SWOT Analysis and Business Environment

This assignment provides a detailed analysis of the business environment, including a SWOT analysis of Marks & Spencer. It also explores research papers on entrepreneurship, innovation, and environmental uncertainty. The document is suitable for students looking for past papers and solved assignments related to business studies.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions and its link with organisation
objectives ...............................................................................................................................1
TASK 3 ...........................................................................................................................................3
P4 Positive and negative impact of Macro environment on Business operations..................3
TASK 4............................................................................................................................................5
P5 Internal and External analysis of Marks and Spencer.......................................................5
P6 Interrelation of Strength and weakness with external Macro factors................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment can be defined as the sum of entire intrinsic and extrinsic
components which directly and indirectly affect outcome of different undertaken procedure.
This is essential for carry out proper evaluation of different factors and surroundings of
organisation in which they operate to monitor and sustain within the competitive business
environment. Function of business within entire gambit of authentic environment as well as need
to negotiate in the manner by it. This is fundamental for each and every organisation to undertake
major determinants of business to function proper activities such as partners, consumer,
employees etc. The whole practices support assistance in gaining competitive business
environment along with the competitive edge of company increasing overall revenues of
enterprise (Agarwal, Grassl and Pahl, 2012). Report will evaluate different environmental
influences and aspects of Marks and Spencer which is one of the largest luxury food chain and
supermarket of United Kingdom that is dealing in numerous segments of global market
effectively. This assignment will evaluate the scope, size and nature of different enterprise types
along with interrelation of different functions of firm with objectives of company. With this, it
will also light over different external and internal environment and interlink between all of them.
TASK 1
Covered in PPT
TASK 2
P3 Relationship between different organisational functions and its link with organisation
objectives
It is significant for each and every organisation to set their aims and objectives
accordingly in regard of attaining proper business vision of enterprise. So, this is fundamental for
an enterprise to design their structure of enterprise in regard of setting authentic target or
objectives easily attainable. Since, M&S is performing their business on global market within
more than 85000 employee group. This is also known as MNC i.e. dealing in numerous segments
such as luxury items, food products etc (Aterido, Hallward-Driemeier and Pagés, 2011).
Numerous functions are carried out by Marks and Spencer such as sales and marketing,
research and development, human resource management division, finance and accounting etc.
Entire functions assist in accomplishing business objectives through operating altogether in
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significant manner. So, this organisational structure are interlink with the function of company
which is complied in M&S are discussed here:
Marketing division: This is one of the fundamental function i.e. managed by organisation
like M&S to sell their services and products and create awareness among the consumer. This
division deliver the information and disseminate the message of organisation to the consumer
creating a communication bridge among both of them. Hence, this is associated with several
other division that can assist the enterprise in attaining competitive edge of firm creating more
sustainability within marketplace (Auzair, 2011).
Human Resource Division: This function is generally performed through Marks and
Spencer as it has employed extensive worker group. This create different influence on
organisation by managing and satiating employees demands and requirements leading to better
performance and productivity of enterprise. Hence, HRM practices can assists the enterprise in
conducting planned programs in regard of achieving business objectives.
Operations and Production: It is a sort of functions of Marks and Spencer which is
employed by organisation to produce commodities and manage the activities accordingly on the
basic level. This create more coherent connection in the company's structure which aid in
producing the determined plan. M&S is also delivering product manufacture after evaluating the
market so that services can be produced with best quality of operations. M&S is also
manufacturing their service which are being manufactured at the initial stage. This is creating a
coherent link with the organisational structure as this can manufacture products according to the
plan. Henceforth, enterprise can achieve their business objectives through creating value added
products and gaining optimum outcome of operations (Avramenko, 2012).
Finance and Accounting: It is a sort of function i.e. creating their connection with the
financial transaction i.e. incurring in the organisation on the regular basis. These divisions who
are aligning funds to distinct division of organisation need to carry out practices in more
disciplined manner. Hence, through optimum financial asset uses, conducting proper survey,
asset creation, enterprise can reach to their set business objectives and outcome in more
significant manner.
Research & Development: It is one of most paramount department which are essential
for the company as this aid in understanding the consumer demands and outlines different
aspects of market environment of Marks and Spencer to perform well and best. As M&S is one
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of largest supermarket expanded in global market, this can shape the business strategies and
frame the outcome accordingly (Mahmood and Hanafi, 2013).
Henceforth, Marks and Spencer can help in creating more development in competitive
business environment as this is obliged to attain different perspectives of markets and assist in
managing different practices of company significantly. This made the practices crucial within
distinct practices in more effective manner.
TASK 3
P4 Positive and negative impact of Macro environment on Business operations
There are several factors which are present on business environment and also impact on
activities as well as operations of Marks and Spencer. In addition to this, there are two factors
internal and external which impact on business activities but among both there is no control of
management on the external factors. Both factors have some negative as well as some positive
impact on operations and activities of an organisation. It affects on policies and also rules which
are performed through management (Adeoye and Elegunde, 2012). In this organisation, manager
developed effective or proper policies in order to reduce affect of internal and external factors.
Policies play necessary role in attaining decided aims and objectives with in specific period of
time. In order to determine positive or negative impact of business, management of Marks and
Spencer organisation use PESTLE Analysis which are mention below as above:
Political Factor: Under this, there are different policies which are developed through
government of United Kingdom country. The rules and policies of each country is different from
each other and before conduct business in other country, it is necessary for Marks and Spencer to
know about policies of that country. Positive effects: It is helpful in doing business operations in significant way and also
having the free trade policies which are able to minimize cost of sourcing. Brexit has an
affect on activities of business (Bar-Isaac and Shapiro, 2013). Negative effects: If new rules will be executed then Marks and Spencer business firm will
be get its necessary resources at minimum cost and it is not beneficial for business. So,
from this business relations of two different countries will not be good or effective and
firm can face many problems.
Economical factor: In this, there are many factors which can affect on business
operations like for an instance inflation, growth, deflation rates of specific country. All these
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factors having various perspectives in each country and Marks and Spencer organisation run and
operate its business operations in many countries. In addition to this, it is necessary to regarded
that if an economy will be develops then its impact will be on development and sales of an
organisation. It is essential that manager of Marks and Spencer to analyse all necessary
alterations which are required in existing business environment (Burns and Winter, 2011). Positive effect: Positive impact of this factor is that if an inflation will be happen then
flow of funds of will also be enhanced. It will be helpful in enhancing sales as well as
profit level of an organisation. Negative effect: In this, an environment is changing on the regular basis so there are some
complexities which faced through management of Marks and Spencer business firm
(López-Gamero, Molina-Azorín and Claver-Cortés, 2011).
Social Factor: Each firm is taking effective resources from an environment which need
to be return back. The tastes and preferences of consumers are changes in short period of time so
there is a requirement to produce goods on the basis of demands of consumers in a significant
manner. It aids in deciding all activities which are necessary to perform through it. Positive impacts: This factor is helpful in getting many opportunities to business by
satisfying demands or wants of people of society in a significant way. Through this
productivity of an organisation will be increased. Negative effects: Marks and Spencer organisation develops chain of goods or services
which are formed destructive social trend.
Technological Factor: Marks and Spencer business firm adopt and use advanced
technology in business for increasing quality of goods better, reducing time and cost of
operations. This firm perform or conduct its business operations through using different kinds of
technologies which make business more effective. With the help of using advanced technology,
firm can communicate with its consumers at market place in an effective or efficient manner
(Boons and Lüdeke-Freund, 2013). Positive effects: If Marks and Spencer organisation will use advanced or new technology
in its business then operation or production cost will be reduced and firm can provide its
products to consumers on minimum price. Negative impact: More cost will be invest to Marks and Spencer company in context to
purchase new technology as well as machineries.
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Legal Factor: This factor consist legislations which are developed through parliament of
United Kingdom country and also requirement to execute at workplace. All legal systems are
helpful in protect the rights and interest of workers in an organisation. It is necessary that
management of Marks and Spencer implement all necessary or effective legislations in company
(Chow and et. al., 2011). Positive effects: Legal factors are helpful in protect all workers at organisation in
significant manner and bring the safe zone for them. It is helpful in developing the good
reputation of an organisation at market place. Negative affect: Some times, all legislations can be disrespect by management of
company because they do not want to adopt and implement these legislations (Hamilton
and Webster, 2015).
Environmental Factor: This factor is necessary because of enhancing pollution targets,
raw material scarcity, carbon footprints etc. Under this it is necessary that firm should doing its
business as sustainable as well as ethical. This factor impact and also identified through
surrounding environment. Positive effects: In this, eco- friendly products can develop positive impact on business as
well as it activities in a significant manner. It will not harm on environment and society
will appreciate operations of company. It is helpful in minimising red- tapism and from
this all business operations will be carried out in a significant manner (Commander and
Svejnar, 2011).
 Negative effects: In Marks and Spencer business firm reduce all paper work by using the
internet. From this, firm can reduce its workforce by terminating some staff members.
TASK 4
P5 Internal and External analysis of Marks and Spencer
In intrinsic evaluation, organisation is needed to perform SWOT on the grounds of
PESTEL analysis conducted by management in order to evaluate external affecting factors of
Marks and Spencer. Here are elaborated version of SWOT evaluation mentioned as below:
Strengths Weaknesses
 Organisation has strong reputation and  Numerous issues in the external
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global brand recognition within the
marketplace.
 Company contain unique selling
proposition of their provided
commodities.
 It consist of effective environment of
business along with mesmerising
infrastructure (Cronan and et. al.,
2011).
 Enterprise has been awarded due to its
quality of products and services.
business environment of business is
faced by M&S such as poor
performance of apparel segment.
 It is fundamental for organisation to
reduce pre-tax benefits as it has
decreased to 9.7%.
 In competitor comparison, services and
products value are set higher.
 Consumer are not satiate with services
and goods in context to the offered cost
in comparison to other organisations.
Opportunities Threats
 Through the e-commerce and online
market, company can widen their reach
and enlarge consumer number of
organisation.
 Enterprise have strong banking
transitioning records.
 Slow economical recovery can lead to
numerous issues.
 Company consist of strong market
competitors.
Hence, on the grounds of presented SWOT, here is elaborated the PESTEL evaluation of
Marks and Spencer which is discussed as beneath:
FACTORS EXPLANATION
Political  Company is performing in continuously changing political
environment (Dahan and et.al., 2010).
 Frequently modification and creation of government policies.
 Policies associated with tax.
Economical  These represents the income rise among the UK people.
 Delivering employment opportunities to society.
Social  Aims over frequent altering consumer taste.
 This create strong recognition of brand through complying
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guidelines.
Technological  Modification in technologies are creating positive influence on
economy.
 Company are deliver numerous communication and information
solution.
Legal  These are containing the standard policies of packaging and are
utilised eco-friednly raw material as well.
Environmental  It is essential to aim on waste management.
 Programs introduction i.e. known as Plan A for maintenance of
resource waste management of firm (Halbert and Ingulli, 2011.).
P6 Interrelation of Strength and weakness with external Macro factors
This has been noticed that organisation's business environment is creating numerous
influence of practices of M&S. The company is managing their weaknesses and strength which
is fundamental for administration to consider and undertake. Marks and Spencer are gaining
maximum revenues of enterprise from United Kingdom which are containing more strong global
presence after the Post Brexit period but there are numerous problems and issues have emerged
while deploying the practices in company's business region. Such external components analysed
in the above report are creating new modifications in Marks and Spencer's market condition
which is leading to more money expenditure as well as accomplishing the demands at the same
time (Fernando, 2011).
Marks and Spencer's brand equity is very strong. Due to this, the company has been able
to create large apparel recognition in the global market. Country has highest rate of economic
growth and purchasing ability among individuals in the country's increasing. The extrinsic
elements is assisting in Marks and Spencer in the investment presentation of organisation in
minimum period of time. They are operating emphasising upper middles class income and
premium clothing category which is a good for them in due more income which is directly
associated with more available expenses. Marks and Spencer's revenues in this area is constantly
growing and they are expanding their chain in open economies such as India, South Africa etc.
The extrinsic elements are assisting organisation in creating more effective expansion plan and
business strategy through the help of this (Gebauer, Paiola and Edvardsson, 2010).
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CONCLUSION
This can be affirm from the above described notion that business environment can be
defined as the sum of entire intrinsic and extrinsic components which directly and indirectly
affect outcome of different undertaken procedure.. This is fundamental for each and every
organisation to undertake major determinants of business to function proper activities such as
partners, consumer, employees etc. Another important and more essential organisation is non-
benefits organisation which is also known as voluntary enterprises. There are numerous
determinants on which grounds, the enterprises are segregated that also varies the structure of a
firm. It is significant for each and every organisation to set their aims and objectives accordingly
in regard of attaining proper business vision of enterprise. In intrinsic evaluation, organisation is
needed to perform SWOT on the grounds of PESTEL analysis conducted by management in
order to evaluate external affecting factors. This has been noticed that organisation's business
environment is creating numerous influence of practices. Organisation are operating emphasising
upper middles class income and premium clothing category which is a good for them in due
more income which is directly associated with more available expenses.
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REFERENCES
Books and Journals
Agarwal, R., Grassl, W. and Pahl, J., 2012. Meta-SWOT: introducing a new strategic planning
tool. Journal of Business Strategy. 33(2). pp.12-21.
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms. Economic
Development and Cultural Change. 59(3). pp.609-647.
Auzair, S., 2011. The effect of business strategy and external environment on management
control systems: a study of Malaysian hotels. International Journal of Business and
Social Science. 2(13).
Avramenko, A., 2012. Enhancing students' employability through business simulation.
Education+ Training. 54(5). pp.355-367.
Adeoye, A. O. and Elegunde, A. F., 2012. Impacts of external business environment on
organisational performance in the food and beverage industry in Nigeria. British Journal
of Arts and Social Sciences. 6(2). pp.56-65.
Bar-Isaac, H. and Shapiro, J., 2013. Ratings quality over the business cycle. Journal of Financial
Economics. 108(1). pp.62-78.
Burns, C. and Winter, S., 2011. Introduction. Australian Farm Business Management Journal.
8(2). p.iv.
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-
the-art and steps towards a research agenda. Journal of Cleaner Production. 45. pp.9-
19.
Chow, A. T. and et. al., 2011. Broadband network with enterprise wireless communication
system for residential and business environment. U.S. Patent 7.944,948.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance. The Review of Economics and Statistics. 93(1). pp.309-337.
Cronan, T. P. and et. al., 2011. Decision making in an integrated business process context:
Learning using an ERP simulation game. Decision Sciences Journal of Innovative
Education. 9(2). pp.227-234.
Dahan, N. M. and et.al., 2010. Corporate-NGO collaboration: Co-creating new business models
for developing markets. Long range planning. 43(2). pp.326-342.
Fernando, A.C., 2011. Business environment. Pearson Education India.
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.
López-Gamero, M.D., Molina-Azorín, J.F. and Claver-Cortés, E., 2011. Environmental
uncertainty and environmental management perception: A multiple case study. Journal
of Business Research. 64(4). pp.427-435.
Mahmood, R. and Hanafi, N., 2013. Entrepreneurial orientation and business performance of
women-owned small and medium enterprises in malaysia: competitive advantage as a
mediator. International Journal of Business and Social Science. 4(1).
Online
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SWOT Analysis of Marks & Spencer. 2017. [Online].Available
through:<https://businessteacher.org.uk/swot/marks-and-spencer.php>.
Agarwal, Grassl and Pahl, 2012Aterido, Hallward-Driemeier and Pagés, 2011.Auzair,
2011Avramenko, 2012.Adeoye and Elegunde, 2012Bar-Isaac and Shapiro, 2013Burns
and Winter, 2011.Boons and Lüdeke-Freund, 2013Chow and et. al., 2011 Commander
and Svejnar, 2011Cronan and et. al., 2011 Dahan and et.al., 2010.Fernando,
2011Gebauer, Paiola and Edvardsson, 2010.Halbert and Ingulli, 2011.Hamilton and
Webster, 2015López-Gamero, Molina-Azorín and Claver-Cortés, 2011Mahmood and
Hanafi, 2013.
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