Impact of Globalization on Business

This assignment requires students to explore the multifaceted impact of globalization on businesses. It necessitates an in-depth analysis of how various factors such as economic integration, political linkages, social trends, and technological advancements influence business operations and performance. Students need to examine both positive and negative consequences of globalization for businesses across different industries and geographies.

Business and Business Environment
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Table of Contents
INTRODUCTION ...............................................................................................................................3
1.2 Relationship between different organizational functions and how they link to organizational
objectives and structure...................................................................................................................3
TASK 2 ................................................................................................................................................5
1 Positive and negative impacts of macro environment upon business operations........................5
2.2 Internal and external analysis for the organization in order to strength and weakness and how
they influence the decision making process....................................................................................6
3. The strength and weakness of the Marks and Spencer can be analysed through SWOT ...........7
Conclusion............................................................................................................................................8
REFERENCES.....................................................................................................................................9
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INTRODUCTION
Business refers to an activity of exchanging goods and services. Environment of transaction
products involves internal and external factors as management of supplying items and customers,
micro and macro atmosphere of any organization. It aims to optimum utilization of resources as
well proper fund management to achieve highest profit with customer satisfaction. This report is
based on Marks & Spencer retail company of UK and understanding aspects of environmental
factors and its effect on business entity. The company is one of the largest retail core shops provides
facilities of clothing and grocery items. It produces high quality products and expanses retail
industry at large scale. Therefore, the report will be able to explain various factors emphasis on
Marks & Spencer clothing and grocery products and impact of efficiency and effectiveness that how
company sustain its position in UK market. The report on the business entity is helpful to express
internal and external analysis of market environment. The strength and weakness of the retail
industry as similar ideas to overcome weakness would be understand here.
TASK 1
1.2 Relationship between different organizational functions and how they link to organizational
objectives and structure
Marks & Spencer is one of the largest retail industry which produces goods and services of
clothing and grocery items. It is wide spread organization possesses various departments who
handles various functions of the company. These departments are Finance, HR, Research &
Development department and other sectors of the entity.
 Finance department:- Finance department of Marks & Spencer involves activities of funds
and management of sources and investments in monetary terms. It is helpful to analysing
economic condition of the retail industry. It effects other departments of the firm as account
department, sales, research and development department. It is beneficial to generating ideas
for activities to implement planning strategy and expansion of business.
Finance department has connection with Marks & Spencer industry to achieve target of economic
development as well analysing financial position of retail company to create effectiveness in UK
market and makes position in global environment of clothing and grocery products.
 Human resource management department:- Private company as Marks & Spencer has
human resource management department considers human as resource of the
company(Reinalda., 2013). It focuses on employee better performance and consumer
satisfaction. It provides training and development facilities and also motivates its workers
financially through incentives and bonus facilities. Therefore, employees perform better to
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gain target. Research department creates link with HR department considers helpful to
analyse consumer demand and employee feedback and attitude towards getting goals
(Belás., 2015).
Thus, HR department plays great role to meet objectives of Marks & Spencer. To achieve better
performance and effectiveness of company, HR links with other department. It is useful for
recognizing ideas and action planning for highly growth of retail industry.
 Research and development department:- This department includes activity of market
research of products and development as promotion of clothing and grocery items to sustain
its position in UK market. Development of product consists by advertisement and take
advantage of feedback from buyers occurs opinion of consumers in highly competitive
market (Arnold, N., 2015).
Research and development department connects with other departments as marketing and sales
department (Beynon., D., 2013). It provides idea and analysis of market activity of product and
product's value. On behalf of research, Marks & Spencer sets planning strategy to implement
activities in UK market as similar in international market.
 Production and Operation department:- Production department of Marks and Spencer
makes decisions for quantity and quality addition in products (Pancoska. and Carr, B.,
2014). Production of clothing and grocery items refers to supply goods and services in
systematic manner. By research and financial position analysing, company generates
strategy to effective production and operations of grocery items.
Therefore, production and operation department is helpful to gain target of optimum utilization of
resources in effective and efficient manner. It considers a connection with other departments of the
entity. For instance, it gives idea to other department for deciding planning framework to reach out
the determined aims of the company.
Therefore, above mentioned all departments plays key role to make structure of the organization.
Several structures come to know by connecting departments with each other. Functional structure
obtains functions of Marks & Spencer indicates helpful for effectiveness and systematic approach
of transaction of goods and services. It also provides divisional structure by which expanded
organization segments into different stores and spread stores and branches globally. Segmentation
remains helpful for facilitating production and distribution facility for consumer comfortability to
reach out the products in convenient way (Cross, F. and Miller, R., 2014).
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TASK 2
1 Positive and negative impacts of macro environment upon business operations
Marks & Spencer retail industry of UK creates environment at grand level which presents its
effectiveness in business market. Macro environmental factors are beyond control on which
company can't control but they impacts on the entity in both manner positive and negative. These
factors involves political, economic, socio-culture, technological and legal environments. Political environment:- Political environment includes factors as stability of political
factors and attitude towards political parties of the organization (Snieška., 2015). It effects
on tax policy and taxations, government involvement factors. These factors impacts on firm
in positive and negative ways. Decrease in tax rates effects industry's effectiveness, while
increase in tax rate or interest rate affects sourcing power of the retail industry. Government
intervention effects company's efficiency in both ways remains dependent on policy rules. Economic factors:- Economic factors of Marks & Spencer analyses monetary statement.
Financial situations are recognized by exchange rates, cost of raw material and product
pricing (Snieška., 2015). Attraction of customers towards goods and services depends on
product pricing and quality involves in clothing and grocery items. Inflation rates and
unemployment conditions included in economic environment of any entity. On which
Marks & Spencer has no control over. Therefore, monetary structure organizes which
presents company's position in UK market same as in international market. Socio-culture factors:- These factors involves people interest and demographic tools as
age, gender, population growth rates and also classes of societies and their lifestyles.
Consumer attraction regarding choice and perception effects productivity and effectiveness
of products. Lifestyles varies people to people, therefore demand and production including
in social and culture environment effects Marks & Spencer business organization.
 Technological factors:- Technologies changes time to time (Wetherly. and Otter., 2014). To
adopt new techniques to provide different and featured products, Marks & Spencer feels
difficulty to accept dynamics through fluctuations in information and communication
facilities. Technical changes also involves distribution and raw material qualities. Fund
allocation also effects on business organization's effectiveness. Thus, due to changes in
technologies, either good quality products produced or firm get experience of fluctuation in
market position.
 Legal factors:- these factors involves employment laws and human rights. To focus on
consumer protection and provide them safety and society beneficial products, Marks &
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Spencer has to follow legal restriction on money supply. There is no guarantee to
fluctuations in legal binding of laws. Therefore, these factors are beyond control. It reflects
positive and negative effect on the company's position in transaction of goods and services
facilities.
2.2 Internal and external analysis for the organization in order to strength and weakness and how
they influence the decision making process
Analysis of management and factors influencing business organizations refers to internal
and external analysis of Marks & Spencer. It presents strength and weakness of the entity influences
planning strategy of the retail industry.
Strength
High quality:- The retail business organization concentrates on quality products. It tries to
provide qualitative and fresh grocery items involves food items, fresh fruits, vegetables and branded
clothing wears. Therefore, it remains strength of Marks & Spencer through producing high featured
goods and services.
Customer services:- It is an important factor of the organization to facilitate good customer
services. Customer seems to be satisfied with products and increasing in demand for products. It is
helpful to establish good relations between consumers and the firm.
Manager and training:- To achieve high performance of Marks & Spencer, the company
engages good management facilities and training to gain better performance of employees.
Therefore, effectiveness of organization seems to be improved at high level.
Weakness
Stock control:- Problem occurs in online marketing facilities of Marks & Spencer.
Customers complaints about delivery of products timing and distribution. Therefore, an imbalance
seems to mismanagement of products distribution.
Waste store space:- Marks & Spencer has wide area expansion of business market. It opens
many stores to keep stock. But some stores remains be wastage and useless. Therefore, the
weakness impacts inefficiency of business market.
Mismanagement of clothing segmentation:- Clothing segmentation of women and men
wear considers to be mismanagement. Consumers complaints that they face difficulty to find out
clothes from fixed wings. There is no proper wing management in Marks & Spencer for clothing
segmentation.
External analysis of Marks & Spencer
Opportunity:- External analysis of the organization involves factors of improving the
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clothing range offers and focusing on ethical and safety foods. By obtain opportunity to segment
clothes in proper manner, Marks & Spencer can increase its efficiency in UK market and in
international market.
Threats:- Threats are external analysis of Marks & Spencer involves disputes between
shareholders and executives of the company. Imbalanced implementation of perfect strategy. The
threat also obtained through newly appointed management system.
Thus, internal and external analysis of Marks & Spencer involves SWOT refers to strength,
weakness as internal and opportunity and threats as external analysis of the retail industry. It leads
to management planning for further activities of the organization.
3. The strength and weakness of the Marks and Spencer can be analysed through SWOT
Strength: the main strength of the marks and Spencer is that is provide a high quality of
services to its customer. Further it solve all the query of its customer on time and not break their
trust. Is staff is highly skilled and manage all work in a systematic manner.
Weakness; it competitor sell same type of products and they give tough competition to the
Marks and Spencer. Further its online presence is also weak. Price of products is very high so
medium and lower class people cannot afford it.
Opportunity; Marks and Spencer have a opportunity to create a product which are different
form its competitor. It can also used new technology for selling its products all over the world.
Moreover it can expand it business in china.
Threats: policy mode by government is the biggest threat which affects its profitability and
sales. It also have a conflict with suppliers which create barriers in receiving a raw material on time.
With the changes period of time customer demand also changes it affect the sale of company.
For Marks and Spencer TWOS matrix is as follows
Threats
their is many challenges which company is
facing such as competition with other retail
sector, and high price etc. Taste and preferences
of consumer changes with the changes period of
time which affects the sale and profitability. It
become challenge for the company to supply
products according to the need and demand of
people
Opportunities:
Marks and Spencer have opportunity to expand
it business all over the world in china and India.
There is big consumer base in a Asian marker so
company can sell products in those country.
Further it can also make a product which is
unique form its competitor. It can sale product of
all range so that medium class people also can
afford it easily.
Weaknesses
its weakness is that it have low online presence .
It also make a product which are same like its
competitor. Same product sold by its competitor
at reasonable price
Strength
It offer a superior quality of its products to its
customer which is mostly liked by people. It
cover a large area of market which help in
achieving organizational objective on time.
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SO strategy; marks and Spencer can launch a product which have some unique attributes. Company
can also conduct a research and development program so that is can understand the taste of
consumer.
ST strategy: it can reduce the expenses in production activity which help in lowering the price of
products.
WO strategy: It can expand it business in different geographical area where demand is high and of
products and competitor are less.
WT strategy: it can advertise it products through social networking sites which help in creating a
awareness of products among people.
External factor is interrelated with a weakness and strength of the company. Its internal weakness
can be improved if company adopt some new strategy (How globalization sparked
Entrepreneurship in the Developing World: The impact of formal Economic and political linkages,
2016). The government policy and high taxation ate is affecting the marks and Spencer profitability.
For this purpose company can easily sell its product to a customer at discount price. Moreover
company is need to adopt new technology which help in reducing the cost of the production and it
can sell its products through a online websites. By identified the trend of company it can easily
make a products according to the taste of customer.
CONCLUSION
Form the above report it can be concluded that different organization have different type of
function and it achieved in a different manner. The structure of company is related with its function
all are dependent on each other. There are many macro facto which affect the organization such as
political factor, technological factor etc. further it can be concluded that company can easily
identify its strength and weakness by a SWOT analysis. Micro factor such as competitor, consumer,
and employee affect the business decision. External factor of the organization are interrelated with
the strength and weakness of the company.
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REFERENCES
Books and Journals
Arnold, Nell., 2015.Macro Environment Analysis of Youth At Risk. In Proceedings of the 2000
Academy of Marketing Science (AMS) Annual Conference. 7(4). pp. 158-170.
Belás., 2015. The business environment of small and medium-sized enterprises in selected regions
of the Czech Republic and Slovakia. E+ M Ekonomie a Management. 95(3). pp. 34-67.
Beynon-Davies, P., 2013. Business information systems. Palgrave Macmillan.
Cousins, J.B. And et.al., 2014. Government and voluntary sector differences in organizational
capacity to do and use evaluation. Evaluation and program planning. 44(2). pp. 1-13.
Cross, F.B. and Miller, R.L., 2014. The legal environment of business: Text and cases. Cengage
Learning.
Khilji., 2015. "Incorporating the macro view in global talent management." Human Resource
Management Review. 25(3). pp. 236-248.
Lewis, D., 2013. International perspectives on voluntary action: reshaping the third sector.
Routledge.
Pancoska, P. and Carr, B.I., 2014. Macro-and micro-environmental factors in clinical hepatocellular
cancer. In Seminars in oncology. 44(4). pp. 185-194.
Reinalda, B., 2013. Routledge handbook of international organization. Routledge.
Snieška, V., 2015. Research into international competitiveness in 2000–2008. Engineering
Economics. 56(4). pp.89-476.
Tibbetts, Jeremy R., and Danika van Proosdij., 2013. Development of a relative coastal
vulnerability index in a macro-tidal environment for climate change adaptation. Journal of
Coastal Conservation. 17(4). pp. 775-797.
Wetherly, P. and Otter, D., 2014. The business environment: themes and issues in a globalizing
world. Oxford University Press.
Willems, J., Boenigk, S. and Jegers, M., 2014. Seven trade-offs in measuring nonprofit performance
and effectiveness. Voluntas: International Journal of Voluntary and Nonprofit
Organizations. 25(6). pp. 1648-1670.
Online
How globalization sparked Entrepreneurship in the Developing World: The impact of formal
Economic and political linkages. 2016. [Online]. Available through <http://www.igi-
global.com/chapter/how-globalization-sparked-entrepreneurship-in-the-developing-world/
170923>. [Accessed on 14th December 2016].
Social factors., 2016. [Online]. Available through
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<http://sf.oxfordjournals.org/content/92/2/563.short>. [Accessed on 14th December 2016].
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