Business and Business Environment: M&S Analysis and Impact Report

This report provides a comprehensive analysis of the business environment, encompassing different types of organizations, their legal structures, size, and scope. It examines the private, public, and voluntary sectors, highlighting their distinct characteristics and purposes. The report further explores various organizational functions, such as Human Resource Management, Finance, Management, and Sales & Marketing, and their interrelation with achieving business objectives. A significant portion of the report is dedicated to a case study of Marks & Spencer (M&S), evaluating its internal and external factors. The report utilizes a PESTLE analysis to assess the positive and negative impacts of the macro environment on M&S's operations, including political, economic, legal, technological, and social factors. The interrelation between the company's strengths and weaknesses and external macro factors is also analyzed to provide a holistic understanding of the business environment's influence on M&S and similar organizations.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1. Different types and purpose of organisations with their legal structure................................3
P2. Size and Scope of Different Types of Organisations.............................................................4
TASK 2............................................................................................................................................5
P3 Different organisational functions and interlink with objectives...........................................5
TASK 3............................................................................................................................................7
P4 Positive and negative impact of Macro environment on Business operations.......................7
TASK 4............................................................................................................................................9
P5 Internal and External analysis of M&S .................................................................................9
P6 Interrelation of Strength and weakness with external Macro factors...................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment refer to the combination of external and internal elements that
affect functions and sales of a company (Agarwal, Grassl and Pahl, 2012). It create a different
influence on various elements of enterprise such as consumers, management, workers and
demands as well as supply of products and services. The purpose of this report is to understand
purpose, legal structure, size and scope of different types of organisations. Also, it will evaluate
the impact of internal and external factors and their interlink of Mark and Spencer which is
multinational supermarket organisation provide a wide range of products and services including
apparel and grocery etc.. This will analyse functions of M&S on achieving goals and objectives
of enterprise.
TASK 1
P1. Different types and purpose of organisations with their legal structure
The benefits of organisation depend on the structure and its culture which determine
productivity of the services and products of firm. In present scenario, organisations are emerging
as crucial part of a country as it support it in employment of country, capital exchanges and
national economy which is useful for stakeholders, state as well as customers (Overview of the
Business Environment Working Group, 2017). There are different types of enterprises which are
distinctive from each other on the grounds of purpose, scope and sizes. Here are main structures
of organisations of society explained as below:
Private Sector
In this type, the distribution of goods and services is done by some individual bodies
despite of state. Such companies comply legal structure and contains all sole, partnerships and
corporate business with the purpose of earning revenues and profits and meet determined
objectives. Here are some of some of the major private business structures such as:
 Sole proprietorship
 Partnership
 Private limited company with private share
 Public limited company with public shares
Marks and Spencer multinational retailing company which render various types of
products and services in the market including grocery, apparels and many other. The major

purpose of organisation is to render the best quality of products and services to public in cost
effective rates.
Public Sector
These types of organisations are often function by the state or general public who
perform with the purpose of facilitating services to public as well as protect country's
monuments and historical places (Halbert and Ingulli, 2011). The owners of such companies can
be seven minimum to maximum infinite. In case of major shareholder of government, the
company would be considered as state associations which have to follow entire process of laws
and legislation for making any alternation.
The company NHS foundation is semi autonomous corporation which render health and
care services. Purpose of NHS foundation is to render the services to patients of NHS according
to principles and quality of NHS including free care.
Voluntary Sector
Voluntary organisations are also called unions. These are those groups of individuals who
work for serving the society to attain specific aims or goals. Such enterprise work for
development of socio-economic of nations and promote its art, folk, culture and other practices.
These organisations comply a legal structure and major purpose of these companies are to render
services to reduces social issues as well as protect and promote the culture. Such associations
don't pay taxes to state.
P2. Size and Scope of Different Types of Organisations
On the grounds of structure and sizes, the classification of business organisations can be
done. According to different sizes and framework, each company have different style and
members of staff which perform for them.
Private Sector
These organisations comply a legal structure which involve minimum 2 to maximum 50
employee members in the company. The number of employees can be increased according to the
needs and expansion of company. For example: Marks and Spencer is a Public Limited Private
organisation which is one of the largest retailing organisations of United Kingdom established
first in 1884. Company now has deployed its business in more than 11 nations that have 1433
stores globally in which 959 are only in the UK. It has employed more than 82,904 workers in all

its stores. According to the data of 2011, M&S has approximate 11% growth in only clothing
sector. The company is on its way of expansion of stores and developing quality of services
everyday.
Public Sector
Public sector organisation is often owned by the government of nation with maximum
public share (Al-Debei and Avison, 2010). The size and scope of such enterprises depend on
circumstances as well as user of services which are often minimum 7 to infinite number
according to shareholder amount. The company structure follow the legislative body and entire
law process to function.
NHS foundation is a voluntary organisation which provides free health and care services
to people who are not able to pay more. It has nearly 152 foundation groups which have more
than 150,273 doctors, 155,960 scientific, techniques and therapeutic staff and 377, 191 nursing
staff including 37,078 managers which handle and acquire the entire process and help it meeting
objectives. The scope of company is expanding services and interpret the needs of people or
clients.
Voluntary Sector
These organisations are often formed to provide welfare services to those who cannot
afford to pay and resolve the issues of society. Funds are gained through investors and sponsors
in these entities as well as services and products which are used for the sake of better future of
society. Size of these organisations can be large or small which depends on voluntary of people
service who are interested in serving people.
TASK 2
P3 Different organisational functions and interlink with objectives
Marks and Spencer is internation a British retailing enterprise which offers home
products, apparel, grocery and food products (Becker, 2017). This is the first retailing British
organisation which was able to earn 1 billion Euro pre tax profit. Company has a strong financial
condition in market and have a strong positioning in the company. It have 959 stores only in
United Kingdom. Proper management is required to achieve objectives and business goals of
company. Here are various functions of firm and their relations in attaining objectives of
business:

Human Resource Management
HRM is most significant body of organisation function which handle the processes
related to personnel of company as well as build a relation between both employer and
employee through managing flow of communication. This is responsible for hiring, selecting,
training and development, compensation including entities such as HR Manager, hiring officer
etc.
HRM of marks and Spencer is important part of whole organisational structure as it
handles and monitors affairs related to human resources and stimulate them. They are
responsible for hiring right person for the specific job profile which help in increasing the overall
productivity and reduce issues and conflicts from company (Boons and et. al., 2013). These
indirectly affects on the services and quality of enterprise help in attaining the objectives of
business of respected company.
Source 1: Different challenges faced by the Project Manager when working within the
alternative organisational structures used to implement projects, 2014
Finance
Finance department handle the records the income and profits and management of
financial assets. This includes two individuals in which first is accountant who document entire
expenditures and income status of enterprise and other is financial manager who designs budgets

and other allocation of capital in balanced way as well as manage the funds and sponsors
(Trkman, 2010).
The department of finance is inter related with the business objectives as it is the major
assets which company aim for. Proper allocation and balance used of financial resources can
helps in increasing revenues as well as squandering of money. As M&S is largest organisation
which is expanded in various place, this departments helps in recording entire data and
information of all expenditure and determines the budget for each and every stores of it which
help in attaining the major business objectives of referred enterprise.
Management
Administration departments refer to the clerical activities that avail in managing
consumer grievance, protecting departments and recording the reports of consumers and other
work. This is the main department which work to manage the entire activities occur in
organisation. This is related to consumer satisfaction and solution of issues and conflicts of
render gratification. Major goal of Marks and Spencer is to satisfy consumer and provide them
best quality products and services which is attempted by the help of this department.
Sales and Marketing
This function of Marks and Spencer handles activities which is related with marketing,
sales and promotions of services and products of company (Briggs and Grisaffe, 2010). This is
duty of this department to implement effective strategies to gain the sales amounts and revenues
as well as create a unique recognition of company in market. This industry help in accomplishing
the objectives of business which is providing consumer best services and expanding the business
that is attained with the help of it.
TASK 3
P4 Positive and negative impact of Macro environment on Business operations
Business environment of an organisation impact on the function and development of
enterprise in many ways which can be negative or positive depend on the situation and
circumstances. It includes two types of surroundings i.e. is macro and micro. Marks and Spencer
is highly influenced with the external environment of company which includes various factors
including political, social, technical, legal, environmental and economical. This can be analyse
through the help of PESTLE analysis which have been discussed as below:

Political This impact on the micro factors of Marks and Spencer through
forming new legislations and laws. The government of United
Kingdom have introduced a new taxation policy in order to
strengthen their economical condition. This have mostly
impacted on larger organisations which have increased their
pay rates. This have decreased the purchasing power of
consumers which created a decrement in the sales of products
and services of company. This phase have no led company
toward development.
Economical The economical condition of organisation have a great impact
on company's functioning (Brinckmann, Grichnik and Kapsa,
2010). United Kingdom is facing various issues in regard of
economic because of crisis situation which is occurring in the
country. This have created more unemployment, decrease in
purchasing power as well as lessen the consumer amount of
company leading to a great loss in revenues.
Legal The internal system of organisation have been influenced by
the new laws and legislation which is implied by the state.
Some of the laws are made for the benefit of worker of
company but some of those which is made in favour of country
benefit are not advantageous for both the consumers as well as
enterprise itself creating a situation of inflation.
Technological Now the world trade is going more advanced and digitalised so
Marks and Spencer requires in order to grow and develop in
competitive market (Bryman and Bell, 2015). The company
have adopted new technology of Online shopping which have
raised the sales of its services and products. Also the activities
and management have become more advanced as well as self
pay facility have created convenience for consumers. Proper
training and development is operated or organised which is one

improving point of enterprise.
Social Elements of society influence the outcome of enterprise so as
M&S's. Market have now various competitors which are
providing same products and services in cheaper proves which
is decreasing the consumer base of company. The organisation
keep updating their interests and choices according to market
trends and choices which help them in flowing according to
industry and choices of consumers.
Environmental This involves elements related to environment such as
pollution, garbage production and many others. Undertaking
the factor into consideration (Teece, 2010). Company have
introduced its own green policy which is known as 'Plan A'
according which they would use more eco-friendly process for
production and distribution of services and products.
TASK 4
P5 Internal and External analysis of M&S
For analysing the elements of internal environment it is required to understand both
macro and micro study of Marks & Spencer (Cantwell, Dunning and Lundan, 2010). Internal
factors of company is interrelated with the external sources which impact and shapes the
strengths and weakness of organisation which have explained as below:

SWOT (Internal) Analysis of M&S
Strengths Weaknesses
 Value-added Quality:The company
render high quality of services and
products that is major strength of the
organisation.
 Customer Services: Organisation give
preference in providing best qualities
of services which strengthen
relationship with consumer and
clients (Carroll and Shabana, 2010).
 Trained Manager: They have more
trained manager in order to provide
best performance and suggestion to
their customers.
 Apparel lack segmentation: The
company, nowadays, is creating weak
consumer elimination of consumer
because brands is more preferences of
consumers.
 Stock Control: he company have weak
stock control management. SO if in case
of extra products and services, there is no
warehouses and storages managed by
enterprise.
 Waste Outlet Spaces: the company have
better space in their stores but there are
lesser use of them.
Opportunities Threats
 Internet technology: This technology
is used by the company to meet the
consumer with whom they are not
able to reach through physical stores.
This have render new trade
opportunities worldwide.
 Healthy Eating: The organisation
should look over penetration of
market such as provide food and
seating products to customer which
can render more development
opportunities to enterprise (Hamilton
and Webster, 2015).
 Strong competition: Organisation is
facing more and strong competition is
market such as Safeway, Asda, and Tesco
etc. They are also providing same
products in good quality.
 Alternation in Social Environment:
Changes in taste or interests of customer,
which is frequent is affecting the market
and company;s sales as it is not possible
to make changes so aggressively.

 Marketing Extending: Through
providing franchisee, the company
can expand its business and increase
their overall revenues also can sell
their shares for opening funds
opportunities.
Internal environment factors are affected by the elements of external environment which
determines the strength and weakness of M&S. Here are explained it affects macro environment:
Political Economic Social
Organisation has to abide the
the changes which is made by
British Government in health
ad safety.
This determines the rise
and decrease in the
income and overall
revenues of Marks and
Spencer (López-Gamero,
Molina-Azorín and
Claver-Cortés, 2011).
Alternation in public interests and
preferences can affect the company
mote positively as well a negatively.
Technological Legal Environmental
Through digital marketing
process, company have
facilitated help in gaining
more sales of products and
services which is the
consumer preference in
modern era.
Laws related to financial
and taxation policies have
impacted negatively on
the growth of Marks and
Spencer.
The company use more ecological
process which is positive aspects of
company which is called as “Plan
A” that have been appreciated by
critics as well.
P6 Interrelation of Strength and weakness with external Macro factors
Marks and Spencer is one of largest retailing company which render various types of
commodities in market. Proper administration and market analysis is required for manage the
sales ad functions of enterprise enables to achieve major objectives and goals. The external
environmental elements affects the positive and negative aspects of respected company. Here are

explained the interlink between the strengths and weakness of macro environment in determining
strengths and weaknesses:
Political Factors
The new taxation laws which is complied by state become the cause in decrease of sales
of Marks and Spencer because it have decreased the purchasing power of consumer. This have
increased the weakness of organisation (Schaltegger, Lüdeke-Freund and Hansen, 2012). But
crisis situation have increase the dependence of country employment on the large organisation
which have increased one of strength of enterprise.
Economical Factors
Factors of economy of nation have impacted on organisation negatively increasing one of
weakness of company after the introduction of taxation policy which is specially implied on the
large organisation so as M&S.
Social Factors
Marks and Spencer is organising the activities ad manufacturing the commodities
according to requirements of consumers which is one of strength of enterprise but the furious
alternation in trends of market have catered negative impact on enterprise.
Technological Factors
New technologies involvement such as digital and self paying system, online shopping
have catered drastic changes in sales amount of organisation which can consider one of the
strength of enterprise but untrained employee especially manager are weakness. Digital data
storage framework and more advanced technologies for manufacture of products are also gaining
the strength of organisation.
Legal Factors
Fair packaging and Labelling Act and new taxation policy execution have impacted on
the growth of organisation (Sharma and et. al., 2010). Taxation policy is not influencing
company's developing and decreasing the amount of sales of services and products but Fair
products Labelling act have helped company in creating better image of organisation among the
consumers.
Thus, these activities determines entire strengths and weakness of company which is
required to monitor and control for the development and growth of Marks and Spencer. With the