Business Models and Innovation Analysis

This assignment delves into the strategic choices and innovation strategies of three distinct organizations: Marks & Spencer (retail), the Metropolitan Police (public service), and Cancer Research UK (non-profit). It examines their respective business models, highlighting key factors influencing their success and challenges. The analysis draws upon academic literature, news articles, and online resources to provide insights into how these organizations adapt to evolving markets and societal needs.

BUSINESS AND
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
P1 The purpose of private, public and voluntary organisation and their legal structure........1
P2 The size and scope of Marks and Spencer in comparison to Voluntary organisations.....3
P3 Relationship between organisational functions in order to attain goals and mission
statement.................................................................................................................................5
P4 The positive and negative impact of macro environment on business operation of M&S6
P5 Internal and external analysis of the company..................................................................7
P6 Example to relate internal and external factors of an organisation...................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Illustration Index
Illustration 1: Marks and Spencer....................................................................................................1
Illustration 2: Metropolitan police...................................................................................................2
Illustration 3: Cancer Research........................................................................................................3

INTRODUCTION
Business and business environment are the internal and external factors of the
organisation which beyond control which comprises customers, management, employees etc.
The report will analyze the business environmental factors of Marks and Spence the leading
food, clothing and home products company of UK. The company serves its services across the
globe and has approximately 1433 stores worldwide. Further, it will outline the scope and size of
M&S in comparison to voluntary enterprise which is Oxfam the charitable organisation of UK.
Moreover, the report will evaluate the relationship between organizational functions which are
enhanced by the organisation in order to attain determined goals and objectives. Thus, the report
will recognize the internal and external factors of M&S, by using Swot and Pestle analysis.
P1 The purpose of private, public and voluntary organisation and their legal structure.
Slide 2
Private (Marks and Spencer)
Purpose: The ultimate purpose of the private organisation is to earn profits and generate more
and more revenue by offering services according to customers taste and preferences.
Legal structure: The legal structure of the private organisation is based on employment rights,
consumers right and safe regulations in accordance to environmental issues (Week 2010).
Marks and Spencer: It was formed in 1884. It was an initiative taken by Michael Marks, a Polish
refugee with the slogan " don't ask the price, it's a penny". The company went into partnership
with Thomas Spencer in 1894 and went on to form Marks and Spencer.
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Notes
Apart from this, the Purpose of M&S is to enhance the living standard of people across
the globe in order to earn profits and revenue. Moreover, its services are focused on improving
its relation with its stakeholders like, customers, employees and suppliers which are core support
to organizational functions. Further, the legal structure of Marks and Spencer is based on
employment rights act which comprises, minimum wages acts, consumer protection law which
aims at serving quality services to buyers, health and safe working conditions and use of
environmental friendly products and gases. Compliance with the legal frame of the country act as
tonic of the company as it helps the company in dealing with business environmental changes
which influence the operations every day.
Slide 3
Public (Metropolitan police)
Metropolitan: It is a police force came into functioning in 1829 through the act of parliament by
the Home secretary, Sir Robin Peel.
2
Illustration 1: Marks and Spencer
Source:(Marks and Spencer, living in a dying
industry, 2016)

Purpose: Public organisation work for governmental services are its main purpose is to enhance
and promote economic development of the country. Metropolitan Police serve its services in all
metropolitan areas for the purpose of making safe practices across London.
Legal Structure: The legal structure of public organisation are based on all the rights which are
enhanced to protect the government employees of UK. Moreover, the legal structure of public
organization offers very simple working flexibility to its employees.
Slide 4
Voluntary (The cancer research)
The cancer research: It established in 1902. The charity grew in 20 years and became one of the
leading cancer research charities.
3
Illustration 2: Metropolitan police
Source: (Police honor fallen officers, 2014)

Purpose: The purpose of Voluntary firms is to serve services in order to serve social welfare and
promote the standard of living of society that is why its functions are concern with social wealth
instead of material wealth and profits. The ultimate purpose of cancer research is to help people
surviving cancer by volunteering, serving medical aids etc.
Legal Structure: Voluntary group in UK follows three most important legal structure which
comprises, guarantee trusts and unincorporated association.
Notes
Moreover, the ultimate objective behind following the regulations is to make systematic
processing of functions in order to carryout smooth functioning of firm. The purpose of an
organisation is to serve customer satisfaction and promote the welfare for all stakeholders in
order to promote its growth and development (Chavis, Klapperand Love, 2011). Business
development manager ha determined the ultimate difference between the purpose of M&S and
other public and voluntary organization is over profits and sales.
P2 The size and scope of Marks and Spencer in comparison to Voluntary organisations.
Slide 4
Private (Marks and Spencer)
Size: The size of organisation is not limited as it every time focus on expanding its market share
and services. The size of the enterprise depends on its availability of resources across the globe.
4
Illustration 3: Cancer Research
Source: (Video: Recruitment to digital roles in the voluntary
sector, 2016)

There are approximately 84,939. Number of employees, employed and it has 1433 stores across
the globe from which 454 stores are located in United kingdom.
Scope: The scope of M&S keeps on changing as per consumer expectation and its sales. In
addition, the ultimate focus of the company is based on serving customer satisfaction and
maximize profits. Further, it is based on generating more and more revenue.
Notes
Hence, the size and scope of M&S depends on it level and services which sometimes decreases
and increases according to the business environment changes. The scope of the organisation is
limited consumer satisfaction and profits. The size of the firm demonstrate that it also enhances
the employment opportunity for the people across the globe. Moreover, the scope of retail states
has an advantage as it offers various kinds of goods and services to people across the globe. The
little innovation in services enhances its scope which determines the bigger platform of M&S in
comparison to voluntary organisation.
Slide 5
Public (Metropolitan police)
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Size: The size of Metropolitan police is spread across 1578 square kilometers across London and
has 32125 full time police officers and 3271 specialized officers. It has 180 station and its annual
budget is 3.24 billion pound
Scope: The scope of metropolitan police is to handle all the criminal activities and to investigate
about public offenses.
Slide 6
Voluntary (The cancer research)
Size: In accordance to M&S the size of Cancer research is limited as it has approximately 3964
employees and 40000 volunteers.
Scope: The scope of cancer research is focused on improving the management of patients
afflicted by them and the quality of life of people during and after treatment. Further, the
organization is limited to its ultimate objective that is serve aid to people suffering from cancer.
P3 Relationship between organisational functions in order to attain goals and mission statement.
Interrelationship between organizational structure of M&S assist the company in
attaining determined goals and objectives as it plays a vital role in establishing systematic flow
of adequate and appropriate information and on the other hand it helps in smooth flow of
business operation without hindrance (Matsuno, Mentzer and Özsomer, 2012). Therefore, the
business activities are depended on 3 basic structure of the system which are as follows:
Functional structure: In this the organizational functions is divided in separate
departments' in order to eradicate the complexity of business operations, however functions of all
the departments are interlinked to each other. Under this structure the departments of the
enterprise are, Human resource department, marketing department, production department, sales
department, customer care department, and information technology department. These
departments in the organisation have their individual working and are connected to each other in
terms of information which assist them in making services and products according to market and
consumer demands. Further, the department make strategies by analyzing the information
collected from department (Prajogo 2016). The connection between these organizational
deportment plays vital role in attaining determined goals and objectives. For instance, if there is
marketing department than in this there will one marketing manager of Marks and Spencer and
under this there will various subordinates which will marketing analyst following orders. Like
Human resource department in M&S is responsible for recruiting staff for all the department as
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per the requirements. Moreover, it is the duty of HR professional to ensure that the manpower in
firm is adequate and performing effectively. Further the marketing department seeks the
consumers needs and wants and conveys to all other department for further processing.
Apparently financial department ensures that there are adequate funds in all department which
assist in smooth functioning of business operations. In addition, the production department
ensures production of goods by analyzing the information given by marketing team and funds
availed by finance department. Hence, the connection in all the activities of department
demonstrate the interrelationship of organizational functions.
Divisional structure: In this structure, the department of M&S are individually
responsible for carrying out their operations. The structure has its own separate managers for
every functioning for which the employees have to report them individual about their
departmental functions. In accordance the department work separately but for the same common
goals and in this the information Is exchanged through managers which helps the time
management and improves the efficiency of information. The structure provides easy decision
making possess to management according to external internal fluctuations. Further, in this the
work is allocated according to different segments like, bakery for one department, food for other
etc. This structure provides the optimum utilization of resources and assist in attaining
determined goals as per the set objective which enhances and supports the growth and
development of the enterprise. In Division structure of organisation the products are produced in
batches where the functions are interrelated to each other, Like at the time of new products the
HR professional recruit new qualified staff who can assist the organisation in making innovation.
Further the staff will hired according to requirement of department, where the market team will
analyze the changing market trends and conveys to production team who makes changes
accordingly. Hence, to make changes the department will require funds which are availed by
finance department of Marks and Spencer. This connection between departments denotes the
interrelationship between different organizational functions. For instance, in this, there is one
department of Marks and Spencer which deals in Apparels then in this the structure the
departments are further segregated according to functional structure.
Matrix Structure: This is implemented in the organisation as it provides the flexibility
of business operation which ensures effective and efficient functions. In this system the
management divides the work according to skill's, capabilities of employees. Teaming up staff
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according to their comfort level helps the management in overcoming the internal weakness
which can hinder the business operations (Ramanathan, Bentley and Pang 2014). Further, the
ultimate objective of implementing this system in Marks and Spencer is to make employees clear
about one common goal which is same for all. The analysis and setting path towards the goals
and objectives assist the workers in effective and efficient working. In this structure there is no
segregation of department instead the workforce is divided according to working abilities where
all the individuals of every department works together. Working of employee of all departments
together in Marks and Spencer demonstrate that all the organizational functions are interrelated.
For instance, If one individual has skills and interest in marketing function than this employee of
Marks and Spencer will be involved in promotions operation and marketing analysis operations
of company.
Hence, the structures provides coordination and cooperation in the business activities
towards one common goals. The organizational function without and structure are not effective
as it becomes complex to determine the individuals work but when the departments are clubbed
according to work assist M&S in establishing effective process of functions in order to
accomplish goals and objectives.
P4 The positive and negative impact of macro environment on business operation of M&S
Macro environment consist of political, economical, social, legal, environmental and
social factors of the country which keeps on fluctuation and impacts the business operation. The
negative and positive impact of Pestle factors on the functioning of Marks and Spencer. It is the
largest food and clothing company of UK and therefore it is important for the firm to keep a
check over its influences. Further, changing macro environment assist the management in
recognising the need of change in order to serve customer satisfaction. In accordance to this
analysis his beneficial in making changes in internal process according to the changing external
factors as it ensures the smooth working environment of the enterprise. On the other hand the
changing macro factors impacts the business process as continuous amendment are costly to
implement and are not easily adaptable. Further, implementing changes on time assist the Marks
and Spencer in enhancing its process and services according to the changing trends and taste and
preferences of buyers. It is important for company to formulate its plans and strategies according
to the changing environment factors because not regulating the process according to the external
fluctuations head towards the losing control over market (Blut, Evanschitzky and Brock 2014).
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Furthermore, the macro environment analysis assist the management in determining the
strategies used by the competitors which is beneficial in attaining competitive advantage. In
contrast, it helps M&S in developing cost effective strategies according to customers changing
trends. In accordance to positive impact, the enterprise deals in food, clothing and home product
where the demand for food and clothing changes like a flow of air therefore it helps the business
in determining the need of buyers which further helps the management in serving customer
satisfaction. The factors assist the management in having simple and easy framework in
accordance to economic, legal and social factors. It is used by the firm to reduce the influence of
threats and weakness which can impact the business process. Business development manager of
the organisation keeps a check over external business environment to have as easy access over
entering into new market. Macro environment of M&S is involves the cross functional expertise
and skills. However, on the other hand external business environment makes the decision making
process complex and difficult. Implementing changes according to the fluctuation are not easily
adaptable for employees for the development manager organises training and development
session which is time consuming (Thompson and McLarney 2017).
P5 Internal and external analysis of the company
Analyzing internal and external factors of the organisation act as tonic for the
organisation as it assist in recognizing various loopholes, strengths and external fluctuation
which can impact the functioning of business operations. Further, to evaluate the internal factors
M&S impacts the use of Swot analysis which is described under:
Strength: Evaluation of strength assist the management in discovering its own core
importance which can be beneficial in attaining effective and effectiveness in organizational
functions to attain one common goals. The major strengths of the enterprise lies in it products
and services as it offers various types of products at one place which attracts the consumer. The
quality and easy availability of Marks and Spencer products helped the firm in grabbing the large
market share across the globe. Moreover, the entity focus on providing the appropriate working
environment to employees with advanced working condition which encourages the morale of
employees.
Weakness: The product's of the enterprise are expensive in comparison to rivalries which
helps the consumers in discrimination its services and goods according to pricing. Moreover, the
commodities of the company offer limited products for young generation which impacts its sale
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and 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.
Opportunities: The biggest opportunity for M&S is to adapt the flexible business
strategies in order to make easy formulating in the functions according to fluctuations. Further,
innovation in clothing and home products can enhance the sales and profits of the enterprise and
will attract more and more consumers.
Threats: The improving functions and operations of rivalries in the industry is the
biggest threat which can influence the business process and functions of M&S. The Pricing
strategy used by other competitor's ion comparison to marks and Spencer is the major
disadvantage because consumers are price sensitive and pricing is the backbone which
determines the customer behaviors towards the products and services of the company.
Furthermore, to evaluate the changes of macro environment the company implements the
use of Pestle analysis which is described under:
Political: The political instability influences the organizational functions of company for
a long run (Lorca-Susino, 2014). It is important for the enterprise to regulate and operate under
the legal framework enacted by government to protect the rights of all the individuals related to
entity. The mandatory compliance with legal regulation for M&S comprises, tax rates, employee
benefits, minimum wages, regulations, tariffs, safety measures, appropriate products labeling to
protect the rights of consumers and employees incentives. There the development phase of the
organisation is completely based on political factors and the fluctuation in theses factors are not
easily adaptable which impacts the entire functioning. On other hand the impact of brexit is
risking the existence of food market of UK.
Economic: The fluctuation in economic factors of UK impacts the retail business as the
consumers are price sensitive and the fluctuation in interest rates creates pressure for the Marks
and Spencer. The struggle of the enterprise starts from the economic fluctuation which comprise
inflation, money supply, tax rates, economic growth rates. Henceforth, the potential impact of
Brexit will impact the business operations for short term on retailers specially who rely on tourist
shopping. Moreover, the pound and the euro are declining in terms of exchange rates. The
isolation from EU from UK has created a need of emergency because the UK regulation were
complete based on EU which is now being separated (Meyar and Certona 2016). Hence, the
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isolation will also impact the UK businesses selling goods and services to EU consumers. In
accordance, the tariff rates, tax rates and interest rate all will be fluctuated and impact the
operations.
Social: The taste and preferences of the consumers keeps on fluctuating which impacts
the strategy of Marks and Spencer. The society is conscious and sensitive about the quality for
the commodities therefore the pricing strategy of company impacts its sales in comparison to its
competitors. Hence, it is clear that the business development manager will focus on making its
pricing consumer friendly (Mohamed 2015).
Technological: The advancement in technology creates both positive and negative
impact for M&S as the advancement helps the enterprise in making innovation and reducing the
manual work but on the other hand every time adapting to advancement is a costly and time
consuming process. The up-gradation in technology has benefited the retailer in selling its
services on large platform globally. The online selling and promotion of products and services
assist the organisation in attracting more and more consumers and maximizing its profits and
sales. Thus, implementing the use of advanced technology has assisted Marks and Spencer in
attaining competitive advantage.
Legal: These regulations are implemented in the company to make effective functioning
of organization. The legislative body keep a close eye over the retail operations which comprises
efficiency over safety, natural resources and renewable resources etc.
Environmental: The protection of environmental factors have influenced the process as
now the company is focused on using environmental gases and resources. Moreover, the
functioning is based on strategy of renewing the resources which aims it reduces, reuse and
recycle. The production keeping in mind the environmental friendly services is challenging for
the company (Naranjo, Valencia and Jiménez Jiménez 2010).
P6 Example to relate internal and external factors of an organisation.
Being and business development manager of Marks and Spencer I have analyzed that
there is a relationship and close link between internal and external factors of the organisation.
The strengths of the organization are its market its and strong consumer base wheras the
weakness is the products are limited. On the other hand Pestle analysis states that compliance
with regulation assist the company in making business operations effective and efficient
according to changing trends (Popescu 2013.). Further, the link between factors is important as
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evaluation of external factors influences the internal functioning therefore when the company
will keep a regular check over external factor it will make internal system adapatable to the
changes. For instance, in recent period the marketing team of the company has analyzed that the
major threat and weakness of the company lies in its pricing strategy which was determined by
the pestle analyses therefore the company is formulating its pricing strategy policies according to
its rivalries which is giving big time competition and helping the business in attaining
competitive advantage. The formulation according to external factors in internal functioning
assisted Marks and Spencer in attracting more and more consumers (Roper and Davies, 2010).
Hence, it can be said that minor change in pricing is the best technique to grab the attention of
buyers and enhance market competition.
CONCLUSION
The report summarized the nature of business environment which internal and external
factors of the organisation. Further, the report analysed the size and scope of private and
voluntary organisation which states that the ultimate objective of M&S is to serve consumer
friendly services and maximize profits. Moreover, the business development manager of the
organisation analysed the strengths and weakness of the firm by implementing the use of Swot
analysis. Further, it identified the influence of external factors by using Pestle analysis. The
analysis of the business demonstrate that the lacking factors of firm are its pricing strategy and
limited products. Thus, the report concluded with example which represented the interconnection
of internal and external factors of business environment.
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REFERENCES
Books and journals
Blut, M., Evanschitzky, H. and Brock, C., 2014. The impact of service characteristics on the
switching costs–customer loyalty link. Journal of Retailing. 90(2). pp.275-290.
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.
Lorca-Susino, M., 2014. The Eurozone and the economic crisis: an innovative SWOT analysis.
Economics, Management and Financial Markets. 9(2). p.27.
Matsuno, K., Mentzer, J.T. and Özsomer, A., 2012. The effects of entrepreneurial proclivity and
market orientation on business performance. Journal of marketing. 66(3). pp.18-32.
Mohamed, A., 2015. The international business environment: a proposed analytical framework.
International Journal of Business Environment. 7(2). pp.168-199.
Naranjo Valencia, J.C., Sanz Valle, R. and Jiménez Jiménez, D., 2010. Organizational culture as
determinant of product innovation. European Journal of Innovation Management.
13(4). pp.466-480.
Popescu, G.H., 2013. Macroeconomics, effective leadership, and the global business
environment. Contemporary Readings in Law and Social Justice, 5(2), p.170.
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.
Roper, S. and Davies, G., 2010. Business to business branding: external and internal satisfiers
and the role of training quality. European Journal of Marketing. 44(5). pp.567-590.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Thompson, J. and McLarney, C., 2017. What Effects will the Strategy Changes Undertaken by
Next Plc Have on themselves and their Competition in the UK Clothing Retail Market?.
Journal of Commerce and Management Thought. 8(2). p.234.
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Week, B., 2010. Knowledge management and new organization forms: A framework for
business model innovation. Knowledge management and virtual organizations. 2(1).
pp.13-27.
Wheelen, T.L. and Hunger, J.D., 2017. Strategic management and business policy.
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