Business and Environmental Analysis

The provided document is an assignment that requires students to analyze the business environment, including internal and external factors that impact organizational performance. The assignment also involves case studies on business and environmental topics, such as macro-environmental forces, business ethics, and innovation in open environments. Students are expected to research and apply knowledge from various sources, including academic journals, books, and online resources.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1............................................................................................................................................1
P2............................................................................................................................................1
P3. Relationship in between functions of various organizations............................................1
TASK 2............................................................................................................................................4
P4. Positive and negative impact of macro environmental factors upon business operations4
P5. Internal and external analysis of organization to identify strengths and weaknesses......5
P6. Strength and weakness interrelate with external factors..................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is a term which covers all the essential factors which have a
greater impact on particular enterprise in every manner. In fact while establishing any business
an entrepreneur must consider indispensable resources or available elements which influence
success of a company. Basically business environment is mainly divided into two parts macro
and micro which extended across national boundaries. This report is all about various types of
organizations by highlighting their size and scope for understanding environment of enterprise.
(Ahmed, Aamir and Ijaz, 2011). Instead of all this, report also throw lights on strength and
weakness of business environment for implementing various effective strategies for overcoming
the existing barriers. Apart from this report also consist of leading organization named as Marks
and Spencer popular for its trendy clothes. Therefore various internal factors are employees,
stakeholders, customers whereas external factors are political, technological, cultural, socio-
cultural and economical. At last, report is all about essential role played by surrounding in
fulfilling the demand of foreign and domestic customers by considering various mandatory
elements.
TASK 1
P1
Covered in PPT
P2
Covered in PPT
P3. Relationship in between functions of various organizations
Marks and Spencer is a British multinational retail organization which is popular for its
highly qualitative products and on time services which attract millions of customers (Auzair,
2011). Basically it specialised and masters in a selling clothes and household products across
national boundaries by fulfilling the demand of various consumers. Main objectives of
organization are mentioned as below:- To offer creative items: - Firm is trying to introduce or launch new and attractive
clothes with best quality as fashion trends keep on changing and customers need to be
provided with the latest fashion.
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 To fulfil the choices of society: - M&S considers the tastes and preferences of available
customers and design their products according to them so that sales can be maximised. To get expanded: - Organisation wants to keep on expanding their business over
national boundaries by developing export and import activities to cover the market
across boundaries (Barnett and Salomon, 2012).
 To satisfy the customer needs: - Assessment of customer needs is one of the significant
objectives of firm along with making efforts to solve the same within minimum
duration. It means different customers have distinct demands according to their culture,
interest and choices. Therefore, they need to be provided with their preferred items in
order to satisfy them.
Quality enhancement: - They just want to improve their quality of products and need to
be focussed on it for satisfying different customers. As education and awareness among public
has raised to a great level, this has increased pressure on company to maintain the effectiveness
in their output. Customers before buying any particular product compares same with others in the
same field and therefore, it is necessary that domestic commodity is capable of being selected
over other various alternatives.
 Profit maximization: - One of the main objectives of Marks and Spencer is to generate
maximum revenue by minimizing their losses. Marks and Spencer is a very large retail company whose main aim is to provide
best product and services to their desired consumers (Boons and Lüdeke-Freund, 2013).
Basically there are number of functions which is perform by referred company to
perform their task and activities in an effective manner. Therefore functions of
organization are divided into various department which are mentioned as below:- Finance: - Capital is a backbone of whole industry either small and large because all
the activities are based on monetary terms. It is very essential to generate maximum
revenue by maintaining the proper records of a financial statement (Borio, Drehmann
and Tsatsaronis, 2014). One of major responsibility of this department is to estimate
future cost by identifying need of fund and try to control extra wastage of a company.
Marks and Spencer wants to record all the essential funds which is invested in
enterprise.
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 Sales and marketing: - Main motive of a this department is to increase their sales by
capturing the minds of millions of consumers. Basically they are liable to analyse the
current market situation by understanding the strategy of their competitors. Managers of
marketing perform various essential functions for example promoting products and
services across national borders by adopting various useful tools and techniques. Human resource development: - According to this department they are liable to perform
various essential functions for example organizing , staffing, controlling and
coordinating. Apart from this main motive of a HR department is to appointing a right
person at a right job on the basis of their talents and skills. Therefore they need to
organize overall organization in a effective manner by filling the vacant position of a
company (Bryman and Bell, 2015). Administration: - All the task and activities are
managed and controlled by this department which means they are liable to conduct
various activities by providing sufficient fund. In other words administration of a Marks
and Spencer trying to motivate their employees towards organizational goals by
supporting them mentally and financially. Research and development: - Marks and Spencer wants to gather accurate information
and data which is very useful in expansion process of a existing company. In other words
they implement this technique to modify its current products by considering necessary
factors for example taste and preferences of a various consumers.
 Manufacturing department: - One of the major functions of an organization is to
produce qualitative products to satisfy the customers with their unique and creative minds
(Chang, Hughes and Hotho, 2011). According to this function, they manufacture
attractive and catchy goods on the basis of consumers demands and taste.
Organizational chart of an enterprise is classified into various parts for explaining various
department and its works. Along with this it also shows positive and negative relationship
between higher authority and lower as well as different staff members. Therefore various
functions of organizational chart is described as follows:-
 Hierarchy :- Every member of an enterprise needs to answer someone for example
manager of their department. An employer may have their head to whom he/she have to
report their daily work. Therefore a perfect chart consist of hierarchical system which
assist every member where they fit in hierarchy of decisional process.
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Thus powers are distributed amongst various persons and as per their specialization by
managing director which shown in this figure:-
(Source:- Organizational chart, 2017)
Apart from this, Marks and Spencer performs all these major functions to run their
business smoothly by attaining its goals and objectives within the given time frame.
TASK 2
P4. Positive and negative impact of macro environmental factors upon business operations
Marks and Spencer is a leading clothing retailer as well as food retailer having its
branches at international level with 800 stores in more than 30 nations across national
boundaries. Due to its broad concept they are very much influence by external environment
which have a grater impact on their business directly or indirectly. Basically macro factors have
a direct impact on Marks and Spencer because it is uncontrollable which is very difficult to
determine various elements. In fact it is very indispensable to manager of a company to analyse
its affect for implementing various strategies to overcome their problems and obstacles (Chavis,
Klapper and Love, 2011). Therefore, for understanding the essential impact on company by
macro surrounding they need to conduct an assessment of PESTLE which is mentioned below:- Political factors: - According to this, governing bodies have implemented number of
rules, regulations, norms and beliefs for protecting the sellers and buyers from
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Illustration 1: Organizational chart

exploitation or any kind of cheating. Therefore, Marks and Spencer needs to plan in a
proper way by considering rules of central government which are to be complied with.
Economic factors: - In the current situation, economy of UK is very much uncertain due
to emergence of new laws and rules due to Brexit which affect the overall industry.
Along with this, gross domestic product of firm is affected by economic factors due to
eminent role played by it (Chesbrough, Vanhaverbeke and West, 2014). Social factors: - Marks and Spencer focuses on the choices of whole society and
designs their products according to them because they are the end users of goods and
services. They believe in manufacturing goods by considering individual tastes and
preferences which is one of the major factor of production. Mainly satisfaction of
society is a reason behind success of whole enterprise. Technological factors: - Emergence of advanced technology improves the current
strategies and policies of a company which are very much useful in completing the tasks
and activities within minimum time period (Crane and Matten, 2016). Therefore, Marks
and Spencer adopted new and innovative techniques for implementing creative ideas for
raising the standard of employees as well as whole company. Legal factors: - There are number of laws amended by legal bodies to protect the rights
of employees as well as customers. In fact, main motive of this factor is to create a
surrounding free from any kind of discrimination and inequality. Therefore, legal
authorities have enacted various laws which must be considered while establishing a
successful business.
 Environmental factors: - External surroundings have a greater impact on Marks and
Spencer directly and indirectly in different ways due to their eminent role played
towards the attainment of goals and objectives. Apart from this, all essential resources
are acquired by environment only. For example: raw material, labour, land and building
or plant and machinery. Along with this, external surrounding influences the success of
company in different manner due their broad concept (Demil and Lecocq, 2010).
P5. Internal and external analysis of organization to identify strengths and weaknesses
Marks and Spencer is a international brand expanded over the seas by having various
visible strength and weakness which affect overall internal environment of a company in various
manner. Basically, SWOT analysis is very helpful in identifying hidden obstacles of enterprise
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which affect its success. Main motive of this technique is to resolve hidden problems of a cited
company which are mentioned below :-
Strengths: - One of the major advantages of company is that their products are of high
quality which differentiate them from their competitors existing in the marketplace. In fact,
Marks and Spencer believes in satisfying domestic and foreign customers both with their high
quality goods and services (Dong, Wu and Hou, 2009). Apart from this, they also believe in
creating a friendly environment and relations in between higher and lower level. Various other
strengths of company are:-
1. Expanded across national boundaries
2. Designer products which attract millions of consumers
3. Availability of substitute. Weaknesses: - Due to large number of organizations,
there are number of invisible weaknesses which affect the success of company in
various manners. Some of them are mentioned as below :-
1. Inappropriate promotional techniques which decreases the sales of company
2. Due to manual records, firm generates maximum expenses which affect their profits
3. High price Stressful environment demotivate employees of the organization (Edquist,
2010) Opportunities: - Increase in exchange of goods and services at international
level emerges the chances of raising revenue for company. Apart from this, there are
number of opportunities available which are stated as below :-
1. Expansion of existing branch across borders
2. Emergence of innovative ideas and creative minds motivate Marks and Spencer to
enhance their product’s features and quality
3. They have across 21 million consumers visiting their stores per week
4. Enhance their exiting strategies by getting inspired by their competitors. Threats:
- Major threat for firm is advancement of technology and change in customer’s
tastes or preferences. Basically, it affects the success of organization in various
ways. For example: decrease in sale due to introduction of creative products.
After assessment of SWOT, an organization gets aware about their advantages and
disadvantages as well as try to overcome all the existing barriers faced by company. One of the
major benefits of this tool is to protect overall industry from competitors and useful in improving
their difficult circumstances (Grimpe and Kaiser, 2010). Apart from this, it is very useful in
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identifying the upocomingexisting risks and helpful in controlling the same within minimum
time period. At last, after analysing this, it has been understood that SWOT is an effective
method of profit maximization.
P6. Strength and weakness interrelate with external factors
SWOT and PESTLE both the analysis is very much effective and useful for Marks and
Spencer because is helps in identifying micro and macro environment which plays a very
eminent role in attaining the goals and target of a company in a minimum time period. Internal
and external factors are interrelated with each other due to their role and responsibility towards
referred enterprise. If there is any reform in demand of individuals then operational department
of a Marks and Spencer must be affected due to its broad concept with complex nature (Helms,
and Nixon, 2010). Basically both the terms are interlinked with each other because of their vital
role played in an organization SWOT is mainly consist of all the factors which affect business
internally whereas PESTLE is a term which consist of various external elements or rules and
regulations enacted by governing bodies.
Objectives of SWOT is different from PESTLE which is mentioned below :-
 Internal factors wanted to resolve all the inner issues of customers, suppliers, employees
whereas external consider all the norms and beliefs set by government for creating a
environment free from any discrimination.
 Improving current problems and obstacles existing in an organization.
 Prices of a product is very much affected due to change in a factors.
 Helpful in resolving hidden problems and issues.
 Allocation of essential resources for manufacturing innovative products.
 Collection of accurate data and information by conducting research programs.
 Appropriate method of hedging risk (Hoang and Rothaermel, 2010).
 Estimating future cost.
All these above points shows an effective relations with external and internal
environment due to their role and responsibility towards success of organization. On contrary to
this, it has been understood that both the factors are very much indispensable for running either
small or large enterprises. According to above analysis it has been proved that both are
interrelated with each other in different manner which affect organization success because these
tools are helpful in planning process as well as decision making process.
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In additional, SWOT and PESTLE gather necessary information and data which is useful
in implementing an effective strategy for satisfying the need of customers demands. Therefore
this technique is used by company for understanding the reformation in a taste and preferences of
a customer or overall society by conducting assessment process (Jung, Kim and An, 2011).
CONCLUSION
From the above report it has been concluded that internal and external environment is
very much important for overall enterprise in achieving their goals and targets in a minimum
time period by fulfilling the demand of their customers. In fact report is all about different types
of available organization for example public, private, voluntary or legal companies due to their
roles and responsibility towards society as well as whole enterprise. Therefore they want to
understand the functions of various micro and macro environmental factors which have a greater
impact on overall enterprise due to their broad concept with complex nature. This report is all
about indispensable role of internal and external factors in success of one of a multinational
organization named as Marks and Spencer . Basically this enterprise is famous for its qualitative
products which attract numbers of consumers by considering various essential environmental
elements. At last it has been understood that SWOT and PESTLE plays a very eminent role in
resolving the existing problems by hedging the risk or challenges faced by organization.
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REFERENCES
Books and Journals
Ahmed, I., Aamir, M. and Ijaz, H. A., 2011. External factors and entrepreneurial career
intentions; moderating role of personality traits. International Journal of Academic
Research. 3(5).
Auzair, S., 2011. The effect of business strategy and external environment on management
control systems: a study of Malaysian hotels. International Journal of Business and
Social Science. 2(13).
Barnett, M. L. and Salomon, R. M., 2012. Does it pay to be really good? Addressing the shape
of the relationship between social and financial performance. Strategic Management
Journal. 33(11). pp.1304-1320.
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-
the-art and steps towards a research agenda. Journal of Cleaner Production. 45. pp.9-19.
Borio, C., Drehmann, M. and Tsatsaronis, K., 2014. Stress-testing macro stress testing: does it
live up to expectations?. Journal of Financial Stability. 12. pp.3-15.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Chang, Y. Y., Hughes, M. and Hotho, S., 2011. Internal and external antecedents of SMEs'
innovation ambidexterity outcomes. Management Decision. 49(10). pp.1658-1676.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Chesbrough, H., Vanhaverbeke, W. and West, J., 2014. New frontiers in open innovation. OUP
Oxford.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Demil, B. and Lecocq, X., 2010. Business model evolution: in search of dynamic consistency.
Long range planning. 43(2). pp.227-246.
Dong, M., Wu, C. and Hou, F., 2009. Shortest path based simulated annealing algorithm for
dynamic facility layout problem under dynamic business environment. Expert Systems
with Applications. 36(8). pp.11221-11232.
Edquist, C., 2010. Systems of innovation perspectives and challenges. African Journal of
Science, Technology, Innovation and Development. 2(3). pp.14-45.
Grimpe, C. and Kaiser, U., 2010. Balancing internal and external knowledge acquisition: the
gains and pains from R&D outsourcing. Journal of management studies. 47(8). pp.1483-
1509.
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Helms, M. M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of
academic research from the last decade. Journal of strategy and management. 3(3).
pp.215-251.
Online:
Business and the environment. 2017. [Online]. Available through:
<https://www.imperial.ac.uk/environmental-policy/msc/msc-environmental-technology/
options/business-and-the-environment/>. [Accessed on 12th July 2017].
Macro environmental forces. 2017. [Online]. Available through:
<http://www.referenceforbusiness.com/management/Log-Mar/Macroenvironmental-
Forces.html>. [Accessed on 12th July 2017].
Marketing and business environment. 2014. [Online]. Available through:
<http://businesscasestudies.co.uk/business-theory/marketing/marketing-and-the-business-
environment.html#axzz4UbKkZn17>. [Accessed on 12th July 2017].
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