Business Environment and SMEs

This assignment examines the influence of the business environment on Small and Medium-Sized Enterprises (SMEs). It delves into various aspects of the business environment, including political, economic, social, technological, legal, and ethical factors. The analysis explores how these factors can present both opportunities and challenges for SMEs. Additionally, it investigates strategies that SMEs can employ to navigate the complexities of the business environment and achieve sustainable success.

Business & Business Environment

INTRODUCTION
The report will cover Marks and Spencer which is one of the leading British
multinational retailers operating worldwide with stores and online service, as well will show the
negative and positive impact have on business operations of Marks and Spencer from macro
environment and the relationship which all the functional areas have amongst them. Also,
conduct the internal and external analysis like PESTLE and SWOT to identify how strengths and
weakness help Marks and Spencer to achieve business objectives. The macro factors regard to all
the external factors affecting business like political, social, economical, legal, environmental and
technological factors.
P1.
The main purpose of the any organisation is to make the social and economic development in
nations. To bring the better development of the nation different organisation has the various
roles.
Private organisations: This type of the organisation have owned by the small business groups as
they have limited liability. The private sector is fragment of nation economic and it will give the
better impact on the society (Aguilar, 2017).. The private organisation has the gaols to bring the
more profit in their business which will make the market credibility. A huge private-division
partnership might be secretly or traded on an open market. Organizations in the private division
drive down costs for merchandise and enterprises while seeking shopper’s cash; for the similar
product customer will chose always the lower price. As the M&S is the private sector
organisation in United Kingdom which have the main purpose is to bring out the economic
development. Legal structure of the private organisation: as the private organisation need the
certificate of incorporation and documents required is Article of association and Memorandum of
association.
Public organisation: These types of organizations are the worried part of the economy to give
different legislative administrations. The organization of the division of the general society
differs according to the nation, yet in the case of the citizens of many nations in the public sector
it incorporates such administrations as the military, the police, etc. People in the shared area can
benefit from the fact that it cannot be excluded from a non-payer, for example road lighting,
administrations benefiting the entire society instead of the person using the governmental bodies.

Therefore, the public organisation main purpose is to social development of nation. As the legal
structure of these organisations is depends on government supreme bodies.
Voluntary organisation: These types of organisation have is a social affair of individuals who
go into an assertion, as a rule as volunteers, to outline a body or relationship to accomplish a
reason. Voluntary organisation is also called non-profits organisations. Essential delineations
fuse trade affiliations, trade unions, learned social requests, capable affiliations, and regular get-
togethers (Davis and Blomstrom, 2016). The main purpose of this type of organisation is to bring
out the social development and help society in whenever they need in difficult situations. The
legal structure of this type organisation is monitored by the government.
P2 Size and scope of Marks and Spencer, NHS and Oxfam.
All the organizations have their own purpose, size and scope and they all contribute in the
economical development of the country in their own ways. And all these goals, the size and
scope of the various organizations relate to the business objectives and the products and services
offered by the organization.
Bases Marks and Spencer National Health
Services
Oxfam
Scope M&S is having very
wide scope as it is
operating on a wider
area having its lifestyle
stores, online stores and
selling many products
and services on a
worldwide level.
It is the public
organisation which
have the large scope to
make the healthy
society (Yew and
Aspinwall, 2014.). As
the NHS bring the
various treatment free
for the people.
Oxfam being a
voluntary organization
and a charitable trust. Is
operating worldwide as
it help the needy people
all over the world.

Size M&S having around
979 stores in UK which
include 615 selling
food products. With
having 84939
employees and 454
international level.
As it is the largest
pubic organisation of
United kingdom.
Which have more than
1400000 employees.
As this is also operating
n a worldwide level
which serves about all
the nations and fight for
poverty of the
economies of the world.
Structures There are number or
employees and
managers working in
the whole organization.
With the senior
management working
on the top formulating
the policies and rules
for the working of
company (Kennerley
and Neely, 2013).
The majority of
employees include the
voluntaries working for
nonpayment or very less
payment. Whole
organization divided in
four parts namely north,
south, east and west.
Purpose The purpose is to earn
maximum profits and
serve the world.
The main purpose of
the NHS is to care the
citizens and provide the
best treatment of their
disease (Poon , 2017).
To eradicate poverty
and to give aid and help
to the needy people in
the world.
Figure 1 Structure of Marks and Spencer. (accessed 13/11/2017

P.3
Finance: the most important division in the organisation is the finance in M&S. They will
maintain the booking of the organisation and proper accounts as well the profits and loss will be
generalised by this division. As the financial performer of the organisation they will help to make
the strategies for the finance discoing in organisations.
Human Resource: M & S's human resources in organization and operations were the two
territories of the HR. The vital part of arrangement has probably become the most important
factor because organizations perceive the need to consider human resource needs in objectives
and techniques. The Human Resources Manager will regularly participate in the official
organizational groups due to the staffing capacity. The numbers of workers and the
advancement of remuneration and wage scales are among the components of the arrangement
role. Various variables influencing human resource organization Organizational structure,
growth, business location, demographic change, natural vulnerabilities, expansion, and so on.
Furthermore, this area includes skills management (Buchholz, 2016). Because human resources
have the most important role to achieve organizational goals
Marketing: As the marketing is the most important role in Organisation by perfuming different
activities to bring out the business objectives for M&S. As the M&S marketing division is
frequently seen as of most important inside the utilitarian level of an organisation.
Information from an M&S marketing division would be used to deal with the exercises of other
office's inside the firm. For example, a publicizing division could decide, through advancing
exploration that buyers needed another sort of thing, or another usage for a present thing.
Considering this, the advancing division would teach the R&D team to influence a model of
profit in terms of customer new needs.
Operation and production: The most important division is the operation and production
division as they will focus on the production process according to the demands they will produce
the products. As the operation division will focus on the better tools and techniques for in M&S.
The above division coordination will bring the success in organisation. As these
departments have the important role in the organisation? The human resource will help M&S to
bring better manpower in organisation at the right place at the right time. Human resource have
more responsibility in organisation to make better development of employees by arranging
proper training which will enhance their productivity for better production (Aguilar, 2017). But
the most important division is the finance as they perform the various roles for the organisation

such as to allocate the funds to all the division according the requirement for their purpose. As
the marketing division have the various functions in organisation to bring more vibrant strategies
of marketing to attract the customer by various promotion strategies used by this division.
P4.
Macro environment consist of those outside factors which are non-changable and
furthermore it has impact over the different factors of the organisation such as strategies,
execution and techniques of the organisation. These outer variables integrate financial,
legitimate, social elements, technical changes and common powers. Alteration in purchasers,
taste and preferences of the customers, alteration in government factors are the case of large
scale ecological variables. "Marks and Spencer" additionally it has impacted on the outside
condition powers. Other factors are as follows:
Political and legitimate variables: this includes changing management strategies and tactics and
changes in different government policies and practices. Political and legitimate impacts have
components on organizational advertising options. For example, the government reduces tax
collection by retailer organizations (Davis and Blomstrom, 2016), then it has an impact on
organizational selection.
Monetary and economic Factors: it is the factor that have great impact over the
organisation probability and productivity. Production of goods and services is totally dependent
on the income of people and income is dependent on the condition of the country. Such as the
country is at recession stage, the level of income will reduce and people reduce purchase of
products. This will direct impact over the venture production.
Environmental Factors: Different factors need to be consider by the venture such as green
house impact, reduction of pollution etc. thus venture need to invest in the different corporate
social responsibility. Social and cultural powers: social and social variables integrate the target
customers of the organization, changing the taste and preferences, customer requirements and the
quality of products and services and so on. These factors change the likelihood and risk
contribution. Technological Factors: These variables include new advances, skills and
information needed to generate products or administrations. This innovation and the materials
needed for the creation are also affected by the Association's business choices Marks and
Spencer are confronted with these large scale environmental variables. The huge and significant
changes in large-scale status factors are generally out of business control, so it is essential that
the organization's administration is able to investigate the impact of these components so that

they can use sound judgment (Buchholz, 2016). These impacts are examined through the
execution of the PESTEL investigation technique.
P5
Internal and external factors have great impact over the venture decision, strategies,
policies, rules and regulation. Before selecting any business decision inside and outer analyse
ought to be led since condition in which organisation employee is an essential for the venture.
With the assistance of inside and outer examination association can distinguish their quality and
shortcomings and plan their exercises as needs be.
The assets of the organization have integrated money, physical goods such as plant and
equipment, human resources, spare parts resources and social assets. With internal analysis, risk
can find the capabilities and resources. External analysis is a process of decomposition of the
nature in which the association activity. External analysis has been used to find current market
models and opportunities that impact on key organizational choices. External analysis should be
possible with the SWOT strategy. This analysis includes:
Investigation of financial elements whether there is any adjustment in loan fee, swelling
rate and expansion rate (Aguilar, 2017).
Examination of innovative variables show the changes needed in the current invention by
refreshing them or supplanting them with new one. Investigation of lawful condition helps in
recognizing alteration in lawful directions accompanying with any uncommon demonstration,
alteration in obligations and tax assessment arrangements. Social and social examination helps in
distinguishing current patterns, ways of life, styles and different parts of culture. On the premise
of inner and outside examination Organization may detect its quality and shortcoming which
may incorporate after:
Strength: Strengths employee exceptional highlights or features for the venture. If the
venture is serving high quality of goods and services to their customers then they will have this
advantage as the biggest strength. Strength helps the venture to grasp the different opportunities.
Weakness: those factors that the risk of having to do more work with the support of an
appropriate goal can increase their ability and capacity. For example, Marks and Spencer are
active in different nations, so its drawback is that it is difficult to take control rules in all areas.

Opportunities: The venture can able to develop their own website, other than that they
can grasp new market segment by offering the products and services to the new market. Other
than that they enter into India and China.
Threats: The biggest threat for the vesture are their competitors, other than that They are
exposed to different political facts in countries they work in. with that Government policies for
retail stores can be come threat for the organisation.
Strength and weaknesses of the business association are connected with full scale and
smaller scale state factors. Management contrasts quality of organization and winning large scale
factors like monetary, governmental, innovation, social and social and afterwards plan important
and operational arrangements. A sudden alteration in ecological factors that have impact over the
alternative taken by management. Co-ordination between full scale variables and association's
quality and shortcoming are as follows:
P6
Monetary Factors: factors incorporate change in cost of loan, expansion rate conversion
standard in the market place. In this case the venture is pecuniary appropriate it has adequate
monetary assets than influence the different rates. This won't impact the valuing and advertising
process of the firm. Venture should regularly have make to confront the problems that emerges
due to progress in financial factors.
Political and lawful factors: These variables integrated lawful guidelines and directions.
Alteration in these lawful factors can have the impact over the organization to have confronted
these political problems that an organization can have aptitude and particular workers.
Social factors: There are several factors that are included in the social factors which have
great impact over the organisation. The factors may consist of people behaviour, their perception,
attitude, thinking etc. the venture should have quality workers in their business so that they can
manage these social factors and have success in the venture.
Technological Factors: As this is the ear of information technology where every
organisation need to adopt the different new and innovative technology so that they can operate
their different functions in effective and efficient way (Kennerley and Neely, 2013). If the
venture have innovative technology with them they can have competitive advantage over their
competitors.

Environmental factor: It is very important for an enterprise to consider more environmental
factors so it can not affect the atmosphere. If the company produces wood furniture, because it
will need wood from the trees. If they cut trees, they should plan other trees so they can not
affect the environment. So business management should prepare to implement different
techniques for this and take after each behavior.
Strength and weakness and large scale state factors that are cencerned with each other
and impact each other. On the other hand the venture should know the importance of strength
and weakness so that they can reduce their weakness and enhance their strength. This will help
them to fight with the different threats and grasp opportunities. Shortcomings will bad impact
over the venture (Davis and Blomstrom, 2016). If the organization can't satisfy the customers
needs and wants by serving satisfactory products and services than it will have impact over the
productivity of the firm. In this way, venture need to cater the needs and wants of the customers
o that they can reduce their weakness and enhance their strengths.
CONCLUSION
It can be concluded from the project report Business environment includes all the internal
factors like employees, management, policies and external factors like customers, suppliers and
government which affect business policies and operations of company. And there are different
types of business organizations operating in economy some for profit earning and some for
employment purpose. The present report will focus on various kinds of business organization
like private, public and voluntary organization their size, scope and legal structures. Other than
that SWOT and PESTLE analysis helps the venture to analyse the internal and external factors.
This helps to analyse that what are the different factors which can have direct and in direct
impact over the performance and productivity of the venture. The report consist SWOT analysis
where Strength means products and services of the venture which have high quality that can be
catered to the customers which helps the organization to make monetary esteem and competitive
advantage. Opportunities means It is the circumstances which involves accepting the various
opportunities to increase the weakness and performance of the organization, which helps to
create a financial idea of risk. Threats stands for threads which means Danger implies those
points which have bad impact over the organisation decision such as competitors, governmental
policies etc. Along these lines, with the utilization of the examination device organization.
Weakness: The shortcoming implies the absence of quality products and services that are
controlled by the organization to make financial or growing incentives. Other than that it can be

summarised that Internal evaluation helps differentiate and evaluate organization-specific
attributes such as central skills, capabilities, and asset availability. The internal investigation
demonstrates that authoritative exercises are implemented in mission criteria, vision, risk
objectives and methodologies. In the internal assessment, the guarantee risk will have adequate
strategies for communicating the different procedures and procedures.

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