Business and Business Environment Report: M&S and Business Environment

This report provides a comprehensive analysis of the business environment, exploring different types and purposes of organizations, including profit and non-profit entities, and their classification within the private, public, and voluntary sectors. It examines the size and scope of various organizations, using Mark and Spencer (M&S) as a case study to illustrate these concepts, detailing its size, structure, and employee base. The report further delves into the relationship between organizational functions such as human resources, finance, administration, and marketing/sales, and how they link with organizational vision and objectives. It also assesses the positive and negative impacts of the macro environment on business organizations, followed by an internal and external business analysis of M&S, and explores how its strengths and weaknesses interrelate with macro factors. The report concludes with a summary of findings, emphasizing the importance of understanding the business environment for organizational success.

Business & Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1 ...........................................................................................................................................1
P1 Types and Purpose of Organisation.......................................................................................1
P2) Size and scope of different organisation ..............................................................................2
TASK 2............................................................................................................................................5
P3 Relationship between various organisational functions and its link with organisation vision
and objectives..............................................................................................................................5
P4) Positive and negative impact of macro environment upon business organisation...............6
TASK 4............................................................................................................................................7
P5 Internal and External business analysis of M&S..................................................................7
P6) Way in which strengths and weaknesses interrelate with macro factors .............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
A business can be describes as the company, firm or organisation in which large number
of people are working just for accomplishing their own as well as companies goals and
objectives. It can also be considered as a place where people can share goods and services in
terms of money. Business environment refers as internal and external factors that may directly or
indirectly impacted on organisational growth and success. It is an essential combination of macro
and micro environmental which is helpful in managing all business activities that are held in
business or any industry. Mark and Spencer is the most popular British multinational retail
company who deals in high quality clothing, grocery, home and food products. Their basic
purpose is to make each moment special for their customers who are taking advantage of offered
services of firm. In today's scenario people are mainly engaged in various activities, they take
essential participation in different activities in order to satisfy their needs and wants.
TASK 1
P1 Types and Purpose of Organisation
In the present environment organisational are playing vital roles as it helps in providing
employment to large group of people so that society can grow and achieve success in their
operations. Organisation can be classified in different forms and it is affecting working of
different groups like government, stakeholder, society and other persons who are working for
welfare and development of nation (Boons and et. al., 2013). The meaning of business
organisations can be defined as large group of people who are working while making
cooperation with one another and this is beneficial for them to achieve all their goals and
business objectives. The organisations are mainly classified into two organisation which are
evaluated as:
Profit organisation: These firms are working in order to maximise their profit ratios and
attain higher growth at market places.
Non Profit Organisations: These firms are working for the welfare and development of
overall people who are residing in society and they are not working to earn high profitability
ratios.
Different types of organisations which are executing their operations in economy are described
below as:
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Private Sector Organisation: These business operations are run by single individual and
they are working in order to maximise their profit ratios thus they can easily increase their
existing size and scope of their business operations. There is no government interference in their
business operations (Briggs and Grisaffe, 2010). These private business can operate with the help
of different legal structures and the business of these sectors are classified into Partnership
business where two or more individuals are working together and profit is equally divided among
both of them, Sole Trader ship in this single individual is the business owner and his business
can be registered or non registered and he is overall responsible for the losses or profit, they can
invest their own saving in business operations and last Public limited company with private
shares there can issue shares with their stakeholders but these are not accountable in any public
exchange or Initial public offering.
Public organisations: These firms are having their overall membership with the general
public. The company can starts its operations when they are having 7 members. If the larger part
of shares are controlled by government authority then they are called as government companies.
These types of business are under control because they are controlled by government rules and
regulations. Any person can have overall control on the stocks available with them and they are
having limited liabilities with shareholders. If firms are making plans to raise their capitals their
they can sell their shares to investors (Brinckmann, Grichnik and Kapsa, 2010).
Voluntary organisation: The other name for this firm is business associations. There groups are
formed when persons agree to make an agreement which are voluntary in nature and they are
working in order to achieve their common goals and objectives. The main aims are linked with
development of overall society thus promotion of economy by achieving growth. They are
always following legal composition.
Main Purpose of Business Organisation
All those business which are working in order to earn higher profitability then their main
aim is to earn high monetary value.
Plans should be made by which high revenues can be generated in order to sell large
number of products.
P2) Size and scope of different organisation
The overall valuation of organisation is based on their size and scope. There is some
specific purpose and scope of company, which are needs to achieve by company in order to
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reach at higher position at market place. The classification of business has to be done through
their structure and size. The size of each business organisation is different, some business are
very big in nature and they are having more than 2500 employees who are putting their
significant efforts for accomplishing organisational as well as their own goals. Some firms are
small in nature they are having more than 5 employees. Each firm having their own set of goals
and targets which are helps in providing a significant way to their employees for performing well
at work place. The organisation are categorised among various parts, which are describes as
under:
Private sector firm: This type of sectors are encompasses all profit firms that are not operated or
owned by government (Osterwalder and Pigneur, 2010). This type of companies are run by
private individual or any group and they are means of profit enterprises, the major purpose of
private organisation is to earn huge profit through providing extra beneficial services to their
customers and clients. Mark and Spencer is a private company and it is worlds biggest retail firm
across the globe, the size and scope of company can be describes as under:
Size Mark and Spencer is the most popular British multinational private
company, who deals in various luxury home, cloths, grocery and
general products and services. This also considered as the largest
food chain in united kingdom.
 It has more than 1433 retail stores all over the world and
having 959 stores and outlets in UK.
 It has more than 82,904 members who are working with
them.
 For the purpose of cost cutting, there were many stores
which are unprofitable were closed.
Structure As a private firm, there is not any involvement of government, it
means Mark and Spencer is not owned by government and there is
not any control of government on their business activities. The
structure of company is very big, it categorised among various
departments which are individually contributing their best in growth
and success of firm.
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 Number of minimum employees are 2
 number of maximum employees are 50 to 100.
the company follows a big structure and it deals in high shares and
profit.
Public sector company: It can be considered as the company whose stock is traded on stock
exchange, it means the company is publicly traded and owned by government. There is a huge
involvement of government and its policies even these kind of firms are controlled by nation.
Nestle is a public sector company who deals in coffee, chocolate and tea products across the
globe.
Size Nestle is considered as public sector company, it has various joint
ventures across the world and it mainly tie up with many small as
well as large companies who are producing variety of goods and
services (Wild, Wild and Han, 2014).
 Its mainly tie up with many companies such as Coca-Cola.
 It has more than 335000 employees all over the world.
Structure As a big firm Nestle has a wide organisational structure who deals
in variety of products and services.
 Number of minimum employees are 7.
 Number of maximum employees are Unlimited.
Voluntary Organisation: This type of sectors are considered as non profit firms, in this money
and funds are gathered through various investors and sponsors (Schaltegger, Lüdeke-Freund,
and Hansen, 2012). They are mainly concern towards providing financial services to people in
order to improving their condition at market place. Here voluntary sector is referred as Age UK
which is registered as charity institution. In this two largest separate charities such as Age
concern and Help the Aged are combined in respect of providing beneficial services to others.
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TASK 2
P3 Relationship between various organisational functions and its link with organisation vision
and objectives
Marks and Spencer are running their business operations in retail business and they have
achieved growth and success in their operations by selling their products all around the globe.
They are having good money to make investment in their business operations. They are made
plans in order to establish good management in which all workers will be executing their
working in systematic and planned ways (Elliot, 2011). Thus it is very important functions for
each business in order to earn high profitability. The different organisational functions and their
interrelationship are describe below as:
Human Resources: This is the blood cell of every business organisations There main
role is related with development of plans and policies by which they can recruit talent who are
effective in performing their overall business operations in planned and effective ways. Thus
achievement of growth for business. If they are successful in hiring good employees then all their
works will be done in systematic and planned ways. This is the main department for cited firms
as they are focusing on hiring employees who will enhance their profitability and productivity
ratios.
Finance: This department is accountable for managing overall funds of company so they
can make investment in advertisement in order to promote goods of business. The finance
managers sets out monthly budgets according to funds availability and they they can use the best
tools for promotions (Cavusgil and et. al., 2014). They are having the overall responsibilities in
order to effectively mange funds for performing all their business activities according to different
departments. Plans should be designed in order to raise their profitability ratios and also revenue
factors. Goals and business objectives can be achieved if firms are making plans in order to
enhance their new profitability index.
Administration: This department have the total responsibilities in order to make plans
so that firms will achieve all their goals and objectives in effectual and planned ways. Mark and
Spencer are focusing on developing plans so that all activities are executed in planned ways and
their issues are resolved in friendly ways. They are having responsibility for security concern of
the overall organisation. This is also valuable in order to gain high customer satisfaction and all
activities will be conducted in planned ways (Bryman and Bell, 2015).
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Marketing and Sales: The major responsibilities of marketing department is related
with creating awareness about products so customers can easily purchase them. They are making
plans in order to promote their goods and market place and achieve higher growth. Selling
activities are linked with increasing their profitability ratios so company can achieve high growth
in their overall business operations. Plans should be developed in order to achieve their overall
goals thus development of strong brand image of firms and create good position in minds of
customers and this will help in gaining loyal customers.
P4) Positive and negative impact of macro environment upon business organisation
The organisation is mainly impacted by two major elements such as macro and micro
environments, they may directly or indirectly affect the overall organisational performance.
Macro environment involves various factors such as political, economic, social, technological,
legal and environment. It is the condition which is consist through external factors of an
organisation (Sharma and et. al., 2010). The proper analysis of macro environment can be done
with the help of PESTLE analysis, the essential elements are describes as under:
Political factors: In this the averment of country sets some regulations for companies who are
working for the purpose of gaining growth and success. Economic factors are considered as an
economy's performance that are directly or indirectly impacted on company for long time. Mark
and Spencer has been favoured by EC's free trade agreement which helps in reducing sourcing
costs.
Impact: It has some positive as well as negative impact on organisational performance,
the major positive impact is that it helps in reducing the extra cost from products and services
and major negative impact is that government rapidly change their rules and regulations which
may increase or decrease the rates of products that are offered by firm.
Economic factors: Recently the economic outlook is very much uncertain and this may affect
the sales of retail sector, as in today's market people are not having enough cash to invest on
luxury clothing and food products.
Impact: The major positive impact is that the company is having variety of goods and services,
this helps in enhancing the sales and growth of company. The major negative aspect of Mark and
Spencer is that is is m mainly affected by competitors and their pricing policies. The company is
facing short term loss due to producing high quality goods ans services.
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Socio culture factor: This is the most essential part which may affected through changes arises
in market trend and customers choices. The preference of customers are rapidly change due to
changes arises at market place.
Impact: The positive impact is that the company is having wide range of customers who are
willing to taking advantage of offered services and products of Mark and Spencer, so company
is gaining sustainable profit (Zott, Amit and Massa, 2011). Negative impact is that rapid change
in customers needs and wants may affect the production operation of firm because it is required
for firm to know the current needs and wants of people.
Technological factor: In today's scenario mainly organisations are using advance technologies in
order to attaining high competitive advantage at market place.
Impact: Positive impact is that new and advance techniques helps in improvising the
performance or firm as well as organisation in order to enhancing their sales and growth.
Negative impact is that the adoption of new technologies are very cost consuming process that
may directly affect on organisational financial condition (Teece, 2010).
Legal factor: Laws and legislations are always changing due to change arises in government
policies. Mark and Spencer is concern on carry out their business activities under new laws in
order to gaining legal protection from any kind of obstacles.
Impact: The positive impact is that there is not any chance of facing any legal issue related with
business activities. Quick adoption of laws are not easy so company may face issue related to
changes arises in legal laws, it is the major negative impact.
TASK 4
P5 Internal and External business analysis of M&S
The selected firms can easily make analyse of internal and external environment by
conducting PESTLE and SWOT Analysis and this results in identifying all those factors which
are disturbing operations of business thus they are not able to achieve success in their operations.
SWOT analysis of M&S are described below as:
STRENGTHS WEAKNESSES
 They are focusing on proving high
quality products to their customers in
 They are not able to organise
segmentation for their products in order
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order to satisfy their differential
needs and wants.
 They have made plans in order to
solve all the problems which are
faced by customers in effective and
planned ways (Carroll and Shabana,
2010).
 They are organising various training
and development programmes in
order to make employees perfect in
their overall business operations.
to sell them effectively around all globe.
The main preference of customers are
based on establishing products at one
locations so they will not face difficulty.
 There can be situations at times when
business are not having stocks of goods
according to demand of customers so this
is disappointing situation for customers
thus plans should be made in order to
resolve this issue.
 They are not having good merchandising
in order to display their products while
they are having space but they are not
utilising them properly.
OPPORTUNITIES THREATS
 Company had expand their operations
online so they are attracting large
group of customers who are
becoming their loyal customers.
 Company can organise research and
development activities in order to
evaluate taste and preferences of
customers so they can manufacture
products according to needs of
customers. This is beneficial in
increasing their sales and profitability
ratios.
 The operations of business can be
easily expanded if they are giving
franchise
They are facing high competition from their
rivalry business who are dealing in same
business like Asda, Tesco etc. They should frame
strategies in order to make their strong positions
at market places.
According to advancement in technologies taste
and preferences of customers are always
changing thus there should be research made in
order to analyse the recent and accordingly
manufacture goods.
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The PESTEL Analysis are described below as:
Political Economic Social
Company had to follow all
rules and regulations that are
designed by British Standards.
They should make plans
in order to enhance their
profitability ratios and
make segments where
company can sell their
goods (Drucker, 2017).
The main social factors is related
with change in taste and preference
of customers and they should
manufacture products accordingly
Technological Legal Environmental
They are using advanced
technologies in order to
promote their promote their
products and online website
have helped them to achieve
success in their business
operations.
They are following all
legal rules and regulations
while manufacturing
goods.
Firms should focus on managing all
their waste thus development of
environmental friendly products.
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P6) Way in which strengths and weaknesses interrelate with macro factors
In a business firm, all major aspects and activities are interrelated wit each other. The
macro environmental factors are mainly connected with companies strength and weaknesses. The
strategy of SWOT analysis is connected with macro-environmental factors.
(Source: Interrelation among strength and weaknesses with macro factors, 2017)
Changes in economical situation of firm is also enhancing sales and purchasing of retail goods
and services. The company is mainly concern on producing high quality goods ans services for
their buyers, it can be considered as major strength of company. Mark and Spencer is focused on
adopting new and advance technology that are helpful in attracting large number of customers
towards the firm (Trkman, 2010). The choice and preferences of customers are rapidly changes
due to changes arises at market place this can be consider as major social factor. Thus macro-
environmental factors are having negative as well as positive affect on the strength and weakness
of firm. These are the major elements which are essential for organisational growth and success
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Illustration 1: Interrelation among strength and weaknesses with
macro factors

and enhancing the brand image of company through providing high quality and satisfactory
services for their customers.
CONCLUSION
From the above report it can be concluded that business organisation are vital factors for
economy as they are providing job opportunities to large group of people. SWOT analysis is
helpful for firms in order to analyse all difficult factors which are affecting their business
operations. Plans are developed by firms in order to used those structures which helps in
systematic flow of all their business activities. Interrelation among different organisations are
helpful in order to conduct all activities while ensuring cooperation with every business unit.
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REFERENCES
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Business environment within different sectors of industry . 2015. [Online]. Available
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organisations-within-different-sectors-of-industry-business-essay.php>. [Accessed On
14th October 2017].
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