Impact of Business Environment on Marks & Spencer

This report discusses the impact of the business environment on the functioning and activity of Marks & Spencer. It covers different types of businesses, such as micro, small, medium, and large, as well as sole trader, partnership, limited liability, public limited, and cooperative. It also explores the influence of organizational structure on business productivity and uses PESTEL analysis to explain how external factors affect performance.

Project

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Definition, characteristics and example of micro business, small business, medium size
business and large size business..................................................................................................1
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited business and cooperative......................................................................2
Identify different organisational structures and explain how organisational structure affects
business productivity...................................................................................................................3
Using PESTEL analysis explain how different external factors affect the performance of a
business........................................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business environment denotes internal and external environment that imposes impact on
functioning level. The current assessment is considering Marks & Spencer which is supported to
combination of several aspects that create or form instant influence on functioning and activity of
organisation. Within this written report, the assessment of different companies will explain as per
their size and scope of business venture (Keiningham, Perkins-Munn and Evans, 2003). There
will also description about sole trader organisation, limited liability partnership and others. Also,
the document will consider information about organisational structure and how it imposes direct
impact on effectiveness of enterprise. Moreover, the PESTEL analysis is also used for assessing
external environment of business venture.
MAIN BODY
Definition, characteristics and example of micro business, small business, medium size business
and large size business
Micro business
The micro organization is small firm who employs five individuals and possess turnover
which is less than particular amount. The micro enterprise refers a small firm that centers on
employing small range of people. They centre on specializing in providing product and services
for local areas.
Characteristics of micro organization
In micro organization, there are 5 subordinates contribute in running business. Also, these
organizations do not have subordinated as well as they do not possess excess to convey
marketable banking industry. The key purpose of micro organization is for survival. For instance,
Saloon and Plumber etc. are considered as micro organization.
Small organization
The small organization is analyzed as other than public firm and paid up capital that does
not more than fifty lakh or which will be not more than 5 crore.
Characteristics of Small organization
There are 10 employees who contribute in running the business of small firms. There is
several features of a small company such as low profit and profitability associated to employees
during specific phase of time period. The main aim of small firm is to provide survival to local
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people and earns profits. For example, Riverside food is analysed as an effective example of
small firm
Medium size organization
These kinds of organizations along with 50 employees during specific phase of time
period.
Characteristics of micro organization
There are several features of medium size company are be passionate about company, be
persistent for executing different type of firm. For example, Rowlinson Knitwear, The Ledbury
and Aviva are some good example of these kinds of companies.
Large size organization
These are those ventures which are operate their business with number of workers and the
main motive of large firms is to earn profitablility within a limited time frame.
Characteristics of large organization
The key objective is to maximize profit and make development in the business. For
example, Tesco, Amazon and many more is effective example of large companies.
Thus, there are several types of firm operate their functions and activities during specific
phase of time. It aids support in maximizing sales and profit margin in upcoming time duration.
Definition, characteristics and example of sole trader business, partnership, limited liability
business, public limited business and cooperative
There are several examples and features of company which is going to be defined as under:
Sole trader- They centre on managing different function of enterprise in appropriate form. The
owner of the firm has a accountability to perform different kinds of function which is related
with the operations and functions of business enterprise.
There are several features of sole proprietorship such as sole ownerships this is analyzed
as a business which is owned by individual during specific phase of time period. They posses in
limited liability and there is no legal entity (Hans, 2018). The key concentration is to maximize
more and more revenue that will be crucial for business firm n upcoming time.
Partnership- It is analyzed a as a sort of private firm which needs fewer finance and maximized
involvement of risk is analyzed a low. Thus, the example of this kind of firm is John which
determined as partnership firm.
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There are several features of partnership organization that is existence of agreement it is
analyzed as an outcome associated to agreement among more than two individual for carry out
functions of company. Their centre is on sharing profit and loss that will be crucial in upcoming
time period.
Private Limited organization-These are analyzed as a those sort of firm who centers on running
their firm and maximizing share of market (Sivarajah and et. al., 2020). They are not able to sell
its share in the marketplace For example; Airdri is an effective example of it.
There are several feature of private limited firm like they have less share capital to
perform their business in an effective form. Their concentration is on maximizing profits that
will significant for them in upcoming time. And their primary motive is to develop satisfaction of
user that assists in maximizing revenue in upcoming time duration. Along with this, the vision of
private firm is to develop higher value of firm through offering higher products in support with
services to its user. The key purpose is to maximize profit and develop market share within the
establishment. They are able to perform given task and provide qualitative commodities to its
consumer. The Amazon is analyzed as a private firm they perform their functions at global level.
And they follow functional structure that helps in managing several people of company in more
amended form.
Public limited organization- It is such kinds of organization within they feel free to sell share
for maximizing profit of business venture by offering several sort of goods to its customers. It is
included as that firm which is analyzed as a public sector by utilizing legitimate structure. For
example, British Board Casting Organization. They offer several sorts of data to people like dily
newspaper and many more. Their vision is to provide entertainment program for meeting
consumers needs. There are several kinds of subordinate who perform their task that is around
21000 workers that is considered as a large size firm.
Identify different organisational structures and explain how organisational structure affects
business productivity
The organisation structure refers method of utilising diverse actions and operations that is
performed by several divisions (Čepel and et. al., 2018). There are different functional
departments in context of Marks & Spencer that is going to be defined as under:
Functional structure- This is sort of framework within there are different function that must be
performed through several functions and divisions such as service as well as sales division.
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Divisional structure– This structure is related to segmenting organization through adding two
product lines (Mutalimov and et. al., 2020). Along with this, the primary objective of this kind of
framework is to divide organisation according to different category of commodities.
Matrix structure– It denotes as a combination of functional as well as divisional framework of
company. Thus, there is several sort of application associated to functional division as per
several class of manufacture products.
Flat structure- This structure have a framework with few levels of middle management among
leadership and workers. This structure elevates each worker’s accountability inside the company
and eliminates excess management layers to develop coordination and communication.
In provided information, the Marks & Spencer following flat organisational structure as
per their different levels of the company. Flat organisational structures feature fewer layers of
management; flat organisations can incur smaller expenses in salaries (Arsić and et. al., 2018).
Also, employees and work groups in flat organisations tend to be more acceptable in changing or
unique circumstances, due to their smaller hierarchies and lack of bureaucracy. This framework
create direct impact on the business productivity because it make or consider less expenses as
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well as the people work as per this framework can easily tend to work according to situation.
This support in enhancing profitability and productivity of the enterprise.
Using PESTEL analysis explain how different external factors affect the performance of a
business
PESTEL analysis is a tool which is considered by business firm for evaluating external
atmospheric components of firm and that imposes instant impact on operations of firm. The
explanation of PESTEL analysis in context of Marks & Spencer is defined as under:
Political factors- To manage in diverse nation and all countries posses different element like
legislation, tax rates, political stability and others.
Positive effect- There is different political aspects like tax rebate, combination of several
financial as well as political parties. Thus, M&S should be positive and keep optimistic impact
on operation of company (Khajeheian, Friedrichsen and Mödinger, 2018). For example, there is
proposal of tax by local council in current years but it is denied by national author of UK that
support in hike in cost for normal public that outcomes in M&S achieves good leadership
positions associated to price.
Negative effect- There are several sort of component that forms negative impact on profit
of M&S and this is a tax rate as well as legislations. There are several types of stock that must be
import from nation named as East Asia and China which impose negative effect on operations of
organisation.
Economic elements- It refers those entire factors that is related with economy of nation like
foreign exchange, gross domestic all these factors can create instant impact on operations of
firm.
Positive effect- Due to maximisation in borrowing cost within UK which forms
optimistic impact on profitability of M&S.
Negative impact- It is determined that they centre on expanding its firm and the
establishment supported to grocery market within UK that imposes negative impact on company
(Quinlan and et. al., 2019).
Social factors- It analyse all aspects that are supported to taste and preferences of user. This is
related with cultural aspect within company dealing.
Positive effect- It is assess that the person prefer healthy food therefore the firm is
adequately centre on offering healthy food that maximises profit and revenue of firm in
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upcoming time. For example, there are around 65% of trustworthy purchasers within UK that are
crucial for M&S in upcoming time.
Negative impact- Cause of brings changes, M&S needed to invest in study of marketing.
For instance, the current covid 19 pandemic situations has lead to lower preferences of people to
visit or go by physical stores that minimise sales of company and minimise profit (Alsaad, A.
and Taamneh, 2019).
Technological factors- Cause of bring advanced technology that imposes optimistic effect on
operation and function of company. For this process, the establishment needed to utilise creation
as a lead generation for execute their work in an effective form.
Positive impact- They introduce innovative technology into outlets for developing
experience level of user. This supports in maximising profitability in upcoming time. For
example, M&S centres on having own websites as well as payment systems that directs to
optimistic impact on user. It supports in saving time during specific phase of time duration.
Negative effect- Cause of introducing of technology, it requires huge fund that creates
negative effect on aim of business venture.
Environmental factor- It is related with establishment that needed addressing all components or
element for managing sustainability connected to atmosphere.
Positive impacts- M&S centres on utilising accessible resources an minimises carbon
footprints which develops brand value connected to company in the market place.
Negative impact- Due to maximisation in utilisation of bag of plastics imposes
unfavourable impact on ecology of enterprise.
Legal factor- It refers element that is associated with law that connected to government that
considers instant influence of subordinate within company.
Positive impact- By launching law such as law of commission, M&S accomplish profit in
future period of time (Kozubikova and et. al., 2019).
Negative effect- Here is diverse kind of legal action that is faced by M&S. There is need of
huge amount of investment in order to put down this kind of activity.
CONCLUSION
From of the above defined report, it is evaluate that business atmosphere refers internal and
external atmosphere that imposes effect on functioning level. There is evaluation of diverse
companies according their size and scope of business enterprise. There is an also description
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towards sole trader establishment, limited liability partnership and others. Also, they also define
organisational structure and how it creates direct effect on efficiency of enterprise. In help of
this, the PESTEL analysis is also utilised for evaluating external atmosphere of business
company.
REFERENCES
Books & Journals
Keiningham, T.L., Perkins-Munn, T. and Evans, H., 2003. The impact of customer satisfaction
on share-of-wallet in a business-to-business environment. Journal of Service Research, 6(1),
pp.37-50.
Hans, V.B., 2018. Business environment–conceptual framework and polices. Internatioal
Educational Scientific Reseach Journal, 4(3), pp.67-74.
Sivarajah, U. and et. al., 2020. Role of big data and social media analytics for business to
business sustainability: A participatory web context. Industrial Marketing Management, 86,
pp.163-179.
Čepel, M. and et. al., 2018. Business environment quality index in the SME segment. Journal of
Competitiveness.
Mutalimov, V. and et. al., 2020. Methodology comprehensive assessment of the business
environment in the regions of Russia: introducing business environment into education
system. Journal of Entrepreneurship Education, 23(1), pp.1-14.
Arsić, S. and et. al., 2018. Family business owner as a central figure in customer relationship
management. Sustainability, 11(1), pp.1-19.
Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to competitiveness in
fast changing business environment. In Competitiveness in emerging markets (pp. 3-11).
Springer, Cham.
Quinlan, C. and et. al., 2019. Business research methods. South Western Cengage.
Alsaad, A. and Taamneh, A., 2019. The effect of international pressures on the cross-national
diffusion of business-to-business e-commerce. Technology in Society, 59, p.101158.
Kozubikova, L. and et. al., 2019. The impact of political factors' perception on suitability of
international business environment: the case of startups. Economics & Sociology.
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