading weakness is controversies linked to internal audits of Royal Bank of Scotland, which finish or damage brand name as well as image.


  • The new system of taxation as well as are importantly influence on working surrounding of a bank, by the help of this NATWEST will raise their level of probability.
  • The low level of inflation rate of United Kingdom, which is stable within the external marketplace.
  • Latest as well as smart technologies assist in giving best opportunities to NATWEST. By this, companies can maintain their loyal customers by giving better goods and services to customers.


  • Advances and latest technologies are manufacturing by their rivals that could be lead a threat for business.
  • NATWEST have to face lawsuits within their various domains.
  • On a regular basis raising of business competition within a marketplace.

P6 Weakness and strength interlinked with external factors

Both internal and external analysis that are done by taking help of PESTLE and SWOT analysis are both valuable (Chetwood and et. Al, 2014). These methods are helpful in easily analyse complexities of small and large size of market. There are many distinctive targets of SWOT analysis that are related to PESTLE also and these interconnections are stated as follows:



There are many standards and laws that government made for assessing all business activities and their relevance. All these laws and regulations should be analysed by organisation so that all task could get completed in allotted time frame (Crane and Matten, 2016). There are many policies which are having impact upon operations of an corporation and these laws are stated as beneath:

· Change in import and export policies.

· Changes in globalisation and liberalisation are having vast impact upon business operations.

· If there are any changes occurred in environmental policies then all these should be studied by corporation so that any problem could be raised.

This points shaving its own strengths and weaknesses which are defined as below:

Strengths: Company is having a better management and legal team which is efficient in understanding all legal obligations in order to perform all activities in continuous and smoother manner.

Weaknesses: There are many laws and legislations that must be taken into consideration by management of NATWEST company then it is to be analysed as when corporation follows all these legal obligations then it will bring complications in task conductions.

There are many factors that must be comprised in economical aspects and these elements are level of income, inflow and outflow of cash, rate of inflation and recessions along with deflations. Strengths and weakness differs country to country. For example, if there in any strength in country then it could be weaknesses in another nation. This pattern is analysed in following ways which are defined:

Strengths: There are many options available that make business operations successful in different countries. For example, if income level is high of consumers than they can buy expensive products also and due to this reason corporation is gaining larger amount of profit (Gharajedaghi, 2011).

Weaknesses: Policies are hard to change.



Attraction of consumers towards products and services of NATWEST bank are different from culture to culture like languages and religion.

Strengths: This type of action is helpful in fascinating larger pool of customers.

There are many tools and technologies which are being used by NATWEST bank like bringing all operations on internet and this type of action is helpful in increasing number of customers (Gilboy, 2016).

Strengths: Providence of high quality items.



Laws are getting change on frequent basis that should be ascertained by corporations.

Weaknesses: All these short term changes in laws are difficult to understand and strategy could not be framed upon this.

Providence of the activities linked with save of atmosphere and enhancement of society.

Strength: It aids to obtain the support of manpower.


Above report is summarise as, business environment is dynamic in nature and also includes very complexities that affect operations of corporations in negative and positive manner. In order to conduct all business activities in most appropriate manner then complications of business environment should be analysed and relevant implications should be employed in operations of association. There are different type of organisations that differs from each other in various manner like scope, purpose, vision, mission and legal structure affected on company and overall performance of firm. There are multiple functional areas that play a vast and essential role for completing and attaining all goals and objectives. There are two options that are useful in analysing market environment and these are SWOT and PESTLE analysis.


  • Chetwood, M. K. and et. Al, 2014. Transforming a legacy IT infrastructure into an on-demand operating environment. U.S. Patent 8,775,232.
  • Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
  • Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
  • Dibrell, C., Craig, J. and Hansen, E., 2011. Natural environment, market orientation, and firm innovativeness: An organizational life cycle perspective.Journal of Small Business Management. 49(3). pp. 467-489.
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