Internal and External Business Factors

INTERNAL AND EXTERNAL BUSINESS
FACTORS
Organisational impact on the
external environment
Corporate social responsibility
Corporate social responsibility is an important tool that
helps the business to develop and maintain the corporate image in the
marketplace, wherein the customer feels reliable and stay loyal to the
business for long. In order to develop the corporate social
responsibility, Marks and Spencer render charity to the charitable
organisation, promotes employee welfare in the organisation,
environmental campaigns in order to aware the people about the
measures that needs to implement in order to address the rising
environmental concerns.
Business environment involves both external and
internal business factors wherein business needs to formulate different
strategies in order to make adaptable changes of the changing market
demand in the business activities. Wherein the internal environment
factor involves internal management of the business and everything
pertaining to the business functioning. Whereas external business
environment includes competitor, market demand, political framework
and others. In the context of Marks and Spencer which is a global
organisation, found in the year 1884 by Michael Marks and Thomas
Spencer, headquartered in London, UK. It delivers products and
services including apparels, banking services, food services, home
furnishing and improvements products. This report covers the effects
of the external business factors upon the business and the impacts of
the business activities on the marketplace.
Effect of external and
In order to evaluate internal and external business factors
and their impact, SWOT analysis is conducted in order to support the
discussion.
Strengths
Marketing offerings
Marks and Spencer delivers innovative products and
services in accordance to the current market demand, the company
work for bringing continuous changes to differentiate the offerings of
the company in the market place and attain competitive advantage.
Weaknesses
High prices
High prices of the products and services demotivates those
customers who are not willing to pay high prices even company
which negatively affects the profitability of the business.
Changing customer demand
It is difficult to identify the current market demand due to the
changing customer preferences and growing market trends, thus, it becomes
difficult to responds to different consumer changes and trends and deliver right
market offerings that satisfies the current customer preferences.
Opportunities
International business
The international presence of Marks and Spencer helps help the
business to achieve growth and stability with high profitability and market
share, renders financial stability and global image in the marketplace.
Threats
Rising competition
With emerging competition in the marketplace, wherein the
customers find substitute for each products and services, Marks and Spencer
works on improving quality and bring innovative changes that to build
differentiated products in order to cope up with the exiting market
competition, thus, it is an important threat that can’t be ignored, Marks and
Spencer analyses the competitive strategies and their position in the market.
Competition impacts the business in a negative way, that results in loss of t
sales and profit margin of the business.
In a nutshell, it can be concluded that different factors in the external and
internal business environment affects the performances of the businesses. In order to
support the information about identifying the internal and external business
environment analysis PESTLE analysis and SWOT analysis for evaluating the
internal factors is being conducted which determines the impacts of the factors on the
business performance. The above report also determines how business affects the
external environment which involves corporate social responsibility, economic
development, employment generation.