Business and Business Environment

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BOODY...............................................................................................................................3
LO1..................................................................................................................................................3
P1: Types and purposes off organizations...................................................................................3
P2: Size and scope of different organizations..............................................................................4
LO2..................................................................................................................................................5
P3: Relationship between organizational functions.....................................................................5
LO 3.................................................................................................................................................7
P4: PESTEL analysis of Marks & Spencer.................................................................................7
LO4................................................................................................................................................10
P5: Internal analysis of Marks & Spencer.................................................................................10
P6: Interrelationship between strength and weakness and external macro factor and the impact
they have upon business objective.............................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment refers to all the internal and external factors which tend to impact
the functions and operations of a company such as customers, employees, investors, business
core operations, decisions of the management, demand and supply etc. This report will aim at
studying the business environment of the organisation Marks & Spencer which is a British
multination retailer headquartered in London, UK which deals in clothing, fashion apparels and
food products. The report will highlight the type of organisations, their size and scope,
interrelationship among various organisational functions, organisational structure, critical
analysis of macro environmental factors through Pestle and SWOT analysis.
MAIN BOODY
LO1
P1: Types and purposes off organizations
Public-
Public sector is the type of organization which is governed by the government, this is
done in particular because it allows legislatives of the state to provide organizational services to
a wide range of customer by not limiting to a particular segment of the society. This sectors is
mainly used for providing services to citizens irrespective of revenues to be earned, this can be
seen in various cases like hospitals, etc. The main purpose of this type of organization is to
provide high level of services to customer at a unified price range (Akhmetshin and et.al, 2017).
These are government run organizations, therefore it uses taxes and small revenues from
customer to provide its services due to which less and unified pricing is taken from customers.
Private-
This sector is run by individuals due to which it highly rely on earning money to fulfil its
expenditures, thus it uses various creative marketing strategies for attracting wide range of
customers such that high revenues can be earned. Since organization try to increase its customer
count thus it implement various creative marketing strategies such that customer can be attracted
towards the organization. Various organizational changes can be seen in this part in which
company implements various changes like changing its pricing strategies so customers can be
attracted, improving product or services as per changing market trend and many other ways
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through which organizational sales can be increased (Čepel and et.al, 2018). Since it is controlled
by individuals therefore, its working is changed as per the requirements of the organization such
that customer can be attracted in order to sustain in the market full of competition.
Voluntary-
Voluntary sector is also called as non profit organization in which social groups and
individuals whose primary goals are to improve the life of citizens and for which it provide its
services for free. This sector is completely independent for governmental activities and corporate
profit earning organizations due to which it is completely independent. This type of
organizations are run in such a way that by providing its services for free customer’s lifestyle can
be improved, therefore this can be seen various scenarios like flood relieve, serving home less,
etc. Thus the main purpose of voluntary organization is to improve the life style of its customers
in which high level of services are provided for free and initial cost of working is taking from the
means of donation and on that basis organizational services are provided.
P2: Size and scope of different organizations
Public Sector-
Public sector is mainly run by the government due to which its branches can be spread all across
the country. With that it get initial investments from the taxes and running capital is earned from
collecting charges from customer for utilizing organizational services. Due to which there are
high chances that its performance can be improved with times (Gaganis, Pasiouras and Voulgari,
2019). However in this type of organizational structure working procedure and pricing structure
are not improvised as per customer request or as per changing market trend due to which no
advertisement or commercialization is done in public sector. The size of organization can be
increased till within the boundaries of the country and in which it working range can be divided
into segments like, national level and state level. With this segmentation, public sector’s
efficiency can be increased because it is having high in depth operations like in various
geographical conditions due to which company can perform well on ground level.
Private Sector-
Private sector is run by individuals due to which its working procedure can be changed as
per changing market condition, this improvisation enable organization to increase its reach to
various geographical conditions. Unlike public sector this sector can increase its geographical
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