Business Environment and International Business

This assignment covers a wide range of topics related to the business environment and international business. It includes references from various sources such as academic journals, books, and patents. The assignment provides a detailed analysis of the business environment's impact on young firm financing, global strategy, and product lifecycle management. It also explores innovative business models for sustainable innovation and discusses the importance of a dynamic business environment in managerial accounting.

Business and the Business
environment

INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Explain different types and purposes of organizations and legal structures ......................................3
P2 The size and scope of a range of different types of organizations......................................................5
TASK 2..........................................................................................................................................................7
P3 relationship between organization function and how to link with objectives and structure..............7
TASK 3 .........................................................................................................................................................9
P4 Positive and negative impact of Macro environment on Business operations...................................9
TASK 4........................................................................................................................................................12
P5 Internal and External analysis of Marks and Spencer.......................................................................12
P6 Interrelation of Strength and weakness with external Macro factors in context of M&S.................13
CONCLUSION.............................................................................................................................................15
REFERENCES..............................................................................................................................................16

INTRODUCTION
Business condition consider as one of the critical devices or segment which influence the
different exercises of business at the season of running distinctive capacity of association. In
today unique condition changes are coming at quick speed because of changing perception and
thinking of target audience due to progression in innovation, advance technology and attractive
features offered by rivalry in respect of products and services. Aside from it, there are diverse
number of organizations and have settle their procedure in different divisions through which
tasks has been led which has been influenced by interior outside source. Under this task the
organization which is favored I.e. Marks and Spencer which is UK based biggest multinational
retail stores engaged in grocery and clothing business (Cantwell , Dunning and Lundan ,2010).
Further, it discusses about the diverse sorts and reason for association, size and extent of scope of
various scope of association, connection between various association functions, positive negative
impact of macro environment and interrelation of strength weaknesses with environment.
TASK 1
P1 Explain different types and purposes of organizations and legal structures
There are three types of organizations in business environment such as public, private and
voluntary. Description of all these are given below:-
Public sector - companies which comes under public sector is controlled and managed by
national, state and local government. Motive behind introducing this organization is to provide
services to customers at minimum amount. For instance Department for work and pension which
introduced in 8th June 2001 respective enterprise is responsible for the welfare and pension policy
of citizen in United Kingdom. They are providing services to the aged citizen related to their
pension schemes. Its legal structure is given below –
 Central government department – organization in public sector are managed and control
by the government. There is some companies which is directly running by the
government of particular Country. It alienated in state, local and regional sections so
when several enterprises comes in these three then managed by central government of
department.

 State Government – Companies which comes under public sector is totally managed by
the governmental bodies of that particular nation. Their are some organizations which
comes under state level is manage by their governmental bodies.
 Local authorities - This is a type of public supervision conventional at lowest tires
underneath state government. For the reason that in some states also have business which
is operating by legal authorities.
MOA and AOA of Public sectors companies include details such as:
 Objective of companies.
 Office of headquarter and registration
 amount of capital required to establish firm
 details which is going to consider in meetings
 arrangement related to auditing of accounts.
Private sector – Private sector enterprises have their own separate legal which is distinct from
its owner. These are mainly running by their owner but in some circumstances it can be
started by in partnership also. Main motive of introducing such organization is to increase
productivity and profit maximization. For rising own living standard and family members
also. Mark and Spenser is the private sector company founded in 1884 and it is retail
industry . They are serving their products at worldwide level such as clothes, home products
and luxury food items. Founder of the business is Sir Michael marks and Thomas Spenser
along with this its Headquarter is in London, United Kingdom. Legal structure of M&S are
as follows:-
 Sole traders - they are single person who is controlling and managing business and
don’t have distinct entity from their organization. He/she is responsible for all the
losses and debt and also owner of all the revenue they are generating. Legal structure
of Sole traders are: United Kingdom business numbers, business name which is
registration or change, trademark registration, registration of an UK company. Apart
from this main purpose of their for starting an business is profit maximization so they
can provide better living standard to their family member.

 Partnership – it is that in which two or more than two person contribute their money
which is known as capital for starting a business. Everyone is liable for profit and loss
both as per the amount of capital invested ratio is decided. As per that profit and loss
is divided in company between every partner. Legal structure of partnership
companies are: UK business number, Business name registration, trademark
registration, limited partnership formation. Main purpose of introducing such
business is to expand and enlarge company in several countries, cities.
Shareholders get more profit when they invest their funds and capital in private sector
entrepreneur or company.
Voluntary Sector: These are also non- profit companies which are working for social
welfare as well society. Apart from this it is distinct from both public and private sector
firms. Wellcome Trust is the voluntary enterprise of United Kingdom introduced in 1936 and
its founder is Sir Henry Wellcome they mainly focusing on Biomedical Research there are
2,057. It refer to condition when group of person come together with common interest and
purpose. This is the largest firm who is providing services for research and the same is one
of the largest in the entire world. Legal structure of this is given below:-
 Trust- there is some trustees who give fund for working of overall organization. As well
such enterprise don’t have any members but only trustees and for them deed is formed
which shows their appointment and retirement date.
 Unincorporated association- these are management committees of administration or can
also called council with them a constitution and don’t have any distinct identify from
trustees.
 Others- Royal charter bodies, community and several other.
P2 The size and scope of a range of different types of organizations
Public Sector Company and its overview- Department for work and pension is the
public sector enterprise which is launched on 8th June 2001. Its headquarters is in Caxton House
7th floor 6-12 Tothill Street London SW1H 9NA. the same have four operational organization
such as Jobcentre Plus which is working for aged benefits like Jobseeker’s allowances, as well
decides which claimants receive employment and supports.

Mission- employs best people and resources through which support to government is easy and
brings latest idea related to pension. So there will be optimistic results and provide better
services to citizen of United Kingdom.
 Vision- when people are spending their hard earned money or giving time for
organization in return they want something for future. Which must be provided to them.
 Values- customer focused, loyal, ethical, accountable and reliable.
CSA is executive agency of department for work and pensions and in this parents pay amount for
services they are grabbing. This is given in the situation when parents have divorce, marital
separation and annulment or can me many more reasons.
Private sector company- M&S is the business who is providing their products like
clothes, home goods and luxury food products at worldwide level. Main motive of introducing
their business in market is grepping entire customers and profit maximization. As per the data of
2017 their operating income is £690.6 million and number of employees working are 84939.
 Mission- to provide best quality of goods and services at world wide level. Products must
be like that so it can satisfy the person they are providing in effectual way main is
grabbing entire clients of retail sector and convert them into loyal.
 Vision- severs best quality of product at minimum price then others so it will be easy to
create difference in their goods with others. Because satisfaction of buyers is necessary.
 Scope of Mark & Spencer- M&S is the company founded in 1884 and revenue generated
by them as per the data of 2017 is £10.622 billion. Along with the they are serving
worldwide as per entire world number of employees are approximately 84,939. their
operating income is £690.6 million and net income £115.7 million.
Voluntary sector- this includes such enterprise who is working for social and society
both welfare with no intention or motive of profit maximization because they are non
profit administration. Welcome Trust is doing biomedical research in United Kingdom
approximately there are 2,057 employees working as per the data of 2017. The same trust
is explained by financial times which gives non- governmental funding for scientific

research and biggest in the world. Principles of Wellcome trust is to improve health of
their ever client for whom they are working. Uses their resources, talent and energy in
best possible manner so they can achieve mission of firm.
 Vision- respective company vision is to achieve extra improvement in health of human
beings and animal for whom they are doing research.
 Mission- to do work in such a manner that no other and bring brightest mind in the field
of biomedical research and medical humanities.
 Scope of Welcome trust – This is the organization which is founded in 1936 and its
registration numbers are 210183. as well its endowment is of £23.2 billion as per the data
of 2017 which is making them second wealthiest charitable foundation.
Large business:-
 In an organization structure of management, administration system and department
marketing are consider as capabilities to carry out these factors for multiple product.
 Enhancing range of products will affect the economies of anther product which is already
existing on marketplace.
Economies of scale are consider as cost advantage for expanding business operation and
functions. When some organization expand there business they may face fall in cost due to
various reasons such as-
 Economies of purchasing related to situation when big business receive a huge discount
when they purchase products and services in bulk.
 Marketing economic is refers to condition when company spend more fixed cost in
promotional activities to gain large customers base or profit.
 Administrative economic is refer to conduction when company spend more fixed cost in
managing staff and IT system to gain large level of outcome.
Small business:-

A sole trader is type of business which is owned by an individual. It can be a employees
of an organization or may not be. It is consider as most common form of ownership in the
marketplace of United Kingdom.
 They offer unique and creative services to customers which attract customers.
 It is based on need and demand of customers.
 These firms are basically based on the need and demand of local or domestic peoples.
TASK 2
P3 relationship between organization function and how to link with objectives and structure
Companies have its different functions which are interrelated with each other. As well
different department and functions help organization in achieving their goals and objectives.
There are large number of retail sector organizations some of them are Zara, M&s and H&M
they are competitors of each others as well most famous and popular enterprises. They are
serving their goods and services to different type of customers all of them have distinct taste and
preferences. Apart from this business environment have three type of companies public, private
and voluntary. Everyone is different from each other in their objectives, nature and working
along with this their introducing motive is also not similar to each other. For instance, private
sector companies charge amount for their products and offering with the motive of generating
profit. Their main motive of introducing company is generating more and more revenue and
profit maximization. So they can serve their family member better living standard. Whereas, on
the hand, public firms are those is providing services for the benefits of customers by charging
minimum amount of money. Government provide fund to them for their day to day working.
Such companies are introduced with motive of public and economy development. Last one is
voluntary enterprises which are also known as NGO who is not working for profit maximization
but providing services to people for their welfare. Mainly their motive is social welfare.
Function of these associations is entirely related with their objective, structure and
completely depends upon the different divisions and the staff members who are doing their
operations. In organization there are different departments such as finance and accounting,
human resource, marketing and promotion which maintain their day to day records of resources
available and invest in daily basis activities or for production reason. As well these are necessary

for working of business. Marketing department is that who do advertisement and promotional
activity for the new products and services which is introduced by same company in market area
this whole procedure serve info related to the goods to their target clients. This helps in attaining
more and more profit which is necessary for on going existence in cut-throat competitive in the
industry. There is manufacturing division also in which products are produced which require
analyzing need and demands of clients then after that manufacturer of must start production.
Instead of this for this there are leader and manger in the company who manage working as well
employees also.
Mark & spenser is following flat organisation structure in which employees feel easy for
taking decision related to anything. There are several department is organisation like human
resource, finance, production, marketing etc. Work of each and every department is interlinked.
Because HR division is that which manage entire working of M&S. Whereas, finance
department is that give prepare budget for all the department and allocate funds for their day to
day working.
TASK 3
P4 Positive and negative impact of Macro environment on Business operations
In every organization there are various type of factors and elements that exist in
environment Who put both the good and bad impact on overall task which are being performed
and implemented by company. Regular scanning of external environment enables the company
to regulate all the changing factors which are coming in external environment (Hamilton and
Webster ,2015). It also discusses about all the component whether it is internal and external
factors both the elements need to be evaluated at the time of running overall operations of
business. Apart from it, Marks and Spencer need to perform different functions and activities on
the basis of specified rules regulation that fix for organization. Company in order to evaluate
their actual position and recent trends in the external market PESTLE analysis has been
conducted to know the reality of external market and for the benefit of Marks and spencer which
describe below: -

Political factors: - There are diverse kinds of political components and approaches which has
been upheld by government for the advantages of organization and different laws and controls at
the creation of merchandise and ventures for client yet in the event that any progressions made
will influence generation exercises.
Positive effect: - Introduction of facilitated commerce arrangement is valuable for M&S with a
specific end goal to diminish their cost of sourcing. If the area in which company wants to
operate have a political stability, then entity can sustain in market in long run and can generate
more number of profits.
Negative effects: - Fluctuation in impose rates will influence M&S generation on account of
accessibility of assets at higher cost. Factors such as political instability, changes in tax rate and
Brexit all directly affect the profits of organization.
Economic factors: - These elements incorporate expansion, flattening, development rate and
other state of business and these components are unmistakable in each nation so it is essential for
M&S to think about every one of the components at the season of working at different nations, in
this way at the time propel innovation and log jam in economy influence their deals too.
Positive impacts: - In circumstance of swelling obtaining intensity of people has been increment
due to expansive accessibility of assets. It is very important that firm should be financially strong
so company can respond to the various changes that arise in inflation rate, deflation rate and in
purchasing power of customers.
Negative impacts: - Negative effect has been emerges in economy in view of question with little
retailers in view of gigantic accessibility of items due of money effect of Brexit. It is very
important for M&S to first identify and examine all the elements that cover under the economic
factor as with this company can generate more number of profits.
Social factors: - Every organization is taking assets from the earth so it is most extreme
obligation of them to reclaim to them additionally in appropriate way. Further, organization must
spotlight on CSR idea so as to give social welfare to business.
Positive factors: - The positive elements or components that are related with M&S so as to
connected with clients for building up long haul connection with them. To maximize benefit

related with social elements, it is essential for M&S to analyze the needs and wants of customers
so company cam manufacture the same and at the same time can retain them for a long time
period.
Negative factors: - The negative effect might be identified with item section organization utilizes
presented by M&S at some point it gives negative effect on social networks. When changes take
place in needs and wans of customers in fast speed then it become difficult for company to
manufacture products as per their specific requirements.
Technological factors: - Advancement in innovation and new imaginative highlights in items
benefits by contention influence offers of business. Technology play an important role in retail
sector and when firm use updated technology then it helps in manufacture better products and at
the same time bring efficiency.
Positive factors: - If M&S presented and created innovative and digitalize items then they ready
to finish all the undertaking and goals in determined day and age. When company use new and
updated technology then it can provide featured products to its target customers and can retain
them for a long time period.
Negative impacts: - Costlier and disappointment in innovation prompts overwhelming
misfortunes to organization. When technology changes on frequent then it become difficult for
firm to change the technology and to serve its target customers.
Legal factors: - there are different lawful laws and control upheld by government which need to
follow by organization. It covers the policies formulated and implemented by regulatory bodies
in order to ensure ethical working of all business enterprises.
Positive elements: - Proper adherence of laws and legal legislation by M&S will allow
organization to run their operations in better and effective manner without any legal proceeding.
When manager formulate policies by consider legal rules then it enhance goodwill of company
and help in create a positive image.
Negative effect: - In-adherence of laws and enactment prompts overwhelming punishment to
organization activities. When firm fail to follow the legal requirements then it give rise to legal
penalty and at the same time hamper positive image of company.

Environmental factors: - Different components and components that influence the earth on
positive and negative premise both.
Positive impacts: - Red tapism reduction and use of such environment free equipment that help
in reducing global warming effects on earth. When firm carry out business activities by consider
factor of environment safety then it help in sustain in market for long run.
Negative impacts: - Emission carbon impressions drive negative effect on general altruism and
brand equity of business. When organization carry out business activities without consider factor
of environment safety then it face a criticism from the society and loose its market share.
TASK 4
P5 Internal and External analysis of Marks and Spencer
In dynamic changing environment rapid modification has been made in the perception,
thinking and choices of customers due to up-gradation in technology and multiple varieties
provided by firm in respect of different goods and services therefore, it is essential for Marks and
Spencer for the purpose of knowing the actual position in external world and for evaluating their
actual internal situation SWOT analysis is best method that need to conducted in order to know
the strength, weaknesses, opportunity and threats on the basis of which improvement has been
made for better productivity. Following is the SWOT analysis of Marks and Spencer which
stated below: -
Strengths
M&S is contains with an excessive number of
qualities based on which they working their
business effectively and this association is
differentiated their business at worldwide level
and on account of incredible brand esteem they
effortlessly pull in substantial number of target
groups of onlookers and having 600 stores
crosswise over UK.
Weakness
Everything isn't immaculate in each
organization so M&S likewise look from
different downsides and one of them is
identified with radical changes in design will
prompt face the issue of disappointment or out
of mold of organization items and
administrations. They bargain in dress sections
however it has been watched that they made
garments for more established gathering of
individuals and neglect to draw in extensive

number of groups of onlookers for purchase the
items from their store which influence their
deals too
Opportunities
M&S is one of the best retailing store in
supermarket contains 600 stores and intending
to extend their market at worldwide level.
Organization including expansive client base
as a result of managing in various assortments
of items benefits through which they gain
gigantic benefits and effectively boost their
deals.
Threats
There are enormous rivalry in
worldwide market and changing needs
and impression of clients because of
propel innovation and up-degree in
highlight and cost of items
administrations actuates M&S to
accompany development that assistance
them to maintain in showcase for longer
period.
Therefore, it is essential for M&S to consider the above SWOT analysis on the basis of
which future plans and strategies has been made in order to make innovative modification in
their services so that they gain competitive advantages over competitors.
P6 Interrelation of Strength and weakness with external Macro factors in context of M&S
In each association M&S contains different quality and shortcomings and outer variables
incorporate those part and components which organization has no control and put both positive
negative effect on general development of business.
M&S biggest multinational retail location grow their business at worldwide level and win
enormous measure of income from UK. Further, it is affected by Brexit control which is known
as political episode which may denied this relationship at the achieving objectives for quick
development. M&S is for the most part having their universal nearness exceptionally in the
territory of Europe yet under post Brexit there are numerous troubles at the season of extending
their tasks at various districts of business. Aside from it there are distinctive difficulties which
require to look by M&S in future and require to spend more measure of cash, cost and time for
achieving different obligations (Hair, J. F., 2015).

In any case, is confronting disappointment in the region of sustenance portion and their
deal has been diminished over timeframe as a result of not wagering every one of the difficulties
of contention and there are distinctive kinds of legitimate limitation that progress toward
becoming obstacle in their activities of nourishment segment and put tremendous budgetary
weight on business. Close to this organization is concentrating on contributing in CSR exercises
with the goal that they put great case in eye of society for their welfare and creating expectation
for everyday comforts of society which help in enhancing the generosity and brand value of
organization.
In spite of the fact that Marks and Spencer are one of the renowned brand in association and
utilize diverse propel innovation in their items and administration that assistance them to
increase upper hands over contenders. Further it is essential for Mark and Spencer to scan
continuously all the tactics of their rivalry in retail supermarket on the basis of which company
can easily plan regarding all the major changes they made in their organization structure for the
purpose of accomplishing all the goals and objectives of company.
Political: This aspect cover the policies and strategies develop by government of nation in order
to control the activities of business for control economic growth of nation.
Strength: It is very important fort manager to formulate policies by consider the strategies of
government in order its support for expand commercial operations in new areas.
Weakness: When there is no government stability in the nation then policies on a fast basis and it
became difficult for company to attain its business objectives.
Economic: This is known as one of the most important element of external environment as this
cover the factors such as inflation rate, deflation rate, GDP and purchasing power of individuals
living in the area in which company wants to expand.
Strength: When firm set the final price of its products after analyze inflation, deflation rate then
it helps in generate more number of profits by attract more number of customers.
Weakness: It is very important for organization to be financially strong in order to respond to the
changes take place in economic factors.

Social: This element covers the change which take place in needs, buying habits and
requirements of individuals. Before carry out production process, it is very essential for manager
to carry out research for determine the features which customers wants in company’s product.
Strength: It is very important for manager to have information about the needs, wants and
requirements of customers so company can manufacture products as per it and can retain
customers for a long time period.
Weakness: When changes arise in needs of customers quickly then it became difficult for entity
to satisfy their needs.
Technological: Technology is known as one of the major element that largely affect the
activities and operations of organization operating in retail sector.
Strength: Use of new and updated technology bring efficiency in business activities and help in
attract more customers.
Weakness: It become costly for organization to replace old technology with new one. When
entity use old technology then it fails to attract more customers.
CONCLUSION
From the above assignment it has been concluded that business environment is dynamic
in nature which includes several modification related to policies and procedure, technology,
climate, Taste and preferences. Business environment is of two kinds such as micro and macro
and enterprises included in these are divided in three sectors like public, private and voluntary.
Thus, for identifying all this market research is conducted by administration which involves
SWOT and PESTL. Because for development and future growth of association this is required
and to determine market.

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