Business and Business Environment: Sector Analysis and Impact Report

This report provides a comprehensive overview of business environments, focusing on various sectors such as public, private, and voluntary organizations, along with their respective legal structures. It differentiates between micro, small, medium, and large enterprises, examining their characteristics and operational scales. The report delves into the interrelation of different organizational functions and analyzes the positive and negative impacts of the macro environment, including political, economic, social, technological, legal, and environmental factors, on businesses. A case study of Mark and Spencer is included, analyzing its internal and external environments, as well as the interplay between its strengths, weaknesses, and external macro factors. The report concludes with a summary of the key findings and implications for business strategy and performance.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Types of an organisation sectors and their legal structures...............................................1
P2 Distinguish in between micro, small, medium and large size of enterprises....................2
P3 Relation between different organisation function.............................................................3
TASK 2............................................................................................................................................4
P4 Positive and negative impact of macro environment on business.....................................4
P5 Internal and external analysis of Mark and Spencer.........................................................6
P6 Interrelation of strength and weakness with external macro factors.................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business is an activity of earning money from different sources with respect to buy and
sell of products. It is based on enterprise entered into a profit. It can be established successfully
by financial institutions. The sale of products and services are depended on customers point of
view.. Their aim is to deal with social welfare by improving technology, social and market
trends. In private organisation they are focusing on profit in this Marks and Spenser also deal
with economic enterprises. Public sectors main aim is to satisfy customer needs and wants like
NHS company. The company Oxfam is in liquidation which is their to deal with operations and
winding up all financial affairs. This report is based on sectors and their structures which are
running in different level enterprises(Bendell, 2017). Company's complexity in transactional,
international and global organisation with their achieving objectives. It is their to define impacts
on retail sectors, internal analysis of supermarket relating with macro factors.
TASK 1
P1 Types of an organisation sectors and their legal structures.
The organisation are divided in between three sectors public private and voluntary.
Private sectors are usually comprised by an organisation in individuals and groups. The main
motive is to gain profits. Same as Marks and Spenser is a company which is free from
government control. Their intention to generate profits in return back from its owners. This
sector entitles households, traders, partnerships etc. In this, GDP represents final value of
production of goods and services. The supply of goods are provided in form of supply chain
management. Goods are purchased and consumed in form of analysing demand and supply
which describe in market(Botha, Kourie and Snyman, 2014). Their segments are controlled
under by government. Many of the organisation considered to be a part of this sector. They are
dealing with the purpose to reduces decrement and render security services.
Public sectors are providing governmental services. Their services are provided for
benefits to society rather than an individuals who are using it. As NHS company is providing
state owned enterprises which are operating on commercial basis. Their main purpose is to hold
and maximise social welfare and public interest. They deliver projects for highest savings. This
sector is making best support in expenses of services with funding rather than they are supplying
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directly to customers. It is handling with state owned enterprises for self financing commercial
terms. Their enterprises are owned and managed by central and state government. They are
partly in linked with the private industrialists. The services render to customers according to
utility like transport, electricity, telecommunication etc. Rules and regulations in this sector
furnish forces on enterprises to observe formalities in their operation(Boyd, 2017). National
Healthcare Service company is addressing in achieving savings of customers. They are
considering income distribution in order with social welfare. Goods are used as a provision in
providing universal services.
Non governmental organisation are basically referred to as NGOs. They are operating
independently from state or government. In this, functions are composed in a form to provide
services to individuals or in group. Aim of this organisation is to design and implement of
developing based projects. Their work is to promote specific cause. Main objective is to act
according to fulfil consumer expectations. Stakeholders has main interest in demand and supply
for a peculiar service. Basic idea of cost of transaction is depended on stakeholders interest and
build up trust for economic developments. They are dealing with socialisation, welfares, values
and beliefs in which clients saw through an extended formation. It is a way of generating trust
which helps in leading higher transaction costs and goods. Oxfam company is delivering high
quality services because of fiscal tending with development in making programmes.
P2 Distinguish in between micro, small, medium and large size of enterprises.
Enterprises are those who are undertaken especially difficult to require energy. It is useful
form to engage in such projects. Micro organisation defines small enterprises with an
engagement of fewer peoples working. Nomtech Ltd. Company has profit turnover about less
than 10 million pound with having less than 10 employees working. It is an IT company which
ensure working with minimising risks. They are dealing with hardware appliances and devices
used by them(Boyd, 2017) Their dealer has to provide services with ensuring skills and
connecting with the peoples with an advancement of career.
Small organisations are those who are handling with limited resources with huge amount
of money required. They are used to connect with social media quickly and in a cheapest form.
Company Oak Cash and carry Ltd. Provides cash and carry services with wide range of products
in newsagents, offices, retailers etc. This company has turnover about less than 10 million pound
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and having less than 50 employees working in that organisation. They are updating business
information by collecting reviews from customers. Company growth is maintained by rendering
high range of services to customers and receiving feedback from their views. Cash and carry is
done in a manner to sold-out in wholesale mode. Plying self service to consumers on the basis of
samples(Chae, 2014).
Medium scale organisation is typically resulting with slow and steady growth but it can
earn revenues. In this size of organisation M&S Logistics running a tank container business in
form exploring consequences. Their turnover is about 50 million pound and employees working
is not less than 250. They can gain profit from market by providing high quality labour. This
company is turning rapid growth by profits achieving from fuels. Programme encompass new
technology, equipments and expanding office network. There business is to render fuels like
petrol and diesel in containers. It is petrochemical company which supplies gas and oil with
world wide sales.
Large organisation grown to a point where it is dedicated in providing fill time it staff
members. Their having large amount of data with an involvement of thousands of people. In this,
company having modernisation in an economy with a purpose of analysing statistically and
economically. Walmart is a largest private employer company by offering incredible benefits.
They are sharing profits with associates and bonuses for management. It has more than 1 lakh
million turnover with more than 250 employees working. In this, it is a way of making positive
results for achieving strategic objectives. Their lies most trusting retailers who can turn positive
feedback response. Walmart improves customer satisfaction with a rapid roll out product
delivery.
P3 Relation between different organisation function
Private organisation scope is to earn profits. It is owned by generating profits from
individuals and groups. It is regulated by state government. Marks and Spenser is usually
reinvesting in business in order to ensure entities. Having turnover size about 690.6 million.
They are distributing legal and financial framework referred to businesses. The structure of this
company is flat in an observation(Degtyarev, Malikov and Grishin, 2014. The revenues
generating in retailing sector. Depending on the structure. Public sector organisation is leading
with a scope of providing satisfaction to society. Their purpose is to gain financially with a
primary motive. NHS company is generating funds from donation, sponsorships and
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investments. In this, it provides range of health services, good terms and conditions working
constantly. This company is depended on resources available to work with good standard.
(Finney, 2014.) Voluntarily Oxfam company is working with a scope of achieving social welfare
toward promoting with specific cause.
Transactional organisation structure faces resource allocation by balancing authority. The
goal is to implement is order to accommodate taste and preferences. Their impact came on
human rights and potentials. International organisation structure is dealing with initial stages
with calculating volume of exports and imports. Their department is set up by designing
planning and recruitment staff for training and development. Global structures are maintained in
either regions groups, strategic directions etc. in this group are maintained by participating of
countries.
The functions related to organisation related with advertising, packaging within a
departments. Company is maintaining departments in order to find reduce work overloads. The
objective of using these functions to reduce wastage and time consuming. Their objective is to
influence market place by providing customer satisfaction. An organisation has sectors which are
made in an order to compile different mission and objectives. They are considering it in a way of
improving strategies in working. Aim of this, is to make different departments in company like
HR, finance, operation etc. for reducing work load.
TASK 2
P4 Positive and negative impact of macro environment on business
Macro environment consist of those forces which indirectly affect the working operations
of the company. Such factors are uncontrollable by the company. Macro environment consist of
political, economical, technological, legal and environmental factors(Goffee and Scase, 2015).
There are some positive and negative impact of macro environment on Mark and Spencer which
are stated below:
Political: These factors are those which are made, run and changed by the governing body.
These factors are trade policy, labour law, trade restriction, tariffs and political stability.
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Positive impact: If the Mark and Spencer will work according to the rules and regulation
set up by the government the it will result in positive impact on business(Hall and Coles, 2014).
It will result in development and further growth of the business in the market.
Negative impact:If on the other hand Mark and Spencer does not follow the rules and
regulation set up by the government then the company have to face strict outcomes. The
outcome in the form of heavy fines and even closure of the company might take place.
Economical: These factors include inflation rate, foreign exchange rate, interest rate and
economic growth rate. Such factors are the determinants of an economy performance which
directly impact a company.
Positive impact: Economic situation of Mark and Spencer is healthy enough which is a
sign of increasing disposable income. In addition to this adoption of such economical changes
has lead the company to ensure sustainability of competitive position in the market.
Negative impact:If the Mark and Spencer doesn't consider the state of economy in a short
and long term issues like inflation rate,GDP and many more. Thus, it will negatively impact on
the marketing plan and strategies of the company.
Social: These factors are fundamental which one cannot control directly but they affect on
business strategies. Social factors like cultural aspects, age distribution and many more.
Positive impact:If the Mark and Spencer modifies itself as per consumers wants then will
lead the company towards successful growth in the market. In addition to this,it will also result in
generating more of revenue for the company.
Negative impact:If the Mark and Spencer doesn't carry out its business as per customers
needs and demand then it will indirect hamper the image of the company. In addition to this the
company have to suffer from loss and even the state of winding up may arise(Linder and
Williander, 2017).
Technological: These factors also plays a major role in the development of business. It includes
changes in the technology and the updates of websites and many more.
Positive impact:If the Mark and Spencer keeps on adopting the changes in technology
that is taking place will result in achieving successful growth in the market. Like use of modern
IT system has lead to increase in productivity and lower the cost.
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Negative impact:If the Mark and Spencer doesn't adopt to the changes taking places in
the technological advancement will result in decline of sales revenue and indirectly image of the
company will be affected badly.
Legal: The laws and regulation which are passed by the government for carrying out the
business operation legally refers to legal environment(Lu, 2015).
Positive impact: If the Mark and Spencer operate their business operations under legal
environment then the company will tend to generate more of profit for the company. In addition
to this shareholder will also like to invest more and more in the company as the company is
carrying out its operation in a legal and ethical manner.
Negative impact:If the Mark and Spencer adopt illegal practices to carry out various
operations of the company will result in creating poor image of the company in the market. In
addition to this it will also lead to increase in employees turnover.
Environmental: Mark and Spencer company produces products taking into consideration eco
friendly concept so as to keep environment and health of customers safe.
Positive impact: Mark and Spencer has adopted the concept of producing eco friendly
products by introducing plan A which specifies the fact of donating old clothes so as to recycle
and use it again. This has proven to be best strategy for the company in increasing sales revenue.
Negative impact:If in case Mark and Spencer doesn't adopt the strategy of producing eco
friendly goods and services then it will indirectly hamper company brand image in the market.
P5 Internal and external analysis of Mark and Spencer
For every organization it is very important to analyse the internal and external factors so
as to accomplish goal on a predetermined period (McAdams, 2015). Mark and Spencer has taken
the concept of SWOT analysis so as to analyse internal and external factors of the business.
Strength: Some of the major strength of Mark and Spencer company are stated below: Clear brand image: One of the major and powerful strength of Mark and Spencer is its
brand image. The company in itself position to a high end value products. Private labels:Second main strength of Mark and Spencer is that the company almost
have there own labels( like Indigo collection, classic collection etc.) in almost each
category of product that they produce.
 Multichannel presence: Mark and Spencer operates through multichannel in order to
render supply of products and services to their final customers. Like company operate in
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300 full line store, 310 franchised simply food store and uses online store so that large
range of customers can shop their products.
Weakness: Some of the weakness of Mark and Spencer are as follows: Inability to penetrate successfully in foreign: Mark and Spencer is unable to market
their product in middle east just because they focus only on designing western dresses not
traditional(McLuhan, 2015). This has proven to be the major weakness of Mark and
Spencer.
 Customer satisfaction:Return policy issues and in-store experience of customers has
exhibited low satisfaction level. This has also proven to be a weakness for Mark and
Spencer company and has resulted in poor brand loyalty of the company.
Opportunities: Opportunities refer to those approach in the surroundings that environs the
business concern on which it can take advantage to increase its returns. one of the opportunities
of Mark and Spencer include:
 New segment: As fashion world is evolving day by day,in Asia there is huge demand for
ethnic wear so in this area company can think of it and produce traditional wear dresses.
Thus these could be one of the opportunity to develop and enhance their market share.
Threats: These are those factors which can be harmful to the development and growth of Mark
and Spencer. One of the major threat of Mark and Spencer is its competitors. They are the one
who create harm for the company like Uniqlo, Zara, Gap and many more competitors of Mark
and Spencer.
P6 Interrelation of strength and weakness with external macro factors
Strength and Weakness Mark and Spencer are interrelated with the external macro
environment factors which are explained below:
Political factor: As the company trade policy, labour law are run and changed by the
government because of which Mark and Spencer has achieved its strength like Clear brand
image and private labels which is interrelated with political factors of the environment. One of
the weakness of Mark and Spencer is to inability to penetrate successfully in other market area is
interrelated with political factors of environment(Saebi, Lien and Foss, 2017). This is because
the company is unable to adopt the changes and traditions made by the other country
government.
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Economic factor: The clear brand image of Mark and Spencer has also lead in the
development and growth of economic stability of the country. One of the weakness of Inability
to penetrate successfully in foreign is due to the changes taking place in economic conditions and
tradition of foreign country. Thus, it can be said that economic factor are interrelated with
strength and weakness of Mark and Spencer.
Social factor: Mark and Spencer major strength is presence of multichannel in order to
create awareness about the products in the market. The choice of multichannel is selected taking
into consideration the age aspect. Like young generation uses more of online services so
accordingly products are marketed(Wang, 2014). Return policy issues is one of the weakness for
Mark and Spencer because of which most of the customers doesn't like to purchase product of
Mark and Spencer company. This lead to customer dissatisfaction. Thus, it can be said that
strength and weakness of Mark and Spencer are interrelated with social factor of the country.
Technological factor: Mark and Spencer has achieved its major strength just because the
company has adopted and operated its activities as per the changes and advancements taking
place in technology. And the company is unable to penetrate successfully in foreign market just
because the company has not adopted the technology as per the country required to produce
products for foreign country. Thus, it can be said that strength and weakness of Mark and
Spencer are interrelated with the technological factor.
Legal factor: Mark and Spencer has achieved its major strength like clear brand image,
private label of its products because company is carrying out all its operating activities as per the
legal laws published by the government. Mark and Spencer lead to employee turnover which is
one of the weakness for the company. This is, because of illegal practice adopted by the
company in order to get work done from them. Thus it can be said that strength and weakness of
the company are interrelated with legal factor.
Environmental factor: Mark and Spencer has adopted the plan a in order to use recycle
clothes taking into consideration environmental factor which is proven to be strength of the
company. Some time company uses technology in order to increase the quality of product which
is not safe for the environment. This is one of the weakness for the company. Thus, it can be said
that strength and weakness of the company are interrelated with the environmental factor.
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CONCLUSION
From the above report it can be concluded that, business environment plays a vital role in
accomplishing organizational goal. So in order to run business smoothly, pestle analysis has been
done in order to analyse the positive and negative effect of macro environment on an
organization. In addition to this SWOT analysis has also been done to interpret the strength and
weakness of an organization so as to overcome them. Lastly this has focused on the
interrelationship of strength and weakness of the company with external macro factors.
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