Risk Identification and Analysis for Tidal Industry

This assignment involves a comprehensive analysis of the tidal industry in the United Kingdom using a PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) approach to identify potential risks. The report covers various sources, including academic articles and online resources, such as 'PESTLE Analysis' and 'SWOT Analysis'. It also includes references from relevant studies on corporate entrepreneurship, solar cells, global economic engagement, family business succession, sustainable innovation, and business model evolution.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose of private, public and voluntary sector and its legal structure.................................1
P2 Size and scope of M&S and one organisation from the public and voluntary sector............2
P3 Interrelate different organisation functions and its basic objectives......................................3
TASK 2............................................................................................................................................5
P4 Impact of positive and negative on macro environment depends on business operations.....5
P5 SWOT analysis of Marks and Spencer..................................................................................7
P6 Interrelationship with external macro factors and strength and weakness............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment refers to that process which help in analysing internal and external
factors of company which occurs during productivity of products and services. An organisation
can carry out various activities and functions which help in increasing growth and success of
firm in proper manner. It is the main responsibility of company manger is to check that all
activities and functions should be organised in effective manner. This will include buyers,
sellers, manufacturing, marketing, management etc. There are different firm who have various
scope and some basic purpose which assist in organising these sectors such as public, private and
voluntary organisation (Edquist, 2010). The working style is different of every person and it is
important for reach the target goals and objectives. Manager has to analyse all workers
performance and also evaluate functions of a firm. Marks and Spencer is private organisation
which is retailer company. They provide various types of products such as home appliances,
clothings and food items. It has almost 979 stores which is situated in UK.
TASK 1
P1Types and Purpose of different kinds of organisations
Private company- This type of firm can issue shares but its shares are not traded on
stock exchange. This means that it has shareholders but the shares are exchanged privately
within its members. A private organisation is owned and managed by an individual. The sole and
basic purpose of private ownership is Profit earning. Every firm which has minimal government
intervention ,is formed with the purpose of making Profit and where merit is is the only criteria
considered for promotion is a private Limited company.
Example: Marks and Spencer- Founded in the year 1884 by Michael Marks and Thomas
Spencer with the motto of earning profit n it became the first retail company of making Euro 1
billion profit. It mainly deals in Luxury Food and clothing segments (Edquist, 2010). The
company's turnover tremendously increased from approx.8500 to 10 600 billion in the year2008-
2017.
M&S follows flat organisation structure. This means that there is minimal gap between
employees and top management and thus encourage employees to be part of decision making
process. Being a private company the liability of its members is limited to the extent of its shares
owned. They need not sell their private assets to pay off company debts. Another advantage is in
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case of death of partner or owner the company will remain to be continued. The firm also enjoys
tax advantages as its tax is lower than taxes incurred by a corporate firm.
The minimum number of members required to start a private company is 2 whereas
maximum members allowed is 200.A private company enjoys exemption from provisions of
Companies act. It may at any time buy back its shares, redeem them, or distribute profits to its
members. A private company is not required to hold AGM unless its mentioned in Articles of
Association. Mostly the shareholders are the family members of the owner .
A Private company can any time become a public company by issuing IPO , paying stock
exchange fee, underwriters fee and other fees required.
Public company- A company which sells its shares through Initial Public Offering to
general public and is listed on stock exchange. It involves a lot of government intervention and is
answerable to its shareholders for the acts of the organisation. The goal of private organisation is
to distribute profits among its shareholders in the form of dividend every year and also fulfilling
some social obligation toward the betterment of its society.
Example- NHS (England)- National Health Services is a publicly owned organisation
which promises to provide all type of required medical services to every resident of the country
free of cost (Grimpe and Kaiser, 2010). The Company is mainly funded with general tax or by
Insurance premium. In 2017 NHS employs nearly about 11,87,125 including Doctors, nurses,
interns and managers. Almost every doctor and nurse of UK works in NHS. Its also trains new
Doctors of England.
Voluntary Organisation: Here a group of individuals come together by their own choice
to fulfil l a common purpose or goal. It is a Non profit organisation and is mostly formed to serve
its society. Example – Oxfam was founded in the year 1942 by a group of volunteers with a
purpose to eradicate profit and reduce injustice. It helps people to become financially
independent. The organisation also give relief services in different parts of the world. Oxfam has
mentioned that the richest 8 percent almost possess wealth equal to poorest 50% of people
around the world. It has carried out various activities, shops, campaign, fundraising in different
places from time to time. Oxfam has extended its services to many countries including New
Zealand, Australia, Netherlands, Denmark, India.
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P2 Size and scope of M&S
Mark and Spencer- M&S has 1,433 stores around the world. It has 3,000 employees
working in it and around 65,000 people are associated with it. The main objective of this
company is to provide high quality products. M&S believes in flat organizational structure. Such
type of structures includes limited levels of management amongst top level and front-line
workers. It is helpful to motivate employees in effective decision making. Because of this,
communication between top level and lower level becomes easier which facilitates in quick
problem solving (Hoang and Rothaermel, 2010). This structure is a pyramid shape structure but
it is broader and flatter then traditional ones. M&S can achieve competitive advantage by
expanding its business. It can develop its business by adopting new and innovative techniques.
This will help in introducing new products to compete in global market spread the brand across
the territories.
NHS- NHS provides services like dental, eye care, pharmacy, mental, emergency
services and many more most of them are delivered free of cost to poor economy people. The
main service and products of organisation is health care services. It employs around 1.5 million
people amongst the top five largest workforces of world (Helms and Nixon, 2010). It has
qualified workforce of 150,273 doctors, 40,584 general practitioners, 314,966 nurses, 18,862
ambulance staff and around 111,127 hospitals. NHS is having a lot of scope, if it takes feedback
and views from society to work more efficiently. Since, it is amongst largest organisation of
world, so gathering views from staff, patients, taxpayers and general public will help in long
term growth. It can be done by studying public,s perception, opinion ,and whether they are
satisfies with the services or not.
Oxfam- Oxfam is an international organisation working for charity purpose. It has 20
organisations working for it as partners and as local communities. Large population of world is
facing problem of poverty. It works for poverty around 90 countries. Oxfam has 5,300
employees and 22,000 volunteers working for it all over the world. It will make its international
programmes, working with 16 member organisations. Oxfam has to focus on problems like
economic inequality and social justice (Jung, Kim and An, 2011). It has to focus on new and
innovative ways to lift people out of poverty. Campaigning strategies need to be made more
effective an d efficient. More focus is to be led on fundraising techniques. It has huge scope in
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countries where people are below poverty line and unable to find living shelters and food. It can
provide more employment to people and help in reducing unemployment.
P3 Relationship between organisation functions and its objectives
In this context, Marks and Spencer is an international retailing store which is based in
UK. They serve food items, home products and branded clothes and also develop innovative
services which easily attracts large number of customers. It is that firm which assist in providing
best quality services for cover whole market place. By this, there are many buyers who are
attracted towards cited company goods and services. An organisation is specialised in producing
women's and male clothes, foods, cosmetics and also offers gift items (Kolios and Read, 2013).
They will follows hierarchical structure which main focus on controlling and managing all firm
branches which fulfil customers demands and wants. According to the structure, company will
distributes whole work or task equally in different departments for achieving desired goals and
objectives. The foremost aim of marks and Spencer is discussed as follows:
The main motive and policy of this organisation is to provide on time delivery of best
services at cheap cost.
 They usually develop and make entire nation and state.
 Enhancing in selling and distributing of products by applied different promotional
strategies within an enterprise.
 Main focus of firm is to establish reputation by making innovative products at large
market place. They try to develop that goods which are free from harmful gas that will directly
influence the surrounding of the society.
Sales and marketing- In this department, there are various strategies which help in
promoting various products and services among customers. They also make innovative goods for
gaining attention of target buyers.
Administration- It is that department which support in difficult situations and try to solve
every business related issue or problem in proper manner.
Financial- it is the backbone of every organisation because this departmen5t help in
managing and controlling budgets in effectively and efficiently. The motive function of this is to
record all financial statement and also prepare budgets for analysing cost spend in last year. They
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will support in predicting last year budgets and future amount that help in evaluating upcoming
activities of the firm.
Human resource management- This department is very important in every organisation.
It will help in managing and controlling activities which are related to employee performance,
salary issues, incentives and some other. Marks and Spencer manager has responsible for hire
right and capable person for job profile.
Customer service- the main motive of this department is to listen all product related issue
and problem of customers and try to solve it. They develop innovative products and services
which easily attracting large number of customers towards them. They will satisfy buyers needs
and wants by offering various types of goods to them.
Information technology- This is that department which assist in producing innovative
products and also promote goods and services. They investigating whole market situations in
better manner. They also collects and gather all information which are related to products and
services which manufacture by their competitors.
TASK 2
P4 Impact of positive and negative on macro environment depends on business operations
Marks and Spencer play an important role in analysing internal and external factors
which directly affected the business operations of department. Production department help in
consisting different activities that will affects the factors in both positive and negative structure
which adopt wide concepts (Grimpe and Kaiser, 2010). For this, advantages and disadvantages
will modify the changes in macro components which are as follows:
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 Political factors- The authorities has liable for making essential laws, rules and
regulations which should be strictly followed by Marks and Spencer company. At the
time of enlargement, criterion and regulations must be adopted by cited firm in proper
manner (Helms and Nixon, 2010). Also they should mercantilism crossways the national
territories. This will directly affected on marks and Spencer business operations which
are discussed as under:
Positive impact- Government made laws and rules are must be relevant for small and big
level organisation. The purpose of making new rules and regulations for developing free market.
Marks and Spencer try to adopt these laws for increasing profit in better manner.
Negative impact- These rules and norms are hardly choose that business at the time of
transferring products and services in internationally. It will create barrier and main hurdle in the
path of growth and success.
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Illustration 1: PESTLE Analysis, 2014
(Source: PESTLE Analysis, 2014)

 Economical factors- Any changes occurs in taxation or rate of exchange that will directly
affected on these factors (Hoang and Rothaermel, 2010). The currency rate is basically
determining the whole economy in various manner.
Positive impact- Free trade policy motivate present firm for enhancing import and export
delivery of goods across borders are done by marks and Spencer company which help in earning
more profit.
Negative impact- Some time exchange of foreign currency rate has high impact on
previous deals of organisation and this will sustain heavy loss while also reducing in success
level. Day by day decrease in economic growth rate which affects the entire business operation
of firm.
 Social factor- It is necessary for organisation is to analyse target consumers demand and
wants and then according to their choice they will develop new goods and services
(Jung, Kim and An, 2011). Firm required to adopt latest trends and fashion products
which attracting large number of buyers towards specific company goods and services.
Positive impact- They usually introduce and promote new product with best quality
services which easily gain attention of customers towards particular commodities. In an
organisation, production department try to produce that goods which are satisfy buyers demand
and wants in effectively.
Negative impact- Increasing in sale of international goods affected the cited firm profit
and reduces success and growth rate (Kolios and Read, 2013). Always implementing changes
will directly affects business operations and functions of enterprise.
 Technological- An organisation should adopt latest technologies and methods which help
in increasing their growth and reputation in positive manner. There are some negative and
positive points which support in identify this factor impact.
Positive impact- the most important benefit of innovative technology is to produce
various products in less time period and also fulfil demand of customers in short duration. This
will assist in enhancing knowledge and skills of employees and help in reaching goals and
targets.
Negative impact- If employee dose have any knowledge of this latest adopting
technology so that it affects directly to their performance and reduce firm growth rate.
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 Legal- It is the external factor which directly impact on business operations and functions
in effective manner (Kuratko Hornsby and Covin, 2014). This factor is important to
analyse government laws and regulations which help in performing basic functions.
Positive impact- The main motive of this factor is to protect customers from purchasing
harmful products and any other dangerous items.
Negative impact- There are various rules and regulation which should be followed by
firm and also adopt government develop policies and plans.
 Environmental factor- This factor is mainly focus on business surrounding and
atmosphere of company which maintain wastage of raw material which thrown by firm.
Positive impact- It is helpful in maintaining wasteful materials and products which does
not use by organisation. This will main role in recycle all goods in fresh products.
Negative impact- Production department can not make inadequate resources which
determining on business operations and functions.
P5 SWOT analysis of Marks and Spencer
Marks and Spencer is multinational company which sell various types of products and
services and also fulfil customers demands and wants (Lovejoy and Saxton, 2012). An
organisation can expand their business operations for attracting large number of buyers towards
their particular goods and items. SWOT analysis assist in identifying strength, weaknesses,
opportunities and threats which directly affects business operations and its functions (SWOT
Analysis. 2017). SWOT Analysis of Marks and Spencer are as follows:
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Strength- It is that factor which help in exploring person skills and knowledge and by this they
easily achieving desired targets and goals. They will reach company objectives in limited time
period (Miller, Yablonovitch and Kurtz, 2012). Marks and Spencer is popular branded company
which provide different type of commodities and services that include home products, food
items and some other goods. They are famous for their fast delivery services function and
activity of products. There are large number of skilled workers who works for reaching target
goals and objectives in proper manner.
Weaknesses- This is that element which shows the invisible barriers of firm that will directly
affects the growth and success of organisation. Marks and Spencer face many external
challenges which arises during productivity of goods. Inadequate funds create main is within an
organisation (PESTLE Analysis. 2017). Also they try to solve disputes and conflicts between
employees and managers.
Opportunities- The cited firm need to expand their business operations and locations which
help in attracting international customers (Milner and Tingley, 2011). They should also provide
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Illustration 2: SWOT Analysis, 2017
(Source: SWOT Analysis, 2017)

innovative goods to their buyers for enhancing business growth and success. According to the
change, firm will adopt changes in their trends which assist in gaining attention of customers
towards Marks and Spencer products and services. They can also adopt latest techniques and
equipment for finishing particular task or work.
Threats- There are various competitors of cited enterprise that will directly influence their
current plans and policies. Marks and Spencer main threats are related to direct entry of
international companies. Always alteration in customers choice and preferences. If competitors
also provide similar types of goods and services which will reduces company sales in large
market place. Some authority made rules and norms, restrict to exchange goods and services
across national territory (Molly, Laveren and Deloof, 2010). An organisation face different
types of problem related to supply and deliver of goods.
P6 Interrelationship with external macro factors and strength and weakness
Marks and Spencer has to analyse internal and external factors which directly affects
business growth and success. This is international company which expand their product branding
in all over the world. PESTLE analysis are discussed as under: Political factor- The government laws, rules and norms are sometime influence
marketing strategy of the firm. Large amount of capital are spend in paying tax which is
directly affect on business profitability and most of income are spend by it. For example,
M&S has favoured in Ecs free trade agreements and also led to reduced the cost.
Company will start to plan a CSR activity but lack of authority schemes this will
negatively impact on the firm process. Economical factor- the exchange rate of foreign currency will directly affects whole
success and growth of the firm in proper manner. When economic growth rate of
company will directly impact on business functions and activities it is treated as
weaknesses. Social factor- Whole community is bunch of individual and group people. The consumer
has to consume different types of goods and organisation can depends on choice of
different customers. Its strength is to promote products and services to their customers in
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effective manner and when latest trends are not adopted by company then it will reduce
number of buyers. Technology- It help in increasing latest techniques and methods and it will assist in
attaining accurate goals and objectives (Boons and Lüdeke-Freund, 2013). Marks and
Spencer support in adopting new and modified technology which smooth running of
business functions and activities. Weaknesses is always converted into strength and they
required to adopt latest and new techniques and methods for attracting buyers. Legal factor- It is important for company to follow all laws and rules for protecting seller
and customers rights and duties. If government will change laws and regulations then it
will directly affect business operations and functions so it is treated as weakness of firm.
 Environmental factor- Resources should be grow on the basis of environment
encompassing and some attribute goods are produced with the help of raw material
(Business and the environment. 2017). These inputs are adopt by external surroundings.
CONCLUSION
As per the above discussed report it can be concluded that business environment has two
factors which are external and internal that directly affects on business operations and its
activities. Marks and Spencer have different size, scope and structure that will help in achieving
desired goals and objectives. They will analyse whole market by using two methods such as
SWOT and PESTLE analysis which assist in identify internal and external factors. Production
department help in consisting different activities that will affects the factors in both positive and
negative structure which adopt wide concepts.
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REFERENCES
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