Business Environment Report: Functions, Impacts, and Analysis

This report provides a comprehensive analysis of the business environment, examining public, private, and voluntary organizations, including their types, purposes, and legal structures. It delves into the size and scope of Marks & Spencer, the NHS, and the British Red Cross Society, outlining their missions, visions, goals, and objectives. The report further explores the relationships between different functions within Marks & Spencer and their objectives, encompassing internal, external, and support functions. Additionally, it assesses the positive and negative impacts of the macro environment on Marks & Spencer's business operations. Finally, the report concludes with PESTEL and SWOT analyses of Marks & Spencer, providing a detailed understanding of the political, economic, social, technological, environmental, and legal factors influencing the company's performance, along with its internal strengths, weaknesses, opportunities, and threats. This assignment, contributed by a student, is available on Desklib, a platform offering AI-based study tools and resources.

BUSINESS AND BUSINESS
ENVIRONMENT

Definitions
Business is a legal and organizational entity which is
formed with the group of persons who join together to
achieve the organizational goals and objectives.
Business environment includes all internal and
external factors which affect the operations of business.
These factors includes employees, customers,
management, supply and demand, and rules and
regulations related to business.

P1 Types and purpose of public, private and
voluntary organizations and legal structure
Public sector organizations: these are the organization owned and controlled by
Government of the country (Fong, 2016). The plans and policies of these
organizations are made by the government by keeping in mind their purposes.
Central government controls the organizations providing their services to whole
country like defense, health, social security, roads and universities etc. services.
Local government controls organizations which provide their services to particular
state or city like education, social services, roads and parks etc. services.
Purposes: Main aim of these organizations is to provide essential services to public
and to use resources of country well for the benefits of society. There are two types
of Government who control these organizations i.e. local and central.

Types of public organizations:
•Schools and universities are the public institutes funded by central and local
government for providing primary and secondary education services to public of UK.
•Public corporations are controlled by central government and their funds from public.
The chairman and directors in these companies are appointed by government. For
examples NHS England, BBC and royal mail etc.
•Statutory corporations are controlled by local government. For examples Transport for
London is provide transport services in greater London.
Legal structure
The public organizations are controlled by government so there are many legal
restrictions. The legal restrictions for organizations funded by centrals government is
more than local government. Legal restrictions on organizations controlled by both
government have to fulfil the legal formalities of both the governments.
For example: NHS is the publically funded health care system for England. The purpose
of this organization is to provide health and care services to people of UK and visitors.

Private sector organization: these are the organizations which are owned and controlled
by the private individuals.
Purposes: The main aim of these organizations is to earn profits. These organizations are
finance by the private individuals (Ebert, 2014). Bank loans etc. The private individual can
be the businessman, group of persons etc. the other aim of these organizations is to increase
market share and market growth. The other aim is to increase the sales by providing
products.
Types of private organizations:
• Sole proprietorships: The business organizations are small operating firms which is
owned by the sole traders. The entire operations of business are manages by the sole
owner of the firms.
• Partnerships: these are owned and controlled by two or more partners. All partners
manages the operations of business and agree to share profits and loses of business.
• Public Companies: This are the publically listed companies which are owned by the
shareholders who invested in company. Shareholders select the directors who manage the
business activities. They offer their share to public for sale.
• Private companies: These companies not offered shares to public for sale.
• Franchises: This are the firms which act as the agent for the company’s products.

Legal structure: the private sectors have less restrictions then the
public sectors. The sole proprietors can start business when they have
enough funds to start business. The partnership firm can start business
as per the partnership acts in UK. The public companies need to fulfil
more restrictions then private companies.
For examples: Marks and spencer is private sector organization which is
the public listed company listed in London stock exchange. The purpose
of marks and spencer is to provide clothing, house hold and food
products to the public of UK.

Voluntary organizations: these are the organizations not owned and controlled by
private individual (Nielsen, PeterBøegh, and Timothy Sturgeon, 2014). Someone is
responsible to ensure that the set objectives are achieved with the available finance.
Purposes: Main aim of this organization is to achieve that goals for which the
organization is set up. They provide help to the people indifferent manners (Carroll,
and Buchholtz, 2014). To survive they spent only that much amount which is
available from fundraising, grants and donations.
• Types of voluntary organizations:
• Charitable trust is the organization work for charitable work and funded by
trustees.
• Foundations are privately started to provide funds to people related to foundation
aim.
• Non-government organizations (NGO) which are formed by the citizens
voluntarily.
• Nonprofit organizations are the organizations not work to earn profits. These are
formed to perform that work for which it is formed.

Legal structure: this are cam be formed by the legal
formalities which is required to be filled by the
charitable organizations. This can be started when there
is proper fund and donations available.
For example: British Red Cross Society is the nonprofit
organization which is the registered charitable
organization. This society is work to provide the help to
the people at the time of crises in UK as well as world.
Legal status of this is it is incorporated by royal charter.

P2 Size and scope of marks and spencer’s, NHS and British Red Cross society
NHS England is the public sector organization which is owned and
controlled by UK government. It is a responsibility of Secretory of state
for health to ensure the operations of NHS and it is funded by the
department of health (Prajogo, 2016). It is one of the most popular
health care service provider of United Kingdom.
• Size: British Red Cross is the large public organization which have
more than 1.4 million employees and it is also have 211 clinical
commissioning groups.

Scope:
• Missions: “to provide health care to legal resident of England”.
• Visions: “to provide free emergency treatment for infectious diseases
to everyone including visitors”.
• Goals and objectives:
• This organization provide health and care services to public with
high standards.
• They make sure that public resources are utilize efficiently.
• Their main aim is to provide health care services irrespective of
money.
• They provide routine checkups, treatments, etc.

Marks and spencer is founded by two brothers Michel marks and
Thomas Spencer which is the private sector organization. It is the retail
firm of United Kingdom and provide their services to the world. The
company is specializes in selling clothes, home products and food
products.
• Size: marks and spencer have currently 979 stores in UK which
includes 615 stores who sold food products only. It also have 454
stores in the international market which includes 58 stores in India, 45
stores in Turkey, 37 stores in Russia, 27 stores in Greece, 17 stores in
Ireland, 14 stores in France, 11 stores in Poland, 6 stores in Hungary,
and 5 stores in Spain. It is a large private organization which have
84939 employees who help in achieving the objectives of the firm.

Scope:
• Missions: “to provide high quality products in different areas like
cloths, food, home, and financial services”.
• Visions: “to become world most sustainable major retailor by 2018”.
• Goals and objectives:
• Increase the sales of the products like cloths, food etc.
• Increase the market share in the retail sector.
• Provide innovative products and services.
• Provide high quality and fresh products and services.