Business and the Business Environment: A Comprehensive Analysis

This report provides a comprehensive analysis of the business environment, exploring various organizational types, including private, public, and volunteer sectors. It uses Marks & Spencer as a case study for a private organization and discusses the scope, size, and functions of different organizational structures. The report delves into the positive and negative influences of the macro environment, utilizing PESTLE analysis to examine political, economic, social, and technological factors. Furthermore, it covers internal and external analysis to identify strengths and weaknesses and explains the interrelation of these factors within the context of macro environmental influences. The report also touches upon the key business functions such as finance, human resources, and marketing. This analysis aims to provide a clear understanding of how businesses operate within their environment and how they can respond to various challenges and opportunities.

Business and the
Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Justification of several purpose and types of an organization...............................................1
P2 Analyse the scope and size of several kind of organisations.................................................2
TASK 2............................................................................................................................................3
P3 Functions of various organisations........................................................................................3
TASK 3............................................................................................................................................5
P4 Positive and negative influence of macro environment.........................................................5
TASK 4 ...........................................................................................................................................6
P5 Internal and external analysis of an organisation to analyse the weakness and strength.......6
P6 Justify the interrelation of strength and weakness in the context of macro factors...............7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business environment is the combination of lots of internal and external factors like
customer's requirement, supply, expectations, management, activities, owners through the
government, innovative techniques, present trends in the market and economic changes etc. on
the basis of this companies can get affected in a positive way. With the help of this they can get
idea that how they are working and how they are affecting other people within the working
environment (Andersson, Forsgren and Holm, 2015). Along with this it's helps in order to
analyse the opportunities of business by observing the all growth and profitability of an
organisation. This present report is based on the, private, public and volunteer sector wherein,
Marks and Spencer taken as a private organisation, which is the retail industry and was founded
in the year of 1884 by Michael Marks. Further discussion will be covered three various kind of
organisations & their distinct purposes. To identifying the several kind of organization on the
behalf of legal structure, size, scope and so on. At last, it will covered strength and weaknesses
along with the macro factors.
TASK 1
P1 Justification of several purpose and types of an organization.
In the present context, there are various kind of organisations which all are having
different structure, size and scope within the market in order to perform well and grab the future
goals effectively. There are private, public and volunteer sort of organisations, are given below:
Private organisation: This sort of organisations are generally includes in the several
businesses which are not operated and owned by the government. In reference to the Marks and
Spencer, as it is a retailing private organisation who operates their 959 stores across the globe.
Along with this it specialises in the higher quality of clothing, food products and home products
as well. On the basis of this it is noticed on the London Stock Exchange. The main aim of this
organisation is to make their customer's happy with the attractive pricing strategy. By using this
effective concept they are always able to gain more profits and grab opportunities for future
within the marketplace.
Public organisation: This type of organisations are depends on the government sector
and these organisations are similar to voluntary sectors in order to develop higher revenue.
According to the legal structure, all organisations are required to make effective financial reports
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in order to follow governmental rules and regulation that help to achieve more profits in a proper
Andersson, U., Forsgren, M. and Holm, U., 2015way. In context with National Health Services,
it was formed in the year of 1948. it is properly operated by the health and social care department
in which they perform their activity in a well manner. It is the world's largest health and social
care organisation who always manage their policies, funds within the country's law. The main
aim of this organisation is to develop more services for their customer's. As it is operating their
services under the government's laws and legislations so that they can easily achieve their profit
goals effectively.
Voluntary organisation: This type of organisation comes under the not profit business
like NGO'S etc. who always gives better services in the society. In order words this can be said
that, organisations are not working to earn profit infect provide services to the people. In regards
with Oxfam is is the charitable organisation which remove the poverty from the globe. The main
purpose of this organisation is to make world happy by removing poorness. By using this
scenario people can live happily and get full support from Oxfam. Along with this, it perform
their functions on the primary sector to give security for those people who really want in their
life.
Therefore, this organisation applying several kind of legal structure such as incorporated
association, trust, industrial and provident society. Wherein, Trust can be defined as the one or
two people who works together and generate faith to manage fund in order to make effective
community in welfare (Babu, 2012). That's why these kind of organisations are important for
society and people who want help from such kind of organisations.
P2 Analyse the scope and size of several kind of organisations.
Size and scope only depends on the organisation in which every business elaborate their
key elements in order to expand within the marketplace. For the better understanding there are
three kind of organisations with various size and scope. Those are listed below:
Marks and Spencer: It is the world's largest retailing organisation in the UK which was
established by the Michael Marks. The main purpose and objective of this organisation is to
develop awareness in consumer's mind by giving them effective pricing strategy in an
appropriate manner.
Size and scope: As M&S currently operating 959 stores within the UK along with this
having 615 sell food in a proper way. That's why they have lot of scope in the market so that they
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can easily expand their market. They have good size of their stores and have sufficient fund that
defines their value in the market.
NHS: This is the part of public organisation which always provides different types of
social and health care services in order to make their customer's happy in an appropriate manner.
It gives their services globally to dental care and optical care treatment in a proper way.
Therefore, this is the very famous and attractive organisation who always ready to helps other
people every time.
Size and scope: The size of this organisation is very broad as its develop higher quality
of affordable health care services and always reduce the difficulties in a proper way. Along with
this it also focuses on the financial conditions, organisation, health care system etc. wherein, the
scope of this organisation is also wide because this organisation have lot of fields of health care
services which maximises the standard of living and good community for people.
Oxfam: This organisation is always works for society and welfare in which people can
get sort of services so that they can live freely. As this organisation mainly reduces the poorness
from the society in a proper way. On the basis of this people can get higher motivation towards
their work effectively (Boons and Lüdeke-Freund, 2013).
Size and scope: The size of this organisation is not much huge because at medium level
its provide their services properly. Wherein. Scope of this organisation always based on their
targeted people in which are they can target more people and try to remove poverty in an
appropriate way so that they can develop good environment in the society.
TASK 2
P3 Functions of various organisations.
In present world every company operates their function in a proper way in order to
perform their business activities at different level so that they can run their business in a smooth
manner. Therefore, there are various sort of functions and they linked with organisational
objectives and structure. Along with this there are main functions which are followed by the
Marks and Spencer, Those are mentioned below:
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Finance: It is the most attractive term of business by which they can perform their
financial activities in an appropriate manner. With the help of this organisations are able to
manage their budget in a systematic way in order to achieve growth for future. In reference to the
Marks and Spencer, they are required large ample of amount so that they can easily run their
business in a smooth way for making their organisation as well as business condition more
effective. In order to increase the business of this organisation than they will need more fund to
invest in another place. Wherein, manager of this organisation is responsible to manage funds
and achieve their specific goals to increase higher profits and sales. That's why this structure is
interrelated with the specific objectives of an organisation.
Human resource department: Human resource management refers to the strategic
approach in order to design the business functions in a proper manner. It also helps companies to
recruit and select appropriate candidate. In reference to the M&S, as it is very wide organisation
and operate their function at hire level so that HR manager is responsible to select and recruit
people for their desire to fulfil vacant seat effectively (Dima, Grabara and Modrak, 2014). Now
the main aim of this structure is to manage selection and recruitment process of individuals in
order to classifying different knowledgable people at different level so that company can achieve
their goals on the behalf of employee's performance so that they both term can interrelate with
each other.
Marketing: Marketing is the very well known term which is used through the each and
every organisation that develops the customer's awareness towards their goods and services of an
organisation. According to the Marks and Spencer, as this organisation deals with the different
product like food products, clothes product and so on. Therefore, it is very important that
manager of this organisation should apply marketing strategies in order to make awareness by
which they can earn profit and able to increase effective revenue and profits in a proper way.
That's why manager has responsibilities to maximise their company's profit by using effective
marketing strategy which help a lot to achieve their objectives and goals at proper manner.
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TASK 3
P4 Positive and negative influence of macro environment.
Macro Environment: It is the combination of various sort of external factors which all
are considered in order to develop effective decision for the future opportunities. These features
can be identifies the PESTLE analysis, which are given below:
Political environment: These kind of factors are generally involves in the few aspects
like laws and legislations, tax rates and so on. All these functions are owned by the government.
In regards with M&S, as they are operating their business functions globally in which political
environment affects them in order to implement their new ideas to accomplish their customer's
needs.
Positive: It is helpful for M&S, just because it's helps them to increase their business by
using such effective aspects like low tax rates and political parties in a proper way.
Negative: It can be influence M&S, in a negative way due to the higher price on imported
goods within the several countries.
Economic environment: These types of factors are mainly includes in the different
factors such as cost, labour, capital, land, economic conditions, foreign exchange rates and so on.
In regards with M&S, they are increasing their profit by using this factor.
Positive: Whenever the buying power is going down than this factor always helps
company to achieve their customer's target in a proper way.
Negative: Some times, this factor can be ignored by the M&S so that they can face
problem in order to earn higher profit (Ehret, Kashyap and Wirtz, 2013).
Social environment: It is related with the demographic changes and improvements
which is based on different things like age, gender, taste, education, income level as well as
purchasing behaviour of consumers and so on. M&S mainly grab their customer's according to
their purchasing behaviour.
Positive: According to M&S, this factor impacts in a positive way because they selects
those customer's who are easily able to buy their product and can increase their profits perfectly.
Negative: Some time this factor can bring changes in the companies that negatively
impacts M&S and they are not able to achieve proper sales and revenue.
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Technological environment: In the present context, technological advancements is
going rapidly that's why it influence people in a proper way. According to the Marks and
Spencer with the help of this they prefer online websites for their customer's to achieve proper
goals and objectives.
Positive: With the help of using several technology advancements customer's can easily
purchase their product in a proper way.
Negative: Some times company is not able to opt new technologies so that it can reduces
their sales in present days.
Legal environment: According to this factor, it includes in several kind of governmental
laws and legislations which can be used by the any organisation in order to make proper decision
to run business smoothly. Now M&S has to follow these laws to make their operations effective.
Positive: By using all the laws and legislations M&S, can easily expand their business
within the UK and also impress people.
Negative: If M&S will not able to follow these kind of laws and legislation than they can
loose their customer's and not able to gain profits.
Environmental factor: As per this factor, all kind of rules and regulations are related
with the protection factors which is considered as the safety of an organisation which can be
influence people in a proper and positive way. In reference to the Marks and Spencer, they are
making their policies as per the culture of societies in order to influence them positively.
Positive: With the help of this environment M&S can get effective better safety plan in
order to develop effective market in a proper way (Hallward-Driemeier and Pritchett, 2015).
Negative: When company is not able to make any decision and follows the strict rules so
that they heavily impacted the people in a negative manner.
Now this can be said that, PESTEL analysis is very effective aspects for the Marks and
Spencer in order to make proper decision to achieve higher revenues and sales within the market
by using appropriate strategies in a proper way.
TASK 4
P5 Internal and external analysis of an organisation to analyse the weakness and strength.
For identifying the internal environment of the organisation SWOT analysis is the very
important thing for every organisation. With the help of this they can check their strength,
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weakness, opportunities and threats in order to improve themselves within the working place. In
reference to the M&S, swot analysis is listed below:
Strengths Weaknesses
 It is the higher recognition of brand
which has large number of outlets
across the globe as well as provide
good quality of products in a proper
way.
 Marks and Spencer has good market
image in front of the market and people
by having good financial aspects
properly.
 Due to the political instability, this
selected organisation losing their
customer's and sales as well.
 Some times M&S is not able to give
proper product for their customer's so
that its negatively impact on people and
reduce the firm's profit.
Opportunities Threats
 M&S has good sale and revenue in
their business so that they are able to
gain lots of future opportunities in a
proper way (Hilton and Platt, 2013).
 As this organisation selling their items
online as well so that their customer's
can get more confidence and able to
grab more customer's in future.
 There are huge number of competitors
such as, ZARA, Burberry, Forever 21
and so on. All these can be reduce the
firm's productivity effectively.
 UK government can always change
their policies so that it can be tough for
them to manage their working situation
according to the legal factors which is
going in the present scenario.
P6 Justify the interrelation of strength and weakness in the context of macro factors.
Strength and weakness in context to the external macro factors and it is mention as below:
Strength: According to the social factor, it can be identified that strength is always good
of Marks and Spencer because they always fulfil the consumer's demand in a proper manner. The
main aim of this organisation is to concentrate on the management system in order to supply
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better quality of goods and services to their consumer's so that they can get more attraction
towards this company's products.
Therefore, technological factors is always helps to company in order to achieve their
targets by using the innovative techniques in order to launch any kind of new product so that
consumer's can get idea about product and able to purchase them. With the help of this company
can easily enhance their sales and revenue in order to achieving the macro environment to
accomplish the goals and objectives.
Weakness: As Marks and Spencer operation their 969 stores within the globe in order to
deliver their product for everyone in the world. But somewhere, legal laws and legislation can be
affect the business situation so that they can not be able to target every customer's within the
world (Hockerts, 2015). This is because in the present world there are lots of barriers who always
comes to develop the problem in the company. Therefore, it is the weakness of this company.
That's why for an organisation is difficult to face lots of barriers within the competitive business
environment. In order to improve this situation company should follow the legal rules so that
they can satisfy their customer's in a proper way.
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CONCLUSION
From the above representative report it has been concluded that, business and the
business environment is the sum total of internal or external factors which includes in clients,
owners, individual, organisations and so on. In this present report several kinds or organisation
has been selected like private, public and volunteer who all are operates their business in various
situation. Along with this they are formed with the several size, scope and structure which affects
the environmental factor in a positive and negative way. In order to expand the macro business
environment than business owners have to analyse the actual impact of negative and positive
aspects to make proper decision for development of business. At last, SWOT is essential to
identifying the various strength, weakness and opportunities or threats for enhancing the firm's
growth effectively.
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