Business and Business Environment: Organisational Types, Functions and Structures

This report provides an analysis of the business environment of Marks & Spencer, including the types of companies, their scope and purpose, and the interrelationship between different organisational functions. It also discusses the positive and negative impacts of the macro environment and how strengths and weaknesses interrelate with external factors.

Business and Business
Environment

Table of Contents
Introduction......................................................................................................................................2
Organisational Types, Functions and Structures (Part 1)................................................................2
P1 Describe various types of company along with their scope and purpose..........................2
P2 Discuss the size & scope of a range of various kinds of organisation..............................4
TASK 2............................................................................................................................................7
P3 Explain the relationship between different organisational functions & how they link to
organisational objectives & structure.....................................................................................7
Business Environmental Analysis (Part 2)......................................................................................8
TASK 3............................................................................................................................................8
P4 Identify the positive & negative impacts the macro environment has upon business
operations, supported by specific examples...........................................................................9
TASK 4..........................................................................................................................................10
P5 Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses.....................................................................................................10
P6 Explain how strengths and weaknesses interrelate with external macro factors.............12
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
1

Introduction
The business environment is defined as the sum of all the internal and external factors
present which has direct influence on the operations and profitability of the business, it is simply
defined as the various forces available that influence the business ability to grow and maintain an
effective customers relationship. In order to continue to grow and gain competitive advantage in
the marketplace it becomes essential for the business organisation to analyse and evaluate the
environment and implement required strategy in order to deal with challenges. For this report
Marks & Spencer is taken as base company. Marks & Spencer is one of the top British retail
company dealing in offering clothing, home products, food products and so on, company was
founded in 1884 by Michael mark and Thomas Spencer. This report highlights the detailed
analysis of the business environment of the chosen company including the various type of
companies along with the scope also size and scope of different companies. Interrelationship
between different organisational structure along with positive and negative impact of macro
environment and also how strength and weakness interrelates with the external factors is also
highlighted in this report.
Organisational Types, Functions and Structures (Part 1)
P1 Describe various types of company along with their scope and purpose
A company is a legal entity started by group of person to carry out various business activities or
to manage and operate a business. It is incorporate with the main aim of operating as a
commercial or a industry enterprises (Allyson and Denslow, 2019). There are various types of
companies which are as mentioned below:
Private company: The first type of company is the private company, these type of company are
generally owned and managed by the private entity, started with large amount of capital with the
aim of satisfying the demands of their potential through offering quality goods and services and
also maximising the profit. These type of company comes under the major interest of their main
shareholders (Khalid and Seuring, 2019).
Marks & Spencer is one of the examples of private company.
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Purpose: The main purpose of the chosen company is to satisfy the needs of their target
customers through offering quality products and also to continue to maintain their quality, values
effectively.
Legal structure:

Sole proprietorship: This type of business entity are started by the single individual with
generally small amount of capital, the sole proprietorship are owned and managed by the
single person who himself is responsible for all the profit earned and also the risk
involved in the business. The owner of the business also takes all the important decision
also (Mandale, 2019).

Partnership: The partnership is the type of business entity which is started through the
mutual agreement between two partners who agrees to carry out all the business activity
together, bearing all the risk and sharing all the profit together according to the
partnership deed. In addition to this all the roles and responsibility regarding the business
are divided equally among the partners.

Corporation: The another type of the business entity is the corporation, this type of
business entity are mainly considered to the single business entity started by the
individual or the shareholders, the individual included in this type of entity are separate
from the owners.
Public company: The public company are mainly the government owned companies, this type of
companies are started by the government bodies with the aim of serving the general public. All
the major decisions of these types of companies are taken by the government bodies, these are
started with the main aim of satisfying the needs to general public (Panda and Rath, 2018).
The National health care service company in the UK is one of the example of the public
company.
Purpose: The purpose of NHS company is to satisfy the demand of the general public and
continuously work towards the welfare of the general public.
Legal structure:

Central authority: These are the public authority which are controlled by the government
continuously functioning towards the welfare of the public, these authority manage and
control activities favourable to the public at the central level.
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
State authority: These type of authority are started at the state level continuously working
towards the welfare of the public at the state level effectively (Rose, 2019).
Voluntary company: The last type of the company is the voluntary company, these type of
company started by the individual with the main aim of working towards the welfare and
profitability of the society. These type of company doesn’t work with the aim of earning profit
but aims improving the standard of the society. The voluntary company are generally managed
by the managing committee who are interested in working towards the welfare of the society.
Oxfam is one of the example of the voluntary company working towards improving the lives of
society (Schwepker Jr, 2019).
Purpose: The purpose of Oxfam is to continuously work towards the welfare of the society and
improve the standard of living of the poor community.
Legal structure:

Trust: The trust deed is one of the essential documents which allow the individual to give
the legal authority of the property to the third party; it involves the settler who takes the
initiative and the trustees which is being trusted in the process.

Un- incorporated association: The another type of business entity is the un-incorporated
association, these are the type of association committee which are committed to function
towards the welfare, these are the type of association started with the mutual agreement
between two or more individual to work towards fulfilling the needs of the society
effectively (Usunier, 2018).
P2 Discuss the size & scope of a range of various kinds of organisation
In United Kingdom, there are various types of organizations are operating their business
whether it is private, public or voluntary. The description of Marks and Spencer, NHS and
Oxfam on the basis of their scope & size are discussed below -
Different types of businesses as per their size -
Businesses
Descriptions
Micro These organizations mainly appoint less than 10 people & contain the annual turnover rate
less than 2 Million pounds.
Small These enterprises mainly employ less than 50 people & annual turnover is considered less
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than 10 Million pounds.Medium In medium enterprises, less than 250 workers can work & the annual turnover rate is
considered less than 50 Million. Pounds.
Large Large businesses contain more than 250 employees & the annual turnover rate in contain
more than 250 Million pounds.
On the basis of these businesses, the background is explained below -
Marks and Spencer

Background: It is British multinational retailer brand which mainly established in the
year 1884 by the two people named Michael Marks & Thomas Spencer. It is a large
cooperation that operating their business across the whole globe. There are more than
78000 number of employees are working & provide their best contribution in the growth
of the firm (Gorla, Chiravuri and Chinta, 2017).

Product & services: Marks and Spencer is the retail organization which mainly offering
household items, clothing & food items.

Vision: To provide high standard quality of products & also services to customers so that
company can effectively maintain the effectiveness of their brand value all around the
world.

Mission: To maintain set appropriate pricing policy so that company can attract the
customers in order to improve the selling process of the firm so that company can take
more competitive benefits. Business Objective : The main objective of the Marks and Spencer is that improve their
customer base while providing them satisfactory goods & services so that company can
appropriately full fill the expectations of their potential customers.

Organizational structure : Marks and Spencer mainly adopt " Flat Organizational
Structure" in this structure, limited level of management contain between the
administrative level to the front line working employees.

Size: Marks and Spencer is the multinational large corporations which mainly generates
almost £10,181.9 million revenue as per the 2020 and the net income £27.4 million in the
year 2020. Currently company operating more than 959 stores across the UK.
National Health Service
5


Background: NHS is the most famous publically funded healthcare organizations of the
UK which mainly established in the year 1948 . NHS is the 2nd largest payer healthcare
system in the whole world.

Product and service : NHS mainly provide various healthcare services like primary care,
long term healthcare, dentistry, in-patient care , ophthalmology and many more.

Vision: To delivery appropriate health for the people through the population wide &
individually concentrated on initiatives. Provide better service through quick access of
the modern services (Kong and et. al., 2020).

Mission: To provide adequate services to their customers & consider the requirement of
every people who want to take health care services of the company so that company can
maintain their market value across the whole globe.

Business Objectives: The prime objective of NHS is to adopt advanced level
technologies so that company can effectively provide most appropriate services to their
patients so that NHS gain high level of customer satisfaction.

Organizational structure: NHS mainly made up with the multiple organization in which
each individual contain own recruitment team & list of the vacancies.

Size: NHS is the largest healthcare organizations in UK and it is considered that 1.3
Million staff members, 112 thousands doctors, more than 289 thousand nursing staff &
almost 326 thousands support staff members working in NHS.
Oxfam

Background: Oxfam is the confederation of the 20 independent charitable company
which concentrating on alleviation of the international poverty. Oxfam founded in 1942
& led by the Oxfam. This is main non-profit organization within the extensive collection
of the specific operation.

Product and services : Oxfam mainly work on the trade justice , education, fair trade,
livelihoods, HIV/ AIDS , conflicts, debts & aid , gender equality, natural disasters,
climate change & also rights. With their program “Saving for Change" , this organization
mainly aid communities become financially independent.
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 Vision: Oxfam is a international firm which mainly work to end the injustice of the
property. Organization aid people create effective future.

Mission: To help the people in order to make realize the specific value of the labor &
also participate to create the better communities & society.

Business Objectives: The main objective for the growth of the communities & maintain
the volunteers for the betterment of the people. Organization can build respect & care to
the people (Lee, 2019).

Organizational structure: Oxfam mainly follow matrix organizational structure because it
is a multinational organization which works for the development of the society. Size: Oxfam is a international organizations which contain the large reach all around the
world. Organization contains more than 19.5 million people & in which there is
involvement of. More than 52% women. This organization mainly depends upon the
humanitarian assistance association & program.
TASK 2
P3 Explain the relationship between different organisational functions & how they link to
organisational objectives & structure.
Marks and Spencer is the multinational retailer companies which operating their business
internationally & also maintain strong market position all around the world. There are various
kinds of organizational functions performed by company interrelated companies objective & also
structure. Definition about the installation between all the functions of the company are
discussed below -

Finance & marketing - Basically financial functions is mainly concerned about the
income, expenditure & also financial operation of the firm. The main role of the financial
manager of the M& S is to allocate budget for each & every functional units &
department so that they can perform well. Finance department is also considered all the
profit margin & maintain specific cost & prepare budget for the marketing team (Pang
and et. al., 2019). Marketing department is also maintain their all activities & then consult
finance department regarding their expenses so that in this way both functional units are
work collectively & interrelated with each other.
7

 Human’s resources & Information Technologies - HR department of the Marks &
Spencer is more concerned about their manpower can effectively maintain every
operations so that they can improve the effectiveness of the firm the main role of HR
manager is adopt strategic hiring process & appoint high talented candidate through
online job application. IT department adopt a high level of technology and maintain
specific platform, website & portal so that HR manager can effectively publish online job
application and higher most deserving candidates so that both functional units are
interrelated and work collectively in order to achieve organizational objectives (Rennick,
2013).

Research and development & production - R & D department of the Marks and Spencer
is provider prominent role because it can help full to conduct market research and
observe the exact requirement of the customers. Manager can prepare a specific report
and mention the requirement of the customer so that the report can effectively circulate
the production manager so will be help of this report production manager can effectively
make some changes in their products so that company can gain the expectations of the
customer and if the organization of objective in an appropriate manner.
Organizational structure
Marks and Spencer mainly follow flat organizational structure which create a specific
outline which can help full to maintain a proper system within an organization so that all the
employees can effectively understand how to carry out all the business activities in a systematic
manner. Basically flat organizational structure contains less level of the middle management
between managers & employees. In this organization structure, higher authorities contain full
control in decision making & provide their contribution to accomplish all the objectives of the
company with the help of each and every organizational function (Rossignoli and Lionzo, 2018).
Business Environmental Analysis (Part 2)
TASK 3
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P4 Identify the positive & negative impacts the macro environment has upon business
operations, supported by specific examples.
In order to improve the performance of organization at the marketplace , it is necessary for the
company to analyze the impact of macro environmental factors so that company can effectively
maintain their brand value & take high competitive advantages. Through PESTLE analysis,
Marks and Spencer can determine the affect of external environment factors which are as follows
-

Political Factor - In context of political factors, taxation policies, trade regulations,
foreign trade policies are considered by the Marks & Spencer so that company can
effectively maintain all the political consideration and manage specific political stability
so that company can effectively deal with influence of political factors. Marks and
Spencer properly follow political law and also procedures related to the specific market
which provide the positive impact on their effectiveness. But sometimes, political
influence & stable condition contained by the government can grow provide impact on
the business of the company which can provide negative impact on productivity of the
firm (Townsend, 2017).

Economic Factors - The prime concern of this factor is on the employment rate, interest
rate, exchange rate, recession, inflation. Marks and Spencer is a large corporation which
mainly provides their contribution in the development of the economic growth of the
country. Company adopt convenient pricing policy & corporate specific discounts which
can help to improve their market position so that company can effectively generate more
foreign currency it can provide positive impact on the company performance. Due to
covid pandemic & also Brexit , company experience various up and down in their
business which provide adverse impact on the working of the company.

Social Factors - As per the factor, company mainly identify the buying behavior of the
customer, purchasing power, buying habits & requirement of the customers. Marks and
Spencer maintain all the cross cultural activities and determine the exact need of their
potential customer so that company can effectively fulfill all the requirements of the
people. Company can conduct market research in order to make clear understanding
about the customer needs so that company can modify their product and services to gain
customers responses which can provide positive impact on the performance of the firm.
9


Technological Factor - This generation is all about technologies & maintain every
business activities through advanced level of technologies. Marks and Spencer operating
activity via online platforms so that company can reach larger number of people which
can provide positive impact on the productivity of the company. But sometimes,
technological error, network problem, no internet connectivity can provided negative
impact on the company operations (Upadhyay, and et. al., 2019).

Legal Factors - It is necessary for the firm to manage all the legal consideration, lawful
activities, policies & procedures Product Company can more appropriately provide their
effective contribution to manage all the legal laws and legislation. Marks and Spencer is
more focus to follow all the laws and act in their organization which can improve the
working condition of the firm so that company can also effectively deal with the other
countries legal structure more appropriately this is provide positive impact on the the
brand value of the company. Sometimes, changes in legal legislation, act & policies can
provide negative impact on the working conditions of the organization.

Environmental Factors - This factor mainly include specific situations like changes in
climate & whether, pollution, population. Marks and Spencer more focus on
environmental factor and also adopted green marketing which can provide positive
impact on its productivity level product completed effectively maintain long-term
sustainability at the whole marketplace. But sometimes, changes in the environment,
ecosystem can provide negative impact on the activities of the firm.
TASK 4
P5 Conduct internal & external analysis of specific organisations in order to identify strengths &
weaknesses.
As per to improve the productivity & effectiveness of the company , it is necessary to
understand the strengths & weaknesses so that company can prepare an effective plans &
strategies to make their position more strong to sustain at marketplace globally. To determine the
internal & external analysis, Marks and Spencer need to conduct SWOT analysis which is as
follows -
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Strengths
Weakness
 Marks and Spencer is one of the
leading brands of retail industry in
UK. It mainly performs their
operations with the various big
partners nationally & internationally.
 Company contain more market
experience & maintain their position
as a big brand which recognized by
most of the people all around the
world (Sharma and Rani, 2017).
 Marks and Spencer maintain strong
reputation for their best quality of
goods & considered as the 2nd best
supermarket & stores in UK.
 Company maintain their international
market presence & operating their
business activities across the Europe,
middle East& also Asia & company
running more than 1463 stores across
the UK.
 Company mainly executing most of their
operations manually so it can take more
time & improve the cost of the company.
 The perception of Marks and Spencer is
different for the teenagers because they
are thinking that company providing less
variety in clothing & considered as the
elder brand so it can provide negative
impact on selling.
 Due to pandemic & Brexit, the
performance of the company in declining
so it can be a main weakness of the
company.
Opportunities
Threats
 International expansion is considered
as the massive opportunity for the
company. Marks and Spencer already
expanded their business operations in
various abroad countries like Russian,
Indonesia & India, so company can
task more countries to maintain the
 High levels of competition in retail
industry improve the chances of the big
threats for the company.
 There are various controversies affect.
The. Performance of the Marks and
Spencer.
11

global reach & improve their brand
awareness all around the globe.
 Marks and Spencer can take more
online business opportunities so that
company can target local & niche
market areas so that those people who
are not earning well then they can
afford the products at low cost.
 Company contains good reach in
online platforms but company need
set their standard like leading
company like Amazon & Alibaba.
Company can set specific parameters
so that company can effectively
become the leading brand in E-
commerce.
P6 Explain how strengths & weaknesses interrelate with external macro factors.
It is essential to consider the influence of external macro environmental factors which can
helpful to determine the current position of the firm. Every company contains its own strengths
& weaknesses which company can utilize to maintain their external macro factors. The
discussion of this interrelationship is as follows -

Political Factor - This factor generally demonstrate the political fluctuations which affect
the decision making of the Marks and Spencer. The strengths & weaknesses of this factor
is as follows -
Strengths
Weaknesses
Company contain the strong global
appearances & maintain specific International
expansion which can improve the sales of the
firm & it can possible with the innovative &
Constant changes in the government policies &
procedure can affect the performance of the
company in an negative manner that's a main
12

supportive team building that is considered a
the main strength of the company.
weakness of this factor.

Economic Factors - Economical growth & development determined this factor. Marks
and Spencer is the well known retail organization which maintains economic stability so
that company cans performance well at the marketplace (De Nobile, 2017). The specific
strengths & weaknesses about this factor is as follows -
Strengths
Weaknesses
Marks and Spencer provide their products &
services at low cost & also provide the specific
offers & discounts which can be a main
strength of the company that can lead the most
appropriate outcomes.
Market fluctuations circumstances can provide
the adverse impact on the productivity of the
firm so it is difficult to generate more foreign
countries so that is the main weakness of the
company.

Social Factors - This factor concerned about the socio cultural activities , age, income,
gender, taste & preference of the customers. Some strengths & weaknesses of socio
factors are given below -
Strengths
Weaknesses
Company conduct small market research to
analyze the needs of the customers as per their
geographical areas so that company can easily
modified their goods & services to gain the
customers satisfaction level. That is considered
as the big strength of the firm.
More competition in the retail industry &
constant changes in the customers like &
requirement can affect the performance of the
company.

Technological Factors - This factor mainly considered the technological advancement &
high level of software system. Marks and Spencer is the big corporation which also
13

utilizes technological consideration and adopt advisable of technologies to perform their
operations. Some specific strength and weakness related to this factor are as follows -
Strengths
Weaknesses
Marks and Spencer is a multinational
organization which adopt high technologies
and maintained their operation with the help of
social media channels which can help full to
connect large number of people that can
consider the main strength of the factor.
Technological error, low server, cyber crime,
and lack of internet connectivity can we
considered as the main weaknesses of the
factor.

Legal Factors - legal structure, lawful activities, legislation, acts, policies & specific
procedure are those factors which directly affect the performance of the company. Some
specific strength and weaknesses related to this factor are as follows -
Strengths
Weaknesses
Marks and Spencer properly maintain all the
legal considerations and also follow
appropriate acts related to health and safety,
data Protection act, employment act and many
more which can be as the main strength of the
firm.
Company also experience various
controversies related to their product and
services & specific lawsuit provide adverse
impact on the reputation of the company.

Environmental Factors - Environmental protection, climate changes, pollution in
population rate can be contained in the sector and the specific strength and weaknesses
about the factors are given below -Strengths
Weaknesses
Marks and Spencer initiate specific marketing Continuous changing in marketing situations &
14

campaign which provides the awareness about
environment & company also enhance the
green Marketing activities that can also be a
big strength of this factor.
advanced level of technologies can provide
adverse impact on the environment so it can be
a weakness of the company which determines
no sustainable environmental situation.
Conclusion
According to this project it can be concluded that, to maintain business environment is is
become the essential tasks for each & every organization internationally. Companies can
maintain their business environment with specific strategies & implementation of appropriate
practices which can help to determine the company’s market position. This project discussed
about various types of businesses whether it is public, private & voluntary organization. This
project also determined various types of businesses as per their size & scope. With the help of
this project it can be effectively identified that how organizational structure is helpful to maintain
the performance of the company and achieve the objectives with the specific coordination of
organizational functions. Moreover, this report also evaluated the impact of of internal and
external business environment on the working of the company and determines specific strengths
and weaknesses which can provide appropriate impact on the macro business environment.
15

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