Business Models for Developing Markets

This assignment delves into the intricacies of developing effective business models for emerging markets. It emphasizes the importance of long-range planning and adaptability within dynamic environments. Students will analyze various theoretical frameworks, including Drucker's Theory of the Business and Osterwalder's Business Model Generation, to understand the key components and strategic considerations involved in creating successful business models for developing economies. The assignment also encourages critical thinking about the challenges and opportunities presented by these markets, drawing upon real-world examples and scholarly research.

Business and Business
Environment

Contents
INTRODUCTION...........................................................................................................................1
PART 1 ESSAY...............................................................................................................................1
Introduction............................................................................................................................1
P1 Background of each organization, their legal structure and the purpose of different type of
business firm...........................................................................................................................1
P2 Size and scope of operations different organisation in marketplace.................................2
M1 Linking the structure, size and scope of your two selected organizations with to the
business objectives and the organization structure.................................................................4
P3 Relationship between organizational functions linked to the organization’s objectives and
to the organization structure...................................................................................................4
M2: Analyse the advantages and disadvantages of interrelationships between organizational
functions and the impact that can have upon organizational structure...................................6
Conclusion..............................................................................................................................7
PART 2............................................................................................................................................7
Introduction............................................................................................................................7
Section 1.................................................................................................................................7

P4 Identify some positive and negative impacts of the macro environment on the business
operations, supported by specific examples...........................................................................7
M3 Apply PESTLE to one of your organizations..................................................................9
Section 2...............................................................................................................................10
P5 Conduct an internal and external analysis to identify its core strengths and weaknesses.10
M4 Apply the SWOT to justify how they influence decision making.................................10
Section 3...............................................................................................................................11
P6 Explain how these strengths and weaknesses are linked to the external macro factors..11
Conclusion............................................................................................................................11
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business environment constitutes the various aspects of internal and external factors which are
influencing the organisational operations and functioning to a large extent (Teece, D. J., 2010).
These attributes of commercial surrounding is having great impact on working of its
stakeholders, internal operations and strategic actions towards external opportunities etc.
In this report the scope, organisational and legal structure of private, public ad voluntary
firm is discussed. This particular assignment also accesses the internal capabilities of firm along
with accessing internal influencing factors.
PART 1 ESSAY
Introduction
This specific essay studies about the legal structure and the purpose of the various forms of
organisation like private, public and voluntary businesses (Drucker, 2017). This also discusses
about the number of employees, turnover of the company and functional structure of the different
types of organisation.
P1 Background of each organization, their legal structure and the purpose of different type of
business firm.
Public organisation (National Health Service NHS): This type of firm is publically
financed organisation working in the commercial environment and engaged in delivery of
services to large customer base. The NHS is public capitalised firm established in year of 1948.
The working of organisation is continued through financed through taxation revenues. Company
is engaged in delivering wide range of services to their customers like emergency care to people,
general practitioner and pharmacy services, eye and dental care services etc.
The key purpose of National Health Service (NHS) is to provide assistance to the people
who need health care services in society irrespective of origin, gender, status and wealth of
individual (Cantwell, Dunning and Lundan, 2010). The company is charging only few of the
services like eye care or dental care or for the prescribed medicine and other services are free for
the people who are residing nation.
Private organisation (Marks and Spencer): These are the companies are privately wined
working ventures. The private organisation are owned by a single owner or working in
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partnership. The Marks and Spencer is an private organisation working successfully in
commercially environment. Business firm is aiming huge amount of profit since its
establishment in 1998. The company is engaged in delivering various kind of product line like
food products, women lingerie, clothing and home products etc.
The key purpose of Marks and Spencer is having major purpose to earn higher level of
profit for owner by serving quality services to the customers (Carroll and Shabana, 2010). This
will helps in developing better relationship with service user and making them loyal customers
for company profitability.
Voluntary sector (Oxfam): The organisations belonging to this category of business firm
is established by a group of people having same goals and interest and works for the social
welfare in nation. This respective sector is also known as non-profit organisation. Oxfam is an
voluntary organisation which is engaged in delivering their services to children and providing
them education and the vulnerable women of the society to helping them developing
independently in society.
The key purpose of Oxfam is to service the people who are poor and enable to fulfil their
basic needs of food and shelter. This respective Non-profit organisation works for homeless
people and the vulnerable women who are abused or victims of domestic violence. The
organisation purpose is to fight for the right of poor and vulnerable people of the country and
helping them to provide them independent lives in society.
P2 Size and scope of operations different organisation in marketplace.
Scope and size of National Health Service (NHS): The organisation of working with
world’s top five largest workforces with a team of approximately 1.5 million people. The largest
part of the NHS health system is delivered to the England with having staff strength of 1.2
million people (Aterido, Hallward-Driemeier and Pagés, 2011). In the year of 2015- 2016 the
revenue generation of the NHS goes to amount of 101,708 million Euros. The company is
regulated by the government of UK providing most of the health care services to the areas of
England, Scotland and Ireland. Most of the services of NHS are free of cost for the residents of
the country. The company is engaged in delivering of wide range of services like emergency
care, eye and dental care, pharmacy services etc.
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Scope and size of Marks and Spencer: M&S is an retailing company of UK dealing with a
wide range of products like home goods, luxury food products and the women lingerie and
clothings through their 959 stores dealing all over the UK out which about 615 stores are
engaged in deliver of luxury food items only. Company was established in 1998. M&S earning
goes to about 1 billion euros beings first retailer company with such a huge earnings. Through
globalising their services the company groomed their operations to large extent and dealing in
global market through 223 stores in other countries like India, Russia, Greece, France, Hungary
etc. The first online services of the company was launched in 1999 after one year of its
establishment only and results in increase in sales figure in any folds (Chavis, Klapper and Love,
2011). The current size of the M&S in market place is having strength of about 82,904
employees engaged in generating revenue up to 10,622 million Euros.
Illustration 1 Key retail and foodservice players, 2013.
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Scope and size of Oxfam: This particular voluntary firm was stared in 1942 and the large
organisation working for the social welfare. The goals and vision of the firm is to service the
poverty hit areas and to the homeless people and vulnerable women of domestic violence. The
company is making funds through selling out various donating good in order to become finically
impediment working for better social cause (Welford, 2013). The Oxfam is also engaged in
delivering services to people by collecting funds through organising various charity events.
M1 Linking the structure, size and scope of your two selected organizations with to the business
objectives and the organization structure.
The NHS is attaining their objectives of delivering free of cost services to the large
number of UK people through developing a large size workforce along with funded through
governmental taxation revenues. In contrast, huge size and scope of the Marks and spencer helps
in accomplishing the managerial objective of delivering their products to the large number of
customers. The organisation size facilitates to work as per the needs of customers and through
large revenues the company can accomplish their expansion objective in global market (Dahan
and et. al., 2010). On the other hand Oxfam is engaged in delivering their services to the people
in need all over the world through establishing a motivational workforce and generating revenues
form charity fund and selling out donated goods which contribute in accomplishing their
objectives effectively.
P3 Relationship between organizational functions linked to the organization’s objectives and to
the organization structure.
National Health Service (NHS)
I. Objective: The main objective and the working goals of the NHS firm is provide health care
services to the people residing in the UK countries so that the health of nation people can be
improved. The company main objectives are to serve services to the people in need at free of
cost and ensure maintenance of good quality health services (Osterwalder and Pigneur,
2010). The different functional department o NHS like Human resource, finance and
marketing are working in integration to accomplish all the objectives of business. The
company is engaged in recruiting huge number of people and investing on their training and
development to deliver quality services to people and market their services in commercially.
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II. Organisational Structure of National Health Service (NHS): This respective public firm is
following the divisional organisation structure in workplace. Through this the NHS
Company is segregating the responsibilities of each department in order to deliver efficient
services to people.
Source 1 NHS 2017
Illustration 2 Organisational structure of NHS
Marks and Spencer
I. Objective: The objectives of the Marks and Spencer firm are to serve to the huge market and
develop large revenues in the marketplace through providing good quality food products and
clothing. The company is working in integration with various operational functions of the
business firm like manufacturing or production, HR, finance and marketing (Wild, Wild and
Han, 2014). The company is engaged in maintaining their inventory operation effectively in
order to deliver services to customers on time which contribute in accomplishing the
objectives of firm with higher effectiveness.
II. Organisational Structure of Marks and Spencer: The sited private organisation is
following Matrix working structure in their business culture in order to deliver efficient
services. The each department of the business firm is regulated by each firm independently
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in order to bring higher effectiveness in process of delivering services. This is a combination
of functional and divisional organisation structure (Wirtz, Schilke and Ullrich, 2010).
Illustration 3Marks and Spencer’s organisational structure
OXFAM
I. Objective: The primary objectives of the firm are to deliver services to the people who are
poor and enable to live their lives properly and independently (Wheelen and Hunger, 2011).
The voluntary organisation Oxfam is working for the social cause serving the women and
children of society also. The company is working in integration with various functional
departments like voluntary groups, HR, charity groups etc. in order to deliver the services
globally.
II. Organisational Structure of Oxfam: The sited on profit organisation s following up flat
organisational structure in order to work independently in the market. This also contribute in
faster delivery of services to people and helping to the large number of vulnerable people on
time whenever their required.
M2: Analyse the advantages and disadvantages of interrelationships between organizational
functions and the impact that can have upon organizational structure.
The major advantage of the bringing interrelationship between the organisational functions
is that staff and employees can enhance their knowledge and expertise in different operation
which helps in effective delivery of services to the customers and people (Trkman, 2010). While
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one of the major disadvantage is the developing a relationship within the function of firm that
this develops a confusion in delegation of task and authorities which may affect the effectiveness
of service deliver process negatively.
Conclusion
This can be concluded form the above discussion over essay is that the various private,
public and voluntary organisations are working for their objectives through following different
organisational structure in order to deliver efficient services to the customers as per their
requirement (Siewiorek and et. al., 2012). The business firm is continuously working in making
funds available to investment for accomplishing their goals objectives in marketplace.
PART 2
Introduction
In this particular report the external and internal environment of the business organisation
is accessed in order to identify various opportunities available in marketplace and confidently
developing competence towards these profit making possibilities.
Section 1
P4 Identify some positive and negative impacts of the macro environment on the business
operations, supported by specific examples.
Attributes of PEST
analysis
Positives Negatives
Political factors The Marks and Spencer is
working with various countries
globally due to which the stable
political environment and the
countries with lower taxation
policies can be profitable for firm.
Political instability may
negatively affect the function of
business organisation. The sales
of Marks and spencer’s go down
because of unpredictable nation
election after BREXIT.
Economic factors The profitable global markets can
serve the business better and
provides huge opportunities to
growth in marketplace with
While the financial crisis and
the changes fiscal policies will
affect negatively to the profits of
Marks and Spencer and the
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making higher revenues for the
M&S.
company goes through huge
monetary losses if not acted
strategically in global
marketplace.
Social factors The various changing
demographic factors of society
like gaining people brings higher
sales to the food products sales of
the M&S. the changing trends and
needs in society like more female
worker leads to decrease meal
preparation in home and extra
dependent on packaged food
which results in increasing the
sales of sited company in many
folds.
Changing food habits ay
negatively affect the sales of
company as the people are
becoming more health conscious
and prefer organic and natural
food. The company have to
work accordingly to make
continuous profitability in
working of business.
Technological factors The various new technological
advancement like electronic funds
transfer, online marketing,
electronic point of sale etc. largely
contributed in increasing the sales
figures of Marks and Spencer in
many folds.
This technical advancement also
affected the business growth
negatively as the people are not
able to access or adapt the new
technologies in practices
effectively this result in bad
experience o customers with the
company services.
Legal factors The legal policies are having great
impact on the functioning and
profitability of the business fir.
The companies like Marks and
Spencer are largely motivated by
various legislation introduced by
country government like
The country is developing
various legal policies in order to
make control over the activities
of monopoly organisation which
are affecting the positive
competitive environment of the
marketplace. The companies
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enhancing the globalisation in
nation to contribute in economic
development of nations as well as
the business organisations.
like Marks and Spencer will be
negatively affected by these
political policies of government.
Environmental factors The Marks and spencer is
practising various activities in
order to reduce the negative
impact of business operation on
natural environment. This
particular activity helps in
building good brand image in
domestic as well as international
marketplace and contributes in
increasing the profitability of
firm.
This is evidence that the
company expense may increase
in many folds when company is
engaged in delivering its
responsibilities to the society
and environment. The delivery
of corporate social responsibility
in order to protect the natural
environment of world requires
huge funds which affects the
profit margin of firm.
M3 Apply PESTLE to one of your organizations.
The Pestle analysis helps in determining the various factors influencing the internal
functionality of the firm in marketplace. These factors largely affect the working and profitability
of the business. The Marks and Spencer activities and internal compatibilities are also largely
affected by these political aspects (Hamilton and Webster, 2015). Like for instance the Brexit
results in political instability in the nation and also affected the economic environment of country
which largely affects the profitability and revenue generation of the M&S in country. This also
influenced the legal structure of the nation and many new legislation are motivated which leads
in need of change in company existing working policies and interferes with the internal operation
of the Marks and Spencer.
Section 2
P5 Conduct an internal and external analysis to identify its core strengths and weaknesses.
The internal environment of the business firm informs about the competence level of the
originations. The various strength and weaknesses of the Marks and Spencer helps in identifying
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the internal competent and computability with the external growth opportunities in marketplace.
SWOT analysis if accrued out in order to develop an internal attaining of M&S in order to
measures competence of firm on various grounds which is developed as follows:
Strength: M&S is listed under the top most 10 companies in the market of UK which is
engaged in making huge profit since in 1999. The company is having great competence in
expanding business to the external global markets through franchising which is a great strength
of the business firm and helps in concurred the global market profitably and accessing various
growth opportunities available in internal markets (Laumer, Eckhardt and Weitzel, 2010).
Weaknesses: The working with large numbers of franchisee and the business firms will
results in complications in functions and may leads to losses to overall profitability of the firm.
These are some of the weaknesses of firm which may restrict the development of business in
commercial market.
Opportunities: The M&S is company is dealing with approximately 6 million people. The
company is having opportunity to expand this customer base through developing various
strategies. The company is engaged in delivering services like opening bank account free of cost
and getting company gift card (Chesbrough, 2010).
Threat: One of the major threats to the company profitability is due to the brexit. This
brings nee changed in the commercial marketplace which may negatively affects the growth of
M&S. The company is also having major threat from other pioneer competitors in retail industry
like Tesco, Asda etc.
M4 Apply the SWOT to justify how they influence decision making.
The company strength and weaknesses largely affects the profitability of the firm. The M&S
can access various growth possibilities available in marketplace through accessing their
competence and strength effectively and evaluating the loop holes in performances and the
weaknesses of firm (Boons and Lüdeke-Freund, 2013). The company strength may results in
making effective decision for the expansion strategies in global marketplace. While some of the
weaknesses may restricts its development in globalisation of M&S.
Section 3
P6 Explain how these strengths and weaknesses are linked to the external macro factors.
Linkage with strengths of M&S
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The strength of the Marks and spencer can be linked to the various external factors affecting
its functioning and decisions making process. The company is well stabilised market share in the
domestic as well as international marketplace which helps in dealing with various changes in
political and legal changes confidently (Shigang, 2010). While successful establishment of the
business in different countries also helps in dealing with sociological factors of the society and
contributing in increased profitability of M&S.
Linkage with Weaknesses of M&S
While the weaknesses of the firm like inability to deal with political instability effectively.
Like for instance it can be evidenced from the loss in sales of firm after brexit in the country
(Zott, Amit and Massa, 2011). The company working is also affected by various legalisation and
political provisions.
Conclusion
This can be concluded for this part of report that the internal abilities are influenced by the
external macro environmental factors to large extent.
Conclusion
This can be concluded from the above discussion that the size and scope of the various type
of organisation like private, public and voluntary largely affects the internal strength and
weaknesses of the firm. This can also be evidenced that the company should access the available
growth opportunities in marketplace confidently and responsibly in order to contribute in
increased revenue for the M&S.
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