Business Environment TASK 11 P1 1 P2 1 P3

Business Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.................................................................................................................................................1
P2.................................................................................................................................................1
P3. Relation between business functions and organisational objectives and structure...............1
TASK 2............................................................................................................................................3
P4 positive as well as negative impact of macro environmental factors.....................................3
P5. Internal and external analysis and their impact on decision making.....................................4
P6. strengths and weaknesses interrelate with external macro factors........................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Every organisation is surrounded by its business environment. Generally, it consists of
internal as well as external factors which have a great influence on productivity and profitability
of every company. Internal factors involve employees, customers, suppliers, investors and
shareholders. Whereas, external factors includes economic, political, economic, government and
other environmental elements. These are also known as micro and macro components of business
environment (Welford, 2013). There is a huge difference between them. Micro environmental
components can be controlled by the organisation but macro elements cannot. In this project
report, Marks & Spencer has been selected which is a multinational retailer company specialised
in clothing and food products. This organisation has its root in the United Kingdom. In this
report, various types and purposes of company have been evaluated along with their size and
scope. There is also a huge interrelation between organisational functions and its structure
objectives which has been determined in this report. Also, positive and negative impacts of
external factors has been shown on the business operations. At last, relationship between internal
strengths/weaknesses as well as external macro factors have been evaluated.
TASK 1
P1
Covered in PPT
P2
Covered in PPTP3. Relation between business functions and organisational objectives and
structure
The main function of every organisation is to accomplish its goals and objectives. It is
very much important for business enterprise to operate their activities and practices in an
effective manner so that they can easily attain their desired goals. As Marks & Spencer is one of
the leading retailer companies which manufactures the designer clothes and also provide food
items. This corporation is established to accomplish its various objectives which are:
 Profitability: This is known as the most important objective of any company. It is
because; without this, no organisation can operate its business activities (Lu and
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Ramamurthy, 20117). So, it is essential for Marks & Spencer to enhance its financial
profit so that it can run its organisational practices in an effective and systematic way.
 Productivity: To increase production, it is necessary to attract more customers because
without attracting clients, no company can enhance its productivity. Marks & Spencer
can use various promotional activities so that it can enhance the number of its customers.
 Customer satisfaction: In the modern world, needs and demands of clients are
continuously changing and so, all organisations are becoming customer-oriented. It is the
main objective of M&S to provide high quality products and services to their consumers
so that their needs can be satisfied (Moutinho, 2011).
 Employee retention: Success of every business enterprise lies upon its human resources.
Company can improve its position in the market place if it has highly qualified
workforce. So, it is necessary for small and large corporation to retain their talented staff
members as without them, it cannot accomplish the goals and objectives (Jing and Avery,
2011).
Hence, these are some most important objectives of Marks and Spencer. It is the main
task of this company to achieve mentioned goals so that it can enhance its growth.
Accomplishment of objectives can be done if functioning of enterprise is very much effective. So
it can be said that, there is strong interrelation between organisational functions and objectives
which is explained as below:
 Human resource: It plays a significant role in every business organisation. The main
function of this department is to supply highly qualified candidates for the vacant
position. So, they can make great efforts to accomplish the organisational goals and
objectives. Effective HR system can also help in retaining employees at the workplace as
it provides various rules and regulations regarding workers so that their interests can be
protected and promoted.
 Marketing department: The main function of this department is to promote and
advertise products and services of organisation so that more people can get attracted
towards company. It helps in enhancing the number of customers because clients select
that product which is more attractive in looks.
 Research and development: This department helps in identifying various needs, wants
and trends of market so that company can make their strategies, rules, regulations,
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