Business & Business Environment: Marks and Spencer

BUSINESS & BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Various types and purposes of organisations such as public, private and voluntary sectors
.....................................................................................................................................................3
P2: Size and Scope of a range of various types of organisations chosen for the purpose.........5
P3: Relationship between various organisational functions and how they link to
organisational objectives and structure of Marks and Spencer..................................................7
P4 Identify the positive and negative impacts the macro environment has upon business
operations....................................................................................................................................9
P5: Internal and External analysis of Marks and Spencer in order to identify strengths and
weaknesses................................................................................................................................11
P6: Strengths and Weaknesses interrelate with external macro factors for the chosen
organisation...............................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment is the most attractive topic in the organization which is includes all
the essential terms and conditions for the purpose of business related. Marks and Spencer is a
leading organization for increasing their business all over the world. This organization is based
on British firm and providing the different types of products such as cloths, food, financial
services and house holds items. M&S is manly concern about their legal structure and different
policies which are required for organization to manage the business process and functions. This
report will discuss about the different type's organization such as public, private and voluntary.
This assignment will discuss about the different size and scope of organization and their specific
purpose. Further, it will discuss the positive and negative impact on the macro environment of
business process and also analyse the internal and external factor of business environment by
using SWOT analysis.
P1 Various types and purposes of organisations such as public, private and voluntary sectors
Public, private and voluntary organization are the most part of business environment that
could be divided according to their growth and productivity.
Public Private Voluntary
Aim Public organization is
providing the services
to customer and
making a profit for
increasing the sales
and profitability
(Adegbite and et.al.,
2018 ). This
organization is
providing the cheap
service which is
beneficial for the
organization.
Main aim of this
organization to
increase their
profitability and
productivity in
marketplace. Private
organization mainly
focus on expanding
their business all over
the world.
Voluntary organization
is based on non profit
firms that provide the
best services for people
free of cost. Main aim
of this organization to
provide facilities and
services for poor
people.
Legal structure Public sectors refers to Private sector is based Voluntary sector is also

all the business
process and operations
is maintained by the
local government. This
organization is directly
funded by the
government.
on the joint stock firms
that is owned by one
or more people. There
entire legal structure is
maintained by the
owner of
organizations.
known as non-
governmental company
that could be maintained
by local authority and
trust. All the legislation
rules and regulation are
maintained by the
nearby communities.
Purpose Main purpose of
public sector to
enhance the business
process but also
providing the facilities
to their people in
proper manner
(Anderson and Bahati
et.al., 2017).
For Example- NHS is
public organization in
England and providing
the best services to
their patients.
Main purpose of
private sector to build
their empire across the
world. They also
increasing their sales
and production in
marketplace. For
Example- Sainsbury's
is private company
which is based on the
private sector to
expand their business
all over the world.
Main purpose of non-
governmental
organization for
providing the best
services to social
communities and human
welfare. For Example-
CCD is based on NGO
organization which
provided the best
services to their
customer.
Purpose of Marks and Spencer with legal structure-
Each and every organization has some specific purpose for achieving their goals and
objectives. In this way, they will acquire the positions in the marketplace. Public and private or
voluntary organization are different sector that help for increase the condition of country
economy. Marks and Spencer structure follows some specific sequence of management system
that help for building their business across the world. This structure will help for boosting the
level of employee towards their goals and achievements. They can feel safe to express their
feeling and opinion towards the organization (Bloom and Terry et.al., 2018).

An effective structure get help for providing the rights direction to employee. In this way,
staff member of Marks and Spencer can be increased their profit in marketplace. M&S follows
the flat structure which help for running and business in proper manner. This organization help s
the people to decrease the level of frauds and employees are more efficient for managing the
department of organization. All staff member follows the chain rules to communicate with the
higher authority to build an effective relationship between them. Marks and Spencer is the fastest
growing organization to achieve their goals and objectives (Caiazza, Shimizu and Yoshikawa,
2017).
Sole trader- Sole trader is the simplest and common structure of entrepreneurs and new
business. Sole trader are legally responsible person that manage the business and financial profit
and loss of the organization. There are some important responsibilities of sole trader:
 Always keep the records of business expenses and sales.
 Paying the income tax on the basis of national insurance.
 Sole trader also sending the self assessment tax and return in every year.
Shareholder- Shareholder is an individual or the organization that legally have own share and
stock in the private or public sectors. It is a part of organization to participate for maintaining the
market share. Shareholder is liability for the firm and cannot paid the share price.
Stakeholder- stakeholder is group or person that interested towards the organization and it also
affects the objectives, policies and action of the company.
P2: Size and Scope of a range of various types of organisations chosen for the purpose.
There are different type of organization such as Micro, Small, medium sized organization
that have some specific objectives, purpose and supply the best quality of good and services. The
companies can be describe according to their size, structure that set up specific purpose for
achieving their goals and objectives.
For profits organizations- Any type of business and corporation has been set up with primary
goals and objectives to generate more profits and revenue in the marketplace. Profits
organization are describes such as private organization that providing the best quality of facilities
and services. This organization mainly focus on increasing their business process and activities
all over the world. This organization is generally operates the private sector which is based on
owned by individual and group of people.

Not for Profit organizations- not for profit firms are those companies which are set their own
purpose to gain the financial. These organizations are generating profit but provide the facilities
to their public. Like providing the charities for social communities and human welfare.
Non- Governmental organization- this organization is basically referred as NGO, which is
based on the independently operates the firm from the government. This organization is building
their business with the help of funds that provided by the government and other charities
(Erl,Merson and Stoffers, 2017).

Small, medium and large enterprises have different business objectives, purpose, size and
Scope-
Small Medium Large
 Small organization
have small work
together approximately
10- 20 people. In this
way, this organization
is generating less
revenue such as $1.3
million in the
marketplace. The
numbers of employees
are unknown.
 The organization scope
is only depend on the
market position which
is required for small
business to manage
entire process
effectively and
efficiently.
 Medium organization
have less than 70
employee work
together. It can be
generate
 $2.6 million. It
generates medium
revenue in
marketplace.
 Medium firms are
expanding their
business across the
world and they always
trying to increase their
productivity and
profitability. In UK,
there are already
established their
business process.
 Large organization
have more than 250
employee work
together. The big firms
always generate high
revenue which is useful
for the business process
that support the country
economy.
 Large firm are already
established their
business in
marketplace. Large
firm is maintained their
market position which
is required for growth
and development.
For Example- Marks and Spencer is the fastest growing organization which is based on private
sector. This firm hold the strong position in global world and also targeting audience and people
providing the best services according to their requirements.

P3: Relationship between various organisational functions and how they link to organisational
objectives and structure of Marks and Spencer
Marks and Spencer performs different operations and functions for managing the
marketing, production, sales or billing system etc. these are important functions that performs
different departments to maintain their services. The structure of organization define the
relationship and interaction between the different parts of business. Marks and Spencer uses the
divisional structure that are interconnected with the other functions of Marks and Spencer.
Divisional Structure:
This structure is the main part of organization for dividing the categories according to each level
of department. Marks and Spencer have divided the each product has it owns functional groups
such as Marketing, sales, Accounting, finance and human resource management etc. the main
advantage of this approach for dividing the departments to handle the business operations and
functions in proper manner. Employee is playing main role in the marks and Spencer for identify
the actual functions and lot of redundancy or inefficiency (vans and Barlow et.al., 2017). There
are various type of human resource operations that are required for marks and Spencer such as
training and development, recruitment and selection etc. these tasks will help for finding the
efficient employee for managing the entire business process in effective manner.
Illustration 1: Divisional Structure
(Source : Divisional Structure of organization, 2018)

Different departments are interrelated with each other in the marks and Spencer
Human resource- Human resource management is the best part of marks and Spencer
that follows different function in the organization such as recruitment and selection, training and
development, appraisal and employee record, legislation rules and regulations etc. All these tasks
performed by HR officer. There are many responsibilities to manage the entire business process
of organization. HR office also communicate with other department for build strong relationship
between them. Marks and Spencer is a leading organization which is requires for performing
different task for goals and achievements (Fabuš2017Foss and Saebi., 2017).
Financial department- Finance department performs variety of function to control the
entire business process such as cost of product, market values, overall budget of product etc.
these are important criteria that could be handled by the finance analyst.
Marketing-Marketing department is planning an effective strategy for increasing the
productivity and profitability in marketplace. Marketing team is determining the need and
requirement of client by using different tool and platform that available in marketplace. This tool
help for promotion such as website and mobile application etc. Marketing team and human
resource management are communicated with each other and sharing the information regarding
the demand and product etc. for growth and development of marks and Spencer, it is required to
plan strategies and approach that applied in the business operations and functions.
P4 Identify the positive and negative impacts the macro environment has upon business
operations
Macro environment involves all the important factors that are required for impact on the
business process. Macro environment is an uncountable factor which is the basic part of
organization to control all the achievements and their goals on time. There are different factors
discuss in followings:
Political factor- Political factor includes Fiscal policy, policies and trade tariffs etc. this
factor is impact on the business operations and functions. This factor is covers all the essential
problem, and issues related the politics because sometimes, it affects the entire business process
and market values. Marks and Spencer is also deals with the political factor in the organization.

Economic- Economic factor is playing important role in the organization because it
depends on economy of country or nations. The positive is that when the Marks and Spencer is
the growing organization to expand their business all over the world. It is required for firm to
increase their productivity and profitability in marketplace. This organization is supply the
products and their services according to the consumer. This factor is daily impact on the
company and their performance. The negative impact of this factor is to effect the long term for
purchasing power of customer and demand changes.
Social factor- this factor is the environment of market and also determinants towards the
culture, traditions, trends and population etc. sometimes, it affects the business process because
many people uses the old traditions but organization is not full their requirement on time. It is
required for business to manage their need and providing according to their requirements (Jones,
Wicks and Freeman, 2017).
Technological Factor-Technology factor is positive impact on the marks and Spencer
because this organization uses the latest technique to promote their product and service in
marketplace by using tools and platforms. This factor will help for increasing the efficiency of
business process. Sometimes, it effects negative due to unavailability of resources and
informations. The organization is not update their website in proper ways which create negative
impact on the customer. It is required for firms to manage their business operations and functions
in proper manner.
Legal – Marks and Spencer deals with the legal rules, policies and condition of
organization which is required for managing the entire business process in proper manner. This
factor will help for employees to provide the facilities regarding equal rights but sometimes, it
affects the organization and against because employee misuse this right to damage the name of
company in the marketplace. In marks and Spencer, Manager is communicating with the staff
member to determine their need and also clear their doubt related the goals and achievements.
Environmental- This factor is influence and determined by the environment of
organization, economic factor included climate, geographical locations, globe change in climate
and offsets of environment etc. the positive impact of environment is that when marks and
Spencer create an effective environment for their employee which required for growth and
development. It is directly impact on their working experience. They learn new things that could
be implement in the business development process.

P5: Internal and External analysis of Marks and Spencer in order to identify strengths and
weaknesses
Marks and Spencer is a popular retail based organization and their headquarter in
London. This firm provide different type of product to their customer such as cloths, footwear,
accessories, men wear etc. there are different type of categories available in marketplace.
Strength in the SWOT analysis of Marks and Spencer-
Strength can be defined as the business process and how many ways to increase their
brand value as compare to other competitors in market. There are following strength of Marks
and Spencer.
Illustration 2: Pestle analysis
(Sources- Pestle analysis, 2017)

Clear Brand image-M& S is already maintained their brand value in marketplace and this firm is
targeting the premium segments for growth and development. The brand image of product is
very important especially in cloths because there are already latest brands and stylish cloth
available in market. It is required for Marks and Spencer to clear their brand image on
marketplace and available all products on stores.
Innovation-Innovation is the best approach for marks and Spencer to use innovative ideas for
developing their business all over the world. Innovation is synonymous creativity and
communication in M&S that influence the customer towards their ideas. This company also take
both positive and negative feedback to the employee which is the best part to identify their
requirement (Kim and Choi, 2017).
Private labels- M&S is selling the premium brand product such as Louis vuitton, versace etc.
this company also added their own label on their products. This label have been making familiar
with the specific brands with the name of Marks and Spencer.
Weakness in the Swot analysis of M&S-
Weakness is also important for this organization which is required to improve their services and
also identifying the key weakness.
Supply Chain Scalability- This is the weakest point of Marks and Spencer have poor scalability
of supply chain but this company also trying to offer services to access the store by online and
product can be delivered at right place. They also communicate with merchandise to improve the
services in proper manner (Schaltegger and Wagner, 2017).
Customer satisfaction-Most of customer have low satisfaction because they face lot of issues
and problem regarding the return policy and store experience that negative impact on the brand
image. At last, the outcome is to poor loyalty and customer switch to another brand.
Opportunities in the SWOT analysis of M&S-
Opportunities is the term which are surrounded in the business which help for increasing the
capitalization of economy. There are important opportunities that includes
New Segments- Fashion is an approach to increasing the customer demand that help for
increasing the sales and productivity in marketplace (Pearson, 2017). Marks and Spencer
launched new product in global market and there is huge demand all over the world which is
positive impact towards the organization and their sales. In Asia, there are many demands of
traditional and ethnic wear etc.

Threats in the SWOT analysis of M&S-
Threats factor affects the business environment. There are some important threats includes
Competition- Nowadays, there are many business in a market and competition level increases
which affect the entire process.
Illustration 3: SWOT Analysis
(Source: SWOT analysis, 2018)

P6: Strengths and Weaknesses interrelate with external macro factors for the chosen organisation
Strength and weakness are interrelated with the external factor of macro environment in
the Marks and Spencer. These factor impact on the external factor of environment. It is possible
for organization to expand their business across the world. Strength can be include all the
necessary factor of M&S to develop their competition with another organization. This
organization is also maintained their business activities. Weakness includes those factor that
affect their productivity and profitability due to increase the competition in marketplace.
Opportunities is also useful for gaining the profit to global market and also recognition of
markets terms and conditions. Threats are those factors that internally damage the business
process, there are more chances of fear about the low growth and development.
Marks and Spencer is clear and remove all the threats by using strategies and planning to
achieve their goals and objectives. Opportunities is the strength of organization and both are
interrelated to each other (Linder and Williander, 2017).
CONCLUSION
As per discuss, it concludes that Marks and Spencer is the fastest growing organization
and expand their business all over the world. This organization always maintained their market
position in effective manner. To overcome with the competition level of market which is
designed an effective structure that support to manage entire activities. This report also analysing
the entire strength, weakness, opportunities and threats by using SWOT analysis. Public, private
and voluntary organization applicable for specific size, scope and objectives. M&S focus on the
legal structure and various policies which are required for Marks and Spencer to manage the
business process and functions. It also discusses about the different type's organization such as
public, private and voluntary. This assignment will discuss about the different size and scope of
organization and their specific purpose.

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Schaltegger, S. and Wagner, M., 2017. Managing the business case for sustainability: The
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Divisional Structure of organization, 2018. [Online] Available
through:<http://rightarrow.co/divisional-organizational-chart/7-divisional-structure-store-
organizational-chart-org/>
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