Business Environment Analysis and Research

This document provides a comprehensive list of business environment topics, including books, articles, patents, and conference papers. It covers various aspects such as the impact of the business environment on young firm financing, broadband network systems, and internet banking adoption. The resources include research papers on external and internal factors affecting businesses, leadership skills in simulated environments, and corporate responses to sustainable development. This document is suitable for students looking for past papers and solved assignments on business environment topics.

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 & P2 covered in PPT.........................................................................................................1
P3 How organisational structure is linked with its objectives................................................1
TASK 2............................................................................................................................................3
P4 Positive and negative impact of macro environmental factors.........................................3
P5 Internal and external analysis to identify strengths and weaknesses................................4
P6 Relationship among strength and weaknesses with macro factors...................................6
CONCLUSION................................................................................................................................6
REFERENCES ...............................................................................................................................8

INTRODUCTION
Business environment is the sum total of all elements of the organisation which highly
influence its operations and functions, it is dynamic in nature. This also forecast the future
conditions of the firm. Along with this, business environment is a combination of all internal and
external factors that impact upon profitability, performance and growth of the company
(Drucker, 2017). The project report is based upon Mark & Spencer, that deals in clothing, luxury
and food products. At present, M & S has 689 stores across UK and recently it is listed on the
London stock exchange. Along with this, the present report explains various types of business
organisations, it also involve their size, scope and purpose as well. There are diverse functions of
the company that are interrelated with its goals and objectives, have also been discussed in this
report. Apart from this, readers will also come to know about positive and negative aspects of
macro environmental factors, internal and external analysis of the company has also been done in
this assignment.
TASK 1
P1 & P2 covered in PPT
P3 How organisational structure is linked with its objectives
Organisation structure of the business entities helps in defining its hierarchy. It is also
assistive in identifying functions and operations of the company in which it operates in order to
achieve goals and objectives. In Mark & Spencer, organisational structure helps in distributing
roles and responsibilities to each member and control upon all activities as they are going in
right direction. Along with this, it also helps in determining the flow of information at each and
every level within the commercial enterprise. For example – in centralised framework the
decisions are taken by top to bottom levels whereas in decentralised organisations they are
created at diverse units or levels.
There are three types of organisational structure, such as – divisional, functional and
matrix. But multinational companies are used matrix organisational because helps in placing
workers from their functional areas and allows them to perform in a specific field (Chow and et.
al., 2011). This kind of framework combines two different departments, such as functional and
divisional. For example- during new product development process, marketing and production are
combined with each other so as company can produce better for its customers. Matrix
organisational structure also helps in effective and efficient uses of resources in order to gain
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maximum benefits. Its main advantages are helps in encouraging and motivating employees as
they can exchange new ideas and practices. This can also increases communication process
across the company.
Apart from, in organisational structure there are various departments are performed to
accomplish aims and objectives of the business entity. There are given roles and responsibilities
of these units and their link organisational structure: - Finance department – Finance is the backbone of business organisations, it the factor by
which companies can stay for long term in competitive market. In Mark & Spencer,
finance department helps in preparing its financials statements i.e. trading and profit &
loss account, balance sheet and ledgers etc. Finance manager of the company formulate
budgets that helps employers in order to take initial corrective actions. Such person also
evaluate financial condition of the company, it involves that how the firm trades and
spends upon its activities. If the market position of the firm is good as it can easily extend
its market share and area. Human resource department – The unit is concerned with resolving all problems and
issues which relates with maintaining employees of the company. Human resource
manager of Mark & Spencer is amenable to handling all grievances among staff
members. It is core responsibility of that department is to provide healthy and safe
working environment to people as they can perform better. HR person identify the well
skilled and talented people for the organisation, he also helps in understanding the
training and development of current employees (Elliot, 2011). If all those things are
fulfilling positive then any business entity can easily achieve its goals and objectives. Marketing department – This department helps to know the market position in terms of
competition. Marketing managers develop various strategies and policies that how to
promote products and services of the company. This will aids in attaining many
customers in target customers as to maximise the sales and profits of cited firm.
 Production and operation department – Production department set the targets for
manufacturing process of the company (Radušienė, Karpavičienė and Stanius, 2012). It
plan geographical location of the factory, buying raw materials or further equipments,
capacity planning of employees so as to create the schedule of product's production. The
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main motive of production department is to produce best and something novel for
customers which fulfils their needs and wants.
TASK 2
P4 Positive and negative impact of macro environmental factors
Macro environmental factors refers all those external elements that persuade decision
making capabilities of the company. These uncontrollable components also impact upon
performance as well as strategies of the firm. In Mark & Spencer, sometimes these factors
diminishes the success of marketing campaigns, therefore while developing a strategy for the
form managers needs to monitor such elements effectively.
Positive and negative impact of macro environmental factors, such are described as under: - Political factors – Government of any country plays an important role in the growth and
success of its business organisations. It involves in setting taxes, environmental rules,
labour policies etc. Apart from this, in Mark and Spencer it helps in regulating health and
safety laws of employees. If companies are not follows these rules as they can be fined or
close down in some cases (Chun, Golomb and Turk-Browne, 2011). The main
advantages of political factors are – it helps in assessing those implication in which a
company performs. Apart from this, the main disadvantage is- if the tax rate are increased
then business organisations cannot able to take loans or credits from banks. This will also
impact on pricing policies as the prices of goods will goes down. Economical factors – It involves all economic issues, such as – unemployment, inflation,
interest rates etc. Economic factors considers future monetary growth and industrial
outlook. Mark and Spencer is faced competition by its rivals, and their financial resources
as well as services Due to economic crisis in 2008 – 2009 people was not able to spend
more money on clothing and food products. Many retailers were closed their stores due to
low demand; the sales of M & S were also decreased by 20% and jobs cut by 2%. almost
18500 employees were fired from their employment. Social factors – Changes in choices and tastes of buyers, is very normal. This can shows
the opportunities and threats for the firm. In UK, customers are loyal towards the brand,
but sometimes due to competitive pricing strategy, these factors become the barriers for
the company. Mark & Spencer has many competitors in market, if they deliver branded
goods at low prices then the cited will losses its clients (Galuscak and et. al., 2012).
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 Technological factors – Such components relates with development or advancement in
technology. In recent years, many changes are came in tools and techniques of
production, i.e. existence of 3D technology, wireless charging, automation, engine
efficiency etc. Technological factors helps in providing a mechanism that exploit various
opportunities for the company. Legal factors – UK's government has made some laws and regulations that is needed to
be followed all business organisations. The positive impact of legal factors is that it helps
in completing all activities or practices of the firm in legal manner. Apart from this, the
disadvantage is, these laws and regulations are changed every year then companies needs
to change their strategies or plans accordingly with that, it cannot proper concentrated
towards producing quality products for customers.
 Environmental factors – It encompasses that, business organisations needs to change
their raw material that are being used in production. Input should not be harmful for
environment. Mark and Spencer has also regulated its own environmental policy, it
promotes the use of green products and services.
P5 Internal and external analysis to identify strengths and weaknesses
Managers of Mark & Spencer are conducted internal and external
analysis in order to develop strategies that are helpful for it to accomplish
goals and objectives. For this purpose, SWOT analysis is conducted in an
adequate manner, it involves strengths, weaknesses, opportunities and
threats of the company.
SWOT analysis of Mark & Spencer: -
STRENGTH
 Mark and Spencer is a popular clothing
brand which has wide variety of
products and services. It has various
outlets so as company can grow in its
potential market and be able to deliver
valuable trades to the public.
 Mark & Spencer has high brand value
as it served good quality products in its
WEAKNESSES
 The company has faced strong
competition with other brands.
 Mark and Spencer needs to protect
itself from misuse of brand and
products.
 There are many new multinational
corporations which provides more
wages and salaries to employees as they
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past years. When it comes to the sales,
the firm has huge range of loyal
customers who helps it in the growth
and success (Raza and Hanif, 2013).
 It has effective cash flow position in
market, that is very essential to run a
business for long term. M & S is
located is 52 countries and it also own
properties in many countries so as the
base of organisation is also very strong
that helps in covering a large market
share.
 The company is focused upon
expanding its supply chain so as access
to a large number customers. Effective innovation and alliances with
other nations are also enable the wider
presence of the company across the
world.
can easily attain towards them. So as it
is tough for Mark & Spence to retain
their staff for long term period.
OPPORTUNITIES
 Technological advancement is great
opportunity for the company, as if
company is tend towards website
development so as many customers can
get knowledge about it. New market innovations offers more
profits and higher to Mark and Spencer.
Market segment is a process through
which buyers are divided into different
groups or categories. It makes easier for
managers as to know the needs and
THREATS
 Competitive pricing strategy is a big
threat for the company.
 Diverse government rules and
regulations that impact upon the sells in
other nations (Fernando, 2011).
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wants of their target buyers.
P6 Relationship among strength and weaknesses with macro factors
It is the main obligation of managers is to develop strategies before executing nay plans
across the organisation. This will assists to Mark and Spencer as to deal with those factors that
would put an impact upon its productivity and performance. Hence, it can be said it, external
macro factors have their own strengths and weaknesses. If management of the company can
measure in an effective than it will be good for the expansion of the firm.
Below described the relationship below strength and weaknesses of Mark and Spencer
with its macro environmental factors: -
Strength – Cited company has good brand value and its also has many loyal customers who are
willing to purchase its products or mechanism. But due to political factors, there is change upon
pricing policy of the company and its raise up its prices. Some customers are not able to pay
high prices upon their food products. Hence, political factors might be reduced the sale of the
company (Cuervo‐Cazurra, 2011).
Weaknesses - Apart from this, new innovations and strategic alliances is another strength
of the company. In the technical aspects, all business organisations are used new and effective
techniques for producing different products. So as it is not easy for companies as to retain their
buyers for very long. In these days, some people make fake products by using the name of a
branded company, through which companies may losses its customers as well as their trust,
morale and values. Therefore, mark and Spencer needs adopt legal laws and regulation that helps
in protecting rights from strangers.
CONCLUSION
As per the above report, it has been founded that, business environment has a significant
pillar that save organisations from its internal and external elements. The present report has
discussed various types of business organisations. Roles, purpose, mission, vision and
stakeholders of public, private and voluntary organisations are also explained in this report.
Apart from this, the assignment refers that organisational structure of the company is linked with
goals and objectives. Positive and negative impacts of macro environmental factors and SWOT
analysis of Mark and Spencer is also done in this document.
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REFERENCES
Books and Journal
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Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic
Development and Cultural Change. 59(3). pp.609-647.
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.
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.
Chow, A.T., and et. al., 2011. Broadband network with enterprise wireless communication
system for residential and business environment. U.S. Patent 7,944,948.
Chun, M. M., Golomb, J. D. and Turk-Browne, N. B., 2011. A taxonomy of external and internal
attention. Annual review of psychology. 62. pp.73-101.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Cuervo‐Cazurra, A., 2011. Global strategy and global business environment: the direct and
indirect influences of the home country on a firm's global strategy. Global Strategy
Journal. 1(3‐4). pp.382-386.
Drucker, P. F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Elliot, S., 2011. Transdisciplinary perspectives on environmental sustainability: a resource base
and framework for IT-enabled business transformation. Mis quarterly. s35(1). pp.197-
236.
Fernando, A. C., 2011. Business environment. Pearson Education India.
Galuscak, K., and et. al., 2012. The determination of wages of newly hired employees: Survey
evidence on internal versus external factors. Labour Economics. 19(5). pp.802-812.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Radušienė, J., Karpavičienė, B. and Stanius, Ž., 2012. Effect of external and internal factors on
secondary metabolites accumulation in St. John’s worth. Botanica Lithuanica. 18(2).
pp.101-108.
Raza, S. A. and Hanif, N., 2013. Factors affecting internet banking adoption among internal and
external customers: a case of Pakistan. International Journal of Electronic Finance.
7(1). pp.82-96.
Siewiorek, A., and et. al., 2012. Learning leadership skills in a simulated business environment.
Computers & Education, 58(1). pp.121-135.
Welford, R., 2013. Hijacking environmentalism: Corporate responses to sustainable
development. Routledge.
Wetherly, P. and Otter, D. eds., 2014. The business environment: themes and issues in a
globalizing world. Oxford University Press.
Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic management and business policy.
Pearson Education India.
Zott, C., Amit, R. and Massa, L., 2011. The business model: recent developments and future
research. Journal of management. (4). pp.1019-1042.
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