Business and Business Environment Assignment - Mark & Spenser

BUSINESS &
BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types of business and purposes of organisations....................................................3
P2 Explain the size and scope of a range of different types of organisations.............................5
TASK 2............................................................................................................................................6
P3 Relationship between different organisational functions and how they link to
organisational objectives and structure chosen for the purpose..................................................6
TASK 3............................................................................................................................................7
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples for the chosen organisation...................................7
TASK 4............................................................................................................................................9
P5 Conduct internal and external analysis of specific organisations in order to identify
strength and weaknesses for the chosen organisation.................................................................9
P6 Explain how strength and weaknesses interrelate with external macro factors for the
chosen organisation...................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES .............................................................................................................................12

INTRODUCTION
Business environment is the combination of external and internal factors which directly
influence operations of an organisation. It include several factors such as suppliers, customers,
competition, advancement in technology, law and regulation, social, market and economic
trends. In simple term it can be said that, business environment is dynamic in nature and it can
give positive as well as negative impact on the enterprise. This report is based on, Mark &
Spenser which is retail industry company founded in 1884 by Sir Michael Marks and Thomas
Spencer. They are serving their clothing as well as accessories worldwide (Schaltegger, Lüdeke-
Freund and Hansen, 2012). Below mention report is going to explain, different type of
organisation which comes under business environment along with their legal structure. It throw
light on different departments of company with its interrelation to each other. In the end for
identifying macro and micro environmental factors SWOT as well as PESTEL analysis will
conducted.
TASK 1
P1 Different types of business and purposes of organisations
In simple words, an organisation is defined as a structure or group which is created with
the intention to carry out predetermined aims and objectives. In accordance with today's scenario
there exist several kinds of companies which have their unique goals. They operate their business
to satisfy the needs of their potential customers along with personal benefit of generating
revenue. These different companies are easily identified as some of them works to generate huge
capital and profit margins while other companies may work to provide service to those sections
of society which are unable to enjoy even basic requirements. Organisations are usually profit
based, not for profit and non-governmental. These non-governmental organisations are known as
NGO.
Profit based organisations: These business are set up with the purpose to generate
revenues and improve market shares. These organisations are operated under private sector. In
some cases these companies are regulated and maintained by the state government. In this case
the company is subjected to fiscal and legal framework which is formulated by the state

authorities. Firm like Marks and Spencer came under this and the profit and revenue they earn is
reinvested again in business to maintain their sustainability.
Not for profit: These organisations have not setup their business with the motive of
profit generation. These organisations works for the well being of the society. Both social
enterprise and charity comes under this kind of companies. For example, NHS is a firm which
operates their business operation and activities for providing help to the needy people of
societies. The profit earned by the firm is not distributed among the staff members. These
companies are exempted form tax. The funds and investment for these companies are generated
through sponsorship and donations. These firms usually works in educational, scientific and
religious sectors.
Non-governmental organisation: NGO like Oxfam conducts their operations in an
independent manner, free from the state authorities. Sometimes these organisation receives funds
from state but they carry out their work without any governmental intervention. They provide aid
and support to those people who are not capable to support themselves.
Organisations are also divided in accordance with their investment and size . These kinds
of organisations are discussed as follow:
The Small Enterprise : Companies with less than 50 employees and where business investment
is less than £ 5.6m lies under small enterprise.
The Medium Enterprise : Companies where investment is around £ 5.6m but less than £
22.8m as well as have staff of 50 to 249 employees is an indicator of medium enterprises .
The Large Enterprise : Here the investment is around £ 22.8m and have more than 250
employees comes under large enterprises .
The organisations are also differentiated on the basis of their owners and establishment
such as .
Sole trader: These kind of companies register themselves with company houses but they
never pay any kind of corporate tax. A sole trader is defined as an individual who is self-
employed and manage their business single handedly. Here, the individual is responsible for the