Sustainability & Business Strategy

This assignment examines the crucial role of sustainability in shaping effective business strategies. It delves into analyzing external factors through PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analysis and internal strengths and weaknesses using SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis. The assignment further explores various promotional tools businesses can utilize to communicate their sustainability efforts effectively.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Various types and purpose of organisations..........................................................................1
P2 Size and Scope of different types of organisation.................................................................4
Task 2...............................................................................................................................................6
P3 Relationship between organisation functions and its objectives............................................6
Task 3...............................................................................................................................................8
P4 Positive and negative impacts on the macro environment depends on the business
operations....................................................................................................................................8
Task 4.............................................................................................................................................10
P5 SWOT analysis of M&S company......................................................................................10
P6 Interrelationship with external macro factors and strengths and weaknesses......................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment is consider all factors of externals and internals which influence to
the organisation. Business always operates in an environment. It is must be required to keep in
mind those forces which influence to each other and also work together for affecting on the
business operations. Organisation focus on several activities and functions which carry out
within the firm for producing particular goods and services so that they can increase the growth
and achieve target or objectives in appropriate manner (Boons and Lüdeke, 2013). Company has
to prepare for facing any kinds of challenges and changes regarding environment. The factors
that can affects on the business functions and operations including buyers, sellers, suppliers or
vendors, productions, marketing and management etc. Mark and Spencer is a retailer company of
UK and they deals in various range of products such as clothings, home appliances and food
item. This assignment will cover different types of purpose of an organisation such as public,
private and voluntary sectors as well as its legal structures and size. Some organisational
functions also discussed here that link with its objectives and structure. There are some positive
and impacts of macro environment on the business operations. Strengths and weaknesses of an
organisation and external micro factors also will discuss here.
TASK 1
(Covered in PPT)
Introductions:
Every organisations are affected from various internal and external environmental
factors. There are various kinds of organisation such as public and private whose major aim is to
increase growth and wealth maximisation while generating profits or revenues in the competitive
environment. This task will look at size and scope of Mark and Spencer and also describe
different kinds of organisations as well as purposes.
P1 Various types and purpose of organisations
Mark and Spencer is a private organisation and it is British multinational retailer and
listed on the London Stock Exchange. There are different types of organisation and its purposes
such as:
Private company: It is the form of an organisation which is owned and managed by an
individual. In this, firm can issue their share that must not traded on stock exchange. I other
1

words, they has shareholders within the company that generally exchanged privately among
members. Their main aim is to earn more revenues or profits so it is sole purpose of private
companies to generate incomes. Any firm or company who has the minimal government
interventions as they generally formed for running business and sharing more profits among
various partners. For example, there are lots of private companies in the world who are earning
more profits and they created strong competitions in the market at global level.
Mark and Spencer, one of the big organisation and its ownership is private. It is founded
in the year of 1884 by Marks and Thomas Spencer with the purpose of creating wealth and earn
more profits. It had become the first retail organisation through earning Euro 1 billion profit.
This company deals in luxury food and clothings as well as various products and services in the
market. According to recent data, company has generated its revenue approx 8500 to 10600
billion in the year of 2008- 2017.
M&S company believes in flat organisational structure that helps in proper interactions
among people as there are less chances of occurring gaps between employees and top
management. This will also support in encouraging employees for taking part in decision-making
process and share their ideas or opinion regarding any particular issues within the firm. There is
limited liabilities of members in private companies regarding extent of organisation's shares
owned. Company do not requires to sell their private assets for paying off to debts. On the other
side, there is another advantage of private ownership is that in the case of death of partner,
company will continue run its operations. They can enjoy less tax as there is relaxations because
of lower paying tax in private companies comparison to corporate firm.
In such kinds of firms, less members are required for starting a new venture. Minimum
person is 2 whereas maximum members should be 200 at there. The benefit of private company
is that they can enjoy exemption from provisions of companies act. This can be beneficial in
various activities and functions such as buy back its share, redeem them and also profit
distributions among all members. It is not necessary to hold AGM in the private company unless
it already mentioned in the Article of associations. It can be seen that most of shareholder are
their family members.
There is a advantage of private company as they can become public company by issuing
IPO, paying fee of stock exchange, underwriters fee and many more which is required.
2

Public company: It is the firm which sell its shares by initial public offering to the
general public and it is listed in stock exchange. In this involves the interventions of government
as well as answerable to the all members who are shareholders according to act of the
organisation. Genuinely, the aim of public companies is to divide or share profits among its
shareholders in every year. They also work for fulfilling the social needs and obligation for the
purpose of betterment of the society.
For example:- NHS (England) as it is public owned organisation and they provide medical
services to the people who are residential of the country. National Health Services organisation is
focus on funding with general tax as well as buy the Insurance premium. There are around
11,87,125 employees working including doctors, nurses, interns and managers. They also
provide better training and development programs to the doctors or nurses for best services
provider to customers.
Voluntary Organisation: In such types of organisation, an individual and group of
people come together for starting a new venture and achieve a common goals and objectives.
They come with their own choice as per their interest. It is normally non-profit organisation
which formed for the society people for their welfare.
For Example: OXFAM was founded in the year of 1942 by a group of people or volunteers.
Their main purpose is eradicate profits as well as injustice reductions. It is very supportive in
providing funds to the people whose required as they can become financially independent
through voluntary organisation. They also concentrate on providing best services to the needed
people in various parts of the world. The Oxfam company has mentioned about richest
percentage that possess wealth equally with poorest people in the world. They generally
organised various activities and functions as well as shops, campaigning, fund raising at several
areas or locations according to time. This firm has extended its services across the world such as
New Zealand, Netherlands, Denmark, Australia and India.
Legal organisation: It is that kind of firm where two or more individual come and join
together to a business organisation in a legal manner and make an effective group for running
the company. It usually registered in the legal office for their business purpose. There are several
types of legal organisation in the market who works according to their goals and objectives. In
this included the government offices, institutes, cooperation and associations.
3

The best example of legal enterprises are European Community, European Union and European
Free Trade Associations etc.
Partnership:- This is a most famous and effective form of the organisation where two or
more individuals comes with their ideas, knowledge, assets and capital resources for the purpose
of start a new firm or own an organisation. They make agreements and contracts in which some
rules and regulation defined and they have to follow all that as per term & conditions. They share
profits as well as risks equally between them while running the business operations. In
partnership firm, there should be minimum two person and maximum twenty members are
compulsory for starting a firm or join on the basis of legally. This form is based on the
partnership and also the performance of partner's while running an organisation and also their
main purpose is to earn profits as well as achieve set targets or objectives within a limit time
period.
So, There are various firms and its operations that operate different types of activities and
functions. Generally their main purpose is to maximise wealth and increase revenues or generate
profits through business operations. Some environmental factors also affects to these firms due to
changes as per the time and climate, so it is must be required to adopt suitable strategies for
competing with strong competitors.
P2 Size and Scope of different types of organisation
According to above information, there are various organisations defined as per their
different nature and business operations so that it will support in understanding the
organisational size and scope in effective manner.
Mark and Spencer:- M&S is a retailer firm. It is a British multinational company which
is situated in the City of Westminster, London. It has around 1433 stores in the world. There are
approx 3000 employees working here and around 65,000 people are associated with this
organisation. M&S company believes in providing high quality of products or services to satisfy
customers needs and wants and also they follow flat organisational structure. This types of
structure is very beneficial for the firm because there is less number of layers or lower level that
helps in making easier for interacting with people as well as it also facilitates in solving problems
quickly. So, there should be limit level of management between top level and front-line in the
business operations. This is very beneficial for making effective and appropriate decisions
regarding any challenges acceptance and adoptions of several strategies within the firm. It
4

support to the M&S company in communication process between top level and lower level so
that entire procedures can be managed effectively. This structure is also called a pyramid shape
because it is broader and flatter traditional ones. M&S company is focusing on increasing its
brand image among competitors and also achieve competitive advantages by expanding its
business at global level. They also consider this factor and make strategies for adopting new
ideas or innovations in the techniques for producing better quality of products and services.
NHS: National Health Services is a public company which is providing variety of
healthcare services to the people including dental, eye care, pharmacy, mental care, medicines
and emergency treatment to needed person. They also provides several services on free of cost to
the poor people who cannot afford such kinds of treatments. The main purpose of this
organisation is to provide best health care services to customers for improving their conditions in
effective manner. There are around 1.5 million employees working who are well trained and
skilled as well as experienced holders which are the top five largest workforces of world. In this
included qualified staff members such as around 150,273 doctors, 314,966 nurses and 40,584
general practitioners. Their ambulance staff members are approximately 18,862 and 111,127
hospitals in the country. There are lots of scope of NHS organisation as it takes feedbacks as well
as view or opinion from society people by conducting survey and gather data to make changes
for improving service quality in efficient manner. This firm included in the world's largest
organisation by analysing the review from staff, patient, social people and tax payer that will
support in achieving long term growth for the organisation. It is must be necessary to analyse the
data by research process as it is depends on the feedback of people. This can be done by study of
consumers behaviours, perceptions, opinion and satisfaction level towards organisational health
care services.
Oxfam:- Oxfam is one of the most famous international organisation that works for the
purpose of charity. They focus on satisfaction of the consumer and try to serve best to them for
meeting their desired expectations. It has around 20 organisation which are working for it like
partner and also as the local communities. There are large populations who are facing more
problems towards poverty across the country. Therefore, their main objective is to work for
removing poverty in around 90 countries. Oxfam has approximately 5,300 employees who are
working in effective manner and also 22,000 volunteers who works and manage it at global
level. They are thinking to make its program at international level by working with 16 members
5

of the organisation. Oxfam company always consider various problems such as economic
inequalities as well as social justice. This must be required to focus on new innovative ideas or
unique way for lifting people out of poverty. They adopt campaigning strategies in which
promote health care services and it should be effective and efficient manner. It also requires to
focus on fund raising, that is why they have to adopt new techniques for this purpose. There are
wide scope of this firm in the several countries where people are below poverty line and they are
not able to live their life in appropriate manner. Some persons are unable to find living shelters
and food for live hood. They support in providing employment opportunities to the people for
helping them in reducing poverty.
Conclusion:
from the above report, it has been concluded that there are various types of companies
that operated in different manner according their nature and also described about several
organisations with size and its scope at the global level.
Task 2
P3 Relationship between organisation functions and its objectives
In this defined that Mark and Spencer is a British multinational retailer company which
situated in UK. This firm deals with several types products and services such as clothing, food
items, home appliances and many more in the market and there are huge customers who prefer
this brand because they promote their products through advertisement and other promotional
tools. Company attracts numbers of customers through new innovative ideas and strategies for
increasing sales volume. This firm assist for serving best quality of products and services which
cover entire market areas. M&S company generally make best and designer cloths or trendy
textile, food, cosmetics and other gifts items. They follows hierarchical structure for providing
information and assigning any tasks to the workers so that they can manage entire tasks and
works in appropriate manner. Company manage proper demand and supply of good by balancing
so that they can satisfy customers needs or wants in better way. This structure is beneficial for
managing and controlling of all branches for meeting consumers needs in effective manner. It
also support in dividing entire task or activities among different employees so that they can
achieve desired goals or objectives.
6

There are some major aims and objectives of Mark ans Spencer such as to provide best
qualitative products and services with reasonable price to the target audiences. They focus on
making and developing entire nation or country. Company focus on promoting their products by
using effective tools and techniques for the purpose of enhancing selling and distributing so that
they can increase sales volume.
M&S company use modern promotional tools for promoting their goods and services in
the market as they prefer method of online for selling products because it is useful techniques
which works to increase profitability and productivity. They promote company's website for
attract number of customers and get more traffic on that. In this included best tools and
techniques in modern world such Emails, social media, photographies, original websites,
videography as commercial ads, search engine optimisation, pay per click and many more for the
purpose of creating huge awareness among target audience.
They want to make reputation in the market through better promotional tools and they also adopt
new innovative techniques in producing products and services and satisfy customers at the
market place. Company also considered those factors that can harm to the society. It directly
affects on the business operations due to this reason.
M&S perform various kinds of functions within the firm which has linked with the
organisational objectives. They focus on managing entire business operations in appropriate
manner so that they can achieve their set goals and targets.
7
Illustration 1: Promotional tools 2018

Sales and marketing department try to adopt best strategies for promoting products in the
market so that customer can be attracted. They also focus on producing more qualitative goods
for getting huge attentions of target audience. On the other side, administration department that
provide better solutions to the company regarding various kinds of problems or issues in
appropriate manner.
Financial department manage entire operation through managing and controlling the
budget in effective manner. Their major task is to record all financial data as well as statements
for preparing budgets and also analyse all costs and expenses which has been spent in the last
year. This department generally predicts the future budgets which support in evaluating
upcoming functions and activities of the company.
In the other side, human resource management department takes responsibility manage
the people by monitoring and controlling of entire activities which is related with employees
performance within the firm. They also consider various kinds of problems such as conflicts that
can be occur while performing any task or work. Therefore, it is the responsibility of HR
manager to resolve these problems and also hire suitable candidates for making effective
workforce.
Task 3
P4 Positive and negative impacts on the macro environment depends on the business operations
For every business organisation, it is must be required to analyse market environment as
well as internal and external factors that can affects on the business operations. M&S is also
deals in large scale activities, so they should identify several forces which are affecting to the
entire business (Chang and Hughes, 2011). Manufacturing department perform various activities
so that they requires to consider such factors which can be impact on production procedures in
8
Illustration 2: Organisational Department 2012

both way such as positive and negative. So it can be verified that there are different impacts of
macro environmental factors upon the organisation as here are some advantages and
disadvantages which can modify the changes in macro components and these are as follows:
Political factors: This factors sis associated with legal authority as well as government
rules and regulations which must be followed by the Mark and Spencer company. At the time of
enlargement, regulation and criterion that must be adopted by the firms or organisation in an
appropriate manner. It directly affected on the M&S company and its operations in positive as
well as negative way such as:
Positive impacts: Government make several rules and regulations which should be
relevant for small and big organisation so that company can formulate effective rules for free
market. M&S try to adopt all these legal legislation for the purpose of increasing profits.
9
Illustration 3: PESTLE Analysis, 2014
(Source: PESTLE Analysis, 2014)

Negative impacts: This rules and regulations may be affects these kinds of businesses at
that time for transferring products or services in international level. This can be create barrier in
achieving growth or success.
Economical factors: This factors are related with changes of taxations rates and
inflations or deflations which directly affect to the business firm (Hotho, 2011). The currency
rates determine in the economical factors that must be considered.
Positive impact: Free trade policy motivate to the business organisation and encourage
them to import and export of various goods and services across the border which are earning
more revenues.
Negative impacts:- exchanges of currency rates can be affected on business in financial
term as it generally sustain heavy loss as well as reduce the chances of getting success.
Social factors: This is most important task in which company has to consider customers
needs and wants and analyse demand in the market for particular good and services according to
their behaviour, choices and perceptions for providing satisfaction to them. M&S requires to
adopt new fashions or latest trends for producing goods and services and develop the products
for increasing sales volume (Demil and Lecocq, 2010).
Positive impacts: This is very helpful to analyse market and customers demand and
produce innovative as well as best qualitative products and services so that number of customers
can be attracted.
Negative impacts: This will lead to decreasing sales due always implementation or
changes in products and services without survey which directly affects on the business
operations.
Technological: M&S company should adopt new technologies and methods for the
purpose of increasing growth and reputation in effective manner.
Positive impacts: The important benefit of innovative technology is to produce best
quality of produce for satisfying customers.
Negative impacts: It can affects on the employees and create problems for understanding
the technology and adopt it for producing goods and services.
Legal:- This is the external factors that directly impact on the business operations and its
functions in an appropriate manner. It is based on governance laws and regulations that affect on
completing tasks.
10

Positive impacts: The major objectives of this factor is to protect products and services
from harmful or dangerous items.
Negative impact: there are certain policies and rules which must be followed by the
organisation.
Environmental factors:- This is an important factor that surrounded of the business firm
and it influence on the functions of the company such as maintaining wastages and utilisation of
available resources in effective manner by the firm (Dong and Hou, 2009).
Positive impacts: It is an essential for managing the environment through reducing
wastages for better production of goods and services.
Negative impacts: Production department may be failed in utilising or managing
resources and also determine the business functions and operations in appropriate manner.
Task 4
P5 SWOT analysis of M&S company
Mark and Spencer is multinational retailer firm which deals in rage of products such as
home appliances, cloths and food items for the purpose of satisfying customer needs and wants
so that they can earn more revenues. This firm is focusing on expanding business at various level
for attracting numbers of customers towards organisational goods and services. SWOT analysis
helps in identifying strengths, weaknesses, opportunities and threats which will helps in making
better decisions and adopt appropriate strategies for achieving competitive advantages (Edquist,
2010). There are various factors which affects on the business activities so that swot analysis
helps in analysing or identifying the strengths or weaknesses as well as those forces in better
way. There are some SWOT analysis of M&S firm such as:
11

Strengths:- It is popular brand in the market and it also has strong image among competitors
which helps in increasing sales volume. There skilled persons are working and they focus on
achieving goals or objectives. They provide qualitative products and services to the customers
such as home appliances, food items and cloths. Company believes in maximum satisfaction of
customers for making healthy relations with them.
Weaknesses:- There may be less chances of getting success due to poor promotions of products
and services. Lack of customers satisfaction is also weak point of the organisation. M&S
company face various challenges regarding the productivity so it can affects on the income and
profits of the firm.
Opportunities:- company requires to expand the business at various locations because there are
wide scope of business expansions (Grimpe and Kaiser, 2010). They can promote their products
and services by adopting best technologies of as well as promotional tools in the market.
Threats:- there are lots of competitions at the market place which can affect on the selling of
goods and services. M&S requires to consider this factor and adopt suitable strategies for
competing with competitors.
12
Illustration 4: SWOT Analysis, 2017
(Source: SWOT Analysis, 2017)

P6 Interrelationship with external macro factors and strengths and weaknesses
There are several internal and external factors which must be required to consider all
these elements and try to avoid its negative impacts on the business growth or success. Factors
are defined as the externals or macro which cannot be controlled by the company but they can
manage it by effective decisions making process (Helms and Nixon, 2010). These forces are
Political, Economical, social, technology, legal and environmental factor.
Political factors: Government rules, regulations, norms and codes of conducts can influence the
organisation and its marketing strategies so best decisions must be take by the M&S for this.
 Strength – Mark and Spencer always implement governmental rules and regulation in
their business practices that assist them to work effectively in the economy of UK. These
activities can be considered as major strength of firm. Weaknesses – For Mark and Spencer, it is mandatory to identify norms and regulation of
different countries while they expanding their business in different countries.
Implementation of strict regulation can create a pitfall for firm.
Economical factor: It is related with changes in taxations, exchange of currency rates that
affects on the business firm.
 Strength – Government of UK pay their maximum attention toward such business
organisations in terms of providing funds and facilities for business development
practices. Weaknesses – Fluctuation in economical factors as tax policies and others can create
negative approach for business organisation.
Social factor: People's choice, preferences and their behaviour can influence on the company's
products sales. M&S requires to conduct survey for this.
 Strength – Mark and Spencer always provide quality products and services to customer's
on the basis of their requirement and need. These practices assist to maximise strength in
business practices. Weaknesses – Major changes in customer's demand and establishment of new
competitors create threats for firm.
Technological factors: this factor is related with changes of new technologies and ideas or
innovation in products so it can affects on the business.
13

 Strength – M&S implement advance technology in their business practices in the
terms of digital payment and so on. These activities assist to save maximum time
in business practices.
 Weaknesses – Now a days customer's are more likely to purchase services
through e-marketing. Therefore, Mark and Spencer requires to consider such
practices in order to reduce complexity.
CONCLUSION
From the above project report, it has been concluded that every business organisation
have major impacts of internal and external factors that can affects on the business operations.
This report is based on Mark and Spencer company which considered all these elements and
adopt various strategies regarding environmental factors. SWOT and PESTEL analysis also
discussed here for achieving competitive advantages.
14

REFERENCES
Books and Journals
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.
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.
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.
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.
Hoang, H.A. and Rothaermel, F.T., 2010. Leveraging internal and external experience:
exploration, exploitation, and R&D project performance. Strategic Management
Journal. 31(7). pp.734- 758.
Jung, H. S., Kim, Y. and An, J. A., 2011. Effects of the Internal and External Factors of Small
and Mediumsized Corporations on Green Management Performances through the
Establishment and Utilization of Information Systems and Building Relationships for
Information and Knowledge.
Kolios, A. and Read, G., 2013. A political, economic, social, technology, legal and
environmental (PESTLE) approach for risk identification of the tidal industry in the
United Kingdom. Energies. 6(10). pp.5023-5045.
Kuratko, D. F., Hornsby, J. S. and Covin, J. G., 2014. Diagnosing a firm's internal environment
for corporate entrepreneurship. Business Horizons. 57(1). pp.37-47.
Lovejoy, K. and Saxton, G. D., 2012. Information, community, and action: How nonprofit
organizations use social media. Journal of Computer‐Mediated Communication. 17(3).
pp.337-353.
Miller, O. D., Yablonovitch, E. and Kurtz, S. R., 2012. Strong internal and external luminescence
as solar cells approach the Shockley–Queisser limit. IEEE Journal of Photovoltaics.
2(3). pp.303-311.
Milner, H. V. and Tingley, D. H., 2011. Who supports global economic engagement? The
sources of preferences in American foreign economic policy. International
Organization. 65(01). pp. 37-68.
Molly, V., Laveren, E. and Deloof, M., 2010. Family business succession and its impact on
financial structure and performance. Family Business Review. 23(2). pp.131-147.
15

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 31th October 2017].
PESTLE Analysis. 2017. [Online]. Available through: <http://www.changefactory.com.au/our-
thinking/articles/developing-aged-care-strategy/>. [Accessed on 31th October 2017].
SWOT Analysis. 2017. [Online]. Available through: <http://casservice.gsu.edu/swot-analysis/>.
[Accessed on 31th October 2017].
16