Business Environment Report: M&S and NHS Stakeholder Analysis

This report offers a comprehensive analysis of the business environments of Marks & Spencer (M&S), a public limited company, and the National Health Service (NHS), a public sector non-profit entity. The report begins by classifying these organizations based on their sector (private and public/non-profit) and outlines their respective purposes, stakeholders, and organizational structures. It details the influence of various stakeholders, including customers, employees, suppliers, government, and the public, on the objectives of each business. The report further explores the organizational structures of M&S and NHS, comparing their hierarchical and flat approaches, respectively, and how these structures facilitate their operations. Additionally, the report examines the impact of economic, political, legal, and social factors on the activities of both organizations, including challenges faced in different economic environments. Finally, the report evaluates how future changes in these external factors may influence the strategies of M&S and NHS, providing a holistic view of their business environments.

Submitted on
10.10.2016
Assignment title The Business Environment
In this assessment you will have
opportunities to provide evidence
against the following criteria.
Criteria
reference To achieve the criteria the evidence must show that
the learner is able to: Task no. Evidence
P1, P2, P3,
P4, M1, D1
P1 describe the type of business, purpose and ownership of two
contrasting businesses
P2 describe the different stakeholders who influence the purpose of two
contrasting businesses
P3 describe how two businesses are organised
P4 explain how their style of organisation helps them to fulfil their
purposes
M1 explain the points of view of different stakeholders seeking to
influence the aims and objectives of two contrasting organisations
D1 evaluate the influence different stakeholders exert in one organisation
1
P5, P6, M2,
M3, D2
P5 describe the influence of two contrasting economic environments on
business activities within a selected organisation.
P6 describe how political, legal and social factors are impacting upon the
business activities of the selected organisations and their stakeholders
M2 compare the challenges to selected business activities within a
selected organisation, in two different economic environments
M3 analyse how political, legal and social factors have
impacted on the two contrasting organisations
D2 evaluate how future changes in economic political,
legal and social factors, may impact on the strategy of a
specified organisation.
2
P=Pass
M= Merit
D= Distinction

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
P 1....................................................................................................................................................3
P 2................................................................................................................................................4
P 3....................................................................................................................................................5
P 4....................................................................................................................................................8
M 1...................................................................................................................................................9
D 1....................................................................................................................................................9
P 5..................................................................................................................................................10
P 6..................................................................................................................................................11
M 2.................................................................................................................................................12
M 3.................................................................................................................................................12
D 2..................................................................................................................................................12
CONCLUSION .............................................................................................................................13
REFERENCES .............................................................................................................................14

INTRODUCTION
The business environment includes analysis of both and external environment for the
organization. Under this report, there are different aspects of business environment will be
studied in the context of Markers and Spencer is public listed company and NHS which is a
public sector non-profit entity. This report covers different types of organization which are
categories into three sector such as public, private, non-profit company which make the profit
and productivity in the market. There are different stakeholders are influenced the fulfil ls the
business purpose and attaining the its objectives and goals. In this way, company also follows the
rules and regulation for maintaining the work culture and environment. Corporation develops the
proper structure which helps manager takes the effective decision.
P 1
There are different types of organization which are classified into three sector such as
private, public, non-profit companies. These types of business are established for making the
profit in different sector which are explained below:
Public organization- It is created by the government which are provided various services to
their community (Ditlev-Simonsen and Wenstøp, 2013). Public organization is focuses on
society welfare under which firm contribute the money for developing the economy. The purpose
of these business units are to minimize the gap between needs and demand. The sated units do
not operate to earn profit rather the stated units operates with the aim of earning profit in the
economy. NHS is a renowned and well established business unit operating successfully within
the market to minimize the health inequalities in the economy. The organization provides health
care services in every corner of UK in order to enhance health equality in the country. The aim
of the entity is not to earn profit but to infuse social welfare. NHS is a government owned unit,
the sources of funds are managed from tax revenue collected form the public.
Private organization: These organizations are owned by an individual with the main aim of
increasing profitability and return. The private organization includes sole proprietor, partnership,
Public companies etc. These organizations operates with the aim of earning profit and enhancing
its market share within the economy. Markers and Spencer is a public limited company operating
successfully in the global economy. It is a major British retailer specializing in fashion and food

retailing. It aim of the business is to expand its business and provide the different services to its
consumers (Fassin,2012). The business operates primarily to earn profitability and high market
share. In this context, the aim of the firm increasing the sales turnover and highly return. It
assists government for developing the economy and expanding its services for society welfare. It
affects performance of the organization and increase the share in retail industry. The
organizational structure is managed by multiple people involved. Shareholders plays a significant
role as they invested in the firm, hence they contribute in business decisions. The operations
focuses on attaining high growth to ensure shareholder’s growth along with.
P 2
Stakeholders are the group of people with an interest regarding success of an
organization. There are different types of stakeholders contributing in attaining the purpose of
the organization. The stakeholders for different mentioned businesses is discussed henceforth.
Marks and Spencer:
 Customer- Customer are interested in getting the information about the company
products, features, material, price etc which provided by the Markers and Spencer. In this
way, they also want to company for providing the highest quality products at the
competitive price under which firm produces as per them (Ho, Wang and Vitell, 2012). It
helps company to increase the sales turnover and market share in retail industry.
 Employees- Employees are key resources of the business. They help the company in
attaining the business objectives in a significant manner. Employees demand job
security, surety of the health and safety in the firm and wages which is followed by the
company (Bromley and Melton, 2012). M&S has managed a team of trained and
committed employees to attain the business objectives. They influence business
operations objectives through enhancing sales and growth for the firm.
 Suppliers- These are the people who help the company by supplying raw material,
inventory etc. to carry out the operations successfully. M&S has developed a significant
strategic partnership with its suppliers which has helped the company in attaining quality
products at cost effective prices.
 Trade unions: They represent employee in order to ensure that no discrimination is
carried out within employees while operating business operations. They are the

successful aspects of business units. M&S successfully adhere to the needs and demands
of trade unions and involve the \m in strategic decisions of business to attain high success
in the economy.
NHS
The major stakeholders of NHS includes: Government: NHS is owned and operated by the government administrates. The business
operations of the company are solely owned and operated by the public official. They
plays a significant role in managing business operations and making crucial policies and
decisions for the organization. Public: The entity develop services and strategies to ensure effective healthcare care
services for the public. Public influence the company in analyzing the needs and
demands. For example in the present era services for disabilities and cancer has increased
as public demand these services widely. Regulatory bodies: these stakeholders monitors business operations and develop
standards for operational and service related aspects. NHS ensures to keep regulatory
bodies such as WHO informed about services and operations. Staff members: They are the people who provide effective services to patients and attain
wide growth and success in the economy. NHS focuses on effectively training and
developing them to successfully attain business objective.
 Patients: These are the service users for NHS. The entity ensures to attain their needs and
demands in an effective and successful manner to attain high growth aspects in the
market.
P 3
There are different types of decision making by corporation in order to manage different
business situation. Here, two types of organization are taken into account which are Marks &
Spencer and NHS which put efforts to organize all business activities in order to increase overall
rate of return and social welfare in the economy.

Figure 1 Organization structure of M&S
Marks & Spencer has public ownership under which all decision are interfered by
government in case of expansion and other related decision. The above figure clearly represents
the organization structure of M&S which represents a clear distribution of roles and
responsibilities of the business. The company has adopted a tall structure in order to effectively
manage the business operations and attain high development aspects. This has helped the
business in ensuring quality of work and production. Though, corporation applies different kind
of strategies and action in order to increase expertise of personnel. It would be effective to
contribute towards success of the business as they can effectively retain customers for longer
time span (Wessels, 2012). At the same time effective strategies such as setting smart objectives,
motivation strategies and allocation of duties and resources as per the skills and knowledge of
personnel. However, business need to cope up with change because of by using appropriate
strategies such as motivation among personnel and increasing their satisfaction level by offering
them monetary and non-monetary reward. Marks & Spencer follows hierarchical structure
whereby lines of authority of formal lines of communication is ensured between workforce and
managers, It facilitates to complete the all allotted task in relatively less time span. It can be
critically evaluated that application of such kind of structure might affect business performance
changes accepted in slow manner.

Figure 2 Organizational structure of NHS
NHS uses effective approach under which business environment is scanned and
accordingly appropriate decision are taken to improve organizational services (Dickinson, 2013).
Furthermore, the organization use effective strategies such as empowerment of people, training
and development as well as development strategies organize operations and health care services
in very well manner. The most important way to manage the businesses is adopted of appropriate
structure so as to delegate duties and responsibility of workers in an effectual manner (Bracci
and lauran, 2013). NHS as the diagram states, has adopted a structured means of organizational
measures which helps the company in creating well defined means of development (Ahmad and
et.al, 2010). The business adopt flat structure at different regions for different areas which helps
in effectively focusing in attaining the objectives and develop high creativity and motivation
within employees. The working aspects of the entity are clear and simple which helps in widely
developing public welfare services in health care sector.
P 4
Marks & Spencer uses hierarchical structure under which workforce might face issue
related to communication because everything is decided at top level (Al-Najjar, 2012). This issue

might affect performance of business and accordingly workforce may not feel satisfied by
working in the respective organization. However, NHS follow effective approach under which
workforce are provided clear information related to their task and duties so they can effective
contribute towards growth of the business. However, both corporation take strategic decision in
accordance with business objective and organizational missions (Baldwin and Scott, 2013).
M&S make it possible for them to create competitive edge in the term of higher rate of return
and better customer base.
The functional areas and objectives are effectively attained by integrating the business
operations in a significant manner. M&S has adopted the approach where functional areas of the
business focuses on attaining the business objectives in a structured manner. Different
departments of the organization works in coordinated manner to attain the business objectives
significantly. For example marketing sales and R&D team of the business collectively works to
analyses the changing trends and needs of the business. In addition functional structure of the
company works significantly in creating a well-defined growth measure within the market.
SMART objectives are set for the business so as to accomplish the set targets on right time. At
this juncture, both corporation set specific target and accordingly arrange for the necessary
resources which turn it becomes feasible to ensure better performance of the business in the
marketplace. Apart from this, training and development activities are conducted in order to
increase expertise of personnel wherein they are provided new knowledge in diverse field. It
helps to meet expectation of different buyers and protect their right by offering them good
quality of products and services (Yu and Ramanathan, 2012).
NHS on the other hand has developed a strategy to create high impact on public health
and welfare. The stated entity has collaborated with different healthcare institutes and bodies for
attaining the business objectives efficiently. Every individual unit works as a single operating
unit within the market. In order to effectively attain the business objectives within the market.
The major aim of the company is to enhance public welfare. This strategy is effectively attained
by the stated unit within the market. Furthermore, Apart from this, adoption of appropriate kind
of structure proves to be effective for gaining competitive edge because all activities will work
smoothly so that accordingly business. In addition to this, both corporation uses strategic
planning so that overall aim and objectives are broken down into smaller parts through which it

become feasible to resolve all issues. However, challenges faced by business are taken into
account and they are resolved by active participation of personnel (Hayek, 2012). Therefore,
these different style of organizing busies facilitate to ensure long run survival with increased rate
of return.
M 1
There are different types of stakeholders who works upon to influence the aims and
objectives of two business. The major stakeholders of the business includes consumers, buyers,
suppliers, investors, suppliers and regulatory bodies as well. Consumers are the target group for
the businesses. The selected units have different influence of consumers. M&S focuses on
attaining consumer needs to attain competitive edge in the market while for NHS patients
focuses on analyzing the health care needs and develop effective services to outreach maximum
patients. Suppliers influence the performance of the Markers and Spencer because support the
procurement services of the business. Quality supply of raw materials helps in enhancing
consumer satisfaction. Suppliers for NHS however are the clinics, hospitals and professional who
provide the services for public welfare. Effective services helps entity in being closer to the
objectives. Government monitors the working of the organization so as to check the rules and
regulation followed by the business (Kazadi, Lievens and Mahr, 2016). Further, it aims that
increase the tax revenue and impact on employment opportunities with in industry. Government
also help in fulfilling the goals and objectives. However, business need to ensure compliance of
all set regulation and rules whereby ethical standard can be maintained.
D 1
The stakeholders are expert in the Markers and Spencer for developing the economy and
fulfilling the goals and objectives. Government is expert in maintaining environmental security
and social responsible in the organization (Kuri, 2014). It plays significant role in both
mentioned units. In this way, company follows rules and regulation for maintaining the work
environment and manage work force in the firm. Customer is expert in generating the income in
the organization and buy the products and services. It affects performance of the corporation and
increasing the market share. The business operations of M&S are based on consumer needs and
demands while for NHS the services are planned in such a manner that maximum needs of the

consumers can be attained. Public play a significant role for NHS as it works for public welfare
however for M&S public is the prospective buyers in the future.
P 5
The contentious changes in the economic environment have direct impact on day to day
operation of the organization. It includes economic growth, recession, bank rate, interest rate and
GDP etc under which if these factors are increased and decreased so directly affects work based
activities in the Markers and Spencer. Here now discuss about the two economic environment
that effect Markers and Spencer, economic growth and the interest rate (Sandaruwan, 2012).
These factors are given below:
Economic growth- Economic growth is the increase in the inflation like market value of the
good and services is produced by the economy. An economic growth is the good for the Marks
and Spencer because manager expand their production and supply chain. It helps manager easily
manage their day to day activities and expand their production (Ditlev-Simonsen and Wenstøp,
2013). Furthermore, company opens the number of outlets in the city under which helps
consumer easily approach and buy the products. While on the other side, there is an impact of
economic factors on the NHS including the increase in the profits and losses of them so that
should be analyzed and required changes should be implemented. In case of Marks and Spencer,
it affects performance of the organization because increase the profitability and market share in
retail industry. Furthermore, during the economic boom people trend to buy the products as well
as luxuries under which company also able to provide the products at the reasonable price. In
addition to this, there is an influence from the government on NHS at a large extent as managers
are stressed with the continuous changes while in case of Marks and Spencer government set
regulations for the company such as risk assessment and risk control and they must follow all of
them. It helps customer attract towards the cash vouchers and offers are provided by the firm
(Fassin, 2012). It affects performance of the corporation because clients and customers are
satisfied his services is render by the employees. As the result, gain the profitability and
productivity in retail sector.
Interest rate- The current interest rates can affects a company like Markers and Spencer because
if company borrows the loan from the bank under which they charged the interest rate is high. In
this way, company not able to expand their ventures and production under which increase the

price of the products. It affects community because they not able to purchases the products
during the recession. The negative impact performance of the organization and decline the sales
turnover and its productivity (Hamilton and Webster, 2015). Apart from this, If interest rate is
decreased so direct impact on price because company can decide the equal price of the product.
P 6
The political, legal, social factors are affected business activities and stakeholder of the
Markers and Spencer. Here discuss about the political factor, it includes the large number of
policy and regulatory frameworks is generated by government that must be followed by an
organization to ensure smooth operations (Harrison, 2013). In this way, Markers and Spencer
follows tax policy under which employees pay the amount of tax to the government. This will
helps for developing the economy and expanding the various services in different sectors. It
affects performance of the organization and day to day activities of the organization.
Furthermore, firm has collect the information about the money and tax amount. Apart from this,
an organization follows rules and regulatory framework related to the health and safety of the
employees under which employees are feel safe in the organization (Ho, Wang and Vitell, 2012).
It assists human resources to focuses on the work and effectively manage their work and
attaining the business goals.
Legislation are changed in time to time under which legal factor has impact on the work
based activities. Markers and Spencer carry out the legislation and timely updated under which
maintains the business environment. In this way, an organization focuses on the overcome unfair
practices in the company (Dickinson, 2013). Furthermore, corporation adopts the legal
legislation under which employees behave in ideal manner and perform in well manner of the
work. It affects environment of the firm because all these activities are followed in right manner
which will maintain the work environment.
Social factor has impact on business activities and stakeholder under which company
focuses on the community welfare. It includes attitude, knowledge, belief, career, under which
company social factors are also affects the company. An organization focuses on customers'
needs and demands while designing its value proposition. This in turn helps the organization in
providing better quality of products at reasonable price. The social and cultural pattern assists in
formulating a positive work culture in the organization. Furthermore, Markers and Spencer

emphasizes on conducting its operations in coordination with cultural prevailing within society.
This in turn helps the organization in gaining a positive brand image as well as increasing the
productivity..
M 2
Markers and Spencer faces many challenges in the economic under which economic
growth is good for company can expand their product variety under which it directly impact on
consumer demand. They want more products accordingly organization opens the number of
outlets and increase the supply chain which will maintain the brand image in UK market. Apart
from this, if economic growth is bad under which firm is increased the product price. It affects
demand of the customers because interest rates are also high (Bracci and lauran, 2013).
Henceforth, company produces limited product and the goods rates is also high so consume
demand was decrease. Moreover, firm can maintain the liquidity and manage their products price
when interest rate is high or low. In order to change the economic condition has direct impact on
the NHS and Marks and Spencer under which good condition in the economy. It affects the
activities of the organization because they produces the more products and services. As per this,
it helps consumer to increases the purchasing power
M3
There are legal, political and social factor have impact on the Markers and Spencer and
John Lewis. In this way, company follows rules and regulation for maintaining the business
environment and managing the work based activities. An organization focuses on society welfare
and reduces the unfair practices at the work place (Al-Najjar, 2012). By using the consumer
protection act, manager provide the best services to their consumer with using the fresh material.
It affects performance of the NHS and increasing the productivity of the firm. Apart from this,
social factor affects corporation activities and production because firm produces the products and
services as per consumer demand and some improvement as per them. It helps manager to
manage the work culture in the firm and coordinate with each other. The great impact of legal ,
political and social factor on the NHS and Marks and Spence. Organization formulates the
policy and rules as per the society under which includes the education, beliefs culture and values.
In this way, company follows the rules and regulation for maintaining the employees behave at