Business & the Business Environment

This document discusses the different types and purposes of organizations, the size and scope of different organizations, and the relationship between organizational functions and objectives. It also explores the impact of the macro environment on business operations. The subject is Business & the Business Environment.

Business & the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
P1 Determine different types and purposes of organizations such as public, private and
voluntary sectors with their legal structures................................................................................3
P2 Determine the size and scope of different types of organizations..........................................6
P3 Determine the relationship between different organizational functions and how they link to
organizational objectives and structure.......................................................................................8
P4 Determine impacts the macro environment has upon business operations with specific
examples......................................................................................................................................9
P5 Discuss internal and external analysis of chosen organizations in order to identify strengths
and weaknesses..........................................................................................................................11
P6 Determine how strengths and weaknesses interrelate with external macro factors.............12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment Consist of both internal and external factors that affect any
businesses, these factors might negatively a positively impact the business performance. The
internal factors are determined by the factors that are controllable by the businesses, the external
factors are determined by the factors that are not in control of the businesses. The businesses
need to adopt strategic planning and flexible policies that best suits the specific business
environment challenge or opportunities. In the context of Marks & Spencer which is a British
multinational company headquartered in London UK founded in the year 1884 by Michael
Marks and Thomas Spencer. It delivers a variety of services to its Customers such as bank
services, food services, home improvement tools, clothing, perfumes, footwear, beauty products.
Supporting the report with relevant examples, Marks & Spencer is the chosen organisation this
report covers different types and purpose of the organisation, size and scope of these different
types of organizations, relationship between organizational functions and how to link with
organizational objectives, positive and negative impact on the macro environment internal
external analysis to evaluate the strength and weaknesses and how the strength and weaknesses
Relate with the external macro environment (Akhmetshin and et.al., 2017).
P1 Determine different types and purposes of organizations such as public, private and voluntary
sectors with their legal structures
Public Sector Private Sector Voluntary Sector
Definition Public limited
organisation in walls
businesses that can
offer public to raise
capital Under the
London stock
exchange in UK.
With large number of
Shareholders
Private Limited
company includes
which are not listed
under the London
stock exchange and
they cannot raise
capital of funds by
offering the shares to
the public.
Voluntary
organisation includes
those organisation
such as non-profit
organizations or non-
governmental
organisation in nature
that operated for the
sole purpose of

Reduces the financial
burden of such
organisation
(Calabrese and et.al.,
2018).
delivering social
services to the
society.
Purpose The public sector
enterprises operated
for the sole purpose
to deliver public
services such as
public infrastructure a
public transit for
economic
development and
social welfare of the
society.
Private limited
company other part
of the U.K.’s
economy that
contributes to the
economic system of
the country by
operating Business
for the sole purpose
of accomplishing
profitability margin.
Private limited
company are operated
that helps the
economy for
enhancing the per
capita income and
increasing country’s
GDP.
These are been
financed and operated
by different
organisation in order
to deliver social
benefits to add values
in the society, profit
maximization is not
the primarily
objective of such
businesses but social
wealth and societal
developments are the
main purposes of
such a business.
Relation to chosen
organisation
One of the examples
of public companies
is virgin money
company in UK
delivering positive
services in the society
It provides banking
One such examples
for private company
can be Tesco which is
a multinational
Retailer capturing
huge market share
with huge revenue
One of the example
of voluntary
organisation in UK Is
cancer research
organisation in UK,
with the sole purpose
of operating the

services to deliver
financial solution to
its customers (Čepel
and et.al., 2018).
capacity it delivers
Grocery items and
consume utilities, It
accomplishes the
profit margin by
delivering value to its
customers.
business for research
in campaigns to
aware people about
cancer and delivering
social services to
eradicate the disease
in the society.
Legal structure Virgin money is a
challenger bank in
UK they focus on
rendering residential
mortgage, savings,
credit cards and other
including financial
solutions such as
investments and
insurance. It delivers
reliable solutions and
positive and other
including financial
solutions such as
investments and
insurance. It delivers
reliable Financial
solutions and helping
the society by
positive engagement
with the partners
(Eling and Schaper,
2017).
As Tesco is the
retailer does it
provides services to
the customers by key
supermarkets
hypermarkets super
stores and shops in
order to deliver large
number of products
and services to
customers at one
stop.
Cancer research in
UK has become a
leading voluntary
association by
spreading awareness
about the disease for
the purpose of social
cause but taking the
help from doctors,
nurses and social
activist in order to
strengthen The
structure and
accomplish
organizational
developments.
Cancer research in
the UK have nine
clinical trial units,
seven experimental
cancer medicine
Centre, seven
graduate training
programs and other

different units in
order to effectively
carry the internal
management (Fabuš,
2017).
P2 Determine the size and scope of different types of organizations.
Micro enterprises Small Enterprises Large Enterprises
Size Micro businesses
includes businesses
with turnover not
more than £2 million
and less than 10
employees.
Small business
includes businesses
which have the
annual turnover not
more than £10
million and less than
50 employees.
Large businesses
include businesses
with annual turnover
of £2 trillion and at
least 5000
employees.
Scope Microenterprises
includes small
businesses with low
financial capability
and investment
capital, the number of
employees and also
in low numbers. The
government of UK
renders business
support and financial
solutions to the micro
enterprises which
helps to earn revenue
Small organizations
or enterprises
includes those
businesses which are
owned by
independent bodies
with less number of
working staff, the
business operates for
the primarily purpose
of such businesses
the profitability goal
and sustain in the
market for the long
Large businesses are
defined by the
businesses with large-
scale production
capacities and
financial capabilities.
One of the large
business examples
like Marks & Spencer
which is a
multinational British
organisation which
75,000 employees,
marks & Spencer has

and address new
income opportunities
but reducing the
overall business cost
(Georgescu and
Popescul, 2015).
run. One of the
example of micro
business involves
bass brewing
company founded by
Sara John based out
of south Wales, UK.
The small businesses
involve Enterprises
which are owned by
the sole proprietors
some businesses also
work in partnership
in order to enhance
the profitability of the
business. they seek
help from the UK
government support
by different small
business grants
rendered by the UK
government. Marsh
Field Bakery Ltd is
one of the small
business which is
based out of UK
which has 82
employees delivers
bakery products to its
customers (Grigore
and Drăgan, 2015).
Approx. £10.2 billion
in the year 2020.

P3 Determine the relationship between different organizational functions and how they link to
organizational objectives and structure.
The different departments in Marks & Spencer, where in the role of these different
departments is to conduct the business functioning and work in coordination with different
departments to accomplish the determined task.
Marketing & Research and Development Department: The marketing department is the most
integral unit of any business which is responsible to deliver the marketing objective to the
customers and enhance the profitability in sales margin of the business. Marketing departments
works in coordination with the research and development department in order to analyze the
current market trends and the changing customer preferences and demand. The gathered
information from the research and development department helps the marketing department in
order to implement right marketing campaign and communicate the marketing objectives to the
customers.
Finance and Sales Department: Finance department is an another important unit of the
association which controls all the income and expenses of the business and is responsible to
finance different business activities. The finance department works in coordination with other
departments including the sales with the major objective to find out the estimated sales per day
and the business profit and the expenses incurred to per unit of the sales done (Groşanu and
et.al., 2015).
Human Resource and Operation Department: HR department of the organisation is
responsible to manage the internal work process and utilizing the human capital to the most
effective manner to accomplish productivity in business functions. Human resource department
plays an important role in deploying human capital to different business Units, they work with
different departments including the operational department which is responsible to manage the
day today working of the business and meet up the expectations and deadlines to deliver value to
the customers. the human resource Manager in Marks & Spencer deploys the most skilled and
talented employee to the operational departments in order to monitor and control the date today
production process and managing the work to accomplish the determined objectives.

Research and Sales Department: research and development department is responsible to
conduct market survey and research to find out the existing in the current customer preferences
and market trends to establish the desired product and services by the company. The research and
development department works in coordination with sales department in order to evaluate the
revenue generated from the per unit selling unit, to evaluate the strength and weakness of these
selling units in comparison with the external market trend and implement strategies to improve
the existing sales margin by adding new features to the existing product or development of new
products and services as per the current market demand and trends (Huang-Horowitz, 2015).
P4 Determine impacts the macro environment has upon business operations with specific
examples.
In order to evaluate the positive and negative impact of the macro environment on the
business performances Pestle analysis are being supported to render the element information and
strategies adopted by the business, the pestle analysis on Marks & Spencer is discussed below in
brief:
Political Factors
Political factors Marks & Spencer comply with all the political norms and legislations framed by
the government of UK, With the implementation of Brexit wherein Marks & Spencer faced
different negative outcomes including freezed recruitment, difficulty in procurement of the raw
materials, high charges of taxes and so on.
Economic factors
With stable economic conditions in UK, Marks & Spencer acquires high sales margin and
profitability goals in UK. As Marks & Spencer is an international brand thus the business can
easily finance its activities and deliver favourable outputs to different parts of the world. As the
percentage of people with high income earning capacity is higher in UK that brings prosperity to
the association as people have more purchasing power does the business can easily accomplish
its profitability margin (Ištvanić and et.al., 2017).
Social factors

Marks & Spencer satisfies the social values and cultural believes of people with the changing
social trends and customer needs, the association delivers products and services as per the social
values of people in UK. For example, Marks & Spencer promotes his goods and services on
occasional seasons of festivals by giving special rebates or discounts, delivering its clothing of
footwear by following the latest fashion trend delivering, organic food services and so on that
satisfies the social value of the people living in UK.
Technological Factors
Technological factors as the market of the UK economy comprises of advance technological
software is in features, it brings prosperity to the association by adopting the latest technology
that helps the organisation to accomplish efficiencies in the business performance. Some of the
latest technologies adopted by the association involves cloud-based technologies to store the
important business data, radio frequency identification device in order to track people and
objects which helps the company to keep a track over its distribution channels and other
technologies which results many benefits to the company.
Environmental factors
Marks & Spencer complies with all Environmental Safety measures in order to build strong
corporate image in the market place, these environmental measures involves minimizing the use
of plastic rather using paper bags, reducing the use of cash rather promoting digital transactions,
environmental campaigns to aware people about rising environmental concerns, treating the
waste by the production and other business activities, practicing green approaches and others. All
these environmental approaches taken by the company helps to build goodwill and customer
feels reliable that the company is adopting all the measures to save the social cost (Moroni,
Arruda and Araujo, 2015).
Legal factors
Legal factors involve The mandatory legal legislations and norms that has to be complied with
all the businesses in a geographical boundary, there are different employment laws that are being
followed by Marks & Spencer as per the guidelines of the UK government. Some of the
employment laws practiced by the Association involves

Employment rights act, 1996 –the law was framed in order to protect the rights of the employees
and laborers at work. Marks & Spencer complies with this law in order to deliver all the rights
and benefits to the employees especially at the end certainty or any difficult situation, delivering
important leaves such as paternity and maternity leaves.
National minimum wage act, 1998 – national minimum wage act defines that employees must be
given the minimum wages determined in the act, Marks & Spencer delivers fair limitation to the
employees at work in accordance to the performances or the task they perform per day.
P5 Discuss internal and external analysis of chosen organizations in order to identify strengths
and weaknesses.
In order to analyze then turn on external factors and Identify the strengths and
weaknesses of the business. SWOT analysis is been conducted to identify the strengths and
weaknesses of the business.
Strengths
Communication Channel
Marks & Spencer follows flat communicational channel which helps to Reduce the bureaucracy
at work, implement quick decision making, deliver quick the task that has to be performed by
each employee, promote effective communication in the organisation and helps to accomplish
productivity and efficiency at work. Following the flat communication channels helps the
association to manage the internal Workforce of the organisation an accomplishment of specified
organizational task by meeting the standard of working and the determined deadline.
Financial stability
With strong financial stability of the association, wherein the business can meet the rising
customer demands by investing in new business ventures. The financial stability is an important
asset to finance different business activities and maintain business stability in the marketplace
(Rao, 2021).
Opportunities
Online platforms

With the increasing online presence in the global market, online platform of the association helps
to engage with large number of customers and deliver value to them. Online platform helps the
organisation to deliver improved services to the customers by reducing the cost incurred on
reaching each customer segment irrespective of the location.
Weaknesses
Increased prices
Marks & Spencer charges increased prices for the products and services which demotivate the
medium earning income group to purchase the market offerings of the company, high prices
become the weakness where in the association needs to implement desirable approaches even for
medium income earning segment by producing goods and services at lower cost and charging
affordable or low prices to satisfy the existing demand of the medium income customer
segment.
Threat
Competition
The rising external competition also becomes one of the threat for For the association wherein
different new entries and the existing multinational companies acquires a large number of shares
in the market place, it becomes difficult for Marks & Spencer to continue making its stability and
acquire their market share goods.
P6 Determine how strengths and weaknesses interrelate with external macro factors.
The inter-relation of strength and weaknesses with external macro factors are discussed
below:
The increasing competition in the market place where any huge multinational companies such as
Zara captures the large market share and deliver strong brand positioning in the mind to the
customer, the business should start investing in making favourable policies to meet the external
competition such as developing innovative products ideas and features, implementing new and
innovative changes in the business strategy. The rising external competition can Negatively
impact the business performance and capabilities to meet the future set of business objectives.

The increasing global presence of the business in the external marketplace and the high-end
promotions to attract new customer base via online platforms it is you are successful business
strategy that will help the business to sustain the external market place and earn higher revenue
margins (Šoltés and Štofková, 2016).
The company still falls for covering the overall cost incurred to deliver services to the customers
which results in high prices of the products and services instead the company should deploy
more advanced technologies to bring efficiency and reduce the cost incurred which will further
help the business to cut down the prices of the products. The poor services of the business with
higher prices often demotivates the existing customers which results the company losing the
market share.
The effective excellent internal management of the business helps to carry out business functions
and implement effective decisions the flat communicational structure helps the business to
reduce workplace conflicts and issues develop reliability and transparency among employees and
strong employee engagement towards accomplishment of organizational objectives.
CONCLUSION
In a nutshell, the above report delivers how business in environment impact The business
performances where in the business needs to implement desired strategies in order to deal with
the person it is and challenges of the external environment. There are different types and
purposes of organizations, size and scope of these different organizations is also discussed in the
above report. In context of the chosen organisation the report delivers the relationship between
different functional units, the negative and positive impact of the macro environment where in
Pestle analysis was been conducted in order to support with relevant information, sort analysis
was being conducted in order to analyze internal external business environment and find out the
strength and weaknesses of the organisation. This business environment plays an important role
in order to implement favourable business policies and make important decisions pertaining to
different factors in the external and internal business environment.

REFERENCES
Books and Journals