Business Operations Report: Internal and External Analysis

This report delves into the realm of business operations, offering a comprehensive analysis of various organizational types, including public, private, and voluntary sectors, along with their respective legal structures and purposes. It explores the size and scope of different organizational structures, providing insights into their goals, objectives, and market dynamics. The report further examines the intricate relationships between different organizational functions, such as HR, finance, marketing, and sales, and how they interlink with the overall organizational structure and objectives. It also investigates the positive and negative impacts of the macro environment on business operations, followed by an internal and external analysis of organizational strengths and weaknesses, considering the interplay with external macro factors. The report uses Marks & Spencer as a case study to demonstrate the concepts.

BUSINESS AND
BUSINESS OPERATIONS

Table of Contents
INTRDUCTION..............................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Types and purposes of organisation like public, private and voluntary sector with legal
structure.......................................................................................................................................3
P2 Size and scope of different types of organisation..................................................................5
TASK 2............................................................................................................................................6
P3 Relationship between different organisational function and how they link to organisational
structure and objectives...............................................................................................................6
TASK 3............................................................................................................................................8
P4 Positive and negative impact of macro environment on business operations........................8
TASK 4..........................................................................................................................................11
P5 Internal and external analysis of strength and weaknesses of organisation.........................11
P6 Strength and weaknesses interrelate with external macro factors......................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRDUCTION
Business refers to the different activities which are there to produce and selling of goods
that can help to earn profit. Business environment refers to the collection of each and every
individuals, entity along with other factors. In this, there is collection of each and every factors
like external factors like employees, customers needs and their expectorations, management,
suppliers, clients, owners, supply and demand. There are different factors which are there able to
impact on the business environment. Aim of this report is to understand the internal and external
business environment which is there necessary to analyse to get the information in relation to
provide better understanding about the business environment. Chosen company is Marks and
Spencer which is a multinational company and is supermarket retailer which was founded in year
1894. In this report there is introduction about different sizes, type along with scope of
organisation. There is also some discussion about the interrelationship of different function and
how they link to organisational structure. There is some examples to show the impact of macro
environment in business operations along with strength and weaknesses of business with external
macro factors (Osiyevskyy, 2020).
MAIN BODY
P1 Types and purposes of organisation like public, private and voluntary sector with legal
structure
Organisation refers to the group of many people in which there are many of the goal are
being achieved in rational to complete different task. There are different types of and purpose of
organisation such as public, voluntary and private sector.
Private organisation- This is the organisation in which is opens and run by any
individual or by partners in which there main aim to run the business is profit. This is first
priority of this type of organisation in which there is need to follow some rules and regulation
which has governed by the government. In this type of business there is need to follow different
rules and regulation which should be followed by such organisation. Mark & Spencer also need
to follow such type of rules and regulation in there regulation and manufacturing and selling of
their product (Verma, 2017).

Purpose- main purpose of this organisation is to maximise the profit and create
transparency in the reporting along with choosing right organisational structure. This one can be
in partnership, sole proprietorship along with corporation.
Legal structures
Partnership- This is the one in which any of the business involve minimum 2 person and
maximum 20 person in relation to carry out the profit in business. In this, there is documentation
in relation to avoid any type of conflicts among business partners. In this documentation there
are many agreements which involves like profit percentages, authorities and responsibilities of
each partners etc (Ngai, 2018).
Sole proprietorship- this is the one in which there all the business operations is carried
out by an individual. In this all the tax and profit is there need to settled down by that individual.
This is a small business in which there all the financial arrangement is done on their own.
Corporation- In this type, there is an individual which are there independent business
entity. In this, high authority is chosen by Board of directors in relation to operate different
business activities.
Public organisation- This type of organisation is owned and operated by government in which
different services are provided to public and is owned by local, state and central government.
Funding for this organisation is raised by the government which is there by as the collection of
taxes (Ali, 2018).
Purpose- Main purpose of this sector is to transform economy, created job opportunity,
socio-economic structure, provide better valued services along with optimum utilisation of
resources.
Legal Structures:
Central Government- They are the one in which each and every activities are there
operated by the central government along with all the control. When there is any change in the
company there is need for the approval from the central government.
State Government- They are the one in which there is sharing of political powers with
national government. There are many of the services which are controlled by the state
government.
Local Government- In this, there is collection of funds by the community which is
known by council tax. In this, there is total control of the local government.

Voluntary organisation- These are the non-profit organisation in which people like to
join such organisation in which there are group of people who ran this organisation. People join
this type of organisation for social welfare.
Purpose- Aim or this organisation is to provide social welfare and to connect with other
people. They generally work for social welfare in relation to help people and the work for which
the organisation related with (Andersson, 2018).
Legal Structures
Trust- This is the one which is ran by different people who called as trustees. In this,
there are different trust members who are there flexible in nature. Many people who like to
donate in this organisation are allowed and that collection is used for the work process.
P2 Size and scope of different types of organisation
Scope of an organization this term often used in project management . A project
management this mostly involves company resources and planning thus to complete a a
particular event, task, and action , this is commonly a one-time event.
Size and scope of organisations
The size and scope they shows the difference between large organisation, medium
organisation and small organization which includes goals and objectives, profit share, market
share and growth sustainability. Traditional organisational structure they are four types such as
divisional, functional and and flat matrix but because digital marketplace they have been rising
nowadays due to this reason team based organisation structures are interrupting all the old
business models.
Public organisations scope and size
Broadcasting corporation they have ample opportunities thus to expand their business .
They can easily expand their business by investing in new project. To initiate the project , they
require the adequate finances. They could avail finances by issuing their shares to the public. In
this process management has been separated from the owners. In the relevance of broadcasting
corporation if any mismanagement is done so managers are responsible for this. Broadcasting
corporation they have larger possibilities to increase their funds and implement them for the
future plan (Veldeman, 2017).
Private organisation scope and size

The private organisations they do have have some restrictions. In the context of
greenergy they are very comfortable for the similar minded peoples in order to operate their
business operations. Greenergy owners they get engaged in an operation so that functions could
work properly. Their entities have huge number of opportunities therefore to expand in several
industries with the aggregation of human resources, capital and skills.
Volunteer organization
There are available in two types profit and not for profit and known as non-governmental
organisations. In the context of amnesty international organisations they are described as
structure and groups for the purpose of accomplishing objectives and goals.
For profit organisation
Any business or an organisation they has been set up for the purpose of generating profits
and further they are known as profit organisation. In the relevance of amnesty international they
are commonly operate in the private sector, this statement means they are owned by the
individuals or else group of entities not by the government in this way they are refereed as
business. The organisations which fall under the in the category of not for profit this includes
social enterprise and charities (Täuscher, 2018).
Not For profit organisation
The not for profit organisations, they are organisation which had set up for other purposes
other than financial gain, in the context of amnesty international these organisations could be
differentiated from the profit organisation which are based on the not to gain profits for business
owners but instead of this working for the public benefit.
Non – government organisation
They are known as NGOs and non – profit organisations, which are operated
independently from the government or state. They usually receives staff funding , NGOs are
operated without any kind of references from the government
TASK 2
P3 Relationship between different organisational function and how they link to organisational
structure and objectives
There are different type of organisational structure in which some of them are discussed
further.

Hierarchical structure- this is the organisational structure which there are pyramid
structure. In this, structure in which there are command comes form higher to low division. This
is also known as the common structure which can easily be followed by any organisation. In
this, there are supervisor for every one. There are different pros and cons for this structure in
which pros are like they are able to define better the level of authority and responsibilities. Cons
like they sow down the innovation there is taking taken during any change in organisation which
is due to increased bureaucracy (Bora, 2017).
Functional structure- This is also like hierarchical structure in which all the command is
there form the top authority and leads to lower staff which gives the high benefits to the
organisation for proper understanding and to run the organisation in better way. This help to
focus on the employee roles, this can help to measure the company size.
Flat structure- This is the structure in which each staff and higher manager are on the
same level. This structure is generally in the small and start-up business where there is need to
manage all the department by an individual. In this, there is equal evolvement of each and every
employees which there able to give their best. In this, there is high responsibility to each
employee.
Marks & Spencer that is British retail company in supermarket, this organisation is
divided into various functional unit such as Marketing, Finance, HR and sales etc. in which some
of them are discussed further.
HR and finance department- HR are the one which are there able to find and recruit the
best candidate for the right place. In this HR are there able to recruit the best candidate to
provide funds and in cost to HR. There is interrelationship in between the HR and finance. In this
there is an objective which si there to gather the best one for the finance department. There is
also need to develop best strategy which are there able to make better strategy in relation to get
better business (Zhang, 2020).
Advantages- This can provide better employee for the right position that can help the
finance department to increase the productivity of the organisation.
Disadvantages- HR need to work hard in rational to find out the required talented person
to hire. There can be hiring of such person who is well fit for that post on which he or she may
can give better output.

Marketing and sales department- Marketing department is the one which is able to
create awareness for the product which is there available for sales purpose. In this, there is need
to create such awareness that people are able to know about the product and due to popularity of
useable product. There can be demand of that product in the market. Sales department is the one
which works is to generate sales on the basis of demand. In this, marketing department generates
the awareness and sales department is the one who sell their product according to demand
(Cheah, 2019).
Advantages- They are interrelated with each other and are able to create high demand in
the market and help company to achieve the objective along with high profit.
Disadvantages- when marketing department fails to create better awareness of the
product then there can seen in negative impact on the sales of product.
IT and R&D department- IT department is the one which is thee able to maintain and
manage equipment such as software, machine and different technology which Mark & Spencer
use. R&D department is the one which is there for research upon the new way to use the
technology for better production that can give better result to the company. Here, main objective
is to apply and use of the best technology for product in an organisation.
Advantages- They are able to incorporate different technology in the line and with the
help of each other. There can be better use of different technology in productive way.
Disadvantages- When IT department is not able to use the latest technology then there is
no any type of benefit of R&D department (Zhang, 2018).
TASK 3
P4 Positive and negative impact of macro environment on business operations
There are many impact of macro environment on the business operation which can be
analysed by using the PESTEL analysis. This can help to get the better business after
understanding the condition of macro environment.
PESTEL analysis
Political analysis- This is the first factor which is able to impact the business operation
of any organisation. In this, when there is any change in the political change then there is need to
focus on any change which is there able to affect the political change. There are many of the
change in laws and taxes which are able to affect the business operation. In context to Marks &

Spencer need to have the knowledge about all the changes which are there in laws and legislation
which can effect the business operation by creating demand (Cyrino, 2017).
Positive impact- This is able to provide all information to business that can help to
develop better relationship with others.
Negative impact- There are many negative impact on the business operation where
mainly there due to change in rules of taxes creates negative impact on the business operations.
Economical analysis- This is the analysis in which there is company's different operation
depends on the economy of the country. When economy of country is better then customer have
the better purchasing power this can help to increase the sales. Whereas, low economy of country
leads to decrease in demand.
Positive impact- This can create better business and sales and help the organisation to
earn more profit.
Negative impact- In this, there is high impact on the business operation of Marks &
Spencer. Market economy is flexible in nature and due to this, it is difficult to evaluate the right
position of economy.
Social analysis- This is the one in which there is need to focus on the society which
should be there to find the better society. In context to Mark & Spencer, there is need to
contribute in the society where this can help to provide better business.
Positive impact- This can help company to contribute to the society which creates more
awareness of the brand.
Negative impact- This is the one which is thee need to focus on the community welfare
that effect the business operations (Ko, 2017).
Technological analysis- This is the analysis in which there are many of the impact on the
business operation of Mark & Spencer. There are different innovation in the technology which is
there having different impact on each and every operation of business. Technology help in each
and every operation of business and help to operate all function in better and easy way.
Positive impact- This can help to use the latest technology in relation to get high business
and help to provide better business operation.
Negative impact- this require high amount which can affect the other business operation.
Legal analysis- This is the one in which there are different legal formalities which is
there in laws and different regulation.

Positive impact- In this, change in legal formalities provides different modification that
can help the business operation to run smoothly (Miller, 2018).
Negative impact- This is the one in which there is due to change in legal action there is
need to do modification which needs high cost and time.
Environmental analysis- This is the one in which there is need to focus on the
environment and Here, Marks & Spencer need to keep focus that there should not be any
negative impact to the environment.
Positive impact- There is need to focus on the positive impact that can be there where
people are very conscious about the environment so this can help to improve the business
operation.
Negative impact- This is the one where due to taking care of environment there is need to
use different measure that can create high cost and able to effect the business operation.
Porter Five Force Model
It is type of model which is used by organisation in order to analyse business
sustainability level in contemporary business environment. Main aim of this framework is to
access market situations and assist in development of business. In context of chosen firm, they
also uses this model which is further discussed as follows-
Threat of substitutes- It is force of model in which it depicts about replacement of product
within a market. The market is wider and broader which comprises of many businesses of
same product or a service. In relevance of Marks and Spencer, as they are in retailing
industry they also have wide range of substitute of product such as Raymond, Forever 21,
GAP, etc. Thus, the intensity of threat of substitute is higher (Mandhachitara, and Allapach,
2017).
Threat of new entrants- It is also force of analysis in which it focuses on how business is
affected by new entrants. In market, it consists of small, medium and large firms. In United
Kingdom, new entrants are easily likely to take place. In relation of selected company, they
are also affected by new entrants for example- new firms such as Chanel, Louis Vouitton
has largely impacted upon M & S market growth.
Bargaining power of buyer- In this force element, it states about the buyers power within
market. Customers power is mostly high in market. In relation of M & S, the bargaining
power is moderate because in United Kingdom, customers easily shifts from one brand to

another. So, it is critically crucial for selected firm to implement effective strategies to retain
customers.
Bargaining power of suppliers- It is also crucial element of model in which it focuses on
impact of supplier in business. Suppliers are the major source through which entity is able
to access to customers in proper manner. In context of chosen entity, they are located at
global ans has large number of suppliers. So, power of supplier is at moderate level because
company has more options to switch from another supplier.
Competition rivalry- In this force component, it gives information about intensity of
competition rivalry in market. In retailing sector, the competition rivalry is increasing at
wider level. So, in regards of selected firm, threat is higher because they many competitors
such as GAP, Aeropostale etc.
TASK 4
P5 Internal and external analysis of strength and weaknesses of organisation
Strength
Marks & Spencer is the which is getting
successful in relation to implementation of
new projects and earning better profit.
As this company is expanding its business on
international level, due to this, it is helpful in
strengthen the market.
Weaknesses
They are very costly in nature and due to this
there is need to either decrease the product
price.
Company is not able to face different
challenges where as wal-mart acquire high
umpire in best services.
Opportunities
Company have the opportunity to merge with
other retailer in relation to acquire high market
segment and earn high profit.
Company have better brand impression and
this can help to premium pricing and helps to
expand in different countries.
Threat
Due to high competition in market there is
threat of different large companies in which
there are different companies can provide
better product on less price.
There is high threat from giant companies like
amazon and Tesco etc.

P6 Strength and weaknesses interrelate with external macro factors
Political- Global expansion of this organisation which is there in retail sector is high
along with this, there is flow in the trading which gives better response to the business which is
there in European countries. There different countries there is high need to understand the
political nature. This company have the information about analysis which can help this company
to expand its business. There is need for the political stability which is there in nature that can
help to get better business (Lambrechts, 2018).
Economical- during the impact of corona virus there were recession all over the world
and due to this demand of their product which was increased and this helped them to get better
and high profit to the company. In this, there were reduction on the taxes and due to this there
were benefit for the product to the company.
Social- This company is able to produce the product according to the demand of
consumers. This gives the contribution in the community. But there are different things which
should be managed in relation to find out the better outcome.
Technology- There is use of the technology which is there able to help the business and
can help in to create the awareness which are there able to provide better strategy production and
also help in manufacturing cost and accordingly improvement in their strategy.
Environment- This is the one in which company need to use the quality product which
can help to retain customer and help to increase the business.
Legal- There is change in the law and legislation which needs high modification within
the procedure and strategy of company. This leads to improve the company functions.
CONCLUSION
From above discussion, it can be concluded that there are different type of organisation.
There are different purpose of organisation. There is discussion about the size and scope of the
different type of organisation. There is also some relationship about the different organisational
function in which they link with organisational objectives and structure. There is also positive
nad negative impact of the macro environment of business operations. There is also internal and
external analysis to identify the strength and weaknesses of the organisation.