Business and Business Environment Report: M&S, Types of Organisations

This report delves into the intricacies of the business environment, exploring various organizational types such as private, public, and voluntary organizations, with a specific focus on Marks & Spencer (M&S) as a case study. It begins by defining and differentiating these organizational forms, highlighting their structures, functions, and objectives. The report then provides background details on M&S, detailing its operations, organizational structure, and stakeholders. It further examines the interrelationship of various functions within the organization using an organizational chart. A PESTEL analysis is performed to demonstrate the impact of external factors on business operations. Additionally, the report conducts an internal and external analysis of M&S, identifying its strengths, weaknesses, and how they interact with macro-environmental factors. The report concludes by summarizing the key findings and insights gained from the analysis, providing a comprehensive understanding of the business environment and organizational dynamics. This report is designed to provide students with a detailed understanding of business environments and organizational structures, offering valuable insights into real-world business practices.

BUSINESS AND BUSINESS ENVIRONMENT
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Table of Contents
Introduction................................................................................................................................3
LO1 Explain the different types, size and scope of organisations.............................................3
P1 Different types of organisations and the growth of the international business
environment............................................................................................................................3
P2 Explanation of background details of the organisation.....................................................5
LO2 Demonstrate the interrelationship of the various functions within an organisation and
how they link to organisational structure...................................................................................7
P3 Functions the chosen organisations, using an organisation chart to show how the
functions interrelate................................................................................................................7
LO3 Using examples to demonstrate negative and positive influence over business operations
....................................................................................................................................................9
P4 PESTEL analysis of Marks & Spencer.............................................................................9
LO4 Determining internal weaknesses and strengths and explaining interrelationship with
macro factors............................................................................................................................12
P5 Internal and external analysis of the Mark and Spenser UK..........................................12
P6 Explaining the strength and weaknesses that interrelates with the external macro factors
..............................................................................................................................................13
Conclusion................................................................................................................................14
References................................................................................................................................15
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Introduction
There are the different type of organisations which are differentiated depending on their
purpose and functions. However, these organisations are also interrelated to each other. The
different type of organisations has their structure and their work procedures at different. It
can be said that in this age of globalisation this different type of organisations is changing
their pattern according to their customer's convenience. To this regard, it can be said that
depending on the stakeholders and their response these organisations are changing their
organisational policies. Finally, it can be said that the external business environment
influences the various type of organisations. Therefore in this study, the understanding of
different type of organisations and their functions and their interrelationship with the business
environment will be explained.
LO1 Explain the different types, size and scope of organisations
P1 Different types of organisations and the growth of the international business
environment.
Private organization- The private organisation or company refers to an organisation which
is owned by an individual or few individuals. The main purpose of this organisation is to
gaining profit from the business process. Most of the private organisations either have one
owner or few owners. The role of the shareholders is very important in the private
organisation. However, it can be said that the private organisations have their share in the
market and the shareholders of these organisations are associated with selling and purchasing
these shares (Ojha, 2014). The private organisation can be build up by Corporation, a person,
a partnership, Association or agency. However, finally, it can be said that the private
organisation is not part of the Government of the country it is mainly privately owned. In
addition to that, the individual organisations can be both profit and non-profit organisation. It
can be said that the retail stores, local businesses, credit unions are examples of a private
organisation (Saleh, 2015).
The growth of the private businesses in the international environment is flexible if enough
investment or financial backup is possible. However, a private organisation can successfully
develop their strategy for outside the national boundaries depending on the laws of those
countries. However, there are few challenges they might face in the international borders
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those are related to language, human resource, etc. However, with collaborating with the
private organisations in the International boundary, they can easily cope up with these
challenges and expand their business for developing an international customer base (Ojha,
2014).
Public organization- A public organisation is part of the government. The government
develops the public organisations and run for the Welfare of the society. It is operated by the
government of the organisation which can be part of any type of government like the Federal
government, rural state, local government, etc. However, it can be said that the public sector
is referred to the educational organisations, police services, Healthcare services and other
central government departments. The public organisations are mainly associated with the
development of the country and providing the public of the country all the facilities they
required (Nuottila and Kujala, 2016).
The expansion of a public Organisation in the international boundaries is related to the
development of the country. However different banks which are publicly owned in the United
Kingdom has expanded their business in the international boundaries for gaining more profit
from other countries and contributing the profit to their country's development and growth
process. However, if a public organisation wants to expand in international boundaries, they
had to collaborate with the Government of those countries for the expansion process
(Denhardt and Catlaw, 2014). This process is a most complicated process for expanding the
business because it takes a lot of time and a good relationship between those countries.
Voluntary organization
The voluntary organisation is a different type of organisation which is associated with only
the development of the state. However, these organisations are developed by volunteers with
who share the similar belief and together in develop a group for the development of the
society. Most of the time staff of these organisations and not have to pay. These organisations
can develop with self-governance or can be funded by trustees (Mohiuddin and Dulay, 2015).
However, the voluntary organisations are mainly known for their not for profit organisation.
These organisations are being also funded by government sometimes. In addition to that
common interest in the members of this organisation provides them with a specific place in
the country sometimes the voluntary organisations and not always legally structured.
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If a voluntary organisation wants to develop outside a country, they have to share a common
goal with other countries voluntary organisations. These goals should be related to any social
issue or for the development of the ethnic group. However, the voluntary organisations are
not for profit organisation, and therefore the contribution of the country’s economy is nearly
absent in this organisations (Mohiuddin and Dulay, 2015).
P2 Explanation of background details of the organisation
Private organization
One private organisation of United Kingdom is Marks and Spencer. This organisation has
developed their business around 134 years ago in the United Kingdom. Today this
organisation is globally spread, and they are associated with clothing, home products and
luxury food products for their customers. This organisation is accounted under the Retail
Industry and around 84900 employees worldwide (Marksandspencer.com. 2018). This
organisation is international organisation and counted under the large size organisation.
However, the Vision and Mission of this organisation is to provide the customers with the
best quality of products for their daily life. The business objective of this organisation Marks
and Spencer is to expand in every corner of the world. The organisational structure of Marks
and Spencer refers to the limited level of management. This is associated with one
administrative level and Frontline employees. This organisation structure is pyramid shaped,
and in the top of the pyramid, the management and the bottom parts of the pyramid different
organisational departments are associated (Zokaei et al. 2016). The different stakeholders of
this organisation are the customers the employees and the suppliers.
Public organization
One of the public organisations of United Kingdom is higher education funding Council for
England. This organisation is associated with the educational funding for the public of United
Kingdom. This is part of the Department of Education of this country which is mainly
developed for students funding for higher education. This organisation provides funding to
many of the colleges and Universities of United Kingdom as well as they also contribute to
researchers in those academic sectors. This organisation is a medium sized organisation who
is only associated with providing funding for different researchers and students. However, the
primary objective of this organisation is to the growth of the educational area of United
Kingdom and helps this colleges and Universities to grow and innovate (Nuottila and Kujala,
2016). The organisational structure is a subdivision of the education department of England.
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The different stakeholders of this organisation are the students, college, university and the
government. This organisation is highly related to Charity regulations because the
government develops the entire structure and they have to report to the government directly
or to the educational department of United Kingdom (Denhardt and Catlaw, 2014).
Voluntary organization
One of the voluntary organisations in the United Kingdom is the Cancer Research UK. This
organisation has developed in the year of 2002 for research on cancer and also providing
awareness charity all around the United Kingdom. This organisation is associated with
conducting studies on cancer and reducing the number of the cancer patient. In addition to
that this is the world largest Cancer Research charity which is associated with prevention
treatment and diagnosis of the disease. This organisation has around 40000 of volunteers. The
mission, vision and objective of this organisation us to research on cancer for minimising the
number of the cancer patient in the United Kingdom as well as other countries (Mohiuddin
and Dulay, 2015). This organisation does not share any proper organisational illegal structure
because the main structure of this organisation is dependent on laboratories and health
centres. However, different doctors are part of this association from all over the world who
are together working on achieving the vision of this organisation. The different stakeholders
of this organisation at the public of United Kingdom, the doctors, the staff or employees
working in this organisation, etc(Mohiuddin and Dulay, 2015).
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LO2 Demonstrate the interrelationship of the various functions within an
organisation and how they link to organisational structure
P3 Functions the chosen organisations, using an organisation chart to show how the
functions interrelate
The Marks and Spencer is one of the biggest retail organisations in the United Kingdom. The
organisation has credit all over the world with around 900 stores worldwide. The
organisational structure of this organisation is large and associated with the functions or
operations of the organisation. However, in the top of the organisation chart, the CEO of this
organisation belongs. It has to understand that as this organisation is globally spread the
structure follows for each of the areas of its expansion. However, under the CEO of the
organisation, there are three major areas, which are essential. The first of them is a business
analyst manager. Following that, the development manager and quality assurance manager
works (Marksandspencer.com. 2018). There are different products which are selling by this
organisation to the customers and therefore for every different product managers operate.
Under the business analyst manager, there is a different business analyst who is associated
with each of the product. Under the Development Manager, different developers work for
each of the products sales by Marks and Spencer. Finally, the quality assurance manager has
various employees who work as the tester of the products.
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CEO
business analyst
manager
business
analyst
PRODUCT 1
business
analyst
PRODUCT 2
development
manager
developer
product 1
developer
product 2
quality assurance
manager
tesrer
product 1
tester
product 2

Figure 1: organization chart
(Source: Marksandspencer.com. 2018)
Except that there are other departments of the organisation of Marks and Spencer those are
the administrative department, security department, Logistic department and retail shop
department. These departments are part of the organisation or every shop of Marks and
Spencer.
Figure 2: other departments of Marks and Spencer
(Source: Marksandspencer.com. 2018 )
However, the organisation Marks and Spencer is mainly a shop oriented organisation;
therefore, the role of the retail shop is essential. The organisation is working in different
regional areas. Consequently, the staffs of the shop are mainly the local population of that
area who can efficiently cooperate with the customers of the shop.
Organizational objectives- The main organisational objective of Marks and Spencer is to
gain leadership in the clothing and food selling industry. However, they also targeted to
provide their customers with the value and quality products. Superior quality is the main
objective of this organisation. In addition to that, the organisation also shares objective which
is associated with employee orientation (Zokaei et al. 2016). The organisation provides their
employees best way to their career growth and also helps them to gain more achievement in
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CEO
administrative
department
SENIOR
MANAGER
GENERAL
MANGER
EMPLOYEES
security
department
SECURITY
EMPLOYEES
Logistic
department
WAREHOUSE
STAFFS
retail shop
SHOP KEEPERS

their professional career. However, the organisation is associated with motivating attracting
and providing the best care for their employees. In addition to that for improving the
performance of the employees, they constantly provide training to their employees who are
not only for organisational objectives but also for their career growth (Nuottila and Kujala,
2016. Finally the organisation has their sales objective which is to develop or improve their
cells for gaining more profit from it.
Interrelationship between the organizational objectives and functions- The
organisational leaders are developing the corporate objectives for focusing on a specific area
of development. By developing aim for the organisation, the strategic planning for the
organisational future become easy and focused. However, the business objectives of Marks
and Spencer has broadly evaluated in the section. It can be said that for achieving the
objective of the organisation the organisation has to function accordingly. The organisation
Marks and Spencer is associated with different functions. For instance, the organisation has
to collect the products from the suppliers and delivered the products to the retail shops of
various locations. Collecting the products and delivering it to the shop is part of the different
operations operated by Marks and Spencer (Nuottila and Kujala, 2016). However, the main
objective of this function is to provide the customers with their best quality of products which
is part of the main organisational objective of this organisation.
However, it can be said that this biggest retail organisation always check the quality of the
food and clothing products they are selling to their customers. For that this organisation has a
business analyst, developer and tester who has the main responsibility is to check the
products fail by Marks and Spencer to their shops. However, these functions of these
employees are also associated with the main objective of the organisation to provide the
customers with the superior quality of products. With this superior quality of products the
organisation wants to become the leader of the Retail Industry in the United Kingdom
(Zokaei et al. 2016).
LO3 Using examples to demonstrate negative and positive influence over
business operations
P4 PESTEL analysis of Marks & Spencer
The Marks and Spencer is a retail chain that provides essential services regarding the food
market over the global sectors. The marketing and performances if the Marks and Spencer are
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mostly depended on their marketing strategies and identification of factors that influences
their operations and marketing activities. The factors mostly the external factors that are
mostly enhancing the company's marketing operations and revenue generations. Thus a
PESTEL analysis is required for the developments of the company’s marketing operations
and strategies for financial operations.
 Political factors
The political factors of the UK includes several aspects that needs to be followed by the
companies in order to maintain suitable marketing operations in the market. In this context it
is to be added that the UK governments had provided several regulations regarding the Health
and Safety British Standards (Thompson and McLarney, 2017). These standards includes
identifications of sudden hazards, risk assessments and controls. This is to be followed by
each of the companies that are operating in the British market or they will be fined and may
face several charges by the governments.
This factors forces the company to maintain these standards and thus the organisational
structures of the company needs to be modified and developed according to the needs of the
standards and regulations of the government.
 Economic factors
Currently the economic section of the UK market regarding the retail sales are downwards.
As the customers do not have sufficient amount money to afford clothing’s and foods and
thus the marketing operations of the company have been hit with certain loss during the year.
As a result of the economic fall down of the customers the company had to close several
number of their stores across the UK market (Cipd.co.uk. 2018). The employees cut off were
2% on their total 70000 employees.
 Social factors
Recently the social factors have changed for the company as the market trends and demands
are quite different that they were used to be. The market trends and preferences mainly
provides online shopping and introductions of fresh items regarding the clothing aspects. The
social contributions are also required to be accomplished by the companies in order to gain
the modern market preferences (Thompson and McLarney, 2017).
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As a result the company developed several aspects and factors in their organisational
structures in order to meet the marketing and social obligations of the market. They
developed new services regarding online marketing and started competitions with ASDA.
Figure 3: Pestle of M&S
(Source: Thompson and McLarney, 2017)
 Technological factors
The technological factors are the most important aspects of the retail marketing operations.
The companies operating in the UK market must develop their brand image and customer
selections with the appropriate usage of the technologies during the year. In this context it is
to be added that the UK market requires advanced technological applications in order to
ensure goods services quality and time managements.
As the applications are quit essential the company has also developed their marketing and
organisational practices with the applications with the advanced technologies. Several brands
and fashion item s are also provided by the M&S during the year.
 Legal factors
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The legal factors are includes the changed legislation of UK that has been evident after the
Brexit. These included the changes in the exchange rates, in the policies and legislation
regarding the export or import of products, human resource transfer and the like (Cipd.co.uk
2018). After Brexit, the organisation had to change its organisational policies in order to
avoid the negative impact of Brexit. However, there are yet changes to come within the
legislation and legal bodies of UK which is going to impact the organisational operations.
Hence the applications of the legal factors required several modifications and developments
in the organisational structures in order to maintain the legal changes and factors if the UK
market.
 Environmental factors
The environmental aspects are considered as a big factor by the companies for suitable
environmental management and product production procedures are to be adapt in order to
protect the environmental assets and other aspects.
Thus the M&S has developed practices of managing waste management product quality,
productions safeties in order to keep the environment clean and harmless.
LO4 Determining internal weaknesses and strengths and explaining
interrelationship with macro factors
P5 Internal and external analysis of the Mark and Spenser UK
In order to identify the strengths and weaknesses of Mark and Spenser, the internal and the
external analysis of the organization is done through the employment of the analytical tool
that is SWOT analysis which includes the following:
Internal analysis
Strengths
 High brand recognition in the retail
industry of UK (Thompson and
McLarney, 2017)
 High level of quality and wider
range ranges of products that has
created a perception of “value for
Weaknesses
 Strong competition within the retail
industry of UK
 The organization is highly reliable in
the UK retail market that makes it
vulnerable to risk like fluctuation of
the domestic market
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