Business Environment Report: Marks and Spencer (M&S) Analysis - Unit 1

This report provides a comprehensive analysis of the business environment, focusing on Marks and Spencer (M&S). It begins with an introduction to the business environment and its importance in assessing organizational objectives. The report then explores different types of organizations, including public, private, and voluntary sectors, along with their legal structures, using M&S as a key example. It delves into the specifics of each organizational type, providing background information, products and services, size and scope, vision, mission, objectives, and organizational structures. The report further examines the relationships between organizational functions and objectives, the impact of the macro environment on business operations, and the use of SWOT analysis to identify strengths, weaknesses, opportunities, and threats. Finally, it discusses the interrelationship between strengths, weaknesses, and external macro factors, concluding with a summary of the key findings and insights into M&S's business environment.

UNIT 1 BUSINESS &
BUSINESS ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures for the chosen organisation.....................................................................3
P2 Explaining the each of the organization with their entire details .....................................5
M1 ........................................................................................................................................10
LO 2...............................................................................................................................................10
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure chosen for the purpose...........................................10
M2.........................................................................................................................................11
P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples for the chosen organisation. ...........................11
M3.........................................................................................................................................13
P5Conduct internal and external analysis of specific organisations in order to identify
strengths and weaknesses for the chosen organisation.........................................................13
P6 How strength and weaknesses interrelate with external macro factors for the chosen
enterprise..............................................................................................................................14
M4.........................................................................................................................................15
CONCLUSION .............................................................................................................................15
REFERENCES .............................................................................................................................16

INTRODUCTION
Business environment includes the external and internal environment of the business .
Business environment plays an important role in assessing the objectives of the businesses. It is
a marketing term that refers the outside and inside the factors that affect the profitability of the
business. For an organization, it is very important to analyse the business environment
effectively so that they can achieve the profitability for their businesses. Marks and Spencer
Group plc is a British multinational retailer headquartered in the city of Westminster, London. M
&S was founded in 1884 by Michael Marks and Thomas Spencer's in Lead. Present assignment
will provide information about different types and purposes of organisation along with size and
scope of organization. Research will also provide the deep insight of relationship between
different organisational functions and how they link to organisational objectives and structure.
The report will provide the information about the negative and positive impact of the micro
environment. It will explain the SWOT Analysis and their interrelationship with organization.

P1 Explain different types and purposes of organisations; public, private and voluntary sectors
and legal structures for the chosen organisation.
A social arrangements which consider to peruse the collective goals, which controls the
performance and which as boundary separating its from environment. Organization is the group
of members formed to achieve the goals and objectives that create the value for organization.
Following are the different types of the organization discussed under-
PUBLIC ORGANISATION – These are those sectors which are engaged in the activities of
rendering government goods and services to the general public. Under this, the enterprises,
agencies and bodies are fully owned and controlled by the government; Weather it is central,
state or a local. Public sector organization are of two types. i.e. in this either the government
fully finances them through the revenues they raise by collecting taxes, duties , fees etc. or
instead of this government holds the 51 %share of the total share of the firm which comes under
different ministries. These are the organization which establishes with service motive.
The example of the public sector organization is department for culture , media and
sports (DCMS). It is that department of UK government with having the responsibility for
culture and sport in England along with some aspects of media , broadcast, internet as well
Purpose of the public sector organization.
 Transformation of the economy: one of the important purpose of the public sector
organization is the transformation of the economy. The public sector is supposed to
transform the economy in such a fashion that it could move towards socialism.
 Redistribution of income and wealth- Another important purpose that public sector
severs to the public is the redistribution of income and wealth. It is obvious that a goal of
the pattern of the society cannot be achieve without the improvement of existing pattern
of income and wealth.
 Source of capital formation
One more purposes of the public sector organization is to formed the sources of the
capital. There is an accepting fact that the important determinants of the rate of growth and the
pattern of income and wealth distribution is the manner of utilisation of profits from business
enterprises.
Private organization

The section to federal economic system that is governed, contained and controlled by
private respective or organization is termed as Private Sector. The companies of private sector
are separated on the base of their sizes like small & medium enterprises and large enterprises
which are either controlled or tackled privately or publicly. by the formation of a new enterprise
or by the privatization of any Public Sector Enterprise are two ways created are two ways by
which private organization are created.
There are various private organization in pan UK. Among all the private organization,
Marks & Spencer is one of the private sector organization which deals in the retailing.
Purpose of the private organization
following are the purposes of the private organization- Profit Maximization
It is very much clear that every organization works for the profit minimization. One of
the important purpose of the private company is to maximize the profit so that they can achieve
their desired objectives.
 Transparency in reporting
Another purpose of the private sector organization is transparency in their financial
reporting and all the annual reports. But for them it is very important to restrict the transparency
till their stakeholders and it may not extend to the public at large.
Voluntary Organization
Voluntary organization are the very specific organization. The are also known as non
profit organization. These organization commonly referred to the third sector organization and
civil society organization. These are those organization which is composed of function which
aid of helpers and services to the individual, group or society.
The example of voluntary organization is world vision. It is the second largest
organization which works as a non profit organization.
Purpose of the voluntary organization
 These are the non profit organization which basically works for the welfare of the society
(Savrul, Incekara and Sener, 2014).
 One of the important purpose of the voluntary organization is to meet the special
requirement of socialised interest and special group like handicapped, women, children
etc.

P2 Explaining the each of the organization with their entire details
Following are the details of each and every organization :-
Public Organisation:
Department of culture media and sports (DCMS)
Background : The abbreviation for the department of culture media and sports is DCMS. Its
origin is from the Department of national Heritage which was created on 11 April 1992
immediate after the conservative election victory (Prajogo, 2016). It was renamed DCMS on 14
July 1997 under the Premiership of Tony Blair. Products and services they supply: It provide
the services for the tourism, leisure and creative industries . This department is also responsible
for the delivery of the 2012 Olympics and Paralympics games and the building of digital
economy
Size and scope of the organisation: 900 staff working for DCMS , the work is carried out by
the 43 public public bodies. Vision, mission and business objectives: The vision is to create the
condition for growth in the creative, communication, cultural, tourism and leisure economies ,
removing barriers to innovation and levelling the playing field.
Mission – There mission is to drive growth enrich lives and promote Britain abroad. They aid to
provide the UK a unique advantage on the global stage, striving for economic success (Pearson,
2017).
The main objectives of the DCMS includes the following
 growing the economy
 connecting the UK
 encouraging participation
 sustaining excellence and promoting Britain
 supporting our media
 ensuring social responsibility
Organisational and legal structure:
Permanent Secretary Jonathan Stephens
Executive Boards Stephens Amos, David Brooker, Rachel

Clark, Samantha Foley, Helen Macnamara,
Claire Pillman, Jon Zeff (DIRECTORS)
Deputy Directors Lise- Anne (head Of Media), Helen
Reaordan – Band (head Of Gender
Equality), Helan Carrier(Head Of Strategic
Analysis), Dean Creamer (head Of Major
Project Urban Broadband), Melanie Field
(head Of Same Sex Marriage Bill ), Susan
Frew (head Of Human Resources),
Penelope Johnson (head Of Gac), Claudia
Kenyatta(Head Of Heritage), Dominic
Lake (head Of Arts), Frances Macleod
(head Of Sports), Linda Amrtin (head Of
News And Comms), Paul Oldfield (head
Of Ministerial Support), Colin Perry (head
Of Major Project), Alison Pritchard(Head
Of Change)
Legal Directors Charles M Ramsden (head Of Quality law,
Better Regulation, And Parliamentary),
Chris Sharrock (head Of Gambling And
Licensing), Time Sparrow (Head Of
Finance), Simon Towler (head Of
Broadband And Spectrum

Illustration 1: Organization structure
source :
Private Organisation: Marks and Spencer' s
Background: It is a British multinational retailer organization headquartered in the City of
Westminster. It is basically specializes in the selling , clothing, home products and luxury food
products. It was found in 1884 by Michael marks and Thomas Spencer's (Kolk, 2016).
Products and services: They deal with clothing, shoes, cosmetics, toiletries, perfumes,
cosmetics, interior design, kitchen equipment, bedding and furnishing, food and drinks, food
stuffs, gift shops, M&S Banks, M&S energy, M&S TV and online services
Size and scope of the organisation: Although primarily based in the UK, sell into 57 countries
from 1,463 stores and websites around the world. They employ 81,000 colleagues serving about
32 million customers.
Vision, mission and business objectives
Vision: To become and be standard against which others are measured
Mission: To make aspirational quality accessible to all.
Objective: There objective is that they set for the company should include being Specific,
Measurable, Agreed, Realistic, and Time Specific [SMART]

Organisational and legal structure
Chairman Archie Norman
Chief executive Steve Rowe
Humphrey Singer Chief finance officer.
Senior independent
director
Vindi Banga
Non executive directors Andy Halford, Richard Solomon,
Andrew fisher, Katie Bickerstaffe,
Pip McCrostie.
Voluntary Organisation: World Vision international
Background : It is a Christian humanitarian aid , development and advocacy organization. It
was founded by Robert pierce in 1950 as a service organization to meet the emergency need of
the missionaries.
Products and service: It is the service based organisation which provide the help to the children
women and handicapped (Kljucnikov and et.al., 2016).
Size and scope of the organisation
Vision, mission and business objectives
Vision: Our vision for every child, life in all its fullness, our prayer for every heart, the will to
make it so.
Mission: Transformational Development that is community-based and sustainable, focused
especially on the needs of children.
Objectives

 Promotion of Justice that seeks to change unjust structures affecting the poor among
whom we work
 Public Awareness that leads to informed understanding, giving, involvement and prayer.
Organisational and legal structure
Illustration 2: Organizational structure
source:
M1
Structure, size and scope of the different organisation assists to accomplish business
objectives with accomplish desired level of results at workplace. In this way, M&S has purpose
to increase their profits and revenue to promote more desired level of results. As a result, it
contain more growth and functioning in the enterprise.
LO 2
P3 Explain the relationship between different organisational functions and how they link to
organisational objectives and structure chosen for the purpose.
Organizational functions plays an important role in achieving their objective. Under
discussed a various functions of the organization with their relations from objectives.

To define the role of individual : Every organization have its own hierarchy. Employees of the
Marks &Spencer have to define the role of their employees individually as well. Employee
working in organization must know their role in order to achieve their as well as organizational
objective.
Fixation of responsibility : the every employees in the Marks &Spencer is assigned in such a
way in what performance is expected. The manager of Marks &Spencer have to assess the
responsibility in such a way that make employee in attaining the objectives (Botha, Kourie and
Snyman, 2014).
Therefore, in achieving the objectives the functions of the business the organizational
structure of Marks &Spencer plays an important role as business works efficiently when all the
employees must understand their jobs and entire procedure. Setting proper organizational
structure aids the employees of Marks &Spencer to clearly understand their roles and
responsibility. The functions of organizational structure helps organization in achieving the
objectives. As it assess the following function which aids the ease of achieving the objectives of
Marks &Spencer. These are explained under-
Establishing hierarchy: The elementary purpose of an organisational structure is to supply a
clear chain of command and specify which employees report to which managers. This provide
the systematic and smooth functioning which aids the working ease.
Decision-making : The function of organizational structures leads employees to understand to
take decisions to their managers. The structure of Marks &Spencer leads helps in understanding
to the superiors that which employee is good decision-making capability.
Effectiveness of interrelationship
Therefore, there are various organizational functions which helps in achieving objective
of Marks &Spencer. Various function of organization can work in a systematic way when there
is an appropriate organizational structure. The inter relationship between both the organization
will aid the employees to work effectively and smoothly with any problems.
M2
In M&S, there are different functions and operations promoted to develop significant
advantages. For instance, marketing function consider positive interrelationship with different
department to promote more desired level of results. With this regard, hierarchical structure
mainly adopted to take desired level of results at workplace.

P4 Identify the positive and negative impacts the macro environment has upon business
operations, supported by specific examples for the chosen organisation.
To analyse the positive and negative impact of the macro environment on to the business
operations the PESTLE analysis has been performed. PESTLE consist of the factors like
political, economic, social, technological, legal and environmental which can affect the working
of the business operations .
Political : Marks &Spencer lead to the decreased sourcing costs and have been favoured
through Ecs, free trade agreements. In international market the Marks &Spencer have the
disadvantage due to higher cost. They lack of clarity of UK government on energy scheme a plan
for CSR , have negatively affected.
The government sets the rules for companies to follow the health and safety standards like ,
planning for hazard identification, risk assessment and risk control (Bhowmick and Prasad,
2017). If the organization do not abide these regulation they will be fined or in even some cases
they have to close their organization. Marks &Spencer did not abide by the British Standards as
they were charged for neglecting health & safety regulations after a door fell on an employee.
Economic Factors
There is an uncertain economic outlook currently which can affect the retail sales, as the
customer's is having unavailability of of spare cash to be expended on luxury items like clothing
and food luxuries. Discounted pricing of competitors have affected the Marks &Spencer.
Customers ere attracted to quality with value as Marks & Spencer focuses on higher quality
which only lead to short-term loss. Marks &Spencer are required to work on with a market flow
if they want a sustainable sale because financial crisis leads the price sensitive consumers.
Socio cultural factors
Millennial needs a change strategy to cater for a new segments over the change from
baby boomers into a generation x. Baby boomers are no longer prime consideration they are
becoming retired.
Technological factors
Due to having strong media presence and online capture it is well to capitalize on this
avenue Marks &Spencer. Consumer know a days are more tech savy, they prefer mobile
commerce and online retailing to in store purchases and online retailing to in-store purchases.
Marks &Spencer have to make their tight presence in the digital platform to take the advantage'

Legal Factors
Marks &SpencerMarks &Spencer permits the omni channel experience by permitting
consumer option for home delivery or in store pick up. Decision of exit of EU with various
retailer have to face the legal action.
Environmental factors
The plan A for Marks &Spencer is well place in capitalizing on its success. The
increasing awareness of consumer on ethical green practices would require stricter at Marks
&Spencer.
M3
With the help of PESTLE analysis, it can be stated that market where the operations and
functions positively expanded easily assessed. Political factors are highly influence to maintain
more success in the business. Therefore, it considers political stability that assists to attain more
effective growth at workplace. Furthermore, GDP of the country also influence to increase
employment opportunities in the enterprise with successful operations and functions.
P5Conduct internal and external analysis of specific organisations in order to identify strengths
and weaknesses for the chosen organisation
Internal and external analysis helps organization to identify the strengths, weaknesses
opportunities and threats. For the better understanding the environment of the businesses the
internal and external analysis is done (Bah and Fang, 2015). It allows to discern then
opportunities and threats in the area of business. The external analysis looks wider business
environment that affects business. While the internal analysis looks those factors of business
which are strengths and weaknesses.
the internal and external analysis of Marks &Spencer is done under. It includes the strengths
and weaknesses which are discussed under
Strengths
 Strong offering in line with latest industry trends
 strong e commerce infrastructure
 highly effective corporate social responsibilities focus on enhancing the customer experience
Weaknesses
 financial performance is poor

 to much rely of the markets of UK make it vulnerable to the conditions of market in the
local country.
 Future of Marks &Spencer in China is in term of toss.
 Loss of customer's confidence due to frequent product recalls
Therefore, above mention factors are obtained by conducting the internal analysis of the Marks
&Spencer.
The external analysis includes the opportunities and threats which are discussed under
Opportunities
 Planning for the investing in Indian market
 To bolster its market position Marks &Spencer have to make online presence
 Reshaping their textile segment
 Simplifying their operating model.
Threats
 Depreciation of sterling post Brexit
 Tough competition in the UK sector of food
 Dynamic trends in the clothing.
Therefore, above mention factors are obtained by conducting the external analysis of the
Marks &Spencer.
P6 How strength and weaknesses interrelate with external macro factors for the chosen enterprise
In the chosen enterprise, strength and weaknesses interrelated with external macro factors
in following consideration:
Political factors: Political factors of in UK determines with positive consideration. This is
because Marks and Spencer offering products with the latest market trends. Therefore, it
considers creative effectiveness to gain government attention at workplace. In this regard, the
chosen organisation easily operate in new areas of the country.
Economic Factors: Economic factors consider positive impact on the performances of the
organisation. This is because Marks and Spencer possess highly effective corporate social
responsibilities at workplace. It assists to focus on maintain desired level efficiency.
Socio cultural factors: Marks and Spencer also deal with the customers needs and requirements.
Therefore, it considered positive impact on overall results and outcomes which ascertained

through gain more systematic work performances. In China, it is more effective to perform
several functions and operations at workplace.
Technological factors: Advance technology of China influence positively to Marks and Spencer
so that they are able to communicate several benefits in desired manner. In this regard, it can be
stated that effectiveness of the country successfully develop to maintain more significant
advantages at workplace.
Legal Factors: In the new market of Marks and Spencer, there are several regulations and norms
must be followed that are regulated by the government (Apăvăloaie, 2014). In this consideration,
China regulates with tough rules and regulations which create negative impact on overall work of
the country. In this regard, the chosen business need to follow all rules and regulations that
assists to operate in new areas easily.
Environmental factors: In this regard, it can be stated that Marks and Spencer need to maintain
security and effectiveness in the new areas of the nation. With the help of the regulations and
norms, it can be stated that chosen organisation will able to communicate several benefits in the
China. However, it influences negatively on the desired level results.
M4
SWOT analysis highly influence to the business to take appropriate decisions. In this
regard, creativity will be successfully develop to identify different opportunities in the market.
On the basis of strength, it can be stated that positive growth of the company also develop in new
areas to promote desired level of results.
CONCLUSION
From the above report it can be concluded that business environment plays an important
role in assessing the position of the business. Present assignment has provided the different types
and purposes of organisation. It has provided the size and scope of the range of organization.
Research has also provided the deep insight of relationship between different organisational
functions and how they link to organisational objectives and structure. The report has provided
the information about the negative and positive impact of the micro environment. It has
explained the SWOT Analysis and their interrelationship with organization.

REFERENCES
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