Business and Business Environment

This report covers different types, purpose and legal structure of public, private and volunteering organisations, size and scope of different companies, relationship between different organisational functions and the ways that they link to organisational objectives and structures, positive and negative macro environment upon business, micro and macro environment of specific organisation to identify their strengths and weaknesses, relation of strengths and weaknesses with external macro factors.

Business and Business
Environment

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Task 1...............................................................................................................................................3
P1 Different types, purpose and legal structure of Public, Private and Volunteering
organisation.................................................................................................................................3
P2 The size and scope of a range of different types of organisations.........................................5
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation................................................7
P3 Explain the relationship between organisational functions and how they link to
organisational objectives and structure.......................................................................................7
M2 State the advantages and disadvantages of interrelationship between organisational
functions and their impact upon organisational structure...........................................................8
D1 Provide a critical analysis of the complexities of different types of business structures and
the interrelationships of the different organisational functions...................................................8
Part 2................................................................................................................................................9
P4/ M3 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples................................................................................9
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses..........................................................................................................11
P6 Explain how strengths and weaknesses interrelate with external macro factors.................12
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision-
making.......................................................................................................................................13
D2 Critically evaluate the impacts that both macro and micro factors have upon business
objectives and decision-making................................................................................................13
Conclusion.....................................................................................................................................14
REFERNCES:................................................................................................................................15
Books and Journals:..................................................................................................................15

Introduction
Business environment consist of all those factors which impacted upon a company. There
are two types of business environment internal and external business environment (Contractor,
and et. al., 2020). Internal business environment consist of relationship of employees and
management teams, rules and policies of organisation, organisational structure and many others.
On the other hand, external business environment consist of political factor, technological
factors, social factors and many others. Mark and Spenser Group Plc is an famous multinational
retailer in UK which is founded in the year 1884 by its founders Michael Marks and Thomas
Spenser. It is headquartered in London, UK. New Look is an private retailing company which is
founded by Tom Singh in the year 1969. It has approximately 570 stores. Oxfam is an
volunteering company which was founded in the year 1942 which is headquartered in Nairobi,
Kenya. They work for alleviation of global poverty. The following report covers different types,
purpose and legal structure of above three mentioned companies, size and scope of different
companies, relationship between different organisational functions and the ways that they link to
organisational objectives and structures, positive and negative macro environment upon business,
micro and macro environment of specific organisation to identify their strengths and weaknesses,
relation of strengths and weaknesses with external macro factors.
Main Body
Task 1
P1 Different types, purpose and legal structure of Public, Private and Volunteering organisation
There are different types of business whose main aim is to earn profit and achieve
success in their industry (Cepel, 2019). Every business has some different purpose, types and
legal structure which are mentioned below-
Public Organisation- These are those organisations which are under control of
government and government has full right to take decisions for public organisations. They offer
those goods and services to the customers which help them to develop their living of standards.
They operate their business with those money which is raised by taxes.
Purpose- The main purpose of public organisations is to provide good quality of products and
services to customers at lowest prices so that those customers will develop their life standards

who are lacking behind to gain essential resources from private institutes (Jonathan, Rusu and
Perjons, 2019).
Legal structure- There are overall three legal structures of public organisations which are
explained below-
Central government- It is the type of regulatory body of public organisations which has power
all over the nation. It can take decisions and their decisions are supposed to follow by every
public company. They solve the issues and problems of companies at international level.
State government- This regulatory body has power to take decisions on state level. They all
information on state level and passes to central government in case they are unable to solve the
issues at their own state.
Local government- It has the responsibility to manage local areas like districts and towns to
solve all issues of customers within their district (Acklund and Davidsson, 2021).
Private organisation- These are those organisations which make their own decisions
and government bodies has no power to interfere in their decision making process. New Look is
the company which is opted as an private organisation which manage their funds and all
operational activities by their own way which ever they suits best for their growth.
Purpose- The main purpose private organisations is to earn maximum profit by adopting any
strategy or business model of their own choice (Sta, 2018).
Legal structure- There are three types of legal structures of Private companies which are
discussed below-
Sole Proprietorship- It is the type of business which is owned by a single owner and all
decisions and operational activities are done by single person.
Partnership- It is a type of company which is owned by two or more owners together to share
profit and losses according to their agreement. The role and responsibilities of partners also
divided among themselves after signing their partnership agreement.
Companies- These are the separate entity of their owner which has many employees and it is
divided among department wise (Samantaray, 2017). Here, a board of directors are elected by the
members of companies to take necessary decisions for the growth of their business. Board of
directors also has power to control the business and business activities. New Look has many
departments and a huge number of employees which is controlled by the board of directors.
Hence, New look has company structure in private organisation.

Voluntary Organisations- It is the type of organisation which worked for the
betterment of society.
Purpose- The main purpose of volunteering organisations is to develop the living of standards of
those people who lack behind to develop their personality and life because of poverty, inequality
and many other social reasons (Sloane and Pröbstl-Haider, 2019).
Legal structure-
Unincorporated association- Here, the main aim of organisations is to provide benefit to
organisation without earning profit from their activities.
Trust- These organisations provide donations for the development of people. Oxfam provide
donations and help those poor people who are in need to earn their basic necessity (Shachar and
et. al., 2018).
P2 The size and scope of a range of different types of organisations
Marks and Spencer- It is an publicly owned retailing company which is headquartered in
London, England. They mainly worked to provide their best services to their targeted customers.
Background- Marks and Spenser is an British multinational retailing company which is
founded in the year 1884 by Michael Marks and Thomas Spenser. It is headquartered in London,
England, UK. It basically sell clothing, food products and home products. It has more than 950
stores in UK from which more than 600 stores only sell food products.
Mission- The mission of M&S is to provide best qualitative products to their targeted
customers and gain their satisfaction.
Vision- The vision of M&S is to lead the industry and become the standard that others
can measure their success through M&S.
Business Objectives- The main business objective of M&S is to grow well and capture
most the areas worldwide to spread their business. They also aims to create trend in market by
their own products and services which other business can follow in future.
Scope- Main scope of M&S is to provide innovative products and services to their
customers for gaining their satisfaction level. For this purpose they mainly focus ion the quality
of their products and services (Aguilar-Fernández and Otegi-Olaso, 2018).
Size- there are overall 1,463 stores worldwide and M&S hire approximate 81,000
employees.

Stakeholders- The main stakeholders of M&S are their customers, employees, suppliers,
owners and few others.
New Look- It is the type of Privately Limited Company in retailing industry which is famous
for their clothing product. They provide trendy cloths to their employees on reasonable prices to
attain customer satisfaction.
Background- New Look was founded in the year 1969 by Tom Singh. It is
headquartered in Weymouth, Dorset, UK. Recently this company was founded in Taunton,
Somerset. It grow faster because of their trendy and stylish cloths. They have their stores in
Belgium, China, Germany, Russia and many others.
Mission- The mission of New Look company is to help people by providing them those
cloths which help them to look good as well as to feel good.
Vision- The vision of New Look is to lead the market and earn more profit by satisfying
more customers.
Business Objectives- The main business objective of New Look is to provide their
customers those products in reasonable prices which help their customers to change their styles
and personality.
Scope- Their scope is to provide vast variety of clothing types to their customers which
help them to gain more customers trust in market (Das and Pattanayak, 2018). This can be done
only by analysing current marketing trends and making strategies according to that. New look
adopt trendy changes in their manufacturing process.
Size- New Look have approximate 800 stores with 12,852 employees.
Stakeholders- 90% of shares are owned by Brait which is an South African investor in
the year 2015 and remaining 10% are owned by Singh Family.
Oxfam- It is basically an charitable trust which aims to remove poverty from world by
providing needy items to those who are in need (Puspaningrum, 2019). It is an non- Profit
organisation whose main purpose is to serve in the society.
Background- Oxfam is an organisation which is named after Oxford Committee for
Famine Relief which is founded in the year 1942. it mainly aims to help poor people, natural
disaster suffered people and many others. It is the group of 20 charitable trusts which come
together to work for a single and aim and that is social services.

Mission- Their main mission is to provide permanent solution to poverty, social injustice
and hunger in the world.
Vision- Their vision is to provide better life to each and every human life.
Business Objectives- The main objective of Oxfam is to remove poverty from world and
any injustice. They require to help the people and make this earth a beautiful place to live for
every human life.
Scope- Their scope is to remove poverty and injustice from the world related to
inequality and other social causes to provide all required resources to those people who are
unable to take the advantages of few essential resources due to their societal inequality.
Size- Oxfam has 10,000 staff globally and 50,000 interns which worked in more than 90
countries.
M1 Analyse how the structure, size and scope of different organisations link to the business
objectives and product and services offered by the organisation
In context of Oxfam which is an volunteering company their main objective is welfare of
society and help poor people to provide them those resources which they are unable to gain due
to inequality (Stride and et. al., 2020). Their legal structure helps them to manage the funds to
helps poor people and their size of 10,000 staff members and 50,000 interns help them to spread
their work among many countries. Hence, this is how their legal structure, size and scope help
them to achieve their objectives (Brogaard, 2019).
P3 Explain the relationship between organisational functions and how they link to organisational
objectives and structure
There are many departments within an organisation which helps to achieve organisational goal
by performing their set tasks. Moreover, the interrelationship between these departments are
essential for every organisation. In context of Morrison, the importance of their department's
interrelationship are explained below-
HR department and marketing department- HR department is responsible for making
strategies and plans for organisation to achieve their objectives and aims (Nizamidou, Vouzas
and Gotzamani, 2019). On the other hand, marketing department is responsible to handle all
marketing activities like analysing marketing trends, analysing targeted customers, aware
customers by adopting appropriate promotional tools and many others. It is essential to have
interrelationship between HR department and marketing department because appropriate

communication between these two departments will help the HR manager to collect all required
information about customer behaviour and attitude toward their product. Hence, they can make
strategies after collecting information with marketing department.
Production department and customer service department- Production department are
responsible for converting raw material into finished goods. Customer service department are
responsible to handle all issues of customers related to their products and services (Rezk and
Gamal, 2021). In context of Morrison, the interrelationship between these two departments help
them to achieve customer satisfaction. Customer service department receive all complaints from
customers related to their products and services which they passes to production department so
that they make changes in their process or packaging system to achieve customer satisfaction by
focussing that same complain will not received again. On the other hand, customer service
department can gain the knowledge of how they packed their products and many other essential
informations which is helpful foe customer service department in case they have to explain the
procedure to their customers. Hence, this is how the interrelationship of both departments are
essential to achieve customer satisfactions which further help the Morrison to achieve their
objective.
M2 State the advantages and disadvantages of interrelationship between organisational functions
and their impact upon organisational structure
Interrelationship between departments of an organisation is effective for them to achieve
their organisational goals. Hence, there are many advantages to have good relations between
departments of organisation like it helps in enhancing the habit of communication within
employees. To make any decision, every department need to interact hence, it will helpful for
companies to take suggestions from every department for making any decision (Alves and et. al.,
2018). It is a good source of creating trust and effective organisational culture within
organisation. On the other hand there are few disadvantage of interrelationship between
departments because discipline of organisation get impacted with more interaction of
departments, increase in loosing the personal information and many others.
D1 Provide a critical analysis of the complexities of different types of business structures and the
interrelationships of the different organisational functions
It is critically evaluated that there are different organisational structures based on
different types or organisations. For example public organisations have three types of

organisational structure like central, state and local. Central government has power to control all
issues and problems related to whole nation (Osunnuga, 2020). State government has power to
handle the issues related to their state and in the end local government has power to handle the
issues of district level. Private companies are also having three type of structure. Sole
proprietorship is the structure where whole business is managed by a single person. Partnership
is the structure of private companies where whole business is managed by two or more partners
as mentioned in partnership agreement. Companies is the structure where departments are
created in a business and specialization work is supposed to done here (ABOLADE, 2020). In
context of volunteering companies there are two structures. Unincorporated association help
people with the main motive to avoid profit earning aims. Trust are organisations which provide
donations for the betterment of society.
Part 2
P4/ M3 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples
PESTEL analysis are done to analyse the impact of macro environment upon different
organisations-
Political factors- It consist of taxes, government rule and regulations, trade restrictions
and many others (Thakur, 2021). In context of UK, they have few trade restrictions on UK based
companies. Hence, it is an positive impact upon Marks and Spenser to transport their goods from
UK to other countries and grab the opportunity to expand their business. On the other hand, there
are high corporate taxes in UK which is 19%. This impacts negatively upon Marks and Spencer
because they have to pay high rate of taxes which directly impact upon declining their retained
earning.
Economical factors- It consist of GDP of a nation, inflation rate, raw material cost,
employment rate and many others. In context of UK, they are famous for their economical
conditions and positive support from government to the corporate world. Their inflation rate is
low and their employment rate is high which impacts positive upon Marks and Spenser by
having more opportunities to hire better skilled employees for their organisational benefit. On the
other hand, the cost of raw material in UK is expensive than any other country's raw materials.
Hence, this impact negatively upon Marks and Spencer because purchasing raw material from

UK is expensive and purchasing raw material from outer countries will also add tariff costs,
shipment charges, time consumption and many others.
Social factors- This factor includes purchasing behaviour of customers, attitude, norms,
beliefs and many others (Song, Sun and Jin, 2017). In context of UK, their population have good
purchasing habit and they are ready to pay little extra amount to purchase quality products.
Hence, they are more focused toward quality. It will impact positive upon Marks and Spencer
because they can gain the trust of customers by offering them quality of products. On the other
hand, there are many strikes held in UK due to discrimination factors, skin tone, religion and
many others. It will provide negative impact upon Marks and Spencer because during strikes
most of the retailing companies have to close their stores to protect their stores from damages.
Technological factor- It consist of updated and advance technology of a nation which
help their companies to grow well. In context of UK, they are well known for their advance and
updated technological factor and due to this Marks and Spencer get positive impact by using
most advanced tools and machines for their production.
Environmental factors- It include climate, pollution, tourism rate and many other
factors (Pan, Chen and Zhan, 2019). In context of UK, their climate and whether is attractive for
tourists and due to this reason their tourism rate in good. A increasing rate of tourism in UK is
beneficial for Marks and Spenser because more tourism will help them to attract more customers
and aware their brand to tourists so that they will start using their products ad become their loyal
customers. On the other hand, the air pollution of UK is so hazardous that every year more then
8% people die due to lungs and respiratory problems which is caused by their air pollutants. This
will imp[act negative upon Marks and Spencer because the health of their employees get
impacted.
Legal factors- It consist of all legal laws and rules and regulations made by government
for their country to maintain discipline (What is a PESTEL Analysis? (2021)). In context of UK,
there are employment law of fix wage system, safety laws and many others which helps to
protect the right of employees and customers. This impact positive upon Marks and Spencer to
satisfy their employees by obeying all laws made by their government. Employee satisfaction
will further help to increase performance of employees and increasing performance of employees
will directly contribute to increasing productivity and profitability of company. On the other

hand, these strict laws and rules and regulations will also restrict Marks and Spencer to take
flexible decisions according to their benefits.
P5 Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses
SWOT analysis is used to identify the strengths and weakness of Marks and Spencer-
Strengths-
 Marks and Spencer have a strong brand
image which help them to attract more
customers. The reason behind their
strong brand image is their quality of
products and services. They offer best
quality to their customers which further
help them to achieve customer
satisfaction.
 They are famous for their multichannel
presence because they deal in physical
stores, online shopping, franchising and
many others. Their stores are presented
in many countries. Hence, this will
further help them to make a broad
scope to gain more customers.
Weaknesses-
 M&S is having their stores in UK, US
and Europe only. They planned to
expand their business in Asian
countries but they become unsuccessful
because the Asian People did not like
their designs and prices which they
offered.
 In context of Morrison, their Supply
chain scalability is not appropriate and
hence, they lack behind to analyse the
requirement of their products and
services.
Opportunities-
 It is a good opportunity for Marks and
Spencer to adopt franchising method to
spread their business in more countries.
 It is a good opportunity for Marks and
Spencer to manufacture traditional
cloths for Asian countries because
Asian people are more preferred to
wear traditional cloths.
Threats-
 Competitors are the biggest threats for
an company and especially for those
company who are spreading their
business internationally (Elavarasan
and et. al., 2020). Debenhams, John
Lewis Partnership and many others are
the major competitors of Marks and
Spencer which impact their business.

 Government policies for retailing stores
are different in different countries.
Hence, M&S impacted by various kind
of rules and policies.
P6 Explain how strengths and weaknesses interrelate with external macro factors
Strengths and weakness of Marks and Spencer are interrelate with external factors and this is
mentioned below-
 Political factor- Handling government policies of different countries are tough for Marks
ans Spencer and hence it is a weakness for them to follow different political rules and
regulations for different countries where they are having their business. Political support
of UK to UK based companies are strength for Marks and Spencer because they support
the companies and apply less trading regulations on UK based companies.
 Economical factors- The prices of raw material of UK are expensive which impact upon
manufacturing process of Marks and Spencer because when they purchase expensive raw
material then the cost of production will increases and the end product will be sold on
high prices (Ortega and et. al., 2019). Hence, the high prices of raw material of UK is
weakness for Marks and Spencer. The high rate of employment in UK is considered as
strengths of Marks and Spencer because it will provide them opportunity to hire many
skilled employees.
 Social factors- Marks and Spencer strength is that they are having good brand image and
a brand image is created by customers by preferring the quality and services of a
company in good condition. Hence, good quality and of products which is offered by the
company is liked by their customers and they prefer to buy more products from same
company for a longer period of time. On the other hand, fulfilling the demand of Asian
customers by Marks and Spencer is not up to the mark. In simple words, Marks and
Spencer are unable to provide better quality and designer traditional cloths to their Asian
customers which is tough for them.
 Technological factors- It is the strength for Marks and Spencer to use high tech
technology of UK for their production of qualitative goods. They also use various kind of
technology to analyse their marketing situations. Online business of M&S help them to

increase their sells. On the other hand, they are unable to manage their waste
management in such a way that it will provide benefit for them.
 Legal factors- Employment law of UK is beneficial for Marks and Spencer to maintain
their discipline hence, it will be considered as strength for them to maintain their policies
and rules and regulations according to the UK employment laws (Tsangas and et. al.,
2019). For example, their government has law related to CSR activities which is
compulsory to adopt for every company. M&S are performing some CSR activities
which help them to gain he trust of employees and also help them to create a good brand
image. On the other hand, they are unable to perform flexibly due to many restrictions
hence, it is considered as weakness for them.
M4 Apply appropriately SWOT/TOWS analysis and justify how they influence decision-making
Every company has their strengths and weaknesses which impact upon their decision
making process. Marks and Spencer analyse their strengths and weaknesses as well as
opportunities and threats on regular basis and then they adopt some strategies in their decisions
making process. For example, M&S has good brand image which is their main strengths which
further help them to create more customer awareness. Hence, this can impact upon their decision
making process related to make better brand image in other countries (Wisetsri and et. al., 2021).
They can use their effective promotional tool for having more brand awareness and create a good
brand image. Their main weakness is that they are unable to measure the scalability of their
supply chain management. Hence, they can make decision of maintaining their supply chain
effectively by hiring some experienced and skilled supply chain manager. Marks and Spencer
has great opportunity to expand their business in Asian countries by offering them their
traditional cloths with good quality and designs which suits them and meet their demand. In this
case they can make decision to analyse Asian country market and hire some famous designers of
their specific targeted countries which help them to provide designs and styles to get popular in
Asian countries.
D2 Critically evaluate the impacts that both macro and micro factors have upon business
objectives and decision-making
In context of M&S, their micro and macro factors impacted upon their decision making
process. For example their internal factor which states that their weakness is to handle their
supply chain management appropriately. In this situation, they can make a good decision by

hiring a experienced supply chain manager which help them to manage their supply chain in
such a manner which will help them to earn more profit (Hajizadeh, 2019). On the other hand,
macro factors such as political factor of UK states that interest rate of UK is low as compared
other counties. Hence, it is beneficial for M&S to take loans and use it for their operational
management and repay it on low interest rates.
Conclusion
It is concluded that there are different organisational structures according to the aim and
purpose of companies. Scope and size of business also plays an important role in making
business decisions. It is essential for departments to communicate with each other on regular
basis to achieve their organisational goal in better ways. PESTEL is used to analyse external
environment and each factor of PESTEL model has positive and negative elements which
impacts a business. SWOT analysis is used to identify internal factors and situations of a
company. Internal analysis of a business help to identify the strengths and weaknesses of a
company. Strength and weakness is interrelate with macro environmental and further helps the
company to make some good decisions.

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