Business Environment Analysis Report: Marks & Spencer (LO1-LO4)

This report provides a comprehensive analysis of the business environment surrounding Marks & Spencer (M&S). It begins with an introduction to the business environment, emphasizing its impact on an organization's performance. The report then delves into the purpose, mission, vision, and objectives of M&S, comparing it with other organization types like Asda and Leonard Cheshire Disability. A significant portion of the report focuses on organizational functions, including production, finance, human resources, sales and marketing, administration, and research and development, highlighting their interrelationships. Furthermore, the report examines the positive and negative impacts of macroeconomic factors (Political, Economic, Social, Technological, Legal, and Environmental) on M&S, providing detailed insights into each factor's influence. The report concludes with an internal and external analysis using SWOT analysis, identifying M&S's strengths and weaknesses, and discussing the interrelationship between macro factors and these strengths and weaknesses. The analysis is thorough, presenting a well-rounded view of M&S's position in the business landscape.

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Business environment
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO 1.................................................................................................................................................1
P1 Purpose of different types of organization .......................................................................1
P2 Legal structure, size, scope of different organizations......................................................3
P3 Organisation function and its objective and structure.......................................................3
LO3..................................................................................................................................................4
P4 positive and negative impacts and macro economic factor...............................................4
LO 4.................................................................................................................................................6
P5 internal external analysis to identify strength and weaknesses ........................................6
P6 Interrelationship between macro factors and strength and weakness...............................8
CONCLUSION................................................................................................................................9
REFERENCE ................................................................................................................................11
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INTRODUCTION
Business environment is known as all the internal and external factor which can affect the
organisation. It is important for the company to ensure that all the factors which are impacting
their organisation should be removed from the firm. The present report is based on the Marks
and Spencer which is public limited company. This report covers different factors which can
impact the sales and profit of the firm. Further, explained the different types and purposes of
organisations;
LO 1
P1 Purpose of different types of organization
Private firm
Mark & Spencer Proposes : Purpose of Mark & Spencer is to sustain in international
market. And maintain the high level of customers trust and employees engagement. Mark &
Spencer provide wide variety of product for its customer and make them satisfied its main object
to full fill customer needs and wants. And maintain the reputation in the marketing. The core
purpose of Mark & Spencer is to enhance lives every day
Mission :Mark and Spencer first mission is to provide good quality of products by identify the
current environment requirements of customers and provide leisure services to earn maximum
profit.(Leih, Linden and Teece, 2014).
Vision : A vision helps to achieve the target in effective and in efficient manner Mark &
Spencer vision is to get best decision making techniques for future goals. Mark & Spencer set the
benchmarking and create the big platform for its business.
Objectives : Mark & Spencer create big platform for its employees so that they give best
performance for company goals and give good employment opportunities. second object of the
company is to give new different projects and improvise sales. They concentrate on the needs of
customers and identify their requirements and provide plenty of services under one roof.
(Adeoye and Elegunde, 2012). They maintain their standard to maximize future profit.
Product & Services : Clothing(Men's Formal wear), Home Furnishing, Food product, luxury
product, lingerie, Home product.
Partnership Structure : Al-futtaim Group
united Arab emirates
Bahrain
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Egypt
Kuwait
Lebanon
Oman
Qatar
Public organization
Asda: Purpose : The main purpose of Asda is to provide different types of product. The
main purpose of Asda is to give variety of services with best quality at low price compare to
other competitors like grocery, clothing, home furnishing or entertainment goods.
Mission : Asda mission is to give quality products at lower price on the basis of needs and wants.
Objectives : Respect for in the individual, quality and costumer service.
Asda aims to create over 10,000 jobs, customer oriented.
Product & Services : Asda Super market, Asda Superstores, Asda Living, Asda Petro, Asda
Essentials.
Sole Proprietor of Asda :
voluntary sectors
Leonard Cheshire Disability
Purpose : To provide services to those persons who suffering from any disability.
Mission : To support individuals with significant physical disabilities and high risk.
Vision : To create, operate and maintain attendant services programs. To operate supplemental
and ref feral programs, To create and maintain satisfactory training, skills development
programs.
Product & Services : Social Care Services.
Marks and Spencer is one of the biggest multinational company which makes high quality
products and services for its customers. It has more that 900 stores in the UK and all over the
world. Further the company have great scope to expand its market in the developing country.
Asda company is also one of the leading company which makes product and services for the
customers (van Wijngaarden, Scholten and van Wijk, 2012). It has stores only in the UK and has
opportunities to expand business in all over the world through selling quality products and
services.
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Purpose purpose of this company is to provide financial support and basic human needs. This
organisation works only for disability persons who does not manage their daily needs.
P2 Legal structure, size, scope of different organizations
Private firm: Asda is the private retail company which provides different different types of
product like grocery, general merchandise, financial services it is the second largest supermarket
in Britain other than asda provide other products like mobile phones. Asda has 180,000
employees and £ 1 billion revenue. It involves less legal interference of rules and regulation of
government.
Public firm : Mark & Spencer is the public retail company which supply luxury, clothing, home
products. Mark & Spencer has 84,936 employees and it is situated in London, united kingdom.
It involves interference of government rules and regulation it has to protect customers interest.
Voluntary firm : Leonard Cheshire is the voluntary company which provides different facility to
disabled person basically it is a health and welfare charitable trust. It aims to provide effective
community services. It involves the interference of government.
LO2:
P3 Organisation function and its objective and structure.
Production department : This department in which product and services are produce by
labour, capital, energy, materials, information. Production department responsible for turning
into finished product with the help of other resources taken by other departments like Finance
Department give capital, Human Resource give lobar force to start production. Administration
Departments take care of transaction(LiPuma, Newbert and Doh, 2013). So that all the
Departments are interrelated with each other.
Finance Department : Finance department is most essential department in the company through
which whole process is going smoothly Every departments wants Money to Purchase the
material. All the other departments are connected with these departments every departments have
duty to control their expenses and utilise the resources. Finance Departments provide money
according to the needs.
Human Resource Department :Human resource department is the backbone of the organisation
it is the production factor which helps to give final output human resource department is the most
important factor in the organisation and helps to give productivity. However technologies are by
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humans Human resource department provide training and development to the employees to give
more productive work.(Zhang and Huang, 2012). For Trainings of employees there is a need of
money so in that case Human Resource department contact to Finance Department if they want
to get salary They need the help of Admin department,
Sales and Marketing’s : In marketing department the focus is on sales and promote the
business. Marketing department takes the responsibility of selling and give maximum profit to
the company. Sales person give new ideas to the company and give great expansion as well.
Sales person has to connect with production departments and take new ideas for promotional
activities. For promotional activities marketing departments need the money from finance
departments and give number of product requirement to the production department.
Sales is the last step of functions where company estimate their sales income and then start
planning for next plan. Sales persons always connect with all the departments(Dragoi, Rosu and
Draghici, 2013).
Administration department : Administration department is the most crucial and effective
department in the company. It is an asset to an organisation administration department has the
duty to keep all the records of the company weather it is related to human resource department or
Financial department, Sales and Marketing Department. In the other words administration
department has to maintain the daily routine activities and provides systematic support to all the
other departments.
Research and Development : This department helps to take company one step up by developing
new products and services this department research innovative things and identify the current
trends so that company promote new product. Research and development department identify the
problems in the organisation and develop new way of working they observe the other
departments in the organisation.
LO3
P4 positive and negative impacts and macro economic factor
Political (P) : political factors are those factors imposed by the government which is
related to economic growth Generally political factors includes demographic factors, tariffs
taxes, ethical and rules and regulations of the government which affects company growth
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Mark & Spencer is the retail company and provide clothing, food products, luxury. The
positive impact of political factors is they provide security to the company helps to maintain their
repo in front of the customers (Babatunde and Adebisi, 2012). Marks & Spencer is the world
famous company in retail world, because they provide fair trade practices and follow the political
polices. On the other side if company not follow the rules & regulations so that government take
strict action against the company, Which is not healthy and also competitors take advantage for
this point and harm the goodwill of the Marks & Spencer.
Economic (E) :Economic factor includes basic requirements fashion trends customer
culture. Economic factor affects the demand of the product like inflation rate affects company
growth for example in inflations company will increase the price of the product this factor affect
automatically get decrease the demand (Dragoi, Rosu and Draghici, 2013). If inflation rate is
low company enjoys their profit at good demand. Otherwise, inflation can reduce the purchasing
power of customers. If inflation rates are increase the rates of product and services of Marks &
Spencer will automatically increase and affect to the customers vis versa
Social (S) : social factors are those factors which affect companies demand and supply .
To increase the income Marks & Spencer should adopt technologies and strategy which is
according to the customers needs and wants. If they fail to reach customers wants so, it would be
directly effect on the customers. Social factors are totally depends on the customer satisfaction
which is necessary to fulfilled.'
Technological (T) :Technological factors always gives positive impact on the company
this factors helps to increase productivity and effectiveness in the company it helps to minimize
the cost of the organisation. Technological Through this factor Mark & Spencer will earn
income at large level by using new techniques. Today's time customer wants new way to
purchasing and wants reduce time cost. On the other side drawbacks of technology factor is
when company introduce new technology sometimes customers facing the problem to
understand (Zhang and Huang, 2012).
Legal (L) : Legal factors are those factors which government apply on the businesses.
These factors include Human safety, consumer rights, labour rights. Positive impact of this factor
is Mark & Spencer get benefits from government for adopting full rules & regulations. On the
other if they neglect these rules so in that case government take legal actions against the
company which is not good for the future.
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Environmental (T) :it is very necessary for the company to maintain its environmental
factor to sustain its productive growth in the market There is two environmental factors first is
internal and external factor internal factors include within the organisation and external factors
include outside the organisation. They both affect company directly or indirectly (). Positive
impact on M&S is to create new ideas from markets and understand the needs and wants of
customers and identify competitors Create product expansion and on the other side negative
impact on M&S is fail to adopt challenges and fails to identify customer need.
LO 4
P5 internal external analysis to identify strength and weaknesses
Internal analysis
 Strength (S) : Mark & Spencer is the big retail company in UK. Its strength is their
luxurious product and services and it is famous for its brand image they attract premium
class customers who want high quality products in the other hand Mark & Spencer has a
wide variety of products for examples luxury products, clothing, vegetables. It has large
number of stores and large top brands like autograph, indigo, limited collection Big&tall.
So these are the strength of Mark & Spencer.
 Weaknesses (W) : Weaknesses is always become a strength of others. Same apply in the
companies as well. Mark & Spencer is being a popular brand, they need to protect their
brands from competitors and always ready to adopt challenges (LiPuma, Newbert and
Doh, 2013).
 Opportunities (O): Opportunities of Mark & Spencer is that they can adopt new
technologies and give good quality of product and services to the customers they also can
beat the competitors benchmark by using the best useful tools & techniques. Identify the
current trends and fashion and planned accordingly. Mark & Spencer also expand their
branches and their variety of products to spread their market and compete with the other
competitors.
 Threats (T) : Increased competition in all areas of business Mark & Spencer has the
threats of losing its scope in the business due to the competition Mark & Spencer should
adopt new techniques to cope up with the current trends. Otherwise, its reputation among
the customers goes down.
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PESTLE analysis
political factor : political factors are the external factors affect the companies growth like
political factors includes tariff. Tax, foreign exchange policy. Which affects price of the
company for example Mark & Spencer has offer good quality products in the market this is the
strength of M&S but due to changes of interest rates or taxes it may directly impact on product
price.
Economical : Economical factors are those factors which includes government tax,
changes in interest rates, which affects company growth in future for example Mark & Spencer
provide high profile luxury products but due to changes in interest rates company has to increase
the prices of their products and services.
Social factors : Social factors are the factors which includes customer satisfaction, needs
and wants of customers, customer interest. Mark & Spencer has the good brand image in terms
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SO
'Maxi-Maxi' Strategy
Mark & Spencer can make their strength into
opportunity by using new strategies techniques
for example Professional team members can
create new ideas new market expansion and
earn good rate of return (Adeoye and
Elegunde, 2012).
ST
'Maxi-Mini' Strategy
Mark & Spencer can use their strategy that use
strength to minimize threats. Example Mark &
Spencer has a well known brand this is the
most prominent strength they can use this
strength to avoid external issues.
WO
'Mini-Max' Strategy
Mark & Spencer can use the opportunity that
minimise their weakness by increasing the
price of product in during high demand
WT
'Mini-Mini' Strategy
Mark & Spencer can promote another product
and avoid fare of competition. So that they use
strategy to minimize weakness and avoid
threats.

of goods and services it is the strength of the company. Which affects positive result in the
market.
Technological factors : Technological factors affects company either positively or
negatively. for example Mark and Spencer introduce new different technology in the company
which helps employees to access the work more efficiently and in effective manner. It is the
strength of the company to complete their task on time with the help of new technology. it also
impact negatively if employees fails to understand new technology.
Legal : legal factors are those factors which is very important to follow otherwise it
impacts negatively on the organisation. And affect company brand image. For example Mark and
Spencer provide many good services to their customers it create good image in the minds of
customers. Legal factors are positively for those company who follow it properly.
Environmental factor : Environmental factor depend upon the current trend which affects
company directly. Organisation has to compete with their competitors in terms of goods and
sercises company has to change according to the market environment.
As according to the market mark and Spencer is the high tech retail market in the UK
they provide home furnishing and food products to attract more new customers they maitian their
good image in the eye of customers customers get full satisfied with the product and services of
Mark & Spencer
P6 Interrelationship between macro factors and strength and weakness
This company known for its great expansion of its product and services. But the macro
factors affect the company like inflation rates, unemployment, savings and investment these all
factors affects the demand of the products company has to measure these effects and try to
minimize the weaknesses and make good decision making results these factors also imopact on
economy by reducing national income and GDP growth and crises will decrease the power of
investments There are many external factors who affect companies strength like social,
economical. Legal, and environmental factors. For example legal rules and regulations affect
companies product price and directly effect product demands some legal factors are VAT,
foreign exchange, etc. these factors change the mind of customers (Leih, Linden and Teece,
2014.). Other factors like social factors this factor is depend on the customers needs & Wants
according to the environment trend. These factors are totally out of control of the organisation on
the other side technological factor changed the way of work In order to depend on the customers,
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it is the weakness in front of the organisation because they have to change for business
development. However, when the business operate functions as per the environment perspective
they can easily enhance their profit and revenue.
Environmental factor is the factor affects on the basis of market trends on the basis of
customer needs. So that Marks & Spencer can make strategies on the basis of market needs and
wants.
Political environment is control by the government polices like trade policy, tariff these
factors affect the purchasing power of customers so it is the strength of Mark & Spencer to
follow the rules and regulations so that they can achieve their target accordingly.
All external factors affect As per the political factors operations, the company able to sale their
products and services according to government decide price so that it impact negatively on its
operations. On the other hand, government also supporting to the chosen business to enhance
productivity and profitability as well. of the company directly or indirectly like external factors
affect price and demand of the products.
Technological : technological factors includes new technology which improves productivity and
efficiency of the employees in the organisation.
Legal : legal factors affects company if the fails to follow the rules and regulations.
Political : political factors impacts prices of the company products and services.
External environment is changes on the basis of daily basis due to expansion of market
and products. Other competitors of Mark & Spencer also overcome with its new products so
They have to make new ideas and take new techniques to beat their competitors. Mark &
Spencer also take new advance technology to take new ideas and trend their employees and get
good rate of return.
Mark & Spencer company is a retail companies in which they provide number of
products so they should adopt current trends so that they full fill customers need and wants.
CONCLUSION
In the conclusion of this project it was explained the roles and responsibilities of the
department in the organisation as they help in accomplishing the aims and objectives of them
firm. Finance department is directly linked with other department as it assist in providing fund to
marketing department. Further it is concluded that through macro analysis it becomes easy for
the company to make changes in its products and services. It helps in identifying the factor
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which can impact the sales and profit of the firm. Through the help of SWOT analysis it is easy
for the firm to identify the SWOT analysis. Through the help of this it becomes easy to
understand the weakness of the company and opportunities which company have for expanding
the business.
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