Business Environment Analysis of Marks and Spencer (M&S) Report

This report provides a comprehensive analysis of the business environment of Marks and Spencer (M&S), a major retail sector organization in the UK. The report begins with an introduction to business environmental factors and their impact on organizational performance, discussing both micro and macro factors. It then delves into the organizational structure, differentiating between private, public, and voluntary organizations, and examines M&S's size, scope, and legal structure. The report explores the relationship between various functional departments within M&S, including finance, marketing, production, and human resources, highlighting their roles in achieving organizational objectives. Furthermore, it analyzes the positive and negative impacts of the macro environment on M&S, utilizing tools such as SWOT and PESTLE analysis to evaluate the company's strengths, weaknesses, opportunities, and threats, as well as the political, economic, social, technological, legal, and environmental factors affecting its operations. The report concludes by emphasizing the significance of identifying these factors for strategic decision-making, providing a detailed understanding of M&S's business environment.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
P.1 Private, public and voluntary organisation and legal structure ............................................1
P.2 Size and scope of M&S and welcome trust .........................................................................2
P.3 Relationship between various function with M&S for achieving there organisation
objective .....................................................................................................................................3
Task 2 ..............................................................................................................................................4
P.4 Positive and negative impact of macro environment............................................................4
PART 2............................................................................................................................................6
P5) (b) Internal and external environmental factors to analyse strength and weakness of M&S
.....................................................................................................................................................6
P6) (c) Significance of identifying strength and weakness for decision making......................10
CONCLUSION..............................................................................................................................11
REFERENCE.................................................................................................................................13

INDEX OF TABLES
Table 1: SWOT analysis of M&S....................................................................................................6

ILLUSTRATION INDEX
Illustration 1: Illustration 1: PESTLE analysis................................................................................9

INTRODUCTION
Business environmental factors as micro and macro impact on organisation's performance
both positively and negatively. It impacts on productivity, profitability and competitiveness of
the entity related with further operations. The present report is based on understanding impact of
environmental factors on business performance of Marks and Spencer in terms of SWOT and
PESTLE analysis. It is retail sector organisation of UK provide groceries, food items and home
products to a million people of the world. In this regard, different sectors purposes, scope and
operations are to be discussed as of public, private and voluntary. Moreover, relationship of
different functional departments of the entity will be introduced involving finance, marketing,
production and so on. Along with this, significance of SWOT and PESTLE analysis can be
identified for decision making regarding further implement for the organisation. However,
usefulness of business environmental factors for M&S can be understood in this assignment.
PART 1
P.1 Private, public and voluntary organisation and legal structure
Private organisation :- Private organisation is based on the profit organisation. In private
organisation there are is a part of the country economic system. In each private organisation there
should be focus on the profit or can say the that organisation is focus on profit only. (Beckmann,
M., Hielscher, S. and Pies, I., 2014). The legal structure of private organisation following things
such as :-
 legal documents
 When the above document is complete is send to the main head or can say registrars of
the company and they will issue as a business certificate which is important to private
sector.
Types of business :-
 Partnership :- In such kind of business there are two or more than two people. Who
share same profit and loss of the company.
 Sole proprietorship :- In this kind of business that run only by a single person.
Purpose of the public limited company :- The main purpose of the public limited company is to
earn profit in the organisation and improve goodwill in the market.
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As per the private organisation M&S is much important for the nation to help us for business
environment and success of the organisation. There is all about the private organisation in
business environment.
Public organisation :- In public organisation there are it is based on government
organisation. In this condition government will take all the decision related to the business.
Public organisation there will be effect business environment in macro factor because in macro
factor there will all the external environment of the company. (Beckmann, M., Hielscher, S. and
Pies, I., 2014). Public organisation will use more impact on business environment. All the things
will be impact on macro environmental factor. The legal structure of the public organisation
will be full depend on the government rules and regulation in the business environment.
Example:- In public organisation is the best example in NHS (national health services ) is the
best example. This organisation is use full to the society and improve the society as well. This
will help for poor people so as to improve the performance in the organisation.
Voluntary organisation :- In voluntary the organisation all the NGOs , charity is
inculcated to this field etc. will be in the voluntary organisation. The main purpose of this
organisation is to help for free education for poor people or can say old villages (Muff, K.,
2012.). In this voluntary organisation there are help to old age people and aware about the
education of the business environment. Such kind of organisation is not pay any kind of tax
because they use for social benefit. This voluntary organisation there are useful to the
environment in good manner. The legal structure of voluntary organisation is :
 Non profit organisation
 charity
 Unincorporated organisation
Example :- voluntary organisation the best example is narega it is combination of both private
and government sector. Narega is government plus private both work together and achieve
profit.
There are all about of the voluntary organisation and legal values of these organisations.
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P.2 Size and scope of M&S and welcome trust
M&S is a private limited organisation which deal with the retail sector in united kingdom
nowadays.
Sizes of M&S : The size of Marks and Spencer is depended upon the employees'
performance in the organisation. In this case inculcated the total 84393 employees today's there
in organisation and all the operating incomes in M&S is 690.6 million and total profit is 115.7
in 2017 this is the highest in all the retail sector. (Muff, K., 2012.). In such organisation there are
use the highest value in retail sector. They have to heights now a new product theses store also
they deal in hospitality and home store now a day. They have to the highest now of products in
there store and manage perfectly in such kind of work. They main work is online selling and
they focus on the digital marketing because now digital marketing is more useful in each and
every corporation will be total depend work(Saaty, T. L. and Vargas, L. G., 2013). Product line
make M&S is more useful nowadays in United Kingdom with more employment generating
organisation.
Scope of M&S : M&S will be the best corporation nowadays . Marks and Spencer can
help the cover the all the economic problems in United Kingdom(Saaty, T. L. and Vargas, L. G.,
2013). In this organisation to generate new employment opportunities for better future and more
income and give reward at a time of best work.
In public organisation :- It is a biggest public organisation in United Kingdom . As it is a
partnership organisation involvement of ten partitive organisation which working in charity and
public organisation.
Size :- They are the globe charitable funding organisation and they deal with the society
development and help to the business environment. The size of the business is very big in
gobble.
Scope :- The main scope to this is they deal in public health of people. As they invite new
vacancy any development of society in health sector(Slater, J. and Strange, R. eds., 2013.). They
main aim is to remove any dispute in any business environment. They main aim is to better and
health life of the people. This is work on the best business environment and remove any bad
quality. This main scope is to help in backward area in the nation and help poor people those are
not afforded to this kind of facility.
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P.3 Relationship between various function with M&S for achieving there organisation objective
In each of the corporate world there will be focus on the each organisation to achieve a better
result and cover all the mission to a given time period. As the marks and Spencer is classified
into different department for there operational work. As the need to bring a set of proper
hierarchy in step by step to final mission(Ehret, M., Kashyap, V. and Wirtz, J., 2013). As the
structure will help of this organisation to achieve best result in the organisation. M&S will help
different help to achieve some objective with different department :-
 Finance :- For achieving the organisational objective the finance department play a major
role in this filed. As the discussion regarding finance or the other cost saving to allot the
budgeting for future period or can once in a year. To maintain the proper record of
account other finance related activity in the organisation. For every function of finance is
the most important part in each and every organisation(Ehret, M., Kashyap, V. and Wirtz,
J., 2013). In finance play a major role in each activity nowadays to control of expense
and remove error etc.
 Human resources :- Human resources is one of the most important part in the
organisation because all the internal factor of the business in control by in the
organisation. Human resources' department is helpful in the organisation and to achieve
some mission and objective in the organisation. Human resources' department control the
man power in the organisation(Goss, D., 2015). In case conflict between the employees
in organisation they can solve it in positive manner.
 Marketing :- Marketing is very important part in the organisation because increaser the
growth in the organisation. For promote and attract to the customer in different market
with different strategies of marketing. Marks and Spencer deal with the finance
department because finance department is allotted budget for the purpose of marketing.
There focus on the relationship with the customer and use more and more social media
marketing. They change to trends and bring innovative products in future market.
 Production :- Production is final and most important part in the organisation. Have
responsibility to easily get the product to the customer. With a better production team
they can work according to the demand and supply of the product in the market. In this
department will be full focus on the product if product is good customer will never
complain it.
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Therefore, marks and Spencer organisation all the factor will be necessary at the time of
production. Human resources' department choose the best employees so they will guide the
whole process and work will be done best part. Finance department will be focus on there
expense. Marketing department will be done to go more and more marketing to high sales.
Task 2
P.4 Positive and negative impact of macro environment
In the organisation there is some macro factor will be there which is influence the
business environment and operation of the business(Goss, D., 2015). in this condition porter
five force model the macro factor can identify the negative as well as positive impact on there
business.
EXAMPLE :- In macro factor may affect the production at the time of purchaser of row
material in the different country that counters legal factor may be affected. In macro factor may
affect technology or some legal factor as well. At the time of the business there will be focus on
the two different countries legal factor may affect the business activity.
Primary activity :- Quality of the product and available to the customer.
 Inbound logistic :- It is a process of delivering good and services in the organisation and
with help to better transportation top meet the customer requirement.
 Outbound logistic :- It is process in which good and serves will be carried out for the
customer expectation on time by delivery products.
 Operations :- In marks and Spencer organisation have the biggest reach organisation to a
customer because better operation in the organisation.
 Marketing and sales :- In every organisation there are the best part is marketing and sales
because all the work of production will be depend on the marketing. Promotion is the part
of marketing and advertisement will give better revenue for the business. Marketing will
be depend on best part in the each and every organisation incense the market share.
 Services :- For the intersecting sale it will impact on the organisation. For improving the
better services marks and Spencer will focus on to set a team to provide a better services.
Support activity :- This is the internal factor of the organisation to support the important of the
organisation.
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 Firms infrastructure :- In the best part of all the organisation is infrastructure it will help
to organisation business.
 Human resources' management :- Human resources is one of the best part of organisation
to improve the efficiency level in the organization. Human resource department will be
focus on the operation in effective manner.
 Procurement :- Availability of good from supplier is more effectively to the organisation.
Also, customer need can easily fulfilled by the organisation.
 Technology :- Technology is very important in each and every organisation. So all the
change in the work according to the change the technology in the organisation(Thomas,
D. S., 2015.). The adaptation of technology will be impact on that cost. Save the
production time.
In both the model it will be some positive and some negative aspects as well.
 Positive aspect :- Change the technology will be the positive impact on it because all the
work will be done by the fast manner or can say work doing fast in previous manner. All
the things impact on the production and supply of goods and services in the organisation
and with less costly matter. It will be save the time as well as cost of the organisation to
remove errors.
 Negative aspect :- Impact on production and suppliers will depend on there performance
to there work. Customer attraction will be done with in this organisation(Thomas, D. S.,
2015.). This is the highest impact on there production team and to losses there
production time as well. So some time it will be some positive or negative both are
inculcated as much.
PART 2
P5) (b) Internal and external environmental factors to analyse strength and weakness of M&S
Business environmental factors are two kinds as; internal and external in which internal
are controllable while external remain uncontrollable for decision making (Kasim and Dzakiria,
2016). However, SWOT and PESTLE analysis for Marks and Spencer can be identified as
follows:
SWOT analysis:
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It stands for analysing strength, weakness, opportunities and threats of the organisation
by which further decisions are made to increase its efficiency (Bohari, Hin and Fuad, 2017).
However, SWOT analysis for M&S can be identified as:
Table 1: SWOT analysis of M&S
Strength:
 Strong financial position.
 M&S has good position in the list of
retail sector organisations of UK.
 Effective customers' satisfaction.
Weakness:
 Poor quality services of groceries
provided by M&S.
 Workers' turnover.
Opportunities:
 To adopt new technologies for
improving quality of goods and
services of M&S.
 To conduct market survey for decision
making regarding business operations.
 To establish and maintain good
relations with customers.
Threats:
 Difficult to sustain in competitive
market.
 Changes in people's attitude and
interests impacts on demand for goods
and services of M&S adversely.
PESTLE analysis:
Macro environmental factors are uncontrollable but impact on business operations of
M&S both positively and negatively. For analysing this environment on business activities,
below mentioned factors are analysed as:
Political factors: It includes factors as political stability, government policies regarding
business operations and so on (Taghadosi and Soleimani, 2015). However, changes in these
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factors impact on business and financial performance of M&S. For instance; decreasing in
foreign trade rate influences business operations positively while increasing affect negatively.
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Illustration 1: Illustration 1: PESTLE analysis
(Source: Factors of PESTLE analysis, 2016).
 Economic factors: For analysing these factors, income tax rate and interest rate which
changes impact on monetary and business performance of M&S (Eva and et.al., 2014).
For example; increasing in interest rates repulses for taking loan similarly affects
financial position of entity adversely. Social factors: It is challenging maintaining customers' interest towards groceries, food
items of M&S for longer time. In accordance to this, changes in their attitude, perception
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and interest impacts on demand for goods and services. It affects productivity and
profitability of the entity as well marketability in the future time. Technological environmental factors: It is determined that time to time technologies get
changes affects business performance of M&S (Aithal, 2016). However, adopting new
technologies may be risky for organisation in respect of attracting customers towards its
goods and services. Legal factors: Changes in rules and regulations regarding business operations by
government impacts on business activities of M&S (Bohari, Hin and Fuad, 2017). It is
uncontrollable factor which is to follow on by an entity during its operations as affects
positively and negatively.
 Environmental factors: These are uncontrollable factors which affect business
operations their management (Xingang, Jiaoli and Bei, 2013). For instance; occurrence of
natural calamities like flood, draught etc affects business operations of M&S.
P6) (c) Significance of identifying strength and weakness for decision making
It is essential for analysing strength and weakness of Marks and Spencer using SWOT
and PESTLE analysis. Therefore, variety of ideas are generated related to increasing strength and
reducing weakness influences business performance of the entity. In addition to this, it is
effective for managing entire business activities and improving its efficiency at maximum level.
However, decisions are made regarding creating innovations for business operations and making
place in market to face competition effectively (Zalengera and et.al., 2014). Therefore, effective
balance can be created between demand and supply influences production and distribution
system. Moreover, it is beneficial for sustaining its market position for longer time period.
Besides this, customers loyalty towards groceries and home products can be increased impact on
productivity and profitability of the company. However, analysing strength and weakness are
effective for decision making in relation to improve business performance and competitive
strength at maximum level.
Therefore, it is helpful for identifying positive and negative aspects are determined for
decision making to increase effectiveness of M&S. In addition to this, it is beneficial for
managing entire business activities as well improving its performance at higher level. Along with
this, it is suitable for appropriate decision making related to management of entire business
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systems. In accordance to this, ideas are generated regarding adopting new technologies for
improving quality services and attracting customers on large scale (Bohari, Hin and Fuad, 2017).
Therefore, strength and weakness are effective to identify for grabbing opportunities and
reducing threats that may occur during business operations within M&S. Apart from this, it is
significant for managing business operations and meeting customers' expectations affect business
activities of the entity. Hence, knowledge of recent market trend and making in competitive
market in the list of retail industry of UK get enhanced. Besides this, it is effective for
appropriate decisions regarding business operations and improving its services at higher level.
However, it is analysed that strength and weakness of M&S is essential to be identified for
proper management and appropriate decision making process for further implementations.
CONCLUSION
It is concluded that analysing business environmental factors is essential for decision
making regarding further implementation for Marks and Spencer. Both internal and external
environmental factors are analysed, in which internal are controllable as; performance
management of employees, managing resources and fund etc. Similarly, external environmental
factors like; political, socio-economic, legal and technological etc. In this regard, company's
SWOT and PESTLE analysis has been identified as of its strength and weakness helpful for
managing entire business operations. Moreover, functions of different departments of the entity
are analysed to achieve its objectives and effectiveness increasingly. However, different ideas are
generated for improving business performance and effectiveness of the company on larger scale.
Along with this, importance of environmental factors' analysis to recognise strength and
weakness of company on which further decisions are made determined. However, business
environment and its concept for decisions on business activities for M&S has been understood in
this report.
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