Business Environment

This report analyzes the business environment of Marks and Spencer (M&S) and the impact of government regulations on the organization. It also discusses the effects of changes in the business environment on the company's structure and strategies.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Business environment.................................................................................................................3
LO2..................................................................................................................................................4
Impact of government.................................................................................................................4
LO3..................................................................................................................................................4
Impact of change in business environment over organization ...................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................5

INTRODUCTION
Business environment is indicated by all internal and external factors associated with the
corporate organisation in order to conduct all business operations. Business environment is a
collaborative sum of all stakeholders of company associated in any way to any business
operations. This report is based on the case study of Marks and Spencer (M&S) in respect to
business environment. Henceforth, this report will emphasis over business environment.
Government's impact will also analyse over business environment of a company.
LO1
Business environment
Business environment is considered as all internal and external aspects of the Marks and
Spencer business in order to meet the expectations of target customer's of the company. To
analyse about the business environment of the M&S certain factors needs to e evaluated.
Analysis of business environment is the primary aspect that an organisation go through while
taking any decisions in respect to business development and growth (Lenart-Gansiniec, 2018).
Analysis of the business environment is comprises with scanning, monitoring, fore casting and
assessment.
Scanning: Scanning is a process which involves identify all the factors associated with the
business organisation in respect to any aspect of the Marks and Spencer. Scanning also involve
analysis about all the respective stakeholders associated with any operation of the company.
Customer's, shareholders, government, suppliers and all other internal and external factors that
can be denoted as company's stakeholders.
Monitoring: Monitoring is an activity conducted in the business organisation that involves
assessment of all activities of company's stakeholders. It's about to control the stakeholders
associated with the business organisation.
Fore casting: Fore casting is a process that involve anticipate the future aspects of retail sector.
Expectations of customers in future is a part of this activity.
Assessment: Based on the for casting growth factors get assessed by target company
management in this process.
PESTEL Analysis
PESTEL Analysis is an external business environment factor.

Political factor: Political factor is defined as all policies frame by government associated with
retail sector. Policies like licensing policy and other policies associated with the retail sector.
Economical factor: Economical factor involve economic condition of company. GDP growth
rate of country and other aspects of economy involved in economic factor. Inflation in economy
also play huge role involve in economic factor.
Social factor: Social factor involve culture, religion, values and beliefs of people in society.
Social factor play huge role in the sales capacity of the Marks and Spencer. Company also frame
effective marketing campaigns as per the social factors.
Technological factor: Technological factor involve technological advancement. All
technological development in the market is a part of technological factor.
Environmental factor: Environment factor is also a major business environment factor. This
factor guides company to launch eco friendly products. Company also involve in many corporate
social responsibilities as per this factor to improve the growth potential of company.
Legal factor: Legal factor involve all laws and legislations implemented on companies.
Management of Marks and Spencer cope up with all legislative requirements as per this factor.
LO2
Impact of government
Government put a huge impact over organisation structure of Marks and Spencer. Based
on the government regulations suitable organisation structure is framed that can meet up all
employment legislations such as equality act and all other employment legislations (Bavato and
Xiao, 2018). Company management has framed a suitable structure to deal with all grievances
associated with the organisation structure. Sustaining equality is a crucial aspect involve in
legislations and company management of Marks and Spencer needs to assure the equality in the
organisation by framing a suitable structure of organisation.
LO3
Impact of change in business environment over organisation
Changes implemented in business environment impact over entire organisation structure
of the company. Changes in business environment influence the organisation in the following
manner.

Policy Framing: All policies of company framed by management as per the business
environment associated with the Marks and Spencer. Changes like governmental policies and
strategies totally influence policies and strategies framne3d by company management.
Organisation Structure: Organisation structure of the company is framed as per the business
environment linked up with retail sector. Company management structure the entire organisation
structure based on the needs and requirements of target customer's.
Strategies Formation: Changes in business environment impact over every aspect of the
organisation and strategies formation is among the leading aspect. Any change in business
environment directly influence the company's strategies in respect to conducting all its business
operations.
Opportunity for company
 Business expansion opportunity.
 Product development opportunity.
 Marketing over social media will create huge growth opportunity.
 Diversification opportunity.
Threat:
 Competition is a huge threat for company.
 Inflation in economy is a huge threat.
 Loosing brand value.
CONCLUSION
This report concludes about different aspects of the business environment. Influence of
changes in business environment over strategies and policies of the company has also concluded
in this report.
REFERENCES
Books and Journals
Lenart-Gansiniec, R. ed., 2018. Crowdsourcing and knowledge management in contemporary
business environments. IGI Global.

Bavato, D. and Xiao, J., 2018. From Catalysts to Synthesists: A Qualitative Study of
Transformational Brokerage in Volatile Business Environments. Academy of
Management Global Proceedings. (2018). p.285.