Business Contexts and its Management

This report covers the analysis of external and internal environment, operational management, managing change and stakeholder analysis of Mark and Spencer. It includes TQM, Kurt Lewin change theory, stakeholder mapping and PDCA process.

Business and its
Management

Table of Contents
INTRDUCTION..............................................................................................................................3
TASK...............................................................................................................................................3
Analysis of external environment...............................................................................................3
Analyse the internal environment...............................................................................................4
Operational management............................................................................................................5
Managing change........................................................................................................................6
Stakeholder Analysis...................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRDUCTION
Business is defined as the activities of organization which is utilized for engaging the
commercial, professional and industrial functions smoothly. With help of effective business
management easily develop their new product and services which is favourable for customers
according to their wants and desires. Good business is also essential for enhancing the unique
ideas and creativity of each and every employees at the time of doing their job. Effective
business also helps the firm to build good and positive relation with customers which leads to
increase the sale of their product effectively. The chosen company for understanding the whole
business activities is Mark and Spencer and is headquartered in United Kingdom (Ahmadi,
Rahimi and Rezaei, 2018). The company was established in 1884 and it is the multinational retail
based firm in UK. The company is mainly dealing in food products, cloths and home appliances.
This report will cover analysis of external and internal environment, operational management,
Managing change and Stakeholder analysis. This report will be prepared on the basis of using
secondary data which includes newspaper, magazines and others.
TASK
Analysis of external environment
The factors which are considered by Mark and Spencer for analysing the environment
externally are -
 In context to M&S, management must adapt the trade policies of UK government
effectively. Because with help of using these policies the business activities of the firm
are worked in smoothly and in legal manner. Effective business are highly essential for
facilitating reliable and best quality product and information to customers in time. In this
way positive relationship are effectively developed with customers and government for
long time.
 In respect of M&S, management must use different types of pricing strategies which is
essential for increasing the economic growth of organization. It includes discounting
offers, vouchers, beneficial schemes and others. Due to using this methods the sale of
their product are increased which is essential increasing the portfolio of firm at higher
rate.

 It is necessary for the management of M&S, that they must effectively analyse the
various culture and subculture of country or people. Then according to that
management must facilitate some specific products which are easily and highly
consumed by the customers which includes sweet and sour chicken and others.
 In context Mark and Spencer, management must use artificial intelligence technology
effectively for enhancing customer convenience (Dang, Jasovska and Rammal, 2020).
Due to the use of technology such as self check out and checkin system and online portals
users easily access the information regarding various products easily before buying the
product.
TAM (Total Addressable Market)
It is basically a method which is used by the organization for enhancing their economic
growth in long term. Due to using this method management easily analyse the current situation
of market and then according to that various opportunities are identified for increasing the
popularity of the brand image between public. It means when opportunities are effectively
utilized by Mark and Spencer then definitely the risk are reduced at higher rate in their business
activities.
Analyse the internal environment
VRIO Analysis
It is a strategic planning and technique which is followed by organization for identifying
their potentiality and ability which is essential for increasing their performance in long run
(Disemadi, 2019). With help of using this method firm easily achieved the competitive
advantage in market. In this method management basically considered four factors which
includes valuable, rare, imitable and organized are described below -
Ability and
Resources
Valuable Rare Imitable Organised
Financial
Resource
Yes Yes No Yes
Employees Yes Yes Yes Yes

Patents Yes No No Yes
Effective global
presence
Yes Yes Yes
No
Valuable – In context to Mark and Spencer, management highly consider on those resources
which is essential for run the activities of whole firm effectively. It includes company's global
presence, patents and workers and all these elements are also essential for maintaining effective
coordination between employees and employer. It leads to enhance positive result from
employees in long term.
Rare – In this phase, respective company mainly concerned with those elements which are
responsible for accomplishing the benefits and other portfolio in easy way. It involves world
wide global presence, workers, and financial resources. With help of using these elements the
reach of the firm products and services are easily increased.
Imitable – At this stage, business activities of respective company are engaging with the use of
different elements. In this M&S uses different components such as employees, patent and others.
In order to run their operational activities and management very smoothly (Farooq and Vij,
2019). These components are also helpful for enhancing the brand image of the firm in minds of
consumers in long time.
Organized – At this phase, respective firm are mainly focused on those factors which is essential
for run the business activities in systematic manner. It involves workers and patents and with
help of these factors services and quality products are delivered to consumers in time. In this way
the goodwill and reputation of M&C are sustained in minds of customers for long time.
Operational management
TQM (Total Quality Management)
It is a process which is utilized by the firm for maintaining the standard and quality in
their product and services. With help of using this method management easily manage the
employees in work place area and in this way the quality of the products are also sustained in
long term for customers. Due to receiving good quality product by consumers their positive word
of mouth are effectively spread by the customers towards company effectively. It also helps to

reducing the errors or mistakes at the time of manufacturing the product according to the desires
and wants of customers. Total Quality Management also helps to improving the customer
experience, ensuring that employees are up to speed with training and streamlining supply chain
management .
Principles of total quality management are -
 Customer focus – In aspect of customer focus Mark and Spencer used this process
within organization for deliver the quality products to users. Because with help of
facilitating reliable products to customers firm easily increased their portfolio and also
achieved positive feedback from consumers in long run. But for producing good quality
product management always used talented employees and quality raw materials at the
time of producing product.
 Employee involvement and commitment – It mean that Mark and Spencer is one of
those company who always used skilled and committed employees in their workplace
area. Because for firm fulfilling the roles and responsibilities by employees in time and
effectively is a very essential any situation (Ferraris, Monge and Mueller, 2018). Due to
use of committed employees by management products and services are delivered to
customers in time at any location.
 Maintain effective communication – It is a very essential element within organization
for all level of employees and also for run their activities smoothly. Due to using
effective communication by Mark and Spencer they easily understand the problems of the
customers effectively regarding their products and services. Then after analysing their
problems various strategies are implemented for improving their service quality which is
essential for facilitate the solutions to customers in fast manner.
 Integrated systems – In context to Mark and Spencer, management always used the
integrated systems which is essential for maintaining work efficiency of employees in
long term. With help of integrated systems management easily maintain their quality
standards in work place area or in their products according to ISO 9001. Then in this way
quality service are delivered to users effectively in location.
Managing change
Kurt Lewin change theory

M&S used this method for using this model by firm is to analyse the desire, wants and
behaviour of customers or employees effectively and this model is divided into three stages
which are described below -
 Unfreezing – It is the first stage of this theory and in this phase Mark and Spencer
initiated various strategies according to the analysis of feedback and problem of
customers or employees. Then after applying of various strategies changes comes in their
operational activities and working styles of employees.
 Changing – It is the second step of this theory and in this stage M&S employees are
facing lots of problems for adapting new changes which are initiated by top level
management. Due to initiating new policies and working style employees faced lots of
difficulties for understanding their job roles and responsibilities which leads to decrease
the productivity of firm effectively.
 Refreezing – In this phase the changes which are made by the management are finally
comes in the proper shape after adapting new changes by all categories of workers
(Fores, 2019). In context to M&S, always used effective methods and policies for handle
the employees effectively and also for deliver the quality products to customers in time.
Stakeholder Analysis
It is a technique which is used by organisation for achieving their objectives, vision and
mission in short time. Those who involved in the stakeholder analysis whether it is a individual
and group they all are responsible for completing the task in time. They all are also responsible
for increasing work efficiency and productivity of firm in long time. In context Mark and
Spencer management used this method in four stages which is described below -
 High interest and High power – It refer to those stakeholders whose powers are very
high and have the potentiality to take any type of decision regarding the business
activities. Due to taking right decisions by the higher authorities productivity and growth
of the firm are easily increased for long period. In context to Mark and Spencer, board of
directors and CEOs are comes under this category. Because these are the members who
are responsible for handling whole organizational activities and lower level employees
smoothly.
 High power and Low interest – It refer to that type of stakeholders whose powers are
high and interest is low in the activities of business. That type of stakeholders are mostly

focus on the outcome or result which is which is provided by the employees within the
organization. In context to Mark and Spencer, their investors are mostly involved in this
category. For investors profit is the essential aspect for securing their money and also for
increasing the economic growth of the firm.
 High interest and low power – It is considered with those stakeholders who have high
interest in operational functions of the business but they did not have any type of power
for control the business and for decision making. In context to mark and Spencer,
customers are involved in this category because the main role of customers is to buy the
products from store if they liked the product. But they did not have any special authority
to suggest to company that in which way management run their activities effectively.
 Low interest and Low power – It is related with those stakeholders who did not have
any type of interest and zero power in various activities of business (Hussaini, 2019). In
context to Mark and Spencer, lower level workers are comes under this category and
these types of employees only follow the orders of top level management. It means
without the order of the senior officers they are able to do any thing according to their
own interest. Due to this reason the interest and power of the lower level employees are
almost zero.
Stakeholder mapping -
It is basically a process which is used by Mark and Spencer for identifying the suitable
stakeholders for achieving their vision, mission and objectives in short period. It is basically
divided in to various stages which are described below -
 Identifying – In this stage, list of various stake holders are prepared by the firm before
doing any type of task and project.
 Analysing – In this process management identified the reliable and suitable stakeholders
for doing the project in effective manner.
 Mapping – In this step, mapping stakeholder is an analysis tool which is used to
determine that which stakeholders are essential for engaging the activities of firm.
 Prioritizing – It is the final stage in which it become clear that whom an organization is
engaging and with and why, it help the company to save both money and time.
About PDCA -

PDCA is basically a process which is used by the firm for improving their business
activities effectively and also for maintaining good communication between employee and
employer for long time. It stands for plan, do, check and act which are described below -
 Plan – It refers to prepare a proper and effective plan by M&S for run their activities
sympatrically and also for completing the task in time. With help of effective plan lower
level employees easily understand their responsibilities in effective manner which is
essential for increasing the positive result from organization.
 Do – In this phase plan are divided in to various parts and executed by the top level
management effectively in various aspects (Jayakrishnan, Mohamad, and Yusof, 2019). It
includes sharing of data, training and development of employees regarding projects and
task and others.
 Check – In this stage, management of M&S ensures that all activities of organization are
running in systematic manner or not by the lower level employees. Because the activities
of department are totally based on the success and failure of organization.
 Act – It is the last and important step in this process and here management will take strict
action for identifying and resolving problems of employees and customers.
Recommendation -
After the analysis of above the suitable strategy which is suggested to Mark and Spencer
is product development strategy. Because in this strategy management of Mark and Spencer
made large amount of investment in research and development department for developing unique
product which is totally different from competitors. In this strategy all types organization also
used PDCA process before launching new product. According to this strategy firm made lot of
research for understanding the needs, wants and desires of customers effectively.

CONCLUSION
After the analysis of above information it concluded that effective management in
business is essential for maintaining good relation with stakeholders in long run Stakeholders
includes customers, suppliers, CEOs, investors and others. Because is a essential element for
company's vision, mission and objectives in short duration. Due to this it is necessary for Mark
and Spencer that they must use specific strategies for analysing the current trend and culture of
various countries. In this report various types of different types of models or methods are used
for maintaining the brand image of company in market effectively. It includes stakeholder
analysis, VRIO analysis, Kurt Lewin change theory and others. Moreover, company need to
focus on the various market area which can assist them in enhancing consumers base Effective
business management is also essential for decreasing the risk in their business activities which is
created by competitors..

REFERENCES
Books and Journals
Ahmadi, F., Rahimi, M. and Rezaei, A., 2018. Study of relation between business model and
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Disemadi, H. S., 2019. Risk Management In The Provision Of People’s Business Credit As
Implementation Of Prudential Principles. Diponegoro Law Review, 4(2), pp.194-208.
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performance: an empirical analysis. Business Process Management Journal.
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knowledge base of the business process management system. EUREKA: Physics and
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Păunescu, C. and Argatu, R., 2020. Critical functions in ensuring effective business continuity
management. Evidence from Romanian companies. Journal of Business Economics and
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Pucheta‐Martínez, M.C. and Bel‐Oms, I., 2019. What have we learnt about board gender
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