Business Environment Analysis and Strategy for Marks & Spencer

This report provides a comprehensive analysis of the business environment of Marks & Spencer (M&S). It begins with an introduction to the business environment, differentiating between macro and micro factors and highlighting their impact on corporate decision-making. The report then examines the purpose and legal structures of private, public, and voluntary organizations, followed by an assessment of M&S's size and scope. A key section focuses on the relationship between different functions within M&S and their role in achieving organizational objectives, including production, marketing, human resources, research and development, and finance. The report further explores the positive and negative impacts of the macro environment on M&S, using PESTLE analysis. A SWOT analysis is also conducted to evaluate the company's strengths and weaknesses and their interrelation with external macro factors. The report concludes by synthesizing the findings and offering insights into M&S's strategic positioning within its business environment.

Business
Environment

CONTENTS
Contents...........................................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Purpose of private, public and voluntary organization and legal system......................1
P2. Size and scope of a range of different types of organizations..........................................2
TASK 2..........................................................................................................................................11
P3 Relationship between different function of M&S achieve objectives mission..............11
TASK 3..........................................................................................................................................12
P4 Positive and negative impact macro environment in M&S............................................12
TASK 4..........................................................................................................................................14
P5 Strength and weakness.................................................................................................14
P6 Interrelation of Strength and weakness with external Macro factors...........................15
CONCLUSION...........................................................................................................................16
References......................................................................................................................................17

INTRODUCTION
Business environment can be simply defined as an atmosphere where each and every
company used to run their businesses. Such place consist different kinds of elements named as
macro and micro factors. Macro one includes external factors like government, society,
economic condition of nation, environs, technological modifications and so on. On the other
hand, micro one involves other factors like suppliers, consumers, common public, rivals, etc.
These would influence on decision making of corporation. This is to be noted that these
components give great impact on the working as well as whole performance of a venture. It
could be positive or negative depending on the condition of those factors (Agarwal, Grassl and
Pahl, 2012). The current report is designed on the basis of a popular airline firm known as Marks
and Spencer. As a business analyst of M&S, I am responsible to carry out analysis of both
internal and external environment and formulate better policies so firm can better respond to all
the changes that take place in environment. In this way, company can sustain in market for long
run and at the same time can generate more number of profits. In order to understand the impact
of internal and external factors SWOT and PESTLE analysis is conducted which will assist in
finding out the effects of each and how they interrelate on wider context.
TASK 1
P1. Purpose of private, public and voluntary organization and legal system
There are several types of business organization that is operating in the corporate world.
It has been classified into public, private, voluntary that have diverse laws and regulations
governing these sectors. The legal Structure of these institutions are described below:
Public sector: This type of organization is under the control of government and have
different set of rules as compared to other institutions. They have the policy to raise their capital
through issue of shares and can have unlimited number of shareholders for their company. Their
basic aim is to serve services for the society and do not exist for earning profits and revenues
(Drucker, 2017). The other characteristic associated with this sector is that they have limited
liability of the extent of their expenditure.
Private Sector: These type of business organization is under the control of some
individuals and their prime motive is to earn high financial gains and competitive image in
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business environment. This can be formed with minimum of 2 staff members and directors. The
maximum number of stakeholders is 50 only. The partner that can be formed comprises of
maximum of 200 members that is defined in the law.
Voluntary organization: This type of institution is established to deliver voluntary
services to the society in order to increase their living standards and quality of life. All NGO’s
are included in this type of sector. They do not exist for earning huge financial gains. They are
governed under section 21 and there is trust which governs this type of business entity. They are
known as nonprofit organization system that involve work in solving several issues that get arise
in the society in which they are living. Therefore, their important objective to face such issues
and raise the society of peace and free of challenges.
From the above discussion it has been concluded that each and every business entity is
different from each other in terms of rules, regulations that govern these separate business firms.
All of them have certain specific norms and system which is concerned about number of
members. Capital required as well as laws control the working of this system. Government also
has to frame various rules and regulations that guide the actions of this organization system and
perform overall work process according to it (Iskanius, Page and Anbuudayasankar, 2010).
Therefore, every entity has to work while adhering to the set of rules so that they do not have to
face problem in regarding to it. Non- adherence may lead to generation of so many problems and
difficulties in front of them.
P2. Size and scope of a range of different types of organizations
M&S enjoy large scope and size that deliver large number of voluntary services of people
that are living in UK. It operates in around 1000 stores that is basically present in UK and around
500 stores in international level. The employees that are working there is also huge in number.
The scope of this company is high as it uses advanced and modern technology system n to their
business operations so that final aims and objectives could be achieved. M&S always
concentrates on producing such products and services that will yield them high profits and good
image in the market place. M&S have different outlets and deals in number of sections and hence
enable them to create sustainable image in the customer’s mind for longer period of time. There
is different size of business which are operating at distinct size and scope such as:
Sole trader – It is an option of carrying out business activity for an entrepreneur where he is the
only head of the whole business. All the decisions are taken by him and is responsible for the
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work done. Funds are invested in less amount as sourcing of raising finance is not much for a
sole trader and also risk involve is high. Scope of this business type is limited as it is restricted to
only those operations where less resources are required and degree of risk of failure is also not
much high for instance opening a small retail store, parlor etc.
Partnership – This is another Varity of carrying out the business activity in which the
ownership is shared among more than one person. There need to have minimum two person and
maximum can be 50. They together take the important decisions and share the risk involved in
business. Major source of finance for them is the savings of different partners. Their scope is
comparatively high as degree of risk is less and liabilities are shared among different partners,
The public company which include NHS that deliver its services in England. It is
regarded as top four nation’s health service provider organization system. The feature associated
with this business entity is that they do not charge anything for their patients and supply free of
cost services to them. They are formulated to deliver social services to the people that are living
in the society.
Voluntary business organizations system is distinctive individual entity from public and
private sector. They are incorporated for the good motive to be served by themselves. The type
of organizations that are included in this are trade unions. Associations and professional
associations that are formed for some purpose and aims that has to be full filled by them. These
motives have to be completed by them (Cantwell, Dunning and Lundan, 2010). For instance,
labor unions are formed to protect the interests of individuals and labors that are present in the
company. There are some conditions that lead to the generation of problems and difficulties in
front of them and therefore the labor unison helps them to face these challenges and overcome
them in effective manner.
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