Business and Business Environment Report

This report examines the business environment of Marks & Spencer, a leading multinational retailer. It analyzes the types and purposes of different organizations, the size and scope of various organizations, and the interrelation between different organizational departments. The report also investigates the positive and negative impacts of macro-environmental factors on the business, conducts an internal and external analysis using SWOT and PESTLE frameworks, and examines the interrelation of weaknesses and strengths with macro-environmental factors.

Business and Business
environment

Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Types and Purpose of private, public and voluntary organisation and their legal structure...3
P2 The Size and scope of a range of various types of organizations...........................................7
TASK 2............................................................................................................................................8
P3 Interrelation between different organisational departments and their link to objectives........8
TASK 3..........................................................................................................................................10
P4: Positive and negative impact of macro environmental factors upon the business. ............10
TASK 4..........................................................................................................................................13
P5 Internal and external analysis of particular organizations....................................................13
P6: Interrelation of weakness and strengths with macro environmental factors.......................14
CONCLUSION .............................................................................................................................15
REFERENCES .............................................................................................................................17

INTRODUCTION
Business environment is considered as the sum total of internal as well as external factors that
directly influences the performance of business. Business environment is also refers as the
combination of various factors and forces which affects an organizational ability to maintain or
build an effective customers relationship. The concept of business environment is determined as
the most important aspect of an organization as the each activity of the firm is managed as per
the organized business plan. In this particular report Marks and Spencer is the selected firm,
which mainly deals n luxury food products, clothing and home products. This report contents the
study about the different type and purpose of the organizations, a proper description about the
size, scope and type of business are discussed. A clear vision about the internal as well as the
external factors that influences the performance of business in positive as well as negative
manner. The internal and external analysis can be done through analyzing the strength and
weaknesses of the firm in effective manner.
TASK 1
P1 Types and Purpose of private, public and voluntary organisation and their legal structure.
In this modern and competitive business era, organizations are work for attaining some
goals and objectives which are predetermined in nature. The major purpose of each small as well
as large business enterprises is to attaining high growth and profitability through satisfying the
needs and wants of people at market place. There are different kinds of organizations whose
purpose, scope and mission are different from each other in the terms of profit and service
aspects. The growth and development of small and large business organizations are connected
with the economic development of the country’s economy. The organizations are categorized
among three major types like public, voluntary and private business firm, that are described as
under:
Basis of
Comparison
For Profit NPO NGO

Meaning These kinds of organisations
are based on generating
more profit through offering
variety of services to their
potential customers. The
major purpose of this type
of firms is to attaining high
profitability by satisfying
customers needs.
This sort of
organisations is work
for social welfare in
these organisations is
not concern about the
profit.
It considered as a non
governing body which
are focused on offering
effective health care
facilities to the people.
In this volunteers
firms, NGO’s are
included.
Area of
Operations
It operates its business
activities as a large business
firm in terms of capturing a
wide area of market.
These organisations
are rare and work for
providing significant
growth.
This is large in nature.
Objectives The major objectives of the
firm are to gaining the
attention of customers by
offering variety of products
and services.
It is set up to
providing social
welfare services to the
people and works by
charity.
Their potential
objective is to
rendering proper
services to the people
in respect to reaching
at potential goals.
The purpose and the legal structure of the firms are described as under:
Public Sector organizations:
These sorts of organizations are concern on offering appropriate products and services to
the people without any consideration of profit and growth. These kinds of firms are work as
global level and widely operated and controlled by government bodies. National Health Services
is considered to be the popular public organisation within UK, the company is concerned on
offering health care services globally.
Purpose of NHS:

 Provide better or beneficial services to the needy individuals of society.
 Work for improving economic and social situations of public.
 Offering wide range of social insurance training facilities to patients.
Legal Structure:
 State government- In this organizations are needed to be follow all kinds of provision that
have been organized by the government and along with providing a proper management
and some of the other products within the market place as to economic development of
country.
 Local government- It is looking for essential elements that are required for the welfare of
local people.
 Central government- This segment helps to the functions that are specified by the
departments of state and central government bodies.
Private Sector:
In this the major motive of each small as well as large business enterprises is to attaining
higher profitability and growth through attracting large number of customers towards the
firm or its offered products and services. Marks and Spencer is a multinational retailer
organisation, which is founded in the year of 1884 and operates its business functions in
luxury food products, clothing’s and home items.
Purpose of Marks and Spencer:
 The significant purpose of M&S is to capturing a wide area of market by offering
variety of products and services to their customers. Generating higher profitability through attaining higher competitive edge within the
market place.
Legal Structure:

 Sole Proprietorship: It is the most popular form of business and these are controlled
and maintained by the individual owner who is lastly responsible for conducing the
activities of the firm.
 Partnership: In this two or more than two organizations or individual people are
connected through an agreement and share some common goals and objectives.
 Multinational company: This sort of organizations is operating their business
functions at large level and their headquarters are located in some specified countries.
In this kind of firms whole activities are handled by the main headquarters. Global Company: In this organizations are markets their wide range of products and
services in different geographical areas with a single brand name.
Voluntary firm:
This sort of firms is created by the group of people or volunteers that are come into a
specific agreement which is based on similar purpose. These kinds of organizations are work for
providing social services at the place of attaining profit or growth. These are also known as non-
profit firm. This sort of organizations needs permission from the government bodied before
conducting its operation in a country. Oxfam is a popular voluntary organisation in UK. The firm
has started its operations from the year of 1942 within UK.
Purpose of Oxfam:
 Concern on providing proper services as to eliminating poverty that are arises through
any kind of disaster.
 Focuses on saving living of people by offering required treatment and facilities.
Legal structure:
 Trust: This type of structure doesn't required membership and can be created by a group
of people.
 Association: In this people with common interest are involved who works for providing
services instead of profit.

P2 The Size and scope of a range of various types of organizations
Each business organisation has their own scope, size, vision and mission but their
purpose and aims are different from each other in terms of profit margin. In an organisation
stakeholders are considered to be the essential aspect which is effective in attainment of
organisational goals and objectives in proper manner. The size, scope, vision and mission of the
firm are described as below:
Marks and Spencer:
It is a privately owned multinational company which mainly works for attaining high
growth and profitability at market place. It is a largest retail firm which is owned and controlled
by individuals and partners. The company has its business operations all over the globe and has
around 84,939 employees who work for attaining high growth and profitability. The net income
of the firm is around £115.7 million.
Size: It is a large multinational retail organisation. The company majorly operates from it’s
headquarter which is in UK. The company has around 959 stores within UK and more that 1433
across the world.
Scope: The Company has grown so fast as to making changes in their policies and norms. The
potential growth of the firm was depend on the efforts of Michael Marks and Thomas Spencer.
The major scope of the firm is to attaining higher growth and profitability through capturing a
wide area of market.
Vision: As a leading retailer company Marks and Spencer wants to be on top and become the
major priority of their buyers. Thus for this company is majorly deals in luxury and high quality
products and services.
Mission: To convert their visitors into final buyers through grabbing their attention by satisfying
their needs and wants.
NHS(National Health Service): NHS is national medicinal services framework and it provides
compelling wellbeing related services to legitimate occupants of Britain with offering a few
administrations free for people and in this guests are involved.

Size: The NHS operates globally and provides health benefits of the people. The company has
around 1.5 million employees, who work for providing social wellbeing. The has around 111,127
dental doctors, 314966 health care takers and 18,862 staff members who are providing
ambulance and other services to the people.
Scope: The significant scope of the firm is to providing wide range of free services to developing
the wellbeing of people without considering the aspects of profit.
Vision and Mission: The Company has wide range of employees who are engaged in offering
health care benefits to the people by considering the appropriate norms and policies. Company
wants to offer high quality services without taking any kind of charges.
Oxfam: Under this, firms are worked by supporters, institutions or funders. Oxfam firm goes
under deliberate area and it is enlisted in United Kingdom and work under 15 titled trusts. T
operated its business at wide scale for the purpose of enhancing social wellbeing.
Size: Oxfam is one of the greatest associations of UK which comprises of more than 20 charity
trusts to guarantee the enhancement in welfare of individuals. Oxfam has in excess of 1200
stores in different nations with more than 20,000 volunteers working for enhancing the financial
states of society.
Scope: The extent of Oxfam is connected with accomplishment of destinations and objectives in
a foreordained period which can be accomplished through legitimate utilization of workforce and
assets.
Vision: Oxfam needs to convey quality administrations to the practical in reverse individuals by
giving work to expel the destitution from the UK's economy.
Mission: The organization means to give vital offices to the subjects so they can live with proper
facilities and security.
Stake holder: Companies major stake holder is the charitable trusts that are providing appropriate
funds and capital in order to proper implementation of organizational activities. Charitable
organisation, social institutions, government bodies etc are the major stakeholder.

TASK 2
P3 Interrelation between different organisational departments and their link to objectives
Each small as well as large business organizations are work for attaining their own goals
and objectives. In the modern business environment competition is so high at market place and
organizations are widely concern on attaining higher growth and profitability by segregating
their business operations in well planned and systematic manner (Cai and Yang, 2014).
. The business activities of small and large business organizations are categorized among
different departments and the growth and development of the firm are relay on the effective
operations of each department. Marks and Spencer is an extensive private constrained
organization which operates its business activities everywhere throughout the globe and the
organization operates in various divisions like luxury food products, high quality clothing’s and
attractive Home apparels. so it is basic for association or its higher specialist to keep up a decent
relationship among different authoritative heads and organisational employees. The upper level
include Board of Directors, CEO and shareholders who are answerable for providing information
and guidelines to middle and lower level employees by implementing suitable strategies and
policies. So, it is necessary for Marks and Spencer to settle on the efforts of various departments
for achieving the shared goals of organisation. As a vast business affiliation Marks and Spencer
has classified their business activities in various divisions as to keep up proper interrelationship
among every one of the department and these are portrayed as under:
Marketing Department: This comprises to be a most imperative part as it is framed for
upgrading deals and income of firm at Marketplace (Chavis, Klapper and Love, 2011). This
department is mainly responsible for marketing and promotion of the products and services
which are offered by the company at market place. As a large retail company Marks and Spencer
is using various marketing tools like advertising, social media marketing, newspaper
advertisement etc. in order to implementing these activities in effective manner organization
needs funds and capital which are provided by the finance department of the firm. Effective
advertising create value in attracting large number of customers towards the firm or its offered
products and services.

Finance Department: This is likewise an essential component of firm and it has an immediate
connection with the momentary aspects of the firm. These departments within the firm is
responsible for making appropriate arrangement of funds and capital from various sources and
allocate them in each department as to smooth functioning of organisational functions. It is
fundamental for an association to have a viable and great budgetary foundation as to execute all
business tasks in most ideal way. This segment is effective for Marks and Spencer in making
proper arrangement of funds and capital so that all the activities of the firm can be conducted in
appropriate manner. For an example: finance department within firm provided appropriate
among of funds to the production department to purchase new machinery so that significant
quality of products can be made. In this division different exercises are included, for example,
proper arrangement of funds and decreasing liabilities and so forth.
Production: This department is considered as the most essential segment which is responsible
for the appropriate production that is required for satisfying the needs and wants of customers at
market place. Production department needs appropriate amount of funds and capital from the
finance department so that proper arrangement of machinery and raw material can be made. Thus
this is effective in attaining higher growth by producing higher effective and qualitative products.
This comprises to be the essential division of firm as the development and accomplishment of
firm depend on its production function. It alludes as a procedure in which arranging,
coordinating and controlling are included. As an expansive retail organization Marks and
Spencer is generally worried on delivering excellent items and administrations in regard to
keeping up its effective brand image in the mind set of customers.
Human Resources: The major concerned area of this segment is to developing the strength of
employees within the work place so that appropriate growth can be attained. For hiring best
suitable candidate for the profile HR department needs to coordinate with marketing department
to publish proper details about the vacant position within the organisation, thus best selection can
be made among the alternative who are apply for the same profile. The major obligation of
human resource manager is to maintain appropriate flow of knowledge and skills though
recruiting right and highly skilled employees within the work place. As a well known firm Marks
and Spencer is concerned on hiring well skilled and talented human resources for long term
operations of the firm.

TASK 3
P4: Positive and negative impact of macro environmental factors upon the business.
The business organisation who is operating in different segments or wide range of
geographical areas has already analyzed the influence of macro environmental factor. As a well
known and well reputed company Marks and Spencer operates in different countries and faces
various kind of issues related with external environmental factors (Commander and Svejnar,
2011). These factors have some positive as well as negative influence on the operations of the
firm. PESTLE analysis is the best suitable way to analyzing the external macro environmental
factors for Marks and Spencer, the significant elements and its positive and negative impacts are
described as below:
Factors Meaning Positive Negative
Political This considered as the
primary aspect of
PESTLE analysis. This
incorporates the political
aspects of a country.
Under this, all policies
are designed and created
by the government of
United Kingdom. In
addition to this, if
government will created
new legislation or
policies for producing
new and innovative
products then it will
have impact on the
activities of business
firm.
The major positive
influence of politics is that,
the company Marks and
Spencer has reached at the
higher competitive position
by considering all the
aspects of government
norms and policies.
The major negative
influence is that it is
tough for Marks and
Spencer to implement
all the changes at
constant basis because
it affects the operations
of the firm in extreme
level.
Economical This is also an essential After Brexit the economic On the other hand the

aspects which is
required to be
considered by the
organization or its
authority in respect to
maintain the business
operations in effective
way. Under this, if the
economic condition of a
country goes down that
it may affect the growth
of business organization.
In this way, it is required
for Marks and Spencer
to make a decision in
regards to the economic
condition of a country so
that appropriate growth
can be attained.
condition of UK has
changed and it is required
for the firm to know about
the inflation rate and
different income levels.
The major positive
influence of this is that the
proper up gradation in
inflation the reserve stream
will be expanded and bring
more cash (Cuervo‐
Cazurra, 2011).
.
major negative
influence is that in the
case of change in
currency or change in
the currency rate may
influence the
profitability of the firm.
Low income level of
people may also
influence the market
position of Marks and
Spencer.
Social This factor is basically
based on the behavior,
attitude and perception
of the people. This is
related to the social
environment, as the
perception and
requirements of people
are changed as per the
change arises in the
market trend. It is
necessary for Marks and
With this Marks and
Spencer is required to
determine the new trends
so that satisfactory services
can be offered to their
potential customers. The
firm is also able to capture
a wide area of market
which creates value in
attaining growth and
success.
Lack of appropriate
knowledge and skills
among buyers has a
direct influence on the
development of the
firm. Due to large
market reach sometime
Marks and Spencer is
not able to fulfill the
requirements of buyers.

Spencer to provide
satisfactory products and
services to their
potential buyers in order
to sustain them for long
run of business
operations this also
create value in attaining
long term profit and
growth for the firm
(Gebauer, Paiola and
Edvardsson, 2010).
Technologica
l
This factor is widely
incorporated with the
implementation of
advancement in the
operations of the firm.
Under this Marks and
Spencer is concern on
using advance and high
tech technologies as to
conduct its business
operations in effective
manner. The business
firm utilizes diverse
innovation with a
potential end goal to
influence change in its
business and
additionally activity to
process.
It develops value within the
firm to create appropriate
changes in their production
functions. This cause high
benefit for the firm to
produce more qualitative
products and services.
This enhances the extra
cost of firm, which
considered to be the
major negative
influence on the
profitability of the firm.

Legal It is mandatory for each
small and large business
enterprises to follow the
rules and legislations
which are created by the
countries government or
its bodies. Marks and
Spencer is consistently
following the rules of
government as to
achieving growth
without facing any kind
of issue and conflicts.
The major positive impact
of legal factor is that the
company is able to
recognize all the legal
norms that are beneficial
for the growth of firm.
Government legislations
are effective in protecting
the rights of employees as
well as customers.
collapse in proper
implementation of
strategies which are
created by the
government will cause
legal penalties and fine,
thus this creates issue
for Marks and Spencer
and affects its brand
image.
Environment
al
This aspect comprises
those factors that are
recognizing by the
surroundings of a
domain. This is also an
effective element which
has direct influence on
the growth of firm. The
government of a country
has created some norms
and policies in regards to
protect the environment
form various
environmental issues.
Marks and Spencer has
concern on using eco
friendly sources that
reduces environmental
issues and Red- tapism will
be reduced and firm can
easily implement its
operations in viable manner
(Halbert and Ingulli, 2011).
The major negative
impact of
environmental factor is
that the brand image f
the firm is reduces and
this cause issue in
expansion of business
at global level.

TASK 4
P5 Internal and external analysis of particular organizations
Internal as well as external factors plays vast role in effectively maintaining the business
activities of the firm. The appropriate management of these two factors are required for each
small as well as large business enterprises to effective functioning of organisational operations.
These two factors has direct or indirect influence on the operations of business. It is the major
obligation of the higher authority and management of the firm is to consider all the factor that
has direct or indirect influence on the operations of the firm in effective manner (Hamilton and
Webster, 2015). Appropriate internal and external analysis can be done through considering the
element of SWOT analysis in appropriate manner. The internal and external analysis of Marks
and Spencer are described as below:
SWOT Analysis of Marks and Spencer:
Strength Strength is incorporated as the power for firm which plays effective role in the
development of firm or its operations in effective manner. The major strength
of Marks and Spencer is that company is operating at global level and has a
good and effective brand image in the mind set of people within the market
place and the brand image creates value in grabbing the attention of buyers
towards the firm or its offered products and services. Strong portfolio and
wide range of products are the another strength of the firm.
Weakness Weakness create downfall in the operations and progression of the firm. The
major weakness of Marks and Spencer is that the cost of labour is high which
has a direct influence on the productivity and performance of the business.
Due to less knowledge in some emerging markets in which Marks and
Spencer is planned to expand (Hilton and Platt, 2013).
Opportunity This is also considered as the external strength for the firm, this has direct
influence on the development of the firm or its operations. As a large retailer
company Marks and Spencer has the opportunity to develop their own website
as to making organisational transactions more easy and effective. The website
provides easy and reliable facilities to its customers who are not able to visit

the stores.
Threats This also considered as the weakness of the firm. Threat causes the direct
downfall in the growth and operations of the firm. The major threat of Marks
and Spencer is the High competition within the market as it cause issue in
business expansion. Chaining needs and preference of buyers is also another
issue of firm.
P6: Interrelation of weakness and strengths with macro environmental factors
The business activities of the firm are affected with the internal as well as external factors.
Marks and Spencer operates at global level and the growth and development of the firm is based
on its internal as well as external factors. Marks and Spencer has a couple of characteristics and
furthermore inadequacies which is essential to choose by organization for betterment of its
business operations. In United Kingdom, this organisation has extensive number of clients and
has strong brand image in overall market. Moreover, outside factors taking off upgrades for firm
so there is a need to invest in organisation production functions in order to satisfying the new
needs and wants of the customers.
Marks and Spencer has effective brand impact which is required to be maintained as to
lifelong function of the firm. This firm is entering later on business areas, for instance, China.
Money related enhancement of this nation is most dumbfounding and acquiring limit of people
of United Kingdom is furthermore redesigning. The pay of Marks and Spencer is overhauling
well ordered after defied various political and likewise productive issues (Prajogo, 2016). The
salary of this business firm is enhances consistent preface and moreover opening new stores in a
bit of exchange countries like in the case of India and China. Concerning this, outside segments
should overview Marks and Spencer to take after practical methodology of worldwide and in
addition to fast improvement.
PESTLE Analysis of Marks & Spencer
FACTORS
Political This factor incorporates on the basis of government norms and policies.
These factors are governed and controlled by the government bodies such

as trade restriction, trade policy, change in tariff etc. The major strength
of Marks and Spencer is that the company is on competitive position
because the company has concerned on following the government
policies. On the other side the major weakness is that the company is not
able to adapt all the changes that are implemented by the government in
regards to the cause of political issue.
Economical Dispute with the medium and small retailer over augmentation cost of
retailing as a result of money influence of Brexit. The major strength of
Marks and Spencer is its high market reach which is considerable
developed by the company through making appropriate changes in the
inflation rate, exchange rate etc. On the contrary the major weakness of
the firm is that due to wide market operations company does not have
high funds which may influence the operations and profitability of firm.
Social This factor is mainly related with the societal elements like change in
trends, tradition or culture The potential strength of Marks and Spencer is
their employees, the company takes their employees as their priority and
taking care of the workers as per their culture and traditions. Whereas
high employees turnover is the major weakness of the firm. Product chain
reviews creates negative patterns of society and Effect on the brand
generosity of an association.
Technological This factor is based on adoption of most suitable technologies in order to
development of organisational operations. As a large business firm Marks
and Spencer is concern on adopting new and advance technologies in
order to improving their production and operation. High brand image is
the major strength of the firm which create value in attracting wide range
of customers towards the new and advance offerings of Marks and
Spencer. On the other hand the weakness of the firm is that due to lack of
capital and funds some time it is not possible for Marks and Spencer to
adopt all advancement in their operation. Thus, it can be said that there is
a effective interrelationship among the strength and weakness of Marks

and Spencer with the technological factor.
Legal The major strength of the Company Marks and Spencer is that the
company has followed the government rules and legislations in respect to
effective implementation of organisational activities. The company is also
concern on using eco-friendly products as to providing environmental
benefits to the county. Whereas the major weakness is that it is not
possible for the firm to adopt all the policies, which may has direct
influence on the rand image of the firm.
Environmental It is fundamental for Marks and Spencer to centre around the waste
administration so that environment can be safe and secure this is the
major strength of the firm.
CONCLUSION
From the above given analysis is has been concluded that business environment is
considered to be the most essential element which has a direct impact on the business operations.
Each business organisation has their own purpose and they work as to reaching at their desired
aims and objectives. It is required for each business organization to develop an appropriate
strategy so that all the business activities and operations are implemented in right manner and
growth can be attained in appropriate manner. Macro and micro environmental factors also
required to be maintained so that growth can be attained by analyzing the internal and external
sources of the firm.

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Online
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