Analyzing Business Environments

This assignment requires a comprehensive analysis of the provided research papers and one company's SWOT analysis. You'll examine how different business environments impact productivity, collaboration, innovation, and reputation in various contexts, including global business, microfinance, life insurance, entrepreneurship, social media, informal microenterprises, cloud services, startups, and SMEs. Additionally, you'll evaluate Marks & Spencer's internal and external environment using SWOT analysis.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions and its link with organisational
objectives................................................................................................................................1
TASK 3............................................................................................................................................3
P4 Positive and negative impact of Macro environment on Business operations..................3
TASK 4............................................................................................................................................6
P5 Internal and External analysis of Marks and Spencer.......................................................6
P6 Interrelation of Strength and weakness with external Macro factors................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment define as such place where differ number of firms are operating
their work. It is really important for managers to understand about situation of various kind of
area so that appropriate and suitable strategies could be crafted by underlying them (Botha,
Kourie and Snyman, 2014). in this scenario, managers have to understand about the diversified
business environment so that better and effective working aspect could be maintain and manage.
every organization have their own aspect of work and purpose as well as they also get vary in
size with legal formalities implied on them. This project is based on Marks and Spencer which is
a retail clothing company. Hence, they will going to identify the macro environment factors
which made adverse impact on working. Along with the strength and weakness. Moreover, it
will also combine about the strength and weakness with macro factors.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between different organisational functions and its link with organisational
objectives
Each company is distinctive from others; therefore, their aim is also
distinguish. Thus, it is required for manager to formulate an effective framework so
they will be able to attain coveted targets and goals within limited period of time
(Belás and et. al., 2015). In context of Mark and Spencer, it is public limited
organisation and almost 84500 people are working with them. They are operating
their business at global level which is dealing in various sectors, such as food items,
clothing, luxurious products and many more. Hence, they need sufficient finance so
they will be able to accomplish operational activities in a proficient manner.
This has been examined that M & S is following flat organisational
framework. In company, there are fewer management level; therefore, staff
members will interact with each other in an effective and efficient way. Manager of
firm take support of their employees into procedure of decision making. Certain
strategies as well as policies will be formulated by superior to enhance participation
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level of workers. There are numerous individuals who are working with
Association; thus, it is essential for management to take quick judgement (Epifanova
and et. al., 2015).
There are many functions which are present in affiliation, which comprises
research and development, accounting, human resource management, purchase,
finance, sales and many others. They all are doing their functions in an appropriate
way; as a result, they will easily maintain position in market effectually. Along
with, if they collaborate overall functional activities then targets and goals will
attained properly.
Henceforth, it has been understood that interrelationship of organisation
structure with functions are stated as beneath:
Marketing Department: It is considered as foremost function which has to be
execute by M & S. it is required for company to advertise items and services; thus,
they will be able to gain attention of numerous people towards them (Bah and Fang,
2015). With assistance of this, they will take benefits from rivals at competitive
place easily. Organisation is having an appropriate team of marketing which enables
them to survive at marketplace for maximum period of time. This will aid them in
enhancement of profits as well as market share.
Human resource department: It is prominent for manager to recruit right
candidate for the job who is having appropriate skills and capabilities. Thus, they
will accomplish their work through proper coordination as well as cooperation. It
will assist to complete task within minimum period of time (Cull and et. al., 2015).
Production and operations: This is considered as a most significant function
of an association. It will connected with each type department. If they are having
proper knowledge regarding requirements and demands of people then, they will
manufacture products accordingly. As a result, they will easily accomplish desires
of individual so that they will keep up brand image in market for longer period of
time.
Accounting and Finance: It is essential for them to record each transaction
which is associated with money on regular basis. They have to allot fund to each
division so they will be able to complete their operational activities in a proper
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manner. They will formulate budget as well because it enables to reduce unwanted
cost and wastage. If reputation of association is effective then they will take loan
from distinctive institutes also (Moroni, Arruda and Araujo, 2015).
Research and development: This unit has to examine needs and wants of
persons so that they will provide them products and services accordingly. In context
of Marks and Spencer, they are providing variety of items to individual. Therefore,
it is must for them to analyse trend of market so they will manufacture goods in
accordance to that. As a result, they will enhance their revenues and in addition
market share, which enable them to take benefits from contenders in market.
TASK 3
P4 Positive and negative impact of Macro environment on Business operations
Both, micro and macro environment will provide impact to entire working operations of
an affiliation either in a direct or indirect manner. It has been analysed that, firm will not be able
to control extrinsic elements. This will cater negative and positive influence on affiliation; thus,
it is required for manager of enterprise to evaluate them in an effective way. For above stated
aim, some policies or strategies will be developed by superior so that they will be able to manage
overall things proficiently (Virglerová, Dobes and Vojtovic, 2016).
In context of Marks and Spencer, they are having many policies which will assist them to
execute entire process effectively and efficiently. Therefore, they will compete with competitors
significantly. Operational activities of firm will get affected through external business
surroundings which is not good for their image. Henceforth, superior will utilize PESTLE
investigation as it helps them to know negative or positive impact of these components in nation.
M & S's PESTLE analysis is mentioned below:
Political factor: As indicated by this, government formulated some policies or rules
which need to be implement into association; thus, they will obtain advantage from this. If there
is any modifications or regulatory body develops new plan then, this will provide impact to their
manufacturing process (Eling and Schaper, 2017).
Positive effect Negative effect
There are various positive benefits of political
factor in M & S, such as cost of products and
If any new policy is developed by government
like taxation then, firm will acquire resource on
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services will get diminished through policy of
free trade. Along with, implementation of
Brexit providing optimistic influence to firm.
high value. This will increase price of items
and services and it will provide affect to their
sales.
Henceforth, it is essential for affiliation to keep up an effective relationship
with regulatory body so they will easily implement alterations in business.
Economical factor: This component is connected with various aspects, for
example; wage rate, inflation, growth and so on which is related with a specific
organisation. It will vary in each nation; therefore, it is required for company to be
assure that they implemented it on their every outlet in an appropriate manner as
they are operating their business in many countries (Cai and Yang, 2014). Henceforth,
it has been understood that, if there is any alteration in this component then, it will
provide impact on success and growth of an enterprise. It is necessary for company
to evaluate entire changes which is occurring in economy and its influence on
activities of business.
Positive effects Negative effects
Inflation in country will increase purchasing
power of people. So that, they will buy
products and services of enterprise which is
advantageous for them.
Negative influence of this factors is that,
clashes will be happen will small
organisations. Due to Brexit ,currency effect it
will affect price of products and services in
huge manner.
Social factor: Each organisation obtain resources from surroundings; thus, it
is essential for them to give it back. Company needs to accomplish CSR activities in
an appropriate way as this will assist them in their success and growth (Menychtas
and et. al., 2014). Along with this, they will maintain their position in market for
maximum period of time. Additionally, it aids them to take benefits from rivals at
competitive place.
Positive effect Negative effect
Positive components are much connected with If enterprise is producing items and services
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factor of M & S because this will assist them to
maintain an appropriate relation with clients;
as a result, they will be able to improve
customer base effectually.
without knowing requirements and desires of
people then, this will give an adverse impact
on image of an enterprise.
Technological factor: In modern era, it is required for an association to
utilize new or latest methods into business as this enables them to take profit from
rivals at marketplace. Along with this, they will easily complete entire activities in
an effective and efficient manner (Georgescu and Popescul, 2015).
Positive effect Negative effect
By applying latest methodologies and
techniques into business overall business
activities will accomplished within limited
period of time. As a result, they will attain
coveted aims and objectives effectually.
To utilize new tools into business, there is
requirements of maximum amount of fund.
Legal factor: Numerous types of laws as well as acts are developed by
regulatory bodies which need to be followed by each organisation properly.
Positive effects Negative effects
To conduct business in an ethical way, it is
required for company to implement requisite
laws and legislation appropriately.
If company is using rules and regulations
which are formulated by government all the
time, then they will not be able to follow those
policies which are created by them.
Environmental factor: It is needed for an enterprise to develop some
strategies so that they will not provide harm to surroundings. It is required for them
to protect it from any type of harmful activity (Khan and Quaddus, 2015).
Positive effects Negative effects
This will cater positive influence, like red- Organisation has to reduce paper work and
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tapism get diminished so that company will
accomplish entire business activities in an
effective way.
start the use of internet so that they will
complete task adequately; otherwise, this will
render an adverse impact on firm.
TASK 4
P5 Internal and External analysis of Marks and Spencer
Every type of association needs to acquire an effective decision which is beneficial for
them. They have to determine their weaknesses as well as strengths because this helps them to
know what is best or not for them. For above stated aim, they will use SWOT investigation as
with assistance of this, they will be able to know about strengths, weaknesses, opportunities and
in addition threats. This will be understand through following description:
Strengths: Marks and Spencer is providing products and services to clients as per their
requirements and demands which help them increase customer base. Along with, they alter
products and services as per needs of individuals. It will assist to gain attention of numerous
individuals towards them. This will help them in getting success and growth. Firm is providing
variety of items as well services to consumers (Caiazza, Shimizu and Yoshikawa, 2017). They
are having almost 550 outlets across United Kingdom. Additionally, they are having nearly 2%
market share of UK which help them to take benefits from rivals at marketplace.
Weaknesses: There are many drawbacks for Marks and Spencer and amongst all of them,
major one is, they are not providing items to people as per trend. They are selling clothes to each
sector of individuals but, in their stores more of merchandise is for old people. Henceforth, they
are not be able to capture attention of numerous persons. This will provide an adverse impact on
their production and in addition sales. Other than this, they are not using latest and new methods
while manufacturing products for people so that they are not fulfilling requirements of individual
as per their demands. Hence, they have to invest maximum fund to recruit more staff members.
Opportunities: Marks and Spencer is a retail association which is established in United
Kingdom. They are having more than 550 outlets across the globe; hence, it has been understood
that international presence of firm is much effective. Enterprise is having an suitable client base
which help them in enhancement of revenues and goodwill in market. Thus, they will improve
product range into more sectors so that they can gain attention of more individuals towards them.
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Threats: There is lots of competition at market as many associations are operating their
business in same sector. It has been analysed that, needs and wants of people are changing
quickly; therefore, if firm wants to maintain sustainability in marketplace then they will have to
follow market trend. Along with, it is must for them to implement latest techniques into
workplace; otherwise, they will not compete with rivals effectively and consumers will switch to
another brand (SWOT Analysis of Marks & Spencer, 2017).
P6 Interrelation of Strength and weakness with external Macro factors
There are various strengths as well as weaknesses of Marks and Spencer. This has been
analysed that extrinsic elements will render both kind of influence, i.e. positive or negative on
the success and development of an enterprise. They are registered firm and in addition generating
high income in United Kingdom. Brexit is considered as a political incident which will restrain
affiliation to achieve targets and business expansion. Global presence of association is much
effective, but after post Brexit many types of issues will be face by them regarding enlargement
of firm in other area. Therefore, this component will be more challenging for them as they need
to spend maximum time as well as money so they will accomplish entire responsibilities and
roles (Huang-Horowitz, 2015).
It has been analysed that affiliation is not able to achieve success in the sector of food.
Sales of firm is reducing quickly so that they will bot obtain competitive benefits. According to
many laws and legislations, it is fundamental for them to pack products effectively which will
cater addition financial load of Marks and Spencer. Other than this, firm is much famous for their
adequate strategies of Corporate Social Responsibilities. This is considered as a foremost
strength of enterprise which enable them to improve reputation and brand image at marketplace.
They are concentrating on the session of waste management which is started by them. Affiliation
is much concerned about each components which will render affect on their business activities. It
has been understood by them, as they are regulating their business in many nations which will
produce high waste amount. This session is called as Plan 'A' which is began by firm so that they
will accomplish CSR exercises in an appropriate and adequate manner. Quality of items and
services of firm is much accurate which helps them into enhancement of revenues. They are
spending sufficient amount for society welfare (Huang-Horowitz, 2015).
Marks and Spencer is having an efficient brand image at marketplace. They are termed as
a one of leading association in the sector of cloths. They are expanding their business in many
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emerging marketplace, such as India. It has been analysed that buying power of individuals and
in addition growth rate of economy of this nation is enhancing rapidly. Henceforth, this extrinsic
component will aid organisation to cover investment within minimum time duration. Firm is
selling merchandise of best quality and attracting each class of people like, upper and middle.
They are opening more stores in many nations which help them in enhancement of profits and
market share. Therefore, this element will assist them into expansion at international level.
Provision of organisation is not much effective and for its improvisation, it is required for
them to utilize latest methods so they will maintain business operations. They will be more
popular if they start utilizing current software for managing entire things and this will aid them to
overcome from shortcomings. It assists to diminish business cost as well as wastage; thus,
resources will be utilized by firm in an effective manner. Through this, they will be able to
maintain an appropriate balance amongst sales and requirements. Affiliation will use
methodologies by examining distinctive trends of market. To maintain sustainability in market,
enterprise needs to fulfil demands of people as per their desires.
CONCLUSION
It get concluded from the project that business environment includes about various kinds
of firms which have distinct feature of working as per their nature and size. Although, their scope
also get vary from each other where some aims to generate profit whether some work in respect
of society. Along with this, stakeholders mapping facilitate to identify needs and demands of
each and every stakeholders and a common link of organizational functions with each other.
Macro environment analysis at global level enables in operating activities properly so that
objectives could be accomplish. Micro environment simplify the strength and weakness of a
company as well. the interrelationship of micro and macro factors support in deriving the best
and suitable strategies for a company which enables in generating more and more profit for
future consideration. All such factors need to include by managers of a company when operating
at global business environment.
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REFERENCES
Books and Journals
Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Belás, J. and et. al., 2015. The business environment of small and medium-sized enterprises in
selected regions of the Czech Republic and Slovakia. E+ M Ekonomie a Management.
(1). p.95.'
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology.
Elsevier.
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.
Caiazza, R., Shimizu, K. and Yoshikawa, T., 2017. Cross‐Border M&A: Challenges and
Opportunities in Global Business Environment. Thunderbird International Business
Review. 59(2). pp.147-151.
Cull, R. and et. al., 2015. A new index of the business environment for microfinance. World
Development. 70. pp.357-388.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research. 258(3). pp.1082-1094.
Epifanova, T. and et. al., 2015. Modernization of institutional environment of entrepreneurship in
Russia for development of innovation initiative in small business structures. European
Research Studies, 18(3). p.137.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance. 20.
pp.277-282.
Huang-Horowitz, N. C., 2015. Public relations in the small business environment: Creating
identity and building reputation. Public Relations Review. 41(3). pp.345-353.
Khan, E. A. and Quaddus, M., 2015. Examining the influence of business environment on socio-
economic performance of informal microenterprises: content analysis and partial least
square approach. International Journal of Sociology and Social Policy. 35(3/4). pp.273-
288.
Menychtas, A. and et. al., 2014. 4CaaSt marketplace: An advanced business environment for
trading cloud services. Future Generation Computer Systems. 41. pp.104-120.
Moroni, I., Arruda, A. and Araujo, K., 2015. The design and technological innovation: how to
understand the growth of startups companies in competitive business
environment. Procedia Manufacturing. 3. pp.2199-2204.
Virglerová, Z., Dobes, K. and Vojtovic, S., 2016. The perception of the state's influence on its
business environment in the SMEs from Czech Republic. Administratie si Management
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Online
SWOT Analysis of Marks & Spencer . 2017. [Online]. Available through:
<https://businessteacher.org.uk/swot/marks-and-spencer.php >.
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