Business Administration Report: M&S Business Principles and Practices

This report provides a comprehensive analysis of the business administration principles applied by Marks & Spencer (M&S). It begins with an introduction to business administration, encompassing aspects like marketing, finance, and accounting, and then delves into the specific characteristics of different business markets, including B2B, consumer, industrial, professional services, and government markets. The report further examines the nature of interactions within these markets and how organizational goals are shaped by market dynamics. It evaluates legal obligations, analyzes business innovation, including the use of modals and support systems, and assesses the process of product or service development, along with its benefits, risks, and implications. Financial viability is discussed, including the consequences of poor financial management and different financial terminologies. The report also explores the uses of a budget, budget management, the principles of marketing, and the sales process. The content is structured to provide a clear understanding of M&S's business strategies and practices within a dynamic market environment.

Business Administration

Table of Contents
INTRODUCTION..........................................................................................................................4
TASK 1...........................................................................................................................................4
P1.2 Analyse nature of interactions among business within a market ..................................5
P1.3 Evaluate how goals of organisation shaped by market operating it. .............................5
P1.4 Evaluate legal obligations of Business ..........................................................................6
P2.1 Analyse business innovation..........................................................................................6
P2.2 Explain the use of modals in business innovations........................................................6
P2.3 To identify support and guidance for business innovation............................................6
P2.4 Evaluate process of product or service development.....................................................7
P2.5 analyse benefits, risk and implications related with innovation ....................................7
P3.1 Analyse importance of financial viability for a company..............................................7
P3.2 Define the consequences of poor financial management...............................................7
P3.3 Analyse different financial terminology........................................................................8
P4.1 Explain the uses of a budget...........................................................................................8
P 4.2. Budget managing..........................................................................................................8
P 5.1. Principles of Marketing................................................................................................8
P 5.2 Analyse sales process....................................................................................................9
P5.3 Features and use of market research..............................................................................9
P5.4 Value of brand to an organisation .................................................................................9
P5.5 Relation in sales and marketing.....................................................................................9
CONCLUSION.............................................................................................................................10
REFRENCES................................................................................................................................11

INTRODUCTION
Business administration is a vast field which includes many kinds of management
positions. It consists of all necessary aspects that are needed in overseeing and supervising
operations related with business. Fields like marketing, accounting and finance are also part of it
(Toth and Vigo, 2014). This field assures that organisation must achieve its targeted goals and is
well organised while performing their work. This assignment is based on principles related with
business of Marks and Spencer. Characteristics, nature, goals, legislations associated with
business are explained. Along with it, concept related with budget, marketing, finance and
innovation is mentioned.
TASK 1
P1.1 Analyse characteristics of different business market
There are several ways to run a business successfully. To achieve targeted results it is
very important for M&S to understand the market place entirely. Products produced by a
company can be sold to different consumers according to their requirement buy mainly business
market is divided into five types:
 Business to Business market: In this focus is on selling products and services to other
business organisation rather than directly to consumers. Some B2B market serves both
customers and service market. A cleaning company is example as it delivers both
commercial and residential service.
 Consumer market: Here products are directly sold to consumers. Due to mass availability
of consumers this is considered as largest business related market (Roth, 2012). For ex.,
M&S as they provide service to millions of people 24/7.
 Industrial market: It includes companies that delivers good like materials, machine and
vehicles etc. For example, Bussential which provides cleaning and laundering service to
other companies.
 Professional and financial service: These includes services such as marketing,
management, IT, consultancy, insurance, credit, lending and tax planning etc., these
services are needed by other businesses to run their company effectively.

 Government: Selling products to government is a difficult task as it includes corporate
status, lengthy bids, rules and policies by government etc. But working for them is
profitable as this sector offers large and profitable projects.
P1.2 Analyse nature of interactions among business within a market
Nature of two main markets, B2B and service markets is different from each other. These
markets often depends on parties that are involved in the business (Ackermann, 2012).
Interactions in business to business market is fast, especially while recruiting as they are
desperate to hire new employees due to work demand. The major motive for B2B is to maintain
good bond with the firms. This helps them in collaborating again for new projects. Hence,
difficult to handle sometimes, this market ensures repeat and long interactions with potential
clients.
Service market differs for different individuals as most of them requires many
opportunities within a short period. Service market is fast paced as it is consumer driven. The
main motive in this market is to satisfy the clients and keep them informed regarding updated
trends. Keeping up with clients favours these businesses in high performance and increased
market growth.
P1.3 Evaluate how goals of organisation shaped by market operating it.
Goals of a company are usually shaped by market in which it is involved. Companies like
M&S hold meetings in the starting of week to set their goals and targets. In accordance with it,
tasks are allotted to different teams. Strategies are also prepared to move forward with clients. At
the end of the weak company reviews their expected goals. These goals are considered to
improve relation with potential customers which will help the firm to enhance their market
shares (Papadopoulos and Heslop, 2014). To achieve success and high profit margins goals of
M&S changes in accordance with the market and consumer needs. To keep up speed with market
company formulates their policies which shows desires of a company is in accordance with the
market in which it operates. An example is company must produce products that clients wants to
buy as they will chose other brands if their choice is not preferred. To maintain their position in
market, goals of a M&S shapes around the preferences of listeners.

P1.4 Evaluate legal obligations of Business
Before starting a business, an organisation needs to follow many legal obligations.
Corporations Act 2001 includes all the needed policies that a company owner must follow in
terms of business structure. Submission of annual returns is one of them. Before recruiting
employees some other obligations needs to be followed such as Anti Discrimination Act 1991,
Work Health and Safety act 2011, Equality Act 2010 and Data protection act 1998 etc., these
acts ensures proper facilities and fair wages for the workers that are working under the firm.
M&S must adhere to legal specifications that are under Companies Act 2006. For
example, sales of good element i.e. providing standardised goods , patent Acts, equality acts etc.
P2.1 Analyse business innovation
Business innovation is implementing a new,modern and creative idea that helps a firm
in improving their business. Improvement includes anything whether it is related with enhancing
the working skills of employees or improving profit margins of the company (Meñez, 2014).
Innovation will helps M&S in achieving their targeted goals and have a positive effect on the
productivity of company. Producing new products is a kind of innovation in business.
P2.2 Explain the use of modals in business innovations.
There are several methos in business innovation which are used to implement new ideas
and skills. 4Cs of innovation and creativity is one of the modal which involves challenge
assumptions, comparing idea in different fields, connection between issues & related aspects and
communicating differently. These 4Cs defines the issue by which ideas can be implemented to
solve them (Keleş, 2012). Business innovation modals incorporates change process i.e. formation
of new method, market or products which helps an organisation like M&S in enhancing their
brand reputation. These modals provides idea and opportunities to grow business and penetrate
into new markets effectively.
P2.3 To identify support and guidance for business innovation
Products in market fails due to several reasons some of them is poor marketing plan,
cheap quality, less funds etc. In UK, government readily provide support to those companies
which are in need. This will help firms in growing and improving their business by implementing
new ideas as funds will be given by government. Usually, local authorities in UK also offers help

to organisations to improve their productivity. M&S can take help and guidance from them
anytime to improve their services.
P2.4 Evaluate process of product or service development
To develop a service or product, an idea is needed. After that a company needs to identify
targeted market and potential clients (Ariani, 2013). Useful strategies are needed to influence
clients to buy goods. A prototype is made which will test the reliability of product and service.
After passing products by conducting several survey and tests, it is launched and promoted if it
adheres to the needs and desires of targeted section of people.
P2.5 analyse benefits, risk and implications related with innovation
Innovations includes both benefits and risks. Benefits will enhance profit, market shares,
advantages over rivals etc. Risk involves failure of product , more investment with less reward
and less market acceptance (Qi, 2012). Implications in innovation carries cost while creating
new idea or product, resource availability, less numbers of employees etc. In case of M&S,
company wants to introduce new section within males but due to issues like supplying of raw
material company is facing problems in innovating new product.
P3.1 Analyse importance of financial viability for a company
It is a vital factor that determines the success of a business. Financially viable decisions
assures the company regarding the success and affordability of product. In context with M&S, if
company buy special mobile phones for employees during working hours which costs them
hundreds of pounds. But this will help the firm in achieving high employee engagement as all
workers will be aware of the important decision and orders given by seniors and manager.
Working environment of M&S will also improve. This proves it was finally viable to invest in
the beginning to receives long term benefits.
P3.2 Define the consequences of poor financial management
Wrong financial decisions can effects the company in a bad way. Before making a fiscal
decision it is important to consider the impact that it can make on a company. If M&S spends
capital on resources that are not helpful, it can land them in debt (Jugdev, 2012). Finance
managing issues can fail a product or company miserably which will affects the life of
employees working there in a bad way. Also director of a M&S will get prosecute in some cases

as a product fails. To maintain efficient brand reputation it is must for firm to balance their
finances appropriately. This ensures success criteria for business, directors and working staff.
P3.3 Analyse different financial terminology
 Gross profit: Money a firm made after calculating the cost of producing and selling
product.
 Debt: Amount an organisation owe to inverters, business persons or other financial
institutions.
 Turnover: Money a firm has made over a time period.
 Net profit: Actual profit a firm made after all working expanses.
 Credit: In this a client will enjoys services and goods before paying and then pays for
them in future.
P4.1 Explain the uses of a budget
A budget helps a firm in managing their expenses and finance. It helps a company in
calculating amount they can invest for a particular project while enjoying sufficient profit. In
case M&S's annual budget is one million pounds but they are spending more than it (Al-Najjar,
and Kalaf, 2012). This will affects their profit margins due to which benefits like incentives,
bonus will not be available for employees. This will destroy the healthy work environment of
firm. Uses of budget involves aspects like project planning, funds allocation and documentation
related with performance, profit and expanses.
P 4.2. Budget managing
Steps involved in managing a budget are:
 Setting goals: Goals must be cleared while forming budget like increased marketing to
enhance sales and research on other aspects.
 Identifying expenses and income: acknowledging realistic factors that can affect budget.
 Budget design: create budget while keeping different aspects in mind which fulfils
needed goals.
P 5.1. Principles of Marketing
It involves identification, anticipation, satisfaction of clients. It aim of marketing is to
deliver right item to right customer. Needs of targeted consumers is given preference and sales
are enhanced by following this tactics. Strategies for marketing are formed in accordance with

price, product and need of the product in market. Customers can be targeted through internet,
pamphlets and advertising etc.
P 5.2 Analyse sales process
To generate capital and profit, an effective selling process is required. Selling products
and services to maximum people is the main aim of marketing. Each firm follow different
process which depends upon the type of product they are serving. Sales process include:
 Information gathering: Needs of clients must be known to M&S to sell products
profitably.
 Matching: Educating consumers about the use of product by relating it with their needs
will increase sales.
 Closing sale: keep in contact with the client after closing sale for future collaborations.
P5.3 Features and use of market research
Market research is very important while establishing a business or selling a good.
Without acknowledging the entering market it is impossible to find out potential threats. Market
research is started by identifying rivals (Shekari and Nikooparvar, 2012). It is necessary to
predict moves related with competitors so that a firm can perform better than them and achieve
their desired results. A product will succeed in market if it fulfil same needs as rival product is
providing while delivering additional benefits. Without proper research, product failing chances
for M&S is high.
P5.4 Value of brand to an organisation
Identity of a company is decided by value of the brand it is providing. M&S never have
succeeded without their logos and iconic brand. Brand builds a company as customers will
acknowledge them only if they are satisfied by brand (Cui and Hu, 2012). Brand differentiates a
product from their rivals in terms of quality. It helps customer in remembering products that the
company offers and produces.
P5.5 Relation in sales and marketing
Most of the people confuses marketing and sale as a same process but these concepts are
very different from each other. Marketing involves advertisement, sale and promotions. It is a
way to introduce and sell goods in market area (Ahmad, 2012). Sales includes only purchasing of
product. Sales is the ultimate goal of marketing.

CONCLUSION
From the above described report, it can be concluded that business market is a wide
concept which involves characteristics, nature of interactions, goals of a company legal
obligations associated with it. Business innovation and related modals helps a business to grow.
Benefits, risks or implication of innovation decides the growth of company. To manage a firm
efficiently financial viability is a main aspect. To popularise a product among maximum
consumers marketing acts as a strategic tools.

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