This report discusses the case study of Marks and Spencer Company in context to management of business and economic concept implement in respect to business venture. It covers the role of accounting, major financial statements, and business performance and competition.
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INTRODUCTION Business economics is an term that is used to demonstrate the economic concept while implementing into the practical business practises. This report is based on the case study of Marks and Spencer Company in context to management of business and economic concept implement in respect to business venture. The organisation was established in the year 1884 by the founder Michael Marks and Thomas Spencer. The company is associated with the retail market and hold a headquarter in London, United Kingdom. The organisation contain a global level of business operations which allow the business to hold a strong dominance in the global market. This report will discuss the all different role accounting play in the organisation. Various financial statement will be discussed in this report. Furthermore, performance of te business venture will be discussed in this report with support of ratios. MAIN BODY Business performance and competition Economic actors are associated with the macro and micro economic aspect of the business venture. IN process to operate the business operation company get influence with all these macro and micro environment element or factors influence the business operations of company. Different factors like political factor is among the key clement or factor influence the business performance of Marks and Spencer Company which get affected due to these factors or elements (Prokhorova and et.al., 2018). This become essential for the business venture to get influence with this macro business environment factor. United Kingdom hold a very stable political situation which affect the company in process to channelise all different operation and functional activity. Economic factor on the hand include buying power of customer, per capita income of people in country and many more. Inflation in economy is another crucial factor or element that influence the business venture for delivering its performance in market. Social factor, technological factor and many more are also considered as a core element or factors influence the business venture in regard to the micro environment features.Marks and Spencer Company get an direct influence with all these micro and macro environment factor which get influence the business operations in order to deliver the overall performance of the business venture. The economic position of country and further the controlled level of inflation support the business venture to effective utilise the element of buying power in favour of the business
venture.Marks and Spencer Company follow the strategies like discount policy that allow the company to take on the competitive advantage in the massive level of competitive environment. There are various factor which get influence the competitive environment of the firm that include market competition, buying power of customer, internal business environment of company and manymoirewhichdirectlyinfluencethebusinessventureforaffectingthecompetitive advantage of the business venture (Popkova, DeLo and Sergi, 2021). With the process of proper pricing strategy and policy company get to entertain the competitive edge in the respective target market. This has been well-supported by the business venture to understand the key requirement of the business venture. It can be stated the fact that the business venture get to enjoy the competitive edge irrespective of the aggressive level of market competition. This become important for the Marks and Spencer Company to understand the market situation and guide the company's operations in such a way that business get to enjoy all the key strategic edge that can cut the market competition for the business venture. Micro economic factor is totally an internal areas of the business venture which direct the business to drive all its operations and individual activities in its own way of processing. This tactic will favour the business entity to effective drive all its operations and functional activities of the business venture in process to take on the competitive advantage in respective target market. Role of accounting Accounting is aboput to project the books of accounts of company associated with the financial year. This is about to depict and disclose all the transactions and operations entertain by the venture in the accounting books and accounting terms. The role of accounting is significant in context to the business venture as it allow and support the company to depict the financial effect of every transaction of company (Schallmo, Williams and Lohse,2019). The accounting is done with support of set of books such as profit and loss account, balance sheet and cash flow statement prepare by the business venture. The role of accounting is to project all the financial transaction entertain by the company belong to the respective financial year in the books of accounts maintain by the business venture. Accounting play a crucial role in presenting all the transaction inn the books of accounts maintain by the Marks and Spencer Company. The ultimate impact of the transaction and affair entertain by the venture is depicted in the books. Further the accounting play role in projecting all the net outcome business venture has entertained such as profit or loss which company get to
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incurred in the books of accounts are also depicted with support of accounting only. The role of accounting is to measure the financial effectiveness of every single business transaction entertain by the company (Adisanjaya and Ramantha, 2019). The ultimate aim of the Marks and Spencer Company is to achieve profit in the business and accoutring allow the organisation to efficiently ensure the best form of profitability and make a control over various business transactions entertain by the venture. For example management ofMarks and Spencer Company ensure the efficiency of every single strategy adopted by the company with the use of its accounting effect that depict whether the transaction could support the profit or loss for the company. Henceforth, role of accounting is also to ensure the ultimate benefit business venture could get in against to deliver the business operations. Performance assessment is also done with support of accounting books only. The management and financial experts at the Marks and Spencer Company calculate all ratios with the use of accounting books and records maintain by the business venture. This can be stated that accounting is among the most crucial and significant area of operation that allow the business venture to understand the real situation of business and direct the company to identify whether the business operations are considering profit and losses. Major financial statement Major financial statement prepare by the business venture cover profit and loss account, balance sheet and cash flow statement associated with the business venture. Profit and loss account This is among the key financial statement associated with the financial reporting practices denoted by the business. This financial statement depict about the profit which business venture entertain in the respective financial year. The main aim of this financial statement is to depict the profitability of the business venture that is entrained by the company in the respective financial year. All the revenue nature of income and expenses belong to the particular financial year are presented in this financial record (La Ros, Caserio and Bernini, 2019). The role of this financial statement is to present the net profitability business venture entertain in the particular financial year. Company also get to evaluate and identify the effectiveness of the operational efficiency of the business venture. Balance sheet Balance sheet is also among the core financial record and statement prepare by the Marks and Spencer Company in the respective financial year. This is a projection of all the assets
associated with the respective financial year comprises with current assets along with the fixed asset of the organisation (Mugambi and Karugu, 2017). Further this statement talk about all types of liabilities current liability along with fixed liability of the business venture. Capital or equity invested by the shareholders and directors of company are also reflected in this statement of financial position of company. Balance sheet is the net projection of the actual financial position associated with the respective financial statement. Cash flow statement Cash flow statement is another statement associated with the financial records of company. This is a presentation of all the cash nature of inflow as well outflow that business venture is consider in the respective financial year (Durdyev, Eng and Cheng, 2018). This statement is more like emphasising the liquidity situation or position of the business venture belong to any particular financial year. The role of cash flow statement is very important in order to depict about the actual liquidity position of the business entity. The above projected financial statement are among the major financial statement and record associated with the business venture. The financial professional and management of the Marks and Spencer Company identify the net financial position or situation of company wit support of all these financial record and statement associated with the business entity. All these financial record associate with the company that show the net or ultimate outcome in financial term company could grab by channelising all different business activities.
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