Business Models and Innovation

This assignment explores the crucial relationship between business models and innovation in a constantly evolving business landscape. It requires students to delve into various theoretical frameworks, analyze real-world examples of business model innovation, and evaluate the impact of environmental factors on this process.

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types and purpose of business organisation.....................................................................1
P2 Size and scope of business organisations..........................................................................3
TASK 2............................................................................................................................................3
P3 Social relation among various institutional purpose, their link with framework and
objectives................................................................................................................................3
TASK 3 ...........................................................................................................................................5
P4) Positive and negative striking of macro surroundings on business concern firm............5
TASK 4............................................................................................................................................6
Covered in PPT.......................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................8

INTRODUCTION
Business environment is an intermixture of those aspects which can hamper overall
organisation in direct or indirect manner. These factors can be internal and external. In this
perspective, managers have to analyse these elements which will put a huge impact on growth
and success of corporate association (Bryman and Bell, 2015). The present assignment is based
upon Mark and Spencer; it is one of greatest retailer seller which deals in clothing, grocery,
luxury and home products. The overall revenue of the firm is £10,622 million. The prime
objective of Mark and Spencer is to achieve customers' interest by providing them qualitative
products and services. Apart from this, the report will be defined types, purpose, size and scope
of business organisations. Later, it will explain how organisational structure is interlinked with
its goals and objectives. SWOT and PESTLE analysis is conducted on the basis of internal and
external analysis.
TASK 1
P1 Types and purpose of business organisation
In this modern era, there are different types of business organisations which deals in
various activities and operations. On the basis of working activities, these associations are
classified into three categories, such as- public, private and voluntary sector.
 Public sector – Public sector organisations, plays an imperative role in growth and
success in an economy. It promotes balanced regional development in a country. In UK,
there are several public sector organisations which helps in providing job opportunities to
people in order to improve their living standard. It is owned and controlled by public
authorities, i.e. central, state and local government to the extend of 50% or more
(Casadesus-Masanell and Ricart, J2010). The products and services of public sector
organisations are tax free and easy to use. For example- Mark and Spencer is one of the
public sector company; it was founded in 1884. The firm has currently 979 stores in all
over the world in which 600 sells food items. The firm is listed on the London stock
exchange.
Purpose – The main purpose of the company is to generate high profit and sales by
delivering qualitative and value added products to customers. Apart from this, Mark and Spencer
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is also focused on providing training and development to its employees in order to gain higher
productivity and performance level.
Legal structure – The firm follows matrix organisational structure. It is grid like
organisational framework that allows firm to identify multiple business dimension by using in an
effective command structure (Chavis, Klapper and Love, 2011). The CEO of the company is
liable to take all important decision or conclusions.
 Private sector – It involves those organisations which are owned and controlled by
individuals as well as group of people. There is no involvement of any government. In
private business entities, only managers are capable to take all important decisions. In
UK, there are different private organisation who are able to provide well qualitative and
value added products to customers. Basically, the main aim of these companies to attain
and retain customers for long term period. For example- Starbucks is considered as
private business organisation; it is an American coffee brand. As per recent data, the firm
is operating around 24000 over the world. Starbucks was established in 1971 and now its
overall revenue is $19.16 billion.
Purpose – The working activities of Starbucks are tend towards providing higher
satisfaction level to customers. In this perspective, the firm is trying to improve the quality of
coffee; it also has been opened several restaurants at local places in order to attain and retain
customers for long time of span.
Legal structure – The firm is following divisional organisational structure, it classify the
functional areas of the company into different divisions. Each unit is equipped with its own
resources. Voluntary sector – It refers those units which works for social welfare and services.
Voluntary sector is also known as third party organisations which is funded by public
funds (Chesbrough, 2010). NHS is one the largest social service sector; it deals in
providing health services to people as they can live better live.
Purpose – The main purpose of the voluntary sectors is to serve better to societies for
their growth and development.
Legal structure – There is no specific legal structure for voluntary organisation; it is
depended upon the size of the company. In addition, volunteers, trustees and other people are
liable to take any important decision.
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P2 Size and scope of business organisations
On the basis of size and scope business entities are divided into three types: - public,
private and voluntary.
Public sector – These organisations are the most imperative part of an economy. It
develops financial growth as well as GDP rate of the country in an effective manner (Craig and
Campbell, 2012). Mark and Spencer is the great brand of retailing services; it deals in different
countries all over the world. The annual profits of the company is £115.7 million whereas its
operating income is £690.6 million. Along with this, there are over 90000 employees are
currently working it.
Goals and objectives – The main goal of the company is to be standard against which
others are measured. Another objectives of the Mark and Spencer is, to increase sales and market
share and becoming world's sustainable retailer.
Private sector – Private sectors also an important part of an economy; it focuses on
improving quality of their products and services. Starbucks is the famous brand of coffee which
deals over the globe. The net income of the company is US$2.76 billion; there are over 200000
employees are currently working with it.
Goals and objectives – The main goal and objective of Starbucks is to become world's
largest coffee brand. Its key objective is to achieve high competitive advantage and market
growth by wining customers hearts.
Voluntary sector – Voluntary sectors work for improving the living standard of people
(Gecevska and et. al., 2010). There are around 1.5 million are working with NHS (national health
services. It is funded by 211 clinical groups; the annual funds of the organisation is 2.5 US
million.
Goals and Objectives – The main goal and objectives of NHS is to deliver effective
health care services to people as they can live healthy life style.
TASK 2
P3 Social relation among various institutional purpose, their link with
framework and objectives
In the market place, every business works for profit but their main aims and objectives
are much different from another companies and thus they run their tasks and objectives
according to their process (Hamilton and Webster, 2015). Marks and Spencer which is an UK
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based company is privately owned but they have operation in public sector as well and their staff
member's strength is about 110,000 who works in different sector with the common aim towards
company. They have 1000 of supermarkets which mainly consist of food products at cheap price.
Targeting the middle class people has become their strength in executing their operations as per
their planning.
Every fundamental function is interrelated with one another while taking place in aims
and objectives of the firm and the effective way in which they needs to be attempted via tools
and techniques. Fundamental functions happening for M&S are stated below: Finance: This is the uttermost approach of an organisation as it is considered as roots of
the firm which provides enough resources for managing all the process and operations. It
provides funds and stock so that tasks and activities can be attained successfully. This is
highly importance factor which is available at every corner of the organisation because it
is required in every level so that operations can be conducted in effective manner
(Klapper and Parker, 2010). Production: High quality products can only be observed when production department
works with high quality raw material. Finance department is interlinked with production
department as raw materials with the high quality can be only be brought when finance
department provides funds to the production department. M&S works on the same pattern
and thus they produce goods in effective manner.
 Sales: Sales is basically dependent on the promotion skills of the company. Promotion
can be done in various ways like advertisement in newspapers, internet and many more
but promotion requires funds and budget which is allotted by the finance department.
Therefore, accurate tools and techniques needs to be used by M&S so that results can be
observed in their favour.
Plans and objectives basically depends on upon the organisation execution ways in which they
will conduct operations and achieve the desired outcomes (Klapper, Lewin and Delgado, 2011).
If the company expects to achieve the targets in allotted time then they need adopt various
effective structures which can ensure the growth and success. M&S'S managers have duty in
which they have to make sure that certain rules and regulations are being followed in order to
main effective working environment.
Various types of organisation are:
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Organisation Objectives Structure
M&S Business process is operating out its
business with their focus on providing
products and services to the customers by
providing maximum satisfaction level.
From 1884, company has been dealing in
retailer ship and supermarket chains with
the aim of acquiring large amount of
customers in middle class so that they can
experience luxury products in budgeted
price and thus long lasting relationship with
customers can be established (PESTLE -
Macro Environmental Analysis. 2015).
To maintain the productivity
and profitability it is necessary
to make effective framework
of plans and thus effective
working environment can be
created. To make the duty and
its steps clear to the employees
M&S have developed specific
structures which can be
executed for better outcomes.
TESCO Due the dynamic nature of the market,
objectives are made for short span of time.
Firm mostly makes out short objectives and
allot the task to the employees for short
period of time (Kolk and Van Tulder,
2010).
TESCO mainly focus on cost
leadership in which they focus
on providing high cost
products so that luxury feeling
can be taken by the customers
by the high quality. High
quality products are beingf
needed so that TESCO can
obtain their desired aims and
objectives in effective manner .
TASK 3
P4) Positive and negative striking of macro surroundings on business concern firm.
There are two major aspect which has several factors who direct or indirectly affects the
organisational performance. Micro and macro are those aspects in which whole organisation
works upon and are included in that. Macro environment refers to the boundary limit of the
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organisation under which companies work with outside market (Teece, 2010). This creates direct
or indirect impact on the operations of the business. External factors which are associated with
the business process are PESTLE , SWOT etc. Micro environment refers to the situation in
which company's internal environment is related. Micro factors have huge impact on the
operation which are conducted internally and are the cause behind the actual growth and success.
Macro environment consist of analytical tool in which PESTLE (means Political, economical,
social, technological, legal and environment factors.) (Trkman, 2010). They are explained below: Political factors: To maintain the legal environment in the business process, Govt.
generally establishes rules and regulations under which all the business firm has to work
for gaining success and growth. This way country will also get benefited. For M&S this
factors it highly important as being a global company they have to work according to
various rules and regulation of different countries. So political factor will affect the M&S
if changes are done in Govt. policies. Economic factors: Mainly every organisation focus on their economic condition which
needs to be performed in effective mode. The higher the satisfaction level of the
customers, the more success will be grabbed by M&S. There are many issues like
unemployment, high tax rate, debt level of customers which can be observed in modern
scenario (Vitale, Giglierano and Pfoertsch, 2010). So higher authority needs to analyse
those factors which can affect the production and thus change them in positive manner.
 Social factors: This kind of approach is highly related with the trend of market and
standard of people and this creates high impact on the food industry (Wheelen and
Hunger, 2011). M&S functions their business operations as per the culture of present and
targets customer on the basis of gender, age and population growth.
TASK 4
Covered in PPT
CONCLUSION
From the above mentioned report, it has been summarised that business environment
involves two aspects, such as- internal and external factors. Internal factors involves –
employees, management, shareholders etc. whereas external factors are – political,
environmental, social etc. The report is defined various types of business organisations, such as-
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public, private and voluntary. Along with this, all these sectors put a huge impact on an economy
in an effective manner by rendering job opportunities to people. Internal analysis can be done
through SWOT analysis and external can be done through PESTLE analysis.
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REFERENCES
Books and Journals
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Casadesus-Masanell, R. and Ricart, J. E., 2010. From strategy to business models and onto
tactics. Long range planning. 43(2). pp.195-215.
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.
Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range
planning. 43(2). pp.354-363.
Craig, T. and Campbell, D., 2012. Organisations and the business environment. Routledge.
Gecevska, V. and et.al., 2010. Product lifecycle management through innovative and competitive
business environment. Journal of Industrial Engineering and Management. 3(2). pp.323-
336.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Klapper, L. and Parker, S., 2010. Gender and the business environment for new firm creation.
World Bank Research Observer. 26(2). pp.237-257.
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 UK.
Kolk, A. and Van Tulder, R., 2010. International business, corporate social responsibility and
sustainable development. International business review. 19(2). pp.119-125.
Teece, D. J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Trkman, P., 2010. The critical success factors of business process management. International
journal of information management. 30(2). pp.125-134.
Vitale, R. P., Giglierano, J. J. and Pfoertsch, W., 2010. Business to Business Marketing: Analysis
and Practice in a Dynamic Environment.
Wheelen, T .L. and Hunger, J .D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Online
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PESTLE - Macro Environmental Analysis. 2015. [Online]. Available through:
<https://www.oxlearn.com/arg_Marketing-Resources-PESTLE---Macro-Environmental-
Analysis_11_31>. [Accessed on 22nd November 2017].
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