Business Environment Analysis

This assignment provides a detailed report on business environment analysis, highlighting the factors that impact external and internal business operations. It covers the role of market research in effective business planning, the functions of different departments within an organization, including sales and marketing, and the importance of SWOT analysis in identifying strengths, weaknesses, opportunities, and threats. The report also touches on the adoption of updated technologies to capture large market areas and attract customers.

Business and business
Environment

Table of Contents
Introduction.................................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1 Purpose of private, public and voluntary organization and its legal structure.....................................3
P2 Size and scope of M&S and public and voluntary sectors..................................................................4
TASK 2.......................................................................................................................................................5
P3 Relationship between various functions within an organization.........................................................5
TASK 3.......................................................................................................................................................6
P4 Positive and negative impact of macro environment..........................................................................6
TASK 4.......................................................................................................................................................7
P5 External and internal analysis which identify strength and weakness.................................................7
P6 Explain strength and weakness interrelate with external macro factors..............................................8
CONCLUSION...........................................................................................................................................9
REFERENCES..........................................................................................................................................10

Introduction
Business environment refers to two factors which directly or indirectly affects the
external and internal business operations and situations. It is essential for company is to analyze
whole market research in effective manner. This will help in assuming different factors and
barriers which arise within an organization and also try to deal with them. This report is based on
Marks and Spencer firm which is multinational company of UK (Czinkota, Ronkainen and
Moffett, 2011). It has approx. 1433 stores in all over the world and they provide online
marketing services of products and services to their customers. They offer home products,
clothes and food items. The main motive of this report is to understand different types of
organization and its functions that include private, public and voluntary sectors. They will also
examine the interrelationship between external macro factor and SWOT analysis.
TASK 1
P1 Purpose of private, public and voluntary organization and its legal structure
Private organization- Marks and Spencer is private company which is multinational firm
and it is situated in United Kingdom. It offers various types of products and services to their
customers in the large market. They provide branded clothes, food items and home appliances.
The main purpose of this organization is to provide best quality goods and services to their
buyers and also satisfy them. They serve best services with high level standard at reasonable cost
price. They also promote their products and services by doing various types of promotional
activities and functions so that customers will attracts towards their company goods. It has
almost 1433 store in the country and they try to expand their business in other countries which
assist in increasing their growth and profitability.
Public organization- NHS is large public firm which is located in United Kingdom. It is
a public health care system company which operates their business by providing safety and takes
care of needed person in the country (Pulver, 2012). The purpose of this enterprise is to deliver
health care services and facilities with high quality equipments and tools which are best suitable
for their individuals, communities and societies. They provide free services to poor people who
are needed service. It includes treatments, specialty care emergency treatments, regular
checkups, other facilities which are demand by the customers.
Voluntary organization- British Red Cross firm is a non profitable sector which is
situated in United Kingdom. The motive of this fir is to help the poor people of the country who
suffers and help them in emergency time by providing first aids, immediate services, know about
difficult situations, search the relative who are missing, support them in tough time, provide
refugee camps for them. On the other hand the aim of this organization is to motivate people to

give services in voluntary sectors and give donations which assist in safe the common public,
minimum cost and help those people who are in danger.
P2 Size and scope of M&S and public and voluntary sectors
Marks and Spencer- It is the private company which provides various types of goods and
services to their customers in large market. They specially sell home products, branded clothes
and delicious food items. Currently they has approx. 959 stores in all over the world and mainly
they sell food products so it has615 food stores in UK. The firm will became first retailer firm
that make pretax profit which is almost 1 billion. Total they has959 stores in which there are 58
stores are situated in India, 48 stores in turkey, 27 in Greece, 14 in France, 11 in Poland, 17 in
Ireland, and 5 in Spain (Klapper, Lewin and Delgado, 2011). They have approx. 82,904
employees who work for achieving company goals and objectives in effective manner.
NHS- It is public company which provides health services to the people in UK. They
have approx.1.6 billion people who work for them and around 136.7 billion revenue they earn in
a year with extra benefit. They funds in taxation and national insurance contribution is about
98.8% and about 10% they spend in health services which provide to the common people. They
try to expand their business in other countries and their growth rate is also expanding by 1% in a
year. They pay 60% amount to their employees who work for achieving targets and objectives in
proper manner. they also supply drugs and it spend in approx. 20% and rest of the amount is split
among buildings, training cost, cleaning, tools and equipments and catering food products among
all staff members.
British Red Cross- This is voluntary organization which helps poor people who need
services. It is founded in 1870 and it has almost 32500 workers and 3500 staff who work for
welfare of poor people. In the team 12 health care assistant members. At the time of 2014, they
claimed 748 admissions are avoided and spend cost almost 1 billion in the country for providing
better services to their clients (Chow and et. al., 2011). It is non-profit organization which serves
free services to the common people and also provides health care services and other facilities to
the country persons in better manner.
TASK 2
P3 Relationship between various functions within an organization
There are various functions of different departments which are interrelated with each
other that are as under:
 Sales and marketing- It is that department which help in promoting various products and
services among different customers in large market. Marks and Spencer are used this
department for advertise their goods and services to their buyers and earn maximum
profit. The company will analyze whole market and organize campaign for attracting
more and more customers towards their services and items. It is one of most department

which assist in attracting large number of buyers towards their products and services.
They promote their goods by various activities such as events, campaigns, discount
offers, online marketing and door to door selling.
 Research and development- It is that department which help in reasserting and analyzing
whole market areas and segmenting it in different categories. There are various factors
which directly or indirectly affects the business operations and activities in effective
manner (Aterido, Hallward-Driemeier and Pagés, 2011). It also assists in analyzing
competitors information and data which are necessary for the organization growth and
development. This will help in evaluating future financial position of the company and
also examine the total growth of the firm within the large market area. It is that
department where all essential functions and activities are take place that aid an
enterprise for became successful in any way.
 Finance department- This is one of the most important department within an
organization that is necessary for preparing annual budgets and reports that provide clear
picture of company growth and structure (Business Environment. 2017). The main duty
and responsibility of this area is that they manage and maintain whole firm budgets and
cost amount in better manner. They usually decide that in which area they required to
spend only and they get appropriate result by this decision making. Manager of finance
department play an important role for managing and controlling money in right place and
also purchase shares which provide profit to the firm.
 Customer service- This is that department which is necessary for organization. It help in
solving all products and services related problems and issues which ask by customers and
try to solve it in better way. They should provide accurate information to their consumers
about all goods and services which they generally or rarely buy to the particular
company. It is the backbone of each firm which attracts large number of customers
towards their products and services and also convinces them for purchasing only their
enterprise goods. There are various tools and methods which help them in attracting
buyers towards purchase that products and services in better manner. They always
promote their goods by calling customers and tell those products advantage and
disadvantage (Welford, 2013). They are provide effective item which suitable for buyers.
 Production and operation- It is the department which manage and control whole
production and operational areas of the company. They make those products which are
demanded by potential buyers and satisfy their needs and wants for providing quality
goods. The manager also analyze that workers do their work for achieving only target
goals and objectives which are fixed by firm. Also they operate and manage business by
developing effective strategies and policies of making best products and services.
Employee's works on creating innovative item which are never made by anyone at same
time. They develop creative and innovative products and services which easily attracts
large number of customers towards them.
 Information technology- This department plays an essential role for promoting company
products and services. They use various types of sources which attracts international

customers. Managers promote goods by doing online selling, newspaper, magazines,
templates etc (Craig and Campbell, 2012). They search those buyers who willing to buy
their firm products and provide them. This system helps in attracting international
customers and expands their business area in other locations.
TASK 3
P4 Positive and negative impact of macro environment
In an organization, there are positive and negative impacts which arise during performed
in business operational and activities in effective manner. The PESTLE analysis of
environmental factors which directly or indirectly affects firm which is as follows:
 Political- It is that factor which affects external environment of company and it also
impact on business operations and various functions or activities. The government made
different rules and regulations and enterprise will follow them. They develop various
policies, strategies and development plans which help in establish new firm in the large
market (Gecevska and et. al., 2010). It directly affects organization growth rate and
economic rate of country. The government and its authorities function are directly affects
business operations. Each country has different legal laws which have to be followed by
their public.
 Economic- This is that factor which affects business operations of the organization in
direct way. For example, if living standard of an individual in UK will increase it directly
affects their demand and choice of products and services. If a person has more money
than they buy best goods for their family and try to increase their selling amount. There
are various economic factors that include crisis, inflation, value of currency, international
economy etc.
 Legal factors- This is that factors which are different in every country and all the people
must be follow it. It will affects on government plans, policies and strategies in better
manner. If any organization has to perform its functions within the country so that they
must be followed these legal laws in strictly. All the rules and norms of authorities are
always changes by time (Shigang, 2010). It is the duty of every firm is to follow them in
any way. It is important for them to change their company rules and regulation time to
time.
 Technological factor- these are those factor which help in updating latest technologies
and methods of firm in effectively. The organization has to adopt new and fresh tools and
equipments which assist in increasing their growth and profitability. It will play an
important role in gaining attention between competitive market areas and also help in
take top position in that market. This factor aid in reducing extra cost and enhancing
profit amount for the firm. Marks and Spencer also adopt latest and updated technologies
which help in capture large market area and attract more customers towards their
products and services.

 Social factors- It is that factors which always focusing on latest trends and lifestyles of
the people. In every country, there is different culture and fashion of an individual and
each organization has adopted these social changes according to the demand of customers
(Moutinho, 2011). They should analyze buyers demand and try to fulfill their wants and
needs in better manner. It totally depends upon culture, gender, age, behavior, choice of
people.
 Environmental factors- This is most effective factor which directly impacts on business
activities and functions. Firm required maintaining their resources and objects which help
in attracting large number of buyers. They should change their facilities according to the
change in external and internal environment. It affects whole structure of organization in
badly.
TASK 4
P5 External and internal analysis which identify strength and weakness
There are various external and internal factors which directly or indirectly affects the
business operations and its functions. SWOT analysis is internal factors which help in identifying
strength, weakness, opportunities and threat of the firm in proper manner. SWOT analysis of
marks and Spencer are as under:
Strength- It is the one of the leading company which provides branded clothes, food
items and home appliances to their potential customers. They also serve quality products and
services with reasonable rate (Hamilton and Webster, 2015). They have labels which are their
own firm. It has approx. more than 100 stores which are situated in all over the world.
Employees are almost 80000 who work for them to achieving targets and objectives. Marks and
Spencer will offer high quality products and services to their buyers and also develop innovative
goods. Its brand is identified in whole market. There are various types of products which are
offered by them that include vegetables, foods, drinking products, home items etc.
Weakness- They face tough competition in large market is with similar type of company
offered. They required protecting their brand and also make strategies which help in solving
problem relates to fake people. Organization has old tools and techniques which reduces their
productivity and cannot make large profit by selling these products among customers. They
should develop new plans and policies which assist in attracting large number of buyers towards
them.
Opportunities- The firm need to expand their business in other locations and areas that
will help in earning more profit by selling effective goods and services in the market. Firstly they
should make their own website in which they post latest products image, its quality, size, shape,
color and information that understand by customers (Wetherly and Otter, 2014). They also
required capturing new market place and segmenting their buyers and market areas in different

manner. They need to expand their brand in other country like china and India because there are
more customers who wish to purchase their firm products and it will enhance their profitability.
The management required to make effective strategies which help in open new branches in all
over the world and provide different types of products and services to their customers.
Organization should segment market which assist in divide buyers in different groups and easy to
examine their interest and choice and safety demand and wants of each customer. They required
enhancing their techniques which segment whole market and identify potential customers who
willing to purchase specific goods.
Threats- there are many competitors who enter in new market which create tough
competition. If any firm provide discount price items that will directly affects its business
growth. This will reduce customer's volume of the organization and decrease number of
purchasing buyers (Halbert and Ingulli, 2011). They also face some legal policies and plans
which are made by government for the retail stores that directly impact on company growth and
development. The main competitors are TESCO, ASDA and Sainsbury which are also top
companies of retail sector.
P6 Explain strength and weakness interrelate with external macro factors
There are various external factors which examine interrelationship with strength and
weakness of organization which are as follows:
 Political factor- It is that factor which directly affects the business growth and success.
This is external factor which impact on company productivity and profitability in
effective manner (Fernando, 2011). They will follow all rules and regulations which are
made by government authorities.
 Economic factor- The firm will used this factor for understanding economic growth of
organization as well as country that will impact on business operations. If growth rate are
change in country it directly affects on enterprise profitability.
 Social factor- An organization will always analyze latest trend sand fashions which are
change according to the demand of customers. And also firm required to adopt this new
trend for attracting more buyers towards their products and services.
 Technological factor- It is important for company to adopt latest and updated
technologies and methods which help in developing innovative products and goods for
the potential buyers. This will easily gain attention of customers on innovative products
and services.
 Environmental factor- If an external environment will change day by day so it is
essential for fir to also change business environment according to the demand of their
employees.
 Legal factor- Every country have different rules and regulations and it is important for
organization to follow government made rules. The authority will change their laws and
norms so that firm will also change according to them (Robbins, Judge and Campbell,
2010). If any country change their structure and policies so it is essential for the

enterprise to change their internal rules and regulation according to the government
demand.
CONCLUSION
As per the above mentioned report it is concluded that Business environment refers to
two factors which directly or indirectly affects the external and internal business operations and
situations. It is essential for company is to analyze whole market research in effective manner.
there are different department which perform functions within an organization that include
finance, production and operation, customer service, sales and marketing, information
technology and research and development. Sales and marketing is that department which helps in
promoting various products and services among different customers in large market. Marks and
Spencer are used this department for advertise their goods and services to their buyers and earn
maximum profit. In an organization, there are positive and negative impacts which arise during
performed in business operational and activities in effective manner. Marks and Spencer also
adopt latest and updated technologies which help in capture large market area and attract more
customers towards their products and services. There are various external and internal factors
which directly or indirectly affects the business operations and its functions. SWOT analysis is
internal factors which help in identifying strength, weakness, opportunities and threat of the firm
in proper manner.

REFERENCES
Books and journals
Czinkota, M., Ronkainen, I. A. and Moffett, M. H., 2011. International business. Wiley.
Pulver, S., 2012. Business and the Environment.
Klapper, L., Lewin, A. and Delgado, J. M. Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp.
108-123). Palgrave Macmillan UK.
Chow, A.T. and et. al., 2011. Broadband network with enterprise wireless communication system
for residential and business environment. U.S. Patent 7,944,948.
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic
Development and Cultural Change. 59(3). pp.609-647.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Gecevska, V and et. al., 2010. Product lifecycle management through innovative and competitive
business environment. Journal of Industrial Engineering and Management. 3(2).
pp.323-336.
Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
in China. Asian Social Science. 6(11). p.64.
Moutinho, L. ed., 2011. Strategic management in tourism. Cabi.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Wetherly, P. and Otter, D. eds., 2014. The business environment: themes and issues in a
globalizing world. Oxford University Press.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Fernando, A.C., 2011. Business environment. Pearson Education India.
Robbins, S. P., Judge, T. and Campbell, T. T., 2010. Organizational behaviour. Financial Times
Prentice Hall.
Online

Business Environment. 2017. [Online]. Available through:
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featuresmeaningimportanceobjectives-porters-model>. [Accessed on 23th October 2017].