Business and the Business Environment - Marks & Spencer

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
1. Introducing the different types of organizations and the growth of the international
business environment.............................................................................................................1
2. Explaining the organizations including the background of the organizations along with their
size and scope of the organizations........................................................................................3
3. Different business functions by using the business chart to show how these functions
interlinked with advantages or disadvantages........................................................................6
PAET 2.............................................................................................................................................8
1. Explains PESTLE analysis and identify the various macro environmental factors that have
an impact................................................................................................................................8
PESTLE analysis of Marks & Spencer..................................................................................8
2. SWOT TOWS analysis both organizations to identify the key strength and weaknesses.10
3. Critical reflection of key findings and evaluate how they influence their decision making
process..................................................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is a sum of collection of all internal and external factors such as
employees, customers needs and expectations, suppliers owners, market trends, economic
changes etc. All such factors affect the business functions directly or indirectly. In other words
business environment factors also influences the companies environment or situations.
However, Business environment is enable to identify new opportunities, tapping useful resources
and assisting in planning and improves the overall performance, growth. Present study will be
base on business environment of Marks & Spencer which is a multinational consumer goods
company situated in London and across the world. Marks & Spencer has divides its products into
four segments beauty products, home furnishing, Wine and food & Beverages. Furthermore, the
study will explains different types of organizations along with the growth of the international
business environment. Study also outline the products and services these organizations provides
along with the size and scope of the organizations. It also explains the SWOT and TOWS
analysis to both organisational to identify their key strength and weaknesses.
M&S is the leading multinational supermarket situated in across the different countries,
with over 1380 stores around the world. M&S delivers their own brands of food, clothing and
home products in its stores and online both in the UK or across the globe. M&s also deals with
the products women wear, lingerie, menswear, kids wear and beauty products. M&S is known
for its quality services and products that makes the better services and growth in order to meet
out the best growing development goals.
PART 1
1. Introducing the different types of organizations and the growth of the international business
environment.
Private Organizations : Private sector companies are those organizations which run by
the individuals and companies for profit and is not state controlled. Therefore, such companies
are not regulated by the government. Private organizations refers to the person, partnership,
corporation association (Gaganis, Pasiouras and Voulgari, 2019). However, the private
organizations increases the competition in domestic markets and introduces new opportunities to
Foreign markets. Global business increases the opportunities for innovation and efficient in their
use of resources. For example of Unilever. It is the UK based private organizations which is a
supermarket company deals with beauty products, home furnishing, Wine and food &
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Beverages etc. Marks & Spencers also a international or global company which almost situated
in more than 190 countries.
Legal Structure of Private sector organizations are relies on the business owner. They
formed their own rules and regulations. In other words, private company needs to follow the
article of association in order to maintained the good image in front of the government.
Public Organizations : Public sector organizations is the organizations which is
controlled by the government. The public sector companies includes controllable power of
government as well as a local government bodies. The public sector includes the national
operated companies such as British petroleum which is a national company across the UK. the
basic function or aim of the these companies are not profit making. Public organizations operate
the overall function and lead the customer interest. In order to motivate the organisational
challenging growth (Hamilton and Webster, 2018). It also requires the best growing material task
in order to build up the best approach to get the higher satisfaction level. Funding of these
organisations are taken by the public in the form of tax, fees or by financial transfers. However,
the legal structure of the public sector organization is controlled by the government and without
the permission of the government company cannot set the product prices and goals. Also, Public
organisations are allow to issue its company share with the public.
Voluntary Organizations: Voluntary organization is a generic term which is generally
used for the specific type of organizations with some special purposes. In other words, voluntary
organisations are also called social organizations which main objective is to focus on the social
welfare of the society. It also helps to define the long lasting work outcomes and manage the
work accordingly. It also helps to build up the new managing goals and objectives into more
preferable manner. The main objective of a non-profit organization is something other than
earning profit for its owners. More recent scholarship has focused on the positive attitudes of
non profits organizations. Voluntary organisation collects their fun by taking the charity or
donation from the big organizations (Hillary, ed., 2017). Also these kinds of organizations are
not normally create a direct revenue stream which is remain dependent on other sectors for
financial resources. For example : Red Cross this is the global company which spread across the
world and provides the awareness among the society development.
International business is the international process to operate the business activities
globally. International growth of the business creates the competitive environment around the
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market in terms of access the land, resources, labour and capital. However, the business
environment also increases the competition level in the domestic market and brings the new
opportunity to foreign market as well. In the contrast there are some factors which affect the
operation of international businesses such as taxes, duties, currencies culture and practices etc.
Figure 1Organisational structure
2. Explaining the organizations including the background of the organizations along with their
size and scope of the organizations.
Basis Private (M&S) Public (British
Petroleum)
Voluntary (Red
Cross)
Size Private organizations
are either based on
small, medium and
large scale (Dutta and
Dutta, 2019). It totally
Public organizations
have always big size
with lots of
opportunity and
growth. Such as
Voluntary
organizations are
based on the small,
medium and large
scale it depends on the
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based on the
investment capital by
the owner. Such as
Marks & Spencer
based on the large
scale which earned
high amount of profit
maximization growth.
Also Private
organizations have
necessary to have
maximum three
directors. In other
words, M&S having
more than 80,
employees with
having high speed
growth.
British petroleum
which is a public
organisation and
provides product or
services at the large
extent. Along with
that, it also helps to
maximize the best
following results and
growth to be the most
effective learning
outcomes. Public
organizations having
minimum 250
employees and
maximum unlimited.
Also having maximum
three directors (Recica,
Hashi, Jackson and
Krasniqi, 2019).
number of members
and hold by the
company
organizations.
However, this function
needs to be required
the best following
making charges which
needs to be developed
accordingly.
Background M&S is the leading
multinational
supermarket company
which is situated in
UK market and across
the different places.
Besides,
Scope Scope of private
organizations are
unlimited. Besides,
Scope of public
organizations is
limited to the different
Voluntarily companies
are generally based on
national or
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Private organizations
can be expand their
business into national
or international
manner and get the
high profit ranging
business. However,
the business
organisations can also
expand their business
at any location and
earn enough range of
profit.
organizations. Along
with that, public
company mainly
focused on the
consumer level rather
than profitability.
international level with
the help of different
opportunity level. It
helps to deliver the
best approach and
secure the society
welfare growth.
Objectives The main purpose of
the private
organisations is to
maximise the profit
and brand image in
front of their
stakeholder (Uribe‐
Bohorquez, Martínez‐
Ferrero and García‐
Sánchez, 2019).
The objective of public
organizations is to
protect the interest of
consumers and
provides the best
affordable prices
product or services
product or services.
Voluntary
organizations are the
most leading and
general motivation and
also provides the best
services to the society
welfare.
Vision M&S vision is to lead
the good experience
and also meet out the
needs of customers
and improving the
company
competitiveness.
Vision of the British
Petroleum is to have
the best competitive
corporate, operating,
and financial
performance. Also
improve and to be
Red Cross
organisation vision is
to help volunteers,
donors and parents is
always there in times
when they needed
support. In other
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accessible, inclusive
and diverse.
words, Red Cross
always make sure that
whenever the people
need support. Red
Cross communities
will always there to
support them.
Mission M&S mission is to
make the product or
services more quality
effective.
BP have one mission is
to deal with integrity,
dealing, treating
everyone with respect
and dignity.
Red Cross mission is
to protect human
suffering in the face of
emergencies by
mobilizing the power
of volunteers and
generosity of donors.
Legal structure Legal structure of the
organization will help
to recognize the
working opportunity
task and more
effective working
outcomes. Private
organisation made
their own policies and
legal structure without
the interference of
government.
Public companies has
to followed the legal
rules and regulations
imposed by the
government. Public
organizations has to
followed the legal
structure of
government.
Voluntary group of
companies needs to
followed the
government structure
if they are owned by
the government.
Otherwise, it makes
their own rules and
regulations.
Stakeholders Stakeholder of the
organizations are those
that affect the business
organization in
Stakeholder of the
public sector are
customers,
competitors, sellers,
Stakeholders of the
charity foundation
companies are paid
off, funders, different
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different manner.
Stakeholders are
customers,
intermediaries,
suppliers, government,
competitors etc
(Klepac and Berg,
2019).
intermediaries etc. business group,
individuals etc.
Product or Services. Private organizations
generally having the
variety of product or
services with different
ranges. Such as food
& beverages, clothing,
home furnishing etc.
Product or services of
the British Petroleum
are BP gas/petrol
stations, fuel cards and
credit cards,
Lubricants, Aral
(Europe ) etc.
Red cross spread the
social services and
provides the medical
services to the needy
people who can not
afford their own
medical bills.
3. Different business functions by using the business chart to show how these functions
interlinked with advantages or disadvantages.
There are different kinds of organizational structure which can be followed by the
company such as given below:
Line Organizational Structure : Line structure of the company refers the direct or
vertical relationship with other different levels. This is one of the most simplest structure of the
organization, its authority flows from top to bottom. Unlike, other structures, specialised and
supportive services do not take place in these organizations.
Divisional structure : In this structure every organization function has its own division.
Besides, In that each functions they have their own resources and functions. The advantage of
this function is it is independent operational flow which never affect to other departments.
Horizontal Flat Structure : Flat structure has generally adopted by the small
organizations. This model is impossible to acquire by the large organisation with multiple
projects (Cruz and et.al., 2019).
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Matrix Structure : Matrix structure mostly very rigid, this structure generally acquired
where the employees having the similar skills are pooled for work. In this structure employees
has to report to their managers. For example: marketing employees has to report their marketing
manager.
Management structure of M&S
M&S adopt the flatter structure to acquire the role culture environment within the
organizations. By adopting the delayering process within the organization. M&S has lots various
authority number of employees within the organizations. Such as In London head office
company having 3000 employees and they all have specialist roles within the organisations.
Different functions of M&S
Marketing function : Marketing function of the company is highly effective and
productive to satisfy the needs of buyers. Marketing function enable to connect the customers
with the M&S. However, the main function of the marketing is to influence needs and wants of
the customers. Flat structure helps in fast communication without the number of mediators and
also very cost effective. Or on the other side, the disadvantage of this structure is lacking of
bosses to whom employees report within the M&S function.
Research Development function : Research and development function of the
department is very significant towards the M&S. This department ensure the new product idea
and new idea which is based on new innovation (Winnubst, 2017). In other words, this
department is responsible to reduce the cost and increases the profitability ratio of the M&S
along with the allocation of resources in proper manner. Flat organisational chart helps to
support the different functions by making easier decision making process among all employees.
In contrast, this chart also restrict or limit the growth of other functional departments of M&S.
Financial functions : Financial function is the another necessary function of the M&S.
Likewise, This organisation function responsible for managing the requirements of capital funds
which is required to fulfil the company need M&S ants of resources. Financial manager also
liable to ensure the company taxes, fees that needs to paid to the government. Also this
functional department is responsible to ensure the administrative employee expenses and
salaries. It also helps to promote the high advancement results and goals.
Human Resource functions : HRM function of M&S is responsible to manage the
recruitment, selection, training and development of the employees. It also helps to ensure the
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maximise their potential in a manner that furthers organisation objectives works according to the
best possible manner (Ashkenas and et.al. 2015). Flat chart of M&S helps HR manager to flow
the communication or any message into more faster manner. Also, with this kinds of different
organisational manner. Apart from that, it also analyse the following leading changes and brings
the effective challenges growth.'
In other from the basis of above functions of the organisation is smoothly runs by the
help of applying flat structural model.
PAET 2
1. Explains PESTLE analysis and identify the various macro environmental factors that have an
impact.
PESTLE analysis of Marks & Spencer
Political factors : There are various political factors which can give various benefits to
the Marks & Spencer and can affect its performance as well. Political stability of various
countries can be beneficial for the Unilever. For example political stability of United states can
be beneficial for the company. Because due to political stability the company now have to face
minimum challenges while implementing it to the country. The restrictions by the various
countries on the import and export of the product can restrict the company to limited areas and
may hinder the company to go forward.
On the other side, political factors affect BP organizations in order to determining the
factors that can impact BP profitability growth in certain situations. Due to dynamic environment
of the countries such political factor might affect the company functions.
Economic factors : The economic factors state about the economy of a particular country
(O'Neill, Beauvais and Scholl, 2016). The economic factors include interest rate, exchange rate,
inflation rate etc. The customer buying behaviour also affect due to these factors. Increase in
GDP of the country may affect the performance of Marks & Spencer. i.e., if GDP increase than
the Marks & Spencer. will also grow in future. If there is high level of unemployment in the
country than the people will be willing to work at the lower wages which will be beneficial for
the company.
In terms of BP economic factors affect the business by inflation, saving or interest rates
due to reason of aggressive investment in an economy.
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Social factors : Social factors includes the culture, beliefs and attitude of the society in
which the company operates. An understanding of the customer, their beliefs and values will
help the Marks & Spencer (Lee, Kozlenkova and Palmatier, 2015). to make the marketing
strategies accordingly. The difference between the education background of customer and
marketers creates a gap between them as a result the company become unable to relate to the
target market and gain their attention. Therefore it is necessary for the company to consider
social factors.
Social factors affect BP in terms of environment protection manner. In order to that,
company needs to focus on the customer needs and wants by designing the marketing message
for Oil & Gas industry buyers.
Technological factors : As the technology is changing rapidly thus creating the
opportunities and threats to the companies. It is thus necessary for the companies to constantly
look to the new technologies and consistently innovate the products in order to achieve success.
The impact of technology can also affects the Marks & Spencer. overall profit as the technology
is changing day by day if not monitored properly than it can affect the business.
In Oil & Gas industry, BP got affected by the new changes in technologies. New
technologies helps to increase the fast speed.
Environmental factors : Every industry has its own environmental protection norms
which focuses to cause less harm to the environment. These norms guides the companies to how
to operate their business in the particular industry (Strese and et.al. 2016). For example the
expected pollution and degradation caused by the oil company is not same for the textile
company. Each company as well as industry has to follow different norms. The change in
climate and whether may affect the Marks & Spencer. business as it will create the problem for
the company to manage transportation of resources as well as finished products.
In Oil & Gas industry they having dynamic and distinct norms and policies that company
needs to adopt to their better functioning level in the market. In Oil & Gas industry should need
to ensure the positive outcomes and goals to bring outcome the best performing outcomes and
goals.
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Legal factors : Legal factors include rule and regulations of the particular country. The
legal factors include intellectual property law, data protection law, discrimination law, health and
safety law etc. It is necessary for the company to follow these laws. The discrimination law
enforced by the government ensures that the Marks & Spencer (Butler and Wilson, 2015).
should give equal opportunities to all its employees regardless of age, gender, sex, religion etc.
The laws are made by the government to protect the customers from any type of harm or
cheating.
In Oil & Gas industry Legal factors are highly concerning and effective learning goals in
best performing manner. Bps should make sure some of the factors before entering into the new
country such as antitrust law, discrimination, copyright, health and safety law.
It has been concluded that Pestle analysis is the more challenging and effective working
task that has been concluded the best style of management. Pestle analysis model can helpful to
analyse the external environment. Along with that, pestle analysis can helpful to measure the best
following results and goals. Pestle analysis is helpful to better communicate the plan and make
the best opportunity task and goals.
2. SWOT TOWS analysis both organizations to identify the key strength and weaknesses.
SWOT analysis of M&S
Strength: M&S having the leading retailer in the UK. M&S having the good marketing
experience by gaining the good faith from the buyers which is the biggest strength of the
company. On the other side, M&S also has good brand recognition power where the buyers
easily recognize the brand and maximize the customer satisfaction.
Weaknesses: Weakness of the company is sales decline due to lack of public reviews in
clothing and food section. On the other hand, M&S also requires to work on the public relation
which must for the company development.
Opportunity: Opportunity gain for the M&S is to maximize the market growth by
international expansion. However, exploring the opportunities in other big economies is worth
the effort. Online expansion is another opportunity that company could adopt to gain the market
value.
Threats : The Biggest threat for the company is competition of new entrants in the
market.
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SWOT analysis of BP
Strength
 BP has number of subsidiary
companies that helps company to
gained different source of revenues.
 BP also having strong brand loyalty
position in the market (Butler and
Wilson, 2015).
Weaknesses
 BP faced challenges and issues which
damage the company.
 BP company executives handle issues
in very poorly manner.
Opportunity
 BP has high potential to grow in the
market.
 BP focus on further developing many
of its subsidiaries that are outside of it
petroleum long lasting behavioural.
Threat
 Environmental issue may continues to
be threat if the organisation is
ineffective goals opportunity gain.
 Is difficult for the company to face the
competition from the emergencies of
specialised alternatives energy
companies that are offering the
technology and affordability to
encourage greater migration.
As per the above discussed SWOT analysis it has been concluded that how much
effective analysis it is necessary to be the most essential part. It has been found out that, M&S is
suffering from environmental issues. Also, M&S facing competition due to high working
objectives.
3. Critical reflection of key findings and evaluate how they influence their decision-making
process.
Business situation is the dynamic geographical area that usually affect the whole internal
or external environment of the business. While making in strategic business plan or brand
expansion plan. Company has to go through from such factors in order to ensure the stability
growth (Gaganis, Pasiouras and Voulgari, 2019). Each factor of the business affect the company
internal environment such as technological factors of external environment can affect the
productivity performance of employees in can be a negative or positive manner. However, the
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uncertainty changes in legal environment can affect the employee behaviour such as changes in
wages act can affect the employees in positive or negative manner. So in order to that, this is
how external and internal factors affect overall business task.
However, it has been analysed from the above report that each business nature is different
that affect their organisational structure and also brings opportunity for the company as well.
However, such as business organization also affect the business in proper manner and also brings
opportunity and threat for the company functions (Hamilton and Webster, 2018). However, all
the such factors can affect the decision making approach of the business which brings the long
lasting range or results in different context. In other words, the cumulative business factor can
affect the decision making approach of creating many commitments that are difficult if not
impossible to reverse in the short term. On the other side, consumer preferences influence these
decisions in some cases but only to the extent that they strongly affect the ability to generate
profit.
It also concluded by this report that policies are the another factor that influence the
business decision making power. Such as employee rights, property rights, disclosure mandates,
taxes etc. all such factors affect in policy making process.
CONCLUSION
As per the above discussion and analysation, it has been concluded that business
environment is highly dynamic and uncertain that influenced by the different internal or external
forces. Internal factors are customers, employees, employers, suppliers. Besides, external forces
are political, legal, environmental, economical, social. All such factors involves in the business
environment which are highly uncertain in nature. However, the study explained about the
different types of organizations along with their size and scope. Also it analysed different
function of the organizations and how they interrelate with the company structure. In the next
segment of the report has discussed about the SWOT and PESTLE analysis to determine the
strength and weaknesses. In the last segment of the report study also concluded the findings and
evaluates how such factors influence decision making process.
Environment factor also affect the business decision making power and affect the
positive action plan to cover the effective management goals and brings the best outcomes for
the better organizational goals. This is the best advantage goals and objectives that company
needs to be followed. In order to enhance the competition level and also organize the best
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outcomes and managing the work effectively. In other words, it also helps to continues the
effective working outcomes. Overall study explained the positive and negative impact of the
business environment factors and how they affect the decision making process.
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