Comprehensive Business Environment Analysis for Mark and Spencer

This report provides a comprehensive analysis of the business environment, focusing on Mark and Spencer (M&S). It begins with an introduction to business and its environment, followed by an examination of the interrelationship between different organizational functions within M&S, including finance, HR, marketing, R&D, and IT. The report then delves into the impact of the macro external environment on business activity, utilizing a PESTLE analysis to assess political, economic, social, and technological factors. Furthermore, a SWOT analysis of M&S is presented, along with an exploration of the interrelation between strengths, weaknesses, and micro factors. The report concludes with a summary of the key findings and provides references for further reading. The report highlights the importance of understanding both internal and external factors for business success.

Business and Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 and P2................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
P3 Relationship in between different organisation functions. ...............................................1
TASK 3............................................................................................................................................4
P4 Impact of macro external environment of business activity.............................................4
P5 SWOT analysis of Mark and Spencer ..............................................................................7
P6 Interrelation between strength and weakness with micro factors.....................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business is an entity which is mainly involved in the provision of products and services
to the costumers, they serve as a director of the economic activities, the business is mostly
privately owned or it can be owned publicly, the goods and services which are produced or
made through them is then allotted to the market so that people can buy it and use it. Business
environment is the surrounding in which the organisation use to function their activities, the
business should its environment and should study about it properly so that they can be able to
maintain (Aterido, Hallward-Driemeier and Pagés, 2011). There are various people which works
in organisation and it is even there responsibility to look after the environment of firm and they
have to maintain it properly. Business have two types of environment which internal and
external, and both of that has to be taken care and has to study about it. Mark and Spenser is a
multinational retailer store which provides various products under the roof, it is in UK, the below
report will be based on this company and in this assessment different types of business is being
defined and there size and scope. It also contain the functions of various departments in
organisation and the impacts of macro environment of the firm and its SWOT analysis is being
defined which will help the reader to know about all the things which is included in business
environment.
TASK 1
P1 and P2
Covered in PPT
TASK 2
P3 Relationship in between different organisation functions.
Mark and Spencer is a retailer company which is having various products so that people
can purchase all the required material from one place, they are providing better quality and
affordable price products to the public (Avramenko, 2012). To serve better to the public and run
there business in smooth way they have to focus on there various departments which is over
there. In an organisation there is different departments such as: financial, IT, HR,R&D and
Marketing department. All these department plays most important role in firm, so all have to be
focus on all the different types of department, departments in M&S:
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Financial department- In this department all the work which is related to finance is
maintained. They keep all the financial records which is done or which is going to happen in the
firm. All the money which a firm is having is been record by the finance department and they
have to take care of it and it is there duty to provide required money to the other department and
record them properly. Any of the work which is done by money has to contact to the finance
department to settle it (Commander and Svejnar, 2011). For doing marketing and to manage all
the work related to the day to day activities needs money and all that finance is paid by this
department and they know how and when the money is required for what all task. This unit is
interconnected with all division which are in M & S because they have to provide sufficient fund
to them; therefore, they will accomplish their work in an effective and efficient way. It is
fundamental duty of each this department to provide proper fund to other division so that they
will be able to accomplish their work effectually. It enables them to attain coveted targets and
objectives within certain period of time. If an enterprise is having an effective brand image then
they will easily obtain finance from banks or other institutions for them so that they will run their
business in a proficient manner.
Human resources department- human resource is a department which manages all the
work related to the human working in the firm and they use to make avail the required and safe
environment to the employees so that they can manage to do their given work/ task properly and
effectively. They take care of all the things which is related to the employees and they provide
salary to them and their main duty is to recruit new people as soon as any post is vacant. It is
their responsibility to select employees. This department is interlinked with operational division
as if people are much capable then they will complete their task with maximum effectiveness. As
a result, profits and market share of enterprise will get enhanced. It is fundamental duty of an
enterprise to appoint skilled and talented individuals; therefore, entire work will get completed
within limited period of time. In this aspect, management need to tie up their working with with
other divisions like marketing where they become able to determine what kind of position is
vacant in an organisation. This support and assist them to hire and determine such individual
whom have potential to do marketing job of any kind. This will assist them in accomplish targets
like sales enhancement which direct reflect on profit margin of a company.
Marketing department- This department helps the company in promoting their firm at
various places and make people more aware about them. There main work is to make aware
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about company and its new products which they launch in market place and to all people through
various channels (Dahan and et. al., 2010). After producing of a product it is there duty to
connect and aware more people about them, as much effective they will work they can attract
more customers. This division is associated with finance unit because if they are having an
adequate amount then, this will assist them to conduct marketing in an effective manner. As a
result, they will able to attract attention of numerous people towards their goods and services.
Research and development department- They use to do research at various places and
through different sources so that they can be able to find better informations and ideas which will
help them in developing the required things in there firm. This department collects the required
information from market and pass it to the other departments so that they can work further and
after supplying of the products in market they do research and try to find what more things are
required by the customers and what all changes they have to do. This department is related with
marketing unit because they need to identify needs and wants clients; therefore they will
accomplish it within limited period of time. Additionally, will compete competitors at
marketplace. This is a department which take care of equipments which they use such as
computers, machines, all the electronic items so that all the work should be done smoothly, and
at the time of marketing they provide help to do marketing with different and suitable method or
better and new technology. This unit is interrelated with HR as they need to hire best and suitable
candidate for this division. Along with this, if they need training session then, manager has to
provide it accordingly. This department need to cop up with other functions as well like HR
department where they enable in providing appropriate information about new technological
advancement so that recruitment process become easy and appropriate. This will going to enable
them in accomplish business objectives properly where number of appropriate individuals are
more at association.
Henceforth, it has been examined that each department of M & S is much connected with
each other. Amongst them, finance division is associated with all units which are working in
organisation. It is essential for them to do marketing in an effective way so that they will easily
accomplish needs and demands of their customers. For this, they require proper amount of fund
as it assists them to do entire activities effectively. Rather than, for production they need
sufficient fund; thus, they will manufacture goods as well as services as per their needs and
requirements. It will help company in improvisation of their revenues and market share. Thus, it
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get understood that each department of an association is interlinked with each or will depend on
each other for accomplish of coveted targets and goals.
(Source: M&S, 2015)
TASK 3
P4 Impact of macro external environment of business activity.
Mark and Spencer is a multinational retailer store which provides various products to
public and it is having stores at various places, it is very important for them to know about their
macro environment and for that they have do PESTLE analysis of there organisation. This will
help them in knowing properly about what all thing are there which is having a great impact on
there firm and after knowing it they can be able to make some plans which will provide them aid
in facing that issues. Macro environment can have positive as well as negative impact on the firm
so they have to take care of it (Gebauer, Paiola and Edvardsson, 2010). Some of the factors
which is involved in the macro environment is described below with its positive as well negative
impact:
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Illustration 1: Organisational Chart of M&S

Political factor- This factor is mainly based on rules and regulations, this have a high
impact on the working organisation because the working is mainly depended on the parties
which is ruling over the place in which they are having there organisation. An organisation has to
follow the conditions which is in market area so at some way it can benefit the people and at
some point this can affect them.
 Positive impact- At some time political factor is in favour of company at that time firm
gets a chance to connect with customers as at that time they can be able to provide
products to them in low cost.
 Negative Impact-After some time period political parties get change and the policies are
being changed according to them so that can affect the firm.
Economic factor- This is a factor which is affect the profitability, price, demand and cost of
products, if economical condition of the environment in which firm is working then it will create
problem to organisation in many ways as they cant be able to launch new technologies, and can
to earn more profit as if economy will be low then people would not be able to afford high price.
And if economy of a place is good then it can help the company properly.
 Positive impact- If economy is good then it will help the firm in performing their day to
day work in better and smooth manner and that will also help them in investing of more
new technologies (Halbert and Ingulli, 2011)
 Negative Impact- If the economical condition of a place will not be good then it can
become problematic for a firm to make new new things and to provide better products to
customers. 42766
Social factor- People are required of new products and they want food items which is ready to
eat as now a days people do not have time. And the products which is produced by the firm has
to be beneficial for the society and it has to be liked by the people of the society.
 Positive impact- It can be beneficial for the firm if they will produce products which is
good and beneficial for the society.
 Negative Impact- if they will not be able to provide products and cant be able to work
according the society then it will be problematic for them and can impact badly.
Technological factor- In this modern world it is very important to be connected with new
technologies so that it can provide help (Hamilton and Webster, 2015). To be connected with it
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helps in working in new way, firm should always be upgraded with the technologies so that they
can be able to perform their day to day activities smoothly.
 Positive impact- If Mark and Spencer will use new techniques in their day to day
activities then it will helpful for them in getting done their business in better way.
 Negative Impact- If the org42766 anisation is not upgraded with the new technologies
then it will create problem for them in performing of the activities, and they will face lot
of problems. If Mark and Spencer will not be able to use new technology then it will
create issues to them as they can be able to attract people in more number to their firm.
Legal factor- It is related to the law and rules, this factor plays very important role in firm. It is
very important for the firm to follow all the rules and regulations which is issued by the
government. Mark and Spencer provide various products to public so they have to be careful
before keeping the products in their store, for keeping of some products they have to take licence
for that the only they can be able to sell it (Kang, Lee and Kim, 2010). If the rules and regulation
are not followed by them then it can be problematic for the firm.
 Positive impact- if the firm will follow all the rules and laws then it can will be
beneficial and if they will have licence of the products which required to have
government permission then they can easily sell it to the customers.
 Negative Impact- If the laws which the government is made has to be followed and if
not then it can create issues and have negative impact on them. If they will not follow it
then government can take strict action on them
Environmental factor- This plays important role as that have to kept good and it should be
maintained properly (Klapper and Love, 2010). It is everyone's duty to keep it clean and safe.
Environment can have impact on the firm as there is many factors which will affect the firm in
negative or positive way.
 Positive impact- If the company will produce products which is environmental friendly
then it help firm in keeping environment safe, they should even provide products with
less carbon in it and less chemicals which is harmful for the environment. This will be
beneficial for both the company and for environment, and will even aid in providing good
quality product to the people.
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 Negative Impact- If the products and services which the firm is providing to the
customer is not suitable according to the environment then it would create problem for
them.
P5 SWOT analysis of Mark and Spencer
SWOT analysis is helpful for an organisation to know and analyse about their strength and
weakness.
Strength  It is one of a powerful retail brand, so it
can make people influence to buy there
products.
 They do have there own range of
products (Mahmood and Hanafi,
2013). It is beneficial for them as they
do not have to be depended on others.
 They also have there own brand label.
 It is having wide range of stores. Which
helps the firm sell there products at
different places.
 They have good relation with there
employees which makes the company
grow more (Oh, 2010).
Weakness  It have strong competition by the other
brands but they have limited market
share.
 It does not have focus on customers.
 There is no knowledge for the younger
generation about the market (Reinhardt
and Stavins, 2010).
 They provide poor service to the
customers as they do not give loyalty
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cards and fitting rooms.
Opportunity  They can be able to develop the
websites of there company.
 They can be able to introduce the new
segmentation of the market which use
to offer more profits to the customers
(Siewiorek and et.al., 2012).
 They have future opportunities as they
can expend there market brand in china
and even in India also.
 They can be able to focus on the
different age groups of the people in the
places where they have opened there
stores.
Threats  There other retailer which is in the
market is there threat as they provide
great offers and discount to there
customers.
 As a retailer globally they are being
exposed to the different political facts.
 The government makes policies which
the retailer has to follow (Teece, 2010).
 As now a days people wanted to
purchase things from internet so if they
would not have online site then it will
be threat for them.
P6 Interrelation between strength and weakness with micro factors.
Business environment can have a effect on any of the factors and it can affect internally
or externally, and the company has to take care and analyse both of the factors so that they can
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be able to solve the issues and can use the opportunities which the company can take advantage
with (Ullah and Lai, 2011). There are two types of environment which is micro and macro, It is
necessary to make proper analysis of these environment and for that there is some tools and
techniques such as SWOT which is to identify the Strength of the company and Weaknesses of
the company is having which they have to improve, Opportunities which they get and which has
to be utilized properly, and threats can also be identified so that they can do anything to solve it.
A SWOT analysis is here of the company;
SWOT Analysis
Strength
 Brand recognition
 Internal working environment
Weakness
 Working in the limited market
 Inexperienced employees
Opportunities
 New market segments
 Different geographical markets where
the company is not working
Threats
 Market competition
 Government policies regarding to the
retailers
To study the external environment it should have to use PESTLE analysis this helps in
knowing about positive and negative impact of political, economical, social, technological, legal
and environmental factors. All the environmental factors are interlinked with each other. These
external factors are linked with the SWOT, political and legal factor creating compulsion to
bound their acts. Better economic growth countries are opportunities for the company where they
can start their business.
CONCLUSION
From the above report it is being analysed that there are various factors which affects the
organisation in many ways and they have to be studied properly to make proper plans before any
issues will occur in the firm. Environment can affect the firm internally and externally, so they
have to study about both micro and macro environment of the Marks and Spencer. SWOT
analysis and PESTLE analysis of Mark and Spencer will help the reader to understand its
strength and weakness and other aspects.
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REFERENCES
Books and Journals
Aterido, R., Hallward-Driemeier, M. and Pagés, C., 2011. Big constraints to small firms’
growth? Business environment and employment growth across firms.Economic
Development and Cultural Change. 59(3). pp.609-647.
Avramenko, A., 2012. Enhancing students' employability through business
simulation.Education+ Training. 54(5). pp.355-367.
Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm
performance.The Review of Economics and Statistics. 93(1). pp.309-337.
Dahan, N.M. And et. al., 2010. Corporate-NGO collaboration: Co-creating new business models
for developing markets. Long range planning. 43(2). pp.326-342.
Fernando, A.C., 2011.Business environment. Pearson Education India.
Gebauer, H., Paiola, M. and Edvardsson, B., 2010. Service business development in small and
medium capital goods manufacturing companies. Managing Service Quality: An
International Journal. 20(2). pp.123-139.
Halbert, T. and Ingulli, E., 2011.Law and ethics in the business environment. Cengage Learning.'
Hamilton, L. and Webster, P., 2015.The international business environment. Oxford University
Press, USA.
Kang, D., Lee, J. and Kim, K., 2010. Alignment of Business Enterprise Architectures using fact-
based ontologies.Expert Systems with Applications. 37(4). pp.3274-3283.
Klapper, L.F. and Love, I., 2010. The impact of business environment reforms on new firm
registration.
Mahmood, R. and Hanafi, N., 2013. Entrepreneurial orientation and business performance of
women-owned small and medium enterprises in malaysia: competitive advantage as a
mediator.International Journal of Business and Social Science. 4(1).
Oh, S., 2010. New role-based access control in ubiquitous e-business environment. Journal of
Intelligent Manufacturing. 21(5). pp.607-612.
Reinhardt, F.L. and Stavins, R.N., 2010. Corporate social responsibility, business strategy, and
the environment. Oxford Review of Economic Policy. 26(2). pp.164-181.
Siewiorek, A and et.al., 2012. Learning leadership skills in a simulated business
environment.Computers & Education. 58(1). pp.121-135.
Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning.
43(2). pp.172-194.
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Ullah, A. and Lai, R., 2011. Modeling business goal for business/IT alignment using
requirements engineering.Journal of Computer Information Systems. 51(3). pp.21-28.
Online:
Organisational chart. 2018. [Online]. Available through:
<https://www.lucidchart.com/pages/organizational-charts>.
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