Business and Business Environment

This report explores the different purposes and types of organizations, interrelation between organizational departments, positive and negative effects of macro environment, and internal and external analysis of Marks and Spencer. It also discusses the strengths and weaknesses of the organization in relation to external macro factors.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Covered in PPT.......................................................................................................................3
P2 Covered in PPT.......................................................................................................................3
TASK 2............................................................................................................................................3
P3 Interrelation between different organisational departments and their link to objectives.......3
TASK 3............................................................................................................................................4
P4 Positive and negative effects of macro environment..............................................................4
TASK 4............................................................................................................................................7
P5 Internal and external analysis of particular organizations......................................................7
P6 Strengths and weaknesses interrelate with external macro factors........................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment consists to be the most essential element of each business
Enterprises as the whole activities of business are carried out according to be organized business
plan as to implementation of all operations in well planned and effective manner. Marks and
Spencer is the chosen an organisation for this particular report the company mainly deals in
luxury food and home products and clothing. In this given task, examine about the different
purposes and sorts of associations. The extension and size of scope of various types of
association will likewise be specifying in this report (Cai and Yang, 2014). Interior and outside
the two variables influences on business condition in a positive and negative way. This report
will be useful in comprehend relationship among different elements of an association and they
are worried about the authoritative structure and in addition goals. Qualities and furthermore
shortcomings both are interrelate with the full scale factors.
TASK 1
P1 Covered in PPT
P2 Covered in PPT
TASK 2
P3 Interrelation between different organisational departments and their link to objectives
Each small as well as large business and prices are having their own aims and objective and on
which all activities of firm are based it is required for each business Enterprises to implement
effective relationship within the each and every functions of firm as to completion be targeted to
kohl’s in most valuable and effective manner (Gebauer, Paiola and Edvardsson, 2010). Marks
and Spencer is a large private limited company which operates its business operations all over
the globe and the company deals in different sectors like clothing luxury food items and Home
items so it is essential for organisation or its higher authority to maintain a good relationship
among various organisational functions as to attaining higher growth. As a large business
association Marks and Spencer has categories their business operations in different departments

as to maintain appropriate interrelationship among all the departments and which are described
as under:
Marketing Department: this consists to be a most important apartment as it is formed for
enhancing sales and revenue of firm at Marketplace. At the time of producing a new product
Marks and Spencer is mainly concerned towards analyzing the new market Trend and customers
needs and this create value in satisfying the needs and wants of people at market area.
Finance department: this is also an element of form and it has a direct connection with
monetary transaction of form it is essential for an organisation to have an effective and good
financial background as to implement all business operations in best possible manner this section
is effective in providing funds to the each department of firm as two conducting all operations in
effective manner in this department various activities are involved such as arrangement of funds
creation of assets reducing liabilities etc (Halbert and Ingulli, 2011).
Production: This consists to be the primary department of farm as the growth and success of
firm are based on its production function. It refers as a process in which planning directing
controlling are involved. As a large retail company Marks and Spencer is widely concerned on
producing high quality products and services in respect to maintaining its effective image in the
mind set of customers.
Human resource: this department is mainly focused on increasing the strength of employees
within the workplace as to improvising the operations of farm the department of human resource
as involved in various activities of firm such as managing controlling directing etcetera the major
motive of Human Resource Department is to hire well skilled and educated people at workplace
in respect to developing business operations at Wide area of market.
TASK 3
P4 Positive and negative effects of macro environment
Macro environmental factors are consisting to be an essential element of each business
firm and have a huge influence on the growth and development of firm (Hamilton and Webster,
2015). PESTLE analysis is the best way to analyze the factors of macro environment within
Marks and Spencer, the essential element of macro environment are described as below:

Factors Meaning Positive Negative
Political Under this, all policies are
developed through United
Kingdom. In addition to
this, if government will
formed new legislation as
well as policies for
manufacturing products
then it will have affect on
activities of business firm.
Company can attain a positive
and competitive image at
market place through
following the norms and
policies of government.
It is hard for an
organisation to
implement all changes at
regular basis.
Economical Under this, if an economy
will be go down and up
then it can affect on
development and also
offers of firm. In this way,
it is essential for Marks
and Spencer to decide
every one of these
progressions which occur
at business condition
From inflation will upgraded
then reserve stream will be
expanded and bring more
cash (Hilton and Platt, 2013).
On the off chance that
condition will change on
ceaseless premise, at that
point there will be trouble
looked through this firm
with respect to dealing
with every one of these
alterations.

Social This is related to the social
environment, as the needs
and wants of people are
changed as per the change
arises in the market trend.
It is essential for Marks
and Spencer to provide
satisfactory products and
services to their customers
in respect to retaining them
for long run of business
activities.
With this organizations are
able to capture a wide area of
market which creates value in
attaining growth and success.
It is not easy all the time
for firm to produce goods
as to fulfilling the desires
of buyers.
Technological Under this, propel
innovation is presented by
Marks and Spencer as to
conduct its business
operations in effective
manner. This association
utilizes diverse innovation
with a specific end goal to
influence change in its
business and additionally
activity to process.
It creates value in firm to
making appropriate changes
in their production functions.
This enhance the extra
cost of firm.
Legal It is required for each
business enterprises to
follow the rules and
legislations which are
implemented by
government or its bodies.
Marks and Spencer is
consistently following the
rules of government as to
Government legislations are
effective in protecting the
rights of employees.
legislations can contempt
their management
policies.

attaining growth without
facing any kind of issue
and conflicts.
Environmental These elements comprise
those factors which are
recognizing through
surroundings of a domain.
It is imperative on account
of upgrading shortage of
populace targets, crude
materials and so forth by
working together in a
moral way.
Red- tapism will be reduced
and firm can easily implement
its operations in effective way
(Klapper, Lewin and Delgado,
2011).
All printed material will
be decay and start
utilizing web offices.
From this work will be
diminished.
TASK 4
P5 Internal and external analysis of particular organizations
Internal as well as external factors has a direct impact on the operations of firm, in an
organisation it is essential for management to consider all the factors which has impacted the
growth of firm. PESTLE and SWOT analysis is effective in analyzing the internal and external
factor of Marks and Spencer:
SWOT analysis of Marks & Spencer
Strength Strength can be considered as a power of firm and the major strength of Marks and
Spencer is that company has good image at market place and creates value in gaining
attention of buyers towards the firm or its offered products and services.
Weakness The major weakness of firm is that the cost of labour is enhanced which has a direct
influence on the productivity and performance of the firm.
Opportunity As a large retailer company Marks and Spencer has the opportunity to create their
own website as to making organisational transactions more easy and effective,
Threats High competition within the market is the major threat of firm.
Chaining needs and preference of buyers.

PESTLE Analysis of Marks & Spencer
FACTORS
Political  Reducing the cost of sourcing due to free trade policy.
Economical  Dispute with the medium and small retailer over increment cost of
retailing as a outcome of cash influence of Brexit.
Social  Product chain recalls develops negative trends of society.sss
 Effect on the brand goodwill of an organisation.
Technological  Increase productivity of firm and conducting business operations
in appropriate manner (Prajogo, 2016).
 Company Provide variety of communication channel to firm.
Legal  The companies are having Policies having standard packaging and
also using eco- friendly goods.
Environmental  It is essential for Marks and Spencer to focus on the waste
management.
P6 Strengths and weaknesses interrelate with external macro factors
It has been sees that the business condition is having an effect on exercises and also
activities of Imprints and Spencer. This firm has a few qualities and also shortcomings which is
important to decide by administration. In Joined Kingdom, this firm has large number of
customers and has solid nearness in worldwide market. In addition to this, outside variables
rolling out improvements for firm so there is a need to spend more sum and additionally time by
fulfilling diverse sorts of obligations.
Marks and Spencer has reputed brand value and dress is a main brand of this association in
United Kingdom. This firm is entering later on business sectors, for example, China. Financial
improvement of this country is most astounding and obtaining capacity of individuals of United
Kingdom is additionally upgrading. The income of Marks and Spencer is upgrading step by step
after confronted numerous political and in addition efficient issues (Savrul, Incekara and Sener,

2014). The income of this business firm is improves on constant premise and furthermore
opening new stores in a portion of alternate nations like for a case India and China. With respect
to this, outside components ought to survey Marks and Spencer to take after viable procedures of
worldwide and in addition quick development.
CONCLUSION
From the above given report it has been concluded that Business environment comprises
of various internal and external factors which have a direct influence on the functions and
operations of an organisation such as consist partner’s consumer’s investor’s staff member’s
board of directors etc. Is the for most essential responsibility of organisation is to analyze the
environment of business as to taking effective decision about implementation of organisational
activities in appropriate manner.

REFERENCES
Books and Journals
Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive
priorities: The role of performance frontiers. International Journal of Production
Economics.151. pp.131-145.
Chavis, L.W., Klapper, L.F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics.93(1). pp.309-337.
Cuervo‐Cazurra, A., 2011. Global strategy and global business environment: the direct and
indirect influences of the home country on a firm's global strategy. Global Strategy
Journal.1(3‐4). pp.382-386.
Gebauer, H., Paiola, M. and Edvardsson, B., 2010. Service business development in small and
medium capital goods manufacturing companies. Managing Service Quality: An
International Journal. 20(2). pp.123-139.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Hilton, R.W. and Platt, D.E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Klapper, L., Lewin, A. and Delgado, J.M.Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp.
108-123). Palgrave Macmillan, London.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150.
pp.35-45.
Online
Marks & Spencer SWOT & PESTLE Analysis, 2018. [Online]. Available through:
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