Business Environment and Operations Strategy

The assignment provided is a collection of research papers and articles on business environment and operations strategy. It includes topics such as systems thinking, business ethics, environmental uncertainty, and business intelligence in enterprise computing environments. The papers cover various aspects of business management, including critical success factors for Chinese SMEs, business-to-business relationships, and supply chain management. The assignment is likely intended for students in a business or management course, and provides valuable insights into the complexities of modern business operations.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Different purpose and type of organization ..........................................................................1
P2 Size and Scope of different type of organization ..................................................................3
TASK 2............................................................................................................................................4
P3 Inter-Relation between organizational objectives and functions ..........................................4
..........................................................................................................................................................6
..........................................................................................................................................................6
TASK 3............................................................................................................................................7
P4 Application of PESTLE framework and its positive and negative impact ...........................7
P5 Internal analysis to identify strength and weakness of firm .................................................8
TASK 4............................................................................................................................................9
P6 Link between strength and weakness with macro factors .....................................................9
CONCLUSION .............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
The term “Business Environment” comprise of all internal and external variables that
impact business exercises and working of business. These factors includes government,
technological factors, stakeholders, consumers, employees, legal and environmental factors that
exceptionally impacts activities of an undertaking in both negative and positive way (Asif,
Garvare and Ahmad, 2011). It is important for every organization to have proper understanding
regarding these forces so that they can formulate business strategies and policies accordingly.
The present assignment is based on Mark and Spencer which is a UK based retail store that
mainly deals in providing clothes, grocery products and luxury food items to large number of
customer. It include how different types of organisation vary from each other in terms of size,
scope, and purpose. It also covers how organizational function and objectives are inter-linked.
Along with this PESTLE and SWOT analysis is taken into account for determining its positive
and negative impact.
TASK 1
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TASK 2
P3 Inter-Relation between organizational objectives and functions
Mark and Spencer is a leading British retailer which offers different items around the
world. Principle target of organization is to produce high benefits and also contribute in the
public eye welfare (Bhaduri and Ha-Brookshire, 2011). For adequately addressing necessities
and prerequisites of clients, enormous endeavours are made by firm. In an association, a few
offices are working together, for example, generation, human asset, promoting, fund and so on.
Every office perform distinctive parts and duties in any case, work for the normal reason, that is,
achievement of association's destinations in particular time frame. In Marks and Spencer, these
divisions works all things considered for performing capacities and activities easily.
Human Resource Management Department: It is one of the real division of an associations
which performs different essential capacities. Commitment of this practical division is high in
development and accomplishment of organization. Directors have pivotal impact in deciding
worker needs of firm . They distinguish current needs and foresee future one to select and
employ right number of individuals inside organization. Choice of candidate is done based on
their capabilities and abilities. People with extraordinary experience and information is procured
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so objectives and targets can be refined effectively. They likewise render preparing to their
employees so that, they can bargain successfully with challenges. A few exercises are led by HR
of M&S which helps in expanding commitment of representatives in exercises of organization.
This will build group working and leads the firm towards effective fulfilment of goals of
organization (Cavusgil and et. al., 2014).
Finance Department: Fund is fundamental segment by the assistance of which exercises and
tasks are performed successfully. This department play significant part in development and
achievement of organization. Each firm needs to keep up sufficient back so that at the season of
possibility, firm can without much of a stretch deal with their working. In Marks and Spencer,
back director has the obligation to allot stores for different exercises to various offices and figure
spending plan. They guarantee to keep up proper measure of cash with the goal that everyday
tasks run adequately (Chetwood and et. Al, 2014). On the off chance that sufficient assets are
accessible with firm, it will aids achievement of objectives and targets.
Marketing Department: Department of marketing helps with upgrading deals and expanding
benefits of organization. Research is directed by advertising directors for getting data seeing
winning business sector slants and needs and necessities of clients. Viable designs and systems
are composed and executed by them so as to advance their merchandise and ventures in
showcase. M&S manager influencing utilization of different special instruments keeping in mind
the end goal to impart its esteem and advantages to clients. This will help firm in achieving high
development and achievement and empowers it to accomplish targets adequately. Effective
marketing aid in building extensive shopper base and helps in increasing high loyalty of
customer.
Organizational Structure:
 Function based: Activities and capacities are the fundamental premise on which branches
of firm are separated. Fund, human resource,marketing, generation and so on are
principle division premise.
 Geography based: A specific locale or region is the premise of division. Needs and wants
of clients living in different locales are distinguished by firm with a specific end goal to
viably meet them (Crane and Matten, 2013).
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 Product based: Products that are offered to clients are the premise on which division is
finished. A few merchandise are offered by Marks and Spencer to their clients are luxury
food products, clothes etc.
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TASK 3
P4 Application of PESTLE framework and its positive and negative impact
Political Factors: Usually company operates in more than one country, this variable
exceptionally impacts on working of business. Factors like stability of government, tax policies,
legislation, exercise duty etc. impact overall working of the company.
 Positive effect: Effective policies and strategies can be detailed by form's managers by
thinking about this factor. These arrangements and plans helps with achieving goals of
organization (Gharajedaghi, 2011).
 Negative effect: Strict government directions affect business tasks of firm adversely. One
of the factor that impact gainfulness of organization is increment in impose rates.
Economical Factors: Level of development of every nation is diverse where firm offers its
items. By this, it can be comprehend that economy of every nation is unique. Income, exchange
rate, deflation, interest rate and so on are the factors incorporates into efficient variables.
 Positive effect: Good monetary state of nation helps in development and growth of
business and enhance its business figure.
 Negative effect: High deflation rate countries specifically impact the requests of results of
organization. Less wage of individual impact demand of goods in a negative manner.
Social Factors: It includes culture, religion, behaviour, income and value of purchasers that
impact working of Marks and Spencer. The figure that impact both positive and negative way is
training of people.
 Positive impact: If there are more young people in nation, it will put constructive effect
on business. It aids extension of business tasks and expanding offers of products of
organization by the use of online technology.
 Negative effect: Lack of training is one of the factor that put high effect on exchanges of
business.
Technological Factors: With the development of high end technology, it become easier for firm
to gain high competitive edge in the market. Organization needs to keep themselves aware about
latest and advance innovations.
 Positive impact: Adoption of new innovation encourages in enhancing nature of items
which at last increment deals and productivity of organization.
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 Negative impact: Use of old and out of date innovation impact activities of business in
negative way. It will prompts increment in cost of generation and drop down the
proficiency of employees (Gilboy , 2016).
Legal Factors: These variables incorporates different laws and directions that are made by
government. In each nation, there is an alternate lawful condition. Agree to every single
legislative direction helps in successful running of business activities.
 Positive impact: For smooth running of business operation and activities it is important
for a company to follow all laws and legislation composed by Government.
 Negative impact: Ignorance to these laws, negatively affect working of M&S.
Environmental Factors: It is the obligation of organization to keep their environment clean.
Firm should be receive different ways that helps with securing condition.
 Positive impact: M&S have introduced its go green plan called “PLAN A” keeping in
mind to protect and promote environment (Kian Chong, Shafaghi and Leing Tan, 2011).
 Negative effect: Overseeing of natural laws may brings about feedback of society look by
organization. It makes negative picture of firm in customer's mind.
P5 Internal analysis to identify strength and weakness of firm
Strength:
 Most powerful brand of retail with a top of the mind recall. Majority of its revenues are
generated by operating in different countries of UK.
 Sell product under their own private label. Apart from this they are also selling products
of others brands as well.
 Gained popularity for selling “value for money goods”. It means the company is well
known for providing such goods and services that meet diverse needs and requirement of
customer in an effective and efficient manner.
 High customer loyalty because company is altering its products as per the needs and
desire of target customer.
 Operating in more than 40 countries with over 1000+ stores. This indicate that company
is practising its operating throughout the world.
Weakness:
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 Limited market share in other countries because the company is hugely rely on UK
market and less exploiting opportunities available in other foreign or developing
countries.
 Strong competition from other already established retail brands like TESCO, ALDI,
ASDA etc. These are globally renowned brands with high market share and profitability
ratio.
 Need to protect its brand from misuse of fake imitation products as this is going to
adversely impact company's brand image.
 Bad publicity as “non-trendy stores” because customer are having wrong perception
regarding the company. They think that M&S only sells clothes of elderly people which
is why majority of teenager does not go to its outlets.
Opportunities:
 M&S can introduce new market segments. For example: They can classify customer on
the basis of their likes and dislikes i.e. putting together similar interest of customers.
 Expand business operation in developing countries like Japan & India which provide
them additional benefit in context on attaining high market share and maximising
customer base.
 Launch its own website so to achieve high competitive advantage in the market. In
addition to that it also results in increasing its overall sales and profitability ratio.
Threats:
 Strong competition exist in all areas of business which is major drawback for M&S as
availability of substitute products enable customers to switch to some other brand.
 Competitors are offering high discount so as to attract their customers which negatively
impact M&S sales. As customer prefer to purchase products which are available at low
cost.
 M&S is highly depending upon UK market which means any variation in political
situation of the country is going to impact its overall operation and functions in a
negative manner. For example: Situation like Brexit decreases the sales of M&S.
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TASK 4
P6 Link between strength and weakness with macro factors
Strength: One of the key strength of M&S include its powerful brand image in UK's retail
sector. The company gained popularity for selling high quality products that create value for its
customers. However this can be possible because of its current economic and political condition
of UK. The purchasing power of its local residents are sufficient enough to spend good amount
on purchasing goods. In-fact any fluctuation in economic condition of the country does not affect
purchasing power of its citizens. Moreover due to political stability, M&S are able to open
maximum of its outlets in several countries of UK. Presently, more than 600 store of Marks and
Spencer are there in different of countries.
Weakness: Strong competition exist in the market of UK which turn out as a major drawback of
M&S. As United Kingdom is main hub of all leading brand such as H&M, ALDI, ASDA that
gives high competitive edge to Marks and Spencer. Another major weakness, manual working
which ultimately leads to increase the cost of the company. However, this indicate that the firm
is not taking the advantage of using of latest and high end technology. Thus causing adverse
affect on its overall sales.
Opportunities: Market segmentation is the main opportunity of for M&S in context of
expanding its market size. The company has decided to split customer into different groups
within which consumer share identical interest. Its opportunity is inter-related with socio-cultural
factors. As choices and preferences of customers are changing frequently which enable company
to offer products accordingly. Thus, M&S is required to consider socio-cultural factors while
doing market segmentation.
Another key opportunity is adopting high end technology in its business operations and
practices. For example: M&S can launch is own mobile application in order to increase its
overall sales. Additionally, it can take the help of social media platform for promoting its good
on vast level among customers. This signify that firm is using advance technology in an
appropriate manner.
Threats: Situation like Brexit, is adversely affecting overall profitability ratio of Marks and
Spencer. Since the company is generating maximum of its profits from UK which means that any
fluctuation in its market or political instability is going to affect company in a negative manner.
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Brexit put limits on its various functions and addition to this M&S needs to shut down its outlet
from many countries of UK because of Brexit. This indicate that any political or economical
variation influence company's overall functioning and operation.
CONCLUSION
According to the previously mentioned report, it has been reasoned that business
condition is distinguished as the surroundings where firm works its business exercises . Different
variables are incorporated into it which should be considered by director as this helps them in
detailing approaches and techniques in compelling way. It likewise helps in limiting the negative
effect of those components. Three kinds of associations include public, private and voluntary are
worked in business condition and each have its distinctive extension, purposes, size and
structure. There are different offices working in firm which performs diverse capacities for the
achievement of shared objectives.
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REFERENCES
Books and Journals
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Bhaduri, G. and Ha-Brookshire, J. E., 2011. Do transparent business practices pay? Exploration
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Cavusgil, S. T., and et. al., 2014. International business. Pearson Australia.
Chetwood, M. K.,and et. Al, 2014. Transforming a legacy IT infrastructure into an on-demand
operating environment. U.S. Patent 8,775,232.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
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Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for
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Gilboy, G. J., 2016. The myth behind China's miracle. In SEEKING CHANGES: The Economic
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