Business Environment and Organizational Functions

This assignment discusses the dynamic nature of business environment and its impact on organizational productivity. It highlights the interconnectedness of various functions within an organization and the need for analyzing internal and external factors to achieve competitiveness.

Business and Business
Environment

INTRODUCTION
Business environment consist of collection of all individuals, entities and other factor
which may or may not be controllable within hands of an organisation. The factors that usually
affect an organisation are its performance, profitability, growth and survival for longer duration
of time (Anıl and Ficici ,2017). Eventually, every business organisation operates in a dynamic or
distinctive environment as it cannot exist in isolation . In this report organisation chosen are
Mark & Spencer(Private Sector),National Health Services(Public Sector) and Child Care
( Voluntary sector ). This report is going to analysis different types and purpose of organisation
as well as its size and scope. Moreover, identifying relationship between different organisation
function how they are interconnected with each other that help in fulling organisation goals and
objectives. Eventually, evaluating positive and negative impacts of macro environment on
business operation and day to day activities. Furthermore, conducting internal and external
analysis in order to identify strength and weaknesses of a respective organisation as well as
evaluating how this factor are interrelate with external macro factors.
TASK 1
P1 Different types and purpose of organisation and its legal structure
In today's era business environment determines various types of organisation that deals in
different sector in present competitive marketplace. Additionally, each and every business has
its own motive, goals and objectives for performing their business operation and day to day
activities. Herein, there are different types of organisation which are determined below:
Private organisation: A private organisation is part of economy that is run by individuals or
group of people in order to earn profit in competitive marketplace. This sector is a diverse sector
that are usually a big part of economy.
For example: A private sector organisation, Mark & Spencer is a British multinational
retailer which is specialises in selling clothing, home products and luxury food items in
competitive marketplace.
Purpose: Its main purpose to offer high quality of product to its consumer as well as attain
huge market share in clothing and luxury food items.

Legal structure of private organisation: Herein, Mark & Spencer are following flat
organisation structure as they have limited levels of management between administration level
and front lines of employees.
Sole traders: Sole trader are individuals who control and manages their business of their
themselves. In this business an owner is responsible for all its business losses, expenses and
profit that is generated by them on their daily business activities and operation.
Partnership: A partnership is a legal agreement which consist of two or more individual
in cooperate to manage and operate business. Herein, all profit and liabilities are shared
proportionally as the amount invested is known as capital in which each partner is liable for all
profit and losses.
Stakeholder of Mark & Spencer: The stakeholder of Mark & Spencer are owner, internal and
external stakeholder as well as its customer's.
Public Organisation: Public sector organisation is usually comprises of an economy that
provides a rage of governmental services, including infrastructure, public transportation, health
care and military services.
For example: National Health Service, affiliated to health and social care services for
general people. Each service is provided with wide variety of heath services to ordinary people
in at world wide.
Purpose: The purpose of National Health services is offer its product and services as per need
and preferences of an individual patience as well as fulfilling needs of nation in attractive
manner.
Legal structure of Public Organisation: The legal structure of this organisation is to provide
wide range of health services as its main aim is to extent its consideration to meet requirement
of general people.
State government: A state government is a unit of government that usually abide laws
and regulation for a particular state. It has been reserved with powers and responsibilities for
administrating local needs and problem of a particular state or region.
Central government: A central government is one who owns absolute control over over
a single state. This government governs entire nation which is responsible for its policies which
is determined to control economical growth of a particular state.

Stakeholder of National Health Services are: National health services stakeholders are National
School Of Health Science (NSHS), National West Healthcare Science Network and Health
Science Professional Bodies and Academy for Health Science (AHCS).
Voluntary Association:
A voluntary association consist of one or more people or individual who involve
themselves in order enter in business to fulfil a determined goals. It usually consist of people
who are joined together on fulfilling mutual interest to work towards society's welfare.
For example: Child Care is one of the support combination which generally work for
children and general people.
Purpose: Its main motive is to work towards welfare of poor and needy children and society.
Legal structure of Voluntarily Association: Child Care are determining as they are devoting
themselves towards welfare of poor and needy children. Moreover, taking responsibilities for the
welfare of society or nation.
Trustee: A trustee is person or members who are given power to control administration
for particular sector (Burayidi, 2013 ). Additionally, it consist of person who naturally
committed towards beneficial of this purpose.
Charity: Charity is a kind of business that raise money in order to help general and
needy people who are in need of help. It usually determine of donating money,food and useful
things to needy ones.
Stakeholder of child care: The stake holder are local authority, community, employees and
donators.
P2 Size and scope of different type of organisation
Mark & Spencer
Mark & Spencer is leading retailer store in world wide. Its main aim is to offer high
quality product or services in competitive marketplace.
Size: It is expanding its business as to increase size of luxury food items along with
fashionable clothing sector
Mission: To develop best offerings of its products to its potential customers in order to
have valuable penny of customer's.
Vision: To attain leadership in marketplace by attaining customers need and demand in
competitive edge.

Scope: Its is ranging in international marketplace with more that 40000 product line.
National Health service
National Health service is leading health care service that is owned publicly in order to
provide good health care irrespective class of people.
Size: It is developing up largest employees and staff members in healthcare industry
operating more that one region.
National Health service is sizing up of largest group of employers in health and service industry
as well as operating over more than one region.
Mission: To offer healthcare offerings to family and needy people.
Vision: Offering healthy services to local people and self dependent people with high
offering and care.
To provide a healthy services to general people and independent lives through high quality and
seamless care.
Scope: To attain core and effective employees that add value premium quality of
offerings in order to attain patience as well as listening to their problems and communicating
them clearly.
Child Care
Child Care are working towards welfare of children who are not taken up by parents
specially by mother who take leave from employability.
Size: To grow child care market as well as increasing their interest from investor and
providers.
Mission: It mission is to develop most successful school for children with day nurses
facilities.
Vision: In order to raise a child with their own responsibilities by supporting their
parents to grow up in attractive manner.
Scope: Its scope is to develop a child for future aspect so that an effective career can be
attain without any difficulties.

TASK 2
P3 Relationship between different organisation function and link with organisational objectives
In today's context a business is done in various was such as public, private and voluntary
association that has its own complexities in performing their business operation as well as
operating day to day activities(Charfeddine, 2016). Moreover, within an organisation
departments are interlinked with each other which faces numerous issues due to various in
performing business activities. Furthermore, complexities depends on various number of
interconnections that are connected with each other. The interrelationship of different type of
organisation function which are linked with organisation objectives and gaols are determined
below:
Marketing department: The marketing department of Mark & Spencer are following a
flat structure in performing their day to day activities. Marketing department are linked with both
finance and human resource department such as with proper allocation of budget and human
resource manpower within an organisation so that marketing can be done in an effectively
manner. Additionally, with such inter connection it will lead to cost effective, faster and
appropriate decision making process as well as allow them to communicate clearly and properly.
Moreover, if there is not proper interaction with other department than work relationship could
struggle and a respective organisation will not able to attain its goals and objectives in effective
manner.
Finance department: Finance department play's an effective role in decision making
process in an appropriate manner. Moreover, finance department is linked with other department
such as human resource department and marketing department in order to attain business goals
and objectives in an effective manner. Additionally, allocation of budget are done by this
department according salary, wages and other activities are performance as per the estimated
budget process. Thus, in this way managers of Mark & Spencer are following a clear chain of
command among all employees, employer and department in performing business function and
activities.
Thus, from above mention point it has been determined that department of an organisation that is
human resource management, finance department and marketing department are playing an
essential role within an work place. They are interlinked with each other so that business goals
and objectives can be achieved in an appropriate manner within stipulated period of time.

TASK 3
P4 Identification of positive and negative impact of macro environment of an organisation
Macro environment consist of external forces or uncontrollable forces that influences an
organisation in taking an effective decision in order to attain sustainability for longer period of
time(HaciogluDincer and Celik, 2012). Moreover, it do have positive and negative impact that
effect strategies, operating business activities, influenced by government rules and regulation and
changes in perception of customer's etc.. Herein, mangers of Mark & Spencer are adopting
PESTLE analysis in order to know positive impact of macro environment upon their business
operation.
Political Factor: Political factor determines the extent in which government policies and
procedures impact on organisation or a specific industry. While operating in different countries
and nation Mark & Spencer has faced many issues and problem in different trade and concerns
such as:
Positive impact: With full support of government Mark & Spencer has developed a
unique and powerful organisation in retail world by creating value and fair means of trade
practice.
Negative impact: Moreover, in some of the operating countries they were affected in
their business performance due to increase in high tax rates that lead Mark & Spencer to increase
their prices. Eventually, they were also abided with certain standards for neglecting safety
regulation after door fall of its employees
Economic Factor: Economic factor are refer to those factor that directly or indirectly impact on
economic performance of an organisation as well as economy. The impact of this factor on Mark
& Spencer are determined below:
Positive impact: With the equilibrium of inflation rate Mark & Spencer are able to
operate with great flexible environment by reducing high operational cost. Thus, in this way they
are able to maximise their profit in competitive marketplace.
Negative impact: Herein, Mark & Spencer were affected by affected by tax rates and
exercise in the countries the were operating their business function and activities. Thus, in this
way they were impacted and lead to increase their price of product in marketplace.

Social Factors: This factors refers to social environment as well as identifying emerging
trends. It help an organisation to understand their customers needs and wants such as cultural
trends, attitude change and change in life style etc. Herein, social factor have been playing an
equivalent role in a respective organisation.
Positive impact: Mark & Spencer has modified themselves as per the need and want of
customer's by featuring its selection in different ranges of clothing for men, women and children.
Moreover, they are maintaining their product as per cultural aspect, age distribution and
emphasis on environment concerns.
Negative impact: Herein, Mark & Spencer has faced many issues such low technology
and not able to meet up requirements, high product price of their offerings. Thus, this lead to
decrease their price in competitive marketplace.
Technological factors: This factor consist of adoption new and advance technologies, innovation
and development that could affect a market or industry(Hussin and et. al., 2017). Some of the
technological factors that affected business operation of Mark & Spencer both in positive and
negative aspect are determined below:
Positive impact: Eventually, with the adoption of modern information system help to
increase productivity and lower cost in an effective manner. Apart from this with online
shopping they have enabled to automated and accelerated purchases in order to reduce supply of
cycle for products sold online.
Negative impact: In today's context people are more attracted towards online and
digitalization world. Herein, mangers of Mark & Spencer need to focus on more advance tools
and techniques. Due to such instance their retailing stores are affected adversely.
Environmental factors: Environmental factor relate to influence surrounding environment and
its impact of ecological aspect. Such as climate, recycling procedures, carbon footprint, waste
disposable and sustainability. This factors have created an huge impact on business operation
such as:
Positive impact: Mark & Spencer are producing their product with eco friendly material
so that it do not effect on environment as well as human being. Moreover, they are using
shopping bags which is easily disposable that dose not create any kind of harm within an
environment.

Negative impact: With the adoption of plastic bag they were impacted badly in
environmental context as its was not able to disposed off easily. Moreover, it this process
occurred huge amount of investment too.
Legal Factor:Legal factor usually includes health and safety, equally opportunities, employment
laws product labelling and product safety. Herein, mangers of Mark & Spencer are maintaining
this legal factor but it do have impact on operating day do day business function and activities
such as:
Positive impact: Herein, Mark & Spencer are maintaining their health and safety of their
employees with adoption of various policies for them. Moreover, they are allowing customer to
experience home delivery option or in store experience.
Negative impact: With high legal norms and regulation such as labour and employment
laws they were highly impacted in competitive marketplace which lead to reduce employees
strength with in an organisation.
TASK 4
P5 Evaluating internal and external analysis of an organisation
In order to analysis internal and external analysis of an organisation, SWOT tool is
adopted to know strength, weakness, opportunities and threats so that they can improve their
strategics in effective manner.
Strength: Strength are defined what an organisation have that separates it from
competition such as by having strong brands, loyal customer base and unique identity in
marketplace (Otoo and Drechsel, 2018). Mark & Spencer has many strength and they are
focusing more on brand value of organisation with wide range of product and different outlets
which help to grow business in an effective manner. Hence, they are famous for popular
designer brands and premium quality of product and services.
Weaknesses: Weakness are refer to those are where an organisation need to improve
their performance at its optimum level in order to remain competitive in marketplace. Mark &
Spencer has often exhibited low satisfaction level of customer in respect to return policy as well
in store experience. Moreover, they were not utilising technologies for effective use this lead to
increase manual work and reduce the work efficiency adversely in competitive marketplace.

Opportunities:This factor is referred to favourable external forces that help an
organisation to attain more opportunities in competitive marketplace. Herein, Mark & Spencer
can enter into new segmentation with innovation in fashionable clothes. As there is huge demand
for ethnic and traditional wear in which they are unable to capitalises on it in an attractive
manner.
Threats: Threats are those factors in which an environment which can be detrimental in
growth of business. Herein, threats of Mark & Spencer are high competition of same product line
in competitive marketplace. For such instance, management need to come up with such obstacles
with different strategies in order to sustain in competitive marketplace for longer duration of
time.
From the above discussion it has been concluded that Mark & Spencer have a strong
good brand in competitive marketplace. Apart from their they have several opportunities to grab
up market with ethnic and traditional wear. Thus, in this way they are creating a unique place in
same product line in effective manner.
P6Examining how strength and weaknesses interrelated with external macro factors
Political factor: Political factor refers to those factor which consist of government policies and
procedures, norms and regulation that impact on organisation effectively.
Strength: Government have supported Mark & Spencer to develop their business in an
attractive manner so that they can earn profit as well as creating value of trade that is beneficial
for both organisation and economy.
Weaknesses: Moreover, in some of the operating countries they were affected in their
business performance due to increase in high tax rates, inflation rate and different norms and
regulation.
Economic factor: Economic factors are those factor that impact an organisation as well as
economy such as with high inflation rate, tax rate and trade tariffs etc.
Strength: In order to maintain economic stability they are offering premium quality of
product and services to its potential customer's for such purpose they need do complete analysis
so they can attain sustainability.
Weaknesses: Due to high competition in same product line lead to decrease in customer
that adversely impacted on organisation productivity and profitability in marketplace.

Social factor: This factor is related to social environment such as understanding needs of wants
of trends, change in attitude and change in life.
Strength: Herein they are maintaining their product in different and wide ranges in men.
Women and children as per need and preference. Moreover maintaining cultural and ethical
aspect within their offerings
Weaknesses: Due to high competitive it has faced may issues regarding price of their
offerings which lead to decrease their price in competitive marketplace
Technological factor: This factor is related to adoption of new and advance technologies
within innovation in competitive marketplace.
Strength: Moreover by adopting advance tools and techniques they are able to meet up
customer's requirement in an effective manner as well as able to maintain their reputation in
marketplace.
Weaknesses: Herein, mangers of Mark & Spencer need to focus on more advance tools
and techniques so that their retailing stores are affected adversely.
CONCLUSION
From the above discussion concluded that business environment play's a dynamic in
nature as it help an organisation to its internal and external factors that effects an organisation
productivity. Moreover, in every organisation there are several function which are interconnected
with each other in performing task and activities. It is also important to know size and scope of
an organisation and its legal structure in competitive market place where they are operating to
attain competitive edge. Furthermore, analysing positive and negative impact on amrco
environment know an organisation competitiveness in their operating function and day to day
activities.

REFERENCES
Books & Journals
Anıl, A. R. and Ficici, A., 2017. The Emerging Market Manufacturing Business Groups
(EMBGs) and the Interplay between Innovation in Environmental Sustainability,
Digitalization, Internationalization and Corporate Governance Structures: The Case of
Turkish Holding Companies. Turkish Economic Review. 4(1). pp.55-65.
Burayidi, M. A., 2013. Downtowns: Revitalizing the centers of small urban communities.
Routledge.
Charfeddine, O. B., 2016. Business environment-aware management of service-based business
processes (Doctoral dissertation, Université Paris-Saclay).
Hacioglu, U., Dincer, H. and Celik, I. E., 2012. Economic approach to conflict issue: Investment
in post-conflict situation for international business. International Journal of Business
Administration. 3(5). p.1.
Hussin, N., and et. al., 2017. Strategic Information Use (SIU) for Strategy Formulation in
Malaysia Business Organizations. Journal of Informatics and Mathematical Sciences.
9(4).
Otoo, M. and Drechsel, P., 2018. Resource Recovery from Waste: Business Models for Energy,
Nutrient and Water Reuse in Low-and Middle-income Countries. Routledge.
Sood, A. and Sukthankar, V. K., International Business Machines Corp, 2013. Real-time license
metering of a provisioned application in a cloud computing environement. U.S. Patent
8,589,312.

Toedt, M. ed., 2014. Data Revolution: How Big Data Will Change the Way of Doing Business?.
Epubli.
Vasilcovschi, N. and Georgescu, S., 2012. TRANSFORMATIONAL LEADERSHIP AND THE
ECONOMIC COMPETITIVENESS IN SHIPPING INDUSTRY TODAY. Analele
Universitatii Maritime Constanta. 13(17).
Warkentin, M., Sugumaran, V. and Sainsbury, R., 2012. The role of intelligent agents and data
mining in electronic partnership management. Expert Systems with Applications. 39(18).
pp.13277-13288.