Business and Business Environment Analysis Report: M&S, NHS, and Oxfam

This report provides a comprehensive analysis of the business and its environment, focusing on three distinct organizational types: private (M&S), public (NHS), and voluntary (Oxfam). It begins by defining business and its environment, then delves into the different types of organizations, their legal structures, objectives, and the complexities inherent in each. The report explores the relationship between organizational size, scope, and objectives, using M&S as a case study. It examines the interdepartmental relationships within M&S and analyzes the impact of macro-environmental factors. A SWOT analysis is conducted to assess the strengths, weaknesses, opportunities, and threats faced by the businesses, followed by an evaluation of how these factors influence decision-making. The report concludes with a critical evaluation of the impacts of macro and micro factors on business objectives and decision-making processes. This analysis provides insights into the challenges and opportunities within various business environments.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain different type of organisations..................................................................................3
M1 Analyse how the structure, size and scope linked to the organisational objectives.............5
P2 Explain the size, scope, vision, mission of company.............................................................5
D1 Provide a critical analysis of complexities of different type of business structure...............7
TASK 2............................................................................................................................................8
P3 Define the relationship among all department of M&S.........................................................8
M2 Analyse the advantage and disadvantage of interrelationship..............................................9
TASK 3............................................................................................................................................9
P4/M3 Impact of Macro Environmental Factors on the working of M&S.................................9
TASK 4..........................................................................................................................................11
P5 SWOT analysis....................................................................................................................11
P6 Strengths and weaknesses interrelate with external macro factors......................................13
M4 The influence of SWOT on decision-making.....................................................................14
D2 Critical evaluation of impacts of macro and micro factors on business objectives and
decision-making........................................................................................................................14
CONCLUSION..............................................................................................................................15

INTRODUCTION
Business can be defined as an organisation which is indulging their business in
commercial, industrial or professional activities. In other words, it refers to the efforts of an
individual in order to manufacture and sell various goods and services for earning higher profit.
Other, business environment is depicted to the investigation of all the external and internal
factors which lead huge impact on the organisational performance. All the external factors are
not under control the organisation these includes political, economical, social etc. whereas on the
internal factors an organisation can establish proper control such as human, physical, financial
and other resources. In this file the organisation that is under consideration is North West
London Chamber which is give their main focus on providing effective services to other ventures
in term to get higher success. This following assignment will cover about the different type of
organisations as per their size, scope and purpose along with this their legal structure also will be
consider. In addition to this, the interrelationship between all the departments and their
significance for the organisation also will discuss in this file.
TASK 1
P1 Explain different type of organisations
In the present modern world era, several kind of organisational venture are existing such
as profit, non-profit and non-governmental. These all are different from each other on the various
aspects like aim, objectives, structure and on the other basis. Here are detailed explanation of
these organisations which are given below:
Private Organisation\ profit organisations
This type of of organisations are those in which products and services are manufacture
and distribute by those organisations or individuals who are not actively part of government. In
this, the selected organisation is M&S which is a British multinational retailer(Calabrese and Et.
Al, 2018).
Purpose
The main purpose of this company is to capture a big market share by offering a range of
products and services in the marketplace. In case of private organisation various legal structure
are available depends on their dominion in which they have their judicial habitation. These are as
follow:

Legal Structure
 Sole proprietorship- This is the foremost general formation of business venture in which
a single person is liable for operating all the activities and bearing risk.
 Partnership- It refers to the amalgamation of two or more individual who are ready to
establish a business and dividing all the profit and loss as per their share in the company
which has mentioned in agreement (Kolk, 2016).
 Private Limited companies- This type of organisation mainly formed some of the
people which have the motive to earn higher profit. All the members within this kind of
formation can advertise in terms to offer its share among the general public through a
prospects.
Hence, it can be stated that M&S is included in the private limited company as the main
objective of this firm is to raise their market share by providing various products and services to
its customers so that the satisfaction of them can be increased.
Public sector company/ non-profit company
As it can be seen by its name that this kind of organisations are operating their functions
with the aim of social service due to this they are controlled by local, state or national
government. In this at least 51% share has taken by the government. For conducting all the
activities successfully this type of organisations are collecting their funds through donation, taxes
and fees. In this aspect the selected organisation is National health care which is mainly concern
for providing effective medical services to the people(Avramenko, 2012).
Purpose
Major aim of this organisation is to provide appropriate medical services to the people
and eliminate all the inequalities from their medical facilities without making any kind of profit.
Legal Structure
 Central government- The main focus of them on making the policies, rules and
regulations for the national level organisations.
 State government- It depends on the board of members as they are responsible for
formulating all the policies at state level.
 Local government- In this stage some authorised persons is liable to regulating the
policies and operate all the operation optimally.

Thus, NHS is a public organisation due to this they have under controlled of central
government as because they are rendering their services at national level(Belal, 2016).
Voluntary Organisation/ Non-governmental organisation
Voluntary organisations refers to the group of people who entered in an association
voluntarily with the aim to attain a specific purpose. This type of organisations generally
operated by the authorised board members and trustee. The organisation has taken into
consideration is Oxfam whose main motive is to remove the global poverty so that people can
live a better life.
Legal structure :
 Trust : In this, some of the people take the responsibilities to manage all the business
operation in order to drive the business in successful position.
 Unincorporated Association : This structure have their major emphasis on preventing
the society from any kind of temporary aspects. The people joined this type of
organisations only with the motive of solve the common problems.
M1 Analyse how the structure, size and scope linked to the organisational objectives
All these elements have greatly connected with the organisation objectives it can be seen
by that if an organisation have set higher targets then it needs to regulate an effective structure.
As M&S have large number of employees in their organisation due to this it is essential for them
to adopt flat structure so that they can easily communicate with employee and can attain their
objectives. Other, a firm set its objectives as per their scope like if the organisation is focussing
on target national customers then they set objectives accordingly and if they have determining to
serve the international customers then they will determine their objectives accordingly.
P2 Explain the size, scope, vision, mission of company
Each and every business organisation is established with its own purpose and motive due
to this various ventures are existing in the current world. All the organisations have different
size, scope and purpose due to they are categorised various categories which can be understood
by following points:
Mark and Spencer: This is world-wide known organisation as it is conducting their
activities at multinational level(chaltegger, Lüdeke-Freund and Hansen, 2012). They are leading
their business in manufacturing food, home and clothing products. The main focus of this
business is to earn higher profit by enlarging their products range.

Vision : The main vision of this company is to provide a standard to their customers so that they
can compete their competitors easily.
Mission: The major mission of M&S is to provide a range of quality products to their customer
so that the market share of firm can be raised.
Size and Scope : As M&S is conduction their functions at global level due to this it is huge in
size as they have approx 959 stores in across the world in which 615 outlets is only selling food
products. The total number of employees in this association are almost 80,787 who have huge
role in taking the organisation in successful position. As per their key statistics it can be said that
they have huge scope in the marketplace as they are able to attain higher customers attention and
interest towards their products.
Products and services: M&S is indulging their business under retail industry in which they are
manufacturing a range of products such as home, food and clothing products. They always seeks
to attain huge customer base due to this they are always give preferences to produce high quality
products so that the customers belief, loyalty and trust can be maintained towards the
organisational products.
Key stakeholders: The stakeholders of this company includes customers, investors, employees,
media and civil society organisations(Ghezzi, 2013).
National Healthy Service: It is considered as a public organisation which is providing a
comprehensive range of medical services. Apart from the dental and optimal care facility they
are rendering a range of facilities without earning any profit.
Vision: The main vision of this organisation is to connect the people in order to maintain
an effective environment where people can easily adopt improvement and innovation regarding
to improve their health.
Mission: The mission of this company is to improve the health care of people and deliver
them the financial sustainability by enhancing the quality.
Size and Scope: The size of this organisation can be determined by their number of
employees which is approx 1.52 billion. Other, the scope of this firm is high as they give their
emphasis on social development by providing various service like heart surgery services, free
eye test, mental healthcare and many others.

Products and services: They are offering a range of medical services to their customers
like hospitals, dentists, mental health care services, opticians and many others without making
profit(Hillary, 2017).
Key stakeholders: It includes research scientist, clinical commissioners, professional
groups and many others.
Oxfam: This organisation is confederation of 19 charitable organisations which is
operated by Oxfam international. The main focus of them on alleviating the poverty from the
world.
Vision: The only vision of this firm is to see the world without poverty so that everyone
can be treated equally.
Mission: The purpose of this organisation is to develop lasting solution for coping up the
problem of iniquity poverty.
Size and scope: It is a non-profit firm which is operating their activities through its 5300
employees and almost 22000 volunteers. They are conducting all their functions in order to
remove the poverty and catastrophe relief due to this their scope is also higher.
Products and services: Oxfam is not selling any kind of products but they are operating
their business for social development. For this, they are working on fair trade, livelihoods, heath
HIV/AIDS, gender equality etc.
Key stakeholders: Main key stakeholder are corporate partners, trade unions, trustee,
donors and many others.
D1 Provide a critical analysis of complexities of different type of business structure
As each and every organisation is different from each other due to their its has their own
importance and complexities. As the private organisation is able to earn higher profit in the
marketplace and it is free form government intuitions but it has also higher risk to get success
and growth. Whereas, the public organisation is able to higher attention of customers as because
they are operating the activities for social development. But on the other hand it has also some
complexities like higher government interference, no profit and many others(Lozano, 2015).

TASK 2
P3 Define the relationship among all department of M&S
In an organisation, in terms to operate all the activities effectively the interrelationship
among all the departments is essential as it will enables the management of business to carry out
all their business operations optimally. For better understanding this the M&S is taken.
 Marketig and Finance department: The positive relatedness between these
departments have huge significance for M&S as marketing department is responsible for
operating all the activities related to analysing the market in which they operate so that
they can provide the information to the financial department which will help M&S in
determining the requirements of the funds to operate all the operations effectively(Nofal
and Yusof, 2013).
 Marketing and human resource department: Marketing department of M&S also
provide necessary help to HR department in recruiting most perfect candidate within the
organisation. As marketing department is taking the responsibility to advertise the vacant
position in the marketplace so that a range of potential candidate can be attracted towards
the vacant position and most perfect candidate can select which will able to give their
higher contribution in attaining the business goals and objectives.
Every organisations is using different structure in their business as per their requirements.
It is necessary for the associations to chose a most perfect structure for their business so that they
can delegate the responsibilities effectively and can establish proper communication channels.
Here are described some of the organisational structure:
 Hierarchical organisational structure: This structure in followed in those
organisations in which various departments are working under a roof. It is most
perfect structure as it contains a direct chain of command in which the power of top
level management is high so that they can establish proper control on their
subordinates.
 Flat organisational structure: In this, there is no layer between the management
and employees which enables them to establish the management to establish direct
communication with their employees.

In M&S the Hierarchical organisation structure is following as this is huge organisation
where several departments are working which needs a higher connection between them in order
to operate all the activities appropriately(Palepu and Healy, 2013).
(Source: Mark and Spencer organisation chart, 2019)
M2 Analyse the advantage and disadvantage of interrelationship
The interrelationship among all departments have huge significance to the company but it
also have some negative impact. It increase positive relationship between all the employees
which will increase the effectiveness of the business. It will also give huge contribution in rising
the profitability as each department able to share the information which will allows them to carry
out the operations optimally. On the other hand, it might increase the competition among all the
different functional departments as all employees will be able to identify about the other person
job and responsibilities which can create huge hindrance among all(Raziq and Maulabakhsh,
2015).

TASK 3
P4/M3 Impact of Macro Environmental Factors on the working of M&S.
M&S is a well-known retailing company which is dealing in home, clothing and food
products and attracting customers across the world. The various external factors are available
which have huge impact on the performance of the company in the both positive and negative
manner. In this aspects, for assessing the impact of these factors management of M&S can use
PESTEL analysis which is define below:
Political factors: These factors are those which includes all the political implication
which has applied by the government on the business organisations. It includes tax rates,
unemployment rates, trade policy, fiscal etc.
Positive- The main positive impact of this that it will provide the restrictions to the unfair trade
practices and operations so that activities of the organisation can be controlled. For example, by
increasing the trade tax government can reduce the unnecessary trade and can protect their
country currency to go another nation.
Negative- They are also interfere in business operations as in creates barriers in the business
which enables them to operate all the practices freely. For example, if unemployment rates will
be increase then the overall labour cost in the UK will be enhance that will impact on the
business cost directly(Theodorakopoulos, K. Kakabadse and McGowan, 2014).
Economical factor- This are those factors which are arising due to the changes in the
demand and supply of the whole economy. It includes interest rate, inflation rate and many
others. It is essential for the M&S to analyse these factors before making any kind of decision
related to their business as it has both positive and negative effect.
Positive- It helps the business organisation in determining the needs of economy as it reflects
changes in supply and demand which helps the organisation in carrying out their activities
accordingly. For example, the interest rate in the UK remain lower which helps the organisation
in arising their funds easily.
Negative- It has negative impact also for instance, if the inflation rate will rise in the economy
then the purchasing power of the customers will directly affected in badly manner.
Social factors- It refers to the lifestyle, financial condition and religion which have great
impact on the performance of the business.

Positive: If M&S will work as per the customers religion and culture then they will be able to
attain higher profitability and recognition in the marketplace.
Negative: It also has negative impact on the business for example, as it create several restrictions
on the company to operate their activities as per the customers perceptions in term to attract a
range of customers.
Technological Factor : These factors are occurring due to the changes in technology and
techniques which have great impact on the performance of the organisation.
Positive: It will help M&S in carrying out all the activities as the current market trends which
enables them to beat their competitors effectively(Tho and Trang, 2015).
Negative: Continuous improvement in technology also might create hindrance in working
process and also it might can increase business cost.
Legal factor : These are the laws and rules of the government which have applied to the
sales, manufacturing and purchasing of the business.
Positive- It will help M&S in providing effective preventing tools for protecting themselves
from the corruption, biased business trading and cash inflow and outflow.
Negative- Continuously changes in law lead the negative impact like Brexit have greatly
impacted on operations of M&S.
Environmental factor: These are the factors which are arising due to the biological
change such as seasons, catastrophe, pollution etc. that have direct impact on the business
performance.
Positive- The positive impact of this is that it helps M&S in making some risk preventing
solutions so that they can easily cope up with any miss happening and perform their activities
appropriately.
Negative: It contains the long process which might delay the business in getting the higher
success and recognition in the business(Palepu and Healy, 2013).
TASK 4
P5 SWOT analysis
Internal factors also lead huge impact on the performance of the business but these are
controllable. In terms to conduct all the actions successfully it is necessary for M&S to conduct

SWOT analysis so that they can identify their strengths and weaknesses and can take advantage
of opportunities.
SWOT of Mark and Spencer:
Strength Weaknesses
 M&S have higher brand recognition
due to which they are able to attain
huge customers base.
 It is offering a range of products which
enables the customer to choose best for
them.
 The another strength is that is has large
number of outlets globally which is
approx 900 outlets.
 Many people seen M&S as a non-
trendy store as it is only focus on
manufacturing ethnics wear.
 Due to their manual working system
their cost is always remain high.
 The profitability and net coverage
percentage is lower as compare to their
industry average.
Opportunities Threat
 By adopting the internalisation M&S
can increase their global presence and
can cover a big marketplace.
 They can get higher customers attention
by manufacturing the western wear also
(Nofal and Yusof, 2013).
 The consideration of new and
innovative technology also is great
opportunity for them to sustain in the
market and decrease their overall cost.
 The huge competitors of M&S is
existing in the current marketplace like
ASDA, TESCO and many other.
 They have to face tough lawsuits of
different countries which create
hindrance in their succession.
 In the UK labour rate is in increasing
position which is also a big threat for
M&S.
SWOT of NHS:
Strength Weaknesses
 It is listed in most recognised
organisation as they are focussing on
providing higher standardised medical
 It is not able to reach the rural areas as
well. They are not able to serve the

services to the people.
 The another strength of them is they are
utilising advance nursing practices.
 They are able to attract a range of
people in their organisation as they
have given their emphasis on avoiding
the symptomatic test duplications.
high quality services in the rural areas.
 Cost related to maintenance and
installation is higher in this
organisation.
 They are facing the issue of providing
the effective training to their
employees.
Opportunities Threats
 It is opportunity for them to enhance
their size by making partnership with
other firms(Lozano, 2015).
 Consideration of programming changes
will provide huge benefit to the
organisation.
 They need to consider appropriate
deliver system and maintain balance
relationship with clinical experts.
 Higher competitiveness is available in
the market like Fitnut, Nuffield health
etc.
 Lack of proper system of keeping the
patient information or data private.
 Financial issues also create hurdles in
operating all the medical services
effectively.
P6 Strengths and weaknesses interrelate with external macro factors
The interrelationship of macro environment with the strength and weakness of M&S are
discussed as follows :
Basis Strengths Weaknesses
Political
M&S applies all the policies and
strategies in accordance with
government rules and regulations.
The company policies have to be
changed with the change in
government rules.
Economical
M&S will be able to increase its sales
in the country if the economic
condition of the country is stable and
customers have high purchasing
power.
If the labour rate increases then the
cost of products offered by M&S will
also increase.

Social Factor
M&S offers clothing for all the age
groups and the need for fashion
garments is also increasing in the
market.
The needs of customers keep on
changing with time which results in
change of company policies and
strategies to meet the changing
customer needs.
Technological
The company uses high edged
advanced technology so as to provide
customers with fashionable clothing
with advanced and unique designs.
The competition from other firms is
increasing like ASDA who are also
using high technologies to attract
customers towards their products.
Legal
The company is following all the
laws operating in the country so that
the government intervention can be
reduced and employees can be made
more confident in working with the
company(Hillary, 2017).
Various laws that are to be followed
leads to increase in prices of products
which decreases the customers from
purchasing their products.
Environmental
The company follows all the
environmental laws so that it can
grow and develop in the market
sustainably without harming the
environment.
Government keeps on changing
environmental policies and makes the
use of natural resources more strict
which increases the cost of company
as the R&D costs increases in search
of other alternatives.
M4 The influence of SWOT on decision-making
The decision-making of managers depend on the internal and external factors which
affect the organisation as these factors affect the business and have both positive and negative
impact on it. The strengths of the business helps it in growing and developing in the competitive
market by being able to eliminate the negative effects of environment whereas weaknesses of
business creates hindrance in the operation of business. These weaknesses are to be reduced
whereas strengths are to be enhanced so that organisational productivity increases in the market.

Hence, decision-making of managers are highly influenced by its strengths and weaknesses.
(Ghezzi, 2013).
D2 Critical evaluation of impacts of macro and micro factors on business objectives and
decision-making
Macro and micro factors of the environment influences both business objectives and
decision-making as these factors determines the ability of the organisation to grow in the
competitive market. Business objectives can be achieved if all these factors helps the
organisation to grow in the market by being able to satisfy customers with their goods and
services. These factors also affect the decision-making so that their negative impact on the
company can be reduced by formulating strategies and policies that can help it in dealing with
both micro and macro environmental factors.
CONCLUSION
From the preceding study, it can be understood that assessment of business environment
is necessary in terms to operate all the activities as per the current market situations. In the
present world, various business forms are available which create differentiate form each other on
the several aspects. The consideration of internal and external environment is essential which
enables the organisations to carrying out their operations appropriately. In this aspect, the
PESTEL and SWOT analysis can be taken into the consideration by the organisation as it will
enables the organisation to analyse the challenges and opportunities of the business so that they
can attain their business objectives and goals effectively.

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