Business and Business Environment - Assignment

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Covered in PPT......................................................................................................................1
P2 Covered in PPT .....................................................................................................................1
TASK 2............................................................................................................................................1
P3 Interrelation between different organisational departments and their link to objectives.......1
TASK 3............................................................................................................................................2
P4 Positive and negative effects of macro environment.............................................................2
TASK 4............................................................................................................................................5
P5 Internal and external analysis of particular organizations.....................................................5
P6 Strengths and weaknesses interrelate with external macro factors........................................6
CONCLUSION ...............................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Business environment consists to be the most essential element of each business
Enterprises as the whole activities of business are carried out according to be organized business
plan as to implementation of all operations in well planned and effective manner. Marks and
Spencer is the chosen an organization for this particular report the company mainly deals in
luxury food and home products and clothing. In this given task, examine about the different
purposes and sorts of associations. The extension and size of scope of various types of
association will likewise be specifying in this report (Cai and Yang, 2014). Interior and outside
the two variables influences on business condition in a positive and negative way. This report
will be useful in comprehend relationship among different elements of an association and they
are worried about the authoritative structure and in addition goals. Qualities and furthermore
shortcomings both are interrelate with the full scale factors.
TASK 1
P1 Covered in PPT
P2 Covered in PPT
TASK 2
P3 Interrelation between different organisational departments and their link to objectives
Each small as well as large business and prices are having their own aims and objective
and on which all activities of firm are based it is required for each business Enterprises to
implement effective relationship within the each and every functions of firm as to completion be
targeted to kohl’s in most valuable and effective manner (Gebauer, Paiola and Edvardsson,
2010). Marks and Spencer is a large private limited company which operates its business
operations all over the globe and the company deals in different sectors like clothing luxury food
items and Home items so it is essential for organization or its higher authority to maintain a good
relationship among various organizational functions as to attaining higher growth. As a large
business association Marks and Spencer has categories their business operations in different
departments as to maintain appropriate interrelationship among all the departments and which
are described as under:
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Marketing Department: this consists to be a most important apartment as it is formed for
enhancing sales and revenue of firm at Marketplace. At the time of producing a new product
Marks and Spencer is mainly concerned towards analyzing the new market Trend and customers
needs and this create value in satisfying the needs and wants of people at market area. This
department is incorporate on creating promotion and marketing for promoting organisational
products and services at market place. All the departments of an organisation are interlinked wih
each other as the head of marketing department take a specified amount of funds from finance
department in respect to implement all the marketing activities or campaign in effective manner.
Finance department: this is also an element of form and it has a direct connection with
monetary transaction of form it is essential for an organization to have an effective and good
financial background as to implement all business operations in best possible manner this section
is effective in providing funds to the each department of firm as two conducting all operations in
effective manner in this department various activities are involved such as arrangement of funds
creation of assets reducing liabilities etc (Halbert and Ingulli, 2011). The major obligation of this
department is to making appropriate arrangement of funds and capital in respect to conducting all
business activities in effective manner. As a large business enterprises it is essential for Marks
and Spencer to manage funds and capital as appropriate amount of funds is required or each
activity of firm like funds are necessary for adoption of new machinery, research and
development activities as to determining the choice and preferences of customers and training
and development activities etc.
Production: This consists to be the primary department of farm as the growth and success of
firm are based on its production function. It refers as a process in which planning directing
controlling are involved. As a large retail company Marks and Spencer is widely concerned on
producing high quality products and services in respect to maintaining its effective image in the
mind set of customers. This considered to be the core department of the firm as the whole
production is depend on the activity of production department. As a well reputed company
Marks and Spencer is concern on analysing the choice and preference of customers in order to
producing goods and services as per their need which helps the firm in satisfying their needs and
wants. All the departments of an organisation are connected with each other in terms of taking
potential help. Moreover for making appropriate production company needs a specified amount
of funds and capital which mainly provided by the finance department to the production
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department so that appropriate machinery and raw material can be arranged within the work
place.
Human resource: this department is mainly focused on increasing the strength of employees
within the workplace as to improvising the operations of farm the department of human resource
as involved in various activities of firm such as managing controlling directing etcetera the major
motive of Human Resource Department is to hire well skilled and educated people at workplace
in respect to developing business operations at Wide area of market. The growth of the Marks
and Spencer is based on the performance of highly skilled and talented employees. For recruiting
highly skilled and talented people HR department takes help from marketing department as to
making proper advertisement for the requirement of an applicant for a vacant profile.
TASK 3
P4 Positive and negative effects of macro environment
Macro environmental factors are consisting to be an essential element of each business
firm and have a huge influence on the growth and development of firm (Hamilton and Webster,
2015). PESTLE analysis is the best way to analyze the factors of macro environment within
Marks and Spencer, the essential element of macro environment are described as below:
Factors Meaning Positive Negative
Political Under this, all policies
are developed through
United Kingdom. In
addition to this, if
government will formed
new legislation as well
as policies for
manufacturing products
then it will have affect
on activities of business
firm.
Company can attain a
positive and competitive
image at market place
through following the
norms and policies of
government.
It is hard for an
organisation to
implement all changes
at regular basis as it has
a huge influence on the
operations of Marks
and Spencer.
Economical Under this, if an
economy will be go
From inflation will
upgraded then reserve
On the off chance that
condition will change
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down and up then it can
affect on development
and also offers of firm.
In this way, it is
essential for Marks and
Spencer to decide every
one of these
progressions which
occur at business
condition
stream will be expanded
and bring more cash
(Hilton and Platt, 2013).
on ceaseless premise, at
that point there will be
trouble looked through
this firm with respect to
dealing with every one
of these alterations.
Social This is related to the
social environment, as
the needs and wants of
people are changed as
per the change arises in
the market trend. It is
essential for Marks and
Spencer to provide
satisfactory products and
services to their
customers in respect to
retaining them for long
run of business
activities.
With this organizations are
able to capture a wide area
of market which creates
value in attaining growth
and success.
It is not easy all the
time for firm to
produce goods as to
fulfilling the desires of
buyers.
Technologica
l
Under this, propel
innovation is presented
by Marks and Spencer as
to conduct its business
operations in effective
manner. This association
utilizes diverse
It creates value in firm to
making appropriate
changes in their production
functions.
This enhances the extra
cost of firm.
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innovation with a
specific end goal to
influence change in its
business and
additionally activity to
process.
Legal It is required for each
business enterprises to
follow the rules and
legislation which are
implemented by
government or its
bodies. Marks and
Spencer is consistently
following the rules of
government as to
attaining growth without
facing any kind of issue
and conflicts.
Government legislations
are effective in protecting
the rights of employees.
legislations can
contempt their
management policies.
Environment
al
These elements
comprise those factors
which are recognizing
through surroundings of
a domain. It is
imperative on account of
upgrading shortage of
populace targets, crude
materials and so forth by
working together in a
moral way.
Red- tap-ism will be
reduced and firm can easily
implement its operations in
effective way (Klapper,
Lewin and Delgado, 2011).
All printed material
will be decay and start
utilizing web offices.
From this work will be
diminished.
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TASK 4
P5 Internal and external analysis of particular organizations
Internal as well as external factors has a direct impact on the operations of firm, in an
organization it is essential for management to consider all the factors which has impacted the
growth of firm. PESTLE and SWOT analysis is effective in analyzing the internal and external
factor of Marks and Spencer:
SWOT analysis of Marks & Spencer
Strength Strength can be considered as a power of firm and the major strength of
Marks and Spencer is that company has good image at market place and
creates value in gaining attention of buyers towards the firm or its offered
products and services. The real power of Marks and Spencer is that
organization is working at worldwide dimension and has a decent and
successful brand picture in the mentality of individuals inside the commercial
centre and the brand picture makes an incentive in catching the eye of
purchasers towards the firm or its offered items and services. Solid portfolio
and extensive variety of items are another quality of the firm.
Weakness The major weakness of firm is that the cost of labour is enhanced which has a
direct influence on the productivity and performance of the Marks and
Spencer. Weakness is analysed as the downfall in the performance of firm
within market place. Marks and Spencer is focused on expanding their
operations at global level and some time due to lack of expertise market
knowledge company has failed to conduct its operations effectively.
Opportunity As a large retailer company Marks and Spencer has the opportunity to create
their own website as to making organizational transactions more easy and
effective manner. As a biggest retailer organization Marks and Spencer has
the chance to build up their own site as to making authoritative exchanges all
the more simple and successful. The site gives simple and solid offerings
without making any kind of extra charges like tax, transportation etc. to its
clients who are not ready to visit the stores.
Threats High competition within the market is the major threat of Marks and Spencer
which has direct or indirect impact on the overall performance and
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profitability of the firm. Chaining needs and preference of buyers are also
considered as the major influence on market on the performance of firm.
PESTLE Analysis of Marks & Spencer
FACTORS
Political  Reducing the cost of sourcing due to free trade policy.
Economical  Dispute with the medium and small retailer over increment cost of
retailing as a outcome of cash influence of Brexit.
Social  Product chain recalls develops negative trends of society.sss
 Effect on the brand goodwill of an organisation.
Technological  Increase productivity of firm and conducting business operations
in appropriate manner (Prajogo, 2016).
 Company Provide variety of communication channel to firm.
Legal  The companies are having Policies having standard packaging and
also using eco- friendly goods.
Environmental  It is essential for Marks and Spencer to focus on the waste
management.
P6 Strengths and weaknesses interrelate with external macro factors
It has been sees that the business condition is having an effect on exercises and also
activities of Imprints and Spencer. This firm has a few qualities and also shortcomings which is
important to decide by administration. In Joined Kingdom, this firm has large number of
customers and has solid nearness in worldwide market. In addition to this, outside variables
rolling out improvements for firm so there is a need to spend more sum and additionally time by
fulfilling diverse sorts of obligations.
Marks and Spencer has reputed brand value and dress is a main brand of this association in
United Kingdom. This firm is entering later on business sectors, for example, China. Financial
improvement of this country is most astounding and obtaining capacity of individuals of United
Kingdom is additionally upgrading. The income of Marks and Spencer is upgrading step by step
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after confronted numerous political and in addition efficient issues (Savrul, Incekara and Sener,
2014). The income of this business firm is improves on constant premise and furthermore
opening new stores in a portion of alternate nations like for a case India and China. With respect
to this, outside components ought to survey Marks and Spencer to take after viable procedures of
worldwide and in addition quick development.
Political: It consists to be the major factor which impacted the growth of Marks and Spencer. It
involves the factor which is connected to the stability of government regulations which are
required to be followed by an organization as to conduct its business operations in different
geographical areas.
Strength: Each country has their own norms and regulations which is needs to be followed by
Marks and Spencer as to implement its business operations. This helps the firm in paying the
taxes and conduct business operation in appropriate manner.
Weaknesses: The major weakness of political factor is that the company has its business
operations all over the globe and it is hard for firm to understand the norms of different country.
Economical: Each nation has distinctive practical conditions and diverse level of trade streams
out nations. Along these lines, Marks and Spencer need to take after various monetary
approaches with respect to various sections. The distinctive components which are considered
under this inflation and deflation rate, import/trade proportion, universal trades rates and so on.
Strength: The major strength of Marks and Spencer is that it has its business operations all over
the globe which create value in maintaining the economic condition of firm.
Weaknesses: Each country has their own rules and norms which are directly affects the
profitability condition of firm.
Social: This will identifies with social perspectives, dispositions, convictions of clients. This will
have tremendous effect upon request and business activities. Diverse variables incorporates
socioeconomic, hard working attitude, way of life patterns and so on.
Strength: In this the department of research and development plays vast role in analyzing the
needs and wants of people at market place as to satisfying them through producing more
effective goods and services.
Weaknesses: As a large business enterprises the company has huge number of employees who
are belongs from different culture. Due to culture difference organization faces various issues
and conflicts.
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Technological Factor: This will identified with various innovative viewpoints, advancements,
boundaries and motivators and so on. It is the obligation upon administration is receive new
procedures to enhance nature of items and achieve the certainty of clients. Different elements
incorporates innovation enactment, data and correspondences, protected innovation issues and so
on.
Strength: As a reputed business organization Marks and Spencer is focused in applying new and
advance technologies as to maintaining its brand image in the mind set of people. Company is
also providing effective training session to their new as well as existing employees in order to
attaining high growth and success.
Weaknesses: This will build the production cost of Marks and Spencer. It influences the
moderate valuing approaches of Settle and effects their sales and profitability.
Legal: Legal consideration are the necessary factors which are required to followed by the firm
as to making easy and effective operations within the market place. Legal norms and policies of
a firm is based on the ethical concern of the government of a country. These are necessary for
each small as well as large business enterprises to be followed for effective implementation of
their operations without facing any kind of legal conflict.
Strength: The real quality of the Company Marks and Spencer is that the organization has
pursued the administration tenets and enactments in regard to viable execution of authoritative
exercises. The organization is likewise worry on utilizing eco-accommodating items as to giving
natural advantages to the region.
Weakness: Through the significant shortcoming is that it isn't feasible for the firm to receive
every one of the strategies, which may has coordinate impact on the rand picture of the firm.
CONCLUSION
From the above given report it has been concluded that Business environment comprises
of various internal and external factors which have a direct influence on the functions and
operations of an organization such as consist partner’s consumer’s investor’s staff member’s
board of directors etc. Is the for most essential responsibility of organisation is to analyze the
environment of business as to taking effective decision about implementation of organisational
activities in appropriate manner.
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REFERENCES
Books and Journals
Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive
priorities: The role of performance frontiers. International Journal of Production
Economics.151. pp.131-145.
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.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics.93(1). pp.309-337.
Cuervo‐Cazurra, A., 2011. Global strategy and global business environment: the direct and
indirect influences of the home country on a firm's global strategy. Global Strategy
Journal.1(3‐4). pp.382-386.
Gebauer, H., Paiola, M. and Edvardsson, B., 2010. Service business development in small and
medium capital goods manufacturing companies. Managing Service Quality: An
International Journal. 20(2). pp.123-139.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Hilton, R.W. and Platt, D.E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
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, London.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Online
Marks & Spencer SWOT & PESTLE Analysis, 2018. [Online]. Available through:
<https://www.swotandpestle.com/marks-and-spencer/>./
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