Business Environment Analysis Report for Marks and Spencer Company

This report provides a comprehensive analysis of the business environment, focusing on Marks and Spencer (M&S). It begins by explaining different types of organizations, including private, public, and voluntary entities, and then analyzes the scope and size of organizations like Tesco and HSBC. The report explores the relationships between various organizational functions, such as sales and marketing, HR and IT, and marketing and finance. Furthermore, it examines the positive and negative impacts of the macro environment on M&S, considering both internal and external factors. The report concludes with an assessment of the interrelation of strengths and weaknesses with external macro factors, offering insights into M&S's strategic positioning within its business environment.

BUSINESS AND
BUSINESS
ENVIRONMENT

INTRODUCTION............................................................................................................................... 3
TASK1................................................................................................................................................. 3
P1 Briefly explain the types of organisations.................................................................................................3
P2 Analyse the scope and size of organisation................................................................................................4
TASK 2................................................................................................................................................. 5
P3 Relationship between various organizational functions..........................................................................5
TASK 3................................................................................................................................................. 6
P4 Positive and negative impacts of the macro environment.......................................................................6
TASK 4................................................................................................................................................. 8
P5 Internal and external analysis of organization.........................................................................................8
P6 Interrelation of strength and weakness with the external macro factors...............................................9
CONCLUSION.................................................................................................................................. 10
REFERENCES ................................................................................................................................. 11
Books and journals.........................................................................................................................................11

INTRODUCTION
Business and business environment are broader and wider concept. Business
environment refers to culture that is maintained in workplace. Organisation mostly focuses on
their management and structure of the firm but environment is also crucial. A positive
environment results in positive relationship between employee as well as firm. With help of
business environment personnel behaviour and attitude is analysed(Hamilton and Webster,
2018). Every business maintain a peace in the environment so that goals as well as objectives
in appropriate manner. Firm growth and development depends upon business environment.
Marks and Spencer which is multinational retailing company headquartered in London, UK.
Company deals in various retailing accessories such as shoes, wallets, clothes etc.
Organisation main focus is on that employee morale is increased at rapid level and stability is
maintained in the enterprise. This report comprises of different types of organisation, size and
scope of various entities, organisational functions, positive and negative impact of macro
environment.
TASK1
P1 Briefly explain the types of organisations
Organisation is established with profit earning and social motives. Ample number of
functions as well as operations is performed by entities depending on their traits, vision and
mission. Business environment play vital role in such types of organisation. Every firm is
dynamic an different from each other.
Different types of organisations are there which are mentioned below-
Private organisation- Private organisation is those which are structured for the
motive of earning profit and acquiring more resources in the business. In private organisation
involvement of government is low because this firm are not control by the government. Sales
revenue market share, are being focused by private organisation. Business in such firm is run
by solely and all the risk, profit is bear by person who is running the organisation. Workload
and conflicts ios more in this type of organisation. In market, private organisation use
different strategies and tactics to survive in this era of competition. These type of organisation
are flexible in nature and cope up with changes and threats in appropriate manner. There
number of private organisation which are mentioned below-
 Sole traders- Sole traders are type of private organisation which run the business by
their own without taking anyone's help and make their own decision without any
interference of any other party. These sole traders act as single entity and are
responsible for risk as well as profit. Sole traders such as saloons, shops, cafes,
restaurant etc. Such type of organisation always strives for acquiring more customers,
market share, profit growth(Eling and Schaper, 2017). Sole traders mostly open the
business at small scale and profit as well as risk associated with firm is a also limited.
Decision making is enjoy by the owner because no other is involved in the process.
Degree of freedom of expression is high in this organisation.
 Private limited- Another types of organisation is private limited in which shares in
the firm cannot be sell to the public. In this, shareholders play vital role and decision
making revolves around them only. Finance and accounting team make ensures that
all the shares are within the firm and misuse of information or data is not done by
anyone. Private limited organisation such as JCB, Virgin Atlantic, Arcadia Group,
First source, green energy John Lewis partnership etc. Main advantage of such

organisation is that shares are easily transfered between the friends and belongings,
family etc.
 Public limited company- Further comes the public limited company in which shares
are used as source to the profit. In this company, shares can be traded and public
participation is involved at high degree of level. In such organisation, profit and risks
are shared by group of members or people who run the business. In public limited
company, it is important for firm to be aware about changes and trends in the market.
Public limited company such as Manchester United plc, boots company etc.
 Partnership- Further comes the partnership in which business is carried by two or
more than two people. Partnership is considered to be most used private organisation.
In partnership, profit, risk, outcomes all are shared by the partners equally. By going
through partnership, market share growth, opportunities become wide as well as
broader. Partnership mostly used the business for making parks, convention centres,
transportation facilities etc. Example- Red Bull& Go Pro
Public organisation-
Public organisation is those which are maintained and managed by government
bodies. Decision making in such organisation is time consuming and number of people are
involved. Mainly their motive is not limited to profit earning but also social welfare. Rules
and regulations are followed strictly by every firm. In public organisations, a systematic
procedure is followed to achieve the goals and objectives. For example- HSBC.
Voluntary Organisation-
Voluntary organisation are those type of organisation in which business activities are
carried out with motive of social welfare and to achieve the goals as well as objectives in
proper manner. Capital/ fund raising is easy because of the positive motive of helping the
society. Types of voluntary organisation are mentioned below-
Limited company- Limited company are those in which guarantee is limited and shares are
unable to issued. Freedom of expression is enjoyed by the members in the firm
P2 Analyse the scope and size of organisation
In organisations, strategies and tactics are implemented for the sustainability of the
business. But there are other factors which contribute to growth and development of business
such as size, scope, etc. With help of size and scope, company is able to perform efficiently
and in proper manner. Every firm focus on their size as well as scope which are mentioned
below-
Private limited-
Private companies are those which run for making profit and sales revenue. In these
type of companies decision making is done in proper manner because government
interference is not involved (Borrás, 2016). Private company such as TESCO, which is
multinational cooperation is generating profit and sales revenue and expanding its business at
rapid level.
Vision- Tesco main vision is to access the business worldwide.
Mission- Mission of customer is to provide services and quality across the globe.
Objectives- To acquire market growth and expand the business act international level.
Size- TESCO size of business as well as employee is rising at higher level. More than
4, 50,000 employees are working in the company.

Structure- In TESCO, hierarchical structure; top-down approach is used because
company is expanding its business and effective decision making is required.
Public limited-
Public limited company is those in which government is involved and decision
making is affect at deep level. These companies mostly run for providing social services in
the society (Domingues and et.al. 2017). Social welfare is first priority and then comes the
profit earning. Public limited companies are mostly run by government and freedom of
expression is at low level. For Example- HSBC Holdings
Vision- Main vision of HSBC is to be the first choice of organisations and customers
Mission- Mission of HSBC is to give financial services across the globe.
Size- HSBC is leading bank and is increasing its size worldwide and employee size is
2,32,957 and still rising.
Structure- HSBC, as it is public limited company decision comes from the top level
authorities and top-down approach is being followed by the company.
Voluntary Organisation-
These are those type of organisation in which main motive for running the business is
social welfare only and to achieve the common goals as well as objectives. These voluntary
organisation are also called non-profit organisation. Example- Cancer Research UK.
Vision- Main vision of Cancer Research UK is to remove the cancer from the medical
science.
Mission-Mission of CR UK is to provide cure for the every cancer suffering person.
Objectives- To provide a healthy environment in the society.
Size- As the organisation run for social welfare its operating size limited
approximately 3000 employees.
Structure- CR UK follows both top-down as well as bottom-top approach within the
firm.
After a brief analysis of above matter it stated that types of organisation as well as
size and scope are essential part of business. When starting a business it is important to
analyse the types of firm which is to be adopted. Size and scope helps in examining the more
opportunities and performance level of business in appropriate manner.
TASK 2
P3 Relationship between various organizational functions
In order to carry forward function of origination there are number of department in
firm for running it smoothly. This is strictly depends on employees for carrying out functions.
There are various departments in M&S which they have made for smooth working in
origination. These departments are marketing, HR, customer services and many more, all
department of firm are interlinked with each other (Alfes, Shantz, and Bailey, 2016). These
all department have number of relationship which are basic of firm success. Some of these
relationships are discuses below:

Sales and Marketing department: Sales persons are the basic needs of sales
department this is because it aid firm in increasing profitability and revenue generation which
is impossible without sales personal. On the other hand marketing department is useful in
promoting firms products through establishment of relationship between firm and customer
by attracting customer towards company product. Both the department play an important role
in M&S as works in forming coordinated strategy. These both will help firm in buiding
reputation in market.
Human resource and IT Department: Firm have their main attention in getting
resources which can help firm in getting advantage in business operation by using them in
well stated manner. This department have high range of responsibilities in providing quality
work to origination. In context of M&S there is good communication between both HR and It
department of firm. IT department guide the human resource manager about the needs in
origination by identifying staff requirement in firm. IT department also help HR department
by providing assistance in computer skills to their firm member of firm. The coordination
between both the departments of M&S help firm in getting advantage of smooth and digital
governance in firm.
Market department and Finance Department: Finance department consider as
backbone of whole firm in business market this is because it provides finance to all the
department of firm and also arrange finance for future operating of firm. There is close
relationship between both marketing and finance department of M&S. marketing department
of M&S finds the potential customer for firm and help finance department in arrangement of
fund for firm(Aydiner, 2019.). Finance department provide marketing department fund to
operate its function. This relationship helps M&S in finding more customers without wastage
of firm’s resources.
There are number of relationships between various department of origination this will
help M&s in growth and development which will also facilitate firm in knowing what is
going on in its different department. It also aid firm in analysing the situation of where the
firm is attending. Productivity and profitability of firm can also achieved through this
function by establishing proper management. Coordination between departments will also
increase motivation in employees and confirm the proper use of both human and capital
resources.
TASK 3
P4 Positive and negative impacts of the macro environment
M&S is one of the biggest and largest dealer and a lending firm in united Kingdome
which have its main business as a retail industry and merchandise dealer. It is a British
company which has its business all over the world. Firms business is affected largely with the
external as well as internal factors. External or macro factors are those which are beyond the
limits of origination and firm have no direct control over them; fir can identify these with the
help of various methods (Phadermrod, Crowder and Wills, 2019). The first method which
comes in mind is Pestle framework which help firm in identifying macro environment impact
on firm. Below the PESTLE analysis of M&S is mentioned:
Political factor: Political factor are those which includes number of factors like
government policy, taxation police of specific government, leader influence of any political
party, labor law formed by government, etc. all these factor have their direct and indirect
impact on firm working as well as polices for instance of M&S firm is dealing in number of
nations which have different government and their polices within their nations this have
direct influence of growth as profit of firm in these nations. Firm have to perform number of
functions which have to be maintained and performed ethically with benefit to both form and

consumer.
 Positive impact. Political conditions are now stable in UK which has impacted
positively on firm working and support growth environment in nation. Negative impact: Marks and Spencer have negative impact of terrorist attacks and
international wars on its functioning.
Economical factor: It is that function which includes economic condition of nation
where firm is working. It analyses the impact of inflation rate, interest rate, employment rate,
exchange rate and many on firm. This factor help firm in surviving in dynamic situation of
economy where firm has to use different methods to survive (Hamilton and Webster, 2016).
In context of M&S which is dealing in UK, which have strong economic position. This will
help firm in generating more revenue as it can set prices according to market and customer.
Living standard of people of UK is also high which will help firm in managing the market
according to it by lunching products.
 Positive impact: Strong economic condition will have positive impact on firm as it
will grant opportunity to firm for expanding its revenue and being profitable firm. Negative impact: Profitability of M&S has negative impact on firm this will reduce
customer trust in firm.
Social factor: These are those factors which are associated with beliefs, values,
perception, culture and tradition of individual. This will have its direct impact on firm
product sale. Company have to identify the needs of employees of origination this will also
help firm in getting access to new trade in market which are directly related to its product
development and design. This functional help firm in getting perfect information about their
competitor in market. M&S can use this to promote there improve their brand image in
business market.
 Positive impact: Firm can use this factor in promoting of their public image in
market and get the benefit of what is going in market. Negative impact: This have also impact on firm as negative, because some time
factors like market trend impact firm increase coat of their product.
Technological factor Technological environment is has its main role in attainment of
firm goals and objective for long run. Companies productivity and performance can be
effected because of regular updating in technology in context of M&S there is lot of scope
for innovation in technology in firm which help firm in getting perfection in work , firm have
also updating its software and other applications which can provides it more profitability in
firm (Zafar and Kantola, 2019). There are number of options which are available with M&S
for updating in its technology, this will aid in managing smoothness in firms work which help
firm in getting what it want from business world.
 Positive impact: Steady up degree on technology will enhance the success of Marks
and Spencer. With the help of this, administrators will be able to produce high quality
goods and services to their clients which will make more revenue for the company. Negative impact: On the other hand, regular adaption of technologies enhances the
overall cost of the company. This as a result affects the profitability at the competitive
marketplace.

Legal factor: This is that can which have factors which are related firms products
which have to face issues reacted to legal requirements. This includes health and safety laws,
discrimination laws and many other requirements demanded by institute like government and
courts of nation where firm is working currently. M&S have to face many laws in its
functioning and get benefit of corporate governance in firm.
 Positive impact: It will generate optimistic working environment within the
association, which as a consequence improve the competence and efficiency of
employees occupied in the company. Negative impact: Lawful insinuations create difficulties inside the institute and if it
variations on a regular basis then it will disturb the enactment as well as success of the
M&S.
Environmental factor: This is the factor which shows impact of environment al
factors like pollution, climate and geographic location of firm. This has directly associated
with performance of firm. Here M&S use ecofriendly means to produce there product as well
as products to. This is performance can be achieved by using technology.
 Positive impact: It makes harmless and safe atmosphere to the persons and attract
great number of clients towards firm in order to acquisition goods and services.
 Negative impact: On the other hand, if company adopt Eco friendly technologies it
will enhance the overall cost of the company.
TASK 4
P5 Internal and external analysis of organization
Here the internal factors which have their impact on firm will be analyses. This can be
done with the help of SWOT analysis, which consist of four things. These are strength,
weakness opportunity and threats of company. Here the SWOT of M&s is discuses below:
Strength Weakness
 One of the biggest strength of M&S is
that it have strong brand image in
business market. Which help firm
maintain its customers in market.
 .M&S have number of operating
services which it functioning in its
business core of actions which is also a
strength of firm (Alomari and Azzam,
2017).
 M&S have also benefit of large number
 Company have facing huge problem as
it falls regularly in credit attracting. this
acted as weakness of M&S
 Firm is also facing some issues which
are related to legal factors , like M&S is
facing some legal requirements which
are needed for running firm,

of products and rage in different
products.
 Customer have also a strength of
making its product customer friendly
which attract more customer toward
firm,
Opportunity Threat
 With the help of promotion knowledge,
marks and spencer can get in providing
online shopping facilities to their
customers.
 Merger and acquisition of small firms
can help firm in expanding its
operations.
 The major threat to M&S is a that it is
facing an cut through competition in
market which have direct impact on
firms profitability (Rudder,
Fritschler,and Choi, 2016).
P6 Interrelation of strength and weakness with the external macro factors.
The interrelation between the strength and weakness of macro environment, those are
listed as under:
Basis Political Social Economical
Strength All polices which are
formed by government
of nation where firm is
working are qualified
and matched by M&S.
Social objectives are
fulfilled by firm like
M&S by using tools of
training and
management which
help it in identify the
needs in society(Surin,
Edward and Ab
Wahab, 2016).
Rendering to this,
marks and spencer is
skilled to give current
cost to their labour by
which they can earn
real goals in an
operative custom.
Weakness Regular changes in
social environment can
impact firm negatively
Consumers develop
extra fitness conscious
and approach healthy
M&S is needed to
maintain all kind of
growth rate. But

as it have to mark
huge cost on products
it produce.
food which impacts
the functionality of
M&S.
sometimes company is
not able to have any
idea about economic
condition of UK
supermarket.
Basis Technological Environmental Legal
Strength This will help firm in
getting advantages of
that innovation which
technological change
bring in structure of
M&S.
M&S is a familiar
business organisation
who majorly accepts
environmental
knowledge so that they
can reduce the
effluence from
environment of UK.
M&S have its biggest
advantage is that firm
is using all the
requirement of legal
environment (Raharjo
and Eriksson, 2017).
Weakness This is the same
consequence as regular
updating in
technological factors
will increase the cost
of work as it has to
change old technical
completely (Fabo and
et.al, 2017).
Organization team of
M&S is bound with
some conservational
laws which strength
upset the company in
adverse manner.
M&S is guaranteed
with particular legal
procedures which
shake the functionality
of business
administration in a
undesirable manner.
CONCLUSION
After a brief analysis of above report it is concluded that organisation are different
and heterogeneous in nature and perform ample number of functions. Various types of
organisation are present such as private, public and voluntary. All these three types of firm
operate with different motive, goals and objectives. Size and scope play important role in
business and which are maintained by firm. Functions are crucial in business because they
drives the business activities in proper manner. In market, there numerous external which
affect the business growth and development and which are to be examined in appropriate
manner. To survive in market it is essential for organisation to evaluate macro factors with
strength and weakness. Hence, business environment play vital role in firm.

REFERENCES
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and Kantola, 2019)(Alomari and Azzam, 2017)(Rudder, Fritschler,and Choi, 2016)
(Raharjo and Eriksson, 2017)(Fabo and et.al, 2017)(Surin, Edward and Ab Wahab,
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