Business and Business Environment: An Analysis of Marks and Spencer

Desklib provides past papers and solved assignments for students. This report analyzes Marks & Spencer's business environment.

BUSINESS AND BUSINESS
ENVIRONMENT
1

Table of Contents
INTRODUCTION............................................................................................................................. 3
LO1.................................................................................................................................................4
P1 DIFFERENT TYPES AND PURPOSES OF THE ORGANIZATIONS WITH LEGAL STRUCTURE.......4
P2 THE SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES OF ORGANIZATIONS.....................8
LO2............................................................................................................................................... 10
P3 THE RELATIONSHIP BETWEEN DIFFERENT ORGANISATIONAL FUNCTIONS AND HOW THEY
LINK TO ORGANISATIONAL OBJECTIVES AND STRUCTURE......................................................10
LO 3.............................................................................................................................................. 12
P4 THE POSITIVE AND NEGATIVE IMPACTS OF THE MACRO ENVIRONMENT HAS UPON
BUSINESS OPERATIONS, SUPPORTED BY SPECIFIC EXAMPLES.................................................12
LO 4.............................................................................................................................................. 14
P5 THE STRENGTH AND WEAKNESS OF THE ORGANISATION CONDUCT AN ANALYSIS OF THE
MARKS AND SPENCER INTERNALLY AND EXTERNALLY............................................................14
P6 STRENGTHS AND WEAKNESSES OF THE MARKS AND SPENCER AND ITS RELATION WITH
THE EXTERNAL MACRO FACTORS...........................................................................................16
CONCLUSION............................................................................................................................... 17
REFERENCES.................................................................................................................................18
2

INTRODUCTION
This report is based on the business and business environment its different types and size, this
will explain the scope and range. It will also include how the environment affects the business
of M&S. Later it will show the interrelationship of various functions within the Marks and
Spencer and will demonstrate both the positive and negative impacts of the macro
environment on Marks and Spencer. The report will explain the internal strengths and
weaknesses of the organization and how it gets affected by the external macro factors. There
are 84939 employs working for the company.
The Marks and Spencer is UK based company specialises in apparels, clothes, and home décor
and luxury food items. The company has it’s headquarter in London. Marks and Spencer is one
of the leading companies of the UK and it has a good market value, this is also listed in the stock
market of London. The company is established in the year 1884 by Sir Michael Marks and
Thomas Spencer. The company has hundreds of outlets across the UK and is serving its
customers globally. In this report, it is analysed how the different factors are affecting the
business environment of Marks and Spencer.
3

LO1
P1 DIFFERENT TYPES AND PURPOSES OF THE ORGANIZATIONS WITH LEGAL
STRUCTURE
An organization is a system in which individuals, groups and departments work together for the
common goal or a common purpose. They perform different duties and roles for the
organizations and for their growth.
There are mainly three types of organizations working under different sectors
Figure 1: Different types of organisations
(Source: Author’s work, 2019)
TYPES OF ORGANIZATION AND THEIR PURPOSES
Public sector –
Public Sector organisation is run by the government for the welfare of the people living in the
country (Mellor, 2018). This organization works for the mass not for the individual with a
4
Three types of
organization
Public sector
Government
Sector
private sector
Private
Ownership
voluntary
sector
Non profit
organisation

purpose to provide safety and security to the nation and their people like the military, hospitals,
and different government institutes. These types of an organization also generate job
opportunities for the country’s people (Van Dooran et al., 2015).
Example of the organization run by the government for the welfare of the people is Marks and
Spencer.
Legal structure
Figure 2: legal structure of M&S
(Source: Purvis, 2015)
Private sector
This organization is run by the individuals or a group for the purpose of earning the profit. This
type of organization can be a state level company or it could be a national level working
company (Johnson et al., 2017).
The example of the organization is John Lewis Partnership
5

Legal structure OF JOHN LEWIS
FIGURE 3: JOHN LEWIS LEGAL STRUCTURE
(SOURCE: Storey, 2017)
Voluntary sector:
The voluntary sector is also termed as the community sector. This type of organisation is
formed by the people for the welfare of the community. These organizations are a non-profit
organization and are run by groups of people. With the purpose to serve the people and
provide them with employment and also help those by giving shelter. There are hospitals with
free medical assistance (Mellor, 2018).
Example of the voluntary sectors is The Cancer Research UK.
6

Legal structure
FIGURE 4: LEGAL STRUCTURE OF VOLUNTARY ORGANISATION
(Source: Cornforth, 2001)
7

P2 THE SIZE AND SCOPE OF A RANGE OF DIFFERENT TYPES OF
ORGANIZATIONS
1. Private organisations
John Lewis is one of the leading company of the United Kingdom and a well-known name of its
product range of clothing, fashion, furniture, beauty etc. John Lewis is a private company and it
has different partners John Lewis has it’s headquarter in London. John Lewis is in partnership
with Waitrose which is a food brand company. The company was founded in 1929 by John
Spedan Lewis. The company has a policy that every employee is the company's partner to the
total no of the partner of John Lewis across the up is 83 thousand (Mellor, 2018).
the scope is analysed that the John Lewis partnership has shown an increase of departmental
store in the UK and the company is in partnership with the Waitrose with is the food brand
company the successful partnership has increased their business. The John Lewis partnership
has made a profit of 111.5 million pounds in the year 2017-2018 (Aithal, 2017).
2. Public Organisation
Marks and Spencer is one of the market leaders of the UK and it’s a public organisation which is
in a successful business of a retail and online product. The company has a wide range of
product and the size of the company is expanding every year as per the growth of the company.
The company was founded in the year 1884 and has the Headquarter in London.
In terms of the scope of the company, the company has made 66.5 m pounds in the 2017-2018
year. The company is doing its best to increase the profit ratio every. The company is
continuously working to establish a new market strategy and high-performance work team to
have more market share. The company has share is the London stock market (Aithal, 2017).
8

3. Voluntary Organisation
Welcome trust is a UK based non-profit organisation. Welcome trust is a research-based charity
organisation. The organisation is founded in 1936 by Sir Henry Wellcome. The company is
working at a global level.
The scope of the company includes, the company has worked in different countries and
provided different, basic amenities like food, medicine and health check-ups in countries like
Kenya and other parts of Africa the company has joined with the bill gates foundation and
works for the United Nation organisation. The investment portfolio grew to 25 billion pounds in
30sept 2018 and the organisation has spent 5 billion in five years (Aithal, 2017).
9

LO2
P3 THE RELATIONSHIP BETWEEN DIFFERENT ORGANISATIONAL FUNCTIONS
AND HOW THEY LINK TO ORGANISATIONAL OBJECTIVES AND STRUCTURE
Every organisation has different departments and they do different functions but they all are
linked with each other for the common goal. Every department has given work to do that
ultimately helps the organisation to achieve short term goals. The different of the organisation
are made according to the requirement of the business. The working and interconnectivity of
the entire department should be sound for the production workflow in the organisation.
Finance department: The finance department of Marks and Spencer has to keep a record of all
the transaction that takes place in the organisation and outside the organisation. The finance
department keeps the track of the flow of the finance in the different department like sales
department has to hire sales executives so they have to contact with the human resource
department for the manpower and have to contact to the finance department for the salary
(Aithal, 2017). The finance department has also connected the bank for the flow of the cash and
the company has taken some loan then the department has to check the interest rate and the
debts of the company. The finance department prepares the final report and then submit it to
the company director which states about the gross profit of the company (Gitman et at., 2015).
Marketing department: The marketing department has to look for the marketing and sales
record of all the product and services of the company. The marketing department also works on
the area of improvement of the market and the department also makes the different strategy
to overcome the market challenges. This department also has to evaluate the vendor and has
to check the stock at the vendor and at the store. The marketing department has to take care of
the branding and the promotion of the product of the c company This department has to
contact to the finance department for the flow of the cash and human resource department for
the manpower. In this way, the marketing department is linked with finance and the human
resource department (Ebbes et al., 2019).
10

Human resource department: The human resource department of Marks and Spencer has to
check the working of all the staff and manpower of the company. This department also
manages the salary and promotion criteria of the human resource. The human resource
department also works for the welfare of the rights of the employs and maintains a proper
work environment for the company so they can help the company to attain its objectives.
Human resource department also recruits new employees in the organisation needed and
human resource department also check the performance of the employs (Wright, 2018).
11

LO 3
P4 THE POSITIVE AND NEGATIVE IMPACTS OF THE MACRO ENVIRONMENT
HAS UPON BUSINESS OPERATIONS, SUPPORTED BY SPECIFIC EXAMPLES
Every business is affected by the various environmental factors these factors can affect the
business in both the ways in positive and in negative. Macro environment factors are factors
that affect the business environment. The external factors are mostly uncontrollable factors.
The macro environmental factors are as follows
POLITICAL FACTORS: The government policies affect the business in many ways like the change
in the tax system, interest rate, the policy of import and export etc.
Positive impacts: Marks and Spencer is retail Company of the clothing and apparels so if the
government provides a loan to the company with low interest then that would be helpful for
the company as they can grow their business. The agreement of the country with Europe has
opened the doors for the company to sell the products more easily to Europe; the government
also helped the organisations to expand their business globally (Aithal, 2017).
Negative impacts: Marks and Spencer Company can be affected negatively if the government
put some restrictions on the exports of the product. If the government of the other country
does not support the other country company could hamper the organisation
SOCIAL FACTORS: Marks and Spencer can also be affected by the social factors like change in
taste and preferences of the customers, the change in trends, bargaining power of the
customer and various other external factors that gives different impacts on Marks and Spencer
(Aithal, 2017).
Positive impacts: Marks and Spencer work hard to serve their customers with good products
because the company keeps working in the research and development field. Marks and Spencer
know the customers taste well.
12