Business Environment Analysis: M&S, Functions, and Impact

This report provides a comprehensive analysis of the business environment, focusing on Marks & Spencer (M&S). It begins by defining the business environment and its components, emphasizing the importance of adapting to competitive pressures. The report then delves into the organizational structure, distinguishing between public, private, and voluntary sectors, and their respective legal frameworks. It highlights the size and scope of M&S, comparing it with other types of organizations like NHS and voluntary organizations. A key section examines the relationships between various functions within M&S, such as production, marketing, human resources, research and development, and finance, underscoring their roles in achieving the company's objectives. Finally, the report assesses the positive and negative impacts of the macro environment on M&S, using the PESTLE analysis to evaluate political, economic, social, technological, environmental, and legal factors. The conclusion summarizes the findings, emphasizing M&S's commitment to serving customers through its diverse product offerings and its efforts to satisfy customer needs.

BUSINESS ENVIRONMENT

Contents
INTRODUCTION.......................................................................................................................................4
TASK 1.......................................................................................................................................................4
P1. Purpose of private, public and voluntary organization and legal system...........................................4
P2. Size and scope of a range of different types of organizations............................................................5
P3 Relationship between different function of M&S achieve objectives mission....................................6
P4 Positive and negative impact macro environment in M&S.................................................................7
CONCLUSION...............................................................................................................................................8
References...................................................................................................................................................9

INTRODUCTION
Business environment is a concept that is made up of number of internal and external
elements that are present in the surrounding. Some factors are beyond the control of the business
organization. Therefore, in order to keep in pace with the competitive environment, they have to
work with effectiveness and efficiency (Teece, D.J., 2010). The company included in this report
is Marks & Spencer (M&S), Retail Company in UK. The report will highlight the size and scope
of the organization as well as relationship of functions in M&S. Apart from it, it also focuses on
legal structures of different types of organization system.
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
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
customers mind for longer period of time.
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 are 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,
labour 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 labour unison helps them to face these challenges and overcome
them in effective manner.
P3 Relationship between different function of M&S achieve objectives mission
Every firm is required to have a better relation among the different functions of entity.
The entity M&S is having an finest relation with various department within firm. Moreover, if
the company is not having an proper relation among different division of entity then enterprise
cannot earn higher profit and even does not be able to attain its goals and objectives too. The
different functions of firm are as follows:
Production department: This department is having a responsibility to perform their
functioning in better manner so that effective and quality product and commodities for the
customer can be manufactured. Using different method help to produce quality product for
customer to satisfy them in effective manner (Carroll and Shabana, 2010). M&S is that company
whose management has created a proper relation with this department and having a better
relation with the company as whole.
Marketing Department: This department who is responsible for attracting the large
population towards the commodities and product of M&S so that they can increase their sales
and earn higher profit. Basically, marketing is the medium to communicate with the large market
and firm introduce their new product and services with the help of various ways included in
marketing i.e. advertisement, personal selling and public relation. Marketing department is that
which create various opportunities for organization to earn good amount.
Human resource department: Human resource department is considered as base of
company, employees are those who work for organization which make firm to get stable in
market, even though company cannot work in efficient manner without the proper human

resource in right context. Management should motivate employees time to time so that they can
work in great extent. Right direction is required to be provided to employee’s every time do that
they can work in right direction for the longer time and company can earn higher income.
Research and development: It is that department which has a responsibility to research in
market in great manner so that needed information can be achieved and with the help of such
proper decision and strategy can be made (Chavis, Klapper and Love, 2011). This department
should have a great connection with every department so that according to requirement research
can be conducted by company.
Finance department: This department is considered as the most important thing in every
organization as this particular criteria is responsible for making stable in market too. Finance is
such which help company to buy the important raw materials and equipment which does help
firm to complete their work on time and even can manufacture the quality product and services
in better way although too. Finance is such which is being required by every department to
organize their working in smoother manner as well.
P4 Positive and negative impact macro environment in M&S.
Each and every organization faces various positive and negative impacts on macro
environment, macro environment is such which somewhere always affect the company
performance in great way and it is being there in right context too. Macro environment is
included as the biggest concepts which take time to understand in better manner (Osterwalder
and Pigneur, 2010). Basically, macro environment is such which do include the PESTLE
analysis which do affect the company in great manner as well. The positive and negative impact
of the environment is as follows:
Political: The positive impact of political environment is there on the company is EC’s
free trade agreement is such which led to decrease the source cost in better manner. Even though
the firm is also having a CSR which is having a good impact on the firm. The negative impact of
entity is that it is having a higher cost structure disadvantage in the international market which is
affected as lack in UK energy efficiency scheme.
Economical: Positive Side of this thing is that it focuses on the quality product and
services which has a great values of it. Consumers are somewhere rationale in nature which does

create an satisfaction level in product for the amount they are paying. Negative side is that
competitors of firm is such which does also led down the prizes in comparison of enterprises that
does attract the consumers of M&S. Moreover in today’s scenario the customers do purchase the
product on the basis of offline thing.
Social: Positive impact is considered as M&S is having a perfect image in the eyes of
customers in the criteria of goods and services. Even though the customer has the belief that
quality product and services will be available with the company at the reasonable prices as well.
Company does perform various things which make them to feel the special and surprising too
(Welford, 2013). Negative impact is that in which the various people are from the various culture
and has an unusual preferences and wants, which has a forward which is fulfilled by companies.
Generally, if the demand is not met then the customer does shift in with to other products in
better manner. Company is that which also changes the thing according to the market as well.
Technological: Enterprises is such which is there on the social media with the online
presence as well. Consumers are those who have more and more technological focus which
somewhere also prefer different thing too. Positive side is CRM is success and also work in
effective manner that satisfy customer demand. Negative side is technology does changes with
time so the entity is not be able to adapt it in proper manner.
Environmental: Positive impact is that having a regulation on environment which also has
an increased pressure in with green and M&S is company who looked for advantage (Wild, Wild
and Han, 2014). Negative impact is competitive firms which are also going with advantage with
the regulations that will create an rivalry in between the M&S with other company.
Legal: The M&S is such which provide the home delivery with the channel of
distribution i.e. OMNI channel. Decision is that which company to exit with EU having an along
with UK in retail or having an legal action place to place.
CONCLUSION
From the above report it can be said that, M&S is that company who is serving millions
of people with their product and services in great manner and it sells the product like Clothing,
food and milk too. Basically, the firm has an motto of satisfying the customer in better way and

also provide the some special moment for their customers too. Normally firm is such who find
the cut throat competition in market. External factor are those which affect the company in great
way and even though firm manages to survive in proper manner. Relationship is there in with the
function as positive and negative impact on environment on entity.

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