This study material provides an overview of different types, scope and size of organisations. It also discusses the positive and negative impact of the macro environment on businesses.
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Table of Contents Introduction...............................................................................................................................................3 LO1.............................................................................................................................................................3 Different types, scope and size of organisation........................................................................................3 Size and scope of organizations...............................................................................................................5 LO2.............................................................................................................................................................7 Functions within the organisation............................................................................................................7 LO3.............................................................................................................................................................8 Positive and negative influence/impact the macro environment..............................................................8 LO4.............................................................................................................................................................9 Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses..............................................................................................................................................9 How strengths and weaknesses interrelate with external macro factors.................................................11 Reference..................................................................................................................................................13
Introduction Business and business environment consist of internal and external factors that have huge impact on the companies functions, strategies, customers and their supply and demand etc. this factor can have both negative and positive impact on the business so it is necessary for the leaders and managers to be aware of those factors to identify opportunities and overcome from the negative growth. This report will cover case three of Mark's & Spencer Which is British multinational retailer company. they are selling product such as Home appliances, clothing products and food products. LO1 Different types, scope and size of organisation There are two profit and non profit organisation that have their own rules and regulation and way of doing their work. profit organisations our organisation that make product and services according to the needs and demands of the people within the society (Bhatia., 2017). they sell those products to the customers in the exchange of money and that is their profits. the main aim of the profitable organisation to earn profits by selling their goods and services. Mark's & Spencer Is profit making organisation who are selling their product to to grow their business and earn probability On the other side nongovernmental organisations are those organisation who do not work to earn probability. Their main goals and objectives are to provide support and help to the society. There are many NGOs within the United Kingdom that are helping people through the charity. Save the Children which is also in non profitable organisation who run the programmes to save children in all over the world. Micro, small, medium enterprises Micro enterprises Micro enterprises are the businesses that employ less than 10 people within their business. It is started by the local entrepreneurs an investment plan for this business are very low. The main purpose off micro businesses is to unlimited probability and provide benefit to the
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local people. They buy finished products from the retail distribution and sale on their own shop. Micro enterprises also have huge contribution in local economy of the country. Small enterprise Small businesses are privately owned corporations, soul partnerships are the normal partnership that have fewer employees around 0-50. small businesses always come up with the new ideas of product and innovation that helped them too satisfy the needs anyone of the customers and they can grow highly. They distribute their product and services in the local areas when their business grow rapidly then slowly they expand their businesses on the other cities. Medium Medium sized enterprises can have up to 250 employees and then turnover is also more than all of the other businesses. they operate their business on the state level and help local economy to grow. they can also be a manufacturer Of the local products and supply directly to the distributors. The range of legal structure associate with different from our business Sole traders Soul traders are the individual person who employed themselves and ownPersonal business. They put their own capital within the business and take Benefit of the profits individually. Partnership A partnership is a formal agreement between the two or more than two parties to manage and operate the business where they share the profit equally and liability as well (Radojevic And et.al., 2018). There are several type of like general partnership, limited partnership, limited liability partnership, limited liability limited partnership. Private limited company Private limited companies are the type of company that held small businesses. This type of businesses entity limited owner liability to their shares, limited the number of employees and shareholders and restrict shareholders from the publicly trading shares.
Size and scope of organizations SmallMediumLarge Goals and objectives Start their own business, help local community Achieve long term goals, come up with a new product and increase sales expand business both national and international, maximise the profits and growth Market sharesLow market shares Media market share high market share Profit sharesIndividuallyOwner and investors Owner, shareholders and investors Growth and sustainability LowmediumHigh Global growth and development of , transitional, international and global organisation Transitional companies The transitional companies are more much and more complex organisations who having invested in the operations in the foreign operations and they have a central corporate facility but give decision-making marketing power to each individual foreign market. International International companies are the businesses that have no investment outside of the country they only sell their product and services within the countries boundary and unprofitability (Correa., 2016). Global organisation
Global organisations are the companies who have presence in many countries. They have a good market image that allowed them to sell their products in various countries, generally 1 corporate office that is responsible for the global strategy. Mark's & Spencer is an global organisation who are selling their products in various countries. Industrial structure and competitive analysis A country’s industrial structure is the percentage of people who are working in each job type changing the balance between those four sectors of the industry can help a country to develop. This structure include sectors such as primary, secondary, territory, quaternary (Ghosh, Baig and Goyal., 2020). Mark's & Spencer Is operating their business within retail industry which is a part of primary structure. A competitive analysis is this strategy that identify the major competitors and research of product sales and marketing. Mark's & Spencer can use comparative analysis such as Porter’s 5 and Pestel analysis rotate competitive advantages. Different building franchising joint venture and licencing Franchising franchising is the form of distribution and marketing in which the owner of the business grant to an individual or group of individuals the right to run a business. Mark's & Spencer Also franchise their businesses to expand their business. Joint venture Joint venture is the method where two companies collaborate with each other and make a common business. it is helpful and useful strategy for the global entry. Mike and Spencer can also use this strategy to take competitive advantages. Licencing Licencing is useful to expand business on the international level (Elia, Massini, and Narula., 2019). Adding necessary for the companies to have a licence to run their operations on the international level. Market focus on economic operations Supply and demand
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Mark's & Spencer have well established logistic supply to all over the world. they are operating their business in various countries where they easily reach to the people and their product and service are available on their stores. LO2 Functions within the organisation functions and their interrelationship Marketing Marketing is one of the most important function that help customers to aware about product and services sale by Mark's & Spencer. They are also interlinked with other functions because they provide all the information related to the market (Painter And et.al., 2019). For example – Information collected by the marketing team of the company is given to the operational team where they interpret the information And develop product and services accordingly. Finance Finance as most important part of the organisation that helps to run each and every function and Department. Finance manager is responsible to ensure the proper use of finds to get the maximum performance. Human resource It is another most important part of the Mark's & Spencer that is responsible to bring skilful employees. This Department provide skilful employees to each and every Department. Operational Department Operational Department ensure that the production process is completed from start to finish. This production process needs to be line up with the other functions and goals of other Department within the Mark's & Spencer. This is how they contribute with each other and help to gain competitive advantages to the company and they are able to show their presence as a leading brand. Relation with mission and objectives
All the functions within the workplace of Mark's & Spencer are very useful to achieve goals and objective the company and they run according to Lee companies mission. marketing function identify the customers and collect information that is useful in product selling and developing (Cui., 2017). Finance Department ensure the cash flow and arrange the funds for the company to run there other business functions. human resource management Provide training and development to make companies employ strong and skilful. Operational Department that is responsible to create a final product. contribution of all this product make company successful and help them to achieve their mission an objectives. LO3 Positive and negative influence/impact the macro environment In order to identify positive and negative influence of macro environment Pestle Analysis can be applied. Following is Pestle analysis of M&S- Political-This environment consist of political elements and their impact on M&S. Political relations between countries and political stability of the country in which M&S operates play a very important role in success of M&S (Shtal and et.al., 2018). This has been negatively influenced by Brexit. Because relation of UK with EU countries have been negatively affected. This also involves policies of different government for international organisations and markets and protectionist policies of government have a negative impact on M&S operations. However government with liberal policies is a positive impact as it is easy to operate with such policies. Economical-This is another important environment in macro environment of M&S. Economic elements involve cost, price, interest and mainly factors affecting economic policies of M&S. Digitalisation and technology has had positive impact on production as consumption, because for business as well as for customers it has become very easy to connect with each other. However, increasing cost of operation is a negative influence on M&S. But emerging BRICs markets are also an opportunity and positive influence on M&S. Social-Social environmentconsists of factors that are related to customers of the company. With help of technology it has become easy for M&S to reach to potential markets with less effort however, changing social power and customer tastes have significant impact on M&S (Rastogi
and Trivedi, 2016). This is both positive as well as negative, because it depends on the ability of organisation to cope with changes. Technological-Technological environment has become very important and centre of success of the organisation. This involves impact of social technology and this has made very positive influence on M&S, by opening several opportunities. Digital revolution also has made positive impact on production and consumption and has made positive impact on the growth of organisations. Legal-This is another environment and this environment consists of different regulations and laws that govern and regulate companies and their functioning. Along with general laws and regulations affecting every organisation, it involves laws and regulations of cyber security, data protection laws that influence M&S. This is because M&S also operates on online platforms and this is why collect significant data of customers and regarding identity as well as regarding their financial data and this is why it is important for M&S to ensure security of data and information. Other than this, social technologies and their application also requires following these regulations in order to collect data of customers and rightly target market. Environmental-Increasing social consciousness has significant impact on organisations and their practices. Organisations now are requiring following environment regulations in order to ensure that they can attract customers (Vallati and Grassi, 2019). Organisations are increasingly focusing on ethical and sustainable growth and this has both positive and negative impacts on organisation. This means that in long term they can provide benefit to organisations, but adherence to ethical and sustainable practices might increase cost and affect productivity of M&S. LO4 Conduct internal and external analysis of specific organisations in order to identify strengths and weaknesses. Swot Analysis Strengths: They provide excellent and high- quality products and services. they have large market share in retail sector of UK (Pratomo, 2019). They focus strongly upon enhance customer experience by providing large variety of products with high quality in lower price. They have
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approximately 1500 stores present globally. Provision of wide variety of products directly help their customers to get huge variety of products to choose from. Weaknesses: They are too much dependent upon market of UK due to which they become vulnerable to UK market. They have a negative brand reputation of a company that product products for old age people. Due to this, it has developed bad publicity of a non-trendy store. They rely more on manual working rather than focusing upon adopting advance technology as a result their overall operational cost increase. Opportunities: focusing upon expanding their online business can directly help them in increasing their sales and profitability globally. Focusing upon developing their clothing market according to different age group of their customers is another opportunity to expand their market and profitability and attract a greater number of customers. It can also be said that by reshaping their clothing segment can help them in gaining competitive advantage. They can also focus upon adopting new and advance technology for reducing their operational cost and enhancing their overall productivity (Pratomo, 2019). So, it can be said that internationalization can help them in increasing their global presence will help them to attract more number of customers, enhance their sales, revenue which will eventually help them in enhancing their success changes. Threats: Increasing competition in this retain sector in one of the major threats for marks and Spencer. Main competitors of marks and Spencerare: Tesco, Sainsbury, Zara, Gap and many more. Relying more upon market of UK is one of the main threats because impact of economy of UK can directly impact overall profitability of M&S. Strategies that can be used for Growth OpportunitiesThreats StrengthsStrengthen their online presence by strengthening their e-commerce business will directly help them in attracting a greater number of customers and enhance profitability. By focusing upon expanding their business in developing countries will help them to reduce their dependency upon UK market and will further help the organization to expand internationally. WeaknessIntroducing new categories of clothing products will directly By focusing upon reducing their dependency upon UK
help them in attracting a greater number of customers and will further help them in changing their brand image of a non-trendy store to a brand for all age group people. market and introducing new clothing categories for young people will help them in gaining competitive advantage and reduce threat from competitors. SWOT and TWOS matrix can directly help Marks and Spencer to identify their man strengths and weakness and develop strategies for the same. How strengths and weaknesses interrelate with external macro factors Strengths are weaknesses are internal to M&S and have significant impact on decision- making of the organisation. This mainly influence decision-making when determining what opportunities are there that M&S can utilise and what threats are there in external environment that M&S should be aware of and make strategies to avoid and reduce its impact on organisation and its operations. As external environment outlines that M&S has opportunity for expansion in forms of BRICs company can utilise its existing image for the purpose of expansion in these countries (Aslam, Rehman and Asad, 2020). Other than this, M&S also have other strengths that company can utilise in order to expand its business in other countries and this mainly based on decision-making of the company which strategy and strength they will utilise in order to expand its businesses. Further, social environment also have an element that is concerned with rapidly changing customer taste and preferences and buying behaviour of the company. Concerned with this, company requires to take decision so that this can become an opportunity rather than threat for M&S. This means that M&S has strength in form of wide range of product availability and also in form of enhancing customer experience and this strength can help in dealing with rapidly changing customer behaviour. In order to increase and expand business, e-commerce is also an opportunity and company requires determining what method they can select for the purpose of expansion. As M&S is highly dependent on UK market BRICs is an opportunity for the company to reduce their dependency on UK market. This means that emerging countries have significant opportunity for M&S for the purpose of business as well as for the purpose of manufacturing products of M&S.
However, using the capacity M&S can develop new products in order to reduce and remove their image as products for the old age. It is mainly dependent on decisions of the company as how they will change their image in order to make it positive and attract customers with brand image. This means whether they want to create an image of premium products of high quality or average price products with high quality. This all mainly depends on decisions of M&S and what kind of opportunity they identify in their external environment in social factor of the environment. Competition is increasing in retail sector and in such situation it is important that M&S has strong competitive advantage which is possible by changing its clothing portfolio and attracting new age customers and millennial customers (Matsuo, 2020). By adding this on their online services can give significant advantage to M&S because millennial customers are increasing getting more engaged on online platforms rather than shopping at stores. Another opportunity that is in there for M&S is using technology and as retail organisations are focusing on improving and enhancing quality of in-store experience of customers. M&S can also utilise this opportunity and enhance its performance. This means that in order to utilise opportunity and reduce impact of threats it is important that right strengths are used by the organisation. Conclusion As per the report has been covered case study of Mark's & Spencer. it has been explained types of organisation including their size and scope. this report has been explain the various function within the organisation and there role enter relationship. This report also has been concluded internal and external factors that have huge impact on the probability and strategy of Mark's & Spencer. It has been discussed how this factors affect both positively and negatively. in the end of this report has been determine the internal strength and weakness of this specific business and explain their interrelationship between external micro factors
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Reference Books and journals Bhatia, S., 2017.Correlation of Salaries in Research Administration Field With Geographic Location, Size of Institution, Scope of Research, Volume of Research Expenditures, Sub- type of Research Administration, Advancement of Information Technology and Additional Training(Doctoral dissertation, Johns Hopkins University). Radojevic, T. And et.al., 2018. The effects of traveling for business on customer satisfaction with hotel services.Tourism Management.67. .326-341. Correa, C., 2016. Scope of the proposed international legally binding instrument on transnational corporations and other business enterprises with respect to human rights.Policy Brief. (28). Ghosh, P. K., Baig, N. and Goyal, R.N., 2020. Unit-1 Nature and Scope of Business. IGNOU. Elia, S., Massini, S. and Narula, R., 2019. Disintegration, modularity and entry mode choice: Mirroring technical and organizational architectures in business functions offshoring.Journal of Business Research. 103. pp.417-431. Painter, M. And et.al., 2019. Sharing vocabularies: Towards horizontal alignment of values- driven business functions.Journal of Business Ethics.155(4). pp.965-979. Cui, L., 2017. Fuzzy approach to eco-innovation for enhancing business functions: A case study in China.Industrial Management & Data Systems.
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