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Different Types and Purpose of Santander Bank

Organization Selected : Santander Bank

INTRODUCTION

Business and business environment is concept which includes different organisation and factors which plays important role in business. Internal and external components which directly or indirectly affect operations are acknowledged by administration to design system and executes appropriate activities. Present report is based on SANTANDER Bank which is leading and popular bank in UK. Commercial, Investment, Market personal financial services and various other financial products and services are provided by bank. This assignment defines different types and purpose of business organisation which varies with each other in aspects of size, scope, objective and structure. Executive divide members and formulate department which includes activities which have relationship with each other. This helps seniors accomplish goals and objectives within defined time. PESTEL and SWOT analysis which are appropriate internal and external tools used by management to assess impacts of macro environment factors and capabilities of system.

TASK 1

P1 Different types and purpose of business organisations

Business environment of company in present fast development time is upgrading at fast rate. This increases opportunities for firms to execute activities and generate good amount of revenue from business. Brexit was beneficial for UK, as it enhances number of possibilities and chances for enterprises. Private, public and voluntary are forms of business which are distinguished in according to their size and objectives. It is essential that adequate items and services are delivered in market in respect to wants and requirement of people. Along this, executive another goal is to generate appropriate profit from business. These are various tactics which divide companies in following categories which are described below:

Basis of Comparison

For Profit

NPO

NGO

Meaning

This sector defines companies which are incorporated by businessperson to utilise funds and gain adequate amount of revenue.

These are organisation which conduct activities to enhance society conditions and standard of people. Money earned is invested back in business, so that appropriate operations are executed properly.

Non-Government organisation are charitable trusts which execute tasks for developing society and deliver adequate products and facilities for needy people.

Area of Operations

Large and small scale of activities are conducted by profit firms.

Limited area of operations are executed by Non-Profit organisation.

Large scale of activities are conducted by NGOs.

Objective

Main goal of profit organisation is to increase market reach and customer base to enhance sales volume and profitability.

NPO objective is to promote scientific disciplines, art and commerce.

Prime motive of organisation is to reduce poverty level and provide adequate items and services to people.

These are different types of business organisation which are stated beneath:

Public organization:

This sector defines firms which are regulated and controlled by central or local government; to enhance and strengthen economy of country. Authorities fund these organisation to increase employment opportunities and give facility to people to generate adequate income for their livelihood. Bank of England is public bank established in UK.

Purpose:

This bank's aim is to raise funds and provide money to State by keeping custody of gold reserve of UK. Government gives support and help to organisation by providing them funds at lower rates.

Legal structure:

Local government:

This segment includes firms which require to function and frame policies in respect to state authorities. It is essential that appropriate things and services are delivered in market in according to demands and requirements of people.

State government: 

This is another form of enterprise which conduct adequate business operations to improve state of country by providing appropriate facilities and employment opportunities to people.

Private Organisation:

This sector comprises companies which individuals or group of people start to utilise money and conduct appropriate business activities. Entrepreneur or board of directors of firm frame objective and organise resources in such manner that adequate variety of items and services are delivered in marketplace. SANTANDER Bank provides financial items and services to people. It is a British Bank which is leading enterprise which gives loan, mortgage and other business services to clients.

Purpose:

SANTANDER Bank goal is to sustain its market position and image by providing quality and quick things and facilities to customers. There are more than 3500 outlets which helps administration to work worldwide and generate adequate revenue from business. Mortgages, saving, credit and various other financial services are provided by bank to have adequate number of clients.

Legal structure:

  • Sole proprietorship: This aspect includes company which are started and owned by single person to conduct activities and generate income for maintaining their living standards. Profit or loss both depend upon skills and quality of services provided by person to customers.

Advantage:

An entrepreneur is able to make fast decision making and select appropriate things in respect to objective set by them.

Disadvantage:

Shortage of money and other resources affect life of business which is limited and individual is not able to generate adequate profit.

  • Partnership: This is another tactic which two or more individuals which share investment and invest money to incorporate business; thereby gain adequate revenue. An individual will not have adequate capabilities and skills to organise activities in proper manner. Thus, it is best and efficient technique which helps businessperson to assess risk and generate good amount of profitability.

Advantage:

Organisation have good amount of funds, material and manpower to execute business activities effectively. Executive have appropriate skills and abilities to organise firm and handle risk properly.

Disadvantage:

Partnership faces various demerit which are disagreement between people which have different opinions and thoughts. This impacts on their decision making and also affect on their choices to select things in according to their knowledge.

Voluntary organisation: This sector includes firms which conducts activities and deliver adequate things and services in market in according to demands of people. Oxfam is company which belongs to this tactic and is charitable enterprise which function independently and deliver appropriate facilities to public.

Purpose:

This sector aim is to execute activities for welfare of community and promote educational facilities, public conscience on social problems and moral standards.

Legal structure:

Trust:

This is traditional form of structure which is regulated by trust deed which set objectives and guidelines to direct activities and people to deliver appropriate things in market.

  • Advantage: It is cost effective and members get appropriate authority to take decisions and conduct business properly.
  • Disadvantage: It is old tactic and creates problems for trustees as they have unlimited liability and have to invest money for execution of business adequately.

Company limited by guarantee:

This is another form of voluntary organisation which require to function in according to regulations and have limited scope.

  • Advantage: These are organizations that are controlled by Charity Commission and this benefits people to execute business properly. It is a legal entity and members have limited liability.
  • Disadvantage: This form of firm has higher expenses of setting which is higher than other organizations. A good portion of money is invested by executive to register firm at Companies House.

P2 Size and Scope of various types of organisations

Market have different forms of organisation which differentiate with each other in aspects of size, scope, objective and structure. Small, micro, medium and large are various firms whose scale of operations are determined on basis of availability of resources. Funds, material and manpower are various things which influence operations that are conducted by administration to accomplish targets and sustain their position in market. Thus, these are different firms which have variance size are defined beneath:

Micro Scale:

This sector includes firms which are incorporated by individual to utilise funds and open venture; to generate adequate income for maintaining their living standards. Businessperson prime focus is to become financially secured and improve their family members conditions.

Size:

This scale of business is either regulated by single person or less than 5 people. Along this, lower amount of revenue is generated by micro scale firms.

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Scope:

This aspect includes firms which has less number of resources that is funds, material and manpower. For this, businessperson require to organise things and take care that capital is utilised properly.

Small Scale:

This is another sector which is bigger than micro level business, as executive invest adequate amount of money to conduct business operations effectively. Market research is conducted by individual to assess needs and demands of customers.

Size:

This bank has around 35 branches in different locations and SANTANDER is providing better services and facilities to its clients. Their turnover is around 5 million dollars which is comparatively higher in ratio.

Scope:

Small firms develop strategies which they can implement in their further proceedings. It will help them in operating its business in an effective and unique manner. Companies use latest tools and technologies for producing goods effectively. Most of the firms use this for expanding their business.

P3 Relationship between organisational functions with its structure to achieve objectives

Due to over dynamic working environment, it is essential for all business associations to focus on work with proper coordination and cooperation thus to gain high competitive edge (Wack, 2017). In order to improve its performance level and increases organisational stability, management tries to collaborate all department as well as improving their organisational structure; it lead attaining firm's goals and objectives in a certain time period. In SANTANDER Bank, it is must for administration to maintain a healthy and positive working environment thus to attain and retain employees for long term. Following is defined several organisational functions such are stated as under: -

Finance department –

In the banking sectors, finance department plays a key role in managing all activities and tasks in the best possible manner. Finance department is charged for recognising financial health of the company and try to reduce unintended deficits which can occur. In SANTANDER Bank finance manager is accountable for managing certain aspects, such as – funding, capital investment, cash inflow and outflow, budgeting, preparing income statements and so on. If all these activities will be managed in proper manner than any corporate association will attain its goals and objectives effectively. Choose the best assignment help with Chat support. Order Now!

Human resource department –

An effective and efficient human resource department is liable to manage entire workforce in systematic manner thus to attain and retain them within organisation for long term. One of the most important responsibility of Human resource manager of SANTANDER Bank is to recruit well qualified and talented people who enables to perform all working activities and operations. Apart from this, the person is liable for providing training and development assistance to employees thus to improve their skills and abilities; it results staff members will be performed in more innovative and efficient manner; they will also contribute in accomplishing business goals and objectives (Vaiman, Sigurjonsson and Davidsson, 2011).

Marketing department –

Promoting products and services of a company is most critical; it helps increasing sales and profitability of the company. Henceforth, marketing department of business organisations is focused on how to reach large group of customers and for this sake they intend towards increases their network areas by using new and innovative communication channels. Proper interaction with target audiences supports to know clients' feedbacks upon offering products and services of the company.

Production and operation department –

This unit is obligated for ensuring quality of offered products and services by the company. Production department supports to convert raw materials into finished goods as well as the determine volume of products which are going to produce. In addition, operational managers also assure about waste management so as to diminish manufacture costs. If all these activities will be managed in an appropriate manner then management will easily gain its vision and missions (Türetken and et. al., 2011).

Research and development department –

Without having strong market knowledge any firm cannot grow and survive for long term at marketplace. So that, function of research and development helps business organisations to recognise current market trends so as to fulfil customers' needs and wants in the best possible manner. The department of R&D also tend towards assessing competitors' strategies, interest of geographical areas and future changes in market, then develop business strategies accordingly. It ensure firm's market growth and boom up the decision making process of the company.

Different types of organisational structure:

Divisional organisational structure:

This tactic defines that large scale firms which have branches in different nations. Businessperson uses this structure when they have large market reach and offer variety of items and services. For this, they require to utilise resources that is funds, material and manpower efficiently. Along this, administration even require to conduct business activities and gain good amount of profit from business.

Matrix organisational structure:

This is another aspect which specifies that management have projects which require to be accomplished. For this, appropriate members are selected from each department and given duty to perform activities effectively. This helps senior to utilise resources and given opportunity to staff to enhance capabilities and skills.

Functional organisational structure:

Human resource, finance, operation, marketing, sales, research and development are various department which are constructed by administration. These are unit which are formulated in each and every organisation, so that business operations are conducted properly (Chetwood and et. Al, 2014).

Therefore, in SANTANDER Bank divisional organisation structure is used by executive to manage outlets which are spread in different nations.

TASK 3

P4 Positive and negative impacts of macro environment upon business operations

Administration responsibility is to have accurate and complete information about market conditions which help them to design system and use appropriate technologies. Government, economic, social, technological, environmental and legal are various components which directly impacts on business. For this, PESTEL analysis is appropriate technique which management of SANTANDER Bank.

Political factors:

This component define that government frame laws and act to direct and regulate business organisation. Various tariff policies, labour act, trade restrictions and political stability which are formulated by authorities to manage activities of company. Employer of SANTANDER Bank frame strategies and tactics to make system function legally. This factor have benefit and demerit on business which are stated beneath:

  • Positive impact: In UK, government had formulated legislation to coordinate functioning of banks so that business activities are conducted in proper manner. SANTANDER Bank provides financial services which specifies that appropriate things are provided to clients. It is essential that adequate rate and facilities that is commercial and financial things are provided to people (Tayur, Ganeshan and Magazine, M. eds., 2012).
  • Negative impact: SANTANDER Bank have branches in different nation which define that administration require to assess taxation policies and tariff rates which keeps on changing with time. For this, transformation in tactics and policies are made to make system function adequately.

Economic factor:

This is another aspect which includes interest rate, inflation, employment, exchange rate and various other components which are set by authorities in according to state of country. These are various tactics which affect on business operations and availability of funds.

  • Positive impact: SANTANDER Bank set interest rate in according to availability of funds and number of borrowers. Cavendish is place which have outlet which determine that firm have adequate number of people which have sufficient money which they deposit in bank for saving.
  • Negative impact: Currency rate, inflation, stability are tactics which keeps vary with time and from one nation to another. Main issue which are faced by SANTANDER Bank is recession period when people have lower amount of money and this impacts on services of bank.

Social factor:

This tactic defines that taste and preferences of people determine sales volume of companies. SANTANDER Bank has outlet in Kensingto College of Business at Cavendish Place require to provide appropriate things and facilities to people. Commercial and investment banking, market personal financial services and many other products are provided to clients (Saleem, 2017).

Positive impact:

SANTANDER Bank is leading bank which provides loan, mortgage and other business services to clients. This helps bank to attract large number of people and provide them appropriate facilities to retain customers for longer time.

Negative impact:

Kensingto College of Business is area which has students which don't take loan from SANTANDER Bank. Along this, there are less number of businesses which impacts on sales and profitability of firm.

Technological factor:

This aspect defines that SANTANDER Bank require to use appropriate tools and techniques, so that quality and quick services and things are provided to clients.

Positive impact:

With technological advancements, SANTANDER Bank and members are able to provide adequate facilities to customers. ATM, scanning machines and updated software are used by bank to provide appropriate services to clients and retain them for longer period (Sekaran and Bougie, 2016).

Negative impact:

SANTANDER Bank require skilled and competent members which are able to conduct activities properly. For this, training and development programmes need to be conducted by management to enhance skills of staff and make them capable to work effectively.

Environmental factor:

This aspect define that with globalisation rise which increases government responsibility to make appropriate laws and act to take care of business organisations.

  • Positive impact: SANTANDER Bank uses latest technologies which help management from use of paper which impacts on functioning of firm.
  • Negative impact: Techno-friendly activities is conducted with use of smartphones and online applications. It doesn't gives support Eco-friendly functioning of SANTANDER Bank.

Legal factor:

This tactic specifies equality act, discrimination, minimum wages and hours laws which are formulated by government to protect and safeguard rights of employees.

  • Positive impact: Employer of SANTANDER Bank provide duties
  • Laws and regulations help banks and other organisation in carrying business operations in a legal and smooth manner (Meiners, Ringleb and Edwards, 2014).
  • Negative impact: By strictly following rules related to privacy, trade structures and consumer laws etc. affect profitability of business.

TASK 4

P5 Internal and external analysis to identify strengths and weaknesses

SWOT Analysis of SANTANDER Bank

It is the study of company to find its internal area based on strengths, weakness as well as external area which influences its opportunities and threats.

Strengths:

  • SANTANDER bank generally works with already developed country like United Kingdom, United states & Latin America which helps the bank to avoid financial crises & builds the trust as per customer point of view.
  • This bank adapts strong marketing strategies by sponsoring or providing funds in events which builds its market image (López-Gamero, Molina-Azorín and Claver-Cortés, 2011).
  • Its one of the leading bank among the financial institution in United Kingdom on the basis of deposits and mortgages.
  • SANTANDER bank has merged with many leading markets of Europe for their success.
  • This bank is termed as one of the safest bank worldwide with the negligible risk.

Weakness:

  • SANTANDER bank has most of its footprints in Europe. Changes in European government policies affects the bank. European dependency has bounded bank in terms of their own policies.
  • This bank has few footprints in Asia. Due to negligible presence in this continent, it avoids huge ratio of population. By increasing footprint in this continent it can cover wide market & build their strong position there (Li and et. al., 2011).
  • SANTANDER bank has lots of branches in every street of united kingdom, due to its excessive branches, many of the other banks has gone for mergers and acquisition to compete this service industry. Banks with merger have strong market & high resources to give heavy competition to it.
  • Interest rates are high as compared to other banks which attracts more no. of customers. New banks are providing nominal interest rate to cover maximum market & increase customer ratio.

Opportunities.

  • It can expand branches in less developed region where banks are not available will increase its business growth (Kaufmann, Kraay and Mastruzzi, 2011).
  • It can also opt micro financing for the small business from where customer can go for loan with less documentation.
  • SANTANDER bank should more concentrate on developing its customer services which will help it to retain its active customers and attract more new customer's. Satisfied customer's will do mouth publicity of the bank that is more effective as compared to other promotional activities.
  • Bank can go for acquisition to expand its business in remaining countries. Acquisition with the already existing company of that country will help to build image & grab maximum customers.

Threats

  • Increasing financial problems in Greece, Italy, Spain, and Ireland may have negative impact on its positive feature of being a safest bank.
  • Continuous increase in no. of bank have raise competition for the SANTANDER bank. As new banks are becoming major threat. Fresh banks are providing loan & other banking services at nominal interest rate with less documentation procedure. This attracts more no. of customers (Meiners, Ringleb and Edwards, 2014).
  • As per the changing scenario of the government financial policies in terms of regulations . Some of these policies are non acceptable by the its organization and might turn into recession which will affect the bank.

P6 Strengths and weaknesses interrelate with external macro factors

For analysing the relationship among various segments of business environment with each other, management of SANTANDER Bank can use PESTLE technique which will help in recognising shortcoming of business through they can redesign the structure of business as well. Are you required essay writing service with quality content. Please contact our experts.

Political:

As per changes in rules and regulations made by regulatory bodies, operational activities of business are much affected.

  • Strength: By framing policies and business structure as per governmental norms, help in run business operations in more accurate manner as well as gain a better position.
  • Weakness: As activities of business are much controlled by government, so it will negatively impact on profitability of bank and financial institution also.

Economical:

Inflation and deflation period, changes in economical norms, interest rates and more are needed to be considered by financial institutions while making policies.

  • Strength: If economical condition of nation is good then it will help in lending loans to other banks (López-Gamero, Molina-Azorín and Claver-Cortés, 2011).
  • Weakness: While if economical condition is not so effective then it will impact on profitability of business as well.

Social:

Education and background level of people as well as change in lifestyle and demographics are some factors need to consider by owners while delivering services.

  • Strength: When people are belongs to high category then they will use services of banks in higher manner. It includes debit and credit type facilities which aid customers to use the same rather than to keep cash.
  • Weakness: Due to change in lifestyles, existing business of firms are much affected.

Technology:

In present market environment it is important for an organization to implemented latest technology at work place so that SANTANDER Bank able to achieve goals and objectives in limited period of time. positive as well as negative impact of technology are explain as follows:

  • Strength: Technology help SANTANDER Bank to improve quality of product and services through this satisfied consumers in long run.
  • Weakness: It is almost impossible for company to execute all kind of technology at work place.

CONCLUSION

As per above report it has been concluded that business environment is is having various structure are public sector, private sector and voluntary sector. In this, they also analysed the PESTEL as well as SWOT analysis are accomplished also given the positive and negative impact of all the environment factors. Business environment should effectively and efficiently help in achieving the goals and objectives within a marketplace. External factors affect every business within the company they have to analysed before launching a new product at the place of working environment.

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