Business and Business Environment Report

This report analyzes the business environment and its impact on organizational growth and success. It examines different types of organizations, including private, public, and voluntary, highlighting their unique functions. Using PESTLE analysis, the report analyzes the external factors affecting Marks and Spencer, a leading retailer. It further utilizes SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats, providing insights into its competitive position in the market. The report concludes by discussing the interrelationship between external and internal factors and their influence on decision-making processes.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1. Overview with explanation of different types of organizations.........................................1
2.Each organizations background details, products and services, size, scope and legal structure
................................................................................................................................................2
Functions of Marks and Spencer............................................................................................4
TASK 2............................................................................................................................................6
PESTLE analysis ...................................................................................................................6
SWOT analysis.......................................................................................................................8
Critical reflection of key of finds and their impact on decision making-...............................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment is an inherent part of effective and efficient management of
organization, it is set of political, economic and institutional situations and legal that is
unmanageable and affects on each functions and activities of company very much (Cohen and
Kietzmann, 2014). Firm business is influenced by different factors which conjointly form the
business environment. Micro and macro both factors impact organizations function and
environment of business as well as probability and productivity. The present report will discuss
about three different types of organizations including its different backgrounds, scope, size and
purpose of business. Moreover, it will also explain organization various functions and its
connection with the organizational structure.
Furthermore, this report clarifies external environment factors that impact on
organization activities by conducting PESTEL. Thus, SWOT analysis identify strength,
weakness, opportunities and threats of company. In this study it will also evaluate how these
things effects decision making procedure of firm.
TASK 1
1. Overview with explanation of different types of organizations
Private organizations
Private sector are the part of country economic structure that is run by many companies
and individuals, more than through government. For example private sector businesses are firms
and franchises, sole traders and partnership in which their purpose are making money or profit.
They only want to develop its business more than another that maximize their sales and increase
market shares. It is a type of joint stock firm in which their business has different legal structure
from the owners (Kolk, 2016). Often these organizations are large or small and family run
business that are owned by shareholders. According to legal structure each shareholder is the part
of business and under any condition they cannot sold their shares to members of common public.
For example, Eagle food LTD was a private organization that run their business effectively.
Public Limited companies
Public limited companies security are listed on stock exchange and must be sold and
bought by anyone. They are stringently regulated and needed by law to publish its complete and
true financial place so that investors will be determine actual worth of their shares. In other
words public limited firm is run their business by Board of directors on behalf shareholder. As
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compare to private limited company, PLC sell their shares on stock exchange to appendage of
common public and raise significantly more business than the others. According to the legal
structure they only sale their stocks on exchange in which its prices of shares will then vacillate
according to investors. For example, Marks and Spencer is a public limited organization that
operate their business at international level successfully.
Voluntary organizations
Voluntary sector work only for the people who need them for making their lives healthy
and safe. It is the union of individuals or group of common association who enter into this on the
bases of agreements basically as volunteers. They perform independently and have flexibility in
their work, voluntary companies does not work for making profit and performed for welfare of
society. In these groups some people are responsible for assuring that they set budgets and
targets and explains what they need to do. For example, Oxfam work internationally within the
purpose of reducing poverty and lift out thrive among people. The only want to give benefit for
community and perform regarding it.
2.Each organizations background details, products and services, size, scope and legal structure
Eagle Foods LTD: Eagle Foods LTD is a private limited organization based in Anteon
house Newark in UK. They provide meat products and lines their business in wholesales of meat.
Firm give its high quality product across the globe and trade in poultry, they supply seafood and
meat to self-reliant distributors and wholesalers across Europe and UK.
Size, scope, mission, vision and structure of company-
They start their retail business by distributing branded rice, soft drinks and flour to other
retailers. Company consistently create innovation in their products in which its experience level
get increase and within these things they will continually expand their goods list more than
others. Eagle food create bespoke provide chain that is one of the best solutions for small to
medium size dessert shops, chicken shops etc. According to current research 25 employees are
working in the organization and performance within the purpose of developing business more
and more. They are owned by many shareholders in which each of them are equally responsible
for profit. Each of them have the limited liability for firm debts and before organization will be
formed they need to complete number of legal documents that is very important for their
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business process. Company mission is to expand their business at global level more than its
competitive. Thus, for that they give all the efforts which help them in the entire procedure
effectively.
Marks and Spencer: M&S is a Public Limited Organization (PLC) which is based in
UK. Firm line business in retail sector in which they sell clothes, luxury food goods and home
products. It was founded in 1884 by Thomas Spencer and Michael Marks in Leeds, they began
this firm to sell branded product which make them popular in market.
Size, Scope and organizational structure
Marks and Spencer has 979 stores across UK, in addition 615 stores only sell food
products. They want to become the leading retailer in the world and build its reputation in market
more than the another. In the organization 84,939 employees are working and give their better
performance for developing business. They expand their business into Canada and scorn various
efforts to improve their image in market. It expansion into France is begun with opening shops in
Paris that raise their position level.
Their mission is to supply good quality services and products to customers that enables
them to become a part of amentiferous workforce of countries. All these process helps M&S to
achieve its goals and objectives of business. By restructuring its food stores they need to improve
their image and build up in better way that directly impact on their business functions. The firm's
ranges include clothing for women, men and children as well as home food and products. Their
objectives is to build a sustainable business through profitable growth and consistent and they act
equally in meeting its accountability to shareholders. According to their expansion they divide
each stores functions into different levels in which each person has play different role and have
various responsibility at the flore.
Customers, investors and other are the stakeholders in which they are the part of business
and have authority to take decision. They only exchange their shares when Certificate of trading
and incorporation allow them. Company is considered as acted legally by following all the legal
procedure. The stakeholders want to make profit as much as possible by expanding their business
across the world. According the process that other stakeholder will receive good amount of
share.
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Oxfam: It is alliance of 20 independent charitable companies that focusing on
assuagement of global poverty, founded in 1942 and led by Oxfam international. Oxfam is a
leading nonprofit group of individuals with an extensive collection of operations.
Size, scope, mission and vision-
Firm engaged to operate the accounts and distribute donated clothing to needed people.
Their stated goal is to help poor people directly when local capacity is inappropriate and
insufficient for Oxfam's purpose. They want to develop that structure which give direct benefits
to people who are facing realities of injustice and poverty. They provide tools to enable people to
become self supportive and opens markets of global trade where produce and crafts from poorer
regions of the world will be sold at good price that give benefit to the producer. They have many
shops in all over the world in which they sell fair trade and donate products. Oxfam spread their
branches in many countries like America, Australia, Belgium, Canada etc. they operate huge
global business in which they give their best services to general public.
Under Oxfam association peoples are placed as the position of manager, honorary
treasurer and executive director. All these members are appointed by the ratified and council by
Association. At the bottom level managers are placed in each of functional areas in which they
get charge of every business activities and functions that goes on that areas. Their workers do not
work in the organization for expecting salary as they are working as volunteers and they want to
help charity.
Liability, charitable status and membership are the legal issues that facing by the firm
regarding the legal structure. Oxfam is a charity trust in which they are generally set up their
business to manage property and funds that clearly defined their purpose. Donors, beneficiaries
and trustees are the three parties where relationship is established on trust.
Functions of Marks and Spencer
M&S is specialist in selling home products, clothing and luxury food products and others.
Organization produces the best quality goods and supply to customers in fair prices that attract
them towards their services (Glova, Sabol and Vajda, 2014). The entire process is held on the
bases of their effective team who performance for raise business image in market place more
than others. They run their business by managing many operations in which their strong
workforce support them in the whole procedure. Marketing, advertising and promoting are the
functions of the organization different departments.
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Sales department and finance department
Sales department develop business by providing affordable and better services that
directly help finance section of M&S. By making effective sales plans they help to generate more
profit that raise the level of financial budgets. This process helps finance department who make
plans, accounting and controlling company finances. Acquire funds is the most essential function
of this department that support to manage whole activities of business effectively. They both
work with the aim of making company good reputation in market better than its competitors.
Operation management and human resource department
Marks and Spencer operation management section concentrate on producing the best
products and services and focus with changes in materials in better way to increase profit of
M&S. They run their all over functions with the help of HR department because they are
responsible for hiring effective workforce in organization. Human resource section select good
and skilled candidates who give their supports for improving and developing business position in
market place.
Marketing department and finance department-
Marketing section work effectively through make good promotional strategies and plans
that help to attract customers towards them more than the others. They run their plan with the
support of finance department. FD allows them to promote and advertise products in
marketplace.
Interrelate
Sales department and finance department both are connected through their aim and purpose.
Finance section allow sales to make plans according to the budgets in which they give its best
that attract people towards them. Communication and collaboration gap make difficulty between
their role and responsibilities that directly impact organization business structure. By working
together they make firm more stronger and successful better than others. Effective employees
grow business more and more that is very beneficial for operational management. Improper
hiring structure directly effect operations of M&S in which it also impacts on their probability
and productivity. Employee's culture and behavior make difficulty for other members or
departments of organization. Without good communication and collaboration the entire process
cannot be successful.
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M&S organizational structure divide into many levels in which each have different
function like marketing department function is to make promotional strategies and finance sector
pass out the budgets to each sections to run their activities effectively in which they have to
make their plans according alloyed costs.
TASK 2
PESTLE analysis
PESTLE is using by the marketers to monitor and analyze external market environment
or factors that impact on organization (Barkauskas, Barkauskienė and Jasinskas, 2015). Political,
social cultural, economic, technological and other factors effect business very much that changes
its entire activities and functions. It is the best framework or strategic methods that help to
understand market growth and business level or its status in market. These factors get changed
due to some reasons that influence the whole activity of company as well as its market growth.
1. Political factors: Those factors that are run, made and changed by the government are
called political factor. It reflects the levels of anticipation by government in different
businesses and trades such as M&S. Authority makes new trading policies like free trade
policy that is very beneficial for organization because they are first major retailer in the
world who go down to the fair trade path on both section namely food and clothing. Fair
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Illustration 1: Organizational Chart
(Source:Organizational chart, 2017)

trade policy enforced by firm has led to substantial reduction in sourcing costs beneficial
for Marks and Spencer. Sudden changes in government rules taxation policy directly
impact on firm profit margin and financial budgets. As working in retail sector these
changes facing by them within huge loss because authorities have specific taxation and
operating law for retailers, for example GST.
2. Economic factors: This factor determinants of economies performance that directly
effects organization for long term period. For example rise in inflation rate of economy
will impact the way M&S price its services and products (Dima, Grabara and Modrak,
2014). Growth in inflation rate develop difficulty for organization in which they need to
change their pricing polices that would also influence the purchasing power of customers.
Regarding this change Marks and Spencer focuses on price of products and quality of
things that build them stronger than the others.
3. Social factors: Social factors are fundamentals that does not directly control but it affects
marketing strategies and business definitely. People needs and demands get changed due
to changes in fashion. M&S produce cloths for women and men, in economy their
customers need are changes as per according to the latest trends that directly impact
organization. Due to that change firm has to modify their whole structure that takes a
long time. With these changes they will give clients their products and services according
to their needs that attract them more towards its business facilities.
4. Technology factors: In competitive market each and very businesses adapt new
technologies for competing its competitors in business. Marks and Spencer entered into
partnership with the technology like SureCloud that strengthen its security, compliance
and risk more than the other because it is essential according to current market needs.
M&S implement new technology in their business for beating competitors in market, but
these changes is much costly than other technologies that directly impact on its financial
budgets.
5. Legal factors: Like any other company, M&S also deal with some legal issues that affect
its business very much. Labor law is the rights of employees that has to be given by every
organization. Marks and Spencer follow all the rules and laws policies and performance
according to it that helps to run business effectively. Organization provide workers all the
facilities and services that make them comfortable at workplace. But if firm do not give
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proper facilities to its staff employees turn over get increase and business performance
get lower than others in business world.
6. Environmental factors: Environment factors include heavy rain fall, flood and other
reasons that affect business directly. Due to heavy rain fall M&S has to produce
environmental friendly products that help them during trading which is quite good for
their business. Producing eco friendly goods need effective workforce that help them
during the entire process, that is created difficulty for organization.
SWOT analysis
SWOT analyze helps organizations to know about their strength, weakness, threat and
opportunities and also evaluate its competitive stage in market (Wang and Li, 2016). This frame
work help to know about the firm capability and evaluate what they can do to raise their position
better than others. It is very useful and better techniques for understanding strengths and
weaknesses of M&S. SWOT is conduct to get information regarding Marks and Spencer
opportunity and threat that they need to reduce in better way.
Strength
Marks and Spencer produce their products and service for customers according to the
latest trends that attract clients towards them. This will make them more popular than the another
organizations in marketplace. M&S have endeavored arduous to put consumers at heart of its
business. They encourage workers to make real time decisions purely driven by client demands
and eliminated non consumer facing activities, so they will spend much time with them and
understand their needs and choices.
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Weakness
M&S does not implement new technology on some areas that low down its position and
impact on their reputation in marketplace (Li and et.al., 2016). They have draw back in market
because of its non trendy and out fashioned products.
Opportunity
M&S plan to invest in Indian markets that is one of the best way to expand their business
in new market that increase its probability and productivity more and more. By reshaping their
clothing segments organization grab the attention of potential and other customer's.
Threat
M&S has the threat of losing its position and scope and other things in business due to
rising competitors in marketplace. Increasing competitions in retail sector is big worry as for the
others.
Critical reflection of key of finds and their impact on decision making-
Trading policy influence on decision-making process in which firm has to make some
changes in their policies as well. In my opinion M&S make modification in their business policy
and include some point which has been imposed by the government. According to my point of
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Illustration 2: SWOT Analysis
(Source: Marks and Spencer SWOT Analysis, 2018)

view implement new technologies in business function is one the factors that effect organization
activity and also impact on judgment process. Company run their business effectively in which
they need to implement new technology or techniques that help to gain best results and beat
competitive environment. Rising competition in marketplace is one of the biggest threat that
effect whole functions of M&S. Competitors have some different strategy and plan that is
powerful more than organization that impact on its production and marketing program. In my
opinion they must make unique and better marketing plans that garb the attention of customers
more than the new once.
Interrelationship between external and internal factors
Marks and Spencer offer its better services and products to customers and supply across
the UK. These process has been held with the helps of government free trade policy that helps
organization to expand their business in other country. This will bring them stronger and
powerful than the others, but on the other side sudden changes in laws or legislation policies
directly impact on their growth. Due to financial issues they cannot implement or follow some
procedures in business that impact on its growth and success.
Comparison between M&S and H&M
Basis H&M Marks and Spencer
Strength Hennes & Mauritz make new
strategies for business growth
and success. They operate its
stores in many markets that
build their reputation more
than others.
As compare to H&M, M&S
produce wide variety of
products and offer to its best
prices that attract customers
more towards them. They have
large number of outlets and
stores. By implementing new
technology they would become
a leading brand.
Weakness As compare to M&S, H&M
buying large volumes that lead
to overstocking, but after that
M&S had backdropped of
pursuing old techniques more
than following that increase
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they lead to lower of already
affordable product price.
different aspects such as time,
money etc.
External and internal influences on M&S decision making
As per according to Chang (2016), changes in government rules and policies M&S must
change their entire business functions and strategies that impact on their growth and decision
making process. They already have some policies under their management structure that these
changes pressure them to implement all the modification according to rules and regulation. On
the other side sudden changes in environment dirctly impact on organization trading process,
they have to understand that factor and should change their the whole production procedure.
Firm need to produce eco-friendly products for that they have to make new and better plans.
Rising competition in market place company has to adapt new technologies and apply different
methods that help to beat its competitors in marketplace.
CONCLUSION
This report discuss about business environment and their impact on business growth and
success. It includes different types of organizations such as private, public and voluntary that
have different and various functions. With the help of PESTLE analysis this presentation reflect
business environment of Marks and Spencer. Although a lot of factors affect their business for
that they make changes in their business structure and take right decision. In this report has been
concluded that by conducting SWOT analyze company get to know about their weakness,
strength and other things that they will improve or develop more by making new strategies or
plans.
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