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

This report provides a comprehensive analysis of Marks & Spencer (M&S) and its business environment. It begins by outlining the purpose and legal structures of M&S, public, and voluntary organizations, including their visions, missions, and goals. The report then examines the size and scope of M&S compared to other business units like Best Friends Animal Society and Essex County Council. It identifies the relationships between various organizational functions within M&S, such as production, marketing, and finance, and how these functions contribute to achieving the company's objectives. Furthermore, the report explores the positive and negative impacts of macro-environmental factors, including political, economic, social, technological, legal, and environmental influences, on M&S's operations. Finally, it conducts internal and external analyses to assess M&S's strengths and weaknesses, and the extent to which these are related to macro factors, offering a holistic view of the company's strategic position and challenges.

Business and Business Environment

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................1
P1 Stating the purpose of M&S, pubic and voluntary organization along with their legal
structure..................................................................................................................................1
P2 Presenting the size and scope of M&S as well as other business unit..............................3
P3 Identifying relationship between organizational functions which takes place within
M&S for the achievement of goals........................................................................................4
P4 Identifying positive and negative impact of macro aspects on the business operations of
M&S.......................................................................................................................................5
P5. Conducting internal and external analysis to assess strengths and weaknesses of M&S 6
P6. Assessing the extent to which strengths and weaknesses of M&S are related with
macro factors..........................................................................................................................8
CONCLUSION..........................................................................................................................8
REFERENCES.........................................................................................................................10

INTRODUCTION
Business environment implies for the internal and external factors that closely
influence the functions as well as operations of firm. In the recent times, macro factors are
fluctuating with the very high pace which in turn places direct impact on the growth and
success. Thus, for the development of competent framework firm is required to consider all
the aspect while taking decision about business activities. The present report is based on
M&S which is one of the leading retail business organizations of UK. It is listed on FTSE
100 index and involves in offering retail products or services to the customers. In this, report
will provide deeper insight about the purpose, size and scope of M&S as compared to other
business units. Besides this, it will shed light on the level to which macros influences the
success of M&S. Further, it also depicts the strengths and weaknesses of M&S which firm
should keep in mind while developing strategic and policy framework.
P1 Stating the purpose of M&S, pubic and voluntary organization along with their legal
structure
By doing assessment, it has been identified that different types of business units
having varied goals
Private firm or publicly listed firm
 Meaning: M&S comes under the category of PLC because it is listed on the
recognized stock exchange of London such as FTSE 100 index. It is owned and
operated by private entity rather than government authority. Main characteristics of
private firms include minimum subscriptions, capital etc. As
 Vision: To attain leading position in UK retail sector by setting specific or exclusive
standards pertaining to quality. Hence, vision of the company is to set its own services
or offering as standards in against to which others are measured (M&S’s mission
statement and what are its core values, 2017). Company wants to create competitor’s
aspiration in relation to attaining the quality level in line with M&S.
 Mission: Offering high quality and innovative products to customers in the areas of
cloths, food and home is the mission of M&S. Besides this, company is placing

emphasis on providing customers with quality products at affordable prices. It focuses
on offering good value for money to the customers.
 Purpose: The main purpose or goals of M&S is to maximize sales revenue and market
share in the retail sector. In addition to this, firm’s main objective is to undertake
differentiation strategy pertaining to quality, freshness and innovation. Further,
another main goal of the company is to become world’s most sustainable retailer over
others.
 Legal form or business structure: M&S follows hierarchical structure to ensure
smooth functioning of the business operations and functions. Hierarchies of business
unit include finance, marketing, HR, production, operations and R&D. Hence, all
such departments are responsible for their own performance. Thus, company lays
focus on the attainment of goals through delegating roles and responsibilities among
the personnel of different departments.
Public limited firm: Firms which are owned and controlled by the government authority
are known as public limited organizations. Essex County Council is owned by British
Government that governs non-metropolitan counties.
 Vision: This council focuses on improving the lives of their residents.
 Mission: To elected officials that work cohesively for meeting the challenges and
preparing for future (Essex vision and priorities, 2017).
 Purpose: Objective of Essex County Council is to offer high quality services to the
customers and gives high value for money.
 Legal form: Such government business unit follows hierarchical organizational
structure. Moreover, company’s operations are wide and it offers several services to
customers. Thus, head of all each department gives instructions to their subordinates
and report to higher authority. Hence, by following or undertaking such type of
structure company manages its operations as well as operations.
Voluntary or non-profit firm: Firms which work for the welfare of others are recognized
as non-profit making organizations. Hence, in this, group of people voluntary make their
efforts for the well-being of society and avoids the aspect of profit. Best Friends Animal
Society is the best example of voluntary or NPO’s. Such firm works at global level in
outreach programs; rescue groups etc and promote pet adoption.

 Vision: This statement of Best Friends Animal society includes and focuses on the
creation of better world through kindness to animals (Best Friends Animal Society,
2017). Further, new vision of such society is to reduce the number of unwanted pets
through the means of effectual spay and neuter program.
 Mission: To reach at the level where there is the absence of homeless pets. Such
mission can be attained by showing and promoting exemplary anima care (Vision and
Mission of Best Friends Animal Society, 2017). Along with this, by building
community programs and partnerships Best Friends Animal society completes such
mission.
 Purpose: The main purpose of Best Friends Animal society is to develop feeling of
care among people towards pets. Thus, providing pets with high level of protection is
another main motive of such voluntary firms. For the attainment of such objective
principles related to transparency, leadership and authenticity are followed by NPO. It
judges effectiveness by assessing the extent to which animals are saved and improved.
 Legal form: Structure of Best Friends Animal society is flat which in turn places
greater emphasis on performing activities through the means of co-ordination. Hence,
on the basis of flatter structure, by delegating roles and responsibilities all the
members make their efforts for the attainment of goals.
P2 Presenting the size and scope of M&S as well as other business unit
Scope of the business unit can be presented or defined in terms of local, national,
international, multinational and global.
Size and scope of Best M&S
From evaluation, it has been identified that M&S comes under the category of
multinational company as it operates in several countries of the world. M&S has stores in
approximately more than 40 countries of world which clearly shows that it is a multinational
retailer. By taking into account such aspect, it can be presented that size and scope of M&S is
wide. Moreover, when business unit operates in the several parts of world then it has
opportunity to enhance sales revenue and profit margin by offering products or services to
more customers (Crabbe and Acquaah, 2016). Along with this, firm also has opportunity to
expand business operations in such countries and thereby attain success. Thus, by offering
innovative and eco-friendly products to the customers M&S can create distinct identity and
explore its operations at global level.

Size and scope of Best Friends Animal society
Best Friends Animal society can said to be either local or national company. Such
voluntary organization lays emphasis on organizing nationwide programs. In accordance with
such aspect, it can be presented that size and scope of such NPO is narrow over M&S and
public firms (De Vries and et.al., 2016). Moreover, initiatives which are undertaken by such
organization for the protection of pets or animals are limited to the specific country.
Size and scope of Essex County Council
Further, Essex County Council comes under the category of local business unit. The
reason behind this, key area which is served by such company includes UK. Thus, by keeping
such aspect in mind it can be stated that in comparison to M&S size and scope of Essex
County Council is not wide. The rationale behind this, operations of the company are limited
to UK so it is not able to serve large number of customers. Along with this, business unit has
scope to explore its business operations in UK by establishing more branches and providing
customers with suitable financial solutions. By doing this, firm can maximize its revenue and
profitability to the significant level (Atighechian and et.al., 2016).
Hence, considering all the above depicted aspects it can be said that size and scope of
different types of firms such as private, public and voluntary varies to a great extent.
P3 Identifying relationship between organizational functions which takes place within M&S
for the achievement of goals
Organizational functions include production, operations, marketing, financing as well
as research and development. All such functions of M&S are interrelated with each other and
assist M&S in fulfilling the goals and objectives to a great extent. Mission of M&S is to
provide customers with high quality products or services and maximization of profit as well
as shareholders wealth. In this, R&D department lays high level of emphasis on assessing gap
and presents the manner in which innovative products or services can be introduced. On the
other side, finance department develops budgeting framework and circulate the same in the
concerned area (Netting and et.al., 2016). Further, marketing department focuses on
promoting innovative products or service which is offering by M&S. Thus, by performing all
such activities or functions business unit can enhance its sales revenue as well as profit and
thereby would become able to offer high return to shareholders. In this way, all the functions

of organization are highly related with each other and provide assistance in attaining
organizational mission.
In addition to this, objective of M&S is to perform business activities in sustainable
manner. With the motive to enhance and strengthen brand image company is planning to
make focus on the adoption high tech equipments. In this, it is the accountability to finance
manager to furnish information about the funds available for such purpose. Besides this,
manager is also responsible for the preparation of budget according to which other
departments need to spend money (Kubasek, Brennan and Browne, 2016). Further, R&S
department identifies practices through which work can be done by M&S in a sustainable
way. Besides this, production department is required to follow all the sustainable practices
assessed and presented by R&D department.
In addition to this, HR department or manager lays high level of emphasis on
assessing the need of recruitment and selection. For this purpose, manager of the firm take
input from other departments, such as operational and production, with the motive to develop
competent recruitment plan. In this way, input provided by other departments provides high
level of assistance in making selection of best personnel for job. Thus, on the basis of overall
evaluation, it can be entailed that organizational functions are significantly interrelated and
makes remarkable contribution in the attainment of organizational objectives.
P4 Identifying positive and negative impact of macro aspects on the business operations of
M&S
Macro factors include political, economic, social, technological, legal and
environmental etc which in turn affects whole region rather than particular firm. Hence, all
such factors have significant impact on the business operations of M&S in both positive and
negative manner. Thus, before developing strategic framework business should review all the
external or macro factors.
PESTLE analysis of M&S
 Political factors: In UK, tax policies which are introduced by the government
considered as god and supportive. Thus, concerned policy will reduce the obligations
of firm in monetary terms and maximizes profitability to a great extent. M&S has
developed its effectual image in UK retail sector under the category of CSR. Several
initiatives have undertaken by the company for making contribution in the welfare of

others. However, UK government fails to develop and introduce suitable guidelines
pertaining to energy efficiency scheme which in turn highly impacts M&S initiatives.
 Economical factors: Macro analysis exhibits that economic condition of UK is good.
This in turn places direct impact on the purchasing power of customers because due to
this they do not have spare cash to spend on luxury products or services. In this, M&S
can attract customers and enhance sales by offering products to the customers at lower
prices (PESTLE analysis of M&S, 2017). On the other side, such undesirable
condition will compel M&S to close its some stores and thereby place negative
impact on its presence.
 Social factors: Now, major focus of the customers is on making purchase of green or
organic products and services. Thus, M&S can enhance brand image, market share
and profitability aspects by offering eco-friendly products and services to customers.
Further, in UK, most of the population is old as well as price conscious in nature that
places adverse impact of the growth of M&S.
 Technological factors: In the context of socio-cultural factors it can be presented that,
in UK, baby boomers are mostly retired. Thus, for attaining success in the competitive
retail sector M&S is required to develop sound framework for catering new segment.
Now, technological advancements take place in the retail sector more frequently.
Hence, M&S has built sound online presence by placing advertisements on social
media. This in turn helps firm in developing awareness among the customers
regarding its offering globally. However, now customers prefer to purchase products
or services through online means. Thus, if business unit fails to offer products to the
customer via online then brand image will be affected negatively.
 Legal factors: Macro analysis presents that laws and legislation pertaining to health &
safety, consumer protection, employment etc are amended by the government after
specific time or on the basis of need. In this regard, M&S is required to consider all
the amendments while carry out business activities. Hence, by complying with all the
laws business unit can build and maintain distinct image in the mind of concerned
stakeholders (Chow and et.al, 2016). On the critical note, it can be mentioned that to
follow legislation in relation to health & safety, packaging etc firm has to make major
modifications in the operations. This in turn imposes both challenge and cost in front
of business unit. Besides this, UK is planning to leave EU which in turn places direct
impact on profitability and sales of retail business units.

 Environmental factors: As compared to earlier, concern of customers and other
stakeholders towards the aspect of environment sustainability is increased
significantly. On the basis of such aspect, by taking initiatives in relation to making
effectual disposal of waste, recycling etc M&S can build or create distinct identity in
the mind of target market (Xue and et.al., 2016). However, for making contribution in
the sustainable environment business unit is required to streamline its business
operations. Hence, for effectual management and recycling purpose business unit
needs to make huge investment which in turn imposes high cost. Thus, it can be
depicted that environmental factors have both positive and negative impact on M&S.
P5. Conducting internal and external analysis to assess strengths and weaknesses of M&S
Business unit can develop suitable policies and competent framework only when it
has information regarding own strength, weakness, opportunities and threats. In this regard,
SWOT analysis is one of the most effectual techniques which in turn help company in
assessing internal aspects such as strengths and weaknesses. Hence, by making evaluation of
the same M&S can undertake strategic action to convert weakness into strength. Further, it
also renders information about external aspects such as opportunities and threats. On the basis
of such aspect, by grabbing opportunities and minimize the level of threat firm can achieve
success.
SWOT analysis of M&S

(Source: SWOT analysis of M&S, 2017)
Strengths: By doing SWOT analysis, it has been assessed that M&S offers wide
variety of products or services to customers which is recognized as major strength. In
addition to this, high recognition of brand is also the main strengths of M&S. In UK, M&S is
considered as top brand which comes in the mind of customers first over others. Along with
this, M&S has established more than 1000 stores across 40 countries. Quality products and
own branded labels are main strengths of M&S which in turn helps it in gaining competitive
edge over others.
Weaknesses: Company fails to attain high market share due to the immense
competitive situation in the retail market. Further, M&S places lower level of emphasis on
technological advancements which in turn may cause of high cost. In the present era, majority
of the companies prefer to undertake mechanized and automated material handling alternative
which in turn positively contributes in logistic operations. Hence, most of the companies
which are operating in retail sector of UK are employing latest technologies with the motive
to enhance productivity (SWOT analysis of M&S, 2017). Thus, failure of M&S in relation to
utilising latest technology is the main drawbacks or weaknesses which increases cost and
reduces efficiency aspect. Promotional and publicity campaigns of the firm is not sound that
adversely impacts both productivity and profitability aspects of firm.
Opportunities: Business unit can grow by making focus on the aspects of
internationalization. Hence, by opening stores in the developing countries M&S can enhance
customer base and thereby profitability aspects. Thus, such strategy needs to be undertaken
by management, in relation to enhancing branches all over the world, for getting the desired
level of outcome. Hence, by exploring business operations in the countries like India, China
etc M&S can attain success (SWOT analysis of M&S, 2017). Further, by introducing new
market segments M&S can attain more profit margins. By developing websites M&S can also
increase its customer base and build global presence.
Threats: Government policies and regulation imposes high threat in front of UK retail
store including M&S. Moreover, now several policies and rules are introduced by
government authorities pertaining to packaging, health and safety, consumer and employee
protection. Thus, such changing rules and regulations closely influences overall framework of
business unit (Erisen and Kubicek, 2016). Apart from this, company is facing major threat

from the retailers which are offering products or services to the customers on discounted
prices such as ALDI, ASDA, Tesco etc.
P6. Assessing the extent to which strengths and weaknesses of M&S are related with macro
factors
By doing internal and external analysis, it has identified that macro factors have
significant impact on the strengths and weaknesses of M&S. Both are highly interrelated
because company has to comply with political and other legal aspects while carry out
activities. Economic conditions places direct impact on customer decision making in relation
to purchasing luxurious products. Due to this, in UK retail market majority of the companies
are focusing on providing customers with heavy discounts. Thus, due to the economic
condition, competition is significantly increased in UK and negatively affected market share
of M&S. Along with this, social factors present that ageing population resides in UK that is
highly price conscious in nature (Padmanand and et.al., 2016). Thus, by considering such
aspect M&S started to offer quality products at affordable prices. In this way, by assessing
the need and expectation of customer’s strategic action has taken by the firm which in turn
becomes its major strength.
Further, technological factors show high level of growth in UK retail sector with
which firm needs to comply for attaining success. However, M&S fails to undertake
advanced technologies for material handling and developing attractive websites. Thus, failure
of company in relation to following technical aspect is recognized as weakness (Davids and
et.al., 2016). In addition to this, as per social and environmental factors firm can build as well
as maintain competitive edge over others only when it follows the aspects of environment
sustainability. Thus, by identifying such requirement M&S started to sell products with own
labels. All the above depicted aspects clearly shows that significant association takes place
between both internal and external factors.
CONCLUSION
From the above reports, it has been concluded that enhancement of customer base and
market share is one of the main objectives of M&S. It can be seen in the report, all the
function of M&S are highly interrelated with each other which in turn makes vital
contribution in the attainment of organizational goals and objectives. Besides this it can be
inferred that size and scope of M&S is large over others. Further, it has been articulated that

absence of online websites or presence is major weakness of M&S which business unit needs
to overcome for attaining competitive position. It can be summarized from the report that
macro factors has both positive and negative impacts on M&S. Along with this, it can be
stated that strengths and weaknesses of M&S are highly associated with the macro factors.
Thus, it can be presented that business unit should develop policies after making evaluation
of both internal and external aspects.