Unit 1: Business and the Business Environment

This document discusses the different kinds of organizations, their size and scope, interrelation among functional units, and PESTLE analysis. It focuses on the case of Marks & Spencer, a well-known retailer. The document provides insights into private, public, and voluntary organizations, their goals, objectives, and legal structures. It also explores the interrelationship among different functional units within an organization. Additionally, it discusses the positive and negative impacts of PESTLE factors on business operations. This document is part of Unit 1: Business and the Business Environment.

Unit 1: Business and the Business
Environment

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Different kinds of organisation..............................................................................................1
P2. Size and scope of various organisation.................................................................................4
TASK 2............................................................................................................................................5
P3. Interrelation among different functional units......................................................................5
TASK 3............................................................................................................................................7
P4.PESTLE Analysis and their positive and negative impact.....................................................7
TASK 4..........................................................................................................................................10
P5. SWOT Analysis...................................................................................................................10
P6. Interrelation among micro and macro factors.....................................................................11
CONCLUSION..............................................................................................................................13

INTRODUCTION
Business environment is defined as surrounding of firm that is associated with overall
aspects as well as factors which either influences or affects business functions. Moreover, this is
essential factor for entity to determine particular atmosphere as this facilitates a prominent
insight to firm in context to these prospects (Baber, Ojala and Martinez, 2020). Also, this aids to
maximise development scope when this comes towards formulation of tactics and functions. For
this report, the chosen company is Marks & Spencer, it is a well known retailer and its
headquarters is in London, England, UK. The topics which are going to be discussed in this
report are private, public and voluntary organisation’s size, scope, intent and legal structure.
Moreover, the interrelationship of various functional areas, PESTEL analysis and SWOT
analysis are described. Apart from this, strengths and weakness interrelations with external
environmental components are also discussed in this report.
TASK 1
P1.Different kinds of organisation.
As this can be identified that business is depends on competencies as well as experiences
by target market. There are numerous types of firm which are classified depend upon their goals,
nature and objectives. Basically, there are 3 forms of organisation that are described underneath:
Private sector organisation
It plays vital role into economical system of country. Moreover, this basically performed by
entity as well as individuals with clear intent of formulating anticipated profit (Bolton, 2020)
Therefore, the effective illustration of this is Marks & Spencer that is a leading multinational
retailer which deals into clothing, home, foods and many more. it is established in 1884 through
Michael Marks as well as Thomas Spencer.
Various kind of private sector organisation
 Joint venture: It is regarded as the agreement of business among two or more partners
that agree in order to pool their resource for specific objectives.
 Sole Proprietorship: This is defined as one of the simple kind of enterprises in which
individuals may become competent for performing business which doe not has any lawful
firm. In this, person who own enterprises individually is responsible for overall of its
debts. For example- Ma Baker.
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 Partnership: This is regarded as formal types of business among two or above
individuals who are agreed for handling and perform business function in order to share
its profit in mutual way.
 Features: the key features of M&S is its administration is that, through individually or
above without participation of any kind of government.
 Goal: The key goal of M&S is to formulate an inspirational quality which is accessible
entity for other one. it includes quality based product or services for audiences.
 Purpose: The key purpose of M&S is to obtain profit and become a well known entity
within competitive marketplace. Moreover, their intent to facilitating effective quality of
goods to its potential audiences to gain high profit.
 Objectives: The key objective of M&S is to standardise a benchmark for other one
depends upon entity’s products quality.
 Legal feature: The respective company comply public limited firm and also listed in
London Stock exchange.
Public sector organisation
It is those entities that are governed through government in order to render goods or service
for communities’ benefits (Ezeogidi, Ezeogidi and Akpunonu, 2020). For example, NHS which
renders healthcare services for overall individuals depends upon their health care needs rather
than identifying capability for paying for this.
 Different kind of Public sector organisation
o Public or statutory corporation: This is considered as a business forms that taken into
consideration by special act of Parliament. The key aim of this is to ensure the
welfare of the individuals.
o Departmental undertaking: This is regarded as one of the traditional form of business
which is performed, financed as well as controlled by other government.
 Features: The key feature of NHS is to operate within direct control of government and
some of them are even formulated within Statutes as well as Companies act. This is semi-
autonomous into nature.
 Goal: They key goal of NHS to work for improving individual’s health by rendering
effective quality of services and experiences.
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 Purpose: The key purpose of NHS is rendering higher standards of Excellency and
professional practices to patients and users those who avail services. Also, they perform
towards facilitating standards health care services which secure.
 Objectives: The key objective of NHS is to
 Legal feature: The legal feature that NHS is to comply legislation as well as rule for
public corporation which is financed by parliament of United Kingdom. Also, this
includes frameworks of governments set out individual Board Profiles; Matters reserved
to the Board and Committee terms of reference.
Voluntary sector organisation
These are those entities that receive financing from teams, individuals and states for acting
for person advantages beside shareholders (Goslin and Kluka, 2020). Their key aim is to
formulate societal affects without focusing upon profit. For example, Oxfam, this is a charitable
entity which was established in year 1942.
 Different kind of voluntary sector organisation
o Unincorporated Association: It is a team of single or many individuals which is joined by
mutual consent for legal act for organising profitable gaols. Moreover, this do not has any
lawful rights.
o Charitable Trust: This is a form of enterprises which basically formulated for
accomplishing societal advantages for individuals. Moreover, it is also undertaken as
unchangeable trusts which are formed for intent of charity.
 Features: The key features of Oxfam are that, this is formed and controlled by its own
member without any eternal atmosphere whether workers are paid or unpaid.
 Goal: The key goal of Oxfam is to formulate a world without poverty and in injustice.
 Purpose: The key purpose of respective firm is to compromise by facilitating primary rights
and freedom to communities as well as individuals who are needed (Indounas, 2020)
 Objectives: The key objective of Oxfam is to develop a permanent solution for injustice as
well as poverty.
 Legal feature: The respective entity comes under lawful structure of Unincorporated
Association. Moreover, this was basically formulated with a contract among person in order
to facilitates solution for poverty. Also, The Council of Governors are appointed from
stakeholder organizations together with neighborhood Councils or elected through the
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contributors of the believe. basis trusts offer and expand healthcare according to middle
NHS concepts - unfastened care, based on need and now not capability to pay.
P2. Size and scope of various organisation.
For overall organisations, it is needed to establish objectives which could be for long and
short durations which it seeks for attaining the vision, mission and values which plays essential
role within formulating tactics of organisation (Jánica-Vanegas, 2020). So, the sizes as well as
scopes of various entities are described underneath:
Basis Private organisation
(Marks & Spencer)
Public organisation
(NHS)
Voluntary
organisation
(OXFAM)
Size Marks & Spencer is
operating their
business in all over
the world. Along with
this, the number of
staff who are
performing into this
particular entity are
approximately 78,
597. Also, it is a
larger firms.
Respective
organisation is known
for their health care
services provider that
render effective kind
of health services to
individuals as well as
having regarding 106,
43 doctors, nurses is
285, 893 and also
several equipments,
technical staff as well
as professional
management. It is also
a larger firm.
Oxfam is one of the
known voluntary
organisation that has
large reach to
audiences for
performing and
resolving issue for
poverty with aids of
limited voluntaries.
Moreover, this
reached towards
several areas by
spending a specific
amount of their
welfare. It is also a
larger firm.
Scope The scope of Marks &
Spencer is to expand
their operations as
well as function of
business within
In order to explore
their experiences of
effective quality
services, NHS is
looking towards
The Oxfam operates
their services into
above or more than 90
nations along with
several partners as
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various countries for
enhancing the
revenues as well as
sales of entity. It
performs their
business
internationally.
expanding its
functions and
operation into various
areas of Northern
Ireland, Wales and
Scotland wherein this
perform with
restricted staff. It
performs their
business
internationally.
well as another for
assisting person to
redevelop their
livelihoods by
developing permanent
changes. It performs
their business
domestically.
TASK 2
P3. Interrelation among different functional units.
Within organisation, several departments are based on its firm’s structure. Basically, this
aids them to set up networks of relations which classified activities within many units. Few of
them are described underneath:
 Finance as well as Marketing: In Marks & Spencer, role of marketing function is to
ascertain present trends of market and desires of consumers in order to develop anticipated
products. In this context, finance units renders own assistance to them for performing
marketing research in effective in order to increase the opportunities of entity’s
development.
 Marketing as well as human resource: In entity, both marketing as well as human
resource management plays crucial role. The marketing units works in order to promote
their business product and also formulate opportunity of product sale by identifying the
desires of marketing. While human resource management perform to train, recruit, select
and other in order to facilitates competent workforce. Within Marks & Spencer both
functional units works in together way as human resource department hire proficient
workers who are capable to increase marketing sustainability opportunities.
Organisational structure of Marks & Spencer
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Figure 1, Marks and Spencer Group, 2020
Respective organisation usually comply flat structure for their enterprise and its activities of
all functional units based on decision taking methods into particular framework. The key purpose
of implementing respective structure is to inspire workers for participates within decision making
methods of organisation (Kosenius, Juutinen and Tyrvainen, 2020). Along with this, this also
assists them to reduce bureaucracy as well as build enthusiastic of workers by performing their
engagement within firm’s activities. By it, respective entity may maximise its enterprise
productivity that aids them in maximising their development opportunities.
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TASK 3
P4.PESTLE Analysis and their positive and negative impact.
For business enterprises, it is vital to identify many macro factors and its effects that would
be supportive in decreasing negative impact of that factors as well as can avail opportunities
within present business atmosphere (Nwachukwu and Vu, 2020). Therefore, respective business
enterprises apply PESTEL analysis that is described underneath:
 Political factor: This directly affect on M&S as it operates in many countries due to
which they have to comply various requirements which obligatory on them by
government. Like UK free trade policies with other government has optimistic affects on
them as it would decrease many desires implications.
o Positive impact: This has optimistic impact on firm. But Brexit has pessimistic
affects upon organisation due to their contact of free trade would not be available
to them.
o Negative impact: Moreover, their cost of production would maximise which
would have adverse impact on business productivity.
 Economical factor: Firm has to do few adjustments in its norms depends upon prevailing
economic circumstances (Sneed and Verhoef, 2020). Some economical factors that it
have to undertake are inflation rate, employment rate and so on.
o Positive impact: M&S has been operating on larger scale into recent market area
but trends of United Kingdom highlights that shifting takes place towards smaller
retail shops. Due to mark up price have minimised which permit them for
becoming premium brand so, it is helpful for them for developing reasonable
goods to whole which has optimistic impact on maximising their sales.
o Negative impact: In UK, consumers purchasing power minimising which shift
them towards local smaller retailer beside of premium brand and this adversely
affects firm’s profit.
 Socio-culture factor: It have appropriate affects on entity as this focus regarding choices,
preferences of audiences. Therefore, it aids them to formulate their goods based upon
desires.
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o Positive impact: By increasing demand of entity’s ready meal sector has vital
market share as this becomes successful to tap particular market segment by
identifying desires and serve them meal according to their expectation.
o Negative impact: As this have been operate form long duration so this have
reputation but this have not introduce any unique items for their audience due to it
they consider to be non trendy by their consumers.
 Technological factors: It described trends within technology that business have to adopt
for satisfying their audiences.
o Positive impact: Respective entity has opted few forms of self-checking counters
into their retail store which has rendered audiences an developing experiences of
shopping as with this its billing method get minimised (Sprindžiūnas, 2020).
Also, with maximising online trends of shopping that is accepted by entity due to
that this rendered whole their goods by online means and having affect on
respective business.
o Negative impact: This continuous development into technology affect costing
framework of entity.
 Legal factors: The entity has to comply many norms that obliged upon them so that this
can ensure ethical business function and appropriate reputation within its audiences.
o Positive impact: This complies overall a legal aspect which ensures that it have
ethical code of conduct within their entity and has optimistic impact on them.
o Negative impact: M&S has to goes through many lawful conflicts due to which
the brand reputation of entity get affected adversely.
 Environmental factors: With maximising person apprehension the entity has to
undertake many impacts of their function of business on atmosphere.
o Positive impact: Respective firm has consider sustainability into their offerings
due to that they have affirmative impact upon their enterprises as government
support them into it.
o Negative impact: But it increases problems and cost within entity’s process due to
it shareholder get affected.
NHS PESTEL Analysis
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 Political factors: The political surroundings into country is influencing at NHS. Some of
the impacts which have affirmative and adverse impact on NHS political atmosphere are:
o Positive impact: Within UK, political stability is aspects that influence NHS
business in favourable way.
o Negative impact: NHS administrative are not become competent to concentrates
upon longer term tactics as regular modification into country’s political
atmosphere that adversely impact organisational development.
 Economical factor: This incorporates currency rate, economic development and others.
o Positive impact: Into United Kingdom, government establishes specific austerity
measure for dealing with economical crash so under- cutting budget measures
have affirmative impact on entity so that they can deal with monetary crisis.
o Negative impact: Because of Brexit, circumstances of inflation enhance as well as
commodities cost and good are maximised that pessimistically impact NHS
enterprises.
 Social factor: The societal surrounding of country in NHS is present would identify into
changes which they needs to develop. Some modifications which have been caused
within respective entity that affirmatively and adversely impact business.
o Positive impact: NHS is plan to be located within effective areas so that person
may reach hospital when it needs care emergency.
o Negative impact: Because of COVID-19 problem, number of patients is enhanced
as well as because of having restricted staff and hospital capacity, the business
impact unfavourably.
 Technological factor: Technology is formulating in faster way as well as NHS have to
implement this so that they may be ahead into rivalry. So, this have influences upon
NHS:
o Positive impact: Technology affirmatively impact NHS in respect of providing
surgical tools and equipments as well as unique instrument associated with
medical facilities.
o Negative impact: Higher utilisation of technology in context to manage consumer
as well as patient information may adversely impact their business.
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 Environmental factor: All entity is lawfully as well as morally responsible for
contributing towards atmosphere into which it sustain. The affects of surroundings into
NHS are as follows:
o Positive impact: NHS may utilise some kind of disposable tools and equipment
which cannot able to harm surroundings.
o Negative impact: The present pandemic crisis impact entity’s work atmosphere in
respect of developing pressure and stress upon staff.
 Legal factor: The regulations as well as norms those are undertaken through NHS for
their effectual operations. The affects of them are:
o Positive impact: Respective firm have to generate accounts each year so that the
national authority may maintain records of taxes which it pays as well as revenue
that it gain.
o Negative impact: Modifying regulations and norms of government that develops
adverse affects upon NHS business as well as their patients expectations.
TASK 4
P5. SWOT Analysis.
For determining the internal factors, SWOT analysis is applied by entity as this aids them
to identify strengths, weaknesses, opportunities and threats (Kurniawan, 2020). Therefore, by it,
they many become competent to formulate many tactics as well as overcome from problems
which obstruct growth of enterprises. So, M&S SWOT Analysis are explained underneath:
Strengths Weaknesses
 The key strengths of M&S are their
stringer cash flow that aids them for
expanding their operations easily as
they have efficacious resources.
 The main weakness of M&S is that
they are not investing more amounts in
technology so it have to invest in
technology for procedures integration
exploration that is vital.
Opportunities Threats
 With efficient cash availability, M&S
have competency to expand their
business functions.
 The trends in specific industry lead
towards maximisation of competition
level which directly has affects upon
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respective entity functions.
SWOT Analysis of NHS
Strengths Weaknesses
 Efficacious CQC report that evidences
constant quality delivery and
implementation.
 Its participating, engaged as well as
committed staff with enormous morale
level.
 Its key weakness is, societal services
are not owned with variable rented
estates quality.
 Vacancies into nursing as well as AHP
personnel and issues in hiring and
retaining those workers (Utomo and
Rauf, 2020).
Opportunities Threats
 Perform with private industry,
commercial and third sector as well as
joint NHS facilitators to produce
incomes for Trust as well as improve
health campus upon key sites.
 New framework of ownership for NHS
property driving enhancement into cost
of rented estate.
P6. Interrelation among micro and macro factors.
The entity has to identify opportunities for organisation so that this can become available for
them and accomplish their intent as well as it may also minimise many threats affects (Yulia,
2020). Therefore, the interrelationships among micro and macro factors are explained
underneath:
External factors Strengths Weaknesses
Political factors Free trade contracts render
M&S an opportunity to
expand their operations as
they have stronger cash flow.
But due to Brexit, its
manufacturing cost increases
and this affect their profit.
Economical factors As respective entity is
growing and well known
brand so this renders various
Brexit increase challenges
because of minimisation
within per capita income of
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opportunities to new talents
for implementing ideas. So,
this supports country’s
economical growth.
UK. It affects main reduction
within consumer purchasing
power.
Socio culture factors As respective firm have
stronger client base as this
renders quality products to
audiences by identifying its
requirements. This assists
them to gain anticipated cash
flow.
The Key weakness of
respective entity is lack of
involvement into promotional
activities that divert traffic
towards others competitors
shops. Therefore, due to
lacking into promotion, it is
tough for them to formulate
new clients base.
Technological factors
Respective entity leads
towards its enterprise with
aids of strategic plan method
in which they are much
focused towards advance
technology implementation.
But due to higher war of cost,
it is tough to implement
anticipated technology at all
stages of business function.
M&S weakness is to non
updated technology due to that
they may not become
competent for meeting client’s
choices.
Legal factors The regulatory bodies of UK
facilitate its own contribution
towards M&S in order to
manage its functions in
another region.
The organisation faces various
lawful implications due to
which their enterprises get
influences by their sustainable
practices they can ensure
business growth.
Environmental Factors The efficacious tactics of
marketing with sustainable
practices of enterprises
But eco-friendly
manufacturing requires
effective amount of finance as
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facilitates M&S to achieve its
objectives for expansion of
enterprises.
well as upgraded machinery
but due to lacking into utility
of ecological aspects increase
challenges for M&S.
CONCLUSION
Based upon the above report, this has been concluded that business important is much
essential for entity to maximise their functions into specific country. Additionally, determination
of several kinds as well as intent and description related to scope and of range of several forms of
entity are needed for understanding various aspects related with similar. Along with this,
description of relations among several operation as well as their linkages with firm’s goals and
structure are more vital for ensuring interrelations of these aspects. Apart from this, the internal
as well as external analysis of environment with context to entity is vital for determining
optimistic and pessimistic affect of these aspects on firm.
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Marks and Spencer Group. 2020. [Online]. Available
through:<https://www.theofficialboard.com/org-chart/marks-and-spencer-group>
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