Business and Business Environment (Part 2)

This presentation covers PESTLE, SWOT and interrelation of strength and weaknesses with macro-environmental factors for Marks and Spencer and NHS.

Business and Business Environment (Part 2)

Table of Content
• Introduction
• PESTEL analysis of M&S and NHS
• SWOT analysis of M&S and NHS
 Affecting decision making process
 Interrelation of strengths and weaknesses with external macro factors
• Conclusion
• References

INTRODUCTION
Business environment is consists of several factors such as internal and
external factors that can put positive and negative impacts on the
growth and sustainability of firms. Therefore, it is very essential for
the organisations to make their focuses on these factors so that
effective solutions can be made for overcoming negative impacts of
these elements. Chosen organisations for completing this presentation
is Marks and Spencer and NHS. This presentation will covers
PESTLE, SWOT and interrelation of strength and weaknesses with
macro-environmental factors.

PESTLE ANALYSIS
In current scenario, identification of macro-environmental factors are very
much important because it can affect the whole profitability and
growth of firm in negative manner. Hence, management of M&S and
NHS can use PESTLE analysis as it will helps them in making
valuable decisions for growth and sustainability of firm.

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Political factors: These factors includes political interference, trade
policies, tax duties etc. that can influence overall performance of M&S
and NHS in positive or negative manner. Therefore, consideration of
these factors are very important for Marks and Spencer while
conducting business in different nations. Positive and negative impact
of these factors are discussed in further slides

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Basis M&S NHS
Positive Marks and Spencer is operating its
functions at global level but
corporation tax in UK nation is
remaining constant from last three
years such as 19% that can helps the
firm in making growth of their
business in other nations.
Due to Brexit, legislations of
trade policies were revised in
UK because of this company' s
sales figures were reduced in
marketplace.
Negative Government policies of UK are more
constant rather than other nations
which is beneficial for NHS in
gaining growth and success within
the UK nation.
Government is reducing their
investments in public healthcare
firms which can affect the
growth and sustainability of
NHS in an adverse manner.

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Economical factors: This factor includes economic conditions of a nation and
its influence on overall profitability and growth of firm. Positive and negative
impacts of these factors are given as below:
Basis M&S NHS
Positive Economic conditions of societal
individuals of UK are good as they
prefers quality products for satisfying
their needs which defines positive sign
of economic factors for M&S and its
growth.
Infrastructure development of firm
can improve the profitability and
economic development of nation.
Negative Company is highly dependent on UK's
economic conditions due to which profit
margins of firm in other nations are
reducing regularly.
It also affect an adverse manner such
as unemployment rate can be
increased within the nation that can
reduce the buying power of
customers.

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Social Factors – These factors comprises of needs, wants, preferences of customers that can
affect the sales figures and profitability of organisation in positive and negative manner.
Basis M&S NHS
Positive Due to Digitalisation, company have raised
their profit share up to 7% in UK which
defines positive impact of social factors on
firm.
Nowadays, Citizens in UK nations
are more concerned about their
health that can provide opportunity
to NHS in enhancing their revenue
figures.
Negative Company is highly based on traditional
clothing due to which company is failed is
providing products as per the needs of
customers. Due to this, 22 stores of firm
were closed by the managers in 2018
(Neelankavil, 2015).
Due to lower management
structure, patients does not get
expected medical services which is
affecting the whole profitability of
firm in negative manner.

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Technological Factors – These factors are related with R&D techniques,
advancement in techniques etc. that can impact the sales figures and profitability
of firm in positive and negative manner.
Basis M&S NHS
Positive Company is following each laws
and legislations of each nation
where they are operating so that
growth and sustainability can be
maintained in marketplace.
NHS is a public body so that they
should follow each laws or
legislations of healthcare effectively
for maintaining brand value and good
image in the mindset of customers.
Negative Due to Revised tax duties and
legislations after Brexit, company
has faced high loss figures in
market.
New healthcare laws are formulated
by healthcare department of UK so
that it can lead adverse impact on the
overall profitability.

Trends
Legal factors – These factors includes laws, legislations which are framed by UK
government that should be consider by the company for maintaining growth and
sustainability in market. Positive and negative aspects of this factor are given as
below:
Basis M&S NHS
Positive Company is following each laws and
legislations of each nation where they
are operating so that growth and
sustainability can be maintained in
marketplace.
NHS is a public body so that they
should follow each laws or
legislations of healthcare effectively
for maintaining brand value and
good image in the mindset of
customers.
Negative Due to Revised tax duties and
legislations after Brexit, company has
faced high loss figures in market.
New healthcare laws are formulated
by healthcare department of UK so
that it can lead adverse impact on
the overall profitability.

Trends
Environmental factors – Factors that are related with environment of a particular
place such as climates can posse either positive or negative impacts on the growth
of firm. Positive and negative impacts of these factors on M&S and NHS are given
as below:
Basis M&S NHS
Positive Company is following Environmental
act, 2010 which is formed by UK has
made improvement in the sales figures
of firm.
NHS is following Green policies
of government due to which
company's brand value or
sustainability is maintained.
Negative M&S is a multinational organisation
but they have to made some policies
related with waste management so that
profitability can't be affected in negative
manner.
Not consideration of
environmental laws can leads
the firm towards downfall
position in market.

Swot analysis of M&S
Strength
 Provide high quality products is the major strength for M&S that makes
it successful.
 M&S try to make customer more comfortable by providing proper
shopping environment to the customers.
Weakness
 Decreasing sales due to non trendy stores and bad publicity that
increase the business rates and higher staff cost.
 Increasing cost due to manual working because M&S following old
techniques rather than adopting new techniques.

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Opportunities
Developing internet technology provide an opportunity to increase product
demand in online market.
Develop innovative clothing segment by increasing outlets all over the
world will increase the business.
Threats
changing taste and preference of the customers towards clothing.
Great competitor available in the market in comparison to M&S like
Zara,united col ors of Benton, Tommy high-flier etc.

Swot of NHS
Strength
Range of medical services are provided by firm which makes its strengthen
in marketplace.
Loyal and Dedicated staff workers are providing maximum contribution in
healthcare services of organisation.
Weaknesses
Less funds are provided by government which have restricted the firm in
improving healthcare services
NHS is a public health organisation but due to poor management structure
company is not getting attraction of large number of patients.

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Opportunities
Company can introduce online appointment and prescription about
treatment via online methods which will helpful for firm in improving its
brand image in healthcare sector.
Segmentation of healthcare services with desired employees can provide
opportunities of expansion of business operations.
Weaknesses
Due to less support from the government company's profitability can be
reduced in marketplace
Tough competition can be faced by private healthcare organisation that can
reduce the brand image and revenue figures of firm.

Influence of Swot in decision
making
All organisation have target that include creating a sustainable competitor
advantage over their rival. This require organisation to formulate effective
strategies that will help to grow. An effective strategic decision making
depends on the organisational internal strength, weakness and external
opportunities and threats analysis. Every business must utilize all its
strengths, improve weaknesses and protect against their threats.

Interrelation of strengths and weaknesses
with external macro factors
The interrelation of strengths and weakness with the macro external factors is
discussed below which can be used by the managers of KFC as discussed
below:
POLITICAL- In this factor various government policies do come where it do
checks whether government is stable or not and if not then it will directly
impact on the company. The main strength of an organisation is they
have almost 1000 and that is just because of political stability which one
of the main strength. When it comes to weaknesses, thy are unable to
handle most of the store in systematic manner.
ECONOMICAL- The main strength of organisation is the that are delivering
the products to customer at minimum interest rate. When it comes to
weaknesses, that they are lacking the experience employees the company
which is creating negative impact on a company.

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SOCIAL- The main strength of a company is that they are being able to
deliver health environment for customer while shopping with M&S. When
it comes to weaknesses, that are unable to do better advertisement which
has increased the overall cost of a company and even it has a negative
impact too.
TECHNOLOGICAL- The main problem of the company is that they are
unable to adopt any of the new techniques which shows that how weak the
organisation is in current scenario. While talking about the strength
company has started e-wallet system which has been providing better
result to M&S.

Conclusion
From the discussed informations, it has been concluded that determination of
internal and external factors are very important as they helps the company in
effective decision-making. Along with it, for determining these factors in
effective manner company can conduct PESTLE or SWOT analysis.

REFERENCES
Adeoye, A. O. and Elegunde, A. F., 2012. Impacts of external business
environment on organisational performance in the food and beverage
industry in Nigeria. British Journal of Arts and Social Sciences. 6(2).
pp.194-201.
Andersson, U., Forsgren, M. and Holm, U., 2015. Balancing subsidiary
influence in the federative MNC: A business network view. In
Knowledge, Networks and Power (pp. 393-420).
Belás, J. and et. al., 2015. The business environment of small and medium-
sized enterprises in selected regions of the Czech Republic and Slovakia.
E+ M Ekonomie a Management.
Chang, J. F., 2016. Business process management systems: strategy and
implementation. Auerbach Publications.

THANK-YOU