Analysis of the different industries

and their Environments

Prepared For:
CEO

Prepared By:
Mahendren Jeewaprashan
Name: MAHENDRAN JEEWAPRASHAN
ESOFT Reg.No : 00135985
Student ID: E165872
Module Name: Business and Business Environment
Name of the Lecturer: Ms Gayani Weerasinghe
Date Due: 24th July 2022
Date Submitted: 22nd July 2022
E-Mail: [email protected]
Contact No: 0772832289

Mahendren Jeewaprashan Business and Business Environment Assignment 1 1

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Programme title Pearson Higher Nationals in Business

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Unit 1: Business and the Business Environment
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Understanding different types of organizations from different perspectives and
Assignment title analysing the link between organizational structure and functions.

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 Higher Nationals - Summative Assignment Feedback Form

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Unit Title Business and the Business Environment

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LO1 Explain the different types, sizes andscopese of organizations

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LO2 Demonstrate the interrelationship of the various functions within an organization and how they
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LO4 Determine specific businesses' internal strengths and weaknesses and their interrelationship
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Student Declaration

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Mahendren Jeewaprashan Business and Business Environment Assignment 1 6

Table of Contents
Executive summary.......................................................................................................................8
introduction...................................................................................................................................9
section - a.....................................................................................................................................10
1. What is business?................................................................................................................10
1.1 what is business environment?...........................................................................................10
1.2. What is an organization?....................................................................................................10
1.3. Different types of organization...........................................................................................10
1.4. Different types of organization (size).................................................................................11
1.5. Scope of business organization..........................................................................................11
1.6 introduction to different types of organization...................................................................12
2. Relationship between organizational functions & organizational structure?.........................22
functional structure separates departments...............................................................................22
divisional structure has many branches....................................................................................22
matrix structure provides flexibility..........................................................................................22
visualize with organizational charts..........................................................................................22
2. Bank of ceylon.....................................................................................................................24
2.1. Governance structure of boc..............................................................................................25
2.2. Boc current account...........................................................................................................26
2.3. Stakeholder of boc.............................................................................................................26
3. Commercial bank of ceylon plc..........................................................................................28
3.1. Governance structure of commercial bank plc..............................................................29
3.2. Stakeholders of commercial bank plc............................................................................30
4. Seylan bank plc....................................................................................................................33
4.1. Seylan plc’s governance structure.................................................................................33
4.2. Stakeholders of seylan bank plc....................................................................................34
5. Organizational functions....................................................................................................35
5.1. Human resources..........................................................................................................35
5.2. Information technology.................................................................................................38
5.3. Customer services.........................................................................................................41
6. Interrelationship..................................................................................................................46
6.1. Advantages of interrelated banking..............................................................................46
6.2. Disadvantages of interrelated banking..........................................................................47
conclusion....................................................................................................................................48
annexure......................................................................................................................................49

Mahendren Jeewaprashan Business and Business Environment Assignment 1 7

......................................................................................................................................................52
REFERENCES............................................................................................................................52
Provide critical analysis of the complexities of different organizations and structures.............53

Executive Summary
This task entails a scenario study of three Srilankan based banks such as Bank of Ceylon,
Commercial Bank PLC and Seylan Bank of Ceylon. I have chosen various business
analysis and their environments that will help you understand the project better.

Understanding the relevance of the organizational classification by their type, size, scope,
organizational structure and their key stakeholders, Organizational functions,
Interrelationship and advantages and disadvantages of interrelationship is the goal of this
project.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 8

Introduction
Banking is defined as the business activity of accepting and safeguarding money owned
by other individuals and entities, and then lending out this money in order to conduct
economic activities such as making profit or simply covering operating expenses.

Each and every business person should understand consumer behavior before planning a
business and also need to analysis the Environment of their business. In the process of
identifying and analysis of business environment we need to consider Micro and Macro
Factor of the business environment.

This assignment will provide a wide explanation that how to understand a business
industries and their environment in this business world.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 9

SECTION - A
1. WHAT IS BUSINESS?
An organization or entrepreneurial entity engaging in commercial, industry or
professional activity is referred to as a business. Business can be for-profit or non-profit
enterprises dedicated to a charity goal or a social cause.

1.1 WHAT IS BUSINESS ENVIRONMENT?

The factors of the surrounding commercial enterprise that impact or influence its
operations and determine its effectiveness are referred to as the business environment.
"The business environment is the sum of all conditions, events, and influences that
surround and affect it”.

1.2. WHAT IS AN ORGANIZATION?

An organization, such as a neighborhood association, a charity, a union, or a company, is

a collection of individuals who work together. The term organization can apply to a group
or a corporation, as well as the process of organizing or establishing anything.

1.3. DIFFERENT TYPES OF ORGANIZATION

There are a variety of legal types of organizations. Organizations are groups or entities
founded with the goal of achieving a certain goal or purpose. In today's corporate world,
several types of organizations exist, each designed to perform a certain purpose and meet
the needs of the societies in which they operate. Examining an organization's aims and
purpose is the most common way to tell them apart. Some businesses exist to generate
money, while others exist to further a social purpose or improve society's well-being.
Based on this data, it is possible to distinguish between for-profit, non-profit, and non-
governmental organizations (NGOs), political organization, international organizations,
armed forces, charities, non-for-profit corporations, partnerships, cooperatives and
educational institutions etc.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 10

1.4. DIFFERENT TYPES OF ORGANIZATION (SIZE)

As previously said, not all businesses are run for profit. Businesses (or enterprises)
founded with the primary goal of profit generating, on the other hand, do not have to be
massive international firms with a large staff. They come in many sizes: micro, small,
medium, and large. The number of workers, owners and/or shareholders, market share
(i.e. their fraction of total market sales in the relevant industry), and legal status are the
differentiating elements between various sorts of enterprises.

1.5. SCOPE OF BUSINESS ORGANIZATION

The scope of corporate organizations has considerably expanded since the Industrial
Revolution.

1. Sole proprietorship
2. Partnership
3. Joint Stock Company

 Let’s we take three Sri Lankan based companies for more clarification

Mahendren Jeewaprashan Business and Business Environment Assignment 1 11

1.6 Introduction to different types of organization
Organizational structures can generally be broken down into three categories: functional,
divisional, and matrix. A functional organizational structure involves segmenting an
organization into various departments, such as IT, finance, and marketing, based on those
departments' functions.

On the other hand, organizations with a divisional organizational structure have divisions
based on geographic regions or product lines. Each division in this form of organizational
structure has its own departments, including those for IT, finance, marketing, and other
areas.

The organizational matrix includes both functional and project-based elements. Project
managers and heads of functional departments are the two bosses that employees in these
organizations answer to.

1.6.1 Private Sector Organization

The portion of an economy that is managed by people and businesses as opposed to the
government is known as the private sector. The majority of businesses in the private
sector are operated with the goal of making money.

1. Sole Trader

A business held by one individual is known as a sole trader. They typically don't have
large sizes. Electricians, butchers, and hairdressers frequently work alone. One-person
businesses are financed by their own funds, bank loans, or loans from friends and family.

Advantage Disadvantage

All of a sole proprietor's earnings go to The drawback of limitless liability for sole
themselves. proprietors outweighs all the risks
associated with starting their own
company.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 12

 They are allowed to govern the company They have unlimited liability and intense
as they see fit of workload.

Taking sole responsibility for all major undertake the work themselves and saving
choices. their money.

Compared to other forms of organizations, It could be challenging to raise money

it has less rules and restrictions.

2. Partnership
A partnership may include as few as two participants and as many as twenty.
Partnerships are frequently used by law firms, real estate agencies, medical
practices, and dental offices. The partnership deed establishes a partnership as a
legal entity.

The partnership's rules are outlined in the deed of partnership document. For
instance, it details the financial contributions made by each partner to the
partnership as well as their respective responsibilities. A sleeping partner is a
partner who makes investments but is not actively involved in managing a
partnership.

Advantage Disadvantage
Partnerships have greater financial Partners may differ and quarrel over
capacity than individual proprietors. the course that their company will take
in the future.

Different partners can contribute Profits are split between two and
various abilities to the company. twenty people.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 13

 The workload and accountability of Partnerships have limitless
the firm can be divided among responsibility, just like solo
partners. proprietors do.

3. Private Limited Company

A private limited company can only have a limited number of shareholders and is
legally constituted with limited liability or legal protection for them.

A privately held firm for small businesses is called a private limited company.
Members of a Private Limited Company are only responsible for the quantity of
shares that they actually own. Private Limited Company shares cannot be
exchanged on a public market.

Advantages Disadvantage

The business has a separate legal By its articles, it limits the

personality in a legal sense, thus its transferability of shares.
assets and liabilities are distinct from
those of its directors. They both count
differently.

A Private Limited Company can be No more than 50 stockholders may be

established without a minimum present.
amount of money.

A public database contains the The public cannot receive

company's information. As it's simple prospectuses from it.
to verify the information, this raises
the company's reputation.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 14

 A Private Limited Company is open to It is not possible to quote shares on the
direct investment from any foreign stock exchange.
business or individual.

4. Public Limited Company

A corporation may decide to become a public limited company as it expands
(PLC). Shares in a PLC are offered for public purchase on the stock market.
Shareholders are those who own shares. They take on equity in the company and
have a say in how it runs. The firm' operations are managed and supervised by the
CEO and board of directors.

It is referred to as "floating on the stock exchange" when a company sells shares

on a stock exchange.

Advantages Disadvantages

The company is capable of obtaining Due to the fact that the company has
further funding through share capital. no control over who purchases its
shares, the danger of a hostile takeover
by a competitor is higher.

The responsibility of the stockholders Investors can anticipate receiving a

is restricted. portion of the profits as dividends.

Greater options for pricing Conflicts amongst shareholders may

negotiations with suppliers because arise when deciding how to run the
larger companies can benefit from company
economies of scale.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 15

 5. Franchise
An entrepreneur may decide to launch a brand-new independent company and
compete for clients. An alternative is to invest in an established company and
obtain permission to employ an existing business concept. We refer to this as
franchising.

A franchise is an association of:a franchisee who purchases a franchisor's

permission to reproduce a business model. Likewise, a franchisor offers the right
to employ a business concept in a specific area. Fast food chains and numerous
renowned high street opticians are franchises.

The risk of starting an independent retailer is typically lower than that of opening
a franchise. In a brand-new neighborhood branch, the franchisee is using a tried-
and-true business strategy to market a well-known product.

Advantage and Disadvantages of Franchising

Advantages Disadvantages

Franchising lowers the danger of a Initial franchise purchase prices,

company failing. ongoing management service fees, and
a possible requirement to commit to
purchasing goods from the franchisor
are all included.

Products and services will already Typically, there are limitations on how
have a market share established. we may operate the firm in the
franchise agreement. may not be able
to alter the product to fit the needs of
the local market.

Gives support, typically in the form of Normally, the franchisor receives a

a comprehensive package that includes percentage of all earnings (based on

Mahendren Jeewaprashan Business and Business Environment Assignment 1 16

 training, assistance with business sales).
setup, a manual on how to run the
business, and ongoing guidance.

Can employ a well-known brand name The brand could have a bad reputation
and trademark. from other franchisees, so the hiring
procedure must be thorough.

Cooperatives

A private collection of small enterprises that decides to pool their resources for the good
of all members is known as a business cooperative. This is a group of independent
enterprises coming together to work toward shared objectives; it differs from many
brands operating under a single parent company. Joining a cooperative might have
disadvantages even if it can boost a business's purchasing power and save costs through
service sharing. These include a certain loss of operational control and a decline in
competitiveness.

Advantages Disadvantages

Members have equal access to the Cooperatives are less likely to provide
polls. investment incentives.

This system promotes participation Underinvestment is a major issue

and shared accountability among cooperatives deal with.
members.

Limited members' liability. Cooperatives have trouble developing

distinctive branding.

There is no cap on the number of Owners and founders of cooperatives

participants. don't see as much financial gain.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 17

1.6.2 Public Sector Organizations

The public sector is often made up of businesses that are run and controlled by the
government and exist to serve the needs of the populace. Thus, public sector
organizations provide governmental services or any other services that benefit the entire
society as opposed to just the individual who uses them, such as infrastructure, public
education, water management, health care, the military, and law enforcement.

The term "public sector" refers to all branches of government, including the federal, state,
and municipal government. A privately owned, independently operated organization that
serves society as a whole. The term "public sector" refers to all branches of government,
including the federal, state, and municipal governments.

Advantage and Disadvantage of Public Sector.

Advantages Disadvantages

The benefits of scale Difficult to control

Easier collaboration and planning Risk of creating things that are ineffective

Safeguarding the public interest Political interference

Obtaining money using unorthodox means Disregard for consumer interests

Independent setup Expensive to operate and maintain

1.6.3 Voluntary Organization

According to SCVO, voluntary organizations must be independent, non-statutory, non-

profit, and administered by people who are not paid for their work. The Inland Revenue
recognizes some nonprofit organizations as charities.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 18

The distinction between voluntary and other organizations has no established, unbending
boundaries. The following exclusions, however, are justified by the idea that the nonprofit
sector reflects a distinctive set of values. There are specific exclusions established for
practical reasons even within the group of organizations that adhere to this value system.

The Advantages and Dis Advantages of becoming nonprofit organization.

Advantages Disadvantages

Grants from many foundations and A nonprofit organization requires time,

government organizations are only given money, and effort to establish.
to public charities.

A nonprofit organization is a distinct legal Since a nonprofit is committed to serving

entity from its creator that operates in and the public good, its financial records are
of itself. available for public review.

The assets of the nonprofit organization A nonprofit organization requires time,

are the only ones that can be used by money, and effort to establish.
creditors or the courts.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 19

3. Analyze how the structure, size and scope of different organizations
link to the business objectives and product and services offered by the
organizations.

Any organization's structure, size, and scope are connected to its overall business
objectives. Any firm that has a strong organizational structure is more likely to adopt a
lofty goal as their goal. It is impossible for an organization to achieve its goals if there are
few people in its organizational structure and no one is aware of their function or that of
their subordinates. This is because there is insufficient role clarity. On the other hand,
every commercial organization bases its goal on its size. If a corporation is large in scale
and makes significant financial commitments, it will establish a large target as its
business objective. Every business does, however, share a common goal in the form of
servicing consumers and making a profit, but the amount of profit varies depending on
the size.

Organizations assess their business scope to determine their business objectives. Any
corporation will create business objectives in line with its scope of service to national
clients. On the other hand, if they recognize that they deal with clients from outside, they
will adjust their business goals. An organization determines its structure, size, and scope
based on the product and service. Any company that realizes that their product doesn't
need a complex organizational structure won't set one up. On the other side, an
organization only generates a gigantic organization size and a scope if the business scope
for any product or service is extensive; otherwise, they build a modest sized organization.

Volunteer Sector Leo Club

Mahendren Jeewaprashan Business and Business Environment Assignment 1 20

The foundation is managed by an unpaid management committee under this type of legal
arrangement. A prime example of this kind of group is the Leo Club. The organizations,
that like Leo Club, prefer to carry out charitable activity for the benefit of society rather
than working for financial gain. They may claim that they do their jobs to benefit a group
or society. The government or various trusts heavily favor or support organizations in the
voluntary sector. Leo Club does not, therefore, have a distinct legal character because it
belongs to the voluntary sector. The management team or the company's members act as a
collective of persons; they are not considered a distinct legal entity and other similar
investments and are always tax free.

Public Sector Open University

Larger businesses than those in any other sector are included in the public sector. If we're
using an illustration, Open University fits within this group. For more than 50 years, The
Open University has been a leader in distance education, providing top-notch instruction
and outstanding support to students all over the Sri Lanka. Even the Open University
follows the same trend in how the Sri Lankan government treats the legal sector of the
public sector education industry. Public organizations that offer their services to the
general public, like Open University, are considered as nationalized industries. Because it
is a successful organization for providing education for students, Open University can
also be well-known in the educational sector.

Private Organization Nestle

These are businesses that are controlled and owned by private individuals. In Nestle Sri
Lanka is controlled by a director board. To conduct business, corporations must abide by
a number of regulations set by the Sri Lankan government. The directors are completely
liable. In this corporations' primary goal is to maximize profits through satisfying
customers' wants and demands. Private businesses strive to change efficiency by making
the best use of resources. One example of a private company is the food and beverage
sector, which includes Nestle and its goods. Nestle is used as an example of a firm.
Unlocking the power of food to improve the quality of life for everyone, now and for
future generations, is the core goal of this kind of business. to adhere to CSR standards

Mahendren Jeewaprashan Business and Business Environment Assignment 1 21

and improve organizational climate and culture. Companies in the private sector, like
Nestle, may also include small or family-run enterprises. The government does not
control or own it. They cannot sell their shares to the general public because they are a
private firm. Private sector businesses have their own unique legal identities; Nestle, in
particular, has a unique legal identity that places restrictions on what they can do.

2.Relationship Between Organizational Functions &

Organizational Structure?

Functional Structure Separates Departments

Most businesses adopt a functional organizational structure with a chain of command.

In other words, different functions go into separate departments that report to
department managers, who then report to someone higher up. If you adopt a functional
structure, it has the advantage of clear lines of authority, with key decision-makers in
each department who set the overall mission and tasks.

The structure allows each employee to concentrate on her particular mission. A

functional structure for an organization is not without its drawbacks, however. You can
end up with departments that don't talk to each other or cooperate well. A customer may
get bounced from department to department if his problem doesn't relate to one
particular function.

Divisional Structure Has Many Branches

A divisional organizational structure spreads functions across different branches: If you

have different product lines, the division for each product line has its own functional
groups such as marketing, R&D, sales and accounting. The advantage of this approach is
that each division of the company has the personnel to carry out all necessary functions.
In essence, each division can carry out its business operations more or less autonomously.

The drawback is that with employees in each division performing identical functions,
you could end up with a lot of redundancy and inefficiency. For instance, managing five
human resource operations, rather than a single, centralized operation, means
duplication of functions, managements systems, policy development and so on.

Matrix Structure Provides Flexibility

Using a matrix structure in your business can give you greater flexibility in business
functions than a more hierarchical organization. In a matrix structure, each employee
works in a function-based department, such as marketing or finance, but they can be
Mahendren Jeewaprashan Business and Business Environment Assignment 1 22
assigned to projects under different managers and teamed with employees who have
different functions. This structure adapts organizational function to changing
organizational needs. The drawback is that the chain of command in a matrix may
become cloudy and conflicted.

Visualize With Organizational Charts 

If you or your staff have trouble visualizing a proposed structure, you can use an
organizational chart to see it clearly. The New York and Erie Railroad developed the
first organizational charts in the 19th century as a way to improve management
efficiency. A chart shows the lines of authority and control running between different
departments and levels of management. A well-designed chart will make it easy to see
who makes decisions, who reports to whom and how your organization divides up its
operating functions.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 23

2. BANK OF CEYLON

Bank of Ceylon (BOC) was founded in 1939, with Sir Ernest de Silva as its first
chairman. At the time, Ceylon was a British colony and the then governor Sir Andrew
Caldecott ceremoniously opened the bank on 1 August. The British government
introduced the banking arm for its government-oriented businesses. Two years later, in
1941, BoC started to expand beyond the city of Colombo. It opened its first branch
in Kandy. Subsequently, BOC added branches in major cities such
as Galle, Jaffna, Kurunegala, Batticaloa, Trincomalee, Badulla, and Panadura. And BoC
has its branches in Srilanka, Maldives, India, United Kingdom and Seychelles.

Bank of Ceylon comes under the large business organization which means, a large scale
organization is a type of corporation or enterprise with clearly defined goals and a large
pool of people and material resources to assist in the production process and maximize
profits. This bank sector has 8479 employees, the bank has a network of 628 branches,
689 ATMs, 123 CDM network and 15
regional loan centers within the country
(2020).

Bank of Ceylon consider as for profit

organization. For profit organization
refers as an organization is one that
operates with the goal of making money.
This bank provides retail banking,
corporative banking and investment banking services to their customers. And they earns
income from them. This bank used to get Rs.16.307 billion (USD$333.113 million) net
annual income. A banking corporation domiciled in Sri Lanka, duly incorporated on 1
August 1939 under the Bank of Ceylon Ordinance No. 53 of 1938. A licensed
commercial bank established under the Banking Act No. 30 of 1988.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 24

2.1. Governance Structure of BoC

Mahendren Jeewaprashan Business and Business Environment Assignment 1 25

2.2. BOC Current Account

BOC Current Account offers a variety of features to help you manage your personal and
business affairs. Through BOC online banking and mobile banking, you may manage
your current account around the clock, from anywhere and at any time of day.

Type of Current Accounts

Individual Accounts for Buddhist Monks

Sole Proprietor Government School Accounts

Joint Non-governmental School Accounts

Partnership Government Ministries and Departments

Limited Liability Company Corporations/Boards set up by act of

parliament
Societies and Clubs  Government Accounts

Associations and Trade Non-Government Organizations

Unions
Co-operative Societies Accounts opened under special purposes

2.3. Stakeholder of BoC

Mahendren Jeewaprashan Business and Business Environment Assignment 1 26

The most important stakeholders in every company are its main stakeholders. Any
professional who is affected by a company's operations, projects, or successes is referred
to as a stakeholder. The types and levels of interest that stakeholders have in a corporation
differ. A significant stakeholder is one of a company's most essential stakeholders.
Because they are most affected by a company's operations, key stakeholders are
passionately engaged in its success. Similarly, a company's success and growth are
frequently dependent on its primary stakeholders.

Feedback received from the Bank’s stakeholders form a critical input when formulating
strategy, designing products and determining delivery channels. Given the size and depth
of its operations, the Bank has the opportunity of reaching a diverse and large base of
stakeholders; formal and informal platforms are in placed to proactively identify and
respond to their varying needs. The Bank selects and engages with the stakeholders who
are likely to be most impacted by its decisions and who in turn have the most significant
impact on its value creation. Engagement is facilitated through numerous formal and
informal platforms and the feedback thus obtained forms a vital input in our corporate
planning process.

Roles of Key Stakeholder

 Providing financial support to the business.

 Helping with business initiatives and assignments.
 Asking for updates on business’s current projects or recent developments.
 Contributing during planning or company leadership meetings.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 27

Stakeholder Engagement based on annual report -2020

3. Commercial Bank of Ceylon PLC

The bank was originally formed in 1920 and carried banking practices under the name as
Eastern Bank. The first branch of Eastern Bank Ltd. (EBL) was opened at Chatham Street
in Fort. During the 1930s and 1940s, the Barclays Bank acquired the shares of the Eastern
Bank.[9] The Chartered Bank bought the shares of Eastern Bank from the Barclays Bank
in 1957 but the Chartered Bank ran the Eastern Bank for duration of only four years. On
25 June 1969, Commercial Bank was Ceylon Ltd. was incorporated with Eastern Bank
holding 40% of its equity.[10] Veteran judge V. Manicavasagar served as the first chairman
of Commercial Bank when he was appointed to the position in 1969.[9]

Mahendren Jeewaprashan Business and Business Environment Assignment 1 28

In terms of net worth and capital, it is the most powerful private bank in Sri Lanka. In
terms of total net assets, the bank is presently the third largest in Sri Lanka, trailing only
the Bank of Ceylon and the People's Bank (both are state commercial banks). According
to the Central Bank of Sri Lanka, it is also the countries only private sector licensed bank
to be classified as a higher-tier domestic systemically significant bank. In Sri Lanka, the
bank has 268 branches and 932 ATMs. It has 5702 staff And it is consider as for profit
organization as well as, It earns Rs. 24.290 billion net income per year. (2021)

3.1. Governance
Structure of
Commercial Bank
PLC

The Bank's governance structure

is based on the Board, Board
Committees, Management, and
Management Committees having
well-defined roles and duties,
enhanced responsibility, and
clear reporting lines. The Board
of Directors and Board
Committees are in charge of formulating strategy, defining risk appetite, and exercising
supervision, while Management and Management Committees are in charge of
implementing strategy and driving performance.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 29

3.2. Stakeholders of Commercial Bank PLC

As evidenced by global developments, the proliferation of social media, from instant

messaging and blogs to social networking sites, has made it possible for anyone to be a
stakeholder, making the selection and prioritization of stakeholders to engage with
difficult, as well as changing the way corporations communicate with them. In addition to
these challenges, the recent unusual conditions have produced an urgent need to engage
thoroughly with stakeholders in order to properly understand their concerns and
ambitions and adequately engage with them.

Key Stakeholders

Mahendren Jeewaprashan Business and Business Environment Assignment 1 30

Stakeholders Engagement based on annual report -2021

Mahendren Jeewaprashan Business and Business Environment Assignment 1 31

Mahendren Jeewaprashan Business and Business Environment Assignment 1 32
Mahendren Jeewaprashan Business and Business Environment Assignment 1 33
 4. SEYLAN Bank PLC
Seylan Bank was incorporated on 28 August 1987 as a Public Limited Liability Company
and founder chairman was Dr. Lalith Kotelawala. It established its first subsidiary, Seylan
Merchant Bank Limited, in 1992. A second subsidiary, Ceylinco Seylan Development
Limited was also established in 1992,
primarily for the purpose of constructing
the Bank's head office building, Ceylinco
Seylan Towers.

Seylan Bank introduced Sri Lanka's first

homegrown credit card and they also had a
partnership deal with Western
Union which is a global money transfer
system.

Seylan Bank PLC considered as a large

organization. It has more than 3000 employees, 167 Branches Island wide and 205
ATMs. It is a for profit company. It earns US$ 7.8 million Net income annually. It
provide Banking and financial related service to its customers.

4.1. SEYLAN PLC’s Governance Structure

Mahendren Jeewaprashan Business and Business Environment Assignment 1 34

Governance Structure – Risk Management

4.2. Stakeholders of Seylan Bank PLC

Having determined distinctions of volatiles environment through space of corporate

business strategy aligned to the vision and mission of our bank and also following the
directions of the governing board and its subcommittees, we are well in step with
aspirations to create sustainable value to all our stakeholders namely investors,
employees, customers, suppliers, and business partners and the Environment.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 35

Stakeholder Engagement based on annual report - 2020

5. ORGANIZATIONAL FUNCTIONS
An Organizational function is a core process or set of activities carried out within a
department or area of a company. Common functions include,

 Marketing.
 Human Resources.
 Information Technology.
 Customer Service.
 Finance.
 Warehousing.
There are two categories of functions,

1. Front-office functions – are those directly connected with customers. Marketing,

Sales and Customer services are the primary front office functions.
2. Back-office functions – supports front-office activities but they do so behind the
scenes. HR functions, IT and Warehousing all fit into this category. These functions
are important to the success of an organization.

5.1. Human Resources

An HR/ Personnel Officer's job description in a bank comprises a variety of tasks and
responsibilities. It covers employee recruitment, selection, training, and development, as
well as evaluating employee performance and maintaining personnel database records.

BANK HUMAN RESOURCE

They have a committee that includes 4 members for HR-related
purposes.
Principle Focus
This Committee focuses on assisting the Board in Human

BoC Resource matters primarily on the evaluation of the KMP.

Area of focus
Reviewed the goal and target-setting process in respect of the
KMP
Followed up on the action plan to develop the employees with the

Mahendren Jeewaprashan Business and Business Environment Assignment 1 36

 required skills, knowledge and attitudes. Initiated a discussion on
organisationaltion structure of the Bank to be followed up going
forward. Recommended adoption of the following policis ,
 Transfer Policy for the employees below the grade of
Manager.
 Revised Human Resource Policy of the Bank.
 Job Rotation Policy on job role.
BoC
 Revised Exit Interview Policy of the Bank.
 Training and Development Policy
Recommended adoption of the Scheme of Recruitment
covering external recruitments.

Setting guidelines and policies on any matter that may affect the
Human Resource Management of the Bank and making
recommendations on policy matters to the BHRRC and/or
addressing any issues that may need to be reviewed the at Board
level.
Commercial Bank recognizes that its most significant asset is its
employees. Their professionalism and expertise, as well as their
different origins, experiences, and perspectives, have all aided our
Commercial
achievement. We, in turn, motivate our employees by giving fair
Bank PLC
opportunities and compensation, as well as helping them toward
their personal and professional objectives through training and
skill development.
We also endeavour to assist our employees in achieving a healthy
work-life balance. While the Shop and Office Employees Act
governs employee relations, the Bank goes above and beyond
these requirements in terms of benefits. Our top priorities are their
well-being, growth, and happiness. We are convinced that a good
collective bargaining process encompassing employee

Mahendren Jeewaprashan Business and Business Environment Assignment 1 37

 remuneration and human rights issues fosters strong relationships
with trade unions and the executive association, ensuring our
company's long-term existence.
The Bank employs more than 4,800 permanent and full-
time employees, along with nearly 500 people on fixed-term
contracts. Certain non-core functions are outsourced,
based on business imperatives, to enhance productivity and
remaining competitive. In this regard, security and janitorial
staff, stenographers, typists, telephone operators, multi-task
assistants, drivers and office assistants are outsourced. As
a policy, the Bank does not recruit employees on a part-
time basis.

The Committee assists and makes recommendations to the Board

of Directors in exercising its oversight role and responsibilities on
matters related to human resource strategies and policies and
determination of compensation, benefits and remuneration for the
Directors, the Chief Executive Officer (CEO) and Key
Management Personnel (KMPs) of the Bank. The Committee
provides necessary guidance and advice on matters of strategic
importance related to human resources and rthe emuneration of
Seylan Bank PLC
other employees of the Bank as well.
KEY HIGHLIGHTS OF ACTIVITIES OF BHRRC DURING
THE YEAR
• Approval of the Key Performance Indicators (KPIs) of the
KMPs for the year under review
• Evaluation of goals and targets (KPIs) of KMPs
• Revised the KPIs evaluation approach and evaluation format for
KMPs
• Initiation of a workplace culture assessment and transformation
• Approval of the Human Resources Roadmap 2021-2023

Mahendren Jeewaprashan Business and Business Environment Assignment 1 38

 • Approval of Training and Development Plan 2020/2021
• Review and recommendation of many of the human resources
related policies • Guidance on Collective Negotiation Process for
Salary Revisions REMUNERATION POLICY The
Remuneration Policy of the Bank aims to establish a formal and
transparent procedure for determining remuneration, salaries and
allowances and other financial benefits and perquisites to
Directors, the CEO, the KMPs and all other employees of the
Bank. The policy and practices are linked to the achievement of
the short term and long term strategic goals and operational
objectives of the Bank and aims to attract, motivate and retain
qualified and competent persons at all levels.

5.2. Information Technology

In the banking industry, information technology refers to the application of sophisticated

information and communication technologies, as well as computer science, to enable
banks to provide better services to their customers in a secure, reliable, and affordable
manner, while maintaining a competitive advantage over other banks.

Bank Information Technology

The Terms of Reference of the ICT Committee are governed by
the ICT Committee Charter, approved and adopted by the Board.
The primary purpose of this Committee is to assist the Board of
the Bank in fulfilling their oversight responsibilities with respect
to the existence, operation and effectiveness of the IT products
and services, policies, practices and IT infrastructure employed
by the Bank. o manage various types of IT products and services
BoC including major technology investments. It ensures that the Bank
has a robust IT infrastructure and capabilities in place at all times,
follows best practice and maintains alignment with Bank’s
Corporate Plan by analyzing emerging trends in technology. The
Bank is confident in its ability to achieve its strategic
technological objectives. It plans to develop and extend its online

Mahendren Jeewaprashan Business and Business Environment Assignment 1 39

 banking capabilities, deploy a sophisticated mobile banking
system, serve all corporate client demands through tailored
solutions, reach 99.5 percent service availability across all
channels, and expand a 24 hour fully equipped call center.
The primary responsibility of the BTC is to assist the Board in
performing its oversight function on all Digital and Technological
strategies of the Bank and to evaluate all IT-related procurement
proposals and submit its recommendations to the Board. The
Committee has been empowered to: z Guide the Bank on building
Technology and Digital Strategy, reviewing the Digital Road
Commercial Map, Data Science & Machine learning strategies, Technology,
Bank PLC and Information Security Roadmaps z Ensure that the key
technology initiatives and emerging technologies support the
Bank’s business objectives z Oversee risks related to the quality
and effectiveness of the Bank’s information security strategies z
Review ROI of key IT initiatives.
Projects
 Combank Digital
 Banking on Social Media (Viber banking)
 ePassbook Revamping
 Automation of Lower counter operations of branches
 Government Payment Platform Integration
 Pay with Flash
 Remittance App Phase II with Remittance Tracker
integration
 Customer relationship management system
In conjunction with Citrix and V S Information Systems (Pvt)
Ltd., Seylan Bank becomes the first company in the local banking
industry to embrace SD-WAN (Software Defined Wide Area
Network) Technology, marking the next stage in their
transformative path into digitalization (VSIS).
Banks continue to incorporate technology into both back-end and
front-end operations to provide stronger security, improved

Mahendren Jeewaprashan Business and Business Environment Assignment 1 40

 operational efficiency, control, and increased quality as
technology continues to drive and affect the banking business.
Seylan Bank PLC
This is done solely to provide consumers with innovative and fast
solutions that meet their banking needs in a safe and secure
manner.
Seylan Bank offers a range of digital banking platforms including
Internet Banking, Mobile Banking, Internet Payment Gateways,
Merchant Portal Services, E-Statements, SMS Alerts, Pay Roll
Services, ATM and Kiosk channels, ensuring utmost convenience
to all Seylan customers. 
Seylan Bank, the Bank with a Heart, strives to provide its valued
clients with the finest banking experience possible by utilizing
cutting-edge technology, innovative products, and best-in-class
services. The bank has grown its reach with 173 branches, 70
cash deposit machines, 66 cheque deposit machines, and a 216-
unit ATM network across the nation to serve a growing clientele
of SMEs, retail, and corporate customers.

Information Technology used by BoC

Mahendren Jeewaprashan Business and Business Environment Assignment 1 41

5.3. Customer Services

Bank Customer Service

With an unmatched penetration rate of 64%, the Bank has
nurtured deep-rooted customer relationships across the Island.
Our strength in customer acquisition and retention is supported by
the Bank’s network of over 2,000 contact points, comprehensive

BoC portfolio of products/ solutions, brand visibility and strength and

continued focus on customer service and experience. The Bank
provides a wide range of investment, loan, transactional, and
foreign banking services to its broad clientele. Individuals'
consumer base, SMEs' customer base corporations and
government agencies Product design and development
Assessment is followed by development. market dynamics, and
the competition landscape and client requirements. Given the
conditions that prevailed during the year, the Bank launched
several propositions aimed towards supporting and reviving
customers. These include the following:
Individuals
• New comprehensive rural credit scheme
• Relief package to professionals and BoC pensioners
• Housing loan scheme for permanent carder salaried employees
in public and private sector on mortgage back securities
Customer Experience
 Launch of state-of-the-art contact Centre inclusive of
sophisticated integrated voice recognition facilities.
 Real time, 24x7 button-based Chat-bot covering deposits,
development loans, cards and digital products.
 Drive improvements in transaction processing time through
automation and digitization.
Customer satisfaction is measured through regular surveys
conducted by the Bank’s dedicated Research Unit and in 2020 the

Mahendren Jeewaprashan Business and Business Environment Assignment 1 42

 unit conducted two surveys to measure customer service quality
and product awareness in Western Province South and Central
Province.

Bank Customer Service

The Bank provides an unrivalled banking experience by getting
to know its clients – their requirements, preferences, and
worries – and then reacting with products and services that
match, if not surpass, their expectations. It also entails adjusting
internal attitudes and practices to be flexible and relevant in a
fast changing operational environment.
Commercial Bank Illustrated below is the customer segmentation, which enables
PLC the Bank to gain a deep knowledge and understanding of the
customer and better align with their unique banking
requirements. We build engaging, emotional digital solutions
that enable banking at your fingertips, anywhere, anytime,
thanks to changing customer behaviors and a rising desire for
speed, simplicity, and efficiency. We provide our clients with
exceptional digital experiences by curating an unequalled talent
Centre and a contemporary, scalable technology platform.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 43

Mahendren Jeewaprashan Business and Business Environment Assignment 1 44
 Bank Customer Service
Our company processes are unified by our customers. For the
Bank's ultimate success, they tie together all of our procedures,
products, and services. They are the customers who shape the
Bank's value generation process and lead to long-term growth. The
Bank aspires to align its goods and services with the changing
desires and needs of its clients. As a result, we are a customer-
centric company with a culture that prioritizes customers and
Seylan PLC
ensures their long-term pleasure. This premise also informs our
service proposal and directs our efforts in terms of improved
service offerings, product developments, and the ease and
accessibility of getting financial services and products.
In the banking and financial industries, technology has also
transformed customer service offerings. As a result, we're always
looking for new ways to incorporate technology into our operations
in order to provide our tech-savvy consumers with a better
experience.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 45

6. INTERRELATIONSHIP

Banks use relationship banking to increase client loyalty and provide a single point of
contact for a variety of goods and services. Relationship banking comprises a personal or
corporate banker delivering products to help consumers achieve financial objectives while
growing income for the financial institution.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 46

Relationship banks consult with clients, getting to know their specific circumstances and
demands, and responding to changes in their financial or commercial life. The
relationship banking strategy may be seen in a small-town bank, but it is also used in
retail branches of giant money Centre banks.

 Banks use relationship banking to provide a variety of products, improve client

loyalty, and earn additional revenue.
 Relationship banking is used by small, mid-sized, and giant money Centre banks
alike.
 Customers are frequently approached by relationship bankers with insurance,
investment, and certificate of deposit offers.
 Relationship banking may be taken too far, as seen by the Wells Fargo affair, in
which bankers established accounts without consumers' permission.

6.1. Advantages of Interrelated Banking.

Connection banking is exactly what it sounds like: a person or company owner

establishes a trusted, long-term relationship with their bank, generally through a single
banker or account officer.

I. Services and Solutions

This high-touch, one-on-one service allows you to take use of all of your bank's
services. Loans, lines of credit, corporate credit cards for managing and tracking
expenditure, insurance, and safe deposit boxes are all examples of this. Your bank
may also offer commercial services such as payroll and automatic payments, as
well as overseas services such as letters of credit.
II. Strategic Advices
Relationship banking also offers strategic counsel from a seasoned banker who
cares about your company's success.
If you run a seasonal firm or have inventory swings, for example, your
relationship banker may provide you with tools and techniques for managing cash
flow throughout such cyclical oscillations. Your banker may become a valued
partner by getting to know your companies and accounts and making product and
service recommendations.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 47

III. Goal Setting and Investments
A relationship banker may also assist you in planning ahead of time for your long-
term objectives. They may help you identify important investments and
collaborations to undertake in the months leading up to your worldwide
expansion.

IV. Transition Planning

When the time comes, they can help you develop a strategy for departing the
business or passing it to a partner or your kid.
V. Wealth Management
If you want assistance with personal wealth management, your business banker
may connect you with the wealth management division of your bank and ensure
that the two plans are in sync.

6.2. Disadvantages of Interrelated banking

Clients, on the other hand, face several disadvantages, such as being locked into
one bank for most financial services and the danger of getting complacent rather
than evaluating services and costs among financial institutions. Another client risk
is privacy and data security, because the bank has access to integrated financial
data about the client and may use it for its own gain and as a negotiation tool.
Client accounts are heavily exposed if the bank suffers a data breach. Relationship
management may raise the bank's risk exposure with individual clients in the
event of failure.

When offering bank services to clients as part of a relationship banking

relationship, client consent is required. From roughly 2011 to 2016, the bank
adopted a defective and aggressive reward (and punishment) structure for
relationship bankers at certain retail locations, resulting in millions of additional
account openings. Customers did not authorise the bankers to open them, which
was the issue. Wells Fargo betrayed millions of consumers' confidence, which is
the bedrock of effective relationship banking. To conduct relationship banking for

Mahendren Jeewaprashan Business and Business Environment Assignment 1 48

 the mutual advantage of both the bank and the customer, a bank must establish a
culture of ethical service.

CONCLUSION

To conclude, BoC, Commercial Bank PLC, Seylan Bank PLC are very powerful firm,
according to the project we completed. They seek to be the best in the market by
investing heavily in research, promotion, and the usage of fair trade items in order to
provide the greatest quality services while keeping the client in mind. They want to
maintain their remarkable brand image, which they have worked hard to establish over
the years, but they also want to control the market.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 49

 ANNEXURE
Services provides by BoC

6.2.1.1. Awards won by BoC

Mahendren Jeewaprashan Business and Business Environment Assignment 1 50

6.2.1.2. Services provides by Commercial Bank PLC

6.2.1.3. Awards won by Commercial Bank PLC

6.2.1.4. Awards won by Seylan Bank PLC

Mahendren Jeewaprashan Business and Business Environment Assignment 1 51

REFERENCES
1. BANK-OF-CEYLON_Annual-Report-2020.pdf (boc.lk)
2. https://www.combank.lk/financials/annual-report/16/2021
3. 3BdAqsoAMIYoAOSxbhKwIxTk52oJ__Seylan Bank AR 2020.pdf
4. Relationship Banking (investopedia.com)

Mahendren Jeewaprashan Business and Business Environment Assignment 1 52

Provide critical analysis of the complexities of different
organizations and structures.

The measure of differentiation that occurs among the various organizational components
is known as organizational complexity. The amount of different professional
specializations that exist inside the organization is frequently used to operationalize this.
A lot of complexity exist in business today, such as changes to laws, rules, and
regulations, concerns with finances, technological advancements, infrastructure problems,
the availability of trained labor, a lack of experienced top management, etc.

There are several levels of complexity in various corporate structures, including:

Complexity in Public sector organization.

Organizations in the public sector must deal with a higher level of complexity than other
types of businesses. The largest challenge in public sector organizations is ensuring
stakeholder satisfaction. Today, it is particularly difficult to satisfy customer need
because of social media and networking sites, which often change consumer desire.
Organizations in the public sector have to deal with a lot more problems. Most of the
time, private sectors may need lengthy concession periods to collect more money from
more users. In contrast, the public sector can need shorter durations to safeguard the
interests of the general public. Private providers frequently have more flexibility in hiring
new employees, lower pay scales, and marketplace-like conditions. These could lead to
increased effectiveness.

A non-profit organization

Instead of being created for financial gain, Voluntary sector serve social purposes. A
significant difficulty in this kind of organization is internal control. The success of the
organization depends on the trustees, thus they should be good people. Even while
different governmental structures in every nation strive to combat the harmful effects of
poverty and the economic challenges of communities, many people still struggle to make

Mahendren Jeewaprashan Business and Business Environment Assignment 1 53

ends meet on a daily basis. When the government can no longer significantly fund other
areas, other segments of society step in to help. In this type of a non-profit organization,
there are many difficult issues to deal with, including proper documentation, risk
management, and fundraising. 2018 (Bryson).

Organizational complexity in the private sector.

Organizations in the private sector must handle everything on their own. Their
productivity determines both their profit and loss. The most difficulty in private sector
firms' financial management. The private sector is subject to a great number of onerous
rules and regulations that were implemented by the government. In the private sector,
there is virtually little diversification. Today's private sector firms face significant
obstacles due to improper management and pointless government procedures. 2016
(Axelsson & Easton).

A non-profit organization

Instead of being created for financial gain, Voluntary sector serve social purposes. A
significant difficulty in this kind of organization is internal control. The success of the
organization depends on the trustees, thus they should be good people. Even while
different governmental structures in every nation strive to combat the harmful effects of
poverty and the economic challenges of communities, many people still struggle to make
ends meet on a daily basis. When the government can no longer significantly fund other
areas, other segments of society step in to help. In this type of a non-profit organization,
there are many difficult issues to deal with, including proper documentation, risk
management, and fundraising. 2018 (Bryson).

Mahendren Jeewaprashan Business and Business Environment Assignment 1 54

 ASSIGNMENT - 01

Name: MAHENDRAN JEEWAPRASHAN

ESOFT Reg. No: 00135985
Student ID: E165872
Module Name: Business and Business Environment
Name of the Lecturer: Ms. Gayani Weerasinghe
Date Due: 24th July 2022
Date Submitted: 22nd July 2022
E-Mail: [email protected]
Contact No: 0772832289

E- SOFT CAMPUS

Mahendren Jeewaprashan Business and Business Environment Assignment 1 55

 Slide 1

Slide 2

Mahendren Jeewaprashan Business and Business Environment Assignment 1 56

 Slide 3

Slide 4

 Welcome
 About me
 Today’s topic discussion

Slide 5

Mahendren Jeewaprashan Business and Business Environment Assignment 1 57

 Introduction about the Bank

 Commercial Bank of Ceylon PLC also known as ComBank is a licensed

commercial bank in Sri Lanka and its ownership is private.
 The bank was originally formed in 1920 and carried banking practices under the
name as Eastern Bank.
 The first branch of Eastern bank ltd. was opened at Chatham Street in Fort.
 It was incorporate as a public limited company and it is listed on the Colombo
Stock Exchange.

Slide 6

Mahendren Jeewaprashan Business and Business Environment Assignment 1 58

  It is regarded as the largest private bank in Sri Lanka in terms of net worth and
capital.
 It is also the only private sector licensed bank in Sri Lanka to be designated as the
higher-tier domestic systemically important bank according to the Central Bank of
Sri Lanka.
 It is the largest lender to Sri Lanka’s Small and Medium Enterprise sector.
 The bank marked its centenary anniversary in 2020 and during the special 100 th
anniversary, the bank emphasized the main project focus on smart classrooms on
Science and Technology, Engineering and Mathematics to be established in 100
schools in Sri Lanka.

Slide 7

 Macroeconomics deals with aggregate productions, spending, and the price level
in an economy as opposed to individual industries and markets.
 The amount of macro environment’s influence depends on how much of a
company’s business is dependent on the health of the overall economy.
 The macro-environment can also directly affect consumers’ ability and
willingness to spend.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 59

 Slide 8

Slide 9

Economic factor
 Environment of the economy can have an effect on two essential aspects your
company’s level of production and the decision making process of your
customers.
 Some example of economic factors,
Exchange rates, Recession, Inflation, Demand and Supply.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 60

Slide 10

Social Factor
 It is crucial to understand that the product that you bring to the market can have a
strong impact on society.
 Purchasing Habits, Level of education, Religion and Beliefs, etc.

Slide 11

Technology Factor

 These factors are related to skills and ability that are implemented into production,
as well as all the material and technology that a particular products requires to be
made.
 They are essential and can have a big impact on how well your business is
running.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 61

  Some of the most common technology factors are
Internet connectivity, 3D technology, Wireless Charging, Etc.

Slide 12

Environment Factors
 Every business must also take into account the very planet and its resources.
 There are those that can be renewed, such as forests and agricultural products, and
those that cannot, such as coal, minerals, oil and the like.

Legal Factors

 Every business needs to be up to date with such forces worldwide in order to be able
to make the right decision.
 This generally includes legal factors such as,
Copyright Law, Employment Law, Fraud Law, Discrimination Law, Health and
Safety Law, Import and Export Law.

Slide 14

Mahendren Jeewaprashan Business and Business Environment Assignment 1 62

  Political influence has an impact on the economy, damaging the entire industry.
 Recent political changes and provincial elections has caused instability in the
political environment of the country, this has deteriorated not only banking sector
but also the entire market stability and performance.
Slide 15

 The exchange rates against Sri Lankan rupees have deteriorated significantly, and
monetary policies have tighten the economy.

Slide 16

Mahendren Jeewaprashan Business and Business Environment Assignment 1 63

  This population will mainly consider stable investment plans, saving deposits with
fixed payments and retirement plans with health benefits

Slide 17

 Anyone have smartphones can do his or her banking on the go.

Slide 18

Mahendren Jeewaprashan Business and Business Environment Assignment 1 64

  Now a days there is increasing trend among entities to disclose their
environmental and sustainability practices in their annual reports.

Slide 19

 This will increase the probability of uncertainties in the future of the business.

Slide 20

Mahendren Jeewaprashan Business and Business Environment Assignment 1 65

  Internal analysis.
 Strengths: Good communication skills, handle customer well, Physical strengths,
Good availability, etc.
 Weakness: Takes long smoke breaks, Low technical skills, Prone to spending
time chatting, etc.
 Opportunities: Storefront worker, helping keep customer satisfied, stocking
shelves, etc.
 Threats: Occasionally missing time during peak business due to breaks, Too
much time in interdepartmental chat, etc.

Slide 21

Mahendren Jeewaprashan Business and Business Environment Assignment 1 66

  Improved access to variety of financial services to their customers.
 One of the large innovative financial service provider in Sri Lanka.
 Strong brand name.

Slide 22

 Inadequate access to global financial system.

 Structural weakness- lack of industrial support institution, fragment industry
structure.
 Less credit period.

Mahendren Jeewaprashan Business and Business Environment Assignment 1 67

 Slide 23

 External Analysis.
 ComBank is planning to open new branches across the country and overseas all
well.
 New innovative products and services can help the bank to expand their business
and diversity their portfolio of products and services.

Slide 24

 ComBank has to focus on improving the customer’s satisfaction in order to sustain

the loyal customers.

Slide 25

Mahendren Jeewaprashan Business and Business Environment Assignment 1 68

  SWOT and PESTLE analysis together allow companies to get a combined view of
the internal and external resources, threats and opportunities.
 If there are disparities between chosen strategies and environments, than the
SWOT and PESTLE analysis can reveal what an organization can do to course-
correct.
 If company is ready to implement SWOT and PESTLE analysis, there are expert
business and market research firms with the analytics expertise to help.

Slide 26

Mahendren Jeewaprashan Business and Business Environment Assignment 1 69

  By using both strategies, managers can compare a business’s position relative to
other competing firms in the industry, along with the market trends affecting
them.
 Using them together, a business can enhance its strategies and established a
competitive advantage in the market.
 Companies can take advantage of these methods by doing a thorough and
comprehensive analysis off all the internal and external factors.

Slide 27

 Micro-environment has a direct or routine business activities and associated with

business at a small-scale.

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  It consists of different forces that are specific to a particular business and are
capable to influence daily operations and performance of the business for a shorter
period.
 This factors include: Suppliers, Shareholders, Customers, Employees,
Competitors, and Media.
 Suppliers – These provide resources to business like raw material, machinery or
equipment, etc.
 Customers – Customers being the king of any business are the final receivers of
products or service.
 Competitors – Competitors or rivals of businesses can directly affected business
strategies.
 Employees – Organization can achieve objectives through skilled employees who
are also experts in their areas.
 Shareholders – Shareholders are those who invest their money in a company and
also own shares of it.
 Media – Media channels also play an important role in the way organization
market themselves. Media has become the necessity of any business for
promotional activities of its products and services.

Slide 28 and 29

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  The 6 main elements of micro environment are customers, suppliers, media,
employee, shareholders, and competitors.
 The 6 main elements of macro environments are demographic, economic, natural,
social, cultural, technological, political-legal.
 The nature of the elements of the microenvironment is less complex and more
specific. Generally industry specific factors.
 Elements are more complex and general in macro-environment. More of regional,
national, or global.

Slide 30

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 Slide 31

 Conclusion.
 Thanking the lecturer and audience.
 Time for answering Question.

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 PESTLE AND SWOT ANALYSIS of Commercial bank of
Ceylon PLC

TABLE OF CONTENTS
1. Introduction of commercial bank of ceylon.
2. Macro environment factors.
3. Pestel analysis.
4. Pestel analysis for commercial bank of ceylon.
5. Swot analysis.
6. Swot analysis for commercial bank of ceylon.
7. Interrelationship between pestle and swot analysis.
8. Difference between pestle and swot analysis.
9. References.

Introduction about the Bank

 Commercial Bank of Ceylon PLC, also known as ComBank, is a private-owned

commercial bank in Sri Lanka.
 The bank was founded in 1920 as Eastern Bank and initially conducted banking
operations under that name.
 Eastern Bank Ltd. opened its first branch on Chatham Street in Fort.

 It was established as a public limited company and is traded on the Colombo

Stock Exchange.

 In terms of net worth and capital, it is regarded as Sri Lanka's largest private bank.

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  According to the Central Bank of Sri Lanka, it is also the only private sector
licensed bank in Sri Lanka that has been designated as a higher-tier domestic
systemically important bank.

 It is Sri Lanka's largest lender.

 The bank celebrated its centennial anniversary in 2020, and during the special
100th anniversary, the bank emphasized the main project focus on smart
classrooms on Science and Technology, Engineering, and Mathematics, which
will be established in 100 Sri Lankan schools.
Macro Environment
Macroeconomics, as opposed to individual industries and markets, is concerned with
aggregate production, spending, and price levels in an economy. The amount of influence
of the macro environment depends on how much of a company's business is dependent on
the overall health of the economy.

The macro environment can also have an immediate impact on consumers' ability and
willingness to spend.
Macro Environments Factors

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Economic factor

The economic environment can have an impact on two critical aspects of your company's
production and your customers' decision-making process.
Some economic factors include exchange rates, recession, inflation, demand, and supply.
Social Factor
It is critical to recognize that the product you bring to market can have a significant
impact on society. Purchasing habits, level of education, religion and beliefs, and so on.
Technology Factor

These factors are related to the skills and abilities that are implemented in production, as
well as all of the materials and technology that a specific product requires to be
manufactured. They are critical and can have a significant impact on how well your
business runs.

Internet connectivity, 3D technology, Wireless Charging, and so on are some of the most
common technological factors.
Environment Factors
Every business must also consider the planet and its resources. There are those that can be
renewed, like forests and agricultural products, and those that cannot, like coal, minerals,
oil, and so on.
Legal Factors

Every business must stay current with such global forces in order to make the best
decisions. This generally includes legal factors such as Copyright Law, Employment
Law, Fraud Law, Discrimination Law, Health and Safety Law, and Import and Export
Law.
PESTEL analysis for Commercial bank of Ceylon
Political factor
Political influence has an effect on the economy, harming the entire industry. Recent
political changes and provincial elections have caused instability in the country's political
environment, deteriorating not only the banking sector but also the overall market
stability and performance.
ECONOMIC FACTOR
The current economic environment is not favorable to the banking sector, according to the
Ministry of Finance and Financial Times.
This has clearly reduced consumers' purchasing power.

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Due to the high cost of borrowing, consumers are hesitant to obtain any financial
assistance loan or otherwise, and are looking for other modes of investment with higher
returns than banks.
Commercial banks, including the Commercial Bank of Ceylon, would be unable to attract
additional customers.
SOCIAL FACTOR
The growing aging population is a significant issue for Ceylon's commercial banks, as the
needs of this segment will be vastly different from those of other segments.
Whereas the millennial prefers innovative and tailor-made plans to fit their fast-paced
lifestyle.
To maintain market share and sustain in the market, Ceylon's commercial banks should
consider all customer segments and strive to satisfy them all.
TECHNOLOGICAL FACTOR
Because of recent advancements in mobile technology and mobile applications, all
government and private banks are launching mobile app banking in order to attract new
customers.
Traditional banking, such as visiting bank branches, is no longer required because all
transactions can be completed through online banking or mobile banking.
ave transformed commercial banking.
ENVIRONMENT FACTOR
With the involvement of banks in green environmental practices, there is a growing
concern for preserving the environment for future generations.
Green ATM banking has been successfully implemented by a prominent government
bank, and other private and government banks are adopting green environmental
practices.
Stakeholders and other corporate governance best practices encourage environmental and
sustainability reporting.
LEGAL FACTOR
In order for businesses to operate successfully, the legal environment, like the political
environment, should be somewhat stable.
Frequent changes in the legislative structure can undermine investor and management
confidence.
High tax rules and stringent compliance will force existing commercial bank of ceylon
investors to withdraw their investments and seek alternative sources of investment, while
potential investors will be barred from investing in commercial bank of ceylon.

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SWOT ANALYSIS

Internal examination.

Strengths include good communication skills, the ability to handle customers well,
physical strength, and availability.
Weaknesses: Takes long smoke breaks, lacks technical skills, spends too much time
chatting, etc.
Opportunities include working in a storefront, assisting customers, stocking shelves, and
so on.
Threats include: missing time during peak business hours due to breaks, spending too
much time in interdepartmental chat, and so on.
SWOT analysis of Commercial bank of Ceylon
Strengths
Advanced technology is a commercial bank's core strength.
Financial capacity has been increased.
A strong credit culture exists.
The world's largest private bank.
A leading provider of strategic intelligence on the Sri Lankan financial services industry.
WEAKNESS
High operating expenses.
Inadequate effort to mobilize deposits.
A significant number of nonperforming notes.
reliance on the domestic market

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Opportunities
Greater monetary value to its customers and employees.
Extremely market-focused.
International financial market access.
Strategic initiatives - opportunities for domestic and international business.
The Ceylon Commercial Bank is expected to grow by another 12% in the coming year.
THREATS
Market competitors include Peoples Bank, BOC, and HNB.
There is also direct competition for foreign competitors.
Failure of global banking.
The government introduces threats in the form of new rules and regulations.
Extending financial services to rural areas is too difficult.
INTERRELATIONSHIP BETWEEN PESTEL AND SWOT
PESTLE and SWOT analysis are critical for modern businesses. Similar to the two sides
of a coin.
Both the SWOT and PESTLE analysis frameworks assist businesses in making sound
decisions, identifying opportunities, managing innovation, and identifying areas for
gaining a competitive advantage.
Both frameworks analyze the environment based on different factors, giving businesses a
comprehensive picture of the opportunities and threats that exist for them.
They indicate whether it is profitable to invest in specific business activities.
These frameworks position companies for success through such thorough evaluation.
BENEFITS OF USING SWOT AND PESTLE ANALYSIS TOGETHER.
Using both methods together results in a thorough evaluation of a project.
Firms can identify potential threats to the organization and mitigate their impact.
It encourages employees to think strategically at all stages of the planning and
implementation process.
It develops a method for discovering new opportunities.
It enables a company to assess the impact of various decisions before implementing them.
It can be used on both large and small projects to identify factors that may affect success.
Micro environments

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The micro environment is unique to a company, its immediate location, or the industry in
which it operates.
Macro environment
The term "macro environment" refers to larger factors that can have an impact on a
business.

A micro-environment is one that is directly or routinely associated with business on a

small scale.
It consists of various forces that are unique to a particular business and have the ability to
influence daily operations and performance for a limited time.
Suppliers, Shareholders, Customers, Employees, Competitors, and the Media are
examples of these factors.
Suppliers provide resources to businesses such as raw materials, machinery, and
equipment.
Customers - The final recipients of products or services are the customers, who are the
kings of any business.
Competitors - Business competitors or rivals can have a direct impact on business
strategies.
Employees - Skilled employees who are also experts in their fields can help an
organization achieve its goals.
Shareholders - Shareholders are people who put money into a company and own shares in
it.

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DIFFERENT BETWEEN MICRO AND MACRO ENVIROMENTS

The microenvironmental factors affect only one business, whereas the

macroenvironmental factors affect all business entities.
The microenvironmental factors are controlled by the business, but only to a certain
extent. The macroenvironmental variables, on the other hand, are uncontrollable.
The elements of the micro environment have a direct and consistent impact on the firm,
whereas the macro environment has the opposite effect.
COSMIC analysis refers to the study of the microenvironment. PESTEL analysis, on the
other hand, is a study of the macro environment.

REFERENCES

Commercial Bank of Ceylon - Wikipedia

PESTEL - Overview, Factors, Examples, Financial Analysis
(corporatefinanceinstitute.com)
What Is a SWOT Analysis? Definition and Examples – TechTarget
Macro Environment Definition (investopedia.com)

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