Impact of Macro Environment Factors on Mark & Spencer

BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Types and Purpose of Organizations...........................................................................................3
Classification of Organizations on the basis of Size and Scope..................................................5
LO2..................................................................................................................................................7
Interrelation between functions of Organizations and their influence on its structure................7
LO 3.................................................................................................................................................9
Impact of macro environment factors on Mark & Spencer.........................................................9
LO 4...............................................................................................................................................12
Strength and Weakness interrelation with external Macro factors............................................12
Internal and External Factors Impact on decision making and objective..................................14
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business Environment mainly describes the impact of internal and external factors on
various factors on various functions of business or organization such as employees, management
body, customers, rules and regulations along with demand and supply. The main focus of the
business environment is on meeting the customer’s demands and needs. It also helps to identify
the opportunities by using the available resources and plan accordingly in order to enhance the
overall performance and profitability.
Marks and Spencer, headquartered in London, England is a well-known British Multinational
Retailer which is specialized in selling clothing, food and home products with a label on each
and every product. It uses various platform such as via television, online and also promotes
online service for delivering in advertising all products. Its aim to satisfy the changing demands
of the customers helped it to become the first British Retailer which made a profit of pre-tax of
over £1 billion. The company faced a rapid growth till the year 2020 in terms of turnover which
was £7,233.7M in 1996 which became £10,181.9M in the year 2020 (Toms and Zhang, 2016). It
also focussed on preserving and protecting the environment in all its processes of operations and
manufacturing the products which also helped the customers and employees to live a healthier
life-style.
The report below will discuss different types, sizes and scope of the organizations by mentioning
the difference in their purposes. It will also evaluate how the various different functions of the
organizations interrelates with each other and the structure of the organization. The PESTLE
factors will be highlighted to examine their positive and negative impact on the operations of the
business. The report will also describe the strengths and weakness of Marks and Spencer and
their interrelationship between external macro factors. This will be done by applying the SWOT
or TOWS analysis and the ways in which it influences the decision-making.
LO1
Types and Purpose of Organizations
There are many types of organizations across the world having their own advantages,
disadvantages and purposes. They benefit their internal stakeholders like owners, managers,
employees etc. and external stakeholders like customers, government, suppliers, banks etc.
Stakeholders show much interest in the operations of the businesses because they have
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contributed the organization in the one way or other and also they want benefit from it as they
are involved in the decision-making processes. Marks and Spencer, being private sector
employer in UK is giving a tough competition to all the other sectors in every whether it is
quality of product, services, advertising etc. Based on the purpose, the organizations are majorly
classified into 3 sectors which are as follows:
Public Sector
Purpose: These are owned and run by the government. they focus on providing goods and
services which can benefit the society in any way. These use the money raised from the taxes
such as Income Tax, VAT, Fuel duty etc. in all its operations (Reissner, 2019).
Merits: These types of organizations provide security of jobs, help the employees financially
through attractive retirements. The turnover rates are very low and also gives various healthcare
benefits.
Legal Structure: Along with benefitting the communities and society, it also helps the
employees to develop partnership along with building strong relationships with them. It also
contributes in developing sustainable profits to their stakeholders like community including local
ones, government etc.
Example: ESPO is a public sector organization in UK which mainly aims in providing its goods
and services to the people. If any extra product is also made, then also it sells to the public
sectors.
Private Sector
Purpose: These are mostly earned by one or more shareholders which can be family members
too. Owners are not involved in its finances as they are not liable personally for the debts of the
firms (Bhui and et.al., 2016). Along with owning, they become the shareholders as the
companies are divided between 2 or 3 shareholders.
Merits: Profits remain between the shareholders rather than giving to public. In case of the
failure of companies, the investors are under the security of the liability rules. The companies
can also raise money by borrowing. The innovations can be brought faster by making quicker
decisions.
Legal Structure: Private Sector companies have diversified their retail hold in much larger
geographical areas which helped them to maximize the sales. This also contributed positively in
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