Business and the Business Environment Analysis: M&S Report, UK

This report provides a comprehensive analysis of the business environment surrounding Marks and Spencer (M&S), a major UK retailer. It begins by defining different types of business organizations, including public, private, and voluntary sectors, and their respective purposes, sizes, and scopes, using M&S as a private sector example. The report then examines the relationships between various organizational functions within M&S, such as marketing, sales, finance, and customer service, highlighting their interdependencies and contributions to overall business goals. Furthermore, the report delves into the impact of macro-environmental factors (political, economic, social, technological, legal, and environmental) on M&S's operations, emphasizing the importance of PESTLE analysis. A SWOT analysis is also conducted to identify M&S's strengths, weaknesses, opportunities, and threats, and the interrelation of internal and external factors. The report concludes by summarizing the key findings and implications for M&S's strategic planning and decision-making in a dynamic business environment.

Business And The Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Different types of organisation with their purposes..........................................................1
P2 Size or Scope of different types of organisations..............................................................3
TASK 2............................................................................................................................................4
P3 Relationship between different functions of organisation.................................................4
TASK 3............................................................................................................................................6
P4 Impact of macro environmental factors on business operations.......................................6
TASK 4............................................................................................................................................7
P5 SWOT analysis .................................................................................................................7
P6 Weaknesses and strengths interrelate with external factors .............................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business is an activity that involves buying and selling of various kinds of products and
services in market place. For higher growth and success, every firm should consider all
environment factors while making strategies and plans as environmental factors affect all the
operational activities of management. So, every company should focus on internal as well as
external factors which can influence operational practices. It comprises of various different types
of elements such as sellers, sales, buyers, products, management, marketing, manufacturing and
so on (De Jonge, 2011). The present project report is about Marks and Spencer which is the
largest retailer organization in United Kingdom. This firm provide products and services such as
clothing, food items and home products in high quality to its customers and clients. In this report,
different types of organizations with their purpose, legal structure, size and scope are given.
Further, relationship between all functions of the organization has been determined. Apart from
this the SWOT and PESTLE has been analyzed to know strengths as well as weaknesses of the
enterprise.
TASK 1
P1 Different types of organisation with their purposes
Business organization can be owned by any individual or group in which they set
common set of goals. It may have different types of objectives depending upon the kind of
ownership. For most of the companies, profit generating is the main aim. But few of them are
1
Illustration 1: Types of
business organisation, 2017

nonprofit organizations which have their aim to provide benefit to society and not earning profit.
Following are the different types of organizations.
Public sector: This type of organisation is generally owned by government and they are
responsible for all the operational activities and practices (Cronan, T. P and et. al., 2011). They
have main motive to create job for the unemployed people of country and generate profit by
providing effective services to public. Generally, they provide services in different sectors such
as education, telecommunication, infrastructure, power and health care, etc. NHS was founded in
the year 1948 that provide health and social care services to public. In the public sector
organisation, government is responsible for all operational activities. This kind of company is
run by government funds that citizens of country pay as the tax form. The NHS organisation is
public sector company which work for social welfare and help to poor people. They protect from
any kind of discrimination of customers and also avoid the use of duplication of resources. .
Private Sector: This kind of company generally focuses on those factors which help
them to increase their level of profit and success in the market place. They are owned by any
private individual and group and has a motive to generate higher profit. It is formed by
developing a new firm and privatizing a public organisation. There are more number of staff
members as compared to the public company (Cordes, Richerson and Schwesinger, 2010).
Partnership, franchises and sole traders can be few examples of this sector. They have the main
aim to increase market share, productivity and maximise sales of goods and services. This type
of enterprise gets financed from personal savings, government subsidies and bank loan or by
partnership. They are regulated by one or more people to accomplish desired target. Transfer of
2
Illustration 2: Legal structure of public
sector, 2017

shares are restricted in private limited company. The Mark and Spencer is private sector
organisation which provide products and services to public at reasonable price and also, earn
financial profit. This enterprise specialises in selling of home products, clothing and luxury food
products. It was founded in year 1884 by Michael Marks or Thomas Spencer in Leeds.
Voluntary sector: They are generally non-profit organisations whose main aim is to
work for social welfare without making any kind of profit. They are formed by the number of
members who come together to form an organisation. Welcome trust firm of this sector works
hard to improve the condition of society (Commander and Svejnar, 2011). They provide free
services to special types of people such as blind, HIV , ADS and physically handicapped as well
as those who are suffering from poverty. They raise funds by organising different types of
events and donation funds which they get from large number of people.
P2 Size or Scope of different types of organisations
Both small as well as large business organisation help in the improvement and
development of country by accomplishing high financial profit in the competitive market place.
It is very much important for all companies to perform all tasks and practices of management
effectively so that they can give more contribution in the growth of economy.
Private sector: The mark and Spencer organisation comes under this sector which play a
great role in development of economy. They contribute in national income as well as economy of
the country. They create lots of job for the people who are unemployed in the country. There is
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Illustration 3: Legal structure of private sector, 2017

approx. 3000 employees in the firm. M&S is having main motive to earn high profit by
providing good quality of products and services to its customers. It is one of the biggest retailers
in United Kingdom which has approx. 1,433 stores world-wide. They mainly focus on high
quality of goods and services for satisfying the needs and wants of customers so that they do not
switch to other branded products (Chow, A. T and et. al., 2012). Company has a large number of
employees who help to achieve high growth and success in the competitive marketplace. Mark
and Spencer have annual revenue approx £10,622 million, earn operating income around £690
million and its profit is around £115.7 million in year 2017.
Public sector: Organisation of this sector is mainly owned by government which has
main objective to provide goods and services to public at reasonable price. All kinds of
charitable organisations and trust who provide services to poor people comes under public sector.
NHS is one of them who help old citizens, handicapped and below poverty line people. They
work for the social welfare and give more focus on weaker areas. NHS is located in the United
Kingdom in year 1948 at that time company had budget of £437 million. It operates all functions
in three sections which are primary care, community services and hospital service. The
organisation have annual revenue budget around £136.7 billion.
Voluntary sector: Welcome Trust comes under this sector which is biomedical research
charity organisation. It is based in London, United Kingdom. The have main motive to
accomplish extraordinary improvements and development in health and care sector by funding
the resources. There is around 2,057 employees working in the organisation and 11 Euro billion
disbursements per year. The company have annual revenue approx £ 20.9 billion which is used
for the treatment of poor people.
M1
Ever company have their own goals and objectives according to which they operate all task and
practices. Higher authority regulate duties and responsibilities to all staff members to accomplish
desired target in certain period of time. The M&S has different functions and aims which are
completely different from other organisation. So, firm need to ensure that they should interrelate
its objectives and operational functions which help in gaining best outcomes (Cantwell, Dunning
and Lundan, 2010).
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TASK 2
P3 Relationship between different functions of organisation
Company can increase profitability and productivity level if Mark and Spencer operate all
functions and practices of management by look at its goals and objectives. There must be
interrelation between operational activities and goals which firm have to achieve. The manager
of M&S is involved in the selecting, hiring, monitoring, evaluating and planning all the activities
at work place. There are various kind of organisational functions which are as under:
Functional structure: In M&S work is divided according to the employees ability and
on the basis of objectives of the company. There is two types of position at work place such as
line and staff. The employees of line position give command to their subordinates for effective
management in the firm. The employees of staff member control and manage command from
higher authority.
Marketing and Sales: Both play most important role in the growth and success of the
company in the competitive market place. With the help of them organisation can easily
convince the customers to purchase the products and also help to provide proper information
about the needs and requirements of customers to M&S (Blanchard, Tolbert and Mencken,
2011). This will assist in accomplishing goals and objectives in certain time period. Marketing
and sales department aware about all the functions and activities of the company and provide
huge competitive advantage to the firm. They give important information to the production
sector regarding the current trend and demands of people in market place.
Finance: The duties and responsibilities of the staff of this department is totally related
to the amount of money. This section help to know the current position of the enterprise in the
market as compare to the last year. The staff member of this sector record all the details and
information about the transaction in the balance sheet through which M&S easily get to know its
current position. Through this, company can assess the need and requirement of all money in all
different department which assist in making effective strategies and plans to gain maximum
profit. Customer service: They play very crucial role in achieving goals and objectives as they
are backbone of the organisation without them no firm can maintain its stability in market place
for long period of time. So, it is must for M&S to provide products and services according to the
requirement of the customers for satisfying their needs and wants.
M2
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There is various different kind of variations in the environment of business that company is not
able to predict them. So all the departments of M&S should be ready for the difficult situations
and problem to deal with them effectively. Manager should be sure that all the activities and task
which is performed by staff members are according to the goals and objectives of the
organisation.
TASK 3
P4 Impact of macro environmental factors on business operations
Mark and Spencer have no control over the external environmental factors which can
highly affect the performance and operations of the management. Macro factors includes
political, environmental, social, technological, legal and economic factors. All these factors can
be positive as well as negative impact on the performance of the organisation (Bill Pasmore PhD,
and CMC, 2010). Mark and Spencer can know this impact by taking help of PESTLE analysis
and after having full information about the condition they can make strong and effective
strategies in order to adapt changes according to it.
Political: This factor widely affect the operations and functions of the organisation
because Marks and Spencer operates its services overall world wide. Different rules and
regulations from country to country can highly influence the practices of firm in business
environment. Continuous changes in taxation policy reduce the profit graph of company in
market place.
Environment: Mark and Spencer faces various issues and problems regarding the
different styles of production process because of this factor. Organisation can build its strong
brand image in competitive market place by giving core value to the economy and the
environment. By CSR firm can maintain its stability in market place.
Social: It is most important for enterprise to make strong and effective strategic plan by
taking care of social trends and needs. By taking preference of so many peoples company can
access the demand of customers so that they can provide products according to their
requirements.
Technological: The business level of Mark and Spencer has been increase after
introduction of new methods and advance technology in market place. They use them in all
operational activities and task for achieving best outcomes and result in certain period of time.
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Economical: Changes in the standard of employees wages and inflation rate will directly
or indirectly effect the success and growth of the Mark and Spencer. If the inflation rate
continuously increase then people would avoid eating of fast food items. Other than this if firm
raise the tax price on the food items which will make them more expensive for general public to
purchase that food items (Belás, J and et. al., 2015).
Legal: Company can gain high competitive advantage by following laws and legislation
in all operational activities at work place. Mark and Spencer regulate its functions by focusing on
all legal aspects regarding employees and customers right.
M3
The M&S company use PESTLE analysis method to observe all the external factors of
environment which can affect the performance of organisation in competitive market place. For
the high growth and development firm has been determine all such factors which have negative
and positive impact on the business operations (Aula, P., 2010).
TASK 4
P5 SWOT analysis
With the help of SWOT analysis Mark and Spencer can gain knowledge and information
about the micro environmental factors which can assist to know strengths, weaknesses,
opportunities and threats of organisation.
Strengths:
 It has global presence in all over world
wide its maximum market is expanded
in European countries.
 They provide its products and services
in all small stores, hypermarkets and
supermarket.
 They make continuous changes in its
price policies to ensure that they are
providing products at reasonable price.
 They give large range of goods to its
customers and clients for satisfying
Weaknesses:
 They face some issues and problems
while managing its all functions at
work place.
 They have low presence in other
nations accept China and US.
 They face some issue due to which its
market share goes down.
 Because of this negative image has
been created in customer's mind
regarding its product and services.
 The investors do not want to invest
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their needs and demands. their money on the share of company.
Opportunities:
 They can expand its operational
activities in other countries where they
do not have presence.
 They can modify its menus on regular
basis on the basis of different
geographical locations.
 They should provide food items that is
totally healthy for peoples.
Threats:
 It is not too much popular in all over
the world so customer more prefer its
competitors.
 Due to changing consumer habits and
with more regulation by the
government policies on food items can
effect their business.
 Because of continuous changes in the
needs and wants of customers and more
regulation of government on the food
items the level of profit decrease.
 They have to increase price of its
products and services if the cost of raw
material increase in market place.
P6 Weaknesses and strengths interrelate with external factors
Every enterprise have some strengths as well as weaknesses related with their business
practices. Management have to use PESTLE analysis so that right decision can be taken by them
for high growth and success (Trkman, 2010). Manager should make interrelation between goals
and operational activities and functions of the company which help to accomplish them in fixed
time period. After analysing external factors manager can prepare effective strategic plan and
action plan for the development and success of firm in competitive market place. All task and
practices should be executed in proper way according to the rules, policies and regulations which
are formed by government. This will help in raising funds and gaining high competitive
advantage in business market place.
Political: Mark and Spencer should consider all the rules and regulation formed by
government as they highly affect management functions and operations. Company can increase
its level of profit and success in market place by focusing on the political factors.
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Economic: While making strategies and plan for the growth and development of
company manager should focus on growth level, economic issues, resource cost, exchanges rates
and many more.
Social: They have both positive and negative impact over the management system of
organisation. So, it must for firm to consider this factor while making any kind of plan and
strategies which will assist in developing level of sale in market place. It includes age
distribution, change in lifestyle, population rate and so on.
Technological: Through this enterprise can increase its profitability and productivity.
High technology and new devices can be used by Mark and Spencer to improve their production
process.
Legal: This factor affect all the operational functions and practices due to which the
profit level of company decrease. If any organisation do not follow this in their work than
government body can stop their functions.
Environment: The cited firm should perform all kind of activities and practices in proper
way without harming environment and society.
Strengths: It is known as power of company which help to maintain its stability in
market place. Every firm use its strengths as the most effective tool of success to deal with
existing competitors who are available in market place. Organisation used them in reducing and
removing various barriers which came in the way of success. Thus it is very much important for
Mark and Spencer to identified its strengths to deal with its competitors effectively. It will also
help in strategy as well as plan making process though which firm can increase its level of
profitability and productivity in most systematic manner (Siewiorek, A and et. al., 2012). The
management of M&S seek to open its more stores in overall wide to increase its financial profit.
For this they have to identify the stability of government in that particular country where they
want to start its business practices because rapid change in government policies can highly affect
the performance of company. The biggest strongest point of M&S is that they use advance
technology and methods in its all operational function that assist to reduce the cost and price of
production process.
Weaknesses: The company have inability to deal with various changes that is biggest
weakness. The firm have to make continuous changes in plans and strategies to deal with such
kind of issues and problems. All nations have various kind of rules, policies and regulations
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which have to be followed by all organisation while operating its practices and activities in
business environment. As, they have wider impact on the operations and working task of the
organisation which is major weakness for the firm (Robbins, Judge and Campbell, 2010). The
political instability is also another weakness for the organisation because continuous changes in
procedures and policies of operational function can affect whole working entity of the enterprise.
The manager of M&S should follow all the laws and policies in business management which is
formed by government. If any firm do not follow them in their business procedures and practices
than government can stop their operational activities.
CONCLUSION
From the above project report it has been concluded that management should considered
all environmental factors while making any strategies and plans for the growth and success of
business in competitive market place because macro factor have huge impact over the
performance of company. External factors includes social, political, environment, technological,
legal and economic on which firm have no control. If manager seek to enhance its profitability as
well as productivity level in market place then he will have to provide positive and healthy
working environment to their staff members so that they can execute task and activities in most
effective and systematic manner to achieve best result. This report is about Mark and Spencer
which is one the largest retailer firm in the United kingdom. Generally, company focus on
providing high quality products and services to its clients and customers at reasonable price to
satisfy their needs and demands. In this report, different types of organisation has been discussed
with their scope as well as size in business market place. Manager have to make continuous
changes in its policies and regulation by focusing on external environmental factors. This will
help in achieving high growth, huge competitive advantages and financial profit.
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