Business and the Business Environment

This report analyzes the positive and negative impact of macro environment on the business operations of Marks & Spencer. It includes an internal and external analysis of the organization through SWOT analysis. The report also discusses the interrelation of strengths and weaknesses with external macro factors.

Business and the
Business Environment

Table of Contents
Introduction.................................................................................................................................................3
PROJECT 2....................................................................................................................................................3
TASK 3..........................................................................................................................................................3
P4 Positive and negative impact of macro environment on business operations....................................3
TASK 4..........................................................................................................................................................5
P5 Internal and external analysis of organization through SWOT analysis..............................................5
P6 Interrelation of strength and weakness with external macro factors.................................................5
Conclusion...................................................................................................................................................6
References...................................................................................................................................................7
Books and Journals:.................................................................................................................................7

Introduction
The business environment is dynamic, that means nothing is fixed so to run the business
smoothly it is necessary for organization that they analyze external and internal environment
effectively (Ajmal, Helo and Kassem, 2017). There are many external and internal factors which
cover in this report that influence on the business operation. In this context, Marks & Spencer
can be undertaken for analyze the external and internal factors, that how they influence the
organizational operations. Marks & Spencer is the British multinational company which operates
in approximate 14 countries and having grocery stores and many more other products and
services that provide to customer.
PROJECT 2
TASK 3
P4 Positive and negative impact of macro environment on business operations.
There are many factors in the macro environment that influence the business operations of
Marks & Spencer. But it is important to find out internal factors firstly so that Marks & Spencer
can improve their internal factors to handle macro environmental factors. Internal factors can be
analysed by many internal tools such as Mc Kinsey model, VRIO, etc. VRIO is undertaken for
analysing and identifying the needs and requirements of internal resources of Marks & Spencer.
The detailed explanation of VRIO is given below in the following points:
 Valuable: The first and foremost question arises in the organization, that there are any
resources which adds the value of organization. If there then it is very good for
organization, but there are no resources that add values to the organization that it
becomes top for the organization to run their business in market. Marks & Spencer
founded that, they have financial resources as a valuable part of their organization.
Because it helps to invest in the projects that add values to their organization. They have
local products and services that are also valuable for their organization, because it also
add the customer value.

 Rare: Marks & Spencer's financial resources are rare, because they are not found easily
in any organization. It is one of the most important resources that is strong, generally
companies face critical situations to acquire financial resources.
 Imitable: Marks & Spencer producer’s imitable goods and services to the customers
which make thread for organization that their customers maybe shift to other
organizations’ product. They have a substitute threat, so it is very necessary for Marks &
Spencer that they make differentiation in their products.
Organized: Even the company have valuable resources, but it cannot add value to the
organization till the company get organized their functions properly(Brandt and et. al., 2016).
Marks & Spencer's patent is not organized, it is found from VRIO analysis. So if company wants
to take competitive advantage that they should go for getting patent.
VRIO is the tool of internal analysis, so that company gets to know their original position.
After the internal analysis of Marks & Spencer, now it is time to analyze external analysis
through PESTLE model. It can be explained in the following points:
 Political factors: Marks & Spencer has two political factors that are free trade and one
major issue of brexit. Brexit make unclear that UK will stand with trade tariffs and
regulations. So that's why it becomes a threat for Marks and Spencer organization.
 Economical factors: There is economical factors which affect Marks and Spencer i.e.
price. Because prices always a big factor, due to the Brexit UK take a benefit of prices
because it reduces the cost. It gives positive effect to the company that reduces the cost of
production.
 Social factors: Marks and Spencer is non trendy for younger that make the negative effect
on Marks and Spencer sale. It decreases the sales and productivity of the company.
 Technological factors: Marks and Spencer focus on technological factors through
commencement of online shopping. That gives positive effect to the organization by
introducing e commerce trade.
 Legal factors: Legal factors are those factors which include necessary laws that should be
followed by Marks and Spencer. But there is no legal factor find in Marks & Spencer
organization (Mrkajic, 2017).

 Environmental factors: Environmental issues are very important for every organization
because it fulfill the CSR policy. Marks and Spencer try to focus on environmental issues
so that cope up with all situations.
From the above discussion it is founded that Marks and Spencer have many external
environment issues that influence the business operations.
TASK 4
P5 Internal and external analysis of organization through SWOT analysis.
SWOT is the analysis tool that identifies internal and external factors that influence the
business operations. Marks & Spencer analyses present situation of market and make strategies
for competing with their rivals by 2030.
Strengths Weakness
 Marks and Spencer has high recognised
by the people in the market.
 They have wide range of variety that
gives alternative to customers for
satisfaction of their needs and wants.
 Because it is a non trendy store, so they
have weakness.
 Their work is more manual, sweet
creates problems such as costing, time,
etc.
Opportunities Threats
 They adopt expansion strategy so that
they expand their business.
 Because it is the retailer company so
they have chances of online
opportunities.
 They provide imitable products that
create competition in market. They
have biggest competitor that are Tesco,
Sainsbury, etc.
 Marks and Spencer faces threat of
decline its scope and market.
P6 Interrelation of strength and weakness with external macro factors.
Strengths and weakness are interrelated to each other as they increase the risk external macro
factors also in the organization. Macro factors affect the organization from outer side it can be
handled only when the organization increased their sons and improve their weaknesses (Zhao,
Fan and Yan, 2016). If company have strong internal structure so that they can handle any macro
factors. Strengths and weakness are very important factor that every organization should need for

handling external environment. The affect the organization power positively or negatively, it
depends only on internal strength of business. Companies able to handle all the internal problems
then they will be sought external problems also.
Conclusion
It is concluded from the above explanation, that company run their business with positive
and negative impact of external environment factors. It can be handled only when the company
have strong internal structure through increasing their strengths and improve their weaknesses.
So it is founded that if company want to run their business successfully then they should have
flexible nature and always ready for upcoming challenges.

References
Books and Journals:
Ajmal, M., Helo, P. and Kassem, R., 2017. Conceptualizing trust with cultural perspective in
international business operations. Benchmarking: An International Journal.
Bradley, S. P., Madnick, S. and Kim, C., 2016. Digital Business. Chicago Business Press.
Brandt, K., and et. al., 2016. Characteristics of the Vietnamese business environment: Evidence
from a SME survey in 2015.
Mrkajic, B., 2017. Business incubation models and institutionally void
environments. Technovation. 68. pp.44-55.
Zhao, J. L., Fan, S. and Yan, J., 2016. Overview of business innovations and research
opportunities in blockchain and introduction to the special issue.