Business Environment Analysis & Impact

This assignment delves into the multifaceted nature of the business environment. Students are tasked with examining various internal and external factors that shape organizational success, such as economic trends, political landscapes, social norms, technological advancements, and legal regulations. The analysis should demonstrate an understanding of how these factors interact and influence business strategies, decision-making, and overall performance.

Business and the Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P.1 Purpose of private, public and voluntary organisation and their legal structure...................3
P.2 size and scope of M&S and Age UK London and welcome trust.........................................4
P.3 Relationship between various functions within M&S for achieving the organisational
mission and objectives.................................................................................................................6
TASK 2............................................................................................................................................7
P.4 Identify the positive and negative impacts the macro environment will have upon the
business operations of..................................................................................................................7
M&S............................................................................................................................................7
P5 Internal and external analysis.................................................................................................9
P.6 M&S strengths and weaknesses interrelate with external macro factors............................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business and businesses environment is will play the major role to boost the economy of
the nation. As the we choose the mark and Spencer in report to highlight the business and their
business environment factor which are influencing in operation work. The purpose of private,
public and voluntary organisation and their legal structure bring the business environment more
efficient. The size and scope of different organisation will help to compare with M&S. It is
important for the interlink k between then various department of the organisation achieve the
mission and objectives (Berman and et.al., 2009). From the internal and external analysis of the
M&S will be help to change in strategies of their business to bring the better growth and
development according the these factors. Strength and weakness can be identified with the macro
factor of the organisation.
TASK 1
P.1 Purpose of private, public and voluntary organisation and their legal structure.
The main purpose of any organisation in an environment to make the economic condition
better and help to society for their development.
Private organisations: In a private organisation business is owned by small groups. This
type of organisation don't have the much power and shareholders are also the owner of the
business. As the private organisation have the limited liability. The main purpose of the private
organisation is to give inject in an economic (Cheng and et .al., 2007). So proper growth and
development can be made for society. The legal structure of private organisation concerned
following things such as:
 Legal documents: Memorandum of association and Article of association.
 When the above documentation have completed the next step is to send document
to registrar of companies and then they will issue the business a certificate of
cooperation which is important for trading as private organisation.
As the private organisation like M&S are important for the nation as they help to boost
business environment and growth of the society.
Public organisation: it is an incorporated business in which government will run the
business and supreme bodies of the government will take all the business decision. As the public
organisation have major impact on business environment because it influence on the economic
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environment is more rather than public organisation (Dettwiler, Lindelöf and Löfsten, 2015). For
such organisation trading will allow with permission of stock exchange the main purpose of the
public organisation is level other factor of business in business environment and bring the nation
developed. The legal structure of the public organisation depend on the government rules and
regulation which are applicable on the basis of size of structure. NHS is a public sector
organisation which focuses on effective development of social values. Also, by having an
effective consideration of diverse values the issues in regard to social development can be
overcome. It is an executive non departmental public body of the department of health. The key
function of NHS England is to improve the health products and services for citizens in England.
It was set up as a special health authority of the NHS in October 2011 and the operating name of
NHS England was NHS commissioning board and It was renamed NHS England on 26 March
2013.
Voluntary organisation: This type of the organisation are such as the charity and NGO
organisation the main motive of such organisation is to bring the development of society and it
is an non-profit organisation. The main purpose is to do the social help with free education and
care to old age people or too aware about any disease in environment. Such organisation have
freedom to do anything form their betterment of society (Hamilton and Webster, 2012).
Voluntary organisation have been set up with special act. Such organisation don't have to pay
any tax to the government because they are established for the social benefits. The legal structure
of the voluntary organisation such as:
 Unincorporated organisation
 charitable trust
 Non for profit organisation
Welcome trust is a voluntary firm which focuses on effective development of diverse values
so that key outcome can be attained. Company need to focus on government policies so that key
norms can be advanced. The aim of voluntary organization is to help the needy and poor people.
To service in the market the organizations take fund in form of donation and charity
P.2 size and scope of M&S and Age UK London and welcome trust.
M&S is a private limited organisation which deal in the retailer sector in United
Kingdom:
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Size of M&S: the size of Mark and Spencer depends on the number employees and their
customers. It has total 84939 employees in their organisation and the operating income of M&S
total 690.6 million and total profits earn 115.7 minion in 2017 as the highest in retail sector.
They have the highest number of products in their store. Also they deal in hospitality and home
stores business (Nimwegen and et al., 2008). Their main focus on online services as they are
more concern about their digital selling. Product line makes M&S is more valuable organisation
for the people of United Kingdom
Scope of M&S: as the biggest organisation the more scope is for the people and also for
nation. Mark and Spencer will help to boost economic of United Kingdom. With more
employment generating organisation. The benefits of M&S is better pay and more rewards for
employees.
Age UK London is a public organisation: it is an biggest public organisation of united
kingdom. As it is partnership organisation involvement of ten private owner. It is working for
charity and other purposes.
Size: The age UK London is merge with two more organisation for more charity concern as they
are age concern and aged UK. As they had launched radio and other wireless broadcast for 24
hours a day (Paul, 2016). Total 47 million in a year they had raised funds from over 520 charity
shops.
Scope: from the launching of radio and other internet service for the people will focus on
more society development and help to the business environment.
Welcome trust is a voluntary organisation: it is a trust who work for improve in health
of society and they have the own health care centres with innovative ideas and they have art and
other fashion.
Size: They are global charitable funding organisation a they deal with society
development. They are independent from financial and other government intervention. They
have presence across the United Kingdom.
Scope: the main scope of the welcome trust is they are deal in health of people. As they
invent new vaccines and other development in health sectors. They had research for the Zika
virus and help to the society as they have invent vaccine for such virus (Stengel, 2011). Their
main aim is remove the any disease from the society so that the environment became better and
healthy.
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New Look is a leading fashion retailers of the United Kingdome and it is operating its
business in private sector. Goal of the New Look organization is maximizing the profitability and
market share of the organization in all over the fashion industry. Other than this, British Airways
is a UK based airline corporation. It initially started its business as Public Sector Company but
due to increasing accumulated losses, it became privatized. The mission of the firm is to
establish itself as the world’s favorite and most profitable airline. The organization made changes
in their business strategy to make themselves the leading global premium airline.
P.3 Relationship between various functions within M&S for achieving the organisational mission
and objectives.
For every organisation the proper structure and function have been followed form the
achieve the mission and objectives of organisation. As the M&S they have been classified into
different department for their operational work. As they need to bring to set the proper hierarchy
of the organisation such as finance, human resource, marketing, production and operation,
information technology is necessary department in any organisation (Hillary, 2010). As these
structure will help to achieve M&S mission and objectives with their interpersonal relationship
in M&S with different function such as:
 Finance: for achieving the organisational objective the finance department play the major
role in an organisation. As they take the decision regarding finance and other cost saving.
To allocate the budget for the different function in an organisation finance department
use proper strategies. To maintain the proper records of organisation accounts and to
show the profits and loss. For every function finance is the most important aspects in
organisation growth and development. They are interconnected with other department to
raise the funds for operational work or any other expenses which can be helpful for
achieving organisational objectives and mission (Hoecklin, 2010).
 Human resource: They have major role in an organisation to achieve the mission and
objectives. They set organisation polices to control the manpower and bring effective
outcome for the organisation. Recruitment and selection of the employee In organisation
is also done by the human resource department. If any conflicts have been arise between
the employees and organisation then it is their responsibility to solve that conflicts with
effective decisions. Also they play major role to motivate the employees and they fulfil
the needs of organisation to bring the right manpower at the right place.
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 Marketing: For M&S marketing will play the major role in organisation to promote and
attract to the customers with different strategies of marketing. They are the revenue
generating department for the M&S. As they deal with the customer. They also set the
budget for marketing for different ways (Keegan, 2008). Their main focus on relationship
building with customers by connecting on social media and other mode of
communication with customer can be possible. To change the trends and bring innovative
products in front of the customer is responsibility of the marketing divisions.
Production: for the M&S production division have the responsibility to easily get the product to
the customer on time. With better production team they can products according to the demands
from the customer. These department will focus on quality production so that less complaints
will came from the client’s side. Also they use the organisation resources in an effective manner
for better production can be done in organisation (Mankiw and Taylor, 2006).
Therefore it is important for M&S to link mall the department with each other to achieve
the organisational mission and objective. If the human resource will hire the better manpower in
organisation the effective production can takes place. If the production will be better the
marketing department can focus on the Customer to sale maximum products. In such finance
department will focus on other expense of all department.
TASK 2
P.4 Identify the positive and negative impacts the macro environment will have upon the
business operations of
M&S.
For every organisation there is some macro factor which can influence on the business
environment and other operation of organisation. With the help of Potters five force model the
macro factors can be identified and their negative and positive impact will be depends on the
factors size.
Primary activities: for the mark and Spencer the primary activity is the commitment for quality
products available to the customer.
 Inbound logistics: It is the process of delivering goods and services in organisation with
help of better transportations to meet the customer requirement.
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 Out bound logistics: It is the process in which the goods and services will be carried out
for the customer expectation on time by delivering products at the stores.
 Operations: as the mark and Spencer have the biggest reach to the customer because of
the better operation practices in organisation.
 Marketing and sales: if the marketing and sales of M&S will be effective due to better
strategies of promotions and advertised of the products will bring the better revenue for
the business. It is important to attract the customer by different techniques of marketing
(McSweeney, 2012).
 Services: For the increasing of sales it will be impact on organisation services. For
improving the better services M&S have to set a separate team to provide effective
service to the customers.
Support activities: These are the internal factors of the organisation which can influence the
business operation.
 Firms Infrastructure: The building of the organisation is important for any business.
And the facilities available for run the smooth business is also included in firms
infrastructure.
 Human resource management: the major role of the human resource management in
M&S is to maximise the resource for the betterment in organisation. As the impact of
human resource with the policy implementation in organisation to maintain the operation
in efficient manner (Dascalu and et. 2010).
 Procurement: Availability of goods form the suppliers will be more effectively than the
production can be done on time. Also customer meets can easily fulfilled with better
procurements.
 Technology: New technological change in market will be advantage or disadvantage for
the M&S. The adoption of technologies can be impact on the cost but on other side in
will give the better quality products and also save the production time. As the new
technology in terms of software for operation purpose and Manufacturing machines.
From the above model it is easily identified the negative and positive impact of macro
environment on business operations such as
Negative impact: these are the impact from the both activities from potters five force
model such as:
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 Procurement bring the adverse impact on the production as the supplier have to give raw
material on time.
 Service of the M&S is directly influence to the lower customer attraction towards the
products (Dwivedi, 2009).
Positive impact: For the better operation organisation primary and supportive activities
are important such as:
 Outbound logistics of the M&S is far better than the competitor will give better
availability of products to the customer.
 Change in technologies and adoption by the mark and Spencer for their production
purpose will save the time and cost for organisation.
P5 Internal and external analysis
External analysis
 Political factors- Government makes many rules and regulations for the companies
related to food because of the health care of public. M&S have to follow these rules, if
they don't then they have pay fine or in extreme cases they can even shut down. If such
measures are not properly referred then it will impact the overall outcome in negative
manner. Political relation with the company can allow to have continuous improvement
in services so that goals and objectives can be accomplished.
 Economic factors- In present time’s economy is sometime growing or having downfall.
M&S is very much affected by it. Their many store had shut down because of this
uncertain economy. They had even reduced the salaries of their workers. M&S have
changed their marketing style to be stable in uncertain economy. Inflation rate increase is
necessary to refer properly so that pricing of product and services can be taken into
account. Also, evaluation of services need to be according to GDP and income level.
 Social factors- Preferences of the consumers are rapidly changing. People wear clothes
according to the present fashion, so M&S keep their clothes range according latest
fashion. Company had started selling the food online to compete with its competitors
(Fernando, 2011). Social needs impact the working in desired manner. It has been noticed
that by having an effective consideration of social needs the performance can be
advanced. if such values are not followed then it will impact the performance in respect
to customer trust.
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 Technological factors- Using technologies is the most important to innovate the
company standards. Company have to keep up its brand name. M&S had done many
promotions to sell its products. They had given advertisements on TV, modelling their
clothes etc.
 Environmental factors- In recent time environmental conditions are very important as
heard on TV, written in newspapers etc. M&S have their own policy to secure the green
environment. Company had also launched the denims that saves the energy.
 Legal factors- There are many laws which are changing from time. M&S had made
changes in their business according to these laws. Company had also updated all the tax
changes in the business.
You written about positive, where is negative impact
Internal analysis
 Strengths- M&S have very strong brand name. Company has many stores in the world.
M&S keeps its products up to date with the latest fashion trends. Company fulfils its
social responsibilities very efficiently.
 Weaknesses- Company has very bad impression on the people as they think that its
clothes are only for aged persons. M&S is very performing badly financially as it uses old
technology instead of new ones (Keegan, 2008). It is using human power rather than the
technologies and human power increases cost of the company. The Company is very
much depending upon the market of UK for its revenue.
 Opportunities- M&S can expand their business to other countries which have large
population like India. Company can use the new technologies in the business to reduce
the cost its cost. M&S can make different segment of their customers according to their
taste and preferences or their regions. Company can expand the business by making small
stores which will reduce the cost of maintenance and increase profits.
 Threats- The main threat to the M&S is of its competitions in the market. As company
works in both food and clothes sectors and both sector have their competitions (Mankiw
and Taylor, 2006).
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P.6 M&S strengths and weaknesses interrelate with external macro factors.
As the organisation deals in retailer sector and competitor in this sector have more. To
bring the better business environment in M&S it is important to find out the strengthen and
weakness which are interrelated with external macro factors according to PESTLE analysis and
potters five force model.
Strength: for the mark and Spencer the biggest strength it is their brand value ion market
from the macro factors.
Social factors for the organisation bring better outcomes for Mark and Spencer as they
have the high research and development team for products development in organisation. To
available better products to the society will bring the hirer revenue in organisation (McSweeney,
2012).
Technological factors: changes in technology will be bring the better production for the
M&S. Time and cost will be save with the adoption of new technologies.
Out bound logistics is also the strengthen for the M&S as they delivered the goods to the
store in rapid way once the production process and packaging have been done.
Weaknesses: In every organisation there is some weaknesses which will influences the
organisation. From the macro factors weakness can be identified for M&S such as:
 Economic condition of the United Kingdom is not suitable for M&S business
environment. As the taxation policy have been effect on the organisation profits. Inflation
in the economy bring the higher price of other raw material and customer is not able to
purchase their products (Dascalu and et. 2010).
 Legal factor is also the weakness for the mark and Spencer as the changes in laws
regarding the minimum wages and other right for employee are burden on the M&S
budget. As they have specific compensation structure for employees. After announcement
of new wages law have some extra burden on M&S business environment
 Procurement of raw material is not availability form the customer bring the lower
production in organisation and sometime it is the major weakness for M&S (Dwivedi,
2009).
CONCLUSION
Bushiness and business environment have the major impact on some of the external and
internal factor of the organisation. As the M&S is the biggest retail organisation which deal to
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quality products. As the political factors and economical factor have major influence on their
business. Due to some legal carnage shave been affected on the operation of the organisation as
the directly burden on the budget of the organisation. Change in new technologies bring the
higher production and the availability of the goods and service to the customer will be faster than
before. Also organisation will save the time and cost with new adoption of technology for
production process. Strength as the social and outbound logistics will attach more customer for
the mark and Spencer but some of the weakness such as economic and service factor will bring
the organisation goodwill on other direction.
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REFERENCES
Books and Journals
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Cheng, P., and et .al., 2007. Organizational change in stakeholder business systems: the role of
institutions. Journal of Organizational Change Management. 19(3). pp.383 – 392.
Dettwiler, P., Lindelöf, P. and Löfsten, H., 2015. Business environment and property
management issues: A study of growth firms in Sweden. Journal of Corporate Real
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Hamilton, L. and Webster, P., 2012. The International Business Environment. Oxford University
Press.
Nimwegen, G. and et al., 2008. A stakeholder perspective on mission statements: an international
empirical study. International Journal of Organizational Analysis. 1(2). pp.61 – 82
Paul, J., 2016. Business Environment. Tata McGraw-Hill Education.
Richter, R., 2011. European Monetary and Fiscal Policy. Journal of Economic Studies. 28(6).
pp.446 – 450.
Stengel, N.D., 2011. Managerial Economics: Concepts and Principles. Business Expert Press.
Hillary, R., 2010. Small and Medium‐sized Enterprises and the Environment: Business
Imperatives. International Journal of Sustainability in Higher Education. 1(2). pp.208-
211.
Hoecklin, L. A., 2010. Managing cultural difference for competitive advantage. India:University
Press (India) Ltd.
Keegan, W. J., 2008. Global Marketing Management. 7th Edition, India:Pearson Education.
Mankiw, N.G. and Taylor, M.P., 2006. Economics. London: Thomson Learning.
McSweeney, B., 2012. Hofstede's model of national cultural differences and their consequences:
a triumph of faith – a failure of analysis. Human Relations. 55(1). pp. 89–118.
Dascalu, C. and et. Al., 2010.The externalities in social environmental accounting.International
Journal of Accounting & Information Management. 18(1). pp.19 – 30.
Dwivedi, D., 2009. Essentials of Business Economics. Vikas Publishing House Pvt Ltd.
Fernando, C. A., 2011. Business Environment. Pearson Education India.
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Online
OECD., 2010. International Trade related policies of European Union. [Pdf]. Available
Through: <http://www.oecd.org/economy/growth/188277.pdf>. [Accessed on 31 October
2017].
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