Business and Business Environment: Case Study of Three Organizations

This report provides a comprehensive analysis of the business environment, focusing on three organizations: Marks and Spencer (private), NHS (public), and Oxfam (voluntary). It begins with an introduction to the business environment and the selected organizations, followed by an examination of their different types, purposes, and legal structures. The report then delves into the size and scope of each organization, exploring their visions, missions, objectives, and purposes. It also analyzes the relationship between different organizational functions and how they link to objectives and structure. Furthermore, the report identifies the positive and negative impacts of the macro environment on business operations using PESTLE analysis and conducts internal and external analyses using SWOT analysis to identify strengths and weaknesses, explaining how these interrelate with external macro factors. The report concludes with a summary of the key findings and references to the sources used.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Different types, purposes and legal structures of organisations........................................3
P2 Explain size and scope of different types of organisations...............................................7
TASK 2............................................................................................................................................9
P3 Relationship between different organisational functions and link to objectives and
structure..................................................................................................................................9
TASK 3..........................................................................................................................................12
P4 Identify positive and negative impacts macro environment has upon business operations12
TASK 4..........................................................................................................................................14
P5 Internal and external analysis of organisations in order to identify strengths and
weaknesses...........................................................................................................................14
P6 Explain how strengths and weaknesses interrelate with external macro factors.............16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
Business is defined as an activity which is engaged in industrial, commercial and
professional action in order to earn profit by selling products. Similarly, business environment is
defined as integration of both internal and external factors which helps in influencing operation
activities of company (Adeoye and Elegunde, 2012). This includes competition, improvement in
technology, market condition, clients, supplier and others. This business and business
environment helps in knowing about requirement of consumer and work accordingly so that goal
and objectives can be achieved. The given assignment is based on Marks and Spencer which was
founded at United Kingdom in 1884. It is retailer business providing various products and
services such as luxury, food, clothing, furniture, financial service. According to assignment,
three different organisations has selected such as Marks and Spencer, NHS and Oxfam which is
private, public and voluntary. These have different types, size, vision, mission and other which
has mentioned in report. It has cover relationship among various functions of organisation for
achievement of goal and objectives. This also highlights about PESTLE and SWOT analysis to
know about internal and external environment of business. It has also covered interrelationship
with external macro factors.
TASK 1
P1 Different types, purposes and legal structures of organisations
According to scenario, three organisations has chosen where Marks and Spencer is
Private, NHS is Public and Oxfam is Voluntary. The different types, mission, vision, legal
structure of each organisation has been discussed which are follows:
Private Organisation
Private Organisation refers to any person, partnership, agency or corporation operated for
profit motive that are not government owned or operated with aim to serve for welfare motive
(Andersson, Forsgren and Holm, 2015).
Background of Organisation- Private organisations are part of country's economy
which is not controlled directly by Government. Marks & Spencer is a British multinational
retailer headquartered in London founded by Michael Marks and Thomas Spencer in 1884. It
focuses on providing high quality services that involves clothing, home products and food

products . This respective company is listed on London Stock Exchange. M&S has currently
operating 959 stores across the UK.
Products and Services- It provides products or services which includes clothing, shoes,
cosmetics, perfumes, toiletries, home and kitchen equipments, foods and drinks, banking, energy,
TV and online services and many more (Avramenko, 2012).
Stakeholder Information- Stakeholders of Marks & Spencer includes its employees,
customers, government, NGOs and others which contribute for its financial sources. They get
high returns in lieu of their investment in Marks & Spencer.
Types of Organisation- Private organisation are of various types which includes: Sole proprietorship- It refers to an enterprise that is run or owned by one person with no
legal differences between owner and entity. It is also known as 'One person company'
because all the responsibility, investments, profits and management are in single hand. It
is easy to form and owner has sole control over profits. Its demerit is that owner is
personally liable for all losses and liabilities. Joint stock company- It is most suitable form of organisation as its business enterprise
that is owned by it shareholders jointly. It is an artificial legal person with separate legal
entity and perpetual succession, with limited liability and common seal and it has a right
to transfer shares.
 Partnership- Partnership is an agreement between two or more than two persons to
achieve targets and earn profits equally (Babu, 2012). It is operated by proper agreement
describing in partnership deed which involves information about organisation and
partners. Partners can be individuals, groups, businesses, institutions, schools, colleges
etc.
Legal Structure- Marks & Spencer follows legal structure of private limited companies
consisting of departments such as finance, HR, marketing and IT. It includes board of directors
to take overall decisions and CEOs and other top level management and regulate structure of
joint stock company.
Public Organisation
Public organisation is an enterprise owned and operated by government with aim to
provides goods and services for its citizens. Its main target is public welfare and do not seek to

generate profit from its activities. Public services are raised through variety of methods including
taxes, fees and other financial transfers.
Background of Organisation- National Health Service is publicly funded national
healthcare system for England. NHS provides healthcare to its resident in free and some services
such as treatment of infectious disease and emergency cases for visitors also. The main purpose
of Labour government for founding National Healthcare Services is free healthcare at point of
use. It provides majority healthcare including primary care, long term health care and dental
care.
Products and Services- NHS provides primary healthcare, in-patient care, long term
healthcare, dental care, ambulance services, mental health services and many more.
Stakeholder Information- External stakeholders who are contributing in this
organisation are as local authority, trusts, patients, departments of health, mental health unit and
government (Boons and Lüdeke-Freund, 2013). Its stakeholders receive benefits from
government that is regulating concerned organisation.
Types of Organisation- Public organisations are of different types which are as follows: State Government- Organisations of this government are regulated and run by particular
state government. All the activities either legal or in other relation, rules and regulations
of a state are under regulation of state government. State government provides services to
citizens of that specific state, those rules and regulations are not applicable to other ones.
It runs through revenue collection from that state's population such taxes and financial
reserves.
 Central Government- Organisation of this government deals with central rules and
regulations. Terms and conditions of state government are not applicable on these
organisations. These organisations include all the hospitals, schools, colleges and other
institutions run by central government for public or social welfare.
Legal Structure- National Healthcare Services (NHS) is a central government
organisation. NHS have members and governors with Board of Directors (Georgescu and
Popescul, 2015). It has four healthcare services in UK run by UK government ministries. It is
controlled by Department of Health and Social care which takes political responsibility for
service.
Voluntary Organisation

It is defined as group of individuals who come with an agreement such as volunteers in
order to form organisation for accomplishment of goal and objectives (Hillary, 2017). It is also
called union, voluntary association, common interest association.
Background of Organisation- Oxfam is voluntary sector organisation that was founded
with help of 20 charitable firms in 1942. This is focusing on providing relief to disaster,
alleviation of poverty, helping to pro-migration and others. It is non-profit organisation having
collection of operations and serving globally. It focuses on four elements like essential services,
right in crisis, gender justice and economic justices.
Products and Services- The products and services which are provided by Oxfam is to
provide shelter to people suffering from disaster. They create innovative and unique way for
lifting poverty and thrive.
Stakeholder Information- There are various stakeholders of Oxfam such as volunteers,
staff and financial supporters. They all work together for helping respective organisation for
achievement of goals and objectives in an effective and efficient manner.
Types of Organisation- The various types of organisation are: Trust- This is defined as organisation that is organised in order to manage and perform
fiduciary of trust and agencies (Hilton and Platt, 2013). It is owned by one of three kinds
of organisations like law firm, bank and independent partnership. The members are
granted with power but it is not compulsory to use all of them. It is managed through
trustee and beneficiary for running different operations and activities.
 Unincorporated Association- This is enterprise that is established with help of agreement
between various type of individuals who comes together rather than profit making. It
does not needed setup cost at market. The main purpose and details are mentioned in
agreement that should be followed by respective group of members and for contractual
obligations and debts, all of them have personally liable.
Legal Structure- After analysis of different types of organisation structure, it has been
concluded that Oxfam has followed unincorporated association where various members has
come with an agreement and focus on following objectives. It works on providing services to
people than making profits. This has focused to assist individuals for poverty removing from
country.

P2 Explain size and scope of different types of organisations
The size and scope of various kinds of enterprises are as follows:
Private Organisation
Structure- The respective organisation follows flat organisational structure for their
business.
Size- The size of Marks and Spencer is very large as there are more than 80,878
employees working in it. The different brands of M&S are limited edition, classic, Per Una, Blue
Harbour and others. It is serving its products and services in different parts of world.
Scope- This deals in clothing sector and has expanded business in food too for their
consumers. This both sector contribute in earning profits for business. In coming years, the
respective organisation will expand business in other sector.
Vision- Marks & Spencer vision is to create benchmarks in marketplace by meeting
changes need by customers and affect competitors.
Mission- Its mission is to built quality and value of products through its depth and range
of products.
Objectives- Marks & Spencer categorised its objectives in relation to organisation, its
employees and sales to achieve its desired objectives (Iyer and Henderson, 2012). Its aim to
develop organisation by innovative ideas and its targets achievements, fulfil requirements of
personnel and maintaining harmony among them and increasing sales by creating affordable
products with high quality.
Purpose- The purpose of M&S is to inspire more and more people to meet their demands
by their brand. It aims to enhance lives by raising living standards of people with maintenance of
income rates and trends in marketplace.
The respective organisation can achieve objectives of business by dividing employee as
per structure and assigning work accordingly to them. The size of organisation is huge where
work is to be assigned as per skilled and capabilities of working employees.
Public Organisation
Structure- This follows division structure in their business as different departments are
working under it.
Size- There are approx 1.5 million people working in NHS across UK. More than 1.2
million staff are employing in England.

Scope- This focus on providing help to individuals suffering from different disease. It has
expanded their business in different parts to make people healthy and safe. The scope is to make
world free from disease.
Vision- NHS has a vision to enable people to live healthier and independent lives with
high quality care which are good value for money and meet needs of population of UK.
Mission- The mission is to provide care and services to people and their families when
they want to use.
Objectives- The objectives of NHS are to ensure best start in life to children, prevent and
manage quality of life and reduce health inequalities, improve well-being and deliver high
quality and efficient services (Lenssen and et. al., 2013). It aims to create forum to plan ahead
and whole system improvement. It ensures healthy environment and quality of services provided
to public who are in need and urgency by specialised persons.
Purpose- Purpose of NHS is to highlight and reducing unwanted variations in healthcare,
encouraging innovations and creations to provide services to patient in present as well as in
future also and providing healthcare advices and leadership for proper decision making and
strategic planning.
NHS can achieve business objectives as there are many department working under it in
order to provide help to people. This can be done through providing assistance to each and every
people as per size of business.
Voluntary Organisation
Structure- Oxfam follows flat structure as they focus on working around global and
helping lots of individuals. This is controlled by in charge who makes decisions in organisation.
Size- There are more than 5300 people working in this organisation and 22000 volunteers
are providing services to people. It has 20 independent charitable firms which works in country
to make place poverty free.
Scope- Currently it is serving their services in United Kingdom to help people to get
healthcare services. It is planning to expand in different parts of world and trying hard to give
service to both women and men in order to end poverty and injustices. This is also raising voices
for poor and helpless people for influencing both nation and global decision making which is
affecting them.

Vision- Vision statement of Oxfam is making world without poverty. They focus on
serving world where each and every individual should be valued and treated equally in order to
enjoy right, life and responsibilities.
Mission- The mission of Oxfam is to help in creation solutions to poverty or injustice
people.
Objectives- The objectives of Oxfam are to use combination of various programs such as
fair trade, humanitarian assistance in conflict and disasters along with building capacity for
managing electronic waste (Meiners, Ringleb and Edwards, 2014).
Purpose- The purpose is helping and creating last solution to injustice of poverty. As it is
part of worldwide movement for change which assist in creating future that should be just, secure
and free from poverty.
Oxfam can achieve their objectives by working together with their employees. As it
follows flat organisational structure for their business so employees are assigned work as per
their capability and skills so that objectives can be achieved in effective and efficient manner.
TASK 2
P3 Relationship between different organisational functions and link to objectives and structure
Organisational function is defined as procedure or collection of activities that are carried
within various areas or department of company (Morgan, 2012). There are different functions of
organisations which helps in achievement of goal and objectives of business that includes human
resource, finance, operations, marketing, production, information technology, research and
development. This is very significant for Marks and Spencer to establish relationship with other
functional areas. All departments have to work together for achieving goal and objectives of
business. The relationship among various organisational functions are as follows:

Marketing and Human Resources- Both marketing and human resource functions of
Marks and Spencer have to work together for achievement of goal and objectives. The
coordination of both helps in motivating consumer's behaviour and improving performance of
organisation. The marketing department provide information to HR for requirement of number of
employees for different profile such as marketing analyst, specialist etc. to carry out task in
proper manner. It is responsibility of HR manager of M&S to hire skilled and capable staff and
employees so that they can work effectively. Both department work together in order to achieve
objectives of business. Marketing department analyse market and identify innovation required in
business. According to that they hire skilled and capable employees for achievement of goal and
objectives.
Finance and Human Resources- Both finance and human resource function are
opposite to each other. Here, HR understand people and their impact language whereas finance
understand ROI and number language (HR and Finance: A strong relationship for your business
success, 2019). These both are dependent to each other for achieving business goal and
objectives. Employees focus on driving business results and creating value for enterprise. It is
responsibility of HR manager of M&S to support employees for achieving financial results. The
skilled and experienced person is required for managing finance section of organisation. The HR
has to recruit those candidate who have experience of finance related activities such as profit and
loss, balance sheet and others. As finance department allocate funds to hire proficient employees
which is perform effectively for attaining the respective company objectives. The respective

organisation follows flat structure for their business where they can achieve objectives by hiring
skilled and capable staffs where salary is provided by finance departments.
Production and Information Technology- It is the era of modernization which requires
respective organisation to follow various information technology for manufacturing or
production of goods for business. The mostly used information technology for production
includes enterprise resource planning system and inventory management software (What Kinds
of Information Technology Would Help Production, 2019). The ERP helps in controlling of cost,
monitoring flow of work, control of quality and others which helps M&S while doing
production. Similarly, inventory management software assist in creating purchase and sales
orders, monitoring inventory and receive payments. All these tools of information technology
helps respective organisation for doing effective production in business as per set structure and
objectives. The objectives of business is to do innovation in products and services through help
of using information technology and doing production. They should have skilled and capable
staffs for better work performance.
Research & Development and Marketing- These both departments are interrelated and
focused on acting and understanding need and demand of consumers. This helps in making jobs
to be easier and results to be more productive. The marketing manager of Marks and Spencer
provide information for doing research and development at organisation in order to fulfils need
and demand of consumers in an effective and efficient manner. They both work for fulfilling
requirements of consumers in proper manner. Research and development also focus on searching
new and innovating things which are useful or necessary for success and growth of organisation.
Therefore, in this way both department have to work together for achievement of objectives of
business. This can helps in achievement of objectives by doing proper research and development
through marketing as per structure of business in effective and efficient manner. Both department
work together for betterment of results.
Therefore, each of the function are interrelated with each other for business growth,
success and sustainability. One department alone cannot perform each and every activities by
themselves.

TASK 3
P4 Identify positive and negative impacts macro environment has upon business operations
Macro environment is defined as monitoring and analysing external environment with aid
of PESTLE analysis which impact performance of business (Nishitani and et. al., 2012). Such
type of analysis is conducted when organisation enters into global market or starting new
venture. Marks and Spencer has conducted PESTLE analysis with their positive and negative
impact on organisation are described below:
Political Factors- This consists of foreign trade, interest rate, policies, that is impacting
respective organisation and its performance (Onetti and et. al., 2012). After Brexit, political
condition of UK was not stable for shorter period of time. As government made policies which
leads to stability in country that has focus small medium and large organisation to run their
business in effective and efficient manner. Positive Impact- Brexit leads respective organisation to minimize their sourcing cost that
enhance profits for business.
 Negative Impact- The change in political factors leads to create problems for M&S to
expand business in other places due to instability situation arise in market.
Economic Factors- There are various factors which are included in economic such as
inflation rate, interest rate, recession and so on. The economic condition of UK is rising which
leads respective organisation to expand their business in other places. After Brexit, political and
economic condition both were stabled in that place that helps in rising profits in business. Positive Impact- There was rise in value of dollar that leads to increase in profit of
business.
 Negative Impact- During Brexit many retail business such as Marks and Spencer and
other face problems in rising gains and profits due to instability situation of country.
Social Factors- The various social factors includes age, health and safety, income,
growth, career (Pulver, S., 2012). After the Brexit, per capita incomes of people has decline and
taste and preferences of consumers changes frequently which directly impact on profitability of
organisation. They have to analyse market so that they can built products and services as per
requirements of consumers.