Report on Analysis of Retail Market in UK - M&S

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
P1. Major difference between profit, not for profit and non-governmental organizations (NGOs).....3
P2. Size and scope of the organization.................................................................................................4
P3.Organizational structure and functions...........................................................................................5
P4.PESTLE Analysis of Marks & Spencer’s.......................................................................................7
P5. SWOT Analysis & Porter’s Five Forces Analysis of Marks & Spencer’s.....................................8
P6. Strength and weakness interrelate with micro factor...................................................................11
CONCLUSION..................................................................................................................................11
REFERENCES................................................................................................
..............................12

INTRODUCTION
The sum of all internal and external factors that affect decision of how a company
functions is called a business environment which includes its employees, customers, and
management, supply & demand and business regulations. M&S is one of the UK's leading
retailers. They are committed to make every moment special through the high quality, own
brand food, clothing and home products. It was founded in 1884 and since then it has grown
from a single market stall to an international, multi-channel retailer. This report gives an
insight about the current retail market scenario in UK. The report gives analysis of M&S
based on various models like Porter’s five forces model etc and explains about the current
position of company and its future prospects.
P1. Major difference between profit, not for profit and non-governmental organizations (NGOs)
An organization which aims to earn profit through commercial or non commercial
operations and always look out for its own interests is termed as profit making organization.
These are unlike not-for-profit organizations can withdraw any profits or dividend during
any time. They work in private sector which aim is to fixes goals for the successful running
of organizations. Almost all are register themselves under profit with the aim of fulfilling
personal interest. For example, Mark & Spencer’s, which is a retail giant of UK.
On the other hand, Not-for-profit organizations are , private or public, from which owners
have no right and cannot withdraw any profits / dividends. These organizations can have
surplus / profits from operations but the money stays with them for company usage and is
not distributed among the owners (Song, Sun, and Jin, 2017). Like profit organizations they
also are business oriented in their structure and operation and are very popular in business
and commercial sectors. The main characteristic of a NPO is answerability, reliability,
honesty, and openness to every individual who has invested his/it’s time, money, and faith
into the organization.
The organizations which are not connected by government are known as Non government
organizations. These organizations are help to make positive effect in the society according to
their objectives. They need funds from government in order to maintain their position in thr

market. They are supposed to work on public/social welfare projects. They come in various
shapes and sizes. NGO's mainly get their funding as a donations, and many of them do not want
any kind of donation and they run their business by themselves.
P2. Size and scope of the organization
The main aim of business firm is to get maximum profit and there are many types of
firms such as large, small and medium -size. Many factors make different it from others such
as number of workers employed there, types of owners or partners and many more. But the
size of medium size business is so wide as compared to others.
Along with above mentioned types of organization, another category comes that is small
medium size enterprises called SMEs . In Europe almost more than 90 percent of the
business are classified under small medium business.
The main affecting factor for small medium business are number of employees and their
annual turnover during a year. In case of micro size business, the number of employees are
less than 10 and their yearly turnover is about UDS 2.5 million. On the other hand in case of
small business the number of employees who worked there are approx 50 but having
turnover less than USD 11.6 million. In the medium sized business of organization, the
number of employees for working are about 200 to 250 and their yearly incomes reaches
around USD58 million. The small enterprises get funds from another but this not so in the
case of large business type.
Every business have their own legal rules and regulations and do their best to increase the
size of business or expand it as how the organization is going to raise finances and how it
will distribute its profits (in case of profit making organization).
Every business type have different types of legal structure such as sole proprietorship,
partnership and private limited (joint stock) companies which are mention below:
Sole Proprietorship is a type business having a very simple structure, where entrepreneur
brings his own capital. He himself act as the organizer, the operator, the controller, the help
in taking decision, the financier and apart from this, shares the responsibility for the growth
and development of business. (Song, Sun, and Jin, 2017). This type of organization is very
common in third world countries. They have a very limited scope and are very difficult to
sustain at larger scale for longer time.