SWOT Analysis and Business Environment

This assignment discusses the concept of SWOT analysis and its relevance to understanding business environments. It delves into the factors that impact businesses, including micro and macro environments, and how these affect company performance. The report also touches on external and internal analyses, highlighting the importance of identifying weaknesses and strengths in relation to external factors.

BUSINESS
ENVIRONMENT

Table of Contents
1.0 INTRODUCTION.....................................................................................................................1
TASK 1............................................................................................................................................1
2.0 & 3.0 Covered in PPT......................................................................................................1
TASK 2............................................................................................................................................1
4.0 Relationship among various functions of organisation....................................................1
D1 Analysis of complexities of various kinds business structure..........................................2
M2 Disadvantages and advantages of interrelationship among different departments..........2
TASK 3............................................................................................................................................3
5.0 & M3 Positive and negative impacts the macro environment on business......................3
TASK 4............................................................................................................................................5
6.0 External and Internal analysis to identify weaknesses and strengths .............................5
7.0 & M4 Weaknesses and strengths interrelate with macro factors.....................................6
D2 Impacts of micro and macro factors on business..............................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
.........................................................................................................................................................9

1.0 INTRODUCTION
Business environment refers to an environment which consists of external and internal
factors that can put their impact on the operations and business activities. External environment
includes political, social, technological and economic. On the other hand, internal factors consist
of customers, employees, competitors, etc. In the present study, Marks & Spencer has been
chosen to have in-depth understanding of concepts associated with business environment.
Various types of organisations, their sizes and scope are discussed in this report. Also, the
relationship among various functions of organisation and the way they all are linked with each
other is highlighted. Further, negative and positive impacts of macro environment on business
are studied here. Apart from that, interrelation of strengths and weaknesses with macro factors is
shown in the report.
TASK 1
2.0 & 3.0 Covered in PPT
TASK 2
4.0 Relationship among various functions of organisation
Marks & Spencer is a retail business enterprise and in this, various types of functions are
working together for achieving the common objectives of company. In this organisation, there
are Human Resource, finance, marketing and operations departments are working. They all are
related with each other and work with supporting to each other (Aterido, Hallward-Driemeier
and Pagés, 2011) It is the responsibility of manager of this company is to make coordination in
all functions. Some functions of this company given below:
Human resource- Its main work is to recruiting, training, payroll, motivation,
performance appraisal of staff members. The HR manager implement all plans and policies
which are introduced by top management. So, it is necessary to company to ire employees on the
basis of its structure. Like if size of firm is large then there will be need of recruiting more
employees who can achieve its target properly. Like for doing the business related operations
and also activities in company, there will be the need of manpower. So, in context to this, human
resource department recruit the most capable person and provide them training so that they can
work well.
1

Finance- Its main duty is to arrange an manage funds for business operations. So, that
other departments can do its work or business operations in a proper way. Like if the size and
structure of company is large, then there will be need of much finance and in case small, then
there will not be need of much money for busies activities. This department work with the other
department. For doing any marketing and production related activities, there will be the
requirement of money. From this the marketing department can do its promotional activities in
an effective and proper manner.
Marketing- This function prepare a design of products and also a promotional strategy to
introducing products in market (Commander and Svejnar, 2011). If this function makes an
attractive marketing strategy, then it will be good for development of business. This marketing
department works with the many other functions such as production, selling etc. The manager of
this department guide all related function in context to increasing the productivity of company. If
the manufacturing department produce the goods according to the customers needs, then it will
be beneficial for company and the sales will be increased.
Operations functions- Its purpose is to producing all products by formulating a good
plan. It is essential for operations manger is to do all the business operations in a proper manner.
This function is related to the human resource. If the employees will work properly, then in this
case they can do its business related operations in an effective and proper manner. If increasing
their working efficiency, HR department gives the training to employees in an organisation.
D1 Analysis of complexities of various kinds business structure
The structure of different types of sector is varied. The complexities are in the each
business. Like some time in voluntary sector, there will be need of more funding. Because this
sector is to take money from diseased people for their treatment (Gebauer, Paiola and
Edvardsson, 2010). To achieving the objectives of company on proper time, it is necessary that
all departments are work together and also interrelated with each other.
M2 Disadvantages and advantages of interrelationship among different departments
If each and every function of company will work together then it will be beneficial for
company otherwise not. Like large business firm needs many employees for doing business
activities and also needs more finance. So in context to this, Finance and HR department work
for this. Finance departments has to manage money for recruiting employees and also training
and human resource has to hiring capable staff members. It is the advantage of interrelationship
2

between department and in case if these all functions are not coordinate with each other then it is
disadvantage for company.
TASK 3
5.0 & M3 Positive and negative impacts the macro environment on business
The Marks & Spencer has a good performance level. It is necessary for a company to
determine or evaluate an efficiency and effectiveness of a business. For doing the business
properly, it is the responsibility of manager of Marks & Spencer is to identify all he macro
factors and then try to control them (Hamilton and Webster, 2015). In the external elements
includes political, economical, social, technological, legal and also environmental. There are
some positive as well and negative impacts of external macro factors are given below:
Political factors- Government makes some rules and also policies under which company
has to work.
Negative impact
If in case the business firms do not follow government regulations, then it will be
disadvantage for them.
Positive impact
Marks & Spencer works according to government policies and also do the ethical
business. It is helpful in the stability of company at market place. It will be good for business of
company. It follows all acts and regulations which are formulated for the smooth running of
business.
Economic factor- It consists an unemployment, bank rates, inflation, rate of interest etc.
If the condition of an economy of United Kingdom will be good then from this the purchasing
power of people will be increased.
Positive impact
Marks & Spencer focus is on providing the high and better quality of products (Fernando,
2011). It impacts positive on business activities.
Negative Impact
The negative affect of this factor is that from closing some stores, there was 2% cut of
jobs of 70,000 people.
Social factors- In last some years, ether is a big change in society. The demand of every
person is different.
3

Negative impact
In past years, this company manufacture the products at higher cost and there is no
particular category products for people. From this, people was not attracted towards company. It
affected its productivity.
Positive impact
At this present time, this firm produces its products like clothing to every category people and at
the different or reasonable cost. So every one can avail it. The impact of this is good on business.
Technological factors- Technology helps in doing the business effectively.
Positive impact
Manager of this firm, adopts the advanced technology to increase the quality of its
products such as clothing, home products etc. It also provides the online facilities to people, so
that they can purchase good from home.
Negative impacts
In case if company will not improve quality of goods, then its affect will be bad on
business productivity.
Legal-
Positive impact
This company is always update and also retraining itself every year (Klapper and Love,
2010). It should be up to date with the new legislations with problems related to Health and
Safety of employees. For purpose of retraining Marks & Spencer makes changes in business to
changes in tax.
Negative impact
In case if company will not paid the tax on proper time and also does not up to date about
the new legislations. Then in this case their will be the and impact on business.
Environmental factors- In this includes the whether, climate etc.
Positive impact
For doing the business activities, it is necessary that the climate should be good.
Negative impact
If from the bad whether condition the goods are not deliver on proper time, then it will
impact bad on business operations.
4

TASK 4
6.0 External and Internal analysis to identify weaknesses and strengths
To know about the strengths and also weaknesses, manager of Marks & Spencer needs of
analyse the external and internal environment of company. There is a SWOT analysis of Marks
& Spencer:
Strengths
 Its main strength is to provide high quality of goods to make the business
successful.
 It is a powerful brand in retail sector and it has more than 1000 stores around 40
countries.
 The loyalty of customers towards this company is high (Oh, 2010).
 It has many distribution channel to reach to target customers or markets.
 This company has wide range of goods and services and also many stores or
outlets.
Weaknesses
 As a non trendy outlets, its publicity is bad. Its stores are not trendy or can say not
fashionable.
5
Illustration 1: SWOT Analysis
Source: (What SWOT Analysis is in simple words,
2017)

 In the retail sector, there is straightest competition.
 The main weakness of this company is that it has a limited market share.
 It does not focus on segmentation of ranges of clothing.
Opportunities
 It has an opportunity to make improvement the offerings in range of clothing.
 It should more focus on segmentation of customers.
 It should also focus on ethical foods items.
Threats
 There is a dispute among executives and also shareholders.
 Its big threat is restrictions of government in the retail sector.
7.0 & M4 Weaknesses and strengths interrelate with macro factors
It is necessary for Marks & Spencer is to identify those factors which can affects on its
operation of business. An Internal analysis incudes the strength, weaknesses, opportunities and
threats of company and on the other hand in External analysis includes political, economical,
social, technological, environmental and legal factors. All environmental factors are related.
Company can control the micro factors but it can not managed and also control macro factors. It
is relation among SWOT and PESTLE (Mahmood and Hanafi, 2013). It is necessary for business
to include micro and macro components, so that they can not impact on business operations.
From the change in political factor, Marks & Spencer can work on improving or sustaining its
business at market place. If there is any rate of interest changes then it gives the capability to
company because from this its expenses will be minimise. It is duty of an organisation is to give
an assistance to community by doing CSR activities.
From adopting latest technology for business operation, it can be positive impact on
business. From advanced technology, many new and good opportunities will be developed for
smooth running of business. It is necessary that the relationship among micro and macro factors
should be effective.
An interrelationship among the weaknesses and also strengths of this enterprise with the
factors of macro environment mentions below:
Political factors- Under this the government rules, regulations are included. It is
important for Marks & Spencer is to hire the specialised staff which can follow all the rules and
also ready for face all the legal challenges in an organisation.
6

Economic factor- In this involves some components like deflation, inflation, bank rate,
interest etc. If in case the company is financially strong then this factor can not be impact on the
pricing related strategy.
Social factor- In Marks & Spencer, there are people from the different culture. So in
order to this, it is necessary for firm is to fulfil the needs of employees and also take care their
health.
Technological factor- Technology helps in making the business successful. There is a
requirement to Marks & Spencer firm is to upgrade its technology and also reduce the obsolete.
In this, there is a largest investment done on technology by this firm.
Environmental factors- In this present time, it is necessary that the climate and also
whether conditions should be good for delivering the goods to consumers.
D2 Impacts of micro and macro factors on business
The affect on micro and macro both factors van be negative and also can be positive.
Impacts of both factors are given below:
 Both components are helpful in evaluating the objectives and aims of company on
the basis of market condition.
 It impacts on opinions and ideas of leaders to innovate the new products.
CONCLUSION
It has been concluded from the above report that business environment include two factor
micro and macro both impacts positive and negative on business. In this report studied about the
PESTLE of macro environment on business. Under this assignment also studied about external
and internal analysis to determine weaknesses and strengths. In this given report studied
regarding the weaknesses and also strengths of given company which are interrelated with the
external factors.
REFERENCES
Books & Journals
7

Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms.Economic
Development and Cultural Change. 59(3). pp.609-647.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance.The Review of Economics and Statistics. 93(1). pp.309-337.
Fernando, A.C., 2011.Business environment. Pearson Education India.
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.
Hamilton, L. and Webster, P., 2015.The international business environment. Oxford University
Press, USA.
Klapper, L.F. and Love, I., 2010. The impact of business environment reforms on new firm
registration.
Mahmood, R. and Hanafi, N., 2013. Entrepreneurial orientation and business performance of
women-owned small and medium enterprises in malaysia: competitive advantage as a
mediator.International Journal of Business and Social Science. 4(1).
Oh, S., 2010. New role-based access control in ubiquitous e-business environment. Journal of
Intelligent Manufacturing. 21(5). pp.607-612.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
Wild, J., Wild, K.L. and Han, J.C., 2014.International business. Pearson Education Limited.
Wiorek, A and et.al., 2012. Learning leadership skills in a simulated business
environment.Computers & Education. 58(1). pp.121-135.
Yoon, J., 2012. Detecting weak signals for long-term business opportunities using text mining of
Web news.Expert Systems with Applications. 39(16). pp.12543-12550.
Online
What SWOT Analysis is in simple words, 2017. [Online]. Available through:
<http://pestleanalysis.com/swot-analysis-examples/>. [Accessed on 24th October,
2017].
8

9