Business Environment Analysis: Organizations, PESTLE, and SWOT

This report provides a comprehensive analysis of the business environment, examining various types of organizations, including profit, non-profit, and voluntary organizations, with examples such as Marks and Spencer, Crown Prosecution, and Oxfam. It delves into the sizes and scopes of these organizations, from micro to large, and explores organizational structures, highlighting functional and divisional structures. The report also applies the PESTLE model to analyze the macro-environment factors impacting the retail sector, specifically touching on political and economic influences. Finally, it utilizes SWOT and Porter's Five Forces models to assess the strategic position of Marks and Spencer, providing insights into its strengths, weaknesses, opportunities, and threats, as well as the competitive forces at play.

Business Environment

Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
1) Different types and purposes of organisation..........................................................................2
2) Size and Scope of various types of organisation.....................................................................3
TASK 2............................................................................................................................................4
3) Organisation structure and functions.......................................................................................4
TASK 3............................................................................................................................................6
4) PESTLE model........................................................................................................................6
TASK 4............................................................................................................................................9
5) SWOT and Porter's five Force model of Mark and Spencer...................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
Books and Journals....................................................................................................................11
1

INTRODUCTION
Business environment is defined as the atmosphere that helps in providing both external as
well as internal environment which imposes direct impact on the profit of the company. It
involves government, customer, subordinate and many more which enforces direct influences on
the organisation and they need to make alteration according to the requirement. In this report the
organisation which is taken into account that includes public-private as well is voluntary
organisation. Mark Spencer is considered as a private organisation and Crown prosecution is
considered as a public sector organisation as well as Oxfam is considered as a voluntary business
organisation that helps in increasing the knowledge in relation to various sorts of company and
their main purpose is to operate their business in UK. In addition to this there is a relationship
among the function of the organisation is also considered in this assignment. At last there is an
interrelationship among the strength as well as weakness in relation to Macro environment that is
going to be mentioned (Hamilton and Webster, 2018).
TASK 1
1) Different types and purposes of organisation
In today's business environment it has been said that there are various company which
operate the business at market place. Therefore there are various types of organisation such as
profit earning company, not for profit company as well as volunteer organisation that focus on
satisfy the need of the user in order to provide them good according to their requirement.
Government focuses on operating their business for bringing stability in the economic condition
of the country. Therefore there are various types of business organisation that is going to be
given below:
Profit organisation here in the business organisation focuses on marketing of the goods
as well as services to its customer for satisfying them. The basic purpose of the business
organisation is to gain more and more money in order to maintain their survival. These are
considered as that organisation that focuses on increasing the development of job opportunity for
the individual person that helps in decreasing the unemployment rate. The company such as
Marks and Spencer provide different kind of services or product as per the need of the customer
that help in increasing the profit margin in future period of time. In addition to this they also
focuses on the quality of the product that help them in carry out their functions of Organisation
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in an appropriate manner there are various competitors of firm such as Zara, Marks and spencer
and so on.
On the other hand the non for Profit Company is determined as that organisation which
is controlled by the government for improving the country as well as their economic condition.
There are various kinds of services building, roads as well as many more that is used by the
public. Therefore the Crown prosecution is considered as the best example of public sector
organisation. The main purpose is to provide the advisory services and resolve the typical cases
which are directly connected to the criminology (Eling and Schaper, 2017).
In addition to this non-governmental business organisation are considered as that
Organisation in which various kinds of services are provided to the individual person for
increasing their living standard. Here in the main motive of the companies not to achieve more
and more profit but they focus on providing services to the individual person of the country for
increasing their standard. Oxfam is the good company that provide variety of services such as
food to accommodation services across the world that's the help in satisfying the customer in
particular phase of time period.
2) Size and Scope of various types of organisation
Micro, large as well as a small there are different type of organisation which provide a
variety of services to its customer as per the need. There are various kinds of sizes well as scope
of this kind of organisation and that is completely different from one another. Micro business
organisation is considered as a small company which imposes direct impact on the economic
condition in which the product as well as services is not sold to high rate but they provide the
various product as well as services to its user for their survival as well as maintenance. In this
kind of organisation there are one or two individual person with owner and they offer the
customer good services. The market share of this kind of organisation is very low. Therefore if it
is talked regarding the micro organisation than the market share of this kind of organisation is
high in UK. Therefore, it is not possible for the organisation to sustain organisation and offer the
customers to provide services in which they are interested. It imposes direct impact on the
growth as well as profit margin of the company and the owner of this kind of micro organisation
want to make investment for survival as well as maintenance at Marketplace (Gaganis, Pasiouras
and Voulgari, 2019).
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A small organisation is those kind of Organisation in which the share of market is much
bigger than micro organisation. And they focus on earning more profit and micro organisation
and in this type of company there are two or three outlets in which there are five individual
person who are working. Therefore the growth and success of business organisation is limited
because they operate their business in a specific area only. Therefore, the individual person of
UK focuses on starting their business which imposes favourable influences on the economic
situation of country (Sale and Watson, 2017).
Medium size organisations are those kinds of companies who have a higher market share
in UK. This provides those kinds of product to satisfy its customer and achieve the competitive
advantage of a rival firm at Marketplace. They modified their goods as well as services
according to the need or requirement of the customer. And it helps the business organisation in
sustaining for a longer time period because it increases in competition level in international
business organisations such as MNCs. The largest business organisation is considered as those
one who operate their business around the globe. Therefore the Marks and Spencer operate their
business in Asia as well as Africa. There are various kinds of opportunity which is provided to
that kind of organisation and they achieve more and more profits during the particular phase of
time period. This kind of organisation provides employment and also the government provide
their support in order to operate their business at global level. The growth is specifically
connected to the expansion of organisation for whole development of the company (Hillary,
2017).
TASK 2
3) Organisation structure and functions
Organisation structure is in the term of project Matrix, function as well as so on that helps
the organisation based on their size. Therefore the micro level organisation does not have large
number of employees therefore they make direct communication between them. Therefore the
scope of business organisation is considered as a small to grow at international market. The
functional structure is followed in this organisation because there is a need of two way of
communication just because a small size of employees. If it is talk regarding small organisation
then the employees follow functional matrix. In addition to this, it has been analysed that they
are the function is structured because it is considered as its simplest method of providing
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information from the higher authority to the low-level administration. For middle level business
organisation size, scope as well as market situation of subordinates in different department. In
addition to this the business organisation focuses on expanding their business (Drucker, 2017).
It is considered as a scope of business organisation in which they adopt project
organisation structure. The organization's Marks and Spencer which is considered as a large
organisation adopt the Divisional organisational structure in order to conduct their business at
global level. Therefore, it is necessary to optimum utilisation of the resources in order to achieve
competitive edge over rivalries.
Figure 1: Divisional Organisation Structure
(Source: Divisional Organisation Structure, 2018)
There are various departments which is production, marketing, HR as well as well sales that
is adopted by the higher authority of Marks and Spencer. Human Resource Department here in
the duty of HR manager is to hire the competent staff in order to increase the productivity of the
company. There are various functions which is performed by the HR manager such as
compensation, selection as well as providing training session. It helps in achieving competitive
edge over rivalry that Marketplace. In addition to this the research and development
department focuses on conducting appropriate research in order to gain necessary information
which is important for satisfying the requirement of individual person. Marks and Spencer is
considered as a retail Organisation in which they organise market research in order to gaining
more and more knowledge regarding condition at Marketplace. It helps in taking large number of
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customer at Marketplace. In addition to this, the duty of marketing manager is to make a budget
in order to promote the product as well services in front of customer at Marketplace (Kessler and
Buck, 2017). It is necessary for marketing manager to co-ordinate with the finance team in order
to take the decision regarding the fund within business organisation.
TASK 3
4) PESTLE model
PESTLE investigation can be considered as an apparatus which can be utilized to dissect the
economic situations of a division of a business association which is identified with Macro
environment.This significantly be encased with a scope of elements like Economic, Technology,
Political, Environmental, Legal and social which significantly impacts upon business segment. In
present setting, business division which has been picked is the retail Supermarket which
comprises with numerous organizations like Marks and spencer, Marks and Spencer, Marks and
spencer's and a lot more which could be considered as a portion of the major and the biggest
business associations of United Kingdom and of different countries which are consistently
anticipating grow their organizations at worldwide level. Each and every business condition
considering any area stage encased with vulnerability which impacts upon in general working
and elements of a business association. It has been broke down that changes required to be made
inside an association underway administrations here similarly these associations which has been
named above has rebuild themselves so as to offer rivalry to one another and to different
business associations.
Political factor: Government fundamentally designspolicies of tax collection, permitting and
other for managing business organizations that are working in a part like retail. This can be
comprehended without genuine model where Marks and spencer shows the utilization of cost
slicing approach where they reported to eliminate down 300 positions out of 2500 (Virglerová
and et al., 2017). This occurred in light of the fact that legislature has requested to upgrade the
activity protections and redevelop there wellbeing and security approaches which affected
adversely upon them and use them towards making this decision. Government of United
Kingdom Effectively assumed a significant job inside this choice which has been made by the
organization which is going under retail segment.
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• Positive impact: Political steadiness of United Kingdom advantage retailsector of United
Kingdom to work business with the scope of approaches like cost cutting. This has helped
business associations leg as that are going under retail area to ad lib inside through extending
employment opportunities to the new Employees with imaginative personalities.
• Negative effect: right around 300 people request to leave the occupations from the
organization due to the methodology that they have picked. Consequently comma settling on a
choice like this inside a retail division may here and there become more hard for associations that
are performing business under this sub part that is retail
Economic factor: another significant component of outside condition which comprises with
various scope of segments likeinterest rate, development, conversion scale and expansion which
rely upon economic states of nation like United Kingdom (Šoltés and Štofková, 2016). On the
off chance that it is discussed UK retail segment, any change among above parts like loan cost
expansion rate or conversion standard it legitimately impacts after working of business
associations that are performing and this area. Model can be taken is of Marks and Spencer
where organization had confronted decrease in their net revenues which made them to close 14
shops and all the workers that were utilized inside these stores become jobless.
• Positive effect: GDP pace of United Kingdom is solid right now which straightforwardly
impacts upon organizations that are acting in general store part of this Nation in light of the fact
that the buying intensity of customers is high.
• Negative effect: ordinarily financing cost of this Nation identified with credits gets
changes quickly which may affect upon organizations advertises esteem that are performing
business inside Supermarket industry of UK.
Social factor: observations, sentiments, and numerous different considerations of open remains
required under this factor (Popescu and Popescu, 2019). Which implies, associations that are
acting in grocery store industry of UK it will be required for them to offer clients with quality
items with negligible rate so as to get effective in limited ability to focus.
Positive impact: Marks and spencer is a business association which is performing and
Retail Industry of United Kingdom and at worldwide level also more often than not nature of its
items is exceptionally high then the customers’ Expectations which legitimately impacts
emphatically upon buyers steadfastness..
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Negative impact: buying conduct of shoppers has changed where they may go for choices
also. Along these lines, associations like Marks and spencer that are acting in grocery store
industry required to deal with the quality and the costs of items and administrations that they are
offering to the clients.
Technological factor: It is another segment which discovers that technology benefits entire
retail area in conduction of activities adequately (Rialp-Criado and Komochkova, 2017).
Positive impact: This could be comprehended the genuine case of Marks and spencer's
which has focused to who receive new machines that will help purchasers in charging process.
This has offered Opportunity to the clients to buy items in substantially more quicker manners.
Negative impact: since there were huge numbers of representatives didn't know about the
technology which association has received going under retail area, This made then jobless which
as of late affected adversely upon Marks and spencer's on execution level yet for brief timeframe
outline.
Legal factor: factor which is encased with enactments which are made by legislature of United
Kingdom and this profited to the retail division and influenced too both simultaneously.
Positive effect : Recently, United Kingdom has become as the open business advertise due to
brexit which occurred in view of this numerous business associations like Tesco, Marks and
Spencer, Asda had confronted a chance to upgrade themselves and rebuild also to ad lib overall
revenues (Mohammed, Gururajan and Hafeez-Baig, 2017).
Negative effect : due to brexit, which was the activity taken by government the majority
of workers that were from European Union began leaving their occupations which affected
adversely account general store also.
Environmental factor: Another vital factor of outside condition which is connected with
contamination and sound condition. Fundamentally this factor is associated straightforwardly
with the association that are coming underscore markets since what they are offering to the
clients are some way or another dirtying nature because of their assembling plants numerous
different things.
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TASK 4
5) SWOT and Porter's five Force model of Mark and Spencer
SWOT investigation is an instrument which is utilized to evaluate or look at qualities,
shortcomings, openings and dangers. The results of examination portray the serious situation in
the market which can be improved through proper systems.
Strengths Weaknesses
 It offer assortment of items and
administrations, for example, apparel,
furniture, food, monetary
administrations and a lot more to catch
bigger offer in the market.
 It is considered as biggest organization
in UK by deals and furthermore it has
tremendous
 Many clients don't attempt its item in
light of the discernment that all the
products are being offered at significant
expense.
 It has substitute as the quantity of
adversaries have expanded in the
previous not many years.
Opportunities Threats
 It has more open doors in extending its
business universally which can build its
client base.
 Alliances with effectively settled and
fruitful organizations.
 Monetary downturn is a tremendous
issue in conveying the business
productively.
 Also, variances in the costs of crude
materials because of the quantity of
components can have a tremendous
danger.
Porter’s five forces:
It is utilized to break down rivalry exist in the business and that it is so alluring to the substances
working in a similar industry or area. Doorman's five powers of Mark and Spencer has been
given beneath:
Threats of new entrants: Tesco, Morrison, ASDA and a lot more firms have entered the UK
market to investigate chances to get effective and gain benefits by expanding the clients (Alaloul,
Liew and Zawawi, 2017). Along these lines, danger of new participants is ever expanding.
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Suppliers bargaining power: The passage of new organizations in UK advertise has expanded
the dealing position of the providers which is an issue for Mark and Spencer. It needs to arrange
and consented to purchase crude material at the cost of word by the providers.
Threat of competition: Competition is high in UK advertise in light of the fact that substances
like Primark, GAP, New Looks, NEXT and so forth. Have figured out how to draw in clients to
purchase its items. Thus, there is an immense rivalry for Mark and Spencer (Strydom and
Rudansky-Kloppers, 2016).
Buyers' bargaining power: Existence of assortment of organizations has expanded the bartering
intensity of purchasers since they can purchase items from different other options. Prior, Mark
and Spencer was one of the alternatives favored significantly by the clients.
Threats from substitute: There is an improved danger of replacement because of the
advancement of organizations like Sainsbury, John Lewis and so on. Clients can have
comparative items at more less expensive costs (Bedianashvili, 2016).
CONCLUSION
From the above report, it very well may be understood that open, private and willful are
different types of association. These are firms which have diverse size, scope, target, structure
and reason. Human asset, fund, activity, promoting, deals, innovative work are division which
have interconnection with one another.
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REFERENCES
Books and Journals
Alaloul, W. S., Liew, M. S. and Zawawi, N. A. W., 2017, December. Communication,
coordination and cooperation in construction projects: business environment and human
behaviours. In IOP Conference Series: Materials Science and Engineering (Vol. 291,
No. 1, p. 012003). IOP Publishing.
Bedianashvili, G., 2016. The Global Business Environment, European Integration and the
Cultural Potential of Social-economic Development of Georgia. Globalization &
Business.
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects
productivity and efficiency of European life insurance companies. European Journal of
Operational Research, 258(3), pp.1082-1094.
Gaganis, C., Pasiouras, F. and Voulgari, F., 2019. Culture, business environment and SMEs'
profitability: Evidence from European Countries. Economic Modelling, 78, pp.275-292.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Kessler, T. and Buck, C., 2017. How digitization affects mobility and the business models of
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Mohammed, A. A., Gururajan, R. and Hafeez-Baig, A., 2017, August. Primarily investigating
into the relationship between talent management and knowledge management in
business environment. In Proceedings of the International Conference on Web
Intelligence (pp. 1131-1137).
Popescu, C. R. G. and Popescu, G. N., 2019. An exploratory study based on a questionnaire
concerning green and sustainable finance, corporate social responsibility, and
performance: Evidence from the Romanian business environment. Journal of Risk and
Financial Management.12(4). p.162.
Rialp-Criado, A. and Komochkova, K., 2017. Innovation strategy and export intensity of Chinese
SMEs: The moderating role of the home-country business environment.Asian Business
& Management. 16(3). pp.158-186.
Saleh, A. and Watson, R., 2017. Business excellence in a volatile, uncertain, complex and
ambiguous environment (BEVUCA). The TQM Journal.
Šoltés, V. and Štofková, K. R., 2016, September. The impact of business environment on
regional disparities. In CBU international conference proceedings (Vol. 4, pp. 187-
191).
Strydom, J. W. and Rudansky-Kloppers, S. eds., 2016.Introduction to business management.
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Virglerová, Z., and et al., 2017. Key determinants of the quality of business environment of
SMEs in the Czech Republic. E a M Ekonomie a Management.
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