Detailed Report: Business Environment Analysis of Different Sectors

This report provides a comprehensive analysis of the business environment, focusing on three distinct sectors: private (Mark & Spencer), public (National Health Services), and voluntary (Child Care). The report begins with an introduction to the business environment, defining its internal and external factors. Task 1 delves into the types, purposes, and legal structures of organizations within each sector. Task 2 examines the size and scope of these organizations. Task 3 explores the interrelationships between different organizational departments and their impact on business operations. Task 4 identifies the positive and negative impacts of the macro environment, utilizing PESTLE analysis to evaluate political, economic, social, technological, legal, and environmental factors. The report also evaluates internal and external organizational analysis and examines the interplay between strengths, weaknesses, and external macro factors. The conclusion summarizes the key findings and insights, supported by a comprehensive list of references.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different type and purpose of organisation and its legal structure........................................1
P2 Size ans scope of different types of organisation...................................................................3
TASK 2 ...........................................................................................................................................4
P3 Relationship between different organization and their interconnection between other
departments.................................................................................................................................4
TASK 3............................................................................................................................................5
P4 Identification of positive and negative impact of macro environment of an organisation. .5
TASK 4............................................................................................................................................7
P5 Evaluating internal and external analysis of an organisation.................................................7
P6 Examining how strength and weakness interrelated with external macro factors...............8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment is defined as a framework of collection that consist of internal and
external factors that include employees, customer needs and wants, supply and demand,
activities of government in marketplace. These factors usually affect function of business both
in positive and negative manner as well as influences a firms operation within different situation
of environment. As every business organisation wants to operate in dynamic and distinctive
working environment as it cannot exist in isolation form. In this report organisation chosen is
Mark & Spencer ( Private Sector), National Health Services ( Public Sector) and Child Care
( Voluntary Sector). This assignment is going to analyses different types and purpose along
with its size and scope. Eventually, identifying relationship between different organisation
function in order to know their interconnection with other departments of business operation.
Moreover, analysing internal and external factor to know what are the strength and weakness of
a organisation in business operating environment and its interrelation with external macro
factors.
TASK 1
P1 Different type and purpose of organisation and its legal structure
In context to organisation business environment is defined as collection of individual,
entities and other factor that may not be under control of business operation but its impact on
company performance profitability. Each and every business are operating with the motive of
earning profitability from their business operation and function. For such instance there are
many types of organisation which are discussed below:
Private Sector: The private sector is that part of economy that is owned or run by individual
with the motive of earning profit. It is one the most diverse sector as well as contribute large
amount towards economy.
For example: Mark & Spencer is private sector organisation. It is a retailer merchandise
who are dealing in clothing, home products and luxury food items in the marketplace of same
product line.
Purpose: The purpose of this organisation is to provide premium quality of product in
competitive marketplace as well as acquire high market share from its competitors of same
industry line.
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Types of private sector:
Partnership: It is a formal agreement between two or many people who agree upon a
suitable condition in managing and operating business. In this type of business in which two or
more individual pool Mahoney, use their skills and resources on the condition the agreed upon it.
Sole trader: A sole trader is that type of business which is owned and fully controlled by
a single person. It is known as one of the simplest form of business as it all activities like raising
funds, managing resources of itself.
Legal structure of Mark & Spencer: The legal structure of Mark & Spencer is that they are
following flat legal formation in operating their business function and operation. Moreover, it is
a sole trader who are operating their business at world wide.
Public Sector: This type of organisation are refer to those organisation which are working under
government services. Such as public hospitals, public transportation, health care and military
services.
For Example: Public sector organisation National Health Services which is affiliated
with heath and social care for the general and needy people. They are operating at wider context
0f health and services to the ordinary people.
Purpose: Its purpose is to make utilisation of their product and services according to the needs
and wants of an individual as well as responding towards need and requirement of its patience.
Types of public sector:
State Government: It is define as a government that consist of laws and regulation for a
particular state. The rules, norms, policy and procedure are only for a particular state so that they
can look forwards the problem and needs of a particular area.
Central Government; Government of central states out an absolute control over unitary
states. This type of government governs out the entire nation with its own rules and regulation as
well as control and sustainable economic development of an Union.
Legal Structures of National Health Services: The legal structure followed by this organisation
is hierarchical legal structure in the business operation so that uniformity can be maintained
within its business operation. Moreover, it falls under central government which govern by
government fully.
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Voluntary association: Voluntary association consist of people who are willing free to work
towards benefit of an organisation with specific social purpose. Moreover, it consist of those
people who work with their mutual interest for society and business environment.
For example: Child Care is a voluntary association who are working for the welfare of
the children as well as society.
Types of voluntary sector:
Trustee: A trustee is said to a person who have given full control and power of
administration on an particular area. It is a natural person who is legally entitled with
commitment of charitable purpose.
Charity: It refers to an business firms who are engaged in raising money and other
necessary amenities which are beneficial for the needy people. Such as donating money, food
and other useful stuff.
Legal structure of Child Care: The Child Care organisation are following flat legal structure in
their business operation as they are mostly engaged toward building up a child care in most
appropriate manner.
P2 Size ans scope of different types of organisation
Private sector ( Mark & Spencer): Mark & Spencer is one of leading retailer multinational
organisation who are offering premium quality of goods and services to its potential customer's.
Size: Mark & Spencer has large size of business operation as they are operating in
variety y of sectors. Moreover, they have huge employees and staff workforce , positive attitude
of their stake and share holders which are contributing their best towards success.
Mission: It mission is to have an aspirational quality of their product and services in
competitive marketplace with the aim of maintaining its premium quality of product so that it
value penny for customer's.
Vision: Its vision is to acquire large number of market share with their premium and
affordable product and services as well as working in improving proficiency in competitive edge.
Scope: The scope of this organisation is to range over both international and domestic
marketplace. They are operating more that in 35000 outlets at worldwide.
Voluntary Association (Child Care)
Child Care is public sector organisation which are working towards the welfare of child
who are taking care child who want to develop its career in an effective manner.
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Size: They are developing their business in large so that they can take care of child in
building up their career.
Mission: Its mission is to provide best quality of nursing house and centre for children.
Vision: Its vision is to raise a child in an appropriate manner with the support of their
parents so that they can have a wonderful a career.
Scope: The scope of shaping a child in such a manner that they can build up their career
without any difficulties.
Public Sector (National Health Care)
National Health care service is one of the leading organisations in health care sector that
is owned publically so that they can provide best facilities to the needy and poor people.
Size: They are acquiring large number of market share in hospitality industry as they are
providing better quality of goods and services in more than one state.
Mission: Its mission to provide premium health care services to its potential customers.
Vision: To serve for the needy and poor people in an effective manner so that they can
live their life in an effective manner.
Scope: Its scope is provide high quality of medical services so that they can attain their
patience as well as listen to their problems and treat them accordingly.
TASK 2
P3 Relationship between different organization and their interconnection between other
departments
In today’s context business are operated with different function such as public, private
and voluntary organisation. Each and every business had its own problem or issues in operating
their function or their day to day activity. For such instance there are different types of departs
which are help each other in operating business function smoothly so that they can meet up the
uncertainties of business function in an effective manner. Moreover, there is interconnection
between each and every department so that a respective organization can achieve its goals and
objectives in an effective manner.
Marketing department: The marketing department of Mark & Spencer are following a
flat structure in their business function so that they can perform their day to day activities. This
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depart is linked with both finance and human resource as with proper budget and human resource
with in an organisation so that marketing can done in an effective manner. Moreover,
interconnection will lead to have effective cost structure and appropriate decision can be taken.
Hence, if there no proper link between department they there will be struggle and respective
organisation will not able to attain its goals and objectives in an effective manner.
Finance department: Finance department play’s an effective role in decision making
process in an appropriate manner. Moreover, finance is linked with other department such as
human resource department and marketing department in order to attain business goals and
objectives in an effective manner. For such purpose there should be proper allocation of fund
such each and every activities can be maintained such as salary, wages and other activities. Thus,
in this manner manager of respective organisation should follow clear chain of command among
employees so that business can perform its function and activities.
Thus, from the above mention it has been determined that each department of an
organisation that is human resource department, finance department that are playing an essential
role within an work place. Hence in this manner each and every department are interlinked with
each other so that business goals and objectives can be achieved in an appropriate manner within
stipulated period of time.
TASK 3
P4 Identification of positive and negative impact of macro environment of an organisation
Macro environment consist of external factors that are not controllable by the forces that
usually influences an organisation in taking decision so that business aims and objective can be
attained in an effective manner. It also has both positive and negative impact that effect on
strategies, operating business activities or else influenced by government norms and regulation.
Herein, Mark & Spencer are adopting PESTLE analysis in order to know competitiveness and its
impact on business operation and function.
Political factor: This factor determines the extent how government policies and
procedures are impacting business environment or a specific industry. While operating in
different countries Mark & Spencer are facing many issues and problems in trading out their
business.
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Positive impact: With the support of government Mark & Spencer are operating their
business in an effective manner as well as they are able to create value to its customers and
economy with clear business practices. In this manner they are able to maintain their productivity
and profitability in competitive marketplace.
Negative impact: Though they are operating at many states or countries their stability Is
being impacted with norms and regulation of different countries. Thus, they are bounded with
rules that so that they can maintain their business performance.
Economic Factor: Economic factor refers to those factor that are impacting on business
performance which directly or indirectly impact on business. The factors that are impact on
business operation of Mark & Spencer are
Positive impact: This organisation is able to maintain their political stability as their
offering best quality of product and services to its potential customers. Moreover, they are
focusing once friendly product and services so that they maintain stability for longer period of
time.
Negative impact: It is affected in the competitive marketplace due to high number of
competitors in same industry line. For such purpose they need to do proper market analyses that
they can overcome their pit falls.
Social Factors: This factor consist of buying and consuming pattern of customer in
which an organisation is operating their business function as per the need and wants of customers
in competitive marketplace.
Positive impact: Mark & Spencer have develop themselves in such a manner that are
more attracted towards the needs and want of customers. Moreover they are featuring about their
product into different segments as well as they are marinating their product as per the culture and
taste of people.
Negative impact: Mark & Spencer has faced many issues and problem so that they are
not able to maintain their product as they charging high price, thus, it leads to decrease their
price in competitive marketplace.
Technological factors: This factors consist of adoption of new technologies innovation and
development that could affect a market or industry. Some of the factors that are effecting
technological factors that are effecting business operation
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Positive impact: With the adoption of modern technology’s that they can increase their
productivity moreover, they are using automated purchases in order to reduce supply of cycle for
products sold online.
TASK 4
P5 Evaluating internal and external analysis of an organisation
If an organisation wants to know competitiveness a business adopt SWOT analysis in
order to know the strength and weakness, opportunities and threats so that they can improve their
strategies in an effective manner.
Strength: Strength refers to the factors that refers distinguish a company to operate it
from competitors such as having strong brand image and unique identity in market place. Mark
& Spencer have many strength and weakness as they are focusing on varieties of cloth in to
different segments. Moreover, they are popular in designer brands and premium quality of goods
and services in competitive market place.
Weaknesses: Weaknesses refers to those are where an organisation needs to improve
their performance assist optimum level in order to remain competitive in market place. Mark &
Spencer need improve their return policy as well as develop their both online and store
experience. Moreover, they are not utilising their technologies in an effective manner which is
leading to reduce their work efficiency in competitive market place.
Opportunities: Herein, a respective organisation have various opportunities by entering
into new segments with the innovation in to trendy and fashionable clothes. In today’s market
people are looking towards ethic and traditional clothes in which they can grab large number of
opportunities.
Threats: Threats refers to those factors in which environmental in growth of business.
The threats of Mark & Spencer is that they are lacking behind in market place due to high
number of competitors in competitive market place. For such purpose they need to come up with
proper strategies so that they can defeat their components in marinating their sustainability in
competitive market place.
From the above discussion it has been concluded that Mark & Spencer are having high
good brand image in competitive market place. Moreover, there are several opportunities to grab
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in opportunities with ethic and tradition wear. Thus, in this way they are creating in a unique
place in same product line in an effective manner.
SWOT analysis is done to analyse strengths, weaknesses, opportunities and threats which
is necessary to know the level of competitiveness in the market. A SWOT analysis of NHS has
been provided below:
Strengths: It is a public sector organization which is relied upon by huge number of
people due to its services. It has gained a popularity and is considered the first choice of
government in case of emergencies.
Weaknesses: There are some group of people who do not prefer public sector company
because of lack of advance technologies and techniques.
Opportunities: It can collaborate with other private hospitals and companies for updating
its tools and equipment. Furthermore, it can expand its operations area-wise.
Threats: Some of the incidents in the past that has caused death or serious injuries to its
patients due to negligence has damaged its image. Also, huge competition is there in UK
P6 Examining how strength and weakness interrelated with external macro factors.
Political factor:
Strength: Government have supported Mark & Spencer to develop their business in an
attractive manners that they can earn their profit as well as creating valuable of trade that is
beneficial both for organisation and economy.
Weakness: Though there are facing operating business at different countries they have
faced many problem as they have to pay high tax rates and different norms of operating business.
Economic Factor:
Strength: In order to maintain economic stability as they are offering premium quality of
product and services to its potential customers. For such instance they need to complete analysis
as well as they can maintain sustainability for longer period of time.
Weakness: Due to high competition it has faced many issues regarding their offerings
that lead to decrease in customer adversely impacted organising productivity and profitability in
market place.
Social Factor:
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Strength: They are marinating their product and services in wide ranges in men women
and children as per their need and preferences. Apart from this they need to maintain culture and
ethical aspects within their offerings.
Weaknesses: Due to high competition the respective organisation are facing issues
regarding price of their offerings which lead to decrease their price in competitive market place.
Technological Factor:
Strength: The organisation need to adopt advance tools and techniques so that they can
meet up their goals and objectives in competitive market place in an effective manner as well as
maintain reputation in market place.
Weaknesses: The mangers of Marks & Spencer need to focus on more advance in their
marinating quality of goods and services so that they can marinating their stability in
competitive market place.
On the other hand, if it is talked about NHS, then there are a range of external factors that
are carrying strengths and weaknesses and these are given beneath:
Political factor:
Strength: As, NHS is dealing within the healthcare sector and is a governmental body of
England, political parties has supported the company due to services provided by them.
Weakness: As NHS a governmental body, company majorly face issues regards to
changing the pratice needs. This impacts negatively due to rapid alterations.
Economic Factor:
Strength: NHS is offering individuals that are below poverty line with free health related
services.
Weakness: At the time of recession, NHS became unable to deliver right services to
patients based on their needs.
Social Factor:
Strength: Being a governmental body of England, basically all the citizens believes on
NHS and provided services by the company.
Weaknesses: Major weaknesses over here was found the scandals that came in front of
citizens of England. This affected values of them and made them against the agency's services
that are being offered.
Technological Factor:
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Strength: NHS basically adopts, the technology and continuously starts offering
individuals with a good range of services to customers.
Weaknesses: Due to lack of resources and money, NHS deals with a good amount of
techniques that are required to be adopted in order to serve better to patients.
CONCLUSION
From the above discussion it has been concluded that business environment play’s an
effective role so that business can run in a smooth way and effective manner. Moreover, both
internal and external factors help an organisation to what are the factors that are effecting
business goals and objectives with proper strategies and planning. It is important to know what
are the size and nature so that they attain competitive place in market. Thus, with the help of
positive and negative factor help to know what are the strengths and weakness as well as
improve their position if they are lacking behind in competitive edge.
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