Business and Business Environment Analysis Report for Marks & Spencer

This report provides a comprehensive analysis of the business environment, focusing on Marks & Spencer (M&S). It begins with an introduction to the concept of business, defining different organizational types (public, private, and voluntary) and their legal structures, using examples like the BBC, M&S, and Barnardo's. The report then explores the size and scope of these organizations. It examines the relationships between various organizational functions, such as marketing and finance, and how these functions interrelate with the company's objectives and structure. The core of the report involves a PESTLE analysis, evaluating the positive and negative impacts of political, economic, social, technological, legal, and environmental factors on business operations. A SWOT analysis is also conducted to identify M&S's strengths, weaknesses, opportunities, and threats, and how these internal factors connect with external macro factors. The report concludes with a summary of findings and references.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of organisation along with their purpose and legal structure........................1
P2 Size and scope of different types of organisation..................................................................3
TASK 2............................................................................................................................................4
P3 Relationship between different organisational functions and their inter-relation with firms
objectives and structure...............................................................................................................4
TASK 3............................................................................................................................................4
P4 Positive and negative impacts of macro environment factors on business operations..........4
TASK 4............................................................................................................................................7
P5 SWOT analysis that help to identify strength and weakness.................................................7
P6 Strengths and weaknesses inter-connected with external macro factors...............................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
The term business is defined as commercial activity through which an individual deals in
the market through sell and purchase different products and services in the market. An
association or economic entity through which there is exchange between the goods and services
mutually between buyer and seller in order to earn profits from their investment. Their are
various types of business are included the different types of organisation such as public, private
and voluntary organisation. Business environment is the combination of different factors which
involves employees, supplier, buyer and customer expectation (Pulver, 2012). This factors
impact on the function of organisation directly and in-directly way. The present assignment is
written in context of Marks & Spencer which is a multinational retailer organisation. They offer
clothing, home and food products to its customers. This task covers the size, scope and legal
structures of different organisation. Along with these SWOT and PESTLE analysis are covered
in this report. So that current scenario will be evaluated in appropriate manner.
TASK 1
P1 Different types of organisation along with their purpose and legal structure
Their are different types of organisation are present in industry which is public, private
and voluntary. In this task public firm is BBC, Private enterprise is Marks & Spencer and
voluntary organisation is Barnardo which is explained as below:
Public organisation- The public organisation are those which gather their funds and
security from the society by registering their organisation into stock exchange. They includes all
types of organisation that are publicly funded and controlled. In this task BBC chosen for public
sector which is the largest and oldest broadcasting of UK.
Purpose- BBC was established by royal charter and it is funded by government. The
major purpose of organisation is to provide training to individuals into television sector which
includes technology, journalism and training to them into journalism industry (Saleem, 2017).
Legal structure- The legal structure of organisation is as follow: Ancient and municipal borough- In ancient times many towns has granted self
governance by the crown perspective. This all are granted by self selling corporation
through which it is easy for them to protect the interest of individuals (Wheelen and et.
al., 2017).
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 Parliamentary boroughs- It is formed in the year 1265 through which they formulate
their goals for public organisation. For these they involves two different members from
which one belong to organisation and other represent the country.
 County boroughs- This was established in the year 1888 and it is designed for
administrative divisions that help to convert goals with in predetermine period. It helps
to separate the laws between urban and rural area.
Private organisation- Private organisation is defined as those companies which are
controlled by small number of shareholders or owners. They raise their funds from banks,
financial institution or venture capitalist. In context of M&S only their management and broad of
directors are responsible in order to generate and bear profits and loss for an organisation.
Purpose- The main purpose of M&S is to maintain quality of their products. Apart from
these to increase their market share by expanding their business into different areas. For this
they adopt essential changes in technology.
Legal structure- The legal structure of private organisation is as follow:
 Partnership- In partnership organisation there are more than two individuals are
responsible to operate a particular business. For these they bear similar risk that impacts
on organisation.
 Sole proprietorship- Usually in many private organisation there are large number of
organisation are managed by single entity who is totally authorise and responsible to
complete the activities.
 Company- Private companies are those which operate their business into different
sectors it includes more than two directors. It is mostly preferred by investor as in this it
is easy for them to buy and sell stake in organisation.
Voluntary- The organisation which considers its activities in order to welfare the society.
Barnardo's is well known British charity organisation which is majorly concerned about the care
of children. Its headquarter is situated in Barkingside of London. In present scenario there are
more than 15 organisation are working under Barnardo that helps children's to improve their
living standard.
Purpose- The main intention of Barnardo is to treat all the children's of among British
equally. Moreover they implement different policy through which they helps children's to get
education and employment.
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Legal structure- Of voluntarily organisation is as follow:
 Trustee structure- This structure helps an organisation to gain funds through charity, CSR
activities etc. which govern that donors and trustee are crucial part for organisation which
helps them to attain their goals.
 Association- It is the main structure that is followed by most of the organisation. It
determines that in these different groups of people work together to complete the project
within minimum time period.
P2 Size and scope of different types of organisation
Every organisation is different from others because each of them has its different vision
and mission:
Marks and Spencer- M&S is a private organisation which operates their business in
overall globe. It is luxury brand of UK which offer food, home and clothing products to
customers.
Size and scope- Organisation is well known multinational brand among overall world
which determines that it is giant in size due to which it is easy for them to satisfy needs of
customers. Along with these there are more than 80,000 employees are working together with the
organisation. Further they are expanding the number of stores in developing countries which
analysis scope of retail industry.
BBC- The BBC represents public organisation that is the largest and oldest broadcasting
organisation they gather their funds from government which determines they have opportunity in
order to attain goals with in minimum time period. Apart from these it promote new talent of the
organisation through offering graduation courses in Journalism.
Size and scope- The British Broadcasting Corporation is operating their business at
global level. It is one of the largest broadcast organisation in which 21,000 employees are
working together to provide telecast service in the world. This includes different services such as
Television, online news and radio which helps to deliver necessary and relevant information to
individuals.
Barnardo's- It is known as one of the oldest organisation that is operating their activities
for the welfare of children which determines that it came under voluntarily organisation. In the
year 1870 a school was opened that helps children to gain education who are orphaned.
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Size and scope- Barnardo' is the largest organisation which is operating voluntary
organisation in UK, Ireland, Australia and New Zealand which signify that organisation is
increasing their size constantly. Their are more than 5000 employees are working for Barnardo's
to complete their essential activities. Along with these large number of volunteers help them on
short term bases to complete their goals specifically in short term period.
TASK 2
P3 Relationship between different organisational functions and their inter-relation with firms
objectives and structure
It is essential for an organisation to complete their goals with inter-relating with different
function that helps to accomplish organisational goals easily.
Marketing and finance department- These both are functional departments of an
organisation that are dominant in nature which determines that they help an organisation to
achieve their goals easily. Like marketing department is responsible for organisation that helps to
accomplish their objectives through recruiting effective strategies for organisation. Similarly
finance department helps M&S to build attractive infrastructure for the organisation through
which they influences more customers.
Marketing and human resource department- marketing is the essential function for an
organisation which determines that it helps them to achieve their goals with in different factors.
It states that marketing department helps an organisation to promote and advertise their products
in market with effective approach. Similarly HR department helps an organisation to hire or
recruit effective employees that work as an asset for organisation by providing effective training
and development classes to employees.
As it is already discussed that all department plays vital role in organisation to complete
their goals. M&S is the multinational organisation that is operating their business at global level.
So they follow top to down approach in their organisation that helps them to manage their goals
within organisation while in different departments impact on organisational objective as they
have different roles and responsibilities that are essential for organisation. While departments are
the base that helps an organisational to formulate their structure (Palo and Tähtinen, 2011).
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TASK 3
P4 Positive and negative impacts of macro environment factors on business operations
To understand the macro environment of an organisation it is essential for organisation to
execute PESTLE so this task covers this method which is given below:
Political factor- The political factor includes all the policy, regulatory bodies etc. that is
formulated by the government of country. Organisation need to follow this factors to sustain
their business in a particular country. If they violate these roles then it is ruling government are
in position to stop their operations.
Positive impact
 In UK, government is stable and it helps an organisation by formulating flexible industry
policy that bring positive results for organisation. Political conditions helps an organisation in order to analysis the opportunities and threats
as they holds stable political.
Negative impact
 Organisation need to modify changes in policy that is decided by government in the
country.
 To implement regular changes in policy impacts that growth and expansion reduces the
growth of organisation.
Economical factor- Policy that is related with the interest, tax rate, fiscal policy are
included in economical factors which governs the economic stability of an organisation. Like
increase in inflation rate helps M&S to attain their goals within minimum time period by making
essential changes in their strategy (Orr, 2013).
Positive impact
 Developed economy helps organisation to earn more profits as their consumers has
more purchasing power. Through adopting economic factor business earn profits as they bring opportunity for
organisation.
Negative impact
 Rules and regulations are matched with organisation impacts on their economic policy
specifically on profits which is major concern for economy.
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 Developing countries charged more tax from foreign companies which decreases profit
of organisation.
Social factor- This factor includes different aspects through which organisation activities
are impacted on customers, norms and ethics of an organisation. In these different needs are
managed through different factors are managed by organisation. In society all consumers
perform their work with implementing different values, attitude and norms that helps to achieve
their goal.
Positive impact
 By following different norms of society it is easy for organisation to complete the
increase their sale rapidly (Kauerhof, 2017). Organisation and society both will be benefited if they both inter-relates their activities
with each other.
Negative impact
 If the management does not follow the rules and violate the society norms then they has
to loose their share in market. A single consumer impact negatively on the society due to which goodwill of
organisation will be decreases.
Technological factor- Advancement of technology impact on all departments of
organisation. Organisation execute modern tools which determines that it keep their products
updated in market. Through which it is easy for M&S to complete their goods in the
organisation. Along with this these it also helps an organisation to complete their goals with in
minimum time period through quick approach.
Positive impact Advancement and updated tools and techniques helps an organisation to keep their
products updated (Henrichs and et. al., 2010).
Negative impact Potentials and loyal customers of an organisation switches on other brand if they found
substitute products that fulfil their needs.
Environmental factor- It includes the factors such as climate, weather, surroundings etc. that is
renewable and developed by organisation in order to attain their goal with in minimum time
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period. In context of M&S different resources are managed by organisation in order to
accomplish goal for satisfying need of customers.
Positive impact In present scenario consumers are aware about environmental factors which determines
organisations has opportunities to sale their product in market.
Negative impact Cut throat competition in the industry creates barrier in an organisation to perform their
work ethically.
Legal factors- Employment laws, health and safety norms, environment act etc. are some
example of legal factor which determines that rules play an crucial role in organisation. For this
manager and officer of organisation analysis the legal formalities that helps M&S to perform
their work smoothly in organisation (Belwal and Belwal, 2010).
Positive impact Effective employees retained in organisation for longer period if organisation execute
employment right and law act for its work-force.
Negative impact
 It is difficult for an organisation to follow all the rules that are implemented by them in
order to achieve their goals.
PESTLE analysis of BBC
Political- BBC is operating their business in broadcasting service as self regulated
organisation. To control its activities UK government has decided authorise Royal charter in
process of application specifically to broadcast their content.
Positive impact- It is an public organisation so it is for management to predict political
environment easily.
Negative impact- After Brexit BBC face different difficulties and challenges because of change
in policy that reduces their productivity.
Economical factor- UK is developed country which determines that its financial
conditions are high in country such as their per-capita income, interest rate and inflation which
helps them to operate business smoothly.
Positive impact- Due to increase good economic conditions BBC earn sufficient profits that help
to expand their business in other countries.
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Negative impact- In present UK market conditions government has to pay high debts due to
Brexit that impacts on all business.
Socio-cultural- In recent years BBC has changed their structure from centralisation to
decentralisation that helps to match their performance with the society needs. It helps to maintain
their reputation with as honest broadcaster in UK.
Positive impact- The management of BBC is always predicated the society trends that helps
them to modify their strategy according to market condition.
Negative impact- BBC raised funds form public due to which investor got some rights to
participate in decision due to which there is decrease in productivity of organisation.
Technological factor- After the 1980 there is radical change in technology which also
impact on BBC operations. The term technology includes factors such software, internet, google
etc. which impacts on operations of an organisation.
Positive impact- BBC is operating their business in broadcast services which determines that it is
essential for them to update their technology as it provides competitive edge to them.
Negative impact- Technology change are very frequent it is difficult BBC to adopt them all as it
increases cost for organisation.
Environmental factor- The political, regulatory and technological changes are followed
by organisation in order to follow the accomplish their goals. BBC is public industry it
determines that they achieve their gaols through different programming funding.
Positive impact- BBC performs different CSR activities that helps them to increase their
goodwill in the organisation.
Negative impact- New and regular changes create difficulty for BBC because it is difficult to
follow them all because it reduce their profits.
Legal factor- Each country follow some rules, laws, legislation and policy that helps
them to achieve protect local organisation by enforcing multinational and large organisation to
complete their work ethically.
Positive impact- The legal policy help BBC to attain their goals within predetermine period
through following and implementing necessary rules.
Negative impact- It is difficult for BBC to execute and implement all laws that are formulated by
government because it directly impact on internal department of organisations.
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TASK 4
P5 SWOT analysis that help to identify strength and weakness
This table covers the strength, weaknesses, opportunities and threats for an organisation.
Strength
 Marks and Spencer has strong research
and development team that helps them
to keep update their products which
determines that their products are
developed according to market trend. Organisation is operating their business
from a century it determines that they
enhance the needs of customers due to
large experience.
Weaknesses
 In their organisation there are different
types of products are launched by them
which results that it increases the cost
of production as they has to invest
money on different goods to
manufacture them.
 Company is operating their business in
developed countries which result they
has loose share in China, India, Africa
and other developed countries.
Opportunities
 M&S has opportunities to invest in
their clothes segment as it is growing
industry that is booming with rapid
face. Organisation has a large experience to
sustain in market so it helps them to
enter in the market of developing
countries and tackle different situation
that helps to grow their business.
Threats
 The food market of UK is growing
rapidly due to which there is also
increase in competition. It results that
they has to manage different
organisational goals.
 M&S is a luxury brand and provide
quality goods to its customers which
results that customers are not able to
purchase their product specifically
clothes which creates threat for
organisation.
From the above discussed table it is easy for the M&S to increase their strength that helps them
to take first mover advantage in the industry. Along with these it also helps to overcome from
weakness through which they increases possibility to reduce their loss in organisation.
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SWOT analysis of public sector organisation
Strength
 Management of BBC formulate
effective decision that helps to thrive in
new market easily. BBC is invested time in and money in
the market that helps them to achieve
their increase the brand portfolio of
their business.
Weakness
 The present organisational structure of
BBC is only compatible for the present
market industry.
 BBC expanded their business at global
level due to which their financial
planning is impacted. It results that
their asset ratio is impacted highly.
Opportunities
 BBC need to explore those countries in
which there is low inflation rate that
helps them to enter in new market with
more stability. New environmental policies is
beneficial for all industry it helps them
to drive new platforms for their
business that help to increase their
share in the industry.
Threats
 Dynamic changes that take place in the
industry that include change in policy
of environment, customer preference
etc. are threats for BBC.
 Their is intense competition is present
in broadcasting industry of UK. It
results that their profits is start to
decrease in upcoming years.
P6 Strengths and weaknesses inter-connected with external macro factors
This task helps M&S to analysis that how their strength and weakness helps to modify
the changes in the market conditions of market. Some of this points is explained below:
Political factor- Organisation achieve their goals through monitoring different policies
that are developed by government in order to retain in markets. For this it is easy for organisation
to develop E-commerce infrastructure as they has long experience to keep their products in
market which determines company develops effective social strategy for their business (Azma
and Mostafapour, 2012).
Economical factor- Poor financial performance of an country creates hindrances in the
operations of M&S because it creates problems in organisation. Like they decreases revenues for
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for firms to complete their goals as company has diversified portfolio so organisation is not able
to manage and invest their funds within singular place.
Technological factor- For each and every organisation it is essential to complete their
goals with in predetermine period. Like in context of M&S it is essential for them to manage
keep implement new technology this helps them to increase their strength. While in case if
organisation does not invest more in technology then they has to loose their market share
because competitors will take first mover advantage.
Social factor- Society is the major factor that impact on the business of an organisation.
Management of M&S recruit strong research team that helps to understand market in appropriate
manner. According to these it is easy for organisation to manage their goals through which
increases their awareness in order to achieve goals easily.
Environmental factor- Surrounding of the organisation impacts on the performance of
the organisation. In context of M&S they implement CSR activities that helps them to increase
their strength. Along with it helps organisation to decrease their weakness through implementing
effective strategy (Asif and et. al., 2011).
Legal factors- Laws, legislation, rules and policy of an organisation helps them to
generate effective results such as company build or implement effective strategy. For this strong
policy, needs and goals of an organisation helps to gain positive results rather. Example- human
are best asset which signify that employees plays an important role in organisation. So to retain
them for longer period M&S increases its strength by implementing strong employment policy.
CONCLUSION
From the above report it is concluded that business environment is the major factor that
impacts on the performance of the organisation. Each and every organisation has different
purpose that is depended on organisational structures, scope and size. Management of each
organisation decide their goals based on the environment that impacts on their performance. To
analysis the internal and external environment of an organisation PESTLE and SWOT is
implemented through which it is easy for organisation to formulate strategy that helps to achieve
their goals in specified period.
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REFERENCES
Books and Journals
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Management & Business Excellence. 22(7). pp.773-786.
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Belwal, R. and Belwal, S., 2010. Economic growth and tourism in the post oil Omani economy:
A strategic analysis. Journal of Tourism Challenges and Trends. 3(1). pp.165-187.
Henrichs, T., and et. al., 2010. Scenario development and analysis for forward-looking
ecosystem assessments. Ecosystems and human well-being: A manual for assessment
practitioners, pp.151-219.
Kauerhof, A., 2017. Strategies for Autonomous, Connected and Smart Mobility in the Automotive
Industry. A Comparative Analysis of BMW Group and Tesla Motors Inc. GRIN
Publishing.
Orr, B., 2013. Conducting a SWOT Analysis for Program Improvement. Online Submission.
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388.
Pulver, S., 2012. Business and the Environment.
Saleem, M.A., 2017. The impact of socio-economic factors on small business success.
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Online
Business environment and factors . 2018. [Online]. Availabe through:
<https://ccbjournal.com/articles/uk-business-environment-positive-and-forward-looking>
Online
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