Business and the Business Environment: A Comprehensive Analysis of Marks & Spencer

BUSINESS AND THE BUSINESS ENVIRONMENT

Table of Contents
LO1 and LO2.............................................................................................................................4
P1: Different types of organization............................................................................................4
Differences between profit, not for profit and non governmental organizations (NGOs).........4
Business purpose and supply of good and services...................................................................4
P3: Organizations structure and fuctions. (450).........................................................................9
Different kind of structures relating to size and scope of operations.........................................9
Complexities of transnational, international and global organizations structures.....................9
How functions relate overall organization mission and objectives............................................9
LO3 and LO4...........................................................................................................................11
P4: Using PESTEL model, identify the positive and negative impacts the macro environment
has upon the UK retail sector...................................................................................................11
P5: Conduct internal (SWOT/ TOWS) and external (5forces model) analysis of a UK super
market to indentify its strength and weaknesses......................................................................13
P6: Explain how strengths and weaknesses interrelate with external macro factors...............15
Conclusion................................................................................................................................17

Introduction
Business environment is the internal and external factors of an organization that affect the
business performances. Business environment is divided into two part that is Internal factors
and external factors. Internal factors are also known as primary factor because the company
itself controls it and it affects the organization growth directly. It includes man, material,
money, machine and management. External factors are beyond the control of business
enterprise. It is divided into two parts that is macro and micro environment, macro
environment includes economic factors, social/ cultural factors, demographic factors, political
factors, government factors and technological factors whereas micro environment includes
customers, suppliers and competitors. The company chosen here is Marks and Spencer,
therefore the assignment covers the study of different types of organization, size and scope of
organization, organization structure and function, PESTLE analysis, SWOT/TOWS and 5
forces model.

LO1 and LO2
P1: Different types of organization.
Differences between profit, not for profit and non governmental organizations (NGOs)
Business purpose and supply of good and services.
Private Sector organization (Vitalis,2015) is the type of organization where an individual or a
group of an individual owns the company and operates as well. In private sector company
they focuses on profit and the business run from its profit. Marks & Spencer comes under
private limited company. Mark & Spencer is a British multinational retail company. The
main focus of the company is food, home products and clothing. It was founded by Michael
marks and Thomas Spencer so that is why it is named as Marks & Spencer. This was the first
company in the retail sector of the country that had made more than $1 £1 billion of pre-tax
profit. More than 60 per cent of its turnover in the UK comes from its food sector, while the
other half comes from home and clothing sectors. The revenue of the entire group in 2016
was £10.6 billion and its profit before tax amounted to £10.6 billion. More than 84,900
employees are working for the company that aim at making every moment special for their
customers through innovation and by providing high quality products and a wide range of
choices.
Public Sector organization (Vitalis, 2015) it is the type of organization which is owned,
controlled and govern by the central or the local government of united kingdom. These
organization are more into defense, social, healthcare and education sector. This sector is
controlled by the government. The royal air force club is a public sector company and is
controlled by the government. In this type of company the employees get many benefits from
the organization.
The main three types of organization is profit, not for profit and governmental organizational.
Profit organization are those organization who are mainly focused on making money out of
their business, these type of organization are generally into private sectors. Not for profit
organization is into public sector, thus it includes tax, charities, funds etc. nongovernmental
organization is known as nonprofit organization because it is all related to social issues.