Impact of External and Internal Factors on Business

This assignment examines the influence of both external and internal factors on a company's operations. It emphasizes the dynamic relationship between these factors and their impact on various organizational functions. The text stresses the significance of data analysis for informed decision-making, enabling businesses to effectively compete and achieve their goals.

Business environment

Introduction
The business environment is that which consider all the internal and external factors
which directly affect the management and function of the company and some of those factors are
like employees, customers and gets affected with demand and supply as well and its regulation
too. Environment is such which cannot be controlled by the company and some of those factors
which affect in huge way are of external environment and they are as competitors, political,
social and culture etc. Organization always looks forward to secure them with such environment
although they do face the problem of internal and external. The report is based on Marks and
Spencer, firm is leading retailers in UK and somewhere the entity is having 1433 stores around
the globe. Moreover they serve in brand food, clothing and home product too. Although around
they have 85000 employees and thus working for the industry. Firm is founded by Sir Michael
Marks and Thomas Spencer. Assignment is that which will discuss about purpose of private/
public and voluntary organization, scope and size of public and the voluntary sector, relationship
are such various functions within the company. Positive and negative impact macro environment
have on entity, pestle and SWOT of M&S, How strength and weakness with the external factor.
P1 Purpose private, public and voluntary organization and legal system.
There are different kinds of organization which has various legal structure in their
organization in which they use to work. Although the private, public and voluntary entity has
several laws, which do followed by firm in right context to form their business in proper format.
Normally, firm does not look forward to follow the rules and regulation of law and in the last
they need to wind up their company. Hence, some of the legal structures of the organization are
as follows:
Private sector: This sector is such which is privately owned by the individuals. Moreover, it is
quite easy to form such kind of business as because in this sector the provisions of companies Act 2013 is
not applicable in this. Although this company is such which is formed by the 2 members and only 2
directors. These kind of firms are usually preferred by the investors and thus because they can buy and
sell their stakes in ease manner. Generally it can be said that the stakeholders are limited to the 50 only.
Maximum number of partner an organization can have is around 200 according to act. There is no limit

for such firm which has number of employees and to work with them. This sector is such which has no
limitation in working and can have many employees in their firm so that they can work in great manner
and can look forward to have attainment of goals and objectives in great way.
Public sector: Company is such which is somewhere owned by the public and by the
government. Organization is such normally they raise funds from so many aspect and through public
directly and with issues of shares. Although it is also there that minimum 7 number of stakeholders and
minimum with 3 directors. Moreover, there is no limit in the number of shareholders and although they do
have a limited liability in the extent which can have its face values of its shares. Hence public structure is
does not have to earn more money in form of profit and in the form they have been formed. Private
sectors are that who earn more than a public sector always too.
Voluntary organization: This is such which include both the sector like public and private
sector and does go beyond the serving society with their own personal interest as the number of NPO
(Non-profit organization). These sector are those who make profit too but do not use such for their
personal aspect and although they use the money for the development of society in great manner. Even
though the voluntary organization is having more expenses then the income for raising the fund in proper
manner also and thus lead to have development of the society. Moreover, they use the section 21, and
there are various things to have trust and thus common law with trust and property control Act 57/1988.
Thus organization system is such which is different from the other in their working, although
various firms are there which follow some laws to form them. Normally, those companies who follow the
laws in right context then they do not face any issues and problems in working as after they get registered
with laws. None the less and they do work according to the requirement in any business.
P2 Size and scope of M&S public, private and voluntary sector.
Moreover, it has seen that the M&S is serving millions of people across the globe and
firm is working at very large level. M&S is serving people with their quality product and
services too. Although, around 970 stores are there in UK only and having 450 branches as well
at the international level. Hence, company also deals in the food product which took rise in the
recent years and even they have approximately 85,000 employees working with the firm.
Scope Company can be state in such a way that they can utilize the technology and
competition in great way. Normally it can be seen that the retail store is having a vast scope in
manner of technology and environment in better way. Proper strategies and decision made in

organization can also attract the large number of stakeholders in retail store to invest their
income in better manner. Even though the entity is already serving millions of people with their
product and they use available resources in perfect way which help them to satisfy their
customers in right context, with this they too use technology and environment in additional
factor and this help them to cover the large market area as well.
The public company can be said like NHS which is a health care firm and provide health
services in England. Although, the firm is such which funded publicly and considered into
national health care system, even the NHS is being included in the best national health care
organization in UK. Moreover, the firm was founded in the year around 1948 by ANEURIN
BEVAN. Employees are in numbers and it is around 1,400,000. And serving the health care. The
public funded for national health care system for patient, business does not charge anything from
the patient and although they do charge for prescription of dental treatment and optical care too,
but it this there is a range of exemption in the charges and taken from the patient.
Voluntary Company is a group of individuals, who does enter into the agreement and
usually they form such to complete some task or activity in great manner although. Therefore,
there is some of voluntary association like (trade association, unions and professional
association). Hence some of this association are corporate and incorporated as well. Moreover,
these firms are incorporated for their own sake of good and it can be said that they are very much
different from the private and public sector in various ways. As, they are formed for some of
good purposes and for the individuals working in entities, although they also support the labor
union and even become as one when have to fight against something wrong decision taken
against them too.
Thus the size and scope is such which help company to attract number of customer to
come and buy their product and services in great manner and thus with this they lead to attain the
goals and objective in effective manner. It’s a mindset of people that if the company is working
at higher level than they could be earning higher revenues and income in great way.
P3 Relationship between the function within M&S for achieving the objective and mission
Although in every organization it is like where the great relation are required and
among the various functions of business are there. Although the M&S is having a great relation
with their clients and customer among the various functions of their entity. Moreover, if the

company is not having a proper relation and coordination with their several departments than it
can be seen that firm will not be able to attain their goals and objectives in better manner
although. Hence the various functions of business are as follows:
Production department: Production of different product and services should be done in
accurate manner and should be manufacture with quality product. Although it can be seen that
production of goods and services can within the organization is there and the while management
has to take responsibility to have such in vetter manner. The manufacturing of different product
in depend on man, material and money etc. to have a smooth functioning can be there in firm.
Hence, the entity M&S is having a great communication and relation with the production team
and they work hard for the firm and even though the business is having a different policy for its
production team so that they have to follow such to manufacture the product and service.

Marketing functions: This is that which help in attracting the large customer to buy
their product and services. The M&S is also having a great communicative relation with
their marketing team as because they have a responsibility to make aware the millions of
people about the availability of product and services in market. Even though there are
various ways through which large population can be covered and advertisement, personal
selling and having public relation etc. these aspect are those which help company to attain
their goals and objectives in perfect way. A proper budget to marketing team should be
given as because they are responsible for attracting the large market. Although the content
of product selling concept should be upto the mark so that they can attract them in great
manner as well.
Finance functions: Finance is such which is required by organization is huge manner so
that their other department can work in better manner and although in smooth way as well.
Therefore, finance is such which help to bought the resources which does help in having a proper
working in the firm. This is such which also make company to get stable in market in right
context too. Finance department and other division of firm should have an perfect relation as that
thing help in having various work in great way.
Human resources: Human resource is such which is considered as the base of company
and they are those who work in such a way who is responsible to make the company to attain
their goals and objectives in better manner. People should be motivated in organization to
complete their work in effective way and thus it’s a responsibility of top executive to motivate
the employees on timely basis so that they can work in right direction as well. Firm has a
responsibility to greet every customer is right context so that they can make such customer an
existing one. This make customer aware about the new product and services available in market
and to purchase them in right manner as well.

Management information system: It is such which related to management and
information of the organization. Having data and information of different thing thus help in
making better decision and strategy in company so that they can make their firm stable in
market. The every department of firm does require information related to market so that they can
work in according to that only.
Research and development: Not only M&S require this kind of department even
though every firm needs this department as they make research of market and help
company to use such information and data in making better decision and strategy for
competing with their competitors. It can be said that the research process is a time
consuming and needs a lot amount as well to conduct in right context as well. Every
department needs to have research so that they can bring innovation and creativity in their
working so that unique with better quality product can be produced and make millions of
people satisfy with their commodities too.
All these department work as one so that company can attain their goals and objective in
better manner and even if all the department work together then they can compete with the other
firms in great way as well.
P4 Positive and negative impact of macro environment on M&S.
Even though every company in this world faces the negative and positive impact of environment,
although the macro environment do affect the working scenario of firm and it is on the firm that how they
perceive it and behave in such situation as well. Moreover, it has seen that the macro environment is a
biggest concept to understand in better manner. Normally outside environment is that which include many
factors and it is like PESTLE and it affects the operation of business in huge way and some of the positive
and negative impact of the macro environment is as follows:
Political: The positive impact of environment on company is that EC’s free trade agreement and
it has been seen that decrease the source cost. Firm has to have and great CSR (Customer service
relationship). Negative impact is such which entity has a higher cost structure disadvantage in there
international market and it is such which affect the lack of UK government, energy and saving efficiency
scheme.

Economical: Positive Impact of the company is such which focuses on quality product
and its values, consumers and rationale they need satisfaction from the product and they gets
ready to pay the any amount in better manner. Negative side is that competitors of company has
led down their prices in huge manner so that they can attract the large number of customers to
their side in great way of M&S although nowadays customers do look online and offline for the
valuable deals.
Social: Positive impact is that image of M&S in eyes of people is good. They have a
belief that the company is going to provide quality product to consumers at reasonable rate. The
Company performs everything to make them feel special and surprising. Negative impact is they
different people from various culture are having unusual preferences and wants which is need to
be carried forward or fulfilled by companies, is not fulfilled than they will shift to any other
brand products. Company has to change themselves according to market.
Technological: Entity is with social media and online presence is also there. Consumers
are now more technological focused and prefer to buy things online only. Firm with CRM is on
success and works effectively to satisfy the customers are the positive impact. Negative would be
that technology changes according to time to time and it is required by firm to adapt the changes
and work efficiently, it becomes harder to adapt new technology every time because the
employees does not get familiar with all those.
Environmental: Strict regulations on environment and having a pressure of the ethical green is
there and thus, M&S has also looked for the advantage and from the development and although it can also
be seen that concerning about the environment is related to the positive impact as well. The negative
impact which has seen that competitive firms are like also going with an advantage and such regulations
are those which does create a rivalry in between the M&S and other companies as well in huge way too.
Legal: The M&S is thus who follow the every legal contract so that they can ignore the issues
and problems which occur in the working of the firm, even though they have a home delivery channel of
distribution i.e OMNI channel. Decision is such which company to exit the EU along with the UK and
thus they work according to such only.
P5 Internal and external analysis of M&S through PESTLE and SWOT.
It is required to have an PESTLE And SWOT analysis of their company so that they can work in
better manner and if any changes is required then they can make in proper way as well. Moreover, with

this the environment of the company has also got affected in great way too. But although the PESTLE
and SWOT the firm can make themselves stable in market and thus in great way too.
The SWOT of the firm is being like:
Strength Weakness
 Company is having a great and high
corporate social responsibility.
 They have a responsibility to introduce a
new trend in market.
 Firm is having a huge competition across
the boundaries of UK and thus almost the
M&S has reduced its competition from
market in UK only.
 Moreover, the company is having very
poor performance in terms of finance.
 Firm is having very much dependency in
UK market which needs to be overlooked.
 Although biggest weakness is not using the
technology in better manner.
Opportunity Threat
 Biggest opportunity is that entity is
working on their clothing segment in
proper manner although.
 They are thinking to come online services
as well which will help to boost up firm.
 Although the business is aslo simplifying
the operating model in effective way.
 Changes are preferences and thus
customers do make companies to have
changes in their trend in other clothing
sector.
 There is a great competition in UK market
regarding to the Food sector.
The firm is such which has great strength and they have to look for the product and thus it is be like
requirement of customers in working and thus it bring believe in satisfying various people which come
out for purchasing in better way and thus M&S is such which globally work in product to large market as
well. Company is such which is having a perfect corporate social responsibility and also provide an
surprises and quality of product to customers.
Weakness is that which company looks forward to improve and thus like poor financial condition
from last so many years and thus because of competition all the other entities do provide the similar
product at the reasonable prices in better way and M&S and their company is such which depend on
having quality product and thus they use less technology to market their commodities as well. Firm is

somewhere totally dependent on the market of UK to earn the higher revenues and income in perfect
way too.
The PESTLE analysis is such M&S is as follows:
Political Economical
 There are reduction in the cost trade
policies and thus they do help in making
better policies by company and with such
they can earn higher amount as well.
 It can be seen that the conflict is thus
arises in company just because of the rise
in prices too.
 Even though they know that customers are
rationale in nature and thus they need
quality product for the amount there are
paying and for such they provide quality
commodities.
Social Technological
 Firm is such who is supporting to the
communities and thus they are
surrounded and somewhere also look
forward to have an helping hand thus also
goes with cutting down the prices. The
M&S are such who take initiative in for
society.
 Firm is having a relation with the sure
cloud and does have any trust on
technology in great manner.
Environmental Legal
 Moreover, in market there are various
thing like saving denims are there in
market.
 Although the M&S do provide the fresh
milk in great way too.
 If it is about legal then the organization is
having a financial dispute with the Frascati
landlord in UK only.
Moreover, PESTLE is such which help to understand the outer market in better manner and thus
helps in attaining the knowledge of market so that better strategy and decision can be made. PESTLE is

that which can help company to research of market and can help in expanding the business in huge way
too.
P6 Using the M&S interrelate the strength and weakness with its external macro factors
There are number of external factors that are present outside environment that may affect
business operations and functions in number of ways. These elements are beynd control and
hence have to be properly implemented into the system effectively and efficiently. M&S have to
evaluate their strengths and weaknesses in relation to external macro factors that are discussed
below:
STRENGTHS
 They offer large number to their customers: M&S is among th top brand in UK which
offer large variety of products to their consumers. Therefore, they have to operate in
accordance to client’s requirements and demands that are prevailing in market place,
which is an external factor that have to be consider by them.
 Large expansion: they have numerous stores and outlets that are established across the
globe. The external factor which is highlighted here is the location or areas that impact
their decision making process.
 Strong Brand image: M&S have strong image in customer’s minds that it lead to
generation of huge revenues and market share. This can be possible because of their
services which they provide to their customers in order to satisfy their demands and
wants in effective manner.
 Offer designer brands: M&S is famous for delivering famous and popular brand products
to their customers in order to flourish more in current market place. There are number of
competitors that are present in the environment hence, they have to maintain their
competitive edge in front of them so that final aims can be accomplished.
WEAKNESSES
 Adoption of traditional technology: This a major negative point of M&S that they use old
technology to perform their work tasks. They have many employees who have to perform
many operations manually. This pose a huge impact on their performance as well as

productivity. Every business is established for earning huge profits and sustainable
market growth.
 Increase in overall cost structure: This is related to first weakness in which adoption of
traditional working styles results in increasing of company cost that does not suit for the
organization. This also pose a problem for competing with their competitors that are
already present in business environment.
 Non Trendy brand: M&S have face number of challenges in respect of brand name.
Customers make wrong perception related to clothing sections that are of men, women
but are not for teenagers and old people. This results into lowering down of company’s
image and lead into negative impacts that may hinder the performance of the company on
these basis.
All the above discussed strengths and weaknesses have a direct link with the external factors
that are present outside the business environment and has to be taken into consideration while
forming number of decisions. Hence, management of business organization have to examine all
these factors in order to work accordingly and result into achievement of final goals and
objectives that have been set by them. There are certain vision and mission that are present and
has to be full filled by them in effective manner
CONCLUSION
The report tells about the company M&S who is serving millions of people with their
products and services, firm is many products like clothing, food and milk products too. They
serve quality based products to people of UK and even the human or people of globe. Firm is
having a thought of satisfying customers in various ways, entity make every moment special for
their consumers. Company provides only quality products to customers as because the human
and people are having a nature and behavior of being rationale they wants those items and
services which can satisfy their needs and wants in perfect manner. Firm is finding competition
in market with many other industries who are selling their products of same nature. The thing
covered with this report is, those criteria which affects the company’s performance in market.
External and internal factors affect the organization operation. Their relationship in various

levels of function, though positive and negative impact a macro environment is having on
company. Moreover, having information and data then entity can easily compete with other firms
and even with availability of data help business to make the proper decision which can conver
the entity to attain the goals and objective in right context too.
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