HND Business Management: Business and Business Environment Report

This report provides a comprehensive analysis of the business environment, focusing on Marks and Spencer (M&S) as a profit-based organization, the NHS as a non-profit organization, and Oxfam as a non-governmental organization (NGO). The report explores different types of organizations, their business purposes, and the supply of goods and services. It delves into the size and scope of these organizations, examining market share, profit, growth, and sustainability. Furthermore, the report analyzes organizational structures and functions, including marketing, finance, and production departments. A PESTLE analysis is conducted to identify the positive and negative impacts of macro-environmental factors in the UK. Additionally, SWOT and Porter's Five Forces analyses are applied to a UK supermarket to assess its internal and external environments. The report concludes with a summary of the findings and references used.

HND Business Management
Business and Business
Environment

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
Main Body.......................................................................................................................................1
P1 Different type of organization’s on basis of profit not for profit and NGO’s and their
business purpose with supplying of goods and services..............................................................1
Size and scope of different types of organizations with market and profit share, growth and
sustainability................................................................................................................................2
P3 Organisational structure and functions...................................................................................3
P4. PESTLE analysis and identify positive and negative impact of the macro environment in
UK................................................................................................................................................4
Swot analysis and porter five force analysis of UK supermarket................................................6
Conclusion.......................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
A business is deeply influenced by the working environment in which it operates. The
internal and external working environment plays a very deep and crucial role in handling of wide
range of business operations that will help in effective rise in its scope and efficiency. The better
micro and macro environmental factors will help in effective growth and development of the
company in a better way (Armstrong and et.al, 2015). Besides this, it will support the rise in
operational capabilities of the organization and help in meeting the requirements in a better way.
For the report, Marks and Spencer’s (M & S) is been taken as the organization of context.
Besides this, NHS is taken as Non profitable organization and Oxfam is been considered as a
Non-governmental organization (NGO). The report will lay emphasis on different types of
organizations with context to their business purpose and supply of goods and services. Also, the
difference between various kinds of organizations are been taken in consideration with their
market share, profit, growth and sustainability. Apart from this, different kind of structures and
complexities with organization mission and objectives are been shared.
Other than this, the PESTLE for identification of positive and negative impacts of Macro
environmental factors is been performed. The external and internal assessment of retail firms is
ben done and interrelation of their strength and weaknesses with external factors is been
evaluated (Drucker, 2017).
Main Body
P1 Different type of organization’s on basis of profit not for profit and NGO’s and their business
purpose with supplying of goods and services.
There are various sorts of organizations that are operational in market and perform a wide
range of business operations and handle the functionality of the organization in a better way.
This will help in better handling of wide range of business functions that will help in a suitable
rise in the capabilities of the organization. These handling of the organization will lay a very
deep impact on their business purposes and will have an effective supply of goods and services.
Some major firms that are been taken in consideration are:
Profit based organization: they work mainly for the profit and their main aim is to gain a
good market share and effective revenue generation. Their main source of investment is the
money invested by their stake holders, investors and their cash in hand. This will help in better
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handling of operations which would lead in a better management of a wide range of operations.
They use the gained revenue to expand and promote their services and products and gain a good
customer satisfaction level by providing the high quality product and services to their customers
in return of a set up cost (Hillary, 2017).They rarely get the governmental support. For Instance,
these involve the organization working in retail, manufacturing sector etc. For example Marks
and Spencer’s
Non-governmental organization: Also known as NGO this organization works for the
better bent of society and gets the proper support on financial and operational front from the
government. Their major role is to provide better services to their customers or buyers. Such
organizations are funded by government and get their products and services from them. This will
involve the proper use of resources that are been possessed by them in a very effective manner.
They don’t gain or use the profit or revenue gained by them for their personal operations. They
mainly work in the health and social care sector and provide a good quality of services to their
users or clients. For example Oxfam, etc.
Not for profit organization: They work for a specific purpose and thus look after the better
handling of vast range of operations that are been followed by the business or operational entity
(Botha, Kourie and Snyman, 2014). They mainly work for a specific purpose and thus look after
the better handling of operations. They get their functional resources from either the volunteers
or the other supportive firms in form of donation and charity. They work for betterment of their
operations and use the resources and gains to develop effective and innovative products to meet
the requirements of people. These are not governed or controlled by a governmental body and
usually work independently. For example Oxfam UK, etc
Size and scope of different types of organizations with market and profit share, growth and
sustainability
There are various organisations that are organisation's in the market on the basis of
various scope and size. This helps in the better differentiation and handling of the operation in a
better way. Organizations of varied size are operating in market such as:
Micro level: These are been owned by a single individual and thus has a limited scope and
functionality. The profit gained is been used by the individual for its personal growth and
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development purposes. The limited scope makes it difficult for them to expand and they have a
constrained work force. For example, a grocery shop, salon etc.
Small size: they are bigger than as compared to that of micro level but are smaller in
comparison to medium firms they work on local level but has a scope to expand on interstate
level. The market share and profit they enjoy is used to manage their functionalities and work
forces. Besides this, they have a good sustainability in market as they are major job providers in
a market. For example, schools, educational institutions etc.
Medium sized: they have a scope bigger than that of smaller firm but are comparatively
little than larger firms. They have the vast potential and scope to expand and improve their
functionality. They can be operating on local and interstate level but can function on
international level i.e. in their neighboring countries. Along with small level firms, they operate
in many sectors to cater maximum number of operations. Their main aim is to generate high
level of revenue and attain a better and sustainable market growth. Their profit margin is used to
expand their functionality. For example, retail firms like Marks and Spencer’s etc.
Large level: they have the highest of scope and production capabilities. Their main aim is
to meet the operational requirements of the organization in a better way. They mainly work in
service and manufacturing sector and have vast budgeting and revenue generation (Hair Jr. and
et.al., 2015). They cater the customers on wider level and seek the support from other
organization’s and enterprises. Also, they have high level of sustainability that helps them to
perform well in market. For example, aviation industry etc.
The major difference between them is the scope of operations and the financial resources
that are been utilized by the organization. The Micro level firm work independently while the
large organization's are dependent on small and medium size enterprise to provide them with
proper raw material and essential work force to carry out their manufacturing operations.
P3 Organisational structure and functions
In respect to make effective functioning, there are different types of functions and
operations operated by Marks and Spencer. All department of the business are interrelated with
each other that help to focus on the innovations and creativity at workplace. It will help to focus
on different perspective that attains more desired objectives in the business environment (Aithal,
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Shailashree and Kumar, 2016). In the international areas of the world, these aspects help to make
systematic performances as well. Therefore, following department consider operations and
functions that are related with each other:
Marketing department: Marketing department play very important role that is related
with all other activities and functions of the whole business. This is because; marketing strategies
and capabilities consider positive impact to focus on the innovations and creativity at workplace.
In this aspect, advertisement, sales promotion, etc. functions operated by the department to
increase their sales. As results, it is directly link with production department of Marks and
Spencer where products and services have been made to attract customers. In addition to this,
sales person also require to market the products and services so that it depict that this department
consider some advantages to HR department to recruit people in the business. Marketing
department related with the all other functional areas because they considered all activities of
chosen business to focus on the effective working. For instance, they hire new skilled employees
at workplace with consider marketing activities.
Finance department: Furthermore, finance department consider arrangement of fund and
resources to target different people in the business. This is because, without finance production
department, HR department, etc. never run. All activities of Marks and Spencer related with
finance. Therefore, in this aspect operations and functions carried to focus on all activities and
tasks as well. It will help to attain more systematic results at workplace. As results,
advertisement, marketing, production, etc. activities considered with the business to develop
more profits and revenue at workplace. Finance department consider their part to focus on the
arrangement of fund to cope up with different aspects at workplace. It will assists to look upon
the systematic work performance at workplace.
Account department: In addition to this, account department considered arrangement and
management of business with matching assets and liabilities. This is because, the organisation
consider several operations on credit basis. As results, it is essential to look upon the
arrangement of the proper fund (Hair Jr. and et.al., 2015). In this regard, proper consideration
implemented that helps to attain more significant results in Marks and Spencer. Furthermore, it
also concentrate on the attain more profits and revenue through maintain proper records of
financial data. As results, effectiveness will be increasing to make more concentration on the
business. Account department of the selected business carry different functions to match the
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resources and manage accounts. With the help of proper management, accounting, etc. elements
need to consider in systematic manner.
Production department: Production department consider their outcomes and results to
develop creativity. In this regard, as per fund availability they need to produce products. So that
it can be depict that in Marks and Spencer products are produces on the basis of market demand.
In addition to this, it is also related with the marketing department which consider functions and
operations to produce systematic results at workplace. Production department relate their
operations with marketing department. This is because, they produce products and services as
per the market demand and needs.
P4. PESTLE analysis and identify positive and negative impact of the macro environment in UK
In the UK, there are different factors create impact on the business performances and
outcomes. In this regard, several activities designed by Marks and Spencer which create impact
on its performances and effectiveness. However, external elements of the market create major
impact on business environment. They are as follows:
Political factors: In the UK political factors highly create impact because there is political
instability exists that consider major impact on the business performances. In this consideration,
there are different activities which operated by Marks and Spencer affected due to changes in the
government rules and regulations. Furthermore, it is important to focus on the all relevant
activities through enterprise will able to deal with the innovative elements easily. For instance,
political stability in the country create positive impact on chosen business. However, terrorism,
government regimes, etc. elements generally consider big impact.
Economic factors: Furthermore, economic factors consider growth of the country. As
results, when Marks and Spencer gets more benefits it also creates positive impact on the
functions and operations. In this regard, trade policy, inflation, etc. elements create impact on the
chosen business operations and functions. There are several changes occurs in the policies and
inflation so that it create impact on the business performances and outcomes. With consider
focus on these aspects, the selected business will able to make effective functioning (Hair Jr. and
et.al., 2015). Furthermore, the selected business need to consider proper management of taxation,
inflation rate, etc. which consider in the economic factors.
Social factors: Customer demand and requirements continuously change. As results,
Marks and Spencer need to make changes in their business and operations accordingly. In this
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regard, it is important to deals with the some benefits that consider with the business aspects and
development as well. The chosen enterprise needs to focus on the customer demand and
requirement and they design their products and services. It will help to develop more
effectiveness at workplace easily. With concentration on the desired results and outcomes, the
company need to make their products at workplace. For example, the chosen business need to
concentrate on the basis of lifestyle trends, demographic elements, etc. concentration required to
make changes in the functions and operations.
Technological factors: Furthermore, advance technology in Marks and Spencer assists to
develop more systematic results at workplace. In this way, innovations and unique feature
addition helps to maintain creativity at business environment. With this consideration, the chosen
business has responsibility to add some new features in their products and services at workplace.
In order to develop more systematic work performances goals and objectives of the business
could be attain (Aithal, Shailashree and Kumar, 2016). The selected enterprise need to conduct
research so that they are able to concentrate on the new functioning with development of aims
and objectives.
Legal factors: In addition to this, Marks and Spencer need to concentrate on the following
all legal rules and regulations. This is because, every country set their certain legal aspects which
helps to protect the country to attain desired results. In this manner, systematic working system
will be done when the cited firm adopted all legal rules and regulations. Furthermore, the
company need to adopt some creativity and implement functions to make relevant outcomes at
workplace. In this manner, effectiveness also developed with focusing in the development of the
enterprise. In the legal factors, Marks and Spencer need to concentrate on following health and
safety regulations, taxes regulations, etc.
Environmental factors: In environmental consideration, the selected business needs to
focus on the activities that never harm to the environment where the chosen enterprise operates.
In this regard, Marks and Spencer adopted green environment activities through they are
protected their environment in significant manner. As results, they will able to make sure
effectiveness will be attaining in systematic manner at workplace. Furthermore, quality and
standard of the food products maintain so that production system never harm to environment.
Different kinds of environment stability need to be measure by chosen business so that they are
conscious about weather conditions, earthquake, etc.
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Swot analysis and porter five force analysis of UK supermarket.
SWOT analysis
Strength
One of the main strength of the Marks and
Spencer is that it sales quality products to its
customers.
It provides wide range of products to both
men and women’s.
Weakness
There are many competitors in the
supermarket industry which is one of the
great weaknesses of Marks and Spencer.
Due to high price most of the people avoid
purchase from this country.
Opportunities
One of the opportunities that Marks and
Spencer have is related to new technology.
Company can focus in innovating new
products that can easily grab attention of
customers
Threats
Competitors are one of the main threat of
Marks and Spencer
The company can face issues while
expanding its business in emerging market.
Porter five forces analysis of UK supermarket
The impact of porter five forces can be analysed in the following way:
Bargaining power of suppliers
In a basic need industry, clients have a genuinely high power. Amid the current money related
emergency, customers are extremely value delicate and pulled in towards the low costs,
furthermore with the accessibility of online retail shopping, the costs of items are effortlessly
analyzed and hence chosen (Dobbs, 2014). Items have a slight separation and are more
institutionalized, the exchanging cost is low and the purchasers can without much of a stretch
change starting with one brand then onto the next. Marks and Spencer have low risk related to
the bargaining power of supplier as because there are many suppliers company can deal with
anyone.
Bargaining power of buyers
In a supermarket industry, customers have a really high power. In the midst of the present cash
related crisis clients are to great degree esteem fragile and pulled in towards the low expenses,
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besides with the availability of online retail shopping, the expenses of things are easily examined
and subsequently picked (Bell and Rochford, 2016). Things have a slight partition and are more
organized, the trading cost is low and the buyers can without quite a bit of an extend change
beginning with one brand then onto the following. There are many companies operating in retail
sector which provide high bargaining power to customers. If marks and Spencer kept its price
high then it may be possible customer switch to another brand.
Threat of new entrants
The UK retail section has constantly been in the midst of antagonistic subjects
concerning organization presentation, overall rivalry, esteem wars and adjustments in plan. In
this entire circumstance it is winding up to a great degree troublesome for the creating players to
ascend as a strong player in the market and make their survival possible. There is threat of new
entry is lower because of the tough competition. Therefore, Marks and Spencer do not have any
fear of new entrants.
Threat of substitutes
General store offers a wide extent of thing and commitments including bread kitchens, shops,
wine and spirits stores, bloom pros, attire, medicate stores, books, CDs, DVDs, blooms, wine,
gifts and electrical items (Mathooko and Ogutu, 2015). In this different nature of business can't
anticipate customers to change beginning with one brand then onto the following brand however
the uncommon quality and brightness can ask the customers to hold fast to a single brand for a
more drawn out time period. Threat of substitute if higher for Marks and Spencer as because
many companies sales similar product.
Rivalry among competitors
The intensity of centred rivalry in the food and grocery retail industry is incredibly high.
Contenders' experience is to seem, by all accounts, to be over the present philosophies in e-
following in agree to the changing weaknesses in online trade, customer business works on,
advancing correspondences, needs and demands, and so forth. In essential supply industry
contenders are to a great degree strong and they have been working in this industry for a drawn
out extends of time (Aithal, Shailashree and Kumar, 2016). There is tough competition in retail
sector due to which company face issues because of competitors. Marks and Spencer competitor
are prividng similar product which create barrier for the firm.
Strength and weakness interrelated with external macro factors.
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Strength and weakness of the firm is highly interrelated with external macro factors. There are
many political factors which can directly impact the way of working of the Marks and Spencer.
In order to deals with this situation, it is important for the firm to strictly follow all the rules and
regulation (Aithal, 2016). Along with this Marks and Spencer can use many new technologies
that will help in making innovative products and services for the customers. They can easily
reduce the cost and time with the use of new technologies and provide customers quality product.
Apart from this social factor also lead to impact the firm sale and profit. It is important for
company to conduct market research before making products and services. It will help in
fulfilling the needs and wants of customers on time. Macro factor such as environmental factors
greatly impact the firm strength. If company do not focus on making environmental friendly
product then it will become difficult for them to gain customers satisfaction and increase sales,
On the other side Marks and Spencer to focus on implementing health and safety policies for its
employees so that they can be retain for longer period of time. Competitor of Marks and Spencer
are using new technology due to which sales of the firm is decreasing. It is essential for Marks
and Spencer to use new technology which help in reducing the threat of competitors and new
entrants.
Conclusion
From the above report it is concluded that there are various types of firm which operates
their business market. Different companies have different structures and regulation. Non-profit
organization work for the benefits of customers and it lead to provide wide range of products and
services. Every company has some specific goals and objectives which they need to be
accomplished on time. Further it is concluded that, Company’s strength and weakness lead is
directly related with the macro factors, and new technologies that will help in making innovative
products and services for the customers. They can easily reduce the cost and time with the use of
new technologies and provide customers quality product. Apart from this social factor also lead
to impact the firm sale and profit.
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REFERENCES
Books and Journals
Armstrong, G.andet.al., 2015. Marketing: an introduction. Pearson Education.
Drucker, P.F., 2017. The Theory of the Business (Harvard Business Review Classics). Harvard
Business Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology.Elsevier.
Hair Jr, J.F. and et.al., 2015. Essentials of business research methods. Routledge.
Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Aithal, P.S., 2016. Study on ABCD analysis technique for business models, business strategies,
operating concepts & business systems. Browser Download This Paper.
Aithal, P.S., Shailashree, V.T. and Kumar, P.M., 2016. Application of ABCD Analysis
Framework on Private University System in India.
Bell, G.G. and Rochford, L., 2016. Rediscovering SWOT’s integrative nature: A new
understanding of an old framework. The International Journal of Management Education, 14(3),
pp.310-326.
Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in
Kenya. International Journal of Educational Management, 29(3), pp.334-354.
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