Business Environment and Strategic Management

This assignment requires students to analyze various business environment factors affecting productivity and efficiency of European life insurance companies, as well as the entrepreneurial perception of SME business environment quality in the Czech Republic. Students will also study business models, strategic management, and environmental assessment systems, including SWOT analysis and business intelligence. The assignment aims to understand how businesses respond to institutional uncertainty and develop strategies to cope with the African business environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART-1............................................................................................................................................1
Covered in ppt. ......................................................................................................................1
Part-2......................................................................................................................................1
P4 Positive Impacts of Macro Environment on Business during conducting business
operations...............................................................................................................................1
P4 Negative Positive Impacts of Macro Environment on Business during conducting business
operations...............................................................................................................................2
P5 SWOT model analysis of ,M&S......................................................................................3
Strengths............................................................................................................................3
Weakness...........................................................................................................................3
Opportunities.....................................................................................................................4
Threats...............................................................................................................................4
P6 Strengths and weaknesses interrelate with external macro factors...................................4
Conclusion.......................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business environment includes the set of rules regarding the internal as well as external
and these factors affect the business growth and its decision making process. The business
should conduct his activity accordingly and that also helps in improving its efficiency and
growth and make the business smoother and easier (Lewin, Massini and Peeters, 2011 ). The
present report is based on Mark and Spencer company who is a major multinational company
under retail business and having specialisation in selling clothes, home related products and food
items. The company emphasising and known for its quality related products and knowing for its
reputation and focusing down towards the customer satisfaction in way of providing needs and
offering them fair value for the money which the customer spent on the product. The aim is to
offer the quality of services to his clients and improving its services day by day and that directly
helps down the company in enhancing there marketability and sustaining its growth. It also
covering its objective , size and legal structure and also describing that how the company raising
its objective by covering down all those aspects and achieving its mission and vision statements.
PART-1
Covered in ppt.
Part-2
P.3 Relationship between organisation function and objective
Organisation function is most important to increase the level of performance and
maintained the growth rate. In such a way organisation function is help to achieve organisation
objective and increase the level of execution. Structure function are production, sale, finance
and human resource. All such are the function of organization and objective are increase the sale
volume and profit of organisation. In this way, organisation function is help to achieve objective
for example organisation objective is increased sales, so marketing department is set a proper
strategy to achieve result. Use more and more promotion of the product Is help to maintained the
profit rate in market. It is help to fulfilled the objective of administration. Organisation function
is most crucial to change the execution level. With the help of organisation role, objective is to
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be achieved. In this way increase productivity is objective of organisation is depended on
production department. It is help to maintained the growth rate in market.
P4 Positive Impacts of Macro Environment on Business during conducting business operations
 Political factors:Political factors arising during conducting out business operations
identifies the position regarding the business and its changes and it improves the M&S
position while conducting activity and company will keep themselves aware to know
about the changes due to political factors such as changing policies, political conditions
and shifting its focus towards it and adopt it to complete work faster and better (Zeng, Li
and Duan, 2012). Example:a company shifting its focus towards the go green policies
and follow ethical norms.
 Economical factors:It identifies the situation regarding the changes under interest rates,
inflation, currency rates and M&S identifying all these factors before carried out
production activity and considering all such factors while doing business (Adebisi, Azeez
and Oyedeji, 2016).
 Social factors:M&S should considering out all the changes while carrying out the
production al work and analyse all the situation and identify the trends and changes under
demographic condition and meet the needs of the consumer as per the requirements and
focusing the situation which arising the country which is different according to the taste,
fashion and preferences (Nikolaou and Evangelinos, 2010).
 Technological factors:The macro environmental analysis will identify the changes that
made under technology and M&S carried down their activity by using more advanced
technology and shifting its focus towards it and upbringing new and rapid technology to
work faster and better and completing its object in more rapid and productive way.
 Environmental factors:The macro environmental analysis will assess down the changes
under the environmental transactions which will give impact to M&S industry
(Osterwalder and Pigneur, 2010). Such as decrease in market shares, change in
disposable income and so on.
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 Legal factors:It makes themselves aware in field of laws and changes that would be
arising and trends in form of compensation, disputes and its liability and settled them in a
right manner during conducting out operations.
P4 Negative Positive Impacts of Macro Environment on Business during conducting business
operations
 Political factors:It affects the M&S company because the certain political factors
constructing under this in form of policies, risk identification and control and strictly
company have to follow these regulations while conducting there operations and if
company not follows the same, the penalty will be imposed and also in some parts the
company is been forced to close there operations (Rachid and El Fadel, 2013).
 Economical factors:These factors also affected its sales because as watching down the
living conditions and habitat of most of the people they don't have required money to
spend down on luxury products, so it seen that as the economic conditions changes it
affecting the purchasing power of the people.
 Social factors:In most of the parts M&S not been able to fulfilling down the requirements
of the users. Because, due to change in social and demographic conditions factors such
taste, fashion and preferences of the people the requirements is also changes and it
depends upon the social factors and conditions which creates in the market (Caiazza,
Shimizu and Yoshikawa, 2017).
 Technological factors:The technological factors are also affected the operations under
M&S because due to change in demand of customers and to fulfils those,the company
have to adopt down a new technology every time and sometimes, it is really been difficult
for the company to carry out such technological changes under such complex situation.
 Environmental factors:The M&S organisation have to change its way some time while
producing its product and regarding its manufacturing, it all depends upon the
environmental and climatic al conditions which been arising under the course of business
( Sekaran and Bougie, 2016).
 Legal factors:The legal factors such as change in taxation policies, industrial policies and
rules regarding government also affects its culture and working conditions and
unnecessary intervention made by government during production al activity affects M&S
business.
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P5 SWOT model analysis of ,M&S
Strengths
 Most powerful brand in field of retail sector
 It known for its quality of goods, durability of goods and services which made available
to there customers (Self and Wu, 2012).
 Large number of outlets acrossed the various parts of the world.
 Value been driven out in terms of money.
 It has their own tags on product.
Weakness
 Product costing is not similar, it been changes according to situation and changing due to
technological factors.
 Strong competition from other competitors under retail brand industry
 Changing under the policy and laws affect M&S working conditions.
Opportunities
 Creating their own websites where anyone can visit it easily (Teece, 2010).
 Increasing market segmentation by way of increasing its branches and developing its
business.
 Bringing new segments time to time which helps in increasing more profits (Camillus,
2016).
Threats
 Heavily discounting providing by other retail companies as compared to M&S will be a
threat for them (Wheelen and Hunger, 2011).
 Governmental and industrial policies which been prepared have to followed by M&S
otherwise they have to keep themselves ready for penalty.
P6 Strengths and weaknesses interrelate with external macro factors
In order to analysing down the environment relating to the business, it considered that the
company should analyses the relationship between internal as well as external factors and also
analysing it and affecting its decision making process ( Wirtz, Schilke and Ullrich, 2010). From,
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this it has been seen that the M&S have to face down the various challenges to achieve its
strength and competitiveness in the retail market. The strength positively impact on economic
factors and provided support to the company to develop down new product and expand its sales
under retail sector. Moreover, the technical factors describe that M&S utilising the technological
factors and satisfying the needs of the customer and promoting its retail business and attracting
new customers across the nations by leaving positive impact on there minds and promoting there
product by way of advertising it (Yuan, 2013). Under,economic factors it analyses that due to
change in currency rate and fluctuations under that also made a huge impact on company's
activity and legal factors such as governmental rules and industrial rules also affect the M&S
activity and therefore, company have to applied down various plans and procedures and adopted
down various strategies to eliminate the threat which arises during course of business regarding
pricing of products. The company using the price controlling policy and reducing its prices and
by this way they retain its customers.
Conclusion
It can conclude that the business environment plays a vital role during conducting its
operations and carrying its operations in more significant way and achieving down the purpose
and meet out its goal and make the business more efficient and effective so that helps in
generating more productivity. Every, business which been regulated having its own objectives
and requirement and to meet those requirements they should performed accordingly by knowing
its mission and vision statements. It also been said that there are certain business related factors
that affect the retail business such as M&S business. The company can meet out his needs and
enhance its operations only if it considered both the factors in form of internal and external and
applying in such a way to overcome out of those weaknesses and threats.
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REFERENCES
Books And Journals
Adebisi, S. A., Azeez, O. O. and Oyedeji, R., 2016. Appraising the Effect of Boko Haram
Insurgency on the Agricultural Sector of Nigerian Business Environment. Journal of
Business Systems, Governance & Ethics.11(1).
Caiazza, R., Shimizu, K. and Yoshikawa, T., 2017. Cross‐Border M&A: Challenges and
Opportunities in Global Business Environment. Thunderbird International Business
Review.59(2). pp.147-151.
Camillus, J. C., 2016. The wicked challenge of the business environment. International Journal
of Business Environment.8(1). pp.19-31.
Doh, J. P., Luthans, F. and Slocum, J., 2016. The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business:
Introduction to the special issue. Journal of World Business.51(1). pp.1-5.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research.258(3). pp.1082-1094.
Hansen, M. W. and et.al., 2017. Coping with the African Business Environment: Enterprise
Strategy in Response to Institutional Uncertainty in Tanzania. Journal of African
Business. pp.1-26.
Jaakkola, M. and et.al., 2016. Is more capability always beneficial for firm performance? Market
orientation, core business process capabilities and business environment. Journal of
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Kljucnikov, A. and et.al., 2016. The Entreprenurial Perception of SME Business Environment
Quality in the Czech Republic. Journal of Competitiveness.8(1).
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Lewin, A.Y., Massini, S. and Peeters, C., 2011. Microfoundations of internal and external
absorptive capacity routines. Organization Science. 22(1). pp.81-98.
Nikolaou, I.E. and Evangelinos, K.I., 2010. A SWOT analysis of environmental management
practices in Greek Mining and Mineral Industry. Resources Policy, 35(3), pp.226-234.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Rachid, G. and El Fadel, M., 2013. Comparative SWOT analysis of strategic environmental
assessment systems in the Middle East and North Africa region. Journal of
environmental management. 125. pp.85-93.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Self, R.L. and Wu, W.H., 2012. Rapid qualitative analysis of phthalates added to food and
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Control. 25(1). pp.13-16.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
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Wheelen, T.L. and Hunger, J.D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Wirtz, B.W., Schilke, O. and Ullrich, S., 2010. Strategic development of business models:
implications of the Web 2.0 for creating value on the internet. Long range planning.
43(2). pp.272-290.
Yuan, H., 2013. A SWOT analysis of successful construction waste management. Journal of
Cleaner Production. 39. pp.1-8.
Zeng, L., Li, L. and Duan, L., 2012. Business intelligence in enterprise computing environment.
Information Technology and Management. 13(4). pp.297-310.
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