Comprehensive Analysis of Marks & Spencer's Business Environment

This report provides a comprehensive analysis of the business environment, focusing on Marks & Spencer (M&S). It begins with an introduction to the concept of business environment and its impact on organizations. The report then delves into different types of organizations, including public, private, and voluntary sectors, and their respective structures and purposes, with M&S serving as a key example of a private sector entity. The analysis further explores the interrelation of various organizational functions like finance, HR, and marketing. The core of the report comprises PESTLE and SWOT analyses. The PESTLE analysis examines the political, economic, social, technological, legal, and environmental factors influencing the UK retail sector, particularly post-Brexit. The SWOT analysis assesses the strengths, weaknesses, opportunities, and threats within the retail market. The report concludes by examining the interrelation of these internal and external factors, offering a holistic view of M&S's position and strategic considerations within its operating environment.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
PART 2............................................................................................................................................4
PESTLE analysis for identifying positive and negative impacts on organisation..................4
SWOT analysis of retail market for identifying strength and weakness of organisation.......5
Interrelation of strength and weakness with external factors of organisation........................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment can be defined as the collection of different internal and external
factors that directly or indirectly impacts on operations of business. These factors undertake
several aspects such as employees, customer needs, supply and demand, management and many
more. Moreover, all above factors influences on organisation environment and situation.
Business environment helps an organisation for identifying business opportunities, identifying
useful resources and improving performance and profitability of business. The organisation
chosen for this report is Marks & Spencer which is operating their business at global level. They
operate their business in retail industry and its headquarter is situated in London. This project
highlights on several types, purpose, size and scope of different organisation. Along with
relationship between different organisational functions. At last PESTLE and SWOT is also be
included in this project along with their strength and weakness with external factors of
organisation.
PART 1
An organisation is explained as a social unit of people which is structured and managed
to pursue organisational goals or objective. There are different types of organisations which are
present in market such as public, private and voluntary. All of this organisation follow a
management structure which determines relationship between different activities of organisation.
Private organisation is one whose right are owned by an individual which operates
business's for earning more amount of profits. Private business raised funds from different
sources such as bank loans, shareholders etc. in order to operate their business at initial level.
The main purpose of private sector is to earn more amount of profit. Further the small
entrepreneurs or business's leads a comfortable life through earning more amount of profits.
Private organisation operates their business's at small level which determines that they are small
in size. While scope for private sector organisation is large as they provide and offers good
quality goods, products and services in society that assist them to earn more amount of profits.
The legal structure which is followed by private sector is sole proprietorship, partnership and
private limited company. Marks & Spencer is an example of private sector business's which is
owned and controlled by private individuals. They operate their business's in retail industry and
offers clothes, grocery product and retail items in market. Majority of private businesses are
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small in size due to which they belongs to small organisation. But this organisation capture large
market area through supplying good quality goods to their buyers. They are different form
medium and big organisation as they operates business's with small number of individuals with a
turnover of up-to 2 billion. The structure followed by M&S is transnational as they invested and
expanded their business's at global level. This determines management operates businesses from
a central area through taking decisions of organisation. In context of size M&S is operating their
business's at global level therefore they are large in size. While in term of their scope it is large
as most of business's is being globalised in international market. The term sole proprietorship
refers to a business's which is operated by a single entity. The term partnership consists in which
more than two individual operates a business's through partnership in profits sharing. In context
of organisation limited company are those that operates business at operational level through
raising funds from shareholders.
Public organisation is owned by government of a country. They work for providing
benefits to community or society by providing goods and services to them at low prices. To
operate their business function public sector raised funds in the form of taxes. Public sector is
one which managed business's in a particular country for removing problems of society. The
main purpose of public sector is to remove several issue from society by controlling a particular
business's. Public sector organisation managed and controlled business's in an overall
organisation this determines that they are large in size. While scope of public organisation is
wide because most of non-profit businesses are controlled by government. UK is a developed
country and they follow different parliament house such as House of commons and house of
lords. House of common is a representative body that is elected through membership or election.
While another term is house of lords as they belong to British culture. BBC is an example of
public organisation which is managed and controlled by government of UK. Public organisation
relates to micro organisation in which more number of employee's are engage to complete a
work. It is differing from small and large organisation because they manage business's at a huge
level such as in a country. BBC is a global organisation as they provides their services in
different areas of world. Along with it BBS is providing their services in different areas of world.
Another term is related with voluntary organisation which is also known as NGO they
work with motive of serving society. To manage their operations, organisation operates different
charity function, programmes in order to earn more amount of profits. Social enterprise work for
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fulling purpose of removing problems from society. Oxfam is an example of voluntary
organisation which work to reduce poverty and improving living standard of society. They are
small in size as they work at small level to manage their operations. Oxfam is a voluntary
organisation is related with small level which they complete work through managing performs
operations. It is differing from others as they work with motive on helping society instead of
earning profits. Further they are international organisation. Legal structure which is followed by
voluntary organisation is association and trust. Association is a group of individuals that is
established by some members in order to resolve the issue of society. Another factor is related
with trustee they generally work for managing property and money which is received from
donations, gifts and various charity practices. Like finance, HR, production and others all are
engage in achieving organisational goals and objectives. In context of M&S management focuses
on interlinked different departments of structure through which they complete their work within
minimum time period. Moreover, positive relationship between departments leads them to
achieve organisational goals and objectives in minimum time period.
Finance and production departments are two essential parts of organisation which leads
them to achieve more success in industry. On other side this two functions are inter-related with
each other in order to complete their task with more efficiency and effectiveness. Like
production department made budgets with help of finance department. Due to which it is easy for
them to manufacture goods at low cost by reducing waste of monetary terms. For M&S it is
beneficial because it leads them to achieve their objectives such as earning more amount of
profits.
HR department perform a role to recruit potential and capable employees for organisation
that helps them to complete their work with more efficiency and effectiveness. As they are
already aware about the work culture of society. Moreover, on other hand this perspective is
related with factors through which organisation goals are achieved by them with implementing
different perspective. Marketing department is responsible for promoting products and services
of organisation by which they there is increase in organisational activities and functions. Further
it is essential to them because marketing department requires large number of employee's that
interact with potential buyers, retailers and wholesaler in order to increase sale of product. This
results it is easy for organisation for completing their work with new and updated methods to
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complete work in minimum time period. Thus with coordinating with each other it is easy for
organisation to complete their work effectively.
Moreover all departments of an organisation are inter-related with IT (information
technology) department of an organisation. As all the operations of an organisation are
performing their work with implementing technology for completing their work with more
efficiency and effectiveness. It leads them to achieve their goal within appropriate manner due to
which organisation are performing their work that ensures they complete their goal with in
systematic and appropriate manner.
PART 2
PESTLE analysis for identifying positive and negative impacts on organisation
PESTLE work as an effective tool that is used by organisation to understand all factors of
organisation. This is used by them to understand environment aspects such as political,
economic, social, technological, legal and environmental factors. The main agenda to implement
PESTLE in organisation is to identifying market opportunities and threats that helps them to
formulate effective strategy for organisation. PESTLE analysis is conducted in context of UK
retail sector that impacts on macro environment which is mention as follow:
Political factor- After Brexit it is complex for overall industry to complete their goals
with in specified period. Due to this there are regular changes are seen and observe in the
economy of UK. This result in retail industry of UK faces complexity to make constant growth
because of low economic conditions. In context of M&S this factor impact on performance after
Brexit residents of UK are not spending on luxury items or products.
Economical factor- Currently economic expectations of UK are not so fair and
transparent. As UK is a developed country but because of changes in rules and regulation due to
Brexit, the market conditions of UK face several up and downs in market due to which
organisation such as M&S faces problems. It determines it impacts on profits of organisation due
to low sales, less profit and many more. Moreover, management focuses on monitoring changes
that take place in market which leads them to take advantage from recession.
Sociological factor- Sociological factor represent all essential aspects of society which
undertakes and represent their culture, value, background and so on. In context of retail sector
sociological factor leads them to design and manufacture goods according to need of customer's
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because demand of each customer's is depend on value, culture and background of organisation.
This impacts on operations of organisation because they need to design goods that not negatively
impact on organisational culture.
Technological factor- Technology factor is critical in market as they are related with all
operations of organisation which is engage in completing goals of them. retail industry
technological method is useful because it leads them to manage their brands due to which it is
easy for them to approaches customer's easily. Example- In traditional methodology organisation
need to spend too much amount to promote their organisation as a brand. But in present scenario
it is easy for management because it reduces their complexities such as in low investment M&S
approach potential buyers among overall globe.
Legal factors- In order to ensure the interest of local distributor it is necessary for
government to formulate effective rules that provides benefits and keep interest of small and
local individuals. This leads them to complete their work within minimum time period through
providing competitive advantage to them. As local manufactures operate business's at small
level. Therefore government support them by formulating policies in favour of them.
Environmental factors- According to present market conditions organisation, NGO,
industry and government are aware about environmental factors. This determines environmental
conditions of overall globe is changing on short term bases. In present scenario most of
organisation is increase their world due to which they are able to complete their work that does
not negatively impact on environment factors. It results that brand awareness as well as goodwill
of organisation is increase due to good image in society.
SWOT analysis of retail market for identifying strength and weakness of organisation
SWOT analysis is explained as an effective framework that is used for evaluating
organisation competitive position in market. Moreover, it helps an organisation to formulate
strategic planning that leads them to gain competitive advantage in market. SWOT is based on
internal and external factors and current as well as future potential for business's. At last it is
useful because it is fact based and used present and current trends for analysing organisational
strength and weakness. SWOT analysis is conducted for retail market for identifying strength
and weakness of organisation.
Strength
 M&S offers update and new products
Weakness
 M&S is operating businesses at global
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that is developed according to latest
trends and market conditions.
 Management of M&S performed
effective corporate social responsibility
that lead them to increase their
goodwill in market. Organisation such as M&S is focused
on delivering quality products to
organisation. This act results it
enhances better customer's experience.
level due to this it is complex to
manage funds that leads to poor
financial performance.
 Most sale of M&S is depended on UK
market it results that they are strong in
local market. But in international
market their presence is not so good.
 M&S goodwill is impacted due to
return of their goods because of this
customer's loss their trust towards M&S
Opportunities
 M&S has a wide scope of market such
as developing countries. Such as India,
China, Africa and many more, as it is
good option for increasing their market. With simplifying model of their
operation it is easy for organisation for
reshape their clothing market. This
attracts more number of customer's.
Threats
 After Brexit there is change in rules,
policies, legislation of retail market that
generates different issue for
organisation in performing operations.
 The food and cloth market is
continuously changing due to which it
is difficult to predict market constantly.
Interrelation of strength and weakness with external factors of organisation
Political factor- Presence of M&S in local market of UK is too strong this leads to
achieve their goal significantly. Moreover as an local British organisation they perform various
CSR that helps to develop positive relations with government. While in context of weakness this
factor impact after Brexit that reduces their financial performance.
 For positive factor this helps with managing and controlling their business's under
government rules, regulations and policies.
 The negative impact of political factor is to emphasis on their policy due to small
operations of organisation are also time consuming.
Economical factor- All type of monetary transaction came under economical aspects of
an organisation. This includes various factors that are conservative in performing business's
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operations at low rates. Their are several factors such as interest rate, tax rate and subsidiary are
exist in organisation that helps to earn more amount of profits.
 Economic factor is related with strength because M&S provides quality goods to its
customer's. Due to their good quality there is increase in sale and brand value of
products.
 In context of this negative impacts that after change in policy this is complex for
organisation to overcome from their financial performance.
Sociological factor- Culture, values and language that is followed by one country or
customer's is always different from others. In context of UK it is a country in which residents of
different countries are performing their work to earn a good income. Therefore, it is mandatory
for M&S to analysis different goals. Due to which they are able to earn good income by offering
quality products to all type of customer's according to their need and demand.
 In positive factor sociological factor helps them to manufacture products as per market
trends. This helps them to achieve their goal within minimum time period.
 While another factor is that due to difference in organisational culture. It is expensive for
organisation to develop their goals according to each society need.
Technological- There are different aspect are present in organisation due to which it
impacts on structure operations. Moreover, it is related with aspects that impacts on factors by
which organisation complete their task in minimum time period within systematic and sequential
manner. Further it helps M&S to expand their business's among different areas in world
 With execution of technology organisation identifies opportunities such as customer's
demand, market trends, formulation of effective strategy due to which it is easy for them
to gain competitive advantage in market.
 While according to another perspective it is expensive for organisation to implement
technology in market because it is expensive and update in short term period.
CONCLUSION
From the above report it is concluded that success and failure of business's is totally
depend on prediction and understanding of environment by the organisation. To gain top position
in market it is essential for business's to make an effective strategy for retaining their business's
in competitive market. There are different types of organisational structure exist in market that is
different from each other. Like profit, non-profits business's and NGO they are separated from
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each other so they developed strategies according to their structure and goals. At last SWOT and
PESTLE is implemented in this report for better understanding about market and environment in
which business is operated by an enterprise.
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