Business Environment Analysis: Marks and Spencer Report - Module X

This report provides a comprehensive analysis of Marks and Spencer's business environment. It begins with an introduction to the business environment concept, followed by an examination of Marks and Spencer's organizational structure and its various functions, including marketing, human resources, production, accounting, and research and development, and how these functions are interconnected and aligned with the company's objectives. The report then delves into the positive and negative impacts of the macro environment on Marks and Spencer's business operations, utilizing a PESTLE analysis to assess political, economic, social, technological, legal, and environmental factors. Finally, the report concludes with an internal and external analysis of Marks and Spencer, employing SWOT analysis to evaluate its strengths, weaknesses, opportunities, and threats.

Business
Environment

INTRODUCTION
Business environment can be refer as those place where different activities and business
operations are carry out in proper manner so this will help in achieving desired goals and targets
of an organisation. This comprise with both external and internal factors as they are having
influence on the functioning of the firm which includes customers, employees, partners etc. This
will play an essential role in each company for evaluating the environment where they suit and
determine their business operation by this and also they can assist them in generating high level
of profitability and accomplishing desired growth or development in proper manner. The report
is based on Marks and Spencer which is one of the best clothing and merchandising firm which
is situated in United kingdom (Agarwal, Grassl and Pahl, 2012). The main purpose of this report
is describe about nature, size, scope of the organisation working in various types of business
environment. Along with this, the interrelationship between different organisational functions
and also understand their link with the objectives of an administration that can be achieved. This
will also help in understanding both positive and negative influence on macro environment
within an organisation.
TASK 1
P1 and P2
Covered in PPT
TASK 2
P3 Relationship between various organisational functions and its link with firm objectives
This can be refer as that every enterprise can be formed because they have different
motives and objectives for maintaining and managing all business operations and functions in
proper manner. So this is important for such firms for designing and developing their structure of
organisation and analyse their goals and targets which they need to achieve in effective manner.
Hence marks and Spencer is one of the leading public limited company and there are more than
85000 employees who work for them for accomplishing potential goals and objectives (Aterido,
Hallward-Driemeier and Pagés, 2011). This can be considered as multinational firm which help
in dealing with various segments such as food products, luxury items etc. and also manufacture
such things which attracts large number of customers.
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It can be observed that Marks and Spencer have effective organisational structure so their
all operations are conducted by the help of their employees who working in their stores or shops.
With the assistance of using these type of business structure, Marks and Spencer gives
motivation and encouragement to their workers which assist in making effective decision making
process and also make participation. In this procedure, they make creative plans and policies of
the company (Auzair, 2011). The cited firm have large number of employees so if firm will
include them, this will became beneficial for their organisation.
There are different types of functions which has been function and operated by Marks
and Spencer firm such as Research and development, human resource management, sales,
accounting, finance etc. all the workers require to perform their business operations which is
effective in nature so it will assist in accomplishing desired goals and targets of the company.
This can be necessary that all the activities and functions should be correct with their
organisational structure so it helps in achieving their goals and objectives of the firm in proper
manner. The interrelation of organisational structure along with functions of Marks and Spencer
are as follows:
 Marketing department- It is one of the important function which can be perform in the
firm as through they are capable for sell their goods and services in the large market
place. It is that department which provide assistance for knowing customers needs and
demands so these can produced in proper manner. They required to maintain connection
with all other divisions in the huge market and perform different types of functions and
activities. This is very effective in accomplishing competitive benefits for the customers
as well as market place.
 Human resource department- The major functions can be perform by such divisions
which directly impact on entire firm due to this this will help in hiring skilled and
talented employees who are expert in performing all required functions and activities
(Avramenko, 2012). HR manager perform all actions which need to gain maximum
profitability and productivity. Also they required to maintain relation between employees
and their subordinates in proper manner. They are helping other divisions of an
organisation for bringing coordination and cooperation among all staff members.
 Production and operation department- It is that type of function which can be conducted
at the beginning of specific procedures so goods and services are being manufactured at
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the starting level. This department have clear connection will be produced according to
setting plans and strategies. Marks and Spencer will manufacture their effective products
after examining and analysing whole market so that firm can satisfy customers desired
needs and targets that can be achieved.
 Accounting and finance- It is such type of function which having their relation with
monetary transactions that occurs in the country on daily basis (Adeoye and Elegunde,
2012). These are department who are assigning funds to various divisions of the firm so
that their all activities and functions can be carry out in effective manner. This includes
developing assets, doing survey in the market etc. So, for presence in this division of
organisation will be performed.
 Research and development- It is that department who have responsibility for
manufacturing products according to their needs and demand of their customers. It may
be large or small company, appropriate research is needed for conducting so they can
understand regarding their current requirements and needs of the people in better manner
((Mahmood and Hanafi, 2013).
TASK 3
P4 Positive and negative impact of Macro environment on business operations
There are various factors which are available for the business environment and it will
having strong affect on different activities and functions of the firm but still company control on
major external factors in proper manner. There are two major factors such as internal and
external elements present in an organisation. Both factors have positive and negative impact on
business operations and functions of the company. This directly impact on various rules and
policies which can perform by management of an enterprise. In Marks and Spencer, they are
precede different policies which will play an essential part in the firm as it will assist them in
achieving their targets and goals in proper manner (Bar-Isaac and Shapiro, 2013). The
management will create and make use of PESTLE analysis for getting understanding about
positive and negative factors which impact on the organisation. PESTLE analysis of Marks and
Spencer are described as under:
Political factor- All policies and procedures are being formed by government body
should be included. Thus, if authorities will innovate some new laws and policies for
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manufacturing of specific products and services so this will impact on all business activities and
their functions of cited firm. Positive effects- The positive effect of such factor will assist them in performing all
major business operations in effective manner and also they are having free trading
policy so they are capable for reducing their cost. Along with this, Brexit also directly
impact on business activities (Burns and Winter, 2011). Negative effects- If new regulations and rules should be enforced then firm like Marks
and Spencer for getting resources at increased price which is not appropriate for firm and
the customers as well as products cost will be enhanced in proper manner. Therefore, it is
needed that cited company will make strong relation with the government entities so by
this they can survive such modifications or changes.
Economical factor- These are those factors who have maintain relation with various
components such as inflation, growth rate, wages etc. of specific organisation. Such elements
have personal perceptions regarding each country and hence Marks and Spencer will operated in
many nations therefore, they need to focus on major factors in proper manner. This is required
for considering that if economy will increasing or declining then it will directly affect on sales
and growth of the firm (López-Gamero, Molina-Azorín and Claver-Cortés, 2011). So,
administration of marks and Spencer is necessary to evaluate and measure all changes which has
been taken place within business environment. Positive effects- The positive impact are such if there will be inflation for flow the funds
that can be increased for bring in more cash amount with the individual people and
therefore, opportunities are enhancing for selling should be risen.
 Negative effects- Hence, environment is dynamic so all major changes can be happened
on regular basis so this will become very complex for an organisation to manage and
maintain such alterations.
Social factor- Each and every firm has been taking resources from effective environment
so it is their responsibility for return something back to them and this will come under the
corporate social responsibility of the firm as well as customers (Boons and Lüdeke-Freund,
2013). This will assist in deciding the actions which are necessary to be executed by them in
proper manner.
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 Positive effects- For such factors, the marks and Spencer firm will getting different
opportunities for making contact with new groups within the society and they are capable
for attracting large number of customers in better manner. Negative effects- The negative impact of cited company which has been introduced chain
of various products but it can be stated that it can make or create destructive societal
current tendency (Chow and et. al., 2011).
Technological factors- In this elements, it can be described that most of the new
technologies are introduced and presented by investigation in the community or society when
company is used various business operational activities in appropriate way. There are various
methods and techniques which help in increasing growth and success of an enterprise. Marks and
Spencer are doing their operations for using different types of techniques and methods and it
assist them in becoming more efficient and effective. Positive effects- It is that factor who having positive impact on their business functions
and activities of Marks and Spencer so that they are able for complete all activities and
functions within given time period and also accomplishing efficiency (Hamilton and
Webster, 2015).
 Negative effects- They required to invest huge amount of funds for executing effective
techniques and technologies within an organisation.
Legal factors- This will includes that law and rules which has been develop and created
by government and it is required for implemented by each firm. Also it is necessary for company
is to follow all rules and regulations which made by authorities for taking position at large
market place. Positive effects- When marks and Spencer will follow all rules and regulations then it can
be considered in the term of safe area so all the business activities and functions can be
termed as legal and also this will help them in developing effective image in front of
desired customers (Commander and Svejnar, 2011).
 Negative effects- Sometime all the laws which may lead towards disrespecting their own
management policies and schemes.
Environmental factors- They have major factors which are related to environment and
have strong impact on them. Firm need to reduces the wastage of material and substance in
effective manner.
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 Positive effects- The positive impact of marks and Spencer will be red Tapism that can be
reduced and work can be carry out in effective way.
 Negative effects- Marks and Spencer have to be reduced or decrease all paper work and
start with using internet work that can help in declining in appropriate employment can
be done (Cronan and et. al., 2011).
TASK 4
P5 Internal and external analysis of Marks and Spencer
In internal analysis, organisation need to do SWOT and in external analysis, PESTLE
required to be done by administration of Marks and Spencer. SWOT analysis of marks and
Spencer are as under:
Strengths Weaknesses
 An organisation having effective or
good reputation image in the large
market place.
 They are having creative and unique
selling points of their effective goods.
 They are properly designed
infrastructure and business operation in
whole environment.
 It is one of the most granting firm of
this sector.
 There are different issues or problems
in the business environment so
management under pressure due to poor
performance of such clothing and
retailing sector.
 There is always reduction in their pre-
tax profits so it has been go down by
8.6%.
 For compare with their competitors,
value of specific goods will be higher.
 Major customers are less satisfied with
their effective products and services
while they are selling as compare with
other main brands.
Opportunities Threats
 They try to expand their business
operations and functions in many other
locations (Dahan and et. al., 2010).
 They are having slow recovery in the
economy.
 Similar products producing firm are
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 They have particular opportunities for
developing and formulating their
business within the online selling
marketplace.
 They are having successful trans-
actioning in the banking industry.
major rivals.
 Strong competitors give tough
competition in the large market place.
PESTLE analysis of Marks and Spencer are as under:
FACTORS DESCRIPTION
Political Company are working for immediately changes in political climate.
On the other hand, they also build and develop effective policies or
strategies by government which are related to tax.
Economical In this factors, it can be seen as increasing in the revenue of the UK
people and also giving employment opportunities in proper manner.
Social This factor mainly centring on effectively changing in customers
taste and preferences. They are maintaining strong brand image by
follow policies.
Technological Techniques and methods are having positive consequence on
specific economy. Also this will assist in giving different types of
data and information along with solutions.
Legal They required to follow all laws and rules which must be applied by
company in effective manner. Also this will assist in making
modular policies and using Eco-friendly material.
Environmental They required to focusing on wastage administration and also
present program which is called as Plan A for maintaining and
managing waste substantial of an organisation.
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P6 Interrelationship of strength and weakness with extrinsic macro elements
This has been determined that business environment directly affect on all business
activities of Marks and Spencer (Fernando, 2011). M&S have certain strengths and weaknesses
which will play an essential role with the help of management. They are earning large sum of
income within UK and also they are founded powerful existence in Europe but post Brexit are
facing different issues or problems at the time of expanding their business activities and
functions in specific area. Such type of external factors help in developing and making new
modifications for Marks and Spencer so by this they can spend more money and time while
completing different kinds of duties and responsibilities in proper manner (Gebauer, Paiola and
Edvardsson, 2010).
Brand equity of Marks and Spencer is very strong in nature. This is the reason which
define that it is one of the major brand in clothing segment. Marks and Spencer will enter in the
large market place such as India. This country has high economic growth rate and purchasing
power is also increasing. Various external factors assisting cited firm for showing their spending
in limited period of time. This organisation is operative in premium section of clothing,
increasing income of middle class people which is good. Income of M&S in such region is
constantly enhanced and also they are open some more stores in India (Halbert and Ingulli,
2011). Such external factors assist them for follow their strategy in fast and expand business in
international marketplace.
Political and legal factors – According to the legal and political alterations and
modification in the business which can effectively manage the whole team for developing
concepts and approaches. This will directly effect on advertiser and promoters in which they
require to make standards in better manner. Along with this, it is essential for company is to
undertake various functions and activities that are totally based on achieving set target and goals.
 Strength – Political elements can be seen as strength of M&S while they required to
grow their business structure and operations in other new nations. Through this, they
need to analyse and examine political and legal factors impacts will assist in increasing
their business operations and its functions in easy manner.
 Weaknesses – In this, political and legal factor are those compulsory factors which need
to apply company in better manner. The ineffectualness of these components can
minimise the reputation and image of company products in market place.
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Social factor – Social and cultural modification can directly impact on whole business
that addressing the major indicators for selecting pattern of cultures with assisting people. This is
also directly impact on service user and analyse buyers as per their preferences, needs according
to alterations.
 Strength – The strength of this social factor is to help in identifying current trends which
easily adopting by people through online basis.
 Weaknesses – The weak point of this factor is that there are always alterations and
modifications in their current trends effectively.
Technological factors – The current goods and services can maintained and managed
that includes using new technology help management that assist in taking curiosity of elements
for managing digital management of different services.
 Strength – The major strength of this factor is modern technology and advanced
digitalisation of M&S company because they are mainly used or adopt these type
transformation in their effective goods or services. For this, they can easily provides high
level of satisfaction to the customer base of specific needs and requirements.
 Weaknesses – M&S require to adopt high level of technology and digitalisation in their
effective services which can be difficult for evaluating and understanding for others. This
type of factors can be analysed as weak point of cited firm while their customers identify
their products and services.
CONCLUSION
According to the above discussed project it can be concluded that there are different
organisation who are conducting their business operations and their functions within specific
sector so this can assist in earning more profitability and also fulfilling all desired aims and
objectives. In such business environment, organisation are mainly based on their size and divide
into small scale such as medium and large scale. It can be observed that Marks and Spencer have
effective organisational structure so their all operations are conducted by the help of their
employees who working in their stores or shops. There are two major factors such as internal and
external elements present in an organisation.
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