Business Culture and Natural Environment of Marks and Spencer

This document discusses the business culture and natural environment that shape the behavior of Marks and Spencer. It explores the impact of economic and non-economic factors on the organization. The document also provides examples of SWOT and Pestle analysis.

Contemporary Business
Environment
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Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
Discuss about the business culture, natural environment that shape the behaviour of Marks and
Spencer........................................................................................................................................4
Describe the SWOT and Pestle analysis with example...............................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Contemporary Business environment is a dynamic, competitive and challenging in global
marketplace. It is because of its ever-changing business policies and procedures. The business
world always dominated with different problem that hinder the program of enterprise. In most of
cases, enterprise challenges occur due to culture or environment. in this way, it will require for
applying interdisciplinary approaches as to resolve any type of workplace issues. It will be
understanding the enterprise environment that organization operates on.
There are various internal and external factors exists within organization that affects on
business. So, as it will use different theories to control or manage process and also overcome
enterprise problems. To fully appreciate contemporary business environment that conceive as a
subsystem operating into macrosystem. The nature of interaction between business and its
environment that represents the managers with threats and opportunities (Boone and et.al., 2019).
It will potential of business failure and success. Generally, contemporary business and their
environment is important part of organization and always concern about the complex set of
interaction forces in culture or environment. In this way, it sustains the relationship in context of
enterprise growth, survival as well as prosperity.
Business doesn’t operate in simple vacuum but it will root in large environment through
input as well as output interfaces. It directly influences on dynamic environment that how they
operate and whether they will achieve their significant goals. In most of cases, the external
enterprise environment will be composed of several outside enterprises and forces different sub-
environments such as social, competitive, political, global, demographic and technological.
These are creating a unique challenges, threats and opportunities for businesses. In the
organization, manager have a deal of control or maintain internal business environment which
mainly covered in day to day decision-making. This will help for identifying suitable resources
and skills, which may be satisfied existing clients.
Furthermore, The External environment situation directly affects on the business and beyond
the management control and changing constantly. There will be no enterprise powerful with
create major changes in its external and internal environment. thus, organization is primarily to
adopt new things that supports for increasing business performance and efficiency. In some
conditions, an organization will be influenced external process through strategic planning which
help for motivating the business owner to improve business activities. The report will discuss
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about the business culture, natural environment that shape behaviour of organization in global
marketplace. Furthermore, it will implement the Pestle and SWOT analysis for identifying
strength and weakness. In this way, it will help for improving business culture or environment in
proper manner.
TASK 1
Discuss the business culture, natural environment that shape the behaviour of Marks and
Spencer.
A business environment and culture have a great impact on the overall organizational
behaviour. It can be divided into two different ways: non-economic and economic. The
economic environment may include the economic system, policies, procedures and condition.
Another way, Non-economic may include demographical, Social, technological, legal and
political environment. In most of cases, it also considered the ecological or geographical factors
that always influence overall business activities (Khalili, Abbadi and Ismail, 2019). In Marks and
Spencer, employee at workplace talk about the business culture and it become mysterious that
characterise qualities of working environment. it often considered, whether the staff members are
conformable in environment. Sometimes, it is very difficult to defined but it can be identified
review from employees. Marks and Spencer, with a large workforce that will not exits in future.
In 21 century, it only knowledge based where managers not spending so much time on paper-
shuffling and pushing. The advancement of information technology will take care of entire work
and collect information in proper format (You, Dal and Amankwah-Amoah, 2019). It has found
that linear relationship between managers and employees flowing down because of culture or
environment. It directly affects on the behaviour of employee where how they can deal business
situation or condition.
Currently, the business economic environment is considered as mixture of international
as well as national environments. It is becoming highly complex and not easy to understand
them. In this way, it is reason of M&S operating in same economic environment often take
important decision in business development. so, as it directly affects on the organizational
culture or environment (Nikitina and Lapiņa, 2019). M&S business has economic relationship
with capital market and government which always influence latest trends or entire structure of
economy. But at that movement, M&S collectively can do to make an effective working culture
by implementing economic policies and procedures. It is useful for M&S to improve relationship
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with staff members. On the other hand, economic conditions are considered as forces in economy
such as enterprise cycle, client behaviour that always influence abilities of M&S to compete with
competitive level. Low income also another reason for low demand of product in marketplace. in
this way, it has increased the pressure on staff members for reducing profitability and
productivity. Therefore, it unable to balance or maintain the economic environment or culture
within organization.
Non-economic environment has strongly influence on the behaviour of Marks and
Spencer business. It consists of various factors that applicable in business activities. The social
environment can be consisting of mobility, nature of social firm, development and class structure
(Raman, Garg and Thapliyal, 2019). In most of cases, it depends on the class structure as per
society where what are occupation of people and their own income level. It directly influences
the non-economic environment within M&S.
The business culture and environment influence organization in context of behaviour that has
been rapidly changing drastically (Craft, 2018). After revolution of industries, corporations and
organizations that were nothing but focused on increasing productivity or profitability in
marketplace. For Example- TESCO is based on multinational organization in UK which has
rapidly increasing progress in global market with the help of information technology. There is
huge business want to remain maintain the position in global marketplace. that’s why, Marks and
Spencer have tried to enter into different location across the world. In terms of organizational
behaviour, Marks and Spencer behave differently than another firm at workplace. They provide
the social settings because of entire business.
The business culture plays an important role within every organization whether big or
small and thus is the integral part which shapes the overall performance of the company.
Business culture basically is the mixture of the various beliefs and values which employees
within organization have (Wolf and Alwan, 2019). As M&S is highly diverse organization which
consist of employees having different background, values cultures, perceptions etc. thus it
becomes highly essential to understand that how this diverse culture eventually transforms the
operations and behaviour of M&S. Talking of the business culture which prevails within M&S, it
is highly customer as well as employees driven. This culture is mainly driven by the diversity
within organization and the company. M&S mainly focusses on the collaborative as well as team
culture for fostering the knowledge as well as creativity within employees. Its great business
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culture affects the working as well as performance of the employees to a great extent. The
organizational culture of M&S have been rooted in collaborative experience as well as practice
which reflects its great performance in the market and thus their value for cultural diversity has
made this organization as the renowned entity (Ivanova-Gongne and Torkkeli, 2018). Due to the
prevalence of team and collaborative culture within M&S, employees are more likely to
understand the cultures and beliefs of other team members and thus helps them to increase their
skills and abilities. The organizational culture of M&S is highly imperative and thus besides
having their main focus on the collaborative working environment, their culture us highly
technology-oriented which leads to the creation of positive competition among employees. As
the organization have become highly tech-savvy thus this has reduced the overall pressure upon
employees and have helped them to increase their productivity by smartly performing their work.
Along with this, the collaborative culture has enabled M&S to sustain their competitive position
in market and give a tough competition to their competitors like TESCO.
As the business environment also consist of non-economic environment in addition to
economic environment, non-economic environment mainly encompasses natural environment
like various geographical and climatic factors. This natural environment have also driven M&S
in different direction and has revolutionized their entire operations (Vaduva and et.al.,2016). The
most important factor of natural environment which is climate affects M&S to a high extent. For
example- As Marks & Spencer have its headquarter in UK where climatic conditions are
infrequent and this has affected their supply chain. The extreme weather conditions mainly
disrupt their supply chain and thus it becomes highly challenging for them to get raw material as
well as resources. The extreme drought as well as weather condition makes it difficult for M&S
to arrange the raw material and there remains the shortage of crop which is being used for
apparel products. Thus, climatic conditions have a strong bearing on behaviour and operations of
M&S. Besides this, another factor of natural environment which geographical location poses a
great impact on the behaviour as well as operations of M&S. The location plays an important
role in the productivity as well as performance of the organization and therefore is one of the
major factor of natural environment. As M&S is located in highly developed countries and at the
location where the access of customers become easy thus it affects the company in positive way.
When the outlet of M&S is located at such a place where customers can easily travel hassle free
and get all the facilities like parking, transport then the number of customers eventually
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increases. On the other hand, when organization is located at the place for which people have to
cover long trips then they tend to avoid going to the outlet. This eventually reduces the overall
customer base for company. Thus, location plays a highly essential role in overall performance
of the organization (Bolcas and Ionescu, 2019).
Describe the SWOT and Pestle analysis with example.
SWOT analysis is term that can identify weakness, strength, opportunities and threat in
the existing organization. On the other hand, pestle analysis is based on framework which may
influence economic, social, legal and environment impacts on the business. These are considered
as external factors for recognized into specific manner.
Pestle analysis of M&S
Political: There are some policies and political factors which is providing several
opportunities to Marks and Spencer such as free trade policies as it has approximate 1500
overseas stores. On the other hand, it can also be said that due to Brexit it will face several
problems. Brexit is increasing its production cost which can lower its profit margin. Some
changes in taxation policy also affecting it in negative manner.
Economic: It is stated that increment in inflation rate of UK economy is affecting its
ways of performing activities. On the other hand, UK's monetary as well as Fiscal policy is now
maintaining and managing in a proper way because now the Government of the UK has strong
finances. Financial crisis is one of the economic factors which is affecting Marks & Spencer's
negatively because it is decreasing demand for qualitative products (PESTLE Analysis of Marks
and Spencer, 2019.).
Social: It is stated that people of UK are becoming health conscious and that is why they
prefer high quality as well as organic food products. Due to changes in needs of customers for
clothing and food put pressure on company to make changes its policies and adapt situations. On
the other hand, it is a popular brand which resist customers to switch their shop and it is the
biggest opportunity for Marks and Spencer.
Technological: It is stated that M&S has announced technology transformational
programme which will make it able to become digital based business. It will also help it out in
satisfying needs of different segment and customers. On the other hand increased use of
technology is increasing competition which can have negative impacts on it (Nandonde, 2019).
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Legal: It is stated that some employees of Marks and Spencer's file a lawsuit against the
company due to not protecting workers from potential risk of exposure to asbestos. It has been
also involved in many other legal disputes which decreased its image. But now it conducts
training session in order to keep itself aware about changes in current laws.
Environmental: It can be said that Marks and Spencer's is a luxury brand and operates
various store so, it is important for it to follow all rules regarding environment. It has promoted a
concept considered as a sustainable retail and it is the main effective strategy of Marks and
Spencer's. It helps it out in attracting customers and improving its image.
So, from the above it can be said that all these external factors have both positive and
negative impacts on it performance which it needs to considered and solved.
SWOT analysis of M&S
Strength
 One of the main strength of Marks & Spencer is it operates in number of countries as
well as has international presence.
 It offers variety of products at one place which attract wider range of customers.
 It has great E-commerce infrastructure which makes it somehow able to being in a
competition.
Weakness
 It is stated that Marks & Spencer has poor financial stability which is the main weakness.
 Many of its products are not innovative and trendy by which people think that it does not
cater for young as well as teenagers’ people. So, public thinking and this perception is
other weakness.
Opportunities
 International expansion can give it opportunity to attract customers to the great extent and
increase its sales (SWOT Analysis of Marks and Spencer, 2017).
 It uses advanced technology which gives its several online opportunities.
Threat
 Increased competition and strong players in this industry is one of the biggest threats
which can lower its revenue and sales.
 Changing needs of customers for food and clothing is other threat which push pressure on
Sainsbury's to make changes in policies and invest in technology.
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CONCLUSION
It has been summarized that an effective business environment plays an important and
thus impacts the organization in both positive as well as negative way. The business environment
When the business environment of an organization is highly competitive as well as challenging
then this sometimes leads to the negative competition among employees and thus affects their
productivity. Within the business environment, the most important as well as significant aspect is
the business culture as well as natural environment.
Business culture of Marks and Spencer is highly technology oriented and company focus
on collaborative working practices. M&S promotes teamwork and through this, foster the
performance and productivity of employees. This also helps the employees to understand the
cross-cultural differences and help them to work towards each other experience. On the other
hand, natural environment also plays an important role for example- due to the adverse weather
conditions, organization mainly faces problem in acquiring the raw material as well as good
which is being necessary for producing the product. Besides this, another aspect of business
environment includes external as well as internal environment. External environment mainly
helps the organization to assess the external factors which impacts their overall operations and
these include political, legal, economical environmental, socio-cultural factors. Like for example
where on one hand the increase in interest rates poses a negative impact of organization as it
becomes challenging for them to take loans from banks on the other hand, decrease in tax rate
affects the organization in positive way because due to decrease in tax rate, import and export
becomes cost effective. Thus, external environment which is macro environment affects the
functioning as well as operations of the company to a great extent.
The various factors which impacts the operations of the organization have strong bearing
on the internal environment too and thus eventually affects the overall business environment.
The business environment not only consist of the external environment but also addresses
internal environment of the organization. The internal environment mainly helps the organization
to analyse their strength, weakness, capability along with the threats as well as opportunities
available to organization. The most effective framework which helps then organization to
evaluate their capabilities is SWOT analysis. Through the help of this framework, organization is
able to analyse that what are their weakness, strength and what are the opportunities as well as
threats that might impact them. Like the major strength of the company is its operations in large
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number of countries while weakness is poor financial performance and stability. Opportunity is
international expansion for attracting the customers from wide geographies while threat is the
strong presence of the competitors in market which might hinder the position of company in
market.
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REFERENCES
Book and Journals
Bolcas, C. and Ionescu, V.C., 2019. Organization Culture. Models and Approaches. Manager
Journal.30(1). pp.163-171.
Boone, L.E. and et.al., 2019. Contemporary business. John Wiley & Sons.
Craft, J.L., 2018. Common thread: The impact of mission on ethical business culture. A case
study. Journal of Business Ethics.149(1). pp.127-145.
Ivanova-Gongne, M. and Torkkeli, L., 2018. No manager is an island: culture in sensemaking of
business networking. Journal of Business & Industrial Marketing.
Khalili, A., Abbadi, A. and Ismail, M.Y., 2019. Perspective of social media as an organisational
KM tool: contemporary literature review. International Journal of Knowledge and
Learning. 13(1). pp.10-24.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence, 38(4), pp.54-61.
Nikitina, T. and Lapiņa, I., 2019. Creating and managing knowledge towards managerial
competence development in contemporary business environment. Knowledge
Management Research & Practice. 17(1). pp.96-107.
Raman, G.V., Garg, S. and Thapliyal, S., 2019. Integrative live case: A contemporary business
ethics pedagogy. Journal of Business Ethics. 155(4). pp.1009-1032.
Vaduva, S and et.al.,2016. Moral leadership in business: towards a business culture of integrity.
Switzerland: Springer.
Wolf, T. and Alwan, M., 2019. Business culture impact upon the individual involving in the
international business negotiation. Marketing.32(4). pp.485-486.
You, K., Dal Bianco, S. and Amankwah-Amoah, J., 2019. Bridging technology divide to
improve business environment: Insights from African nations. Journal of Business
Research. 97. pp.268-280.
Online
SWOT Analysis of Marks and Spencer. 2017. [Online]. Available through
<https://www.howandwhat.net/swot-analysis-marks-spencer-marks-spencer-swot-
analysis/>
PESTLE Analysis of Marks and Spencer. 2019. [Online]. Available through
<https://www.marketingtutor.net/pestle-analysis-of-marks-and-spencer/>
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