Regent College - HND Business: Business Environment Analysis Report

This report provides an in-depth analysis of the business environment, focusing on Marks and Spencer (M&S) as a case study. It begins by exploring different types of organizations, including public, private, and voluntary sectors, along with their purposes and legal structures. The report then examines...Read More

Business and Business
Environment

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Types of various organisation and its purposes....................................................................1
P2. Size and scope of various organisation.................................................................................1
TASK 2............................................................................................................................................2
P3 Relationship in between functions of different enterprise.....................................................2
TASK 3............................................................................................................................................5
P4 Positive and negative impact of macro environment upon business operations....................5
TASK 4............................................................................................................................................6
P5 External and internal analysis of enterprise to identify strength and weakness ...................6
P6 Strength and weakness interrelate with external factor.........................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business Environment is basically defined as the sum of all the external as well as
internal factors which can impact the business greatly. There is a requirement of making the
people work together and help each other to enhance their skills and performance of the
company. There is relation between external factor and internal factor which work hand in hand.
External factors affect the internal factor and they both are dependant on each other. Some times
these factor can be uncontrollable and affect the businesses adversely. They are called external
constraints. This report is based on Marks and Spencer, which is a British international retailer
company whose headquarters are located in Westminster, London. Their main businesses is of
clothing, home products and food items(Ahmed, and et. al., 2011). It was established in the year
1884, by two people Michael Marks and Thomas Spenser. Also they try to see products like
Kellogg Corn Flakes. For public sector, the company used is Tesco PLC and for voluntary
sector, Oxfam is used for its description. The main purpose of this report is to describe various
types of organisation that include public, private and legal structures. There is also a relationship
that is established in this report between the different types of organisation. All these factors help
in achieving organisational goals and objectives. There are macro impacts on the businesses
ideas which are positive as well as negative.
TASK 1
P1. Types of various organisation and its purposes.
Covered in PPT.
P2. Size and scope of various organisation.
Covered in PPT.
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TASK 2
P3 Relationship in between functions of different enterprise
M&S is a international retail enterprise in British which is famous for its large as well
high quality product and on quick services which attract large such as million of buyers.
Basically it masters and specialised in a selling house hold and clothes products across domestic
and international boundaries by completing the requirement of different buyers. The main aim
and objectives of an enterprise is mentioned are:
Emergence of creative products: Trying to lunch and introduce innovative and attractive
products like cloths with best fashion trends as quality achieve on changing buyers needs and
wants to be provided with latest brands.
Choice of society: Examine the preference and taste of available buyers. It is very important
because it design the company products regarding to them so that goods sales can be increased.
Expansion: Cited company should be expand their business in over national boundaries by
improving as well as developing import and export activities (Auzair, 2011). This type is very
essential because it cover the whole market across their boundaries.
Buyers needs: Customer is very essential part of the marketplace. Evaluation of buyer require
and try to reduce as well as solve it in a minimum time duration. It means various persons have
different demand regarding to their social culture, choice and interest etc. therefore it provide
with their best and preferred goods in order to fulfil them on their buying process.
Quality enhancement: In this way, they just need and want to develop such as improve their
product quality and focussed on it for fulfilling various buyers. As awareness and education
among public has upraised to a best floor this has maximized pressure on the business to keep
the effectiveness in their result. Buyer before purchasing any particular good differentiate the
balance with the others in same location therefore it is needed that national trade is able of
actually selected across the another different alternatives.
Profit maximization: It is a one of the main aim and objectives of M&S is to create large
revenue by decreasing their failure.
M&S is a international leading retail company whose main objective and aim is to provide better
service and product to their desired as well as target consumers(Barnett, and Salomon, 2012). In
this way there are different number of functions which is create by cited company to perform
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their activities and task in a effective way. There are several functions of enterprise is divided
into different sector which are mentioned are as follows:
 Marketing and sales
 Human resources management
 Administration department
 Finance sector
 Research and development
 Manufacturing sector as well as department
All of these mentioned department plays a important role as well as functions in attaining the
cited company target as soon as possible by completing the requirement such as demand of
national as well as international buyers. According to this, it is a helpful and useful technique of
achieving the goals and targets of a particular sectors which are explained as follows:
Finance: Capital is needed in every organisation because it is a backbone of overall firm either
large and small because whole the activities are specified as well as based on monetary terms
(Boons, and Lüdeke-Freund, 2013). It is very important to create large such as maximum
revenue by keeping the proper information and records of a financial statement. It is a one of the
vital role and responsibility of this sector is to evaluate future cost by determining requirement of
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Illustration 1: Organisations functions

capital fund and try to manage access garbage of a business. Cited company need and wand to
record all the important assets which is invested in an organisation.
Sales and marketing: Main aim and objective of this is to maximize their sales by representing
the minds of different consumers. They are libel to create the situation of current market by
understanding the policy as well as strategy of their challenges. Directors of marketing
accomplish different important functions for includes advertising as well as promoting services
and products across domestic borders by embracing different useful methods and tools.
Human resource development: The role and responsibilities of this department play important
duties to recruit and select new candidates for the vacant position. This sector are liable to
perform different important activities and functions like coordinating, controlling, organising and
staffing etc. the main motive of HR division is to appointing a perfect person at a specific
position on the basis of their skills and knowledge(Borio, and et. al., 2014). Therefore they
required to managing whole enterprise in a effective way by completing the vacant place of a
business.
Administration: All the activities and task are controlled and managed by this sector which
means they are capable to doing different activities by giving important fund. In other
administration of a M&S trying to inspired as well as motivate their workers towards enterprise
values by helping them financially and mentally.
Research and development: Cited company wants to collect proper data and information which
is very helpful and useful in expansion activity of a existing business. In the other hand, they
execute this tools to improve its current product quality by considering needed sources for
example preference and taste of a different buyers.
Manufacturing department: It is a one of the most function of an enterprise it to supply
qualitative goods to fulfilled their desired such as target customers with their creative and unique
minds (Bryman, and Bell, 2015). Regarding to this activity of an economy, they manufacture
catchy and attractive products about various customers demand.
Apart from cited company play and perform all this important functions to grow their company
quickly such as smoothly by achieving its objectives and goals in a specific time duration.
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TASK 3
P4 Positive and negative impact of macro environment upon business operations
Mark and Spencer is a leading food and clothing retailer company in United Kingdom.
They having its different branches at international level with 800 stores in arccos 30 domestic
boundaries. It is a board approach they are more influence by external environment which have a
large effect on their business indirectly and directly. In essence macro factor have a direct effect
on this cited company because it is difficult as well as uncontrollable to influence different
elements. In this way it is very important to control of a company to analyses its impact for
applying different strategies to manage their obstacles and issues(Chang, and et. al.,2011).
Therefore for informing the crucial effect on a company by macro environment they need to
running a PESTLE analysis which are as follows:
Political factors: Regarding to this, there are various governing bodies have effected large
number of regulations, rules, beliefs and norms for supporting the buyers and sellers from
cheating or any utilization. Apart from cited company need to plan several through in a specific
manner by keeping the central government rules which is important thing for overall firm.
Economical factors: In present condition, nation economy is very much risky due to exposure of
innovative rules and laws which impact whole industry. This factor have direct effect on Mark
and Spencer because they stand their strategies and policies regarding to requirement at a
workplace. Along with company's gross domestic product also much impacted by cited factors
due to essential role played by it.
Sociological factors: In this factor, company focussed on product design and choice of overall
society regarding to them because they are last user of services and products. An individual
consider in manufacturing items by believing personal preferences and taste which is one of the
essential source of a production. Largely satisfaction of social group is a reason behind highly
success of an organisation.
Technological factors: This factor is very important because it specified advanced technology.
This kind enhance the actual policies and strategies of a business which is very much helpful &
useful in fulfilling the activity as well as task in a minimum time duration(Chavis, and et. al.,
2011). Therefore cited company adopted innovative equipments for executing best decision.
Creative idea is needed because it raising the workers and company standard.
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Legal factors: According to this factor have large number of legislation are revised by legal
bodies to support the workers and customers rights in a effective manner. The main motive of
this factor is to generate a free environment from any inequality and discrimination. Therefore
lawful responsibilities have accepted different laws which must be examined while organising a
successful business.
Environment factors: Regarding to this factor have a large effect on cited company indirectly
and directly in various kind due to its significant duty towards achievement of objectives and
goals. All resources are very essential because they are acquired buy surrounding like Labour,
land and building, raw material or plan & machinery(Chesbrough, and et. al., 2014). Cited
environment influence the business success in various way due their vital approach.
TASK 4
P5 External and internal analysis of enterprise to identify strength and weakness
Mark and Spencer is a international leading brand which expanded over the seas by
having different see able weakness and strength which impact whole internal environment of an
industry in different way. SWOT analysis is very useful as well as helpful in identifying
concealed barrios of an organisation which is impact company success. The main aim and
motive of this approach is referred enterprise leaded SWOT with the support of experienced and
specialised people which are as below:
Strength: It is a one of the vital advantages of a business in their best qualitative goods which
categorized its products from their challenges subsisting at a marketplace. Cited company
consider in satisfying foreign and domestic buyers. Mark and Spencer is a international brand
and that is generating a relations and friendly environment in between lower and higher
level(Crane, and Matten, 2016). M&S is the giant of the United Kingdom large street is famed
by every one in the workplaces for the quality it is giving in the previous year. The main strength
is there are large number of outlets and stores.
There are different other strength of a cited company are:
 Accessibility of substitutes
 Company have their own branded labels.
 It is one of the best powerful international retail brand with a high of the brain recall.
 Over 80,000 workers from a kind of the workplaces economically
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 Business has over 1000+Retail stores instant across 40 countries. Cited company are see as “value of money”due to product quality, convenience etc.
Weakness: Due to different number of enterprise there are various invisible weakness which
impact the company success in a effective way. Therefore many weakness of a Mark and
Spencer is mentioned below:
 Product price is very high
 Limited market share
 There are strong competition from different retail brand.
 Bad promotional technique as non trendy store
 Manual working maximizes the costs Stressful environment which are demotivate the employees of an enterprise
Opportunities: Maximize in exchange of products and services at foreign level appears the
chances of raising company's revenue (Demil, and Lecocq, 2010). Market segmentation is
determine the best process of splitting buyers in a market place into various groups. There are
different number of opportunities are as below:
 Cited company can develop as well as develop their website
 Internalization- maximising the global presence.
 Various future opportunities are there in expanding their product brand into India &
China
 They can introduce innovative market division that offer more profit
 They enhance their strategies by obtaining inspired by their challenges. Discloser of creative minds and innovative ideas motivate M&S to enhance their goods
quality and features.
Threats: Advancement technology is very essential because it change in the buyer preference or
taste generate a major threat for M&S(Don, and Hou, 2009). Cited company have different
competitor includes Aldi, Asda, Tesco, Centra and Farmfoods etc. Basically is impact directly
on business success of an enterprise in different manner like:
 Decrease in sale due to introduction of innovative goods.
 There are many government policies for international retail stores.
After assessment of SWOT analysis an enterprise get sensible about their disadvantages &
advantages and try to get over all the being barrios faced by the M&S. The one of the main
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technique is to support whole industry from challenges and helpful in developing their hard
situation.
P6 Strength and weakness interrelate with external factor
SWOT is a internal and PESTLE is a external analysis is more useful and effective for
M&S because it assist in determining macro and micro environment which plays a important role
in achieving the targets and goals of a business in a minimum time duration. External and
internal sources are similar with each other due to their responsibilities and role towards
mentioned organisation. It also define the individuals demand then operational sector of a M&S
must be impacted due to its vital approach with multiplex nature. Internal and external, both are
connected with each other because of their essential duty played in an enterprise. SWOT is
mostly exist of whole sources which impact company internally(Edquist, 2010). When PESTEL
consist the different external components of rules and regulations approved by governing bodies.
Main objectives of swot in various from pestle which are as follows:
 Internal factors of PESTEL analysis wanted to rectify whole the inside problems of
employees, customers, suppliers, whereas this source consider all the believes and
knowns stand by government bodies for generating a surround free from any prejudice.
 Improving as well as developing current obstacles and issues existing in an enterprise.
 Product price is more impacted due to change in a sources.
 Helpful and useful in resolving different issues and problems.
 Allotment of important factors for manufacturing new and innovative goods.
 Gathering of perfect and accurate information as well as data by leading best research
programs.
 Suitable approach of hedging uncertainty.
 Evaluating future cost of the product.
All points are shows an effective link between internal and external surround due to their duties
towards success of an enterprise (Grimpe, and Kaiser, 2010). On firms to this, it has been be
seed such as understood that both resources are more necessary for running either large or small
organisation. Regarding to above information it has be showed that both are connected with each
other in various way which impact business success because these technique are useful and
helpful in decision-making and planning process.
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In further, PESTEL and SWOT collect important data and information which is needed in
executing an impactive strategy as well as policy for satisfying the buyers need and demands
(Helms, and Nixon, 2010). Therefore this tools is used by the M&S buy understanding the
information related to customer and overall society taste & preference by conducting assessment
activity.
CONCLUSION
From the above report, it has been analysed as there exist different types of organisations
which has its unique features and their own aims and objectives. There is proper connection
among these establishments which is explained in this report. All these factors are basically
required for achieving company's goal and aims. There is great influence of the macro impacts
on the business which affects in positive manner and also in negative manner. In this report there
is internal as well as external analysis, which includes SWOT analysis. In the last there is a
conclusion drawn between relationship of external & internal analysis with the macro factors.
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REFERENCES
Books and Journals
Ahmed, I., Aamir, M. and Ijaz, H. A., 2011. External factors and entrepreneurial career
intentions; moderating role of personality traits. International Journal of Academic
Research. 3(5).
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control systems: a study of Malaysian hotels. International Journal of Business and Social
Science. 2(13).
Barnett, M. L. and Salomon, R. M., 2012. Does it pay to be really good? Addressing the shape of
the relationship between social and financial performance. Strategic Management Journal.
33(11). pp.1304-1320.
Boons, F. and Lüdeke-Freund, F., 2013. Business models for sustainable innovation: state-of-the-
art and steps towards a research agenda. Journal of Cleaner Production. 45. pp.9-19.
Borio, C., Drehmann, M. and Tsatsaronis, K., 2014. Stress-testing macro stress testing: does it
live up to expectations?. Journal of Financial Stability. 12. pp.3-15.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Chang, Y. Y., Hughes, M. and Hotho, S., 2011. Internal and external antecedents of SMEs'
innovation ambidexterity outcomes. Management Decision. 49(10). pp.1658-1676.
Chavis, L. W., Klapper, L. F. and Love, I., 2011. The impact of the business environment on
young firm financing. The world bank economic review. 25(3). pp.486-507.
Chesbrough, H., Vanhaverbeke, W. and West, J., 2014. New frontiers in open innovation. OUP
Oxford.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Demil, B. and Lecocq, X., 2010. Business model evolution: in search of dynamic consistency.
Long range planning. 43(2). pp.227-246.
Dong, M., Wu, C. and Hou, F., 2009. Shortest path based simulated annealing algorithm for
dynamic facility layout problem under dynamic business environment. Expert Systems
with Applications. 36(8). pp.11221-11232.
Edquist, C., 2010. Systems of innovation perspectives and challenges. African Journal of
Science, Technology, Innovation and Development. 2(3). pp.14-45.
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Grimpe, C. and Kaiser, U., 2010. Balancing internal and external knowledge acquisition: the
gains and pains from R&D outsourcing. Journal of management studies. 47(8). pp.1483-
1509.
Helms, M. M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of
academic research from the last decade. Journal of strategy and management. 3(3).
pp.215-251.
Hoang, H. A. and Rothaermel, F. T., 2010. Leveraging internal and external experience:
exploration, exploitation, and R&D project performance. Strategic Management Journal.
31(7). pp.734- 758.
Jung, H. S., Kim, Y. and An, J. A., 2011. Effects of the Internal and External Factors of Small
and Mediumsized Corporations on Green Management Performances through the
Establishment and Utilization of Information Systems and Building Relationships for
Information and Knowledge.
Online:
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