Business Environment Report

This report analyzes the business environment of Marks and Spencer, a leading British retailer. It examines the purpose and legal structure of private, public, and voluntary organizations, and explores the size and scope of M&S and other enterprises. The report also includes a PESTLE analysis to assess the impact of the macro environment on M&S's operations, and a SWOT analysis to identify the company's strengths, weaknesses, opportunities, and threats. The report concludes with a discussion of how M&S's strengths and weaknesses relate to external macro factors.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
a) Purpose of private, public and voluntary organisation with their legal structure....................1
b) Size and scope of M&S and one other enterprise from public and voluntary sector..............2
c) Relationship between various functions in M&S to achieve their organisational mission and
objectives.....................................................................................................................................3
PART 2............................................................................................................................................4
a) Positive and negative impact of the macro environment on the business operations in M&S4
b) Internal and external analysis with PESTLE and SWOT to assess strength and weakness....6
c) Strength and weakness interrelate with external macro factors..............................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment consider important role in the business which influence many
operations and functions as well. In this regard, internal and external environment mainly create
impact and important role to handle wide range of activities (Frösén, Jaakkola and Tikkanen,
2016). It helps to increase efficiency and effectiveness as well. In order to work with the macro
and micro environmental factors, there are different activities consider important role in the
company. In this context, present report based on the Marks and Spencer which is private sector
business and deals in different kinds of supermarket activities and outcomes. Furthermore, there
are some other businesses explained with their functions and scope in the market. In order to
focus on the present report, it determines different kinds of the business and their scope to
develop effectiveness in the market. Furthermore, it includes size and market structure that helps
to attain desired results in the enterprise.
PART 1
a) Purpose of private, public and voluntary organisation with their legal structure
In order to determines success and desired results, in UK, there are different types of
business exist that work to develop their profits and revenue in systematic manner. In this regard,
every business set their own aims and purpose that help to attain more profits and revenue in
systematic manner. With this regard, following are different businesses explained with their
purpose and legal structure:
Private sector business: In respect to determines more creative results and outcomes,
private sector business work to earning more money so that their main purpose is to increase
profits. They invest their money with stakeholders and investors as well. It help to attain more
desired results. It assists to handle operations and better management with gained more revenue.
As results, they continuously promote their services and products to gain more customer
satisfaction (Savrul, Incekara and Sener, 2014). They consider their operations in term of retail,
manufacturing, etc. For instance, Marks and Spencer.
Public sector business: This firm consider their operations and functions for well-being
outcomes of the people. In this aspect, better outcomes will be gained for society and support
from government to take major consideration in systematic manner. It involve proper use of
resources and maintain quality of services to focus on the effective functioning. Their main aims
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and purpose is to create wellbeing of the people to gain more systematic outcomes and results at
workplace (Frösén, Jaakkola and Tikkanen, 2016). For instance, NHS.
Voluntary sector business: Voluntary business are work for specific goals and purpose so
that effective results and outcomes will be develop to attain more systematic results. With the
help of the vast operations and functions, they are working for betterment of the society which
help to attain more desired results in the business. They are getting functional resources from
volunteers so that effectiveness and outcomes develop with their part. It is not governed and
controlled by government. They are only taking consideration independently to attract
customers. Their main purpose is to fulfil particular purpose. After completing purpose, they are
break the whole group (Cavusgil, Knight and Rose, 2014). It will help to maintain effectiveness
at workplace. For instance, Oxflam UK.
b) Size and scope of M&S and one other enterprise from public and voluntary sector
There are different kinds of the business operate their functions and operations as per the
basis of scope and size. It assists to develop effectiveness and better functioning to handle
outcomes in systematic manner. Different size that operating by the business with scope are
explained here:
Private organisation: In the private sector of businesses, there are different types of
stakeholders working to make effective results. They determine more liabilities in terms of
shares. Therefore, functions and operations consider to make effective functioning and enhance
target market as well (Schaltegger, Hansen and Lüdeke-Freund, 2016). Main objective is to
develop more profit and revenue with developing effectiveness as well. Private business develop
their part to attain desire results and accomplish goals and objectives as well. Therefore, they can
also expand their functions and operations in new areas.
Public organisation: Public sector business consider several kinds of performances to
deliver products and services to consider welfare of community. With this regard, all types of
enterprises working with follow rules and regulations that are set by country’s government.
Therefore, it assists to focus on the innovations and attain desired results as well. These kinds of
enterprises consider their operations in different sector business such as educational system,
social businesses, etc. (Savrul, Incekara and Sener, 2014). They all follow vertical structure
which help to maintain effective communication in the international areas of the world. This is
because, with consider proper communication, they are able to make effective position and
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results with business goals. They are also frame some guidelines so that performances will be
expand in systematic manner.
Voluntary organisation: Voluntary sector businesses are also play major role to operate
systematic functions and operations. In this regard, it is important to set aims, scope and size that
assist to maintain cooperation in the market. Community and organisation need to consider their
part to focus on the organisation and team members that are using voluntary activities to promote
their systematic results (Cavusgil, Knight and Rose, 2014).
c) Relationship between various functions in M&S to achieve their organisational mission and
objectives
In Marks and Spencer, there are several functions and operations exist that assists to develop
effective results in the business environment. In this way, effectiveness will be develop through
consider different operations and functions to perform and interrelate several activities.
Following are different functions explained with the organisational structure:
Design and production department: In respect to operate successfully in the market, it is
essential to focus on the design and activities as well. It will assists to develop target market and
attain more significant results as well. With the help of the more customer attraction and
accomplishment of mission and vision, the selected business creates proper targets and
innovations in the business. It is the best way to Marks and Spencer to consider relevant aims
and objectives.
Finance department: Finance department of the chosen business consider several activities
and functions that help to maintain creativity. In this aspect, money has been arranged to invest it
in the market and attain more desired results as well. All the departments carry different
activities so that finance department need to look for the attain effective results at workplace.
Within the Marks and Spencer, it is important to arrange proper fund to maintain effectiveness
(Savrul, Incekara and Sener, 2014).
Sales and marketing department: Sales and marketing department of the Marks and Spencer
also play important role. In this way, several activities and tasks has been promoted to focus on
the innovations and creativity. There are several advantages has been taken on the basis of
finance department consider more focus on the new activities. To attain creativity as well. In the
department, sales team making full efforts so that they are able to make effectiveness in the
business easily.
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Human resource department: Human resource department consider important role to make
effective results at workplace. In this regard, marketing activities has been develop with the
several staff members. In order to attain desire results, Marks and Spencer need to concentrate on
the training and development program that carry to promote systematic results. It will assists to
look for the effectiveness development (Caiazza, Shimizu and Yoshikawa, 2017).
PART 2
a) Positive and negative impact of the macro environment on the business operations in M&S
Marks and Spencer is one of the largest British retailer which has more than 800 stores in
more than 30 nations. They are continuously developed and increase functions and operations in
different nations with innovative features and characteristics. Mainly they deal in UK to
ascertained more profits and revenue with the creative functions (Frösén, Jaakkola and Tikkanen,
2016). In this way, present PESTLE analysis consider positive and negative impact on the
business operations and effectiveness.
 Political factors: Government of India consider several rules and regulations that are
essentially followed by Marks and Spencer. This is because, it creates positive impact on
the environment because it helps to maintain hazards identifications, risk assessment,
health and safety, etc. The chosen company never ignore any regulations. Furthermore,
they are also negative impact by the regulations. This is because, company need to make
changes as per the government requirements (Grayson and Hodges, 2017).
 Economic factors: Furthermore, economic elements are also created impact on the
business environment in term of consider different regulations and policies. Marks and
Spencer never spare cash to spend on luxury items so that it is closely related with the cut
of jobs around 70000. The company also introduced several functions and operations
with creativity so that they need to promote more profits and revenue in the target market.
In the UK, there is unemployment rate increasing so that it is essential to look towards
the new functions and operations that assists to pay minimum wages with proper budget
program. It develop successful results in the market easily (Wheelen, Hunger and
Bamford, 2017).
 Social factors: In recent trends, customer awareness continuously increasing in the
market. Therefore, Marks and Spencer need to concentrate on the benefits that could be
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deliver to customers and attain desired results as well. It will help to focus on maintaining
effectiveness and deliver products and services as per the customer needs and demand. In
addition to this, as per market trends activities must be consider so that business able to
develop their operations and functions in systematic manner. There is wide competition
exist in the market because different business provide same products at different cost.
Therefore, it is essential to consider effectiveness with the innovations and effectiveness
to attain desired results at workplace. When the chosen business deal with the marketing
trends and customer demand, they are able to maintain their profitability and
effectiveness in systematic manner (Schaltegger, Hansen and Lüdeke-Freund, 2016).
 Technological factors: Technological tools and techniques helps to maintain advance
results and outcomes in the business. In this way, they develop more significant
advantages to cope up with the desired results and maintain effectiveness at workplace.
With the help of the implementing social media and other effective tools, the chosen
business able to deliver more creative results in the market. It will assists to focus on the
development of business goals and objectives as well. It is the best way to maintain
profitability and attain more desired results in the market (Caiazza, Shimizu and
Yoshikawa, 2017).
 Legal factors: Marks and Spencer is well known about the several rules, regulations,
policies that frame by government. In this way, it is important to focus on the effective
functioning that assists to look towards the different consequences. In this way, it is also
important to develop positive advantages at workplace. As results, business create well
being for their society and attain more relevant outcomes. Different laws has been
consider to maintain health, safety, security, etc. (Khan and Quaddus, 2015).
 Environmental factors: Furthermore, it is important to look towards the environmental
consideration that help to protect business from other perspective. In this way, it is
important for the chosen business to consider their operations and functions that never
harm to the environment. This is because, it assists to consider effective results and
outcomes with business development and attain more systematic results. The company
trying to make organic products so that environment safety maintain in effective manner
at workplace. Fair pricing and availability of the material assists to focus on the desired
results in systematic manner (Menychtas, Vogel and Varvarigou, 2014).
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b) Internal and external analysis with PESTLE and SWOT to assess strength and weakness
In order to consider focus on the identifying strength and weakness, it can be stated that
Marks and Spencer consider their systematic work performances. With the help of different goal
and activities, it can be stated that UK able to attain more systematic work performances at
workplace (Moroni, Arruda and Araujo, 2015). Hence, following SWOT analysis could be
implemented at workplace:
Strength: Marks and Spencer deals with the several operations and functions so that it is
important to attain desired results that assists to maintain effectiveness as well. In this regard,
strong market share also develop to deal with the more than 1000 supermarket in all over the
world. The company produce highest strength that is different segmentation existence. This is
because, with the help of the different segmentation, they are able to maintain effectiveness in
the market. It will assist to focus on the more relevant performances and objectives that need to
implement at workplace. In this manner, group work together so that the company offering
different kinds of brands to maintain effectiveness at workplace. With the help of generated more
outcomes and results, customer loyalty also maintained to implement effective results at
workplace (Moroni, Arruda and Araujo, 2015). In this way, positive impact could be generated
on the business with different activities. The chosen business is more loyal for their customers so
that it is also important strength that assists to target new people at workplace. It will help to
maintain quality and impact positively to attain more desired results.
Weakness: In Marks and Spencer, there are also several weaknesses exist which create
negative impact on the business outcomes. In this way, operations and functions consider
important role to target more people in the enterprise (Cavusgil, Knight and Rose, 2014). Marks
and Spencer has lack of creativity and innovations so that it create negative impact on the
customers. The company also maintain low margin on food products so that it also create
disadvantage to develop effectiveness and maintain effectiveness as well. In order to look
towards the business, the company consider creativity and effectiveness at workplace. The
business need to set more margin on each product so that they are able to make systematic work
performances at workplace. With the help of the creative elements, the business able to make
their position in market (Trevino and Nelson, 2016).
Opportunities: Marks and Spencer consider several opportunities through they are able to
increase their effectiveness and attain more profits as well. In this way, they can look towards the
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online selling products and services in new areas. They can also implement more creative
consideration through they will able to attract more people in the business. With the help of the
successful operations, it is essential to focus on the profitability and maintain effectiveness as
well. It will help to focus on the desire activities and make more systematic work performances
which is needed in the business environment. On the basis of credit facility, the chosen business
also develop their operations and functions in the market. It will assists to cope up with new
operations and functions in the market (Cull, Navajas and Zeiler, 2015).
Threats: There are several threats also exist in front of Marks and Spencer which create
negative impact on its functions and operations. In this way, in UK there is wide competition
exist that impact on the business. There are different competitors also exist in the market such as
Asda, Morrison, Sainsbury, etc. In addition to this, after Brexit the company also affected by
pricing strategy (Savrul, Incekara and Sener, 2014).
c) Strength and weakness interrelate with external macro factors
In order to consider relationship in the external macro factors, following strength and
weakness included at workplace:
Strength
Great place to work with diversity: In respect to deal in the market, it has been seen that
there are different places exist that help to work with the diversity. In this way, it is important to
focus on the work with different people with innovative characteristics and outcomes. Marks and
Spencer has strength to focus on the innovative functions and operations that are carried in the
market (Sekaran and Bougie, 2016).
Differentiated food products and services: In addition to this, it is important to look
towards the differentiated products of food. This is because, it is major strength that help to
maintain effectiveness and consider different rules and regulations towards chosen business.
Hence, Marks and Spencer need to follow all rules that frame by country’s government to
maintain effective results in the country (Crane and Matten, 2016).
Weakness
High competition in UK: In term of retail sector, there is wide competition exist that
create major impact on the business performances and outcomes. In this regard, it has been seen
that company develop their branded products and services through effectiveness will be
increasing continuously. High competition in the retail sector create negative impact on the
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business outcomes. Therefore, it is important to focus on the some innovative tools and
techniques that is needed in the chosen business (Belás, Demjan and Sipko, 2015).
Low margin: The chosen company charge very low margin on the food items so that it
create negative impact on attain desire results at workplace. In respect to focus on the some
important business activities, it is important to set high margin. This is because, without setting
margin the chosen business unable to make their further investment in the new areas. As results,
it is important to look towards the some creative results and activities that help to focus on the
systematic work performances (Hair Jr, Wolfinbarger and Page, 2015).
CONCLUSION
In order to carry the above report, it can be concluded that business environment consider
several activities and tasks. In this way, company able to develop their operations and functions
which assist to perform new activities in the several areas. Furthermore, report summarised about
the different kinds of business and their purpose. With the help of legal structure and scope,
every business consider their important part to maintain effectiveness and attain success as well.
Moreover, present report also concluded about the responsibility with functions of Marks and
Spencer that assists to look towards the new business operations and functions. In addition to
this, report articulated about PESTLE analysis of the UK which create major impact to produce
systematic work performances in the business.
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REFERENCES
Books and Journals
Belás, J., Demjan, V. and Sipko, J., 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.
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.
Cavusgil, S.T., Knight, G. and Rose, E.L., 2014. International business. Pearson Australia.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Cull, R., Navajas, S. and Zeiler, R., 2015. A new index of the business environment for
microfinance. World Development, 70, pp.357-388.
Frösén, J., Jaakkola, M. and Tikkanen, H., 2016. Effective forms of market orientation across the
business cycle: A longitudinal analysis of business-to-business firms. Industrial
Marketing Management, 52, pp.91-99.
Grayson, D. and Hodges, A., 2017. Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Hair Jr, J.F., Wolfinbarger, M. and Page, M.J., 2015. Essentials of business research methods.
Routledge.
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., Vogel, J. and Varvarigou, T., 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.
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Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences, 150,
pp.35-45.
Schaltegger, S., Hansen, E.G. and Lüdeke-Freund, F., 2016. Business models for sustainability:
Origins, present research, and future avenues.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Wheelen, T.L., Hunger, J.D. and Bamford, C.E., 2017. Strategic management and business
policy. pearson.
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