Business and Business Environment: Analysis and Report (M&S)

This report provides a comprehensive analysis of the business environment, exploring different types of organizations including public, private, and voluntary sectors, as well as their legal structures. It delves into the size and scope of various organizations, examining the relationship between organizational functions and objectives, and how these functions link to the overall structure. The report includes a PESTLE analysis to identify the positive and negative impacts of the macro environment on business operations, supported by examples. Furthermore, it conducts both internal and external analyses, utilizing SWOT analysis to identify strengths, weaknesses, opportunities, and threats for a specific organization, Marks & Spencer. The report concludes by explaining the interrelation between strengths, weaknesses, and external macro factors, offering a holistic understanding of the business environment and strategic considerations.

Business and Business
Environment

Table of Contents
INTRODUCTION ...........................................................................................................................3
TASK ..............................................................................................................................................4
P1 Explain different type and purposes of organisations like public, private, voluntary sector
and legal structures?....................................................................................................................4
P2.Explain size & scope of range of different types of organisations?.......................................6
P.3. Explain the relationship between different organisational function and how they link to
organisational objectives and structure ?.....................................................................................7
P.4. Identification of positive as well as negative impacts the macro environment has upon
business operation with the help of example?.............................................................................9
P.5. Conduct internal & external analysis of specific organisations in order to identify strength
and weakness?.............................................................................................................................9
P.6. Explain how strength and weakness interrelate with external macro factors?.....................9
CONCLUSION .............................................................................................................................10
REFERENCES...............................................................................................................................12

INTRODUCTION
Business includes an enterprise in which the activity related to industrial,commercial and
professional are performed by entity. Businesses can be non profit organisation or for profit
making purpose. NPO is operate to achieve the charitable mission and social purpose. Every
business has some business environment it can be defined as the collection of various internal as
well as external factors like requirement and desire of customers, supply & demand, employees,
clients, management, owners, government activities, innovative technology, market and social
trend, changes in economy etc. The main company that was selected in this project was Marks &
Spencer. It is a public company. It is a multinational retailer deals in selling clothing, food and
home products mostly of its own label. It has its headquarters in London , United Kingdom. It
was founded by Leeds in 1884 in UK
TASK
P1 Different type and purposes of organisations like public, private, voluntary sector and
legal structures?
Types and Purpose of company.
Public company is a type of organisation that are owned, manage & control by the
government. It give services and goods for the benefit and development of community. They run
their business with the money that is generated by them from public in the form of taxes. The
example of public company
Purpose: The persons who invest in this company become their shareholders. The main
purpose of this is to raise funds by issuing shares to the public.
Private organisations has private ownership and their shares are not listed in any stock
exchange. It is controlled and owned by small group of persons and entities. Dyson is the
example of such type of organisation.
Purpose: The main objective of the company is to earn maximum profit and protection to
personal assets, financial assistance, access to more resources and greater tax cuts are the main
purpose of the organisation.
Voluntary sector: It is non governmental non for profit purpose organisation as this is
also known as community sector. Oxfam is the example of such type of company.

Purpose: Their main objective is to ensure benefits to the public and enrich society as
profit earning is not the moto of such type of organisation.
Legal structure of organisation are:
Private Organisation
 Sole proprietorship: It is type of business that is control and owned by single
person and owner possess unlimited liability on the debts incurred by the
respective business
 Partnership: It this business is run and operate by two or more persons with the
aim of achieving objectives of the business and to earn maximum profit. Than
these profit are distribute among these partners on the basis of their profit sharing
ratio
 Corporation: It is for both non profit & for profit entity that exists as separate
legal entity from its owners. In this shareholders are the real owner of the
organisation who gives capital to the business with the purchase of stock of
corporation
Public company
 Central Government: In this at least 51% of the shareholding is held by the
central government.
 State Government: In such type of company 51% or more shareholding is held
by State Government.
 Local Government: It generally act according to powers delegated to them by
legislation of the higher level of government
Voluntary Sector
 Trust: In this trust or gives the trustee, right to hold title to property for the
benefits of beneficiary.
 In corporative Association: It is a legal entity that is registered for the purpose of
charity, recreational etc.

P2.Explain size & scope of range of different types of organisations?
Basis BBC( public
company)
Dyson( Private
company)
Voluntary( Oxfam )
Objectives To build and develop
sustainable business
with the help of
profitable growth,
consistency, to make
sure that act
responsibly in meeting
accountability to wider
stakeholders &
shareholders.
To design such type of
machines that runs for
long term approach
and not to get obsolete
in the near future. The
another aim is to
improve components
shipping efficiency
and reducing energy
wastage.
Ensure to provide
equal rights and
opportunities to
women's, help people
to claim right for
better life. Another
objectives is to save
lives in future.
Product & services BBC news, BBC
iplayers, entertainment
programes.
Air purifier, hair
straightener etc.
It works on conflicts,
gender justice,
essential services
related to water and
sanitation.
Size It employs around
twenty thousand
people .
529.0K employees
approx work in Dyson.
Approx. fifteen
hundred staff exist in
Oxfam.
Scope Creative & districtive
service offer the
broader scope to
capture the large area
of market
Innovative towards
ultra efficient hand
dryers to make
promotion and sell to
around 49 countries
across the world and to
become leader in high
tech innovative
Support people to
claim their right for
better life.

products in many
countries.
Mission To excite as well as
inspire large audience
at every point of turn.
Provide and support
aspects that improve
various aspects for all
age of individual.
To inspire engineers of
new generation. With
the help of material,
money & mentorship
young generation
audience can get hands
on with problems and
also learn how to solve
them.
To eliminate injustice
of poverty and create a
future that is secure .
The other mission is to
improve the lives &
livelihoods of poor
people.
Vision To give a standard
against that its
competitor may be
measured and to care
for the community &
environment. Also to
provide good working
environment to their
work force.
To provide cost
effective as well as
sustain product
responsive to the
needs of end users,
supporting growth of
its respective products
of consumer.
To make the world
without poverty and
treat all the citizens
equally without
making discrimination
between them.
P.3. Explain the relationship between different organisational function and how they link to
organisational objectives and structure ?
Relationship between various functions of organisation.
Marketing & HR department: In marketing various promotional activities are done by
the smart marketers of the organisation marks & spencer . By adopting various tools they can
create awareness in market. HR department of company plays an crucial role in appointing the
experience & well qualified employees for every units so that the organisation work smoothly.
The marketing unit is creative as well as innovative department that need talented workforce for
developing smart strategies of Marketing. Managers make good coordination among these

departments that tends to attract various promotional activities to generate huge income that
help to achieve goals of the company
IT and Finance unit - The IT sector needs large fund to installation new technologies.
The finance department is responsible to prepare budget for IT department which can help in
purchasing or developing the software used by the company. Through online mode Marks &
Spencer selling its products and take Regular update of software . By making coordination with
finance department IT department can easily achieve the objective through capturing the online
market of Dyson .
Marks & Spencer's objectives & structure
The objectives for Marks & spencer is to stand in the top position & become the market
leader in the clothing and food. To develop core value of value, quality is their another target.
Structure that was adopted by the organisation “Marks & spencer ” is flat structure in
this executives do not have their separate offices and all staff members work under the same large
roof. The organisation believe and focus on direct communication and avoiding communicating
through mediators. In this structure Board stands in the top position and the responsibility &
authority is delegated to Chief executive officer. After that they delegate the authority as well as
responsibility to managers of different departments like finance, marketing, sales, production,
purchase, Human resource management, IT, finance, logistics etc. so that the business can run
with easy flow because separate task are fixed for different departments or units.

P.4. Identification of positive or negative impacts of macro environment has upon
operation with the help of example?
PESTLE Analysis –
This is a process by which analyse an organisations external factor that can be affect the
organisation. It analysed the external situations like social, technological, political, legal,
environmental,economic. This analysis is done in the context of marks & spencer.
Political factor -
It is externally affects an organisation. These factor are looking for government rules that
affects the growth of economy.
Positive - many government are moivating to retailers to create job. This is a great
opportunity for increasing their demand.
Negative - when increase the trade restriction or taxes then the import export is costly.
Economic factor -

There is various economic factor that are affecting an organisation like interest rate,
exchange rate. The economic factor directly affect the profit of company.
Positive – cost of raw material is decrease due to recession. That is profitable for
company.
Negative – unemployment rates is increasing thats why the number of workers is also
increasing.
Social factor -
social factors are looking for social trends, culture, education level and lifestyle. It is
important in product selection.
Positive – marks & spencer follows the social trends for the enhancement of customers.
Negative – the company doesn't follow these factor or the requirement of customer they
cant increase the number of custom
Technological factor
Technological factor deal with new innovation which is useful for company and
production line. It helps in increase production or productivity of company.
Positive – it helps to increase the production or communicate with customer.
Negative – technological errors directly affects on demand.
Legal factor
there is many laws that is important to be followed by company. In this include the
trademark.
Positive – trademark is important for an organisation. Trademark increase the brand
value.
Negative – company should follow these regulation either it will create a legal problem.
Environmental factor
there is many factors like ecological system, climate, climate change. These factors
affects the company.
Positive – it helps in fair trade.
Negative – it affects in raw material availability.
P.5.Perform internal as well as external analysis of Marks & Spencer in order to identify
strength and weakness?
SWOT

SWOT analysis is known as Strength, weakness, opportunity and threats. It is a strategic
planning tools used to develop business strategy(Sople, 2016). With the help of strengths and
weaknesses Marks and Spencer company analyse the internal factors and with the help of
opportunities and threats company analyse external factors which are given below-
Strengths Weaknesses
 Marks and Spencer has many
strength but high identification
of the brand comes is the
biggest strength.
 Provide variety of products so
that customer have option to
choose best one.
 Many outlets and stores help
customer to easy shopping in
their local areas.
 High contribution on CSR
activities.
 Concentration to increase
customer good experience.
 Good e- commerce business.
 A biggest draw back is that
company is providing non
trendy and out of fashioned
products.
 Problem in Supply chain
management.
 Follow old strategies.
 Low financial performance.
 Limited market share because
of massive rivalries
competition.
Opportunities Threats
 Evolve business in new segments.
 Active Online platform for
convenience of customer.
 Update fashion station according to
current trends.
 Develop global appearance.
 High competition in all aspects
of the business.
 Frequently changing trends in
the clothing sector.

P.6. Mention how strength and weakness interlinked with external macro factors?
The organisation that was choose in this report are Marks & Spencer
Political:It includes government policies, foreighn trade policy, labour law, tax policy ,
trade restriction etc.
Strength Weakness
 Stable policy as well as global support
for public company to improve
opportunity to obtain first mover
advantage(Grayson, 2017)
 By change in regulations there is
reduction in the number of operation
and propably new company does not
support company to perform business in
correct manner( Bloom, 2017).
Economic: It cover factors such as economic growth ,interest rate, inflation rate,exchange
rate unemployment rate, etc.
Strength Weakness
 The increase in the operation by
controlling cost leads individual to
perform their take in correct
way(Aronoff, 2016)
 Due to variation in economic policy
and decision making decision making it
makes negative impact on operation of
organisation as it tends to increase cost
for business (Begg, 2018)
Social: Age distribution, health and safety measures, carrier attitudes, age distribution etc.
Strength Weakness
 With performing operation of company
according to requirement of individual
it is easy for management to manage all
business as according to requirement of
 Behaiviour of customer and
requirement vary in short duration of
time along with different conditions of
market for business is too

society(Julien, 2018) dynamic(Ledgerwood, 2017).
Technology: It covers innovation, R&D, Technological awareness, Innovation,
Technological incentives and so on.
Strength Weakness
 Spread for news is completed with fast
manner by using high technical
equipment (Smith, 20)
 Cost to purchase technology is high that
increase the cost of operation(Sadgrove,
2016).
CONCLUSION
By deep study and evaluation it is concluded that company follow all legalisation and provisions
aspects for business that prevails in the country UK. By doing coordination between the proper
coordination between many different unit it is easy to fulfil long term goals for company.
External as well as internal aspects of business perform a significant role in organisation to
manage their work with positive or negative aspect. By using flat structure Dyson run their
business in effective manner. so by following appropriate structure it is easy to work and
manage operations in a effective manner. By using PESTLE various business factors is to be
analyse in this respective project.