Business Environment INTRODUCTION 1 TASK 11 Covered in PPT1 TASK 21 P3 Relationship between various organisational functions 3 TASK 4 5 P5 Strengths and weaknesses interrelated with external macro fac

Business Environment INTRODUCTION 1 TASK 11 Covered in PPT1 TASK 21 P3 Relationship between various organisational functions 1 TASK 33 P4 Positive and negative affects macro environment 3 TASK 4 5 P5 Internal and external analysis of particular organisations 5 P6 Strengths and weaknesses interrelate with external macro factors 6 CONCLUSION 7 REFERENCES 8 8 INTRODUCTION Business environment refers to a place where different operations as well as activities of business are carried out in a better manner for accomplishing main

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT...........................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between various organisational functions.........................................................1
TASK 3............................................................................................................................................3
P4 Positive and negative affects macro environment.................................................................3
TASK 4...........................................................................................................................................5
P5 Internal and external analysis of particular organisations......................................................5
P6 Strengths and weaknesses interrelate with external macro factors........................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
.........................................................................................................................................................8

INTRODUCTION
Business environment refers to a place where different operations as well as activities of
business are carried out in a better manner for accomplishing mains and goals of firm. It
comprises of external and also internal factors which affect on functions of an organisation and
consist partners, staff members, consumers, investors and some other people. It is important or
each business firm to understand an environment to decide operations of business and generating
more profit or increasing growth of firm in an effective manner (Cai and Yang, 2014). This
present report is based on the Marks & Spencer organisation and this firm deals in retail sector. It
is specialised in selling of home products, clothing and food items. In this given assignment,
discuss about the various purposes and kinds of organisations. The scope and size of range of
different kinds of organisation will also be mention in this report. Internal and external both
factors affects on business environment in a positive and negative manner. This report will be
helpful in understand relationship among various functions of an organisation and they are
concerned with the organisational structure as well as objectives. Strengths and also weaknesses
both are interrelate with the macro factors.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between various organisational functions
The aims and objectives of each business organisation are different from the each other
and their business operations are also varied. In addition to this, it is necessary for every business
firm to prepare the effective organisational structure so that they can achieve their aims and goals
with in a specific period of time. As Marks & Spencer is a private business firm and operate its
business in all over world. Under this firm, 84, 939 employees are presently working. This firm
is regarded as multinational firm which dealing in the several segments like for an instance
clothing, luxury food items and home goods (Cai and Yang, 2014).
It has been stated that this company is having a better organisational structure since
operations of this firm being conducted through its staff members. The manager of this
organisation increases motivation level of staff members so that they can perform in a better and
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effective manner. There are many functions which performed through Marks & Spencer and
these are Marketing, finance, human resource, production etc. It is necessary that employees
should perform its all operations in a better manner. Interrelationship between different functions
of an organisation given below as above:
Marketing Department- It is a necessary function which performed for increasing sales
as well as profit level of an organisation. Before manufacturing any product, Marks & Spencer
know about the needs as well as preferences of consumers so that it can satisfy their needs in a
better way. The connection ore relation of this department is good with the others. It is helpful in
getting competitive advantage at workplace.
Finance function- It has a better connection with monetary transactions which are
happening in country. It allotting funds to various departments so that they can do their
operations in a better manner. Under this function includes creation of the assets, arrange funds,
provide necessary amount for different activities etc. If this department will arrange money in a
better manner, then all other departments can perform in a well manner (Chavis, Klapper and
Love, 2011).
Production- It refers to management principles applications to production function in
factory. It consist application of plan, directing, controlling process of production. It is the duty
of product manager to focus on producing better quality of goods to consumers. This is having
clear link with company structure as products will manufactures on the basis of developed plan.
After analysis market, firm is producing goods which can fulfil their demands and aims in an
effective manner.
Human resource function- This department works on focus increasing development and
productivity of firm in a better manner. Regarding this, manager of Marks & Spencer hires most
capable persons by knowing their skills as well as abilities. From this they can work on
achieving aims of firm with in specific period of time (Commander and Svejnar, 2011). This
function is helpful in bringing coordination and cooperation among all department.
Research and development- This department is having responsibility of conducting
research and then manufacture products according to needs and preferences of consumers. If
research will be proper then in this case, firm can attract people by providing them effective
goods.
Organisational structure
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Function based- IN this, firm divide its structure according to various departments like
for an instance finance, production, marketing etc.
Product based- It is decide on organisational structure on the basis of diversified
offerings such as clothing, foods items, home products etc.
Geography based- Under this, segmentation of the organisational structure on the basis of
various target markets.
Consumer based- IT is segmented according to behaviour and demand of customers.
TASK 3
P4 Positive and negative affects macro environment
There are different factors which are available on business environment and having a
strong impact on activities of business firm but firm is having no control on external factors.
There are two factors included in business environment and these are internal and external. The
impact of both factors can be negative and can be positive on business (Cuervo‐Cazurra, 2011).
It affecting on policies and rules which are performed through management of Marks & Spencer.
The PESTLE analysis and positive and negative impacts given below as above:
Political factor- Under this, all policies are developed through United Kingdom government. In
addition to this, if government will formed new legislations as well as policies fr manufacturing
goofs then it will have affect on activities of business firm.
Positive effects – If firm will follow all rules of government then it will develop positive
affect on operations of firm. Policy of free trade is able to minimize firm source of costing.
Negative effects – If rules and new legislation will be implemented at workplace then
cost will be enhanced. From this cost of goods will be increased and it will not be beneficial for
consumers as well as organisation.
Economical factor- It has a relation with some components and these are growth rate, deflation,
inflation etc. of specific company. Perspective of all these components are varied in each country
and Marks & Spencer provide its services in all over the world. Under this, if an economy will be
go down and up then it can impact on growth as well as sales of firm. So, it is necessary for
Marks and Spencer to determine all these changes which happen at business
environment (Gebauer, Paiola and Edvardsson, 2010).
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Positive effects- From inflation will enhanced then fund flow will be increased and bring
more money.
Negative effects– If environment will change on continuous basis, then there will be
difficulty faced through this firm regarding managing all these modifications.
Social Factor- The taste and lifestyle of consumers are changing day by day. It is a
responsibility of business firm to to provide goods n the basis of their demands. From this
positive affect will be developed in the mind of consumers and they will be loyal towards firm.
Positive effects– Though this, company can get different opportunities to attract
consumers ans interact with them.
Negative effects- Company has an introduced product chain but not easy to produce
innovative products rapidly.
Technological Factor – Under this, advance technology is introduced through Marks & Spencer
order to conduct its activities as well as operations in a better manner. This organisation uses
different technology in order to make improvement in its business as well as operation process.
Positive effects– From thus, company can make improvement in its business process and
also work in easy manner.
Negative effects – Adopting of technology increased cost of firm (Halbert and Ingulli,
2011).
Legal Factor – It consists legislation which is developed through government and also require to
be executed through each company. It is necessary for every business firm to implement all
legislations at workplace to protect rights of employees.
Positive effects– Legislations are helpful in protect rights of consumers and developing
positive reputation in mind of consumers.
Negative effects – All legislations can disrespect their management policies.
Environmental Factors- These factors consist those which are identify through surroundings of
an environment. It is important because of enhancing scarcity of population targets, raw
materials etc. by doing business in an ethical manner.
Positive effects- Red- tapism will be minimised and firm can carried out in an effective
work.
Negative effects – Under this all paper work will be decline and begin using internet
facilities. From this labour will be reduced (Hamilton and Webster, 2015).
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TASK 4
P5 Internal and external analysis of particular organisations
Internal and external both factors affect on business environment of an organisation.
Regarding this, it is a responsibility of manager to find all external and internal factors which can
develop negative affect on business. In order to determine internal factors there is a need to
Marks & Spencer to do PESTLE analysis and for internal factors conduct SWOT analysis.
SWOT analysis of Marks & Spencer
Strengths Weaknesses
 This company is a leading firm in
clothing in United Kingdom.
 This firm has strong brand equity.
 In foreign market, Marks & Spencer
has global expansion which minimize
susceptibility.
 It has large number of outlets as well
stores in all over the world.
 It has global presence in more than 40
countries.
 Manual working enhanced costs.
 Competition is strong in the retail
sector.
 The financial performance of this
organisation is poor.
 From misuse of any product, firm need
to protect them.
Opportunities Threats
 It has an opportunity to Marks &
Spencer to create its own website.
 It can introduce segment of its new
markets.
 Can expand brand in China.
 Policies of government for retail sector.
 Other stores of retail are threat because
of their discounted costs.
 Changing trends in clothing products.
PESTLE Analysis of Marks & Spencer
FACTORS
Political  Minimising cost of sourcing because of free trade policy.
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 Free trade agreements.
 Change in taxation as well as government policy.
Economical  Dispute with the small retailer over increase cost of goods because
of currency affect of Brexit.
 Provide effective opportunities regarding employment (Hilton and
Platt, 2013).
Social  Focus on changing needs and preferences of people.
 Product chain recalls develops negative trends of society.
 Impact on the brand goodwill of firm.
Technological  Increase productivity of firm and conducting business operations
in better manner.
 Provide different kinds of communication channel to firm.
Legal  Policies having standard packaging and also using eco- friendly
goods.
 Financial conflict with the Frascati Landlord.
Environmental  There is a requirement to focus on the waste management
(Klapper, Lewin and Delgado, 2011).
P6 Strengths and weaknesses interrelate with external macro factors
It has been notices that the business environment is having an affect on activities as well
as operations of Marks & Spencer. This firm has some strengths as well as weaknesses which is
necessary to determine by management. In United Kingdom, this firm has large number of
consumers and have strong presence in international market. In additon to this, external factors
making changes for firm so there is a need to spend more amount as well as time by satisfying
different types of responsibilities (Prajogo, 2016).
Marks & Spencer has strong brand equity and clothing is a leading brand of this
organisation in United Kingdom. This firm is entering in the future markets such as China.
Economic development of this nation is highest and purchasing ability of people of United
Kingdom is also enhancing. The revenue of Marks & Spencer is enhancing day by day after
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faced many political as well as economical issues (Savrul, Incekara and Sener, 2014). The
revenue of this business firm is enhances on continuous basis and also opening new stores in
some of the other countries like for an instance India and China. In regards to this, external
factors should assess Marks & Spencer to follow effective strategies of global as well as rapid
expansion.
Political factors: At the time of conducting business activities in other country, it is necessary
for Marks & Spencer to follow all policies and regulations of that country.
Strengths: This firm make changes on the basis of regulations and policies of
government.
Weakness: It conduct its business operations in many countries and need for collect more
information.
Economic factors: IN this consists exchange, tax rates, inflation and deflation affect on business
activities. It operate its business activities in different countries to manage activities.
Strengths: IT can expand business in different countries and provide advantage to firm.
Weakness: Various nations have different exchange and inters t rates, so firm needs to
work accordingly.
Social factors: Needs and demands of consumers changing rapidly so there is a requirement of
Marks & Spencer to provide better quality of goods accordingly and according to their demand.
Strengths: If firm will manufacture goods on the basis of consumer's demand then
goodwill will be enhanced.
Weakness: There is a need to administration to take care about the quality products
which can negatively impact on market position.
Technological factors: Under this, it is essential that top management should use of better tools
and advanced technology which can make production process better.
Strengths: If M&S firm will use advanced and latest technology then operation cost will
be reduced and goods will produce of better quality.
Weakness: Obsolete technology can negatively impact on business operations and quality
of goods.
CONCLUSION
It has been concluded from the above report that business environment is necessary for
company and provide all resources which need to be performed in a better manner. Business
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environment is considered as change in nature so it is necessary for manager to understand all
changes and work accordingly. In this mention report studied about the negative and positive
affects of macro environment on business operations of an organisation. The manager of Marks
& Spencer organisation identify all the negative affects and work towards overcome from them.
There is a discussion regarding external as well as internal analysis in addition to determine
weaknesses and strengths.
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REFERENCES
Books & Journals
Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive
priorities: The role of performance frontiers. International Journal of Production
Economics.151. pp.131-145.
Chavis, L.W., Klapper, L.F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics.93(1). pp.309-337.
Cuervo‐Cazurra, A., 2011. Global strategy and global business environment: the direct and
indirect influences of the home country on a firm's global strategy. Global Strategy
Journal.1(3‐4). pp.382-386.
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.
Halbert, T. and Ingulli, E., 2011. Law and ethics in the business environment. Cengage Learning.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Hilton, R.W. and Platt, D.E., 2013. Managerial accounting: creating value in a dynamic
business environment. McGraw-Hill Education.
Klapper, L., Lewin, A. and Delgado, J.M.Q., 2011. The impact of the business environment on
the business creation process. In Entrepreneurship and Economic Development (pp.
108-123). Palgrave Macmillan, London.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
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.
Online
Marks & Spencer SWOT & PESTLE Analysis, 2018. [Online]. Available through:
<https://www.swotandpestle.com/marks-and-spencer/>./
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