Regent College HND Business Environment Analysis of Marks and Spencer

This report provides a comprehensive analysis of the business environment, specifically focusing on Marks and Spencer (M&S). It begins with an introduction to the business environment and its impact on organizations. The report then examines the interrelationship between various organizational functions, such as human resources, finance, and marketing, within M&S, highlighting how these departments work together to achieve business objectives. The positive and negative impacts of the macro environment, including political, economic, social, technological, environmental, and legal factors (PESTEL analysis), on M&S's operations are thoroughly discussed. Furthermore, the report includes an internal and external analysis of M&S using SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Finally, the report explores the interrelation between the company's strengths and weaknesses and the external macro factors, providing a holistic view of M&S's position in the market and the challenges and opportunities it faces.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
COVERED IN PPT.....................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship between different organisational functions to achieve objectives....................1
TASK 3 ...........................................................................................................................................3
P4 Positive and negative impact of Macro environment on business operations.......................3
TASK 4............................................................................................................................................5
P5 Internal and External analysis of Marks and Spencer............................................................5
P6 Interrelation of Strength and weakness with external Macro factors....................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment is characterised as place where business operations that are
executed by organisations to timely attain goals and objectives. Companies have internal and
external factors which directly and indirectly impacts on system functionality. Stakeholders such
as shareholders, suppliers, creditors, employees and customers are various elements which
influence on activities; thereby required to be managed by administration adequately. Present
report is based on Marks and Spencer is popular retail firm which provides quality clothes, food
items and various home products in United Kingdom. This assignment specifies information
about different types and purpose of organisation that exist in market and vary with each other in
respect to size, scope, structure and objective (Auzair, 2011). Along this, company functions
have interconnection with each other which helps management to acknowledge positive and
negative impact of macro environment on operations. Thus, internal and external analysis
benefits superior to make interrelation of strength and weakness with external macro factors.
TASK 1
COVERED IN PPT
TASK 2
P3 Relationship between different organisational functions to achieve objectives
Human resource, finance, operation, marketing, sales, IT, research and development are
various departments which are formulated by executive to accomplish goals and objectives. It is
essential that organisation have adequate resources that is funds, material and manpower which
help administration to execute business operations effectively. Along this, management
formulate strategies and implement appropriate tools and techniques in system to provide
appropriate items and services in market in according to needs and wants of people. Marks and
Spencer which is popular retail store that provide variety of food items, clothes and other
products (Burns and Winter, 2011).
Human resource department: Employer responsibility is to have adequate workforce
which help them to organise business activities in according to objectives. Recruitment,
selection, training, compensation and development are various practices that are executed by
management. This help M&S to have skilled and competent members to carry out operations in
effective manner. Administration provide duties and tasks to staff in respect to their skills and
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abilities. Along this, they even divide members in different units which benefit company to attain
goals and enhance market position.
Production department: This unit duty is to manufacture adequate items and services in
according to needs and wants of people. HR of M&S employ candidates in operation unit and
execute sessions and seminars to improve their skills and knowledge. Along this, R&D team
conduct market research which helps them to have accurate and complete information about taste
and preference of people. Thus, management implement latest tools and techniques in system to
provide quality products and quick services to clients (Commander and Svejnar, 2011).
Finance department: This unit require to have skilled members which have capability to
utilise funds adequately. It is necessary that financial statement that is balance sheet and profit
and loss is formulated by superiors to acknowledge complete information about expenses and
income.
Marketing department: Organisation require to have large customer base which help
management to generate adequate profit from business. Marketing plan is formulated which
comprise information about overview of M&S, mission, vision, objective and marketing mix.
Product, price, place, promotion, people, process and physical evidence are various components
that are designed by marketing team to attract people by informing them about items and
services. Sales promotion, online advertising, personal selling, publicity and e-marketing are
various tools used by management to establish good position in market and easily position firm
higher than rival brands (Cronan and et. al., 2011).
Sales department: This unit comprises responsibilities to interact with customers and
inform them about products. Management of M&S take care that adequate sales people are
present in firm. Along this, they even take care that members have skills to influence people and
persuade them to purchase things in respect to their needs and wants. Marketing team uses
promotional techniques to attract people by informing them about transformations made by
seniors in products.
Research and development department: This segment require to have complete
information about needs and wants of people. Market research and survey is appropriate
technique used by members of M&S to acknowledge taste and preference of consumers. Along
this, management even require to anticipate competitors offerings which help operation members
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to design system and implement adequate technology to provide items in respect to demands of
people (Dahan and et.al., 2010).
IT department: This unit determine that management require to has appropriate tools and
techniques in system which help them to deliver adequate things in market in according to needs
and wants of people. M&S provide quality items and quick services to customers which is due to
latest technologies that are used by operation members. Along this, marketing team also help
company to enhance market position and image by using online advertising and e-marketing.
These tools benefit management to attract people and easily compete with competitors.
Therefore, it can be concluded that M&S has good image and goodwill in market which
is due to quality items and services that are delivered by firm in market. Along this, management
is able to conduct business operations in respect to market conditions which define that
alterations in system and technologies. This benefit company deliver creative and innovative
products in respect to demands of people.
TASK 3
P4 Positive and negative impact of Macro environment on business operations
Organisation exist in market which is dynamic and keeps on changing with
time. It is essential that management design system and implement adequate tools
and techniques which benefit firm provide quality things to people in according to
their needs and wants. Government, suppliers, customers and competitors are
various macro components that are present in external market. These are factors
which are considered by administration of M&S to conduct business operations
effectively. PESTEL analysis is appropriate technique that is used by company to
anticipate positive and negative influence on system functionality ( Fernando, 2011).
Political factor: Government formulate rules and regulations to control and
manage system functionality of firms. In M&S, administration frame strategies and
policies in respect to legislations of UK government.
 Positive effects: Executive reduce expenses of sourcing as UK has free trade
policies. This helps M&S to deliver things in different countries to increase
market reach and customer base.
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 Negative effects: Taxation policies are formulated by regulatory bodies to
encourage or discourage import and export business. This impacts on M&S to
set up branches in nations which have less fluctuations in tax ( Hamilton and
Webster, 2015).
Economic factor: Exchange, interest rate and inflation are various tactics
which influence business operations and amount of capital administration of M&S
have.
 Positive effects: UK has inflation which define that people have adequate
money to purchase things in according to their needs and wants.
 Negative effects: Increase in exchange and interest rate effect on relations
between two nations and funds availability of M&S ( López-Gamero, Molina-
Azorín and Claver-Cortés, 2011).
Social factor: M&S make changes in items and services in respect to needs
and wants of people. If this is not done, manager will not be able to compete with
rival firms.
 Positive effects: M&S provide quality things to consumers which help owner
to establish strong brand equity.
 Negative effects: M&S has branches in different nations which help company
to have large customer base and increase market reach. But, management
require to have skilled people which help firm to compete with rivals
(Mahmood and Hanafi, 2013).
Technological factor: Management of M&S require to use appropriate tools
and techniques in system which help them deliver quality items and quick services
to customers.
 Positive effects: M&S is able to position firm higher than rival brands and
attract people by using company websites.
 Negative effects: Sessions and seminars organised by administration to make
employees capable to work with latest technologies.
Environmental factor: This element defines that management of M&S uses
adequate tools and techniques which helps superior utilise resources efficiently
(Agarwal, Grassl and Pahl, 2012).
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 Positive effects: Internet helps M&S to have large customers number and
market reach. This benefits company to make system function effectively.
 Negative effects: Training and development programs require to be executed
by management of M&S to enhance skills and abilities of members which is
time consuming and costly.
Legal factor: This component includes various legislations such as equality
act, discrimination act and employment and wages act which define that human
resource of M&S treat members fairly and give them equal treatment. Along this,
management even provide compensation to staff in respect to their performance and
targets accomplished by them (Aterido, Hallward-Driemeier and Pagés, 2011).
 Positive effects: This benefits M&S to make system function effectively and
legal manner which helps firm retain skilled and competent people for longer
period.
 Negative effects: Management policies required to be altered and changed
timely which impacts on company's market image.
TASK 4
P5 Internal and External analysis of Marks and Spencer
Organisation require to utilise funds, material and manpower efficiently. It is
essential that administration have complete information about market conditions and
system functionality. PESTEL and SWOT analysis is appropriate technique used by
management of M&S to acknowledge internal and external environment. This
benefit executive to accomplish objectives and goals ( Boons and Lüdeke-Freund, 2013).
SWOT analysis of Marks & Spencer: This technique helps administration to have
complete information about strengths of system to utilise market opportunities. Along this, they
even require to overcome weaknesses and prevent company from threats (SWOT Analysis of
Marks & Spencer, 2017).
Strengths Weaknesses
 M&S is popular firm in UK which
is leading clothing enterprise.
 Latest tools and techniques is
 Business environment is dynamic
which define that management require
to make changes in system and
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implemented in system which help
management to provide creative
and unique products to people.
 M&S have set up outlets in
international market which benefit
firm to have large customer base
and market reach.
 Thus, firm is able to enhance
productivity and profitability.
transform technologies.
 Training and development programs
need to be executed in M&S to
enhance skills and abilities of
members. This consumes large
amount of capital and time ( Chow
and et. al., 2011).
Opportunities Threats
 M&S management constructs
company website to attract people
from all over world.
 Firm has chance to expand
business and enter into new
segments to increase variety of
items.
 Open new outlets in China and
other nations.
 ALDI, TESCO, ASDA, Sainsbury and
Waitrose are competitors of M&S.
 Government policies and
legislations formulated in respect
to retain sector influence
functioning of M&S.
 Transform system and change
items that is provide trendy
clothes in outlets.
PESTLE Analysis of Marks & Spencer: This is another tactic which is used by
administration of M&S to acknowledge organisation reputation in market. It is
necessary that management frame policies and strategies in according to rules and
legislations of government. This help them to make system function in legal manner
and implement adequate tools and techniques in respect to market situations
(Gebauer, Paiola and Edvardsson, 2010).
FACTORS
Political  Government frame free trade agreement to encourage import and
export.
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 M&S has outlets in different nations which help
management to have large customer base and market
reach.
Economical  Interest rate, exchange rate and inflation are various elements
which impact on sales and profitability of M&S.
Social  Clothes, food items and food products are provided by M&S
which help management to fulfil needs and wants of
people.
 Latest technologies help firm to provide trendy things to
consumers in respect to their needs and wants.
Technological  In M&S administration transform system and implement
modern tools and techniques which help them to deliver
creative and innovative products to consumers.
Environmental  M&S uses latest tools and techniques in system which
help management to utilise resources efficiently. Internet
benefits company to make system function eco-friendly
and stop using paper which destroy environment.
Legal  In M&S, management provide policies to make system
function legally. Along this, they provide duties and
tasks to members on basis of their skills and abilities.
P6 Interrelation of Strength and weakness with external Macro factors
PESTEL and SWOT analysis are appropriate tactics that are conducted by
management to acknowledge market conditions. It is essential that administration
makes system function effectively to accomplish goals and objectives within
defined time. Government, suppliers, customers, competitors and company exist in
market which is dynamic and keeps on changing with time. M&S management have
complete information about strengths and weaknesses of system which help
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company to utilise market opportunities and protect from threats ( Halbert and Ingulli,
2011).
M&S has outlets established in different nations which define that executive
have large customer base and market reach. This helps enterprise to enhance
productivity and profitability. UK is nation which has highest economic growth and
inflation which define that people have adequate money to purchase things in
according to their needs and wants. Administration of M&S give compensation to
staff in respect to their performance and outcomes. This benefit company to retain
skilled and competent people for longer period. Along this quality products are
delivered in market which helps management to have large customer base and
satisfy people. M&S is able to construct strong brand equity by giving quality items
and clothes that are in current trends.
CONCLUSION
From the above report, it can be comprehended that business environment comprises two
elements which are internal and external. These factors directly or indirectly influence on
business activities. Market have different types and purposes of organisation which vary with
each other in respect to size, scope, structure and objective. HR, finance, production, marketing,
sales, IT and R&D department function effectively and also in interconnection which help
company to accomplish goals and objectives within defined time. Executive require to have
adequate funds, material and manpower. Along this, management conduct PESTEL
and SWOT analysis to acknowledge internal and external analysis of system. This
helps administration to anticipate of positive and negative impact of macro factors
on business; thereby have complete information about strengths and weakness
interrelation with macro components.
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Online
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SWOT Analysis of Marks & Spencer.2017.[Online].Available
through:<https://businessteacher.org.uk/swot/marks-and-spencer.php >.
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