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University: Kensington College of Business
Business environment consists of internal and external factors that can hugely impacts the functioning of an organisation. Thus, the management needs to use different analytical models such as PESTLE, SWOT etc. to determine the complexities exists in market environment. JP Morgan Finance and Investment is a global leader offering financial services to the corporates, government and institutions. You are asked to gain knowledge about different kinds of organisations by addressing following Learning Outcomes:
Business environment factor is impacted by different areas and field that are to be influences improve the over all performance of organisation. External and internal factors are directly impact to the business operations and functions. These factors plays an important role in the business development. Internal and external factors affected in the different areas such as investors, stakeholder, technological factor and economic, cultural factor etc. these factors are playing important role in the organization. This is very important for organization to identify the actual need and requirement of business. This report will discuss about the different type of large scale and small scale of organization. I
JP Morgan Finance and Investment company is a leading organization to earn maximum productivity and profitability in the marketplace. This organization is based on private sector and they mainly focus on to increase productivity and profitability in marketplace. It will also describe the different organization size, scope and their legal structure etc. In this way, it will increase their brand image and market value (Aṉ̉l and Ficici, 2017). Most of the organization is helping to other people provide the best quality of service and product. This report will discuss about the actual weakness and strength of the organization. This report will discuss about the negative and positive impact of the business environment and its operations.
Most of the organization set up their own business and expands their branches all over the world. According to JP Morgan, it is a leading financial company which provide the best quality of financial services in the marketplace. This organization is working on different areas such as Financial banking, commercial and investments etc. JP Morgan organisation is mainly provided the safety and security regarding the finance on the different products. They are giving many options regarding on the investment of products. There are various type of different organization discussed in following:
Sole Trading organization- This organization has only one or more employees working together. In United kingdom, there are various organization has established in London. This organization is control by one person and all the profit gain the owner of firm (Cheyns and Guéneau, 2017). This organization offered many latest scheme and services such as repair the appliance specialist etc. For example- Freelance (writer) is the best example that are under the sole trading organization because this is based on private sector that only one people take advantage to earn profit in marketplace.
Advantages-
Disadvantages-
Partnership organization- A partnership organization is based on the business when one or two peoples are the owner of organization. This organization has 10-20 employee working together. For example- John Lewis is a leading organization in the accountancy field while there are more than hundreds business partners (Classi and Randall, 2018). All the profit and loss are divided in between the partners and they follow equal rule and regulation the business development.
Advantages-
Disadvantages-
Public limited organization- This organization focused to increase their business
Across the world. They provide the best services and product in marketplace. It always tried to increase their market value and brand image. In United Kingdom, there are various public sectors are already established. They focus on increase the productivity but also provide the best quality of services in market place. For Example- NHS is a public organization and it will provide the best services to their customer (Elvandra and Sukardi, 2018). This organization provides the health related services to the people such as medicine, treatment etc. This organization is the fastest growing company to always think about the people and their welfare.
Advantages-
Disadvantages-
Non-government organization- This organization provided the facilitates and services for people. They are mainly focused on benefits of human welfare and provide many facilities to the poor people. This organization is running with the help of local authorities and they increase the business for human welfare and society. It also contributes towards the welfare and social community. For example- DCA is based on the non-governmental organization that has established their business for human being. They taking funding to the charity to local people for growth and development of human welfare.
Advantages-
Disadvantages-
Size and scope of organization is depends upon the employee and their specific role and responsibilities towards the business development process. JP Morgan Finance and Investment organisation is a leading brands which are expanded their business all over the world. There are different organization has been established their business in United Kingdom following:
Basis |
Sole trading organization |
Partnership organization |
Public organization |
Non-governmental organization |
Basis of workforce |
This organization is run by only one people which are controlled the entire Business operations and functions. This organization has only 1-2 people worked together. The owner of organization handle the business functionality effectively and efficiently. Only owner has power to handle the business process and expands all around the world |
This organization handles the business operation and functions with the help of one or more partner. There are 10-20 partners working together. It can be divided their work according to their capability |
This organization is established the business in different areas and other countries. They participate to increase their market vale and brand image. There are 100-200 people worked together to perform their specific role and responsibilities towards the business operations and functions. They have set up hour to completing their operations. |
This organization is based on the human welfare to established their business in other countries. This organization has more than 20 people working together to provide the best services and facilities to peoples The main objective of this organization to provide the safety and security. |
Basis of Turnover |
This organization invests less money on the business development process so that it generate a less revenue. This organization has less turn over in every year approx. $1million (sparza-Aguilar and De, 2017). |
This organization has generated the large revenue but not more. They create $10 million to $20 million in every year. |
This organization generated $20 million to $50 million in every year |
This organization has mainly focused on their services. They not focus on profit |
Basis of operations |
This organization has performed main responsibility to contribution of income tax.they have submit the tax self anually. The main role and responsibilty of this organization to submit the tax with full of honesty and timely |
This organization is basically performing their tasks according to the requirement of customer. All the partners give innovative ideas for growth and development. |
Public organization mainly focus on different employee to assigned the individual project. Some times, this project is based on long term and short term. This organization is generally connected with the government and provide the best services to their customer. |
Non-governmental organization has performed different functions to identify the requirement of people and customers. This organization has required to understand the need and provide the best quality of resources. Most of the people does not have sufficient money to enjoy their life. This organization helping to the human welfare and social community. |
Basis of Sustainability and growth |
This firm has generated low sustainability in the growth and development. |
This organization is focus on to increase their business in different areas and they also promote their product to achieve the goals and targets. The sustainability is depends upon the productivity and profitability. |
The growth level of organization is average as compare to small organization. The sustainability of public firm has depended on the profitability and productivity in marketplace. |
Sustainability of this organization is long terms. |
There are different type of organizational structure and functions applicable in the company according to the size of organizations. The different functions and structure divided in following:
Divisional structure- Divisional organizational structure is the important part of organization to spreads their functions in different departments. According to this structure, different operations performed various functions like sales, accounting and marketing etc. The individual employee has completed their tasks. Each and every employee has performed the different tasks and they have various functions for particular business operations (Gachukia and Muturi, 2017). JP Morgan is financial and investment organization that are performing different functions to provide the facilitates and services regarding the commercial banking etc. Some times it is very expensive to handle the different business operations. Small organization is use divisional structure for identified the need and requirement of clients.
Matrix structure- This structure is the combination of functional and divisional because they use both type functions and operations in the organization. JP Morgan is based on the matrix structure because each and every employee has doing their work in proper ways. Top organization has managed the dual management system which are control with the help of planning and strategy. Each and every departments handle by manager because they have capability to handle the business operations in proper manner.
JP Morgan is followed the matrix structure to offering different facilitates and services to customer.
Interrelation between the objective and goals that has some specific vision and mission-
JP Morgan is leading organization based on the investment and financial company that has some specific objective and goals to performing different functions and operations in various departments as following:
All the departments are interrelated to each other for example- According to JP Morgan, Human resource management is use new technology for the purpose of marketing and it also uses for conducting a selection and recruitment process with the help of new technology. Financal department is collecting all the information of marketing as well as HRM etc. This is benefical for all the department to manage the entire business process.
Human resource management- Human resource management is important part of organization to handle the business process such as training and development, selection and recruitment, employee details etc. these are important operations performed by the human resource. This is the best part of company to conducting a different training program so that the employee improve their skills and knowledge and putting some efforts towards the growth and development of organization.
Information technology-According to JP Morgan, this organization is use modern technology to increase their speed towards the organization. For Advancement of technology is very important in the growth because they always innovate new idea implements in the business development process. Most of the organization is use new technology for the purpose of marketing. This organization is also promoted their services and facilitates in marketplace (Granon and El-Hamed, 2017). This is very helpful for organization manage the business operations and functions.
Marketing- Marketing is an essential part of organisation to promote their product in marketplace. This is the best way to increase their profitability and productivity in marketplace. There are different platform and tool useful for promotions such as Advertisement, e-commerce website etc.
Finance- JP Morgan is the fastest growing organization and they take fund from the bank and other investor. Funding is important for organization to established their business all over the world. Top level organization always making an effective strategy to expand the business in other countries.
In the financial market it is very important for business development to develop an efficient planning for growth and development. In the business development new risk always generated and it is very difficult to find out the actual problem in the process. Macro environment includes different factors such as social, governmental, economic and technology etc. these factors are impact on the business operations and functions.
For advancement, it is very important for organization to increase their productivity and profitability in marketplace (Greblikaite and Garcia-Machado, 2017). Pestle analysis determines the actual need and requirement of business operations. Pestle analysis is the framework which are helpful for analysing the business need and requirement and also influences to the business operations.
Political Factor- This political factor is affect the business operations and it is related the opportunities and pressure by Governments. These factors impact on the different areas such as tax, government policy, trade restrictions, political instability, stability etc. Brexit is impact on the JP Morgan organization which is terminate to their employee in the job. It is very difficult to provide the services.There are different policy made by the organization that are impact on this organization. This factor is very important in the organization to analyse the entire business process.
Economical Factor- This is very important factor that have includes exchange rate, growth, disposable income and exchange rate etc. this factor is deal with the macro and micro environment. This factor deal with the management of organization while government use different mechanism like tax policy, control the interest and expenditure etc. this is applicable in the business to customer relationship. This factor is impact on the performance of JP Morgan in the International global marketplace.. This is very helpful for increase the profitability and productivity in marketplace.
Social factor- Social factor is important factor that are applicable in different areas such as career attitudes, growth of populations, health consciousness etc. This factor is directly affect the marketer. According to JP Morgan, It is very difficult to understand the need and requirement of business. Management reshuffling is directly impact on the business functionality and operations. This is important factor that are mainly focused on the social environment. In this way, it is easily identified the new trends and availability of marketplace.
Technological factor- Nowadays, Technology factor is playing important role in the business development process. They directly affect the market because most of the organization use new technology for implementing a new idea for growth and development. JP Morgan is finance based organization that has used different platform to promoting their services in market with the help of technology. This company will measure all the requirement of business and according to the demand, they have to change their style regarding the business development process. This factor is consider as technology that are using for innovate a new idea and implements in the business process (Hahn and Schiemann, 2015). Factors impact to change the technology such as using mobile technology, internet and automation, development as well as research etc.
Legal factor- JP Morgan Finance need to know about the laws that are helpful for organization, The legal factors are includes such as product safety, provide equal opportunity, Safety and health, customer rights, advertising etc. This factor is very important in the organization to follows some rules and regulation that are very helpful for growth and development. The organization also need to aware about the legislation laws that are helpful for providing the equal rights to their employee. Each employee has equal right to use their law to take a legal action towards the territories and criminal etc. Legal factor needed for growth and development and this legislation law use this organization for growth and developmental Morgan is following the important law to provide the best quality of services to customer. This law provides the safety and security to their employee.
Environmental Factor- this factor shows impact on the environmental condition surrounding the business environment. For increasing the demand of corporate sustainability responsibility is playing important role in JP Morgan Finance and Investment. There are some important factors includes such as climate change, waste disposal, sustainability, recycling etc. This factor is contribute to enhance the business all over the world for changing the working culture for employee.
Internal and External analysis is playing important role in JP Morgan investment and finance organization because they analyse the actual requirement of business operations and functions. This is the main strength of organization to increase their productivity and profitability in marketplace. This organization provides the best quality of product and most of the customers attracts towards the services. In this way, it will increase the sale and production in global market. Internal and external analysis is required for organization to understand the need and requirement of business (Lindgren, 2017). JP Morgan is a leading organisation which is located in UK and their business affected by internal and external factors. The SWOT analysis of JP Morgan is described below:
Strength-
Weakness-
Opportunities-There are many opportunities provide the organisation to their employee and always innovate new ideas for increase the productivity and profitability in marketplace.
Threat-
JP Morgan organization is finance and investment banking that are provided the best facilitates and services regarding the financial and insurance services. This external macro factor of JP Morgan affect the business operations and functions. These factors are related the weakness and strength of organization such as environmental, technological, social, economical, legal. These factors are discussed in following ways.
Political factor- There are many challenging problems faced in the organisation and it also used the rules and regulation that are created by government. Every and each banking organization has follows all the rules and regulation for capital growth and development. This factors affect the Taxes, government policy, trading etc.
Social factor- this factors affect the social culture related the traditional culture, Labour composition etc (Moretti and Re Cecconi, 2017). this is the important factors that are main strength to provide the opportunities for employee regarding the pension services etc.
Economical factor- This factors has risk in the challenging issues and problem generated at the time of business development process. It also affects the International business as well as their development processes. The strength of JP Morgan to control the economical condition of business process.
Legal factor- According to JP Morgan, this factor is an essential for provide the equal rights the employee and all the legal rules is required for the growth and development. This is the main strength of organization. It is impact on the business at the time of financial crisis.
Technological factor- New technology is useful for organization to increase the business across the world. JP Morgan organization provide the online faculties that are very useful for every customers. In this way, it will increase the productivity and profitability in marketplace.
Environmental factor- this factor is concern about the natural habitats, flooding etc. In JP Morgan, The main weakness of organization is low resources that are affected the business economy because they do not increase the production in market due to lack of resources (Witti and Benkhelifa, 2018). It is required for organization to increase services and facilitates towards the growth and development. It also protects the macro environment in the business development process.
This report is discussed about the negative and positive factors that are impact on the business environment. There are different type of organization that has specific scope and size. For growth and development, it analysis the strength and weakness of organization in the macro environment. It also discusses about the actual need and requirement of business and resources with the help of SWOT and Pestle analysis. These are important role playing in the business development.
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