Analysis of Mark and Spencer in the Business Environment Context

This report provides a comprehensive analysis of Mark & Spencer (M&S) within the context of its business environment. It defines the purpose and legal structures of private, public, and voluntary organizations, using M&S, the Highway Agency, and Oxfam as examples. The report compares the size and scope of M&S with voluntary organizations like Oxfam, and examines the interrelation between organizational functions and mission statements. It details the positive and negative impacts of the macro environment on M&S's business operations, including inbound and outbound logistics, operations, marketing, sales, and services. Internal and external analyses are conducted, with a focus on how M&S's strengths and weaknesses relate to external macro factors, using SWOT and PESTLE analyses. The report explores various organizational structures like divisional, functional, and matrix structures and their impact on achieving business goals. The analysis covers primary and support activities of M&S to assess the organization's overall performance.

BUSINESS AND BUSINESS
ENVIRONMENT

Table of Contents
P1 Define purpose of public, private and voluntary organisation and their legal structure. . 3
P2 Description on the size and scope of Mark and Spenser in comparison to voluntary
organisation............................................................................................................................4
P3 Description on the relation between function of organisation in relation to achieve mission
statements. .............................................................................................................................5
P.4 Identify the positive and negative impacts the macro environment will have upon the
business operations of M&S...................................................................................................6
P5 Internal and external analysis............................................................................................8
P.6 M&S strengths and weaknesses interrelate with external macro factors.........................9
REFERENCES..............................................................................................................................12

INTRODUCTION
The business and business environment if a firm is inclusive of external and internal
factors of the organisation. This kind of factors are beyond the control of customers, manager
and employees of the organisation. It is very important in order to expand the business activities
so that business can grow in market for longer period (Introduction to business environment
2016). This assignment will focus the activities of Mark & Spenser who is distributing its
services as retail market and deal in the product like food, clothing, and many kinds of home
commodities. This report has to give consideration about the scope and objectives of the firm. In
addition to this assignment has to make evaluation in the organisation function of the business
enterprise in order to attend various goals and objectives of the firm. The entity is taking various
effective steps in relation to expand the business so that it can achieve higher profitability and
productivity. This report will determine the internal and external function of organisation by
using SWOT and PESTLE analysis.
P1 Define purpose of public, private and voluntary organisation and their legal structure.
Private (Mark and Spenser)
Purpose- The main aim of the private organisation is to provide ultimate satisfaction to the
customer so that firm can enhance its growth and profitability. They take various initiative in
order to analyse the taste and preference of consumer. In this way the revenue scale of the firm
can be increase.
Legal structure- The legal framework of the organisation is known as all laws and legislation.
The private organisation will perform their role in effective manner. So in that way they make
effective employment rights, customer rights and safe regulation as per the environmental issue.
Notes- The main object of the M&S is to provide qualified services so that there can be chance in
way to have improvement in relation between employees, customers, suppliers which work in
core manner to support all the organisation function (Popescu, 2013). This kind of activities will
help them to enhance the living standard of people. The legal framework of Mark and Spenser is
based on employment rights, consumer protection law who helps to serving better services to
customers.
Public (Highway Agency)

Purpose- the main aim is to provide good services to consumer in faster manner. They ensure to
promote economic development of country (Thompson and McLarney, 2017). The effective
transportation services always helps to achieve ultimate customer satisfaction.
Legal structure- it is comprises all safety rules and regulation of traffic. The government should
frame this kind of rules in timely and strictly manner. In this way every one will obey them.
Note- By deliver good and faster services with all legal compliance they want to enhance the
profit scale of the firm. This kind of activities are essential to full fill the demand and expectation
of the consumers.
Voluntary (Oxfam)
Purpose- The main object of his firm is to provide effective solution so that problem in relation
to poverty can be overcome (Popescu, 2013). This is very helpful as it empowers the people in
relation to provide safe, secure and suitable environment which is to be free from poverty.
Legal framework- This all are comprised with the rules and regulation of the organisation. In
this manly there this are important legal structure are as guarantee trust and unincorporated
association.
Notes- the main object is to provide good service to the people and render voluntary services to
them. This will help to promote economic development of the country.
P2 Description on the size and scope of Mark and Spenser in comparison to voluntary
organisation.
Size- the size of the private limited organisation its depends on the market share of the
business enterprise. It is also depends upon the availability of resources (Ramanathan, Bentley
and Pang, 2014). There are approx 87345 number of employees and they are having 1438 store
around the world. The maximum store are available in united kingdom.
Scope- The main objective is to deliver good services to the employees so that they can
perform in more effective and efficient manner. The ultimate focus of the company si to provide
better and good services so that they can full fill the expectation of the customer.
Notes- The size and scope of this firm is totally depends on its environmental changes.
The need of the customer can vary from time to time. It is very essential to cope up with this all.
They try to bring innovative services so that they can gather the attraction of the consumer.
Voluntary(Oxfam)

Size- In comparison with the market and Spenser the size of the Oxfam firm is limited. There are
total 2399 employees and 3500 volunteers. The size may be vary as per the timely manner.
Scope- the main object is to provide quality services to the people by taking effective steps in
relation remove poverty. In this way they can promote economic development to the country.
This will help to enhance the standard of living of people (Teece, 2010).
P3 Description on the relation between function of organisation in relation to achieve mission
statements.
The interrelationship between organisation structure of M&S play very vital role in order
to achieve determine goals and objectives of the firm. It plays very effective role in manner to
establish smooth function of an organisation (Roper and Davies 2010). With the help of this kind
of process all the workers of the organisation can work in more productive manner. The firm can
earn longer amount of profitability if the business enterprise is working without any hindrance.
The organisational activities so the firm are dependent of the mainly three kinds of structure
which are as follows-
Divisional structure- This structure is very helpful as they do their work in divisional
manner. In this there are various units of M&S who is responsible for carrying their own
individual business so that all the firm can run smooth function so that desire result can be
achieved (Ramanathan, Bentley and Pang, 2014). Each department of firm is having separate
manager who is responsible for carrying day to day function of the other workers. In this manner
he can guide their co workers to perform better. With the help of this kind of working the each
manager of the department of can take effective decision so that all can perform in more efficient
mode. The worker of the each unit has to report to the manager in individually manner. The
manager has to keep his eyes on the function of the all the departmental activities. This kind of
activities help the organisation in way to passing of information easily so that all worker can be
timely communicated (Prajogo, 2016). The work is divided into various units are as clothing for
one segment, bakery for one etc. this kind of working is essential to carry all the business
function so that firm can attend the desire objectivity. This will assist perform the function in
given time with optimum utilisation of resources. In this way firm can enhance its growth and
development can be possible in enterprise.

Functional structure- in this all the organisational function of firm is divided into
various kinds of separate function so that the competitor of performing business function can be
decreased. Under this structure there are various kinds of units are as human resource
departments, production department, marketing department, sale department and customer care
department. In this kind of structure the all units of the firm work in separate firm but they are
internal connect to each other in relation to passing information (Popescu, 2013). This kind of
working will help to making products and provide services as per the needs and expectation of
market and customers. The firm should work in coordinated manner so that desire profitably can
be achieved.
Matrix structure- in this kind of structure the information is passes in higher to lower
manner. This kind of activities is very essential in manner to achieve long term profitably of the
business. This will help in way to implement the all function in effectively way so that firm can
achieve the desire profitability and productivity (Naranjo Valencia, Sanz Valle and Jiménez
Jiménez, 2010 ). The belief to give proper training to their employees so that all can work in
coordinated manner. The staff of the business enterprise should be teaming up as per their
comfort level which is very helpful in order to overcoming internal weakness of all the
department. This kind of activities are very helpful in manner to hinder the operation of business
efficiently.
In addition to this the main purpose behind implementing this structure is to that all employees
can have clear goal and they perform all the function in one common direction. This kind of
working help to provide path and can assist the employees in execute their role in efficient
manner. The M&S is playing very effective process in order to achieve the aims and objectives
of the firm.
P.4 Identify the positive and negative impacts the macro environment will have upon the
business operations of M&S.
For every organisation it is important for them to bring their better operation to achieve
the objectives. The positive and negative impact of the macro environment is to identity the
various factor to fulfil the requirement in better operation of M&S:
 Primary activities: for every organisation the most important primary activities is to
give better service to the customer and achieve their mission and vision with better
management (Elkington 1994).

 Inbound logistics: as the organisation have the most important factor is the inbound
logistic in which the raw materiel devilry in the organisation depends on their better
system. If the inbound logistic will be better the other operational work can be done
easily.
 Out bound logistics: as the inbound is better but the outbound logistic bring hindrance
on the customer availability of stock at the different store. As the retailer are not happy
with the M&S due to slow process of their outbound logistic of goods.
 Operations: as these the most important aspect for every organisation that is the better
operation if the use of various operational strategies so that operation of the M&S can be
done in a effective manner (Eifert, Gelb and Ramachandran, 2005). As result the
management has decision to bring the various software for better operation activities to
save the time and cost of organisation. As the M&S has used the paperless work in the
organisation for rapid operation.
 Marketing and sales: theses the most important aspect for the organisation as the
effective marketing division. The promotion method adopt by the marketing team to
increase the sales of the M&S. As the sales team is not working well as the cost of
marketing is already in huge way with different advertisement and other promotional cost
can be burden for the organisation.
 Services: if the sales team is not working well than the adverse impact will be on the
service. As the customer are not treating well in different stores of M&S and they are not
happy with organisation services.
 Support activities: for every organisation support activities are the internal factor for the
organisation which will help to improve the operation of organisation.
 Firms Infrastructure: if the proper infrastructure of organisation can help to bring better
environment in terms of store capacity at store room and the various tools and equipment
used for the different purpose are better and advance which will help to improve the
M&S operations.

 Human resource management: as these the most important division in the organisation.
Human resource management is responsible for the various changes in terms polices and
promote the quality employee to improver the operation in M&S.
 Procurement: as the goods and service availability is also the better in the M&S. As the
suppliers are local and they have well coordination with marketing and production team
for better operations.
 Technology: As the new technology have been adopted by the M&S which can give
better production quality and it will save the time and cost of the organisation.
From the above macro environment factor the impact of positiver and negative on
operation be easily identify.
Positive impact: these are the impact from the support and primary activities of M&S.
 Inbound logistics: it is the positive impact for the M&S in which the availability of raw
material for the production process is far better than the other competitor which will give
better operation in organisations.
 Technologies: as the adoption of new technology for the product development can bring
better quality products and time and cost of organisation can be saved with such changes
to improve the operation of M&S.
Negative impact:
Marketing and sales: these can be the major impact on the M&S as the marketing and sales
team are not able to attract the customer. Also the marketing team is expending more on the
different types of promotion which is burden on the organisation and improve the operation due
to lack of funds.
Services: due to low performance of the marketing and sales is impact on the organisation
service which will bring the poor operation of M&S.
P5 Internal and external analysis
External analysis
 Political factors: As the government intervention on the organisation have the major
influence on the customer. As the new policy announce by the government for tax is

burden on M&S. Unhindered commerce assertions and European mix has opened up new
markets for the UK and different associations and nations to put resources into Europe.
This has extraordinarily influenced M& An and has made it contend energetically in
order to keep up its position and piece of the overall industry with inventive and forceful
systems.
 Economic factors: As the economic condition of the united kingdom is already in not in
control which bring the inflation as the price of raw materiel and other variable expense
have been burden on the M&S. As the customer have been not able to spend more money
on the luxuries goods at this situation is influenced on organisation sales. Recognize the
positive and negative effects the large scale condition will have upon the business
operations of M&S.
 Social factors: As the social factors of the organisation can be the customer and other
stakeholder of the organisation. These will help to set the brand and according to market
organisation also influence the society with different activities. Purchaser's tastes,
inclinations and way of life changes have displayed the two dangers and open doors for
the UK retail industry. Shoppers in the UK have the inclination of being faithful to one
brand and the nature of items.
 Technological factors: In the UK retail industry had update of technologies giving the
hindrances for the business and business environment. As in the M&S paperless
operations are being utilized and IT frameworks have offered a reason for this operation.
Web based showcasing is likewise another mechanical perspective being utilized by
Marks and Spencer and other retail organizations in the market as a reason for upper hand
in the commercial centre.
 Environmental factors: As the major factors of the organisation can be influence the
environmental. That can be the pollution create by the organisation resources can be
hindrances for the environment have impact on the M&S performance. Due to
environment concern in the UK as the M&S focus on the fabric ad raw materiel with the
consideration of natural resources.
 Legal factors: due to various legislation have been made by the organisation it is
important to flows the M&S. As the current wage law is already burden on the M&S

which cause the finance as the high compensation have to pay for employee and other
labours (Child and Möllering 2003). The various issues which have bee faced by the
M&S for the taxation fraud due to amazon sales.
Internal analysis
 Strengths- The key strength of the organization is their brand and the number of stores of
M&S is more in comparison of the other competitor.
 Weaknesses- The major weakness of the M&S is their Marketing and sales divisions.
 Opportunities: M&S have opportunity to attract customer with different strategies of
marketing and improve the sales team to increase the sales.
 Threat: As the competitor can be the major threat for the organisations that can attract
M&S customer by providing better services.
P.6 M&S strengths and weaknesses interrelate with external macro factors.
M&S deal in a retailer sector and the competitors are advance in the industry. To make
the better organisation it is important to find out the internal and external macro factors will help
to generalise the Strength and Weakness of M&S as they have.
Strength: Their brand values is the major strength of M&S and the local supplier are
contribution in production process.
 Inbound logistic: As the M&S have the major influence of their inbound logistic bring
the better available of raw materiel also help in the rapid production in the organisation
(Miller, 1988).
 Social factors: For the organisation their stakeholders are the important aseptic for them
to improve the organisational performance. The employee are well behaviour and they
manage all the operation work in organisation.
 Technological factors: it is important strength for the organisation ans they adopt the
new technology for the product development and which will help to bring the better
service a well the rapid production process in then organisation. After the new
technologies adopted in the organisation the time and cost have been save which can be
beneficial for the other operational process.

Weaknesses: In every organisation weakness are the major hindrance to achieve business
objectives. From the macro M&S have the various weakness:
 Economic condition: As the united kingdom have the adverse economic condition which
brings the M&S more financial burden and it will influence on the business environment.
As the taxation policy have been effect on the organisation profits. Inflation in the
economy bring the higher price of other raw material and customer is not able to
purchase their products (Week, 2000.). After the Brexit, the more adverse affect can be
seen on the economic condition and unemployment cause the high wages demand from
the labour will be directly impact on the M&S.
 Legal factor: Due to the legislation impact M&S is not able to save their revenue. As the
wages law are more burden on the organisation. The more the legal factor will be burden
on the M&S their performance will be diminish. Due to the taxation issues M&S have to
pay fine which cause the high burden on the financial position of the organisations.
CONCLUSION
From the report business and business environment have the major influence on the on
some of the external and internal factor of the organisation. As the M&S is the biggest retail
organisation which deal to quality products. As the political factors and economical factor have
major influence on their business. Due to some legal carnage shave been affected on the
operation of the organisation as the directly burden on the budget of the organisation. Change in
new technologies bring the higher production and the availability of the goods and service to the
customer will be faster than before. Also organisation will save the time and cost with new
adoption of technology for production process. Strength as the social and outbound logistics will
attach more customer for the mark and Spencer but some of the weakness such as economic and
service factor will bring the organisation goodwill on other direction.

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