Individual Report

Report to compare two separate businesses

BUSINESS AND
MANAGEMENT
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1) Introduction of companies...............................................................................................3
TASK 2............................................................................................................................................4
P2) Examine of external environment....................................................................................4
TASK 3............................................................................................................................................7
P3) Organisational structure...................................................................................................7
TASK 4............................................................................................................................................8
P4) Organisational performance.............................................................................................8
TASK 5............................................................................................................................................8
P5) Comparison and conclusion.............................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Business and management refers to the disciplines that include planning, organizing,
directing and controlling of the various types of business departments and operations. For the
business management there are more several factors that has to be in considered for the smooth
running of the business at a market place. It also includes budget analysis to know about the
ways for cutting cost. With this there is also a understanding in the field of accounting,
marketing and administrative procedures that are in order to run the business effectively. This
also determines the various tools and techniques for the analysis of internal and external
environment. This report is based on the marks and spencer company multinational retailer with
the headquarter in London. This company deals in clothing, home product and food product.
This report considered information about the company’s current condition with the help of swot
analysis, examine of external environment and describe organization structure by using
appropriate terminology. Furthermore includes financial and non-financial performance(Harmon,
2019).
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MAIN BODY
TASK 1
P1) Introduction of companies
Marks and Spencer commonly abbreviated as M&S it is the multinational retailing
company with the headquarter in London that deals in a clothing, home product and food
product. It has a 959 stores across the UK in which 615 store that only sale to product. This also
operates in online food delivery services.
Zara is a Spanish based multinational retailing company that deals fast fashion including
clothing, accessories, shoes, swimwear, beauty product and perfumes. Zara stated as a world’s
largest apparel retailer as it manages up to 20 clothing collection in a year.
SWOT analysis
Strength
 M&S has a strong offering in the
product line as per the latest industry
trend and also have strong e-commerce
infrastructure and focus on the
enhancement of the customer
experience.
 Zara is has its own designed team with
over 700 designers that transform
customers desires into designs. It has
strong supply chain as it deliver to any
location in the world within 48 hours.
Weakness
 M&S has a poor financial performance
as it does focus major on the
accounting department. This company
is too much dependent on the UK
market as according to the other
market area.
 Zara is weak in the balance of
sustainability of the product. And due
to pandemic situation sell of the
product reduces at a physical
stores(King and Brooks, 2016)
Opportunities
 M&S has opportunity to expand in the
other geographical area in order to
expand the market area and share. This
company can also be focus on the
Threat
 M&S can face the challenges due the
stiff compaction in the food market of
UK. And fast fashion changing can also
effect the sales and revenue of the
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reshaping of the clothing and other
product line.
 Zara has opportunity to add more
product line in the future and also can
increase the targeted customer
segments that support the growth of the
company.
company
 Zara can face the threats from the
competitors as fast industry has the
largest number of companies one of the
competitor of Zara is Shein which
purely online based retailer.
TASK 2
P2) Examine of external environment
External environment refers to the macro environment in which companies operates. There are
various factor which directly or indirectly influence the companies effectiveness
PESTLE analysis
Political factor
This is factor includes rules and regulation of
the government and political stability. UK has
a adequate political stability which always a
advantage for the H&S company recently due
to brexit there is complication in the trade
policy that effects the smooth running of the
organisation.
Economical factor
This factor id connected with the good,
services and money. This is consist of the
willingness of the consumer to buy a product.
H&M offers the range in a reasonable prices
that provides the advantage to the company to
increase its sales revenue.
Social factor
This aspect is related to friends, family and
social group of an individual that influence the
attitude and opinion of the person(Maylor,
Blackmon and Huemann, 2016).H&M company
has good brand recognition that has a good
social impact but it’s also received flaks that
determines the non-trendy stores, as now
Technological factor
This is refers to the all externally generated
changes in the technologies that is use by the
company in its procedures. UK always been
forward in the technology up gradations that
provides positive impact on the H&M
manufacturing process but it also get obsolete
easily and needs high cost in to implement new
technology.
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companies also use attractive and unique
outlets in order to attract the customers.
Legal factor
This is defines as the law and decision made by
the government. UK has adequate employment
law that has to be followed by the companies
that attract the skilled and knowledgeable
employees towards the company.
Environmental factor
This is consist of the food, sound, light, natural
calamities and pollutants that effects the living
organism. Government provides the
compensation and subsidy to the companies
who are following the environment safety
rules. This advantage can taken by the
respective firm in order to decrease the internal
cost.
Porters five force model
This model is used to analyse the environment of industry in which Company operates. It
includes various factors that effects the smooth running of the organisation.
Bargaining power of buyers: this refers to the distribution of the product to the customers and
their power to bargain in a terms of quality and prices. This depends on the differentiation of the
product and customer willing to buy. In the context of the respective company bargaining power
is moderate as now consumers are moving towards the brand loyalty, consumers go for the
product that satisfy their needs and also that fairly priced. (Mendling, and. et. al 2017)
Bargaining power of suppliers: this looks towards the number of suppliers in the
industry which are offering the raw materials to the companies. Here risk is involved when most
of the firms depend upon the few suppliers. Here supplier power is low as there are suppliers
who are offering the homogeneous products as per the customer’s needs so company can easily
switch to another supplier.
Threat of new entry: This section is considered the barriers and hurdle that a new
entrance face entering into the industry. Here barriers to entry are high to block the new firms in
a fast fashion industry. As H&M already enjoys the major economy scale as well as the large
network of supplying products as it is the multinational brand. This competitive advantage leads
to a great challenge for the new entries.
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Threat of substitutes: this area focus on the other products that could replace the product
that is being offered in the industry. This factor includes the buyers propensity to substitute the
product and opportunity cost, here threat of substitute is very low as no substitute product is
available that can replace the clothing.
Competitive rivalry: this is defined as the competition available within the industry. This degree
measures through the company’s available in a same industry. Here competitive rivalry is
moderate as there are so many companies that are dealing in the same clothing industry but firm
like H&M Company is already enjoying high economy scale and also has the brand recognition
in the world(Myers, 2019).
TASK 3
P3) Organisational structure
Organisational structure is the framework that is used to outlines the certain activities and
directed in order to achieve the objectives and goals of the organisation. It defines the manner in
which roles, power, authority and duties are going to assigned to the employees and also depicts
that how information is going to be flow between the different levels of hierarchy in the
organisation,
Organisation structure terminologies:
Marks and Spencer’s follows a flat organisational structure in the management. This implies that
there is a less gap between the administration of the company and the employees who are
working as a front line executives who are in direct contact with the customers. This structure is
implemented because of the purpose of developing decision making ability among the workers
which helps them to grow and enhance their skills. Due to the implementation of this strategy the
responsibility of decision making has been increased on individual employee of an organisation
because of this they have to take quick decisions regarding business operations. (Nadarajah and
Kadir, 2016)
 Zara follows a hierarchical flow of subordination of function department. In this structure
there are certain levels of authority which clearly mentions the flow of information like
who has to report to whom. This model helps in reducing confusion among the
employees regarding reporting. Similarly, the task or duties to be performed are also
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flows in the same way, the system is well designed to assign work as per the knowledge
and experiences which helps the organisation to work more effectively which helps in
increasing the revenue of the organisation. Moreover, this also helps in reducing the
conflicts among the employees which results in reduction of unnecessary wastage of time
which ultimately increases the productivity
TASK 4
P4) Organisational performance
Organisational performance refers to the getting work done within the organisational to achieve
the goals and objectives. This encompasses 3 specific area marketing based performance,
financial or accounting performance and operational performance.
For the better performance management M&S align the team work with the effective
corporate strategy and also motivates and influence them in work hard for the accomplishment of
the goals also monitor and measure the performance in or order to improve them. Financial
performance of the company is related with the measuring revenue, resource allotted to the
departments, purchase of raw material, maintaining accounts on the daily basis etc. And non-
financial performance related to the manufacturing process, planning and formulation of
strategies and training and development programme etc(Rahimi, Møller. and Hvam, 2016).
Every department are interrelated to each where performance of the one department influences
the other’s performance. It has been seen that financial performance of the respective company is
weak.
Zara also has various performances of the departments that are being performed by the
employees. A apparel industry is one of the fast changing industry where it hard to predict the
market shifts and requirements supplies and raw material. to overcome this Zara has a unique
supply chain that is performed by the company in a effective manner in order to make easy for
the company to get the changes according the dynamic environment and also make them
available at the customer place. This provides the competitive advantage to the company and
positive impact on the performance of the other departments of the organisation. (Torabi, Giahi
and Sahebjamnia, 2016)
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TASK 5
P5) Comparison and conclusion
 M&S is the multinational brand that specialise in selling clothing, home products and
food products. This company has been a enjoying the high economy scale as and large
supply chain as it operates in the different countries. But this is highly depends on the UK
market and on the physical stores. External environment provides favourable conditions
to its operations as it analyse the environment properly and formulate the strategy
accordingly. In addition to this, it also received flaks that determine the non-trendy stores
as now customers also get attract through the unique and attractive outlets. It uses
divisional and team structure to circulate the information and to assign duties and roles.
 ZARA is Spanish based multinational clothing brand; it enjoys the high brand recognition
in all over the world. This provides clothes according to the fast changes in the trends. As
this have its own designing team with over 70 designers that design the desires of the
customers. But this is also a weakness of the company as it does not have the
sustainability in the trends. That sometimes effect negatively on the sales of the products.
This use the functional structure within the organisation hierarchy which reduces the
complexity and makes the functioning of the departments easy and simple(Vom Brocke
and Mendling, 2018).
It has been evaluated that both companies are well in their operations and functioning, both
has the brand recognition in all over world and enjoys the large economy scale. In addition to
this Zara is more focused and updated then M&S Company
CONCLUSION
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From the above analysis it has been concluded that there are various internal and external
factors in which company operates and has a major impact on the functioning of the
organisation. External environment includes both country and industry in which company sell it
products and services. Furthermore it includes that there are various organisational structures that
are used by the company according to the management of the firm. That provides support in to
the smooth running of the operations in the various departments. This report also analyse the
organisational performances that is being performed by the human resource of the firm to
achieve the desired goals and objectives effectively.
REFERENCES
Books and Journals
Harmon, P., 2019. Business process change: a business process management guide for managers and
process professionals. Morgan Kaufmann.
King, N. and Brooks, J.M., 2016. Template analysis for business and management students. Sage.
Maylor, H., Blackmon, K. and Huemann, M., 2016. Researching business and management. Macmillan
International Higher Education.
Mendling, J., Baesens, B., Bernstein, A. and Fellmann, M., 2017. Challenges of smart business process
management: An introduction to the special issue.
Myers, M.D., 2019. Qualitative research in business and management. Sage Publications Limited.
Nadarajah, D. and Kadir, S.L.S.A., 2016. Measuring Business Process Management using business
process orientation and process improvement initiatives. Business process management
journal.
Rahimi, F., Møller, C. and Hvam, L., 2016. Business process management and IT management: The
missing integration. International Journal of Information Management. 36(1). pp.142-154.
Torabi, S.A., Giahi, R. and Sahebjamnia, N., 2016. An enhanced risk assessment framework for business
continuity management systems. Safety science, 89, pp.201-218.
Vom Brocke, J. and Mendling, J., 2018. Business process management cases. Digital innovation and
business transformation in practice.
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