Business Environment Report: Organizations, Sectors and Analysis

This report delves into the multifaceted world of the business environment, offering a comprehensive analysis of various organizational structures, departmental functions, and strategic tools. It begins by differentiating between the public, private, and voluntary sectors, highlighting their unique characteristics, legal structures, and operational objectives, with a specific focus on M&S Ltd as a case study within the private sector. The report examines the size and scope of these different types of organizations, exploring their operational strategies and market positioning. A significant portion is dedicated to the interrelationship between departmental functions within an organization, such as HR, research and development, marketing, and administration, discussing their roles and the advantages and disadvantages of their collaboration. The report also assesses the impact of the macro environment on businesses, including a SWOT analysis of M&S Ltd, and concludes by synthesizing the strengths and weaknesses of organizations in relation to their external environments.

BUSINESS AND BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types and purpose of organizations; public, private and voluntary sectors and
legal structure.........................................................................................................................1
P2 Size and scope of different types of organizations............................................................2
TASK 2............................................................................................................................................3
P3 Relationship between different departmental functions in the organization.....................3
M2 Advantages and disadvantages of interrelationship between different departments.......4
TASK 3............................................................................................................................................5
P4 Positive and negative impact of macro environment........................................................5
TASK 4............................................................................................................................................6
P5 SWOT analysis..................................................................................................................6
P6 Strength and weaknesses interrelated with macro environment ......................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment help to increase performance and also help- to expand a business
in the industry. Private, public and charity firms has different rules and plans to run a firm in a
market. M&S Ltd. Provide effective, good quality food products and sell clothing in the industry.
Strength of this firm is they maintain brand recognition in the market. This report includes
different types of organizations such as private, public and charity, departmental functions of a
firm and different analysis. By providing effective, efficient and good quality products to the
customers they can get higher performance in the market.
TASK 1
P1 Different types and purpose of organizations; public, private and voluntary sectors and legal
structure
There are different types of organizations in the industry and each has various rules and
characteristics to run a company in the market. There are three types of companies in the world
and each has different legal structure and plans in an industry. M&S (Marks and Spencer) is a
largest firm in the world. They provide effective, efficient and good quality products to the
customers. Based on the customer needs they provide products to a client to satisfy a consumer
needs. It has own brand food products that will give higher performance in the world. Each entity
has different types of rules, regulations and plans to get a desired profit and performance in the
industry (Abbott, K. W., 2012).
Private sector: M&S (marks and Spencer) Ltd.
Private sector has their rules, regulations and plans to increase performance in an
industry. M&S Ltd provide effective and good quality food products to a customer. They also
sell clothing in the market. It has fast growth in a world. Private sector firm not following any
rule of government. They have different and effective plans and policies to run a company in the
world. Main goal of M&S Ltd is to maintain brand recognition in the market. By maintaining
brand identification in a market they can easily increase their performance and also enhance their
efficiency in the industry. It provides different types of innovative products to a customer to
increase overall performance in the market (Searcy, C., 2012).
M&S Ltd has main purpose to expand their business and also maintain brand image in a world. It
has good brand image in a market and also provide good quality product to the customers. M&S
Ltd. Established in year 1884 and this is the British multinational retailer headquarter in London.
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Legal structure
Each company as different legal structure to run a firm in the industry. Private entity need
to register to run a firm. They have audit committee and governance group in the market. They
have their own shareholders that will give higher performance in an industry. They have huge
number of market share in the market that will give higher performance in an industry.
Public sector: NHS
Public sector follows all effective and efficient rules of government. Government
provides different and effective rules, plans and policies to the company to increase overall
performance and also help to get desired goal in an industry. National health care services
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Illustration 1: Legal structure of M&S Ltd.
Source: Marks and Spencer

provides effective and good quality services in health care. It gives health care services to a
public to satisfy a customer needs. These type of firm can be ranged from small to medium. They
always follow plans and policies of government (Ramamurti, R., 2012).
NHS established in the year of 1921 and main purpose of national health care services is to
generate enthusiasm for scholarship and to stimulate a desire to render services.
legal structure
Public firm has less number of their own share in the market. Government has 50% of
shareholders that is used by the NHS. They need to registered by the government and then they
will provide appropriate and effective national services target to the company. It also s good
quality services, laws and policies that will give higher performance in an industry.
Charity sector: Oxfam
Charity entities has main objective to provide good quality services to the customer to
increase overall performance of a company in the industry. Oxfam provides effective services in
different fields such as educational, social and regional etc. in these areas the Oxfam provide
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Illustration 2: Legal structure of NHS
Source: National Health Service History

innovative and efficient services to the client to increase efficiency of a firm in an industry. It
provides various plans, policies to a client to increase performance in the market. It takes
donations from the customers or other business to enhance and expand a business in the industry.
Main objective of this firm is to provide innovative and good quality social services to the
customers.
Legal structure
Charity firm has different legal structure that contains business architecture committee,
resources committee, information and operation committee. They take donations from the other
business to run a firm in the market. They also follow rules of government to increase their
performance in an industry. It also provides appropriate, plans and policies to the Oxfam to
expand a business in the world.
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Illustration 3: Legal structure of Oxfam
Source: Oxfam

P2 Size and scope of different types of organizations
Each company has different types of size, scope and objective to increase their overall
performance in the industry. Private, public and charity firms follows different types of
innovative strategies and approaches to increase their productivity in the market. These
companies have various plans and policies to attract a customer and earn product in a market.
Each entity applies different types of pricing and p[promotional strategies to increase their
overall performance in the industry. Size and scope of different types of entities as follows:
Private sector: M&S(Marks and Spencer) Ltd.
M&S is the biggest firm in UK. They provide good and appropriate food products to a
customer. They also provide luxury, heavy brand products and sell clothing items to a client. The
follows different types of pricing and promotional strategies and approaches to increase the
performance in the industry. It will also help to expand a business in the market. They have their
own rules, plans and policies to run a firm in the market (Boons and Lüdeke-Freund, 2013). It
provides employment legislation acts to provide appropriate protection and security to the
employees. By proving these king of facilities to the employees they can also feel secure in the
company. They also provide effective, appropriate training and development to an employees so
that they can easily produce innovative product to increase overall performance in the industry.
M&S Ltd has 979 stores in different countries and they have huge number of shares in a market.
It help to increase the company performance in the world. They have turnover of 1 billion in the
world.
Public sector: NHS
National health care services provide effective and good quality services of health care to
the customers. Based on the consumer needs they give appropriate services to a client. By
providing appropriate and effective services to the customers they can easily increase their
overall performance in the industry. They innovate their services of health care to increase their
performance in the market. By providing effective services they can easily expand their business
in the world. It has many shareholders in the market to expand a business in the industry. They
follow different types of strategies and approaches in existing services and products to increase
their performance in an industry (Flammer, C., 2013).
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NHS has the branches in 50 states. They have 1 billion of department of health funding and the
operating budget of 250 million and the team of 2,500 staff works to improve the health and
social care services.
Charity sector: Oxfam
It is non profitable because they only focus to provide good quality service to the
customers. They take donations from the other business to expand their business in an industry.
It is a big charitable company in the UK. It is a committee that provides services in different
fields such as social and regional. By providing effective services in business environment they
can easily enhance and expand their business in the market. This firm need to follow different
strategies and approaches to attract a customer so that they can provide more effective services to
the client in an industry. To maintain business environment in the market they need to follow
various plans, policies in a company.
TASK 2
P3 Relationship between different departmental functions in the organization
Each company has different departments in an entity that will help to increase their
performance and also help to get desired goal of a firm in the industry. There are different types
departments in a fir such as administration, research and development, finance and HR. these all
are the departments of company each has different responsibilities to get desired goal of a firm.
If one of the department not following rules and plans then that directly affect the entity
performance. So the HR manager has a responsibility to manage and handle entire organization.
HR manager need to provide appropriate training and development to the employees so that they
can easily innovate a product to increase their performance in an industry (Human Microbiome
Project Consortium, 2012). Some of the departmental functions of the M&S Ltd as follows:
HR department functions
HR manager has a responsibility to manage entire firm activities efficiently. They need to
provide effective, appropriate training and development to the employees so that they can easily
innovate a product to increase performance in an industry. They are also responsible for
recruitment and selection of an employee in the company. Selected candidate must be good
enough and also knowledgeable to produce an effective product. This department should be well
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managed because the functionality of this department directly affect the performance of a firm in
an industry.
Research and development deportment functions
Research and development is responsible to innovate a product in the market. They only
find out the new and innovative technologies that will help to increase productivity in the market.
They also find out what are facilities and approaches help to increase the performance of an
entity in the industry. It should be manageable in a company that will help to produce good and
appropriate product to satisfy a customer needs in a market (Markides, 2013).
Marketing department functions
Marketing department is responsible for promoting and packaging of a product in the
market. They only are the teams they attract a customer by providing appropriate promotions and
advertisement. By attracting a client in an industry they will get higher performance in the
market. They follow different types of pricing and promotion strategies such as smoothing and
mail ordering that will help to attract a consumer in an industry. It will also help to increase
productivity in a market.
Administration department functions
Administration department is only responsible for managing and handling entire
organization. They provide appropriate and effective tools, techniques to an employee so that
they can easily work together to get desired target of a company. They are responsible for solve
customer queries by phone calls and e-mails. M&S Ltd has effective administration management
that will help to increase efficiency in a firm.
M2 Advantages and disadvantages of interrelationship between different departments
Effective relationship between different departments in the company help to increase
overall performance in the industry. Main advantages of effective relationship between
departments helps to increase productivity and also help to expand a business in the market. If
the department are not following their responsibilities then firm can get loss in an industry
(Smith, W. K., Gonin, M. and Besharov, M. L., 2013). So they need to manage their departments
by providing effective and open environment to the employees.
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TASK 3
P4 Positive and negative impact of macro environment
Macro environment can directly affects overall performance of an entity in the industry.
By knowing the actual condition of the company they can easily apply different types of
strategies and approaches to increase their performance and also enhance their productivity in the
market. To increase productivity in the market they need to apply different types of innovate
strategies in the existing product. It will give higher performance in an industry. There are many
changes in legal, technological and social so M&S Ltd. Need to follow latest technologies and
laws that will help to expand a business in the market (Pham, Segers and Gijselaers, 2013). By
applying advanced technologies in existing product they can easily increase their productivity as
well as performance. PESTLE analysis of M&S Ltd as follows;
Political factor
Political factor contains all the rules and regulations of government. Government
provides different and innovative plans, policies, acts to increase their performance in the
industry. Recently UK government implement new acts such as health and safety standards
which contains employee protection, risk control and assessment. This plan of government help
to maintain employee relationship and also help to increase performance in the industry. M&S
Ltd not following these rules and regulations so that it has negative impact on the company.
Economic factor
M&S Ltd provides heavy brand and luxury products to the customers but some peoples
are not able to purchase the item in the market. They need to provide effective and good quality
product at cheaper rate. These peoples are spent much money on the food and cloth products. It
has negative impact on the company so that they need to innovate their product by applying new
technologies at cheaper rate. It will help to increase their productivity and also help to enhance
their performance in an industry (Amer, M., Daim, T. U. and Jetter, A., 2013).
Inflation gives negative impact on the company when the prices of products and services
increase then some of the peoples not buying their products. Inflation reflects the purchasing
power per unit of money in the world. Interest rate affects the overall firm performance. M&S
Ltd. Borrows capital from the bank if the bank gives higher capital on higher rate then it will
affect the company performance in the world. Company increases the rate of unemployment such
rate of labour force.
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Social factor
Asda is the biggest competitor of M&S Ltd in an industry. Asda provide food products
online to increase number of distributional channels in the market. M&S Ltd also need to follow
different types of strategies to increase performance and also expand a business in the market. To
increase overall performance in a market they need to innovate an existing product.
Technological factor
M&S Ltd follows various technologies and approaches to attract a customer in the
market. They promote a product on TV, internet and social media to attract a customer in a
market. It will help to increase productivity an industry. By higher productivity in an industry
they can also expand a business in the market. They also innovate the website by applying
advanced technologies (Purce, 2014).
Legal factor
There are different acts that help to increase productivity and performance in the market.
M&S ltd follows different types of packaging and labelling acts that help to protect a product
between being produced and used by the customers. This acts provide higher security of the
company which help to protect the process of production (Zeng, Li and Duan, 2012).
Environmental factor
M&S Ltd has appropriate and effective environment to promote a product in an industry.
They develop different types of policies that help to increase overall performance and also help
to expand a business in an industry. It develops green policies to increase their performance in
the market.
TASK 4
P5 SWOT analysis
SWOT analysis provides different factors that affect a company performance. By
knowing the strength and threats of an entity they can easily reduce the complexity of the issues
by applying different types of strategies and advanced technologies in the product. M&S Ltd has
many threats which affects overall firm performance in an industry. It has good brand
recognition in the market so that they can also expand a business in the industry (Schaltegger,
Lüdeke-Freund and Hansen, 2012).
Strength
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M&S Ltd. Has good and effective brand identification in the market. 90% of market uses
this company products. In 2015 M&S Ltd. Served 33 million clients in the world. It uses
different and effective multi channel to reach the desired target by using online and mobile.
These technologies will help to increase productivity in the market and also help to enhance a
performance in an industry. This uses CSR strategies to increase productivity in the market these
all are the strength of the M&S Ltd to increase and expand a business in the industry.
Weaknesses
There are fluctuations in domestic market conditions that will have negative impact on
the company. They need to improve their performance by applying innovate strategies and
approaches in existing products. Frequent item recalls in 2015 marred its reputation and affected
customer confidence in its products (Schneider and Spieth, 2013).
Opportunities
M&S ltd. Announced plans to expand their business in the world. This approaches
concentrates on food sections which gets 50% of revenue that would help to increase
performance in the industry. They have two world's biggest markets in china and India. They
have big opportunities they can easily provide their product to the customers by online and open
the markets in different countries. Online technology provide more benefits to the M&S Ltd. For
the future growth. By providing effective and good quality product to the customers they can
easily get higher performance in the market. Online trending is the biggest opportunity for the
firm to increase their productivity and also help to expand their business in the industry (Yoon,
2012).
Threats
M&S Ltd. Has some threats in the market such as rising labour cost and rate of products
is too high in the industry. In UK the government rise the labour cost this is the big threat for the
company. To maintain brand recognition in the market they need to provide effective and good
quality product to the customers. Minimum wages increases so that it affect the profitability of a
firm in the industry (Ryu, K., Lee, H. R. and Gon Kim, W., 2012).
P6 Strength and weaknesses interrelated with macro environment
Strength of the M&S Ltd. It has good brand identification in the industry. To maintain
brand identification in the market they need to provide innovative products to the customers. By
providing appropriate items and service of the clients they can get higher performance in the
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market. There is positive and negative impact of the macro environment on the company. They
need to overcome their weaknesses by applying different types of strategies and approaches in an
existing product.
Strength
M&S Ltd has positive impact of technological factor because they follow different types
of innovative and advanced technologies in the website to attract a customer and also help to
increase productivity in the industry. They also have different and effective distributional
channel in the industry that will help to increase productivity in an industry. They use online and
mobile to distribute a product in a market. It maintains brand identification by providing
innovative and good quality product to the customers. They follow appropriate and advanced
technologies to provide products to the clients.
It has many stores' in different countries that has big strength for this company. They are
planning to open more stores in different countries to increase productivity in the industry. By
opening the new stores and markets in different countries they can get higher performance and
also get desired target (Siewiorek and et.al., 2012).
Weaknesses
M&S Ltd. Has some weaknesses such as low market conditions etc. To improve market
condition they need to produce innovative product to the customers that will help to increase
their productivity in the industry. They also need to provide appropriate and effective training
and development to an employees so that they can easily produce innovate product to a client.
Manager has a responsibility to provide appropriate training to the employees to implement new
products in an entity.
There are frequently changes in product recalls so they need to improve their product by
applying new strategies and approaches in an existing product. By satisfying consumer needs
they can also get higher performance in an industry. By effective distributional channel they also
can provide innovative product to a client in the market (Solesvik, 2013). They have market
fluctuations in domestic market so they need to improve their performance by applying different
and effective strategies and technologies. They need to provide innovative products to the
customers to get higher performance and also help to expand their business in an industry.
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CONCLUSION
Effective business environment help to increase overall performance in an industry.
Private, public and charity companies has different rules, plans and regulations to run a company
in an industry. M&S Ltd. Is the biggest private company in the world. It provides luxury, heavy
brand and sell clothing products to the customers. Departments of an entity must be well
managed because it will help to get desired goal of a firm. Each department has different roles
and responsibilities to work together for getting appropriate objective. To increase their
performance and expand a business in an industry they need to follows different innovative
strategies and technologies in the product.
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Pham, N. T., Segers, M. S. and Gijselaers, W. H., 2013. Effects of work environment on transfer
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Smith, W. K., Gonin, M. and Besharov, M. L., 2013. Managing social-business tensions: A
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Purce, J., 2014. The impact of corporate strategy on human resource management. New
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Ryu, K., Lee, H. R. and Gon Kim, W., 2012. The influence of the quality of the physical
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Online
Marks and Spencer 2016 [Online]. Available through
<http://betty-sung.tripod.com/marks_&_spencer.htm> [Accessed on 1 November 2017]
National Health Service History 2016 [Online]. Available through
<http://www.nhshistory.net/chapter%207.htm> [Accessed on 1 November 2017]
Oxfam 2016 [Online]. Available through
<https://joaovieirablog.wordpress.com/2014/10/27/about-my-two-business-and-legal-structure/>
[Accessed on 1 November 2017]
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