Business Environment and Performance Analysis

This assignment involves analyzing the business environment's effect on productivity and efficiency in European life insurance companies. It requires understanding and synthesizing information from multiple sources, including academic articles and industry reports. The goal is to identify key factors influencing business performance and provide recommendations for improvement.

Business & Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1: ESSAY.............................................................................................................................2
Introduction..................................................................................................................................2
a) [P1] Different types and purpose of organisation....................................................................2
b) [P2] Size and scope of different organisation.........................................................................3
[M1] Analysing structure, size and scope of different organisation............................................4
c) [P3] Demonstrating different organisational function of two organisation.............................4
[M2] Advantages and disadvantages of interrelationships between organisation functions.......6
Conclusion...................................................................................................................................6
PART 2: REPORT...........................................................................................................................7
Introduction..................................................................................................................................7
Section 1:.....................................................................................................................................7
[P4] Positive and negative effect of macro environment on business.........................................7
[M3] Apply PESTLE on Marks and Spencer..............................................................................8
Section: 2.....................................................................................................................................9
[P5] Internal and external analysis of Marks and Spencer..........................................................9
[M4] Applying SWOT analysis on M & S................................................................................10
Section: 3...................................................................................................................................11
[P6] Interrelation of strength and weakness with external macro factors.................................11
Conclusion.................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment refers to aggregate of all conditions and events which are surround
by business and affecting to them. As it consists with both internal and external factor which is
having huge impact on performance, functioning and decision making of an entity. This present
assignment will discuss about effect of both factors on Mark and Spenser company. Along with
this aims of objectives of different organisation has been explained with their organisational
structure.
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PART 1: ESSAY
Introduction
In this section, there will be a brief discussion about different organisation has been done.
It will also highlight the size and scope of Mark and Spencer company and how they are
operating their business in competitive market (Eling and Schaper, 2017). Along with this,
relationship between various organisation function has been discussed in detail with their
structure and objectives respectively.
a) [P1] Different types and purpose of organisation
In modern era, there are different kind of organisation and all are having their own unique
aims and objectives. An organisation structure of company is depending upon their nature of
business. An aim of Mark and Spencer company is to become leaders in this sector and make
strong customer base. This company is trying to achieve their objectives by adopting different
strategies. As there are different types of organisation which has been explained as below along
with their purpose and legal structure.
Private sector – In this sector, entities are wholly-owned subsidy by individuals where
legal body is not having role. As these kind of organisation are operated by group of people and
are sharing profits among them only (Drucker, 2017). For example, M&S company is controlled
and regulated by group of people where they are sharing their profit and loss among them only.
The main motive of this company is to earn large amount of profits and to capture market share
as much they can. There is different legal structure of this sector where individuals are having
choice to operate or establish their business in competitive market.
Sole trader – This structure can be followed any type of person because they having
choice to set their “own brand name”. Here individuals are having full control over their business
and running this own their choice.
Partnership – It is that arrangement where two or more individuals are coming together
for sharing their profits and liabilities. The main aim of conducting this type of business to
expand the business in different sector.
Company – As it is considered as legal entity where organisation has to comply with
specific rules and regulations which are framed by government (Prajogo, 2016). In this company
is owned by shareholders which are elected by board of directors.
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Public Sector – In this, shares of company are listed in market for the first time. Here
sometimes companies are regulated and controlled by the government. For example, NHS
(National Health Service) is public organisation who is providing many different services to
customers and also having few number of ownership (Crane and Matten, 2016). The purpose of
establishing this organisation is to offer facilities to those people who are afford to take proper
treatment from large organisation.
Voluntary sector – In this organisation are having number of meaningful activities
which are performing by them. As they are providing many facilities to those people who are
poor and can’t afford to satisfy their basic needs. For example, “Save the Children” which is
largest charity in UK and whose purpose is to provide better life to poor people and fight for
their rights.
b) [P2] Size and scope of different organisation
The nature of business is also classified on the basis of their size and structure. All
organisation is having own aims and objectives and following their own structure to fulfil their
aims and objectives. The size and scope of private, public and voluntary organisation has been
explained as below:
Private sector: Mark and Spencer company is large retail store who is providing goods
and services across the country. Here the employees of this company are more than 90,000 who
are working at different level of organisation (Kolk, 2016). As there are many outlets of this
company are situated at different place so that they can satisfy the requirements of customers. To
operate business in this sector is having large scope because company can expand their business
in different sector and generate more profit with them.
Public sector: The services which are NHS are having wider scope rather than anyone.
Here, managers are trying to maintaining positive environment so that they can serve appropriate
facilities to patients. Many employees are working here and their aim is to improve the quality of
services and make more effective use of equipment’s by adopting high technologies.
Voluntary sector: In this sector, different kinds of services are provided by NGO whose
aim is to satisfy the basic requirement of people. Here, the scope of establishing this type of
business is wider because there are many people who cannot afford themselves to fulfil their
desires (Simões and Mason, 2016). For example, NGO “Save the Child” are offering and
supporting to those children who cannot fight for their rights. Along with this their lifestyles are
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also improving by giving them some job opportunities. Furthermore, people are having choice to
leave or retain in organisation as no restriction is putted on them.
[M1] Analysing structure, size and scope of different organisation
The structure of each organisation is different from others and their aims are also not
similar with anyone in some manner. For example, an objective of M&S company is to serve
best quality of products and services to customers and offer them wide range of choices so that
they can purchase all stuff from single place only (Huhtala, Vaniala and Tikkanen, 2016). So,
they are adopting those strategies in which they can cope with their set targets and attain them
within time period. Apart from that, an objective of NHS provides better treatment to patient at
reasonable price so that they can easy afford for this facilities.
c) [P3] Demonstrating different organisational function of two organisation
In organisation there are different departments who has to work in coordination for
attaining their aims and objectives. It can be also said that all function of business enterprise is
linked with each other and they are focusing on to carry out effective management in order to
execute their activities in smooth manner. An organisation structure of Mark and Spencer is
below
Figure 1: Organisational Structure
(Source: Organisational structure, 2016)
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The structure which is followed by this company is divisional because they are having
large of stores which is operating from different places. Apart from that, all departments are
coordinating with each other. For example, finance department is making the budget for
marketing department so that funds can be properly utilised by them. It is responsibility of both
departments to invest and set the budget in such a manner to cope up with organisation
objectives (Wu, Chandramohan and Bali, 2016). Besides this, human resource department is
responsible for recruiting and selecting highly talented employees so that they can make
contribution in the success of company. Apart from that they have to also work with other
departments such as finance, marketing so that they can recruit talented employees according to
vacancy which has been raised. Further, sales and market department has to come up with each
other so that they can target and sale the products to customers to satisfy their needs and attain
their marketing objectives.
The organisational structure of NHS is as below
Figure 2: Organisational Structure
(Source: NHS, 2016)
An organisational structure of this company is based on divisional because they are
delivering quality of services to people (Organisational structure, 2016). Here, roles and
responsibilities of each and every department are bifurcated so that they can provide best
services to people. Apart from that in order to attain their goals and objectives every department
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has to work in coordination so that they maintain their strong position in market. For example,
human resource and finance department has to work together in order to recruit highly talented
employees which also facilitates workflow system in proper manner (Eling and Schaper, 2017).
Apart from that, marketing and finance department has to work in effective manner in order to
promote the awareness of NHS and people can come here for getting best treatment.
[M2] Advantages and disadvantages of interrelationships between organisation functions
The advantages of different organisation function are that it become easy for entity to
attain their goals and objectives with in time period. Along with this they can utilise funds in
proper manner reduces the wastage which are doing by other departments. As it will also help to
staff to increase their skills and capabilities in order to execute task in appropriate manner
(Calabrese and et. al., 2017). Apart from that, disadvantage is that sometimes it become different
for organisation to work with all department and this can also delay in accomplishing with their
goals and objectives. Through this M&S company will also face problem in maintain their strong
position in market.
Conclusion
From above essay it has been concluded that aims and objectives of M&S has been
discussed and according to that organisation is working upon that. Apart from that organisation
function has also analysed where entity can work efficiently to retain in market for a long period
of time.
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PART 2: REPORT
Introduction
This assignment is going to describe effect of macro surroundings on an organisation,
which can be either negative or positive (Drucker, 2017). It is fundamental for an employer to
consider these elements while doing business, as it will aid to take competitive benefits.
Additionally, this report is going to portrays intrinsic and extrinsic examination of M & S.
Section 1:
[P4] Positive and negative effect of macro environment on business
Macro surroundings can affect operational activities of a company in wide range. Entire
components can provide impact to their working. This will be positive or may be negative also.
Therefore, it is required for a manager to comprehend it in an appropriate manner and arrange
then adequately because it will be harmful for firm. It will include some essential elements,
which are mentioned as beneath:
Political: This sort of condition comprises activities of regulatory bodies which covers
entire choices which are taken by them and this can affect operations of business (Prajogo,
2016). It can be on many levels such as national, domestic and global. In United Kingdom, many
laws are implemented by ministry body related to tax which cater benefits to association. They
trusted that this will expand income yet this administer had negative effect on UK economy in
light of the fact that these expenses were suggested on firms yet organizations got all these
assessments from clients by expanding costs of items. This did not run well with clients and offer
of items diminished because of their buying power.
Economical: If economy of nation is going good, there it is required to modify process or
policy of an enterprise. Financial circumstances of United Kingdom was bad couple of times
back; therefore, it is needed for companies to alter their policies to remove problems. They
confronted joblessness likewise as a result of which clients are not able to buy something from
marketplace (Crane and Matten, 2016).
Social: This sort of components can provide impact to exercises of M & S. These
elements incorporate tastes as well as inclinations, choices, selections of clients and many more.
It is must to examine that type of data; thus, an enterprise will accomplish demands and needs of
their buyers in an effective manner.
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Technological: Company needs to utilize new tools and techniques into their business;
hence, they will accomplish their work in an adequate way (Larson and et. al., 2017). This will
help them to complete their task within limited period of time. As a result, they can accomplish
wants of their clients timely. It will assist them to enhance their goodwill and profits. In addition,
they can take benefits from their competitors at competitive world.
Legal: Different sorts of laws and in addition standards which are imposed by regulatory
body of UK on M & S. It will be associated with staff members and organisation itself. Whatever
the situation, it ought to be executed through firms whether they need to actualize it or not.
Environmental: It incorporates each one of those components which affect condition like
contamination, junk creation (Kolk, 2016). M & S needs to reduce their garbage; thus, they can
protect environment in an appropriate manner.
[M3] Apply PESTLE on Marks and Spencer
It is fundamental for an association to examine macro environment which is related with
their business. For above stated purpose they can use PESTLE structure:
Political: In country, political conditions are not stable; hence, an association will
face many issues, if they are going to enlarge their business across the
world. Government imposed tax laws which can affect operational
exercises of Marks and Spencer (Simões and Mason, 2016).
Economical: Organisation is doing their business in domestic market; therefore, they
cover maximum share of marketplace.
Social: As there is social alterations in United Kingdom; so that now people want
to purchase goods from a single store only.
Technological: Enterprise is utilizing new or unique techniques into there business; as a
result, they can easily attract individuals towards their products and
services (Huhtala, Vaniala and Tikkanen, 2016).
Legal: This can provide influence to company in huge manner. But by following
all policies an association can conduct their business activities in an
adequate manner.
Environmental: Regulatory body is pressurising firms to fulfil social obligations. This will
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aid them to develop their reputation at global and national marketplace.
Section: 2
[P5] Internal and external analysis of Marks and Spencer
It is fundamental for an association to examine their intrinsic and extrinsic environment.
For above stated purpose, they can conduct SWOT and PESTEL investigation (Wu,
Chandramohan and Bali, 2016). As a result, they can have identified their strengths as well as
shortcomings.
PESTEL analysis:
Factors Description
Political factors It is essential for an enterprise to follow environmental and safety rules
while conducting business. Therefore, M & S is trying to produce those
goods which are healthy in nature and do not harm health of people.
Economic Factors It is much related to success of an organisation. Retail segment of
United Kingdom is growing continuously. As comparison to last year,
market share of M & S is increasing by 5% (Calabrese and et. al., 2017).
Social Factors It will consist various segments, such as cultural, demographical and
many more. It is required for a firm to know demands of their clients;
therefore, they can fulfil it timely.
Technological
Factors
If they are adopting new techniques and methods into their business
then, they can produce items effectively. Along with this, M & S is
providing their goods online to their buyers.
Legal Factors There are many laws and regulations which are developed by
government to protect employees and clients. It is necessary for
company to follow entire laws which are linked with their firm.
Environmental
Factors
It is fundamental for an enterprise to reduce wastage; thus, they can
protect environment from any kind of harm (Agrawal, 2016).
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SWOT analysis:
Strengths Weaknesses
 Company is operating their own store
which is much famous in UK.
 Brand image of M & S is much
effective, which aid to compete
competitors at marketplace (Newell and
et. al., 2016).
 As they are accomplishing CSR
activities which help them to improve
their goodwill.
 They have almost 80 stores in all over
the world.
 Food market sales are continuously
decreasing because lots of companies
are there at market which is providing
similar sort of items to people.
 There investment's return is much less.
Opportunities Threats
 With assistance of online selling they
can improve their client base in an
effective way.
 By expanding business, organisation
can easily enhance their market share.
 As they are having best market position
at marketplace and quality is also good;
therefore, they can easily offer items at
high prices to their clients (SWOT
Analysis of Marks & Spencer, 2017).
 Tastes and preferences of people are
quickly change; thus, they need to be
updated regarding this.
 Organisation has too much rivals at
marketplace; hence, they have to
develop an appropriate policies or
strategies to beat them (Schaper, 2017).
[M4] Applying SWOT analysis on M & S
Strengths:
 Effective brand image
 They are enhancing their sales across the world. Infrastructure of enterprise is much impressive (Kumar and Yakhlef, 2016).
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Weaknesses:
 Price of items are high.
 Diminish pre tax revenues. Environment of firm is not efficient.
Opportunities:
 They can develop their business online.
 Enterprise can expand their goods in some sectors like home, food as well as beauty. M & S can cater clothes for kids also.
Threats:
 Their foreign market is not going good.
 Competition is wide.
Section: 3
[P6] Interrelation of strength and weakness with external macro factors
This can be described as beneath:
Political factors: If regulatory body is going to implement new laws then, it can affect an
organisation either positively or negatively. Therefore, government of United Kingdom imposed
new policy related to tax; as a result, overall burden is bear by clients while they are making
payment. Hence, this sort of policy is not much accurate for nation (Doh, Luthans and Slocum,
2016).
Economic factors: If there is any sort of modifications in the policies of United Kingdom
then, they are not able to do their business in an appropriate manner.
Social factors: This type of elements help to determine quality as well as form of item
which are accessible at marketplace for people. It is required for an enterprise to get updated
about their demands; therefore, they can fulfil it within limited period of time.
Technological factors: It is necessary for an enterprise to utilize new or unique tools and
techniques into their business; thus, they can develop more effective products.
Legal factors: M & S needs to follow all rules and regulations which are associated with
their firm; hence, they can run their business smoothly (Doh, Luthans and Slocum, 2016).
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Conclusion
From the above report section, it can be concluded that factor of micro and macro
environment is affecting activities of Marks & Spencer. A detailed analysis has been included in
this report. Along with this, positive and negative impacts of M&S are also analysed. A SWOT
analysis is also conducted to know the strengths and weaknesses of company.
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CONCLUSION
From the above report it can be concluded that business environment is plays a very
important role in conducting activities in an organisation. Here, two different sections have been
formed which includes an essay and report. The essay section discusses the purpose and types of
business organisation and background of M&S. Its organisational functions, structures, scopes
and operations are studied in systematic way. In report section, detailed analysis of micro
environmental factors of Marks & Spencer is conducted. Various types of marketing tools which
includes PESTLE framework, SWOT Analysis are also included here to analyse current business
environment of M&S.
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REFERENCES
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