Internal & External Factors in Business Success

This assignment delves into the critical role of internal and external factors in shaping business operations and success. It emphasizes analyzing a firm's strengths, weaknesses, opportunities, and threats (SWOT) alongside political, economic, social, technological, legal, and environmental (PESTLE) influences. The 6Ps of marketing are also examined within this framework, illustrating how businesses can leverage both internal capabilities and external market dynamics to achieve profitability and growth.

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 Description on the purpose of the private, public and voluntary organisation and their legal
structure of the company. ......................................................................................................1
P2 Define the size and cope of Mark and Spenser in comparison to the voluntary organization.
................................................................................................................................................2
P3 Description on the relation between organisational function in order to attend the goals and
mission....................................................................................................................................3
P4 Define positive and negative effect of the micro environment on business oppression of
M&S.......................................................................................................................................5
P5 Description on the external and internal analysis of the business enterprise....................5
P6 Example with consideration of internal and external factors of organisation...................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The term business and business environment is related to the internal and external factor
of organization. In this all the factor is out of the control such are defined as customers,
management, employee of the firm etc. This is need to be considered in the effective manner in
order to analysis the need and expectation of the firm. The present report is focusing of the
following concept of business environment are as Marks and Spenser this organization is
working as the food, clothing and home products company of the UK. This company is having
global expansion (Blut, Evanschitzky and Brock, 2014). The main motive this organization is to
provide satisfactory products to the consumer so that they can high amount of profitability and
productivity. This project will find out the outline and scope and size of the business enterprise
in order to attend the aims and objective of the organization. Thus, this report will analyze the
internal and external factor of the company.
P1 Description on the purpose of the private, public and voluntary organisation and their legal
structure of the company.
Private organization(Mark and Spenser)
Purpose- The main motive of the business enterprise is to earn maximum amount of
profits so that revenue scale of growth can be maximise. In this manner they used to give more
focus on the customer need so that they can able to full fill them.
Legal structure- The Mark and Spenser are working under the flat organisation structure
and in this way they are having lower number of managers. With the help of this kind of
structure the employees are able to feel motivated and they have the right in order to take
decision effectively. The M&S was established in the year 1884. It is the global leading brand
and enlarging its activities in order to earn maximum customer satisfaction. This all is relates to
the employment rights, consumer rights and self regulation so that business can able run its
activities in effective manner. In this way they can able to cope up with the environmental issues
(Chavis, Klapper and Love, 2011). The legal structure of the firm should be strong.
Notes- in this it can be noted that main purpose of his business enterprise is to earn large
amount of profit, in this manner the M&S is providing good quality of the commodities to
customer in order to enhancing the living standard of the people. In this relation they are giving
more focus on to the improving relation with the stakeholders, customers and suppliers this all
are the core part of firm activities. The main motive is to provide health and safety regulation so
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that they can able to meet the need of the consumers (Lorca-Susino, 2014). They need to
compliance with the legal framing of the country so they can able to treat the firm employees in
the effective manner. In order to deal with the changes of the business environment it is essential
to corporate with firm activities.
Public limited organisation (NHS)
Purpose- The main motive of the business organisation is to enhance the economic
development of the country. This organisation work as to serve health care to individuals. This
kind of firm is not having motive in order to earn profit.
Legal structure- in order to firm activities’ they should follow government rules and
regulation so that there can be economic development of the country. This was framed in order
to provide good health care services to individuals.
Voluntary (The cancer research)
Purpose- The main object of this firm is to deliver the quality good service so it can help in
promoting economic develops to the country. This will help in order to enhance the standard of
living of the person and all function are concern with the social wealth instead of wealth and
profits.
Legal structure- The voluntary group of the UK is following three kinds of structure such are as
guarantee trust, comprises and unincorporated association.
Notes- Moreover, The main motive is to properly following of all the regulation of the business
enterprise. With the help of this kind of activities the firm can able to run its business in smooth
manner (Mohamed, 2015). This is essential in order to satisfy the customers so that firm brand
image can be maintained. Business manager need to determine the object of the firm so that
objectivity of the enterprise can be full filled.
P2 Define the size and scope of Mark and Spenser in comparison to the voluntary organization.
Private (Marks Spenser)
Size- The size of the organisation is not fixed and limited it is dependent on the market share.
This all dependent on the availability of resources across the globe. There are almost number of
employees, employed and it is having number of stores around the world. This firm is having
303 store in 41 territory. The supply chain of this firm is very massive they are having almost
2000 suppliers. This firm is following flat organisation structure, due to this they are having
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lower number of managers. The total number of employees in M&S are 80,041, in this female
are 57,841 and males are 22,200.
Scope- The scope of the M&S is to provide good quality of the products to the customers so that
sale growth of firm can be enhanced (Popescu, 2013). In addition to this, the firm need to
provide those products which can able to maximise the profits. With the help of this kind of
activities in marker there can earn high volume of profit generation.
Notes- The size and scope of the firm is overall dependent on the availability of products in the
market. In this manner there can be variation as per the changes in business environment. Its all
dependent on the profit scale of the organisation. As per the size of organisation is limited to the
satisfaction of the buyers to the firm. This is the retail store and it is providing number of goods
and services to the customers. With the help of the innovation in the products they can able to
gather the attraction of large number of people towards their business enterprise. This kind of
activities is determining the bigger platform of M&S in relation to comparison of voluntary
business enterprise.
Public (NHS)
Size- The size of the business enterprise is very bigger it is spread across the world. This
firm is having annual budget in the billions of pounds. The NHS has employer total number of
14,00,000 employees. It was launched in 1948 in order to provide public welfare to society.
Scope- The role of NHS Is to make proper implementation in the state policy for
availability of health care services. They are taking effective initiative in order to provide good
service to patients in the reasonable rate. The main motive is to provide welfare to society.
Voluntary (The Cancer research)
Size- In accordance to the M&S the size of the cancer research is limited and it has various
numbers of employees and volunteers.
Scope- the main motive of this fir is to provide satisfactory services to the client so that they can
able to feel good in themselves. They used to give their major focus on the health of the person
instead of wealth an image of the firm. By delivering good services to the customer they are able
to maintain the reputation of business enterprise. The main objective of the entity is to serve aid
to people suffering from cancer.
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P3 Description on the relation between organisational function in order to attend the goals and
mission.
The main motive of the firm is to run their business activities in the effective manner so
that they are able to attend the goals and objective of the business enterprise. These kinds of
activities are helpful in order to maintain the customer momentum in the market. In market there
are various kinds of hindrance the organisation need to take effective steps so that they can cope
up with all the barriers (Roper and Davies, 2010). In this manner there are basic three structure
are given such are as-
Functional structure- in this the organisation activities are divided into various separate
departments in order to provide the flexible services. Under this department there are various
kind of firm such are as marketing department, human resource department, production
department, sales department and information technology department. In this department the
each individual are working they are connected to each other so that firm can able to provide
satisfactory services to the customers. By maintaining coordination within firm activities they
can able to earn high amount of profitability and productivity. With the help of this kind of
activities business enterprise can able to maintain the brand image in the market. In order to
make this all process effective they should frame those strategies with the help of which they can
able to provide satisfactory services to customers (Teece, 2010). This all department are
interrelated to each other and it is essential to determine the goals and objective of business
enterprise.
Divisional structure- In this all departments are working in the individually manner in order to
carry the operation of business operation in smooth and effective manner. They are having
separate manager the business enterprise so that all employees are able to run the operation of
business in smooth manner. In this way they need to report each individual separately about the
performance of the departmental function in the expertise manner. The national heal service is
working with the division structure. They have divided the responsibility of each employee in
order to particular heal sector. This is helpful in order to provide good services to customers.
They need to exchange the information between the each department so that they can work
effective by improving their work efficiency. By taking effective decision they can maintain the
firm profitability. The external and internal management need to run their activities in effective
manner so that they are able to run their business operation in the efficient manner without any
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issue .in this all work can be divided as per the efficiency of each unit (Thompson and
McLarney, 2017). The bakery item for one department, food etc. and clothing for another units.
By working in the optimum utilisation of resources they are able to attend the desired goals and
objective of the business enterprise. In order to enhance the growth of the firm they are able to
maintain the growth and development of business activities.
Matrix structure- This all things is need to be implement effectively so that there can be
flexibility in the operation of business so that they can run their function in the expertise manner.
In this the all work should be allotted as per the skills and effectiveness of the business
enterprise. By proper teaming up and effective coordination the form is able to cope up with
many issues in order to overcome from the internal weakness. The ineffective management can
bring hinder to the working of the business enterprise. They need to make systematic strategies
so that department can run their activities in expertise manner. By proper interaction with all the
person they can attend the desire result.
Flat structure- The Mark&Spenser follows flat kind of organisational structure. They are having
limited levels of management between administrative employees and front line employees. This
kind of structure are working under pyramid shape. This kind of structure is need to be followed
in order to have effective decision making process.
P4 Define positive and negative effect of the micro environment on business oppression of
M&S.
The Micro environment is related to all external factors such are as Political, economical,
social, legal and environmental. By maintain all the function in effective manner they are able to
main the growth to the firm. With the help of the pestle analysis the negative and positive effects
on the working of the organisation can be known. This organisation is distributing its services as
the food and clothing company in this manner they can able to know the various kind of
influences over the operation of business. The firm need to carry all the business activities in
effective manner in order to cope up with this they need to analyse all the factors which are
impacting the performance of the business in large manner (Thompson and McLarney, 2017).
The factors assist the management in having simple and easy framework in accordance to
economic, legal and social factors. This kind of situation are very helpful in order to have idea
about the internal and external weakness and strength of the firm. The development mange of the
organisation needs to keep his check on the firm activities so that they all are able to main the
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profitability of the in effective manner. The organisation need to take effective steps in order to
implementing changes according to the fluctuation are not easily adaptable for employees for the
development manager organizes training and development session which is time taking process.
P5 Description on the external and internal analysis of the business enterprise.
These factors are working as the tonic to the working of the firm. this is very effective in
order to know the loopholes, strength and various things, in order to make this all process
effective the effect on the operation of the business can be known. This are very helpful in order
to take effective evaluation of the internal factors so that firm is able to earn large amount of
profitability and productivity (Teece, 2010). This all can be defined in the following manner are
as-
Strength- The one of major strength of firm is to provide large variety of the services to the
customer with the various products in qualified manner so that all consumers are able to attract
with services. This firm is having large amount of market share. This organisation is having
profitability from last five years in order to cope up with this all function the firm need to take
the innovation procedure. The business enterprise is taking effective steps in order to focusing on
providing the appropriate working environment to employees with advanced working condition
which encourages the morale of employees. They are providing good salary to their employees
so that all workers are contributing their services in the effective and efficient manner.
Weakness- the current market is rapidly changing as it is becoming very difficult to cope up with
all the need of the customers (Roper and Davies, 2010). They are having various demands as per
the development in business. In addition to this organization is offer limited products for teenage
generation which is impacting the sale growth of the market. Further, the company offers
discounts and schemes on products according to its sales not keeping in mind the customer
expectation and trends which impact its ability of generating revenue. This kind of activities is
affecting the operation of business in the large manner. This kind of situation is hampering the
growth of the business enterprise.
Opportunities- The main opportunity of the M&S is to adapt various changes in order to framing
up of the effective strategies so that all can work in the expertise manner. The firm is taking
various kind o innovative services in order to earn large amount of profitability so that they can
maintain the profit scale of the organization.
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Threat- In this they need to take effective steps in order to improving the operation of the
business. This entity is having various competitors in order to cope up with this they need to take
essential steps. The firm needs to bring changes in the pricing strategies so that the negative
impact on the activities of the organization can be reduced.
Moreover, the company can know the internal factors which are affecting the oppression of the
business in the large manner.
Political- This kind of factors are influencing the oppression of the business in large manner.
This is very essential in order to regulate and operate the business function and this all will help
to protect the rights of various individuals. This all changes are need to be implemented
effectively which is inclusive of various things such are as wages, regulation, safety measures
and various kind of other things.
Economical- the variation in the economic factor are causing negative effect on the growth of the
firm. The company needs to deal with all the changes like inflation, money, tax rate in order to
minimize the effect of the business oppression.
Social- There are various changes can be seen in order to known the effect on the strategies of he
business enterprise. The society need to provide quality of products to the customers. In order to
cope up with this all process they need to frame those strategies with the help of which firm are
able to increase the profitability and productivity of the business enterprise.
Technological- In order to use of the modern equipment they can able to produce those products
which can able to satisfy the need of the person. In this manner they can take the innovation due
to this the large number of customers are attracted to the firm activities.
Legal- The various rules and regulation need to be implemented in order to run the smooth
function in the business enterprise. With the help of legislative body they can able to give their
major focus on the natural resources and renewable resources of the firm.
Environmental- The organization need to run their activities in that manner which is not harming
the process of surrounding. They need to use those resources which are environmental friendly.
These kinds of activities are effective in order to maintain the rand image of the organization.
P6 Example with consideration of internal and external factors of organisation.
Being the development manager of the M&S I have identified that it is essential to
considered the internal and external factor of organisation in order to run the smooth functions.
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This all are helpful in order to cope up with the changing trends in the market. This kind of
activities are helpful in order to attract the number of person in the market with the help of this
firm is able to large amount of profitability and productivity. The company is formulating
effective pricing strategies in order to compete with the other firm. In this manner they are able
to achieve the maximum market share with the large amount of profitability. This kind of
activities will be helpful in order to maintains the brand image of company. With the help of
technology advancement they are able to produce innovative product. This is helpful in order to
attract the customers in market. The technology can enhance the profitability graph of enterprise.
The heavy cost of product can influence the customers in market. With the help of modern
equipment the labour cost of firm can be reduced. With the help of technology there can be
improvement in the quality of product in market. In this manner with the help of internet
technology there can be approach more number of customers.
CONCLUSION
Hereby it has been concluded that business and business environment is related to the
internal and external factor of organization. In this all the factor is out of the control such are
defined as customers, management, employee of the firm etc. in this assignment the following
factors are considered which can effect on the working of the enterprise in the large manner. In
this the swot and pestle analysis is also given in order to make effective analysis of internal as
well as external factors. The main motive this organization is to provide satisfactory products to
the consumer so that they can high amount of profitability and productivity.
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REFERENCES
Books and journals
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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.
Ramanathan, U., Bentley, Y. and Pang, G., 2014. The role of collaboration in the UK green
supply chains: an exploratory study of the perspectives of suppliers, logistics and
retailers. Journal of Cleaner Production. 70. pp.231-241.
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