Impact of Global Forces on UK Businesses

This assignment delves into the multifaceted impact of global forces on UK business organizations. It requires an in-depth analysis of various factors, including economic trends, political shifts, and evolving social norms, that shape the operating environment for businesses in the UK. Students are expected to critically evaluate how these global influences affect different aspects of business operations, such as market dynamics, supply chains, and competitive landscapes.

Business and Business
environment

Table of Contents
INTRODUCTION.......................................................................................................................................3
PART 1.......................................................................................................................................................3
P3............................................................................................................................................................4
M2...........................................................................................................................................................5
D1............................................................................................................................................................7
Part 2...........................................................................................................................................................8
P4............................................................................................................................................................8
P5............................................................................................................................................................9
P6..........................................................................................................................................................10
M3,M4...................................................................................................................................................10
CONCLUSION.........................................................................................................................................11
REFERENCES..........................................................................................................................................12

INTRODUCTION
Business e environment consist with the entire macro and micro environmental
components. These factors have largely influenced the business activities and function (Chow,
and et.al.,2012).In this project report the impact of macro and micro environmental factor has
been addressed with respect of Mark & Spencer’s. Further, various organization such as private,
public and nongovernmental organization’s scope, size, purpose and structure has been also
discussed in this report in order to understand the business environment. The major objective of
this project is to understand the impact of various environmental components on the business
activities and functions. In addition to this internal and external analysis of business organization
has been also addressed in this report.
PART 1
P1,P2, M2 converted in PPT
P3
As per the above discussion it has been ascertained that Mark & Spencer is the world
famous retail outlet which have large numbers of stores in the various countries in the world. It
have large numbers of employees whose gives continues efforts to achieve the organization
objective (Botha, Kourie and Snyman, 2014). It major aim is to render is to an innovative and
creative product and services to its customers and earn the highest profitability. Further it is
giving continuous effective efforts in order to gain the competitive advantage in the market. In
addition to this its wants to acquire large market share. In order to achieve the entire objective of
cited venture there have various functional departments such as finance, marketing, human
resources, administration and production. This all department have interconnection with each
other because all these department have common target. These all department gives their best
efforts to achieve company objective.
Human resource department have major responsibility to hire an skilled workforce and
manage them in such manner so as they can achieve the company objective. Further recruitment
and selection is an important activity to hire quality and talented employees in the organization.
By use of training and development Program Company can increase the skills and efficiency of
personnel’s so as they can perform their job and responsibility in an effective manner (Zhang,
and Huang, 2012). Human resources management should adopt effective motivation techniques
so as employees can inspire and encourage for higher performance and take initiative for higher
responsibility. This department have linked with the finance department because finance
department have major duty to prepare the report of financial transaction and income and
outcome statements. The profit can earn by company to sell the product and services so selling
activity in depend on the employees. It can say that all department are interlinked with each
other.

On the other hand production department of company have also relation with the human
resource department because training n d development program can organize by the human
resource department. Further administration and manufacturing department are also connected
with each other. Manufacturing department have main duty to produce the cloths and other
products of cited venture.
As per the discussion it can be ascertained that all department of Mark &Spencer have
main objective to render the excellent quality product and services to customers so as these all
function have collectively perform their own different roles and responsibility (Cai and Yang,
2014). These all functions have major aim to achieve venture’s goals so that they collectively
perform their job at workplace.
Organization structure has also largely connected with each other because structure
defines that how roles and responsibility are settled in the each department of the company. So
each department or functions of Mark &Spencer have settled according to their liability and
authority (TEbert and et.al., 2014). As per the previous discussion it has cleared that company
have adopted the horizontal organization structure so each department has arranged in the equal
manner they has not any vertical system between them. With assistance of this horizontal
organizational structure, each department of company has arranged in an equal manner.
Employees are allows to share their views and suggestions with the management and there has
open communication between all department. In this organizational structure there have few or
no levels of middle management between staff and executives.
M2
As per the above discussion it has been ascertained that there have various functions in
the Mark& Spencer’s such as marketing, finance, human resources, administrations, production
and manufacturing etc. These all department have interlinked with each other and collectively
perform their roles and responsibility to achieve company objective. Further these all department
have their own roles and responsibility towards business objective so as they gives their best
efforts to achieve this target. In this interconnection between various departments, there have
various benefits for company. These advantages are as follows-
 Achieve target within a time period- By this interconnection between various functions
of Mark &Spencer, the major advantage is to achieve the predetermined target within a
time period. In the firm, when all functions are collectively work together so they can
share their personal views and suggestion with each other (Waithaka and Ngugi, 2013).
Through this they can coordinate and support to each other and attain the determined
target within a given time period.
 Effective productivity- In the organization when all functional department works in a
collective manner so as they can able to achieve the predetermined target within a
specific time period. Further with assistance of this, they can able to perform their job
and responsibility in an effective manner.

 Effective utilization of available resources- This is the major advantage of this
functional working in the business organization. By this all department can use the
available resources in the business enterprise in an effective manner. All departments use
the various resources such as technology, equipment in order to achieve the objective of
business enterprise. This will assist in reduce the wastage of company.
 Healthy relationship at workplace-This is another important advantage of this
interrelationship between the various functional departments in the Mark &Spencer. By
this collective criteria of working at workplace, all department of business enterprise can
able to develop an effective and healthy relationship with each other (Grigor'ev and
Suslova, 2014). Further they will share their personal views and suggestion to each other
and support with each other to achieve specific task. It can be said that interrelationship
will create an effective and healthy working environment at workplace.
As per the above discussion it has been ascertained that there are various advantage of the
interrelation between various functional departments at workplace. However it has also some
kind of drawback which have to face by the workforce in the business organization. These
disadvantages are as follows-
 Arise conflicts- In the organization, there has various advantage of interrelation between
various functional department but when all these department works together at workplace
then iot has create the conflicts between them. In these various department, there have
various people whose culture, views, suggestions, region are different from each other.
So that this will create a conflict between them.
D1
As per the above discussion it has been ascertained that Mark & Spencer is the world
famous retail outlet which have large numbers of stores in the various countries in the world. It
has large numbers of workforce whose give continues efforts to achieve the organization
objective. It major aim is to render is to an innovative and creative product and services to its
customers and earn the highest profitability (Asghar, 2013). In order to achieve this objective of
company, it has adopted the horizontal organization structure under which there has no middle
level management and all departments are settled in the equal manner. By this structure, the
complexities can arise in the management between all these functional department. Horizontal
organizations are less efficient, taking more time and resources to make decisions. There may be
conflict between departments as the responsibilities are interdependent. There may be difficulty
in coordinating the activities of different department. There is ever emphasis on specialization. It
maximizes supervision cost. It is non responsive to environmental change. It does not promote
innovation and creativity.

On the other hand private company Iceland has adopted the vertical organization
structure through which all department has connected by the various management layers. It
means there's a well-defined chain of command with a vertical organization, and the manager at
the top of the organizational chart has the most power. Personnel’s report to the manager directly
above them in the organizational structure. Each employees is responsible for a definite area or
set of responsibility (Schneider and Schmidpeter, 2012). In the Iceland organization, there may
arise the complexity by this organization structure because Vertical organizations can be rigid,
with many rules. Some workers feel stifled by this kind of structure, or feel their input isn't
significant. The major to this problem are the upstream and downstream investments the business
is making.
In the Mark &Spencer organization, there ahs various functional departments such as
marketing, finance, human resources, administration, production and manufacturing. This all
department have interconnection with each other because all these department have common
target. These all department gives their best efforts to achieve company objective. As per the
previous discussion it has been discussed that human resources management department is
directly linked with every department in the cited venture (Kitzmueller and Shimshack, 2012).
Because this department have major responsibility to manage the entire employees at workplace
so as they can perform their job in an effective manner. This department develops working
polices and practices which have to followed by entire workforces in order to achieve company
objective. Further motivation, recruitment, training and development, promotion etc all activities
and functions are organized by the human resource management department. It is linked with
production, finance, marketing department. It can say that these all department have major
objective to achieve the predetermined objective of mark &Spencer’s so they collectedly
contribute their efforts at workplace. Further administration and manufacturing department are
also connected with each other. Manufacturing department have main duty to produce the cloths
and other products of cited venture.
Part 2
P4
In order to survive in the competitive market, every business organization requires analyzing
the environmental factors so as it can easily cope up with business environment. This
environment is consisting with the internal and external factors. These internal and external
factors are also known as the macro and micro components. The business environment has
developed by the mixture of these two components. In the context of Marks &Spencer Plc it is a
major British multinational retailer headquartered in the City of Westminster London. It is
dealing with retailing of clothing, home products and luxury food products. It is a famous retail
outlet in the UK which has 83069 numbers of employees. The major objective of this
organization is to develop an innovative and creative product and services to its customers and

earn the highest profitability (Torres, Bijmolt Tribó and Verhoef, 2012). Further it is giving
continuous effective efforts in order to gain the competitive advantage in the market. This
venture have to conduct effective analysis of the environmental factor so as it can effectively
compete with rivals as well as operate its business operations in the environment. Macro
environment consist with the political, legal, environmental, economical, social, cultural factors.
These all factors largely affected to the business performance. Following are some positive and
negative impact of these macro environmental factors-
 Political factor-This is the major factor which has largely affected to the mark &Spencer
organization. In this factor includes governmental policies, rules, and regulations, code of
conduct, tax policies, legislation, regulatory function and business related regulation.
Company has to consider this factor at the time of operation in the country (Del Sarto
2014). Every country have different rules and regulation which has developed by
government. The advantage of this political factor is that company can protect its
business operation by follow the regulatory rules and regulation. It can take the license
and authority of business survival in the country. However the disadvantage is that some
time business organization.
 Economical factor- This is the another major macro environmental factor under which
includes all pricing policies,, recession, inflation, interest rates etc. Corporation has to
consider this factor at the time of business operation in the country. The prices of product
and services are decided on the basis of economic condition of country. Organization can
be influenced directly by some economic inflations such as interest rate changes on a
business that borrows significant amounts.
 Social and cultural factor-This is another very important factor of macro environment
which have to consider by the cited ventured. This is the factor which is largely depends
upon the society and customers choice, preferences, culture, region, taste, family size,
education, occupation, requirement, value, their beliefs etc (Trauner and Deimel,2013).
Mark and Spencer is a retail outlet which is dealing with the clothes and other consumer
product so company have to consider this component at the time of business operation in
the country.. The positive impact of this factor is that company can earn the profitability
by effective sales. If it produce the product and services according to the requirement of
customers then it can gain the effective market share. However the disadvantage of this
component is that customers behavior is very sensitive which can change according to the
different time and situation so it is very difficult for company top cope up with this
changes.
 Technological factor-This is another very essential factor of macro environment which is
change very fast manner. According to change and development of technology,
corporation have to adopt the new and advance technology in the various department of
business. This is a very frequent changing aspect in the country therefore company have
to consider this factor in an effective manner (Hollis,2012). The major advantage of the
technology is that company can enhance its marketing, customer connectivity,

production, manufacturing, internal operation by use of technology. However, the
drawback is that, it is very frequent changing aspect so business organization have spent
lots of capital in order to cope up with new technology in the business operation.
 Environmental factor-This macro environmental factor is related to the natural resources
of country such as raw materials, water, air, fuel, sunlight, weather, climate etc. These all
natural resources affect the business operation in large manner because all production and
operational activity of company is depends upon these natural resources.
 Legal factor-This factor includes all customers and employees related rights and acts.
Legal factor protect the company operations and its employees also. This environment is
similar to the political environment which legislative issues, especially focusing on the
effect that up-coming legislation may have on the company (Netzer, Feldman,
Goldenberg and Fresko, 2012). The major advantage of this factor is that company can
protect its employees and customers by use of some legal legislative cats such as
employment law, consumer good act, consumer protection cat, employee’s rights act etc.
P5
As per the above discussion it has been ascertained that there have large impact of macro
environmental factors on the business organization. Further in order to survive in the competitive
environment, company has to analyze its internal and external environment. Following are
internal analysis of Mark &Spencer business organization-
Strength- Marks &Spencer Plc is a major British multinational retailer headquartered in the City
of Westminster London. It is dealing with retailing of clothing, home products and luxury food
products. It is a famous retail outlet in the UK which have 83069 numbers of employees. The
major strength of this venture is that it have 852 stores throughout the UK, as well as many
international stores; 52 stores in India, 48 stores in Turkey 37 in Russia, 27 in Greece, 17
in Ireland, 14 in France, 11 in Poland. In addition to this it have long profitability with its
suppliers. Cited venture have been here for more than 100 years so it has a good history of trade.
Weakness- The major weakness of this company is its large competition. As it is a famous retail
outlet in the UK so it have large numbers of competitors in the market. Further company have
old and classical fashion image, advertising is poor as they do not offer discount sales during the
festival season as other retail company offers (Batlle, Pérez-Arriaga and Zambrano-Barragán,
2012). Moreover, company has not more efforts top develop that product and services which
customer is required .It have poor customer services as they do not provide fitting rooms and
loyalty cards.
Opportunity- The major opportunity for M&S has to enter the e-business effectively as their
competitors. In addition to this Expansion in growing product areas such as Food, Home and
Beauty as they have customers trust for their quality and innovation. Moreover, its opportunity to
become a number one retail clothing outlet in the world.

Threats- The major threat for cited venture is continuous changing customers demands related to
the clothing and fashions. Further, cited venture have to cope up with changing the advanced
technology and development (Nov, 2013). Since M&S operate in many segments like food
clothing and others they have many competitors such as Tesco, Sainsbury, Zara.
P6
As per the previous discussion it and been concluded that M&S has largely affected by
the macro factors such as political, legal, social, environmental, economical etc. Cited venture’s
strength and weakness are directly lined with these macro environmental factor .For example,
company have strength of its various retail stores in the various countries (Carvalho, Marques,
and Berg, 2012). In various countries have different political environment, company have to
consider and follow the different countries rules, regulation, tax policies And code of conduct in
order to operate business operation. On the other hand company have weakness related to the old
and classical fashion so it is related to social and cultural factor. Company have to conduct the
survey and research about the counties customer choice, preferences, culture and taste and
according to these all aspect it have to produce new product and services.
M3,M4
PESTEL Analysis of Mark &Spencer-
Political factor In this factor includes governmental policies,
rules, and regulations, code of conduct, tax
policies, legislation, regulatory function and
business related regulation. Company has to
consider this factor at the time of operation in
the country (Manova, 2013).
Economical factor This environment, perhaps more than any of
the others, is the one that most influences
business decisions, especially in developing
economies that are prone to sudden and
significant economic shocks from external
sources.
Social and cultural factor This is the factor which is largely depends
upon the society and customers choice,
preferences, culture, region, taste, family size,
education, occupation, requirement, value,
their beliefs etc. In this environment company
have to consider customers and their changing
attitudes and values and the general trends that
influence the way the market buys products
and services
Technological factor The rise of the Internet has changed the way
business deliver its products to the end-user
and, indeed, there are many businesses that

only now exist because of the presence of a
suitable technology like the Internet (Chor and
Manova,2012).
Environmental factor Marks & Spencer has announced a 100-point
five-year plan to re-engineer itself to become a
carbon neutral, zero-waste-to-landfill, ethical-
trading, sustainable-sourcing, health-promoting
business.
SWOT Analysis of Mark &Spencer
Weakness- Company have old and classical
fashion image, advertising is poor as they do
not offer discount sales during the festival
season as other retail company offers.
Strength-. The major strength of this venture is
that it have 852 stores throughout the UK, as
well as many international stores in various
countries.
Opportunity- To became the number one retail
clothing outlet in the world. Further it wants to
Expansion in growing product areas such as
Food, Home and Beauty.
Threats- High level of competition. In addition
to this changing regular fashion trends and
customer preferences is major threat for
company.
CONCLUSION
From this project report it has been concluded that Organization should effectively
analyze the impact of these environmental component so as it can effectively carry its business
operation in the competitive environment. In this includes political, economical, social , cultural,
technological and environmental components which impact the business policies and procedures.
In addition to this Mark & Spencer have strong brand image in the market and have a strength of
large numbers of retail store in various countries in the world.

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Online
Impact of Global Forces on UK Business Organisations,2016.[Online].Available
through<http://research-methodology.net/impact-of-global-forces-on-uk-business-
organisations>.[Accessed on 25 october 2016].