BTEC HNC Business Environment Report: Mark & Spencer Case Study

This report offers a detailed analysis of Mark & Spencer (M&S), a British multinational retailer. The report begins with an introduction to the business and business environment, emphasizing the impact of internal and external factors on companies. It then explores the different types, scope, and size of organizations, differentiating between profit and non-profit organizations, and examining micro, small, medium, and large enterprises, along with various legal structures such as sole traders, partnerships, and private limited companies. The report delves into organizational structures, including transitional, international, and global organizations, and analyzes the industrial structure and competitive landscape within the retail industry. It also covers franchising, joint ventures, and licensing as strategies for business expansion. The report further examines the functions within an organization, such as marketing, finance, human resources, and operations, and their interrelationships, as well as their alignment with the company's mission and objectives. A significant portion of the report is dedicated to analyzing the macro-environment using PESTLE analysis, assessing the political, economic, social, technological, legal, and environmental factors affecting M&S. Finally, the report conducts internal and external analyses of M&S, identifying its strengths and weaknesses through SWOT analysis and exploring how these factors interrelate with external macro factors.

BBE

Table of Contents
Introduction...............................................................................................................................................3
LO1.............................................................................................................................................................3
Different types, scope and size of organisation........................................................................................3
Size and scope of organizations...............................................................................................................5
LO2.............................................................................................................................................................7
Functions within the organisation............................................................................................................7
LO3.............................................................................................................................................................8
Positive and negative influence/impact the macro environment..............................................................8
LO4.............................................................................................................................................................9
Conduct internal and external analysis of specific organisations in order to identify strengths and
weaknesses..............................................................................................................................................9
How strengths and weaknesses interrelate with external macro factors.................................................11
Reference..................................................................................................................................................13

Introduction
Business and business environment consist of internal and external factors that have huge
impact on the companies functions, strategies, customers and their supply and demand etc. this
factor can have both negative and positive impact on the business so it is necessary for the
leaders and managers to be aware of those factors to identify opportunities and overcome from
the negative growth.
This report will cover case three of Mark's & Spencer Which is British multinational
retailer company. they are selling product such as Home appliances, clothing products and food
products.
LO1
Different types, scope and size of organisation
There are two profit and non profit organisation that have their own rules and regulation
and way of doing their work. profit organisations our organisation that make product and
services according to the needs and demands of the people within the society (Bhatia., 2017).
they sell those products to the customers in the exchange of money and that is their profits. the
main aim of the profitable organisation to earn profits by selling their goods and services. Mark's
& Spencer Is profit making organisation who are selling their product to to grow their business
and earn probability
On the other side nongovernmental organisations are those organisation who do not
work to earn probability. Their main goals and objectives are to provide support and help to the
society. There are many NGOs within the United Kingdom that are helping people through the
charity. Save the Children which is also in non profitable organisation who run the programmes
to save children in all over the world.
Micro, small, medium enterprises
Micro enterprises
Micro enterprises are the businesses that employ less than 10 people within their
business. It is started by the local entrepreneurs an investment plan for this business are very low.
The main purpose off micro businesses is to unlimited probability and provide benefit to the

local people. They buy finished products from the retail distribution and sale on their own shop.
Micro enterprises also have huge contribution in local economy of the country.
Small enterprise
Small businesses are privately owned corporations, soul partnerships are the normal
partnership that have fewer employees around 0-50. small businesses always come up with the
new ideas of product and innovation that helped them too satisfy the needs anyone of the
customers and they can grow highly. They distribute their product and services in the local areas
when their business grow rapidly then slowly they expand their businesses on the other cities.
Medium
Medium sized enterprises can have up to 250 employees and then turnover is also more
than all of the other businesses. they operate their business on the state level and help local
economy to grow. they can also be a manufacturer Of the local products and supply directly to
the distributors.
The range of legal structure associate with different from our business
Sole traders
Soul traders are the individual person who employed themselves and ownPersonal
business. They put their own capital within the business and take Benefit of the profits
individually.
Partnership
A partnership is a formal agreement between the two or more than two parties to manage
and operate the business where they share the profit equally and liability as well (Radojevic And
et.al., 2018). There are several type of like general partnership, limited partnership, limited
liability partnership, limited liability limited partnership.
Private limited company
Private limited companies are the type of company that held small businesses. This type
of businesses entity limited owner liability to their shares, limited the number of employees and
shareholders and restrict shareholders from the publicly trading shares.

Size and scope of organizations
Small Medium Large
Goals and
objectives
Start their own
business, help
local community
Achieve long
term goals, come
up with a new
product and
increase sales
expand business
both national
and
international,
maximise the
profits and
growth
Market shares Low market
shares
Media market
share
high market
share
Profit shares Individually Owner and
investors
Owner,
shareholders and
investors
Growth and
sustainability
Low medium High
Global growth and development of , transitional, international and global organisation
Transitional companies
The transitional companies are more much and more complex organisations who having
invested in the operations in the foreign operations and they have a central corporate facility but
give decision-making marketing power to each individual foreign market.
International
International companies are the businesses that have no investment outside of the country
they only sell their product and services within the countries boundary and unprofitability
(Correa., 2016).
Global organisation

Global organisations are the companies who have presence in many countries. They have
a good market image that allowed them to sell their products in various countries, generally 1
corporate office that is responsible for the global strategy. Mark's & Spencer is an global
organisation who are selling their products in various countries.
Industrial structure and competitive analysis
A country’s industrial structure is the percentage of people who are working in each job
type changing the balance between those four sectors of the industry can help a country to
develop. This structure include sectors such as primary, secondary, territory, quaternary (Ghosh,
Baig and Goyal., 2020). Mark's & Spencer Is operating their business within retail industry
which is a part of primary structure. A competitive analysis is this strategy that identify the major
competitors and research of product sales and marketing. Mark's & Spencer can use comparative
analysis such as Porter’s 5 and Pestel analysis rotate competitive advantages.
Different building franchising joint venture and licencing
Franchising
franchising is the form of distribution and marketing in which the owner of the business
grant to an individual or group of individuals the right to run a business. Mark's & Spencer Also
franchise their businesses to expand their business.
Joint venture
Joint venture is the method where two companies collaborate with each other and make a
common business. it is helpful and useful strategy for the global entry. Mike and Spencer can
also use this strategy to take competitive advantages.
Licencing
Licencing is useful to expand business on the international level (Elia, Massini, and
Narula., 2019). Adding necessary for the companies to have a licence to run their operations on
the international level.
Market focus on economic operations
Supply and demand

Mark's & Spencer have well established logistic supply to all over the world. they are
operating their business in various countries where they easily reach to the people and their
product and service are available on their stores.
LO2
Functions within the organisation
functions and their interrelationship
Marketing
Marketing is one of the most important function that help customers to aware about
product and services sale by Mark's & Spencer. They are also interlinked with other functions
because they provide all the information related to the market (Painter And et.al., 2019). For
example – Information collected by the marketing team of the company is given to the
operational team where they interpret the information And develop product and services
accordingly.
Finance
Finance as most important part of the organisation that helps to run each and every
function and Department. Finance manager is responsible to ensure the proper use of finds to get
the maximum performance.
Human resource
It is another most important part of the Mark's & Spencer that is responsible to bring
skilful employees. This Department provide skilful employees to each and every Department.
Operational Department
Operational Department ensure that the production process is completed from start to
finish. This production process needs to be line up with the other functions and goals of other
Department within the Mark's & Spencer. This is how they contribute with each other and help
to gain competitive advantages to the company and they are able to show their presence as a
leading brand.
Relation with mission and objectives

All the functions within the workplace of Mark's & Spencer are very useful to achieve
goals and objective the company and they run according to Lee companies mission. marketing
function identify the customers and collect information that is useful in product selling and
developing (Cui., 2017). Finance Department ensure the cash flow and arrange the funds for the
company to run there other business functions. human resource management Provide training
and development to make companies employ strong and skilful. Operational Department that is
responsible to create a final product. contribution of all this product make company successful
and help them to achieve their mission an objectives.
LO3
Positive and negative influence/impact the macro environment
In order to identify positive and negative influence of macro environment Pestle Analysis
can be applied. Following is Pestle analysis of M&S-
Political- This environment consist of political elements and their impact on M&S. Political
relations between countries and political stability of the country in which M&S operates play a
very important role in success of M&S (Shtal and et.al., 2018). This has been negatively
influenced by Brexit. Because relation of UK with EU countries have been negatively affected.
This also involves policies of different government for international organisations and markets
and protectionist policies of government have a negative impact on M&S operations. However
government with liberal policies is a positive impact as it is easy to operate with such policies.
Economical- This is another important environment in macro environment of M&S. Economic
elements involve cost, price, interest and mainly factors affecting economic policies of M&S.
Digitalisation and technology has had positive impact on production as consumption, because for
business as well as for customers it has become very easy to connect with each other. However,
increasing cost of operation is a negative influence on M&S. But emerging BRICs markets are
also an opportunity and positive influence on M&S.
Social- Social environmentconsists of factors that are related to customers of the company. With
help of technology it has become easy for M&S to reach to potential markets with less effort
however, changing social power and customer tastes have significant impact on M&S (Rastogi

and Trivedi, 2016). This is both positive as well as negative, because it depends on the ability of
organisation to cope with changes.
Technological- Technological environment has become very important and centre of success of
the organisation. This involves impact of social technology and this has made very positive
influence on M&S, by opening several opportunities. Digital revolution also has made positive
impact on production and consumption and has made positive impact on the growth of
organisations.
Legal- This is another environment and this environment consists of different regulations and
laws that govern and regulate companies and their functioning. Along with general laws and
regulations affecting every organisation, it involves laws and regulations of cyber security, data
protection laws that influence M&S. This is because M&S also operates on online platforms and
this is why collect significant data of customers and regarding identity as well as regarding their
financial data and this is why it is important for M&S to ensure security of data and information.
Other than this, social technologies and their application also requires following these
regulations in order to collect data of customers and rightly target market.
Environmental- Increasing social consciousness has significant impact on organisations and
their practices. Organisations now are requiring following environment regulations in order to
ensure that they can attract customers (Vallati and Grassi, 2019). Organisations are increasingly
focusing on ethical and sustainable growth and this has both positive and negative impacts on
organisation. This means that in long term they can provide benefit to organisations, but
adherence to ethical and sustainable practices might increase cost and affect productivity of
M&S.
LO4
Conduct internal and external analysis of specific organisations in order to identify strengths and
weaknesses.
Swot Analysis
Strengths: They provide excellent and high- quality products and services. they have large
market share in retail sector of UK (Pratomo, 2019). They focus strongly upon enhance customer
experience by providing large variety of products with high quality in lower price. They have

approximately 1500 stores present globally. Provision of wide variety of products directly help
their customers to get huge variety of products to choose from.
Weaknesses: They are too much dependent upon market of UK due to which they become
vulnerable to UK market. They have a negative brand reputation of a company that product
products for old age people. Due to this, it has developed bad publicity of a non-trendy store.
They rely more on manual working rather than focusing upon adopting advance technology as a
result their overall operational cost increase.
Opportunities: focusing upon expanding their online business can directly help them in
increasing their sales and profitability globally. Focusing upon developing their clothing market
according to different age group of their customers is another opportunity to expand their market
and profitability and attract a greater number of customers. It can also be said that by reshaping
their clothing segment can help them in gaining competitive advantage. They can also focus
upon adopting new and advance technology for reducing their operational cost and enhancing
their overall productivity (Pratomo, 2019). So, it can be said that internationalization can help
them in increasing their global presence will help them to attract more number of customers,
enhance their sales, revenue which will eventually help them in enhancing their success changes.
Threats: Increasing competition in this retain sector in one of the major threats for marks and
Spencer. Main competitors of marks and Spencer are: Tesco, Sainsbury, Zara, Gap and many
more. Relying more upon market of UK is one of the main threats because impact of economy of
UK can directly impact overall profitability of M&S.
Strategies that can be used for Growth
Opportunities Threats
Strengths Strengthen their online
presence by strengthening
their e-commerce business
will directly help them in
attracting a greater number of
customers and enhance
profitability.
By focusing upon expanding
their business in developing
countries will help them to
reduce their dependency upon
UK market and will further
help the organization to
expand internationally.
Weakness Introducing new categories of
clothing products will directly
By focusing upon reducing
their dependency upon UK

help them in attracting a
greater number of customers
and will further help them in
changing their brand image of
a non-trendy store to a brand
for all age group people.
market and introducing new
clothing categories for young
people will help them in
gaining competitive advantage
and reduce threat from
competitors.
SWOT and TWOS matrix can directly help Marks and Spencer to identify their man strengths
and weakness and develop strategies for the same.
How strengths and weaknesses interrelate with external macro factors
Strengths are weaknesses are internal to M&S and have significant impact on decision-
making of the organisation. This mainly influence decision-making when determining what
opportunities are there that M&S can utilise and what threats are there in external environment
that M&S should be aware of and make strategies to avoid and reduce its impact on organisation
and its operations. As external environment outlines that M&S has opportunity for expansion in
forms of BRICs company can utilise its existing image for the purpose of expansion in these
countries (Aslam, Rehman and Asad, 2020). Other than this, M&S also have other strengths that
company can utilise in order to expand its business in other countries and this mainly based on
decision-making of the company which strategy and strength they will utilise in order to expand
its businesses. Further, social environment also have an element that is concerned with rapidly
changing customer taste and preferences and buying behaviour of the company. Concerned with
this, company requires to take decision so that this can become an opportunity rather than threat
for M&S. This means that M&S has strength in form of wide range of product availability and
also in form of enhancing customer experience and this strength can help in dealing with rapidly
changing customer behaviour. In order to increase and expand business, e-commerce is also an
opportunity and company requires determining what method they can select for the purpose of
expansion. As M&S is highly dependent on UK market BRICs is an opportunity for the company
to reduce their dependency on UK market. This means that emerging countries have significant
opportunity for M&S for the purpose of business as well as for the purpose of manufacturing
products of M&S.