Comprehensive Business Environment Report: Marks and Spencer

This report provides a detailed analysis of the business environment, focusing on Marks and Spencer as a case study. It begins with an introduction to the business environment and its impact on organizational performance. The report then explores the types and purposes of private, public, and voluntary organizations, including their legal structures, with examples like Marks and Spencer, the NHS, and Oxfam. It examines the size and scope of various organizations, the interrelation between different organizational departments and their link to objectives. The report further delves into the positive and negative impacts of macro-environmental factors on businesses, as well as internal and external analyses of specific organizations, including the interrelation of strengths and weaknesses with macro-environmental factors. The report concludes with a summary of the key findings and provides references to support the analysis.

Business and Business
environment

Contents
INTRODUCTION ..........................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Types and Purpose of private, public and voluntary organisation and their legal structure...3
P2 The Size and scope of a range of various types of organizations...........................................7
TASK 2............................................................................................................................................8
P3 Interrelation between different organisational departments and their link to objectives........8
TASK 3..........................................................................................................................................10
P4: Positive and negative impact of macro environmental factors upon the business. ............10
TASK 4..........................................................................................................................................13
P5 Internal and external analysis of particular organizations....................................................13
P6: Interrelation of weakness and strengths with macro environmental factors.......................14
CONCLUSION .............................................................................................................................15
REFERENCES .............................................................................................................................17

INTRODUCTION
Business environment is considered as the sum total of internal as well as external factors that
directly influences the performance of business. Business environment is also refers as the
combination of various factors and forces which affects an organizational ability to maintain or
build an effective customers relationship. The concept of business environment is determined as
the most important aspect of an organization as the each activity of the firm is managed as per
the organized business plan. In this particular report Marks and Spencer is the selected firm,
which mainly deals n luxury food products, clothing and home products. This report contents the
study about the different type and purpose of the organizations, a proper description about the
size, scope and type of business are discussed. A clear vision about the internal as well as the
external factors that influences the performance of business in positive as well as negative
manner. The internal and external analysis can be done through analyzing the strength and
weaknesses of the firm in effective manner.
TASK 1
P1 Types and Purpose of private, public and voluntary organisation and their legal structure.
In this modern and competitive business era, organizations are work for attaining some
goals and objectives which are predetermined in nature. The major purpose of each small as well
as large business enterprises is to attaining high growth and profitability through satisfying the
needs and wants of people at market place. There are different kinds of organizations whose
purpose, scope and mission are different from each other in the terms of profit and service
aspects. The growth and development of small and large business organizations are connected
with the economic development of the country’s economy. The organizations are categorized
among three major types like public, voluntary and private business firm, that are described as
under:
Basis of
Comparison
For Profit NPO NGO

Meaning These kinds of organisations
are based on generating
more profit through offering
variety of services to their
potential customers. The
major purpose of this type
of firms is to attaining high
profitability by satisfying
customers needs.
This sort of
organisations is work
for social welfare in
these organisations is
not concern about the
profit.
It considered as a non
governing body which
are focused on offering
effective health care
facilities to the people.
In this volunteers
firms, NGO’s are
included.
Area of
Operations
It operates its business
activities as a large business
firm in terms of capturing a
wide area of market.
These organisations
are rare and work for
providing significant
growth.
This is large in nature.
Objectives The major objectives of the
firm are to gaining the
attention of customers by
offering variety of products
and services.
It is set up to
providing social
welfare services to the
people and works by
charity.
Their potential
objective is to
rendering proper
services to the people
in respect to reaching
at potential goals.
The purpose and the legal structure of the firms are described as under:
Public Sector organizations:
These sorts of organizations are concern on offering appropriate products and services to
the people without any consideration of profit and growth. These kinds of firms are work as
global level and widely operated and controlled by government bodies. National Health Services
is considered to be the popular public organisation within UK, the company is concerned on
offering health care services globally.
Purpose of NHS:

 Provide better or beneficial services to the needy individuals of society.
 Work for improving economic and social situations of public.
 Offering wide range of social insurance training facilities to patients.
Legal Structure:
 State government- In this organizations are needed to be follow all kinds of provision that
have been organized by the government and along with providing a proper management
and some of the other products within the market place as to economic development of
country.
 Local government- It is looking for essential elements that are required for the welfare of
local people.
 Central government- This segment helps to the functions that are specified by the
departments of state and central government bodies.
Private Sector:
In this the major motive of each small as well as large business enterprises is to attaining
higher profitability and growth through attracting large number of customers towards the
firm or its offered products and services. Marks and Spencer is a multinational retailer
organisation, which is founded in the year of 1884 and operates its business functions in
luxury food products, clothing’s and home items.
Purpose of Marks and Spencer:
 The significant purpose of M&S is to capturing a wide area of market by offering
variety of products and services to their customers. Generating higher profitability through attaining higher competitive edge within the
market place.
Legal Structure:

 Sole Proprietorship: It is the most popular form of business and these are controlled
and maintained by the individual owner who is lastly responsible for conducing the
activities of the firm.
 Partnership: In this two or more than two organizations or individual people are
connected through an agreement and share some common goals and objectives.
 Multinational company: This sort of organizations is operating their business
functions at large level and their headquarters are located in some specified countries.
In this kind of firms whole activities are handled by the main headquarters. Global Company: In this organizations are markets their wide range of products and
services in different geographical areas with a single brand name.
Voluntary firm:
This sort of firms is created by the group of people or volunteers that are come into a
specific agreement which is based on similar purpose. These kinds of organizations are work for
providing social services at the place of attaining profit or growth. These are also known as non-
profit firm. This sort of organizations needs permission from the government bodied before
conducting its operation in a country. Oxfam is a popular voluntary organisation in UK. The firm
has started its operations from the year of 1942 within UK.
Purpose of Oxfam:
 Concern on providing proper services as to eliminating poverty that are arises through
any kind of disaster.
 Focuses on saving living of people by offering required treatment and facilities.
Legal structure:
 Trust: This type of structure doesn't required membership and can be created by a group
of people.
 Association: In this people with common interest are involved who works for providing
services instead of profit.

P2 The Size and scope of a range of various types of organizations
Each business organisation has their own scope, size, vision and mission but their
purpose and aims are different from each other in terms of profit margin. In an organisation
stakeholders are considered to be the essential aspect which is effective in attainment of
organisational goals and objectives in proper manner. The size, scope, vision and mission of the
firm are described as below:
Marks and Spencer:
It is a privately owned multinational company which mainly works for attaining high
growth and profitability at market place. It is a largest retail firm which is owned and controlled
by individuals and partners. The company has its business operations all over the globe and has
around 84,939 employees who work for attaining high growth and profitability. The net income
of the firm is around £115.7 million.
Size: It is a large multinational retail organisation. The company majorly operates from it’s
headquarter which is in UK. The company has around 959 stores within UK and more that 1433
across the world.
Scope: The Company has grown so fast as to making changes in their policies and norms. The
potential growth of the firm was depend on the efforts of Michael Marks and Thomas Spencer.
The major scope of the firm is to attaining higher growth and profitability through capturing a
wide area of market.
Vision: As a leading retailer company Marks and Spencer wants to be on top and become the
major priority of their buyers. Thus for this company is majorly deals in luxury and high quality
products and services.
Mission: To convert their visitors into final buyers through grabbing their attention by satisfying
their needs and wants.
NHS(National Health Service): NHS is national medicinal services framework and it provides
compelling wellbeing related services to legitimate occupants of Britain with offering a few
administrations free for people and in this guests are involved.

Size: The NHS operates globally and provides health benefits of the people. The company has
around 1.5 million employees, who work for providing social wellbeing. The has around 111,127
dental doctors, 314966 health care takers and 18,862 staff members who are providing
ambulance and other services to the people.
Scope: The significant scope of the firm is to providing wide range of free services to developing
the wellbeing of people without considering the aspects of profit.
Vision and Mission: The Company has wide range of employees who are engaged in offering
health care benefits to the people by considering the appropriate norms and policies. Company
wants to offer high quality services without taking any kind of charges.
Oxfam: Under this, firms are worked by supporters, institutions or funders. Oxfam firm goes
under deliberate area and it is enlisted in United Kingdom and work under 15 titled trusts. T
operated its business at wide scale for the purpose of enhancing social wellbeing.
Size: Oxfam is one of the greatest associations of UK which comprises of more than 20 charity
trusts to guarantee the enhancement in welfare of individuals. Oxfam has in excess of 1200
stores in different nations with more than 20,000 volunteers working for enhancing the financial
states of society.
Scope: The extent of Oxfam is connected with accomplishment of destinations and objectives in
a foreordained period which can be accomplished through legitimate utilization of workforce and
assets.
Vision: Oxfam needs to convey quality administrations to the practical in reverse individuals by
giving work to expel the destitution from the UK's economy.
Mission: The organization means to give vital offices to the subjects so they can live with proper
facilities and security.
Stake holder: Companies major stake holder is the charitable trusts that are providing appropriate
funds and capital in order to proper implementation of organizational activities. Charitable
organisation, social institutions, government bodies etc are the major stakeholder.

TASK 2
P3 Interrelation between different organisational departments and their link to objectives
Each small as well as large business organizations are work for attaining their own goals
and objectives. In the modern business environment competition is so high at market place and
organizations are widely concern on attaining higher growth and profitability by segregating
their business operations in well planned and systematic manner (Cai and Yang, 2014).
. The business activities of small and large business organizations are categorized among
different departments and the growth and development of the firm are relay on the effective
operations of each department. Marks and Spencer is an extensive private constrained
organization which operates its business activities everywhere throughout the globe and the
organization operates in various divisions like luxury food products, high quality clothing’s and
attractive Home apparels. so it is basic for association or its higher specialist to keep up a decent
relationship among different authoritative heads and organisational employees. The upper level
include Board of Directors, CEO and shareholders who are answerable for providing information
and guidelines to middle and lower level employees by implementing suitable strategies and
policies. So, it is necessary for Marks and Spencer to settle on the efforts of various departments
for achieving the shared goals of organisation. As a vast business affiliation Marks and Spencer
has classified their business activities in various divisions as to keep up proper interrelationship
among every one of the department and these are portrayed as under:
Marketing Department: This comprises to be a most imperative part as it is framed for
upgrading deals and income of firm at Marketplace (Chavis, Klapper and Love, 2011). This
department is mainly responsible for marketing and promotion of the products and services
which are offered by the company at market place. As a large retail company Marks and Spencer
is using various marketing tools like advertising, social media marketing, newspaper
advertisement etc. in order to implementing these activities in effective manner organization
needs funds and capital which are provided by the finance department of the firm. Effective
advertising create value in attracting large number of customers towards the firm or its offered
products and services.

Finance Department: This is likewise an essential component of firm and it has an immediate
connection with the momentary aspects of the firm. These departments within the firm is
responsible for making appropriate arrangement of funds and capital from various sources and
allocate them in each department as to smooth functioning of organisational functions. It is
fundamental for an association to have a viable and great budgetary foundation as to execute all
business tasks in most ideal way. This segment is effective for Marks and Spencer in making
proper arrangement of funds and capital so that all the activities of the firm can be conducted in
appropriate manner. For an example: finance department within firm provided appropriate
among of funds to the production department to purchase new machinery so that significant
quality of products can be made. In this division different exercises are included, for example,
proper arrangement of funds and decreasing liabilities and so forth.
Production: This department is considered as the most essential segment which is responsible
for the appropriate production that is required for satisfying the needs and wants of customers at
market place. Production department needs appropriate amount of funds and capital from the
finance department so that proper arrangement of machinery and raw material can be made. Thus
this is effective in attaining higher growth by producing higher effective and qualitative products.
This comprises to be the essential division of firm as the development and accomplishment of
firm depend on its production function. It alludes as a procedure in which arranging,
coordinating and controlling are included. As an expansive retail organization Marks and
Spencer is generally worried on delivering excellent items and administrations in regard to
keeping up its effective brand image in the mind set of customers.
Human Resources: The major concerned area of this segment is to developing the strength of
employees within the work place so that appropriate growth can be attained. For hiring best
suitable candidate for the profile HR department needs to coordinate with marketing department
to publish proper details about the vacant position within the organisation, thus best selection can
be made among the alternative who are apply for the same profile. The major obligation of
human resource manager is to maintain appropriate flow of knowledge and skills though
recruiting right and highly skilled employees within the work place. As a well known firm Marks
and Spencer is concerned on hiring well skilled and talented human resources for long term
operations of the firm.

TASK 3
P4: Positive and negative impact of macro environmental factors upon the business.
The business organisation who is operating in different segments or wide range of
geographical areas has already analyzed the influence of macro environmental factor. As a well
known and well reputed company Marks and Spencer operates in different countries and faces
various kind of issues related with external environmental factors (Commander and Svejnar,
2011). These factors have some positive as well as negative influence on the operations of the
firm. PESTLE analysis is the best suitable way to analyzing the external macro environmental
factors for Marks and Spencer, the significant elements and its positive and negative impacts are
described as below:
Factors Meaning Positive Negative
Political This considered as the
primary aspect of
PESTLE analysis. This
incorporates the political
aspects of a country.
Under this, all policies
are designed and created
by the government of
United Kingdom. In
addition to this, if
government will created
new legislation or
policies for producing
new and innovative
products then it will
have impact on the
activities of business
firm.
The major positive
influence of politics is that,
the company Marks and
Spencer has reached at the
higher competitive position
by considering all the
aspects of government
norms and policies.
The major negative
influence is that it is
tough for Marks and
Spencer to implement
all the changes at
constant basis because
it affects the operations
of the firm in extreme
level.
Economical This is also an essential After Brexit the economic On the other hand the

aspects which is
required to be
considered by the
organization or its
authority in respect to
maintain the business
operations in effective
way. Under this, if the
economic condition of a
country goes down that
it may affect the growth
of business organization.
In this way, it is required
for Marks and Spencer
to make a decision in
regards to the economic
condition of a country so
that appropriate growth
can be attained.
condition of UK has
changed and it is required
for the firm to know about
the inflation rate and
different income levels.
The major positive
influence of this is that the
proper up gradation in
inflation the reserve stream
will be expanded and bring
more cash (Cuervo‐
Cazurra, 2011).
.
major negative
influence is that in the
case of change in
currency or change in
the currency rate may
influence the
profitability of the firm.
Low income level of
people may also
influence the market
position of Marks and
Spencer.
Social This factor is basically
based on the behavior,
attitude and perception
of the people. This is
related to the social
environment, as the
perception and
requirements of people
are changed as per the
change arises in the
market trend. It is
necessary for Marks and
With this Marks and
Spencer is required to
determine the new trends
so that satisfactory services
can be offered to their
potential customers. The
firm is also able to capture
a wide area of market
which creates value in
attaining growth and
success.
Lack of appropriate
knowledge and skills
among buyers has a
direct influence on the
development of the
firm. Due to large
market reach sometime
Marks and Spencer is
not able to fulfill the
requirements of buyers.