98 - Business Enviornment

BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION..........................................................................................................................................................2
TASK 1...........................................................................................................................................................................3
A. Identifying different types of organisation and its purposes................................................................................3
B. Extent to which Marks and Spencer meet the objectives of their shareholders along with the responsibilities of
organisational strategies for meeting the needs of stakeholders...............................................................................3
TASK 2...........................................................................................................................................................................5
A. Different types of economic system in following countries.................................................................................5
M1.............................................................................................................................................................................5
B. Assessing impact of fiscal and monetary policy ..................................................................................................5
C. Different competition policy and other regulatory mechanism in UK.................................................................6
D1..............................................................................................................................................................................7
TASK 3...........................................................................................................................................................................7
A. Impact of market structure on pricing .................................................................................................................7
M2.............................................................................................................................................................................8
B. The influence of market forces ............................................................................................................................8
C. Cultural environment of Marks and Spencer shapes the behaviour of organisation............................................8
D2..............................................................................................................................................................................9
TASK 4...........................................................................................................................................................................9
A. Importance of international trade on UK business organisation..........................................................................9
B. The impact of global factors in UK business organisation ................................................................................10
C. Impact of policies of European Union on UK business organisation.................................................................10
M3...........................................................................................................................................................................11
D3............................................................................................................................................................................11
CONCLUSION.............................................................................................................................................................12

INTRODUCTION
Business environment refers to internal and external factors which can affect the
functioning of organisation like employees, management and the customers. In order to achieve
success in business, it is important to have an interaction in the business environment which
provides different opportunities. There are various types of conditions in the environment of an
organisation which can affect the functioning of business at a high level. Present report is based
on Marks and Spencer which is a public limited company and a British multinational retailer
with having its headquartering in London (Apăvăloaie, 2014). Further, it is also listed on London
Stock Exchange and engaged in selling of home products and clothing along with the luxury
food products. At initial level, company was started by two partners and they made their
reputation in early 20th century with a policy of only selling British made products. Further, main
emphasis of organisation is to provide appropriate quality of products according to the
requirement of customers. This report covers the purpose of various types of organisation and the
way in which M&S meets objectives of their stakeholders. Further, with the help of this report, it
provides a clear understanding of impact of fiscal and monetary policy on different types of
activities of business. Moreover, it also includes influence of market forces and response of
organisation in that particular situation. Lastly, analysing the impact of EU on the business
organisation of UK.

TASK 1
A. Identifying different types of organisation and its purposes
There are different types of firms which are mentioned below as it will be easy to
evaluate the way of working and the purpose of business.
Public Limited Company- Marks and Spencer is a public limited company which is
owned and controlled by the government and their main focus is on fulfilling the requirement of
customers. The stated always try to provide best quality of services at appropriate prices. The
major objectives of the business to become best service provider for their target market. Thus,
they are mainly focusing on providing high quality of services in order to satisfy large number of
customers.
Charity- In context of charity, Cancer research UK as their main aim is to provide
services to public and create awareness of charity in UK. Furthermore, its objective is to make
reduction in the number of deaths from cancer. They are collecting donations by organising
different events and functions so that the fund can be utilised for cancer patients. Thus, main aim
of company is to make enhancement and to take initiatives in terms of innovation related to the
cancer treatment (Aterido, Hallward-Driemeier and Pagés, 2011).
Private Limited Company- Primark is a private limited company and their main aim is to
earn high level of profit. The organisation develops different strategies that help them in
competing with the trends of market. In private company, main concern is on the quality of
product for attracting a wide range of customers. In this sector, major focus in on understanding
the needs of customers and providing services as per the requirement.
Co-operative company- In context of Co-operative Company where the activities are
controlled by business person. For instance, Daily bread is falls under this category and their
main objective is to provide services at wholesale prices along with the reduction in exploitation
of the customers.
B. Extent to which Marks and Spencer meet the objectives of their shareholders along with the
responsibilities of organisational strategies for meeting the needs of stakeholders
Stakeholders are those people which are having direct and indirect share in the business
organisation. There are certain stakeholders of Marks and Spencer like customers, suppliers,
employees and government that play an important role in achieving the goals and objectives of