Business and Business Environment - M&S Assignment

Business and Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Types of Organization and its legal structure........................................................................3
P2 Size, scope of different kinds of organization......................................................................4
P3 The relationship between different organisational functions and their link with
organisational objectives and structure.......................................................................................6
P4 PESTLE analysis that helps to understand macro environment factors................................7
P5 Internal and external analysis of organisation to identify their strength and weakness.........9
P6 Strength and Weakness inter-connected with external macro factors.................................11
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Business is refer to a function that is done by a single or a group of individuals so as to
earning money or living their life without any difficulty. Whereas, combination of internal and
external factors that affects the whole profitability and performance of organisation termed as
business environment. Chosen organisation for this report is M&S that is a multinational fashion
and clothing products retailer along with headquarters are located in London, UK. This
assignment will discuss about the different type, size and scope of organisations along with
interrelationship between different departments and how they supports the organisation in
achieving organisational objectives (Al-Araki, M., 2013).. In addition, for determining Positive
and negative influence on business operations PESTLE analysis will be conducted in this report.
For determining strength and weaknesses SWOT analysis will also prepared in this assignment.
TASK 1
P1 Types of Organization and its legal structure
Various organisations are exist in marketplace i.e. public, voluntary or private whose
purposes and goals are varies due to their size, scope or legal structure. Some organisations
mainly performs their functions so as to earning money whereas, some other operates their works
in order to fulfilling requirements of customers. Purposes of different organisations along with
legal structures are given as below:
Public Organisation (BBC)
Public are those organisations that are solely owned by government and have authority of
trading their shares freely in Public. Purpose of these organisation is to satisfying the needs of
customers instead of making profits. Taken firm for this type is British Broadcasting corporation
which is a public service broadcaster along with headquarters are situated in Westminster,
London (Abraham, S., 2013). Purpose of BBC is to providing impartial news and information to
citizens of UK along with regions so as to developing the economy of UK throughout the world.
As BBC is a public organisation then they have to follow legal structure which is applicable on
Public firms. Legal structure of BBC is given as below:
Legal structure
 Local government – It is also called local authority who have right to maintain
broadcasting services within a particular boundaries such as district or town.

 State government – This is a governance structure that is basically designed for
managing broadcasting services in a specific area of state.
 National government – In it, legal formalities and policies are made by directors so as to
maintaining code of conduct in broadcasting services across the nation.
Private Organisation (Marks & Spencer)
These firms are owned or controlled by private owners who have no right to sell their
shares directly to public. Purpose of these kind of associations are to making profits through
satisfying the demand of customers. M&S is the taken organisation for this kind whose purpose
is to take competitive edge through fulfilling the luxury requirements of customers.
Legal structure
 Sole proprietorship – This is an easiest structure in which an individual is the sole
person who have right to make decisions for the profitability and sustainability of
organisation. Along with it, a few investment is required in order to establishing firm in
this kind of structure.
 Partnership – Generally, for establishing organisation in this kind of structure two or
more individuals are required who are mutually consent with each other so as to facing
loss or earning profits.
Voluntary (World Vision International)
These organisations are specially formed for removing inequalities from society along
with their main purpose is to improve standard of living of those individuals who are unable to
arrange needy things which are important for living life without difficulties (Al-Araki, M.,
2013). Taken organisation for this kind is World Vision International whose main purpose is to
remove poverty from the UK nation. Legal structure of voluntary firms are given as below:
 Trust - These structures are generally establish for managing money or property for a
certain purpose. Three parties are generally included in this structure i.e. trustees,
beneficiaries and donors.
 Association: In it, a group of individuals comes and performs duties so as to achieving
predetermined goals without making any profits from activities.
P2 Size, scope of different kinds of organization
Private (M&S)

 Background Details – Marks and Spencer was founded in 1884 at Leeds, UK but now
its headquarters are located in London, United Kingdom.
 Size & Scope – Around 80000 employees are working within its 1463 locations that are
spread in various nations i.e. India, China etc. Revenue of organisation in financial year
2018-19 was 10377 £ which defines bright size and scope of organisation throughout the
world (Chokheli, E., 2014).
 Mission and Vision- Mission of M&S is to build good market presence along with
satisfying the needs of customers. Whereas, vision is related with providing high quality
products and services so that competitiveness can be gained in market.
 Business Objectives – Objective of Marks and Spencer is to build strong portfolio of
offerings and gain leadership in retail sector throughout the world.
 Products and Services – Organisation offers clothing home and food products to their
customers.
 Organisational structure – Company follows flatter structure in their workplace so as to
managing each functions effectively.
 Legal structure – Organisation performs its duties in private sector due to which legal
structure is followed by company that is applicable on private firms.
 Stakeholders – Employees, Investors, Board of Directors are main stakeholders of M&S.
Public (BBC)
 Background Details – Organisation was founded in 1922 by John Reith that's head-
office is located in Westminster, London.
 Size & Scope – There are 20000 employees are working with the organisation and
providing their services across the world. Revenue of firm in 2018 was 4 billion pound
that depicts huge size and scope of company in broadcasting services (Cotter and
Fritzsche, 2014).
 Mission and Vision – BBC's mission is to increasing understanding of individuals
regarding the programmes that are provided by them whereas, vision is to become most
creative broadcaster throughout the world.
 Business Objectives – To gain leadership among the competitors through implementing
innovative and creative techniques in the working.

 Products and Services - Broadcasting, Television programmes, Radio are comes under
the offering of BBC.
 Organisational structure – Head office of BBC uses line organisational structure that
enables employees for making quick decisions (Demir, Esbah and AKGÜN, A.A 2016).
 Legal structure – Company follows the legal structure which is applicable on public
organisations of UK.
 Stakeholders – Employees, viewers, government authorities are the main stakeholders of
BBC.
Voluntary ( World Vision International)
 Background Details – Company was founded in 1950 with an purpose of removing
inequalities and poorness from the nation.
 Size & Scope – Approx. 22000 volunteers are working in nearby 100 nations that defines
dynamic size and scope of organisation.
 Mission and Vision – Mission of organisation is to remove inequalities from the societal
individuals. Whereas, vision is to remove poverty from world as well as societies.
 Business Objectives – To raise standard of societal individuals through providing them
education, basic rights etc.
 Products and Services – Organising Blood donation camps, raising funds so as to
fulfilling basic needs of poor individuals of society.
 Organisational structure - Divisional structure is followed by the firm so as to
managing vast functions and services (Duarte and Cruz-Machado, 2013).
 Legal structure – Company is doing functions for removing inequalities and poverty
from the nation so the legal structure of trust is applicable on it.
 Stakeholders – Investors, Donors or Volunteers are the main stakeholder of organisation.
P3 The relationship between different organisational functions and their link with organisational
objectives and structure.
Every kind of organisation comprises of various departments which are interconnected
and interlinked with each other. These departments directly and indirectly help in achievement of
goals and objectives. If every department functions in a coordinated manner than organisational
structure and objectives will not be negatively affected. If there is mismanagement among the

departments of Marks and Spencer than better competition can be given to other employees.
Inter- relation of various departments of Marks and Spencer is discussed below-
Marketing with Human Resource- The work of marketing department is to form and
implement strategies for promoting and attracting large number of customers. While on the other
hand role of HR department is to hire and recruit skilled employees, so that they can help
marketing department in attracting large number of customers (Everett, R.F., 2014). With the
help of marketing and human resource department sale of Burberry can be increased. This is
because employees with proper skills will be able to implement new ideas and strategies for
increasing the market share of M&S.
Marketing and Finance department- The work of finance department is to gather and
collect appropriate amount of fund so that plans for the marketing department can be
implemented in the appropriate manner. If the finance department of M&S is able to provide
proper fund to marketing department than new techniques can be used to attract more and more
customers.
Marketing department with IT department- With the help of IT department marketing
department of M&S will be able to make best use of available technology. IT department of
Marks and Spencer will also guide the marketing department in attracting and retaining large
number of customers. With the help of both the department better competition can also be given
by the organisation.
If every department in the organisation is able to work in a coordinated manner than long and
short term objectives of Marks and Spencer will be achieved in the limited period of time
(Hamilton and Webster, 2018). Major changes in the organisational structure can also be done
with the help of these departments. This is because such departments will guide in implementing
new changes in a proper and adequate manner.
P4 PESTLE analysis that helps to understand macro environment factors
It is essential for every organisation to measure and evaluate the surrounding
environment so they sustain in market for longer time period. Some factors with positive and
negative of PESTLE in private sector is given below:
Political factors- It includes all the policy and regulations that are generated by
government. In internal environment this includes rules related with staff, wages, technology etc.
External environment includes policy relates with customer, agent etc. For M&S it is positive

factor as they operate business in developed countries. While in Asia or developing country
unstable government create problems for organisation (Hillary, and et. al., 2017).
Economical factor- It determinants the performance of organisation that is directly
impact on organisation financial factors. Customer purchasing power is depend on economy of
country. M&S explore countries in which there is high inflation rates are present it create
positive aspect for company. While if there are interest and tax rate is high then it reduce sale
which is a negative aspect.
Social factor- It include factors such as attitude, behaviour, belief of society. In these
age , gender, culture are considered. M&S creates positive impact through performing activities
as per society culture. Moreover negative results is that if individual feelings is impacted then it
organisation has to face conflicts in country.
Technology factor-In present scenario there is constant evolution in technology such as
automation that help to create unique product from competitors. This create positive impact as it
helps to make products quickly. While negative impact is that M&S need to invest more money
to improve their technology.
Legal factor- M&S has to deal with legal issue of all countries in which they are
operating their business. It positively impacts as M&S increases their strength through following
all laws of country (Hockerts, 2015). While negative results is that it is hard to follow all
legislation that are formulated by government.
Environmental factors- M&S is concerned about environment so they organise different
CSR practice that helps to increase their goodwill which impact positively on its operations.
While in negatively that if they produce goods that harm the environment then consumer boycott
their products.
PESTLE analysis of pubic sector industry
Political factor- It includes all the decision that are made by government as they impact on
operations of BBC. This create positive results on business operation through formulating simple
framework. In context of negative impacts the data is required by organisation to make effective
framework which is hardly present in public companies.
Economical factor- This includes all significant aspects in which through organisational
profits are impacted such as interest and inflation rate, tax rate etc. Like management of BBC

understand monetary policy of country to gain positive results. While in negative situation it is
essential that organisation monitors regular policy of government (Jaber, J.O., and et. al., 2015).
Social factor- BBC need to manage and organise their operation within framework that is
developed by society it includes belief, value, attitude that is shared by large number of
population. This help to generate positive results through formulating strategical thinking tha
helps to make effective decisions. Negative impact on operation is that it is hard to satisfy the
needs of all customers with single product.
Technological factor- It includes the new ways and methods for developing good and
services. Along with these it includes the ways through which organisation target their customer
with new techniques. It is effective for BBC and helps them to increase strength of their
operations through making their products in effective and efficient manner. While similar
negative impact it is time consuming to measure which is best technology for organisation.
Legal factor- In context of public sector industry it includes health and safety, equal
opportunities, consumer rights and laws etc. BBC predict opportunity through which they modify
their strategy in order to attain goals. Moreover in negative context it includes long terms of
policy, legislation etc. if organisation follows them them then it is difficult for them to make
their earn profits.
Environmental factor- Environment issues are generated in each country in the recent
years. In present scenario it is more important for organisation due to lack of natural resources
and scarcity of raw materials. It brings positive results for BBC as they take first mover
advantage to cover more market (Menet, 2016). While dynamic and constant changes creates
difficulty and reduce efficiency of organisation due to which negative impacts are generated in
its activities.
P5 Internal and external analysis of organisation to identify their strength and weakness
SWOT analysis of BBC
Strength
 BBC has strength of their location they
are present among overall world. It
helps them to cover large market area.
Weakness
 The management of organisation is
expanding their business due to which
there is low profits are earned by

 The management of BBC is strong that
helps to manage their operations
frequently.
organisation.
 In context of BBC there is inefficiency
in its research and development team
due to which decision are not effective.
Opportunities
 BBC is supported by government due
to which they accomplish their goals
with in minimum time period. Company has opportunity to increase
its business in rural areas also. This
generates to expand their market.
Weakness
 In present scenario all industry of
market is facing cut throat competition
in market. This creates issue in market
to focus on company.
 Broadcasting services provide external
data through which is a time consuming
and costly process.
SWOT analysis of private sector
This table cover the SWOT of Marks & Spencer.
Strength
 M&S is dominant player in retail
industry as they experience of more
than century of industry. They has strong presence in market
through formulating effective supply
chain offline and online.
Threats
 Overall sale of M&S is rely on UK
market which govern that if there is any
change in market. M&S has to bear
huge loss.
 In recent years organisation make
recalls of their product frequently
which create dis-trust among
customers.
Opportunities
 M&S has opportunity to expand their
business in developing countries. Company increases their sell of clothes
through bringing some modification in
them. Like street style provide large
Threats
 The incident of Brexit creates too many
problems for M&S as they has to
formulate new policy.
 M&S has strong presence in food
sector but in present there is stuffed

market to cover. competition is present in industry.
P6 Strength and Weakness inter-connected with external macro factors
This task is essential for M&S as it helps to increase their strength that help to capture
more opportunities. Along with this to fill gap in which the loop holes are present in
organisation.
Political factor- M&S follow government policy that help them to sustain market for
longer period. It increases the strength through adopting changes necessary changes. Like social
strategy is effective tool for organisation (Orr, 2013).
Economical factor- Low inflation and interest rate create barrier in performing the
activities of organisation. Like in developing countries consumer has low purchasing power
which reduce sale of its products which govern that it is a weak factor in organisation.
Technological factor- In current retail industry technology factor is changing the
business dynamically which governs that it is crucial factor for organisation. Like adoption of
new technology help M&S to gain competitive edge through generating taking first mover
advantage.
Social factor- It is discover as key essential factor which directly or indirectly affect on
business products and services. In context of M&S they increases their strength through
manufacturing their products as per needs of society. This increases the sale of company
products.
Environmental factor- The major impact on organisation is due to its surroundings.
Management of M&S faces some challenges in recent years that create weak-point in
organisation (vom Brocke, Zelt and Schmiedel, 2016). So to overcome from them they execute
different CSR practice that increases goodwill for organisation.
Legal factor- The proper follow up of organisational activities are essential for each
industry to follow laws, legislation, policy and procedures that are formulate by government.
Like M&S is expanding their business through implementing proper legislation due to which
their value in also increased in society.

CONCLUSION
From the above given report it has been concluded that there are various kinds of
organisations which contribute in the growth and success of economy. The motive of public,
private, and voluntarily organisations is very much different from each other. These
organisations also have different size and scopes. The macro environment of every organisation
has positive and negative impact on the functions. Analysis of this environment can be done by
using PESTEL and SWOT analysis in a systematic manner. By using SWOT analysis strength
and weakness of the organisation can be known easily. Major changes in the working structure
can also be done to achieve the goals and objectives in the best possible manner.

REFERENCES
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