Business and Business Environment Analysis of Marks & Spencer

This report provides a comprehensive analysis of Marks & Spencer's business environment. It begins by defining the purposes and legal structures of various organizations including private, public, and voluntary sectors, and their sizes and scopes. The report then examines the relationship between organizational functions and objectives, specifically in the context of M&S. Furthermore, it delves into the positive and negative impacts of the macro environment on M&S, employing PESTLE analysis to assess political, economic, social, technological, environmental, and legal factors. A SWOT analysis is also conducted to identify the company's strengths, weaknesses, opportunities, and threats, followed by an exploration of the interrelation between these internal and external factors. The report concludes by summarizing the key findings and implications for M&S's strategic management and future performance.

Business and Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose of different kinds of organisations and their legal structure................................1
P2 Size and scope of different kinds of organisations............................................................4
P3Relationship between organisational functions and objectives..........................................5
TASK 2............................................................................................................................................6
P4. Positive and negative impact of macro environment on business activities of M&S......6
P5. SWOT analysis of organisation........................................................................................9
P6. Interrelation of strengths and weaknesses of firm with its external macro environment 11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
.......................................................................................................................................................14

INTRODUCTION
In current era, business environment directly impacts on employee's working
performance and quality. Thus, it is necessary be mange and develop healthy working
environment within the business firm. In the other hand, in this report Marks and Spencer has
been chose as an organisation. It selling clothes, foods and home products to customers with
better and effective quality. Moreover, it will be discussed about private, public and voluntary
sector companies as well as will be explained their size and scope in an effective and efficient
manner (Aula, 2010). In the other hand, PESTEL analysis method will be used by selected
organisation for analysing major macro factors as well as SWOT analysis techniques also will be
carried out by M&S for identifying strengths and weaknesses.
TASK 1
P1 Purpose of different kinds of organisations and their legal structure
There are different type of organisation which operated and dealing in several areas.
Thus, as per working environment effectively can be identify their nature and major purposes
behind establishing in the competitive market.
Private limited company
In context of private sector, firms are working for earning high profits as well as to
compete with their major competitors in outside environment. For example: Marks and Spencer.
Therefore, they focuses on top provide all over services and facilities to their employees so that
they can effectively complete their operations and achieve their targets (Organisational structure
and career, 2017). Due to this, private companies can enhance their profitability and productivity
in a impressive manner. Thus, for every private business firm must be analyse and evaluate the
market condition and customer's demand and expectations from organisation. With the help of
survey and research employees of the business firm will significantly perform per their tasks and
provide appropriate and effective quality of products and goods to customers as per their needs
and requirements. So that they can get proper satisfaction as well as build a brand image in their
mind towards company as well as their services. For example: Marks and Spencer is the private
sector company of UK. Thus, one of the major purpose of this business firm is to be earn high
number of profit as well as set a effective brand image in the market place.
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Drawing 1: Legal structure of Marks and Spencer
(Source- Organisational structure and career, 2017)
Public sector company
Public sector companies are working for society’s welfare and development. For
example: NHS Basically, public sector companies are regulated and controlled by
government of the country as per their rules and regulations (A guide to the NHS, 2017).
Thus, legal authorities and government of the nation has all over rights and powers to regulate
and control the business firm. Therefore, these type of organisation are focuses on to provide
better quality of products and goods to customers as well as provides several opportunities to
them. So that they can enhance their working performance and skills in a effective and efficient
manner. For example: NHS (National Health Service) is a public company of UK. Hence, this
public sector organisation of main purpose is to be provide better and effective health care
services to patients so that they can get proper satisfaction towards the health issues.
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Illustration 1: Legal structure of NHS
(Source- Rivett, 2016)
Voluntary sector
These type companies are non- profit organisations who are working for providing and
full filling the basic needs of kids and persons such as education, home, food, clothes, and so
more. For example: World vision. So that they can live in the effective and efficient manner.
(Structure of World Vision, 2017) In which included NGOs, charity and non-profit organisation,
those are not working for earn profits whereas they focuses on to give a normal life to person
who does not have any family members. For example, World vision international is the charity
of UK. Thus, one of the major purpose of this charity is to provide proper basic services and
facilities to person so that they can effective survive their life .
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Illustration 2: Legal structure of World vision
(Source- Structure of World Vision, 2017)
P2 Size and scope of different kinds of organisations
As per the above defined three types of organisations such as private, public and
voluntary sector, their working systems and purposes are different from each other. In context of
private sector, different forms of business are there like sole proprietorship, partnership, joint
ventures and so more. For example: Marks and Spencer is one of leading and largest retail
companies of UK. It is dealing in food, clothing and house hold products. Apart from this, at
this time revenue of this company is £10,622 million. As well as number of employees are
approximately 82,904. In the context of public sector, these type of business firm are regulated
and controlled by government and legal authorities of the company as per their rules and
regulations. Apart from this, public sector companies are working for society welfare and
development thus they focus on to provide appropriate services and facilities with better quality.
So that, these company can full fill needs and requirements of the customers in a effective and
efficient manner. For example: NHS (National Health Service) is the public health care
organisation which regulated and controlled by government and legal authorities of UK. In
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which approximately 1.4 million employees are working at this present time. Additionally,
turnover of this company is £ 971 million.
In the context of voluntary sector, in which included NGOs, charity and non-profit
organisation. These type of organisations are working for providing basic services and facilities
to kids those does not have family such as education, house, foods, clothes and so more. These
type of organisations are controlled and regulated by government and legal authorities of the
country. As well as large companies are also provide the charity to NGOs, charity and non-profit
organisation so that they can effective take care of person. For examples: World vision
international is a charity so that revenue is US$2.79 billion in 2011 and number of employees are
44,500. As per the number of employees, and revenue can effectively identify and examine the
size of scope of the business firm.
P3Relationship between organisational functions and objectives
There are several types of business firms such as public, private and voluntary, thus there
working style and system are also different from each others. Apart from this, all over business
firms focuses on their goals and objectives which they seeks to be attain in future as well as in
the effective and efficient manner. In the context of Marks and Spencer, it is one of the leading
and largest retail private sector company which focus on to earn high number of profit from
outside market as well as it seeks to be set a brand image in the market place. Apart from this
every business firm perform several functions such as organising, controlling, marketing, sales,
producing, retailing, managing, accounting and so more. All these functions are co-related with
objectives and goals of the business firm. Therefore, it is necessary to be clarify the vision and
mission of the enterprise to all over employees. So that they can also decide their targets and
goals which they will achieve in future in a systematic style. Moreover, this organisation wants
to be increase profitability and productivity thus, it focuses on to adopt appropriate and effective
methods and strategies in the working environment so that all over employees will systematically
and effectively perform the tasks and operations then they can attain their decided objectives and
goals in a impressive manner . Additionally, this organisation seeks to be expand their business
firm at national and international level so that respectively increase revenue and sales across all
over the world.
In the other hand, human resource department of the Marks and Spencer wants to appoint
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applicable and skilled employees with the organisation. So that they can attain their targets and
objectives in future as well as in a effective and efficient manner. Apart from this, after
appointing and hiring new candidates within the company then have to be provide training to
them towards their works so that they can learn how to they should perform the operations.
Therefore, it is also required to be conduct some motivation activities and functions within the
organisation for employees so that significantly increase the working performance and quality as
well as improve their motivation and confidence level (Cantwell Dunning and Lundan, 2010).
While staff members perform their tasks with high motivation and confidence level then
respectively increase their working style. Due to this, systematically improve the profitability
and productivity of the business fir in a effective and efficient way.
TASK 2
P4. Positive and negative impact of macro environment on business activities of M&S
There are various factors that directly and indirectly affects the business operations and
functions in better manner. External factors of company will provide high level of activities
which has to be manage in better manner (Business Environment. 2017). It includes political,
economic, social, technological, environment and legal. PESTLE analysis of Marks and Spencer
which are discussed as under:
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 Political- In every firm, business can operate in different countries which are suitable for
the firm. They mainly face various situations which directly impact on business functions
and activities in better manner. The positive impact is to implement all rules and
regulations which are made by government on small and large organisation and negative
impact is that sometime these norms and regulations will badly affected on business
operations. Marks and Spencer face political issues which directly affects its business
activities and functions in effective manner. The positive of political factor is that all laws
and regulations are implemented on every firm whether it is big or small. Negative
impact on these laws and norms during exchange of various products and services at
global level.
 Economical- All company has manage economy with effective manner because it
directly impacts on country economic growth (Chow and et. al., 2012). It is necessary for
represents different conditions and situations that face by business in the marketplace.
Positive impact on economic is that increasing economic growth rate positively and
negative impact is that exchange of foreign currency rate of countries which badly impact
this factor. The positive impact of economical factor are free policy provider which
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Illustration 3: PESTLE Analysis, 2017
(Source: PESTLE Analysis, 2017)

motivate existing firm for increasing export and import services at international level and
negative impact on these exchange of foreign currency which directly affects on past
deals of company.
 Social- It is that factors which help in changing various latest trends that attracting large
number of customers towards specific products and services. It will help in gaining
attention of buyers towards particular goods and services in appropriate manner. Firm
adopt strategies and policies that assist in enhancing their brand image in the large
market. Positive impact of social factor is that the firm will introduce new products in
innovative way and serve in large market and negative impact is that foreign goods will
affects the marks and Spencer selling strategies and reduce profit level. Positive is when
firm will launch new and innovative products and services with best quality and capture
large market area and negative impact when marks and Spencer adopt latest techniques
and methods for attracting more buyers.
 Technological- Marks and Spencer requirement to adopt various techniques and methods
that is necessary for increasing growth and development (Bill Pasmore PhD and CMC,
2010.). Firm will update latest techniques and tools which enhancing customers demand
and wants in better manner. Positive impact on this factor is that company will adopt
latest technology which help in attracting more customers and negative impact is that
lack of functioning skills among organisations employees. When marks and Spencer
adopt new and updated technique which help in increasing company growth ad success in
effective manner. On the other side negative impact is that when their employees have
lack of knowledge by which they can not manage complex methods.
 Environmental factors- since the company is dealing in clothing products they have to
ensure that they use material which is environmental friendly. This will improve brand
image and also the demand in the market (SWOT Analysis. 2017). Company has to take
care that it do not do any harm to the surroundings from its operations like using
chemicals or disposing waste in open as this will have a great impact on the health of
customers and society. Positive impact is that this factor provides necessary resources
which help in increasing growth of firm and negative impact is that poor resources
affected the manufacture department functions and operations. Positive impact of
environmental factor on marks and Spencer business activities are directly affects
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environment of company in positively and negative impact is that waste paper and raw
material of firm will affects the environment.
 Legal factors – It consist of all those sections that fall under the legislations. In this it has
to be given care that no unfair trade practices are followed at the work place (Commander
and Svejnar, 2011). Since the company is operating globally they have to be more
carefully regarding the export and import laws that all the formalities are full filled as if
found that they do not meet the required criteria than a strict legal action is taken against
the brand name. The positive impact of legal factor help in reducing exploitation of
employees and negative impact is that all company rules and norms must be followed by
workers in proper manner. Marks and Spencer business activity recently affected by
major laws and regulation which are made by government and also provide employees
rights in effective manner. On the other hand, negative impact is directly affects whole
structure of laws and regulations of organisation in pessimistic manner.
P5. SWOT analysis of organisation
For every organisation SWOT analysis play very crucial role in the growth as well
success in competitive business market. Through SWOT analysis company can identifying its
internal or external factors which can affect its position and performance (Cordes Richerson and
Schwesinger, 2010). It is very essential for organisation to identify its strengths and weaknesses
to operate their services in systematic manner. SWOT analysis is define as below:
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Illustration 4: SWOT analysis
(Source: SWOT analysis, 2017)

Strengths: Marks and Spencer is largest retailer organisation in United Kingdom which
provided different range of products and services to their customers in good quality which help
company to maintain their place in competitive business market place. Company operate their
services in different countries (Robbins, Judge and Campbell, 2010). They cover larger market
area to increase their number of customers through which their profitability level as well as
productivity level increase. It will make strong strategies and innovative plans to give tough
competition to their competitors. Marks and Spencer is multinational company as company have
their own brand and goodwill in market place. They use high technology and tools for
advertising and promoting their products and services in various locations. Company provide
high quality products and services to peoples in reasonable price so that general people can also
purchase their products and services.
Weaknesses: Company operates many activities and tasks at the same time due to which
organisational profitability and productivity decrease. According to analyst the sale of company
goes down because of high cost of products. So, company should make reasonable price of their
products so that general people can purchase them easily. Other weakest point of company is that
the staff members of firm cut off from operational activity of company which reduce the profit
level as well as productivity (Cronanand and et. al., 2011). Due to this, enterprise have to do
recruitment, training and hiring to maintain their position. The Marks and Spencer start to use
digital technology too late in their operation and task because of this, company face high loss and
wastage at workplace.
Opportunities: With the help of new opportunities company can increase their
profitability and productivity level in competitive business market place. Company can develop
something innovative and new to cover large market segment. The main benefit for cited firm is
that when the sale of clothing segment decrease in market area on the other side sale in food item
highly increase which help company to maintain their stability in market place. The firm have
around six million consumers overall worldwide (De Jonge, 2011). Apart from this, organisation
introduced so many new services to attract more and more customers towards their services. It
help to increase the profit level and sale of products more than their competitors.
Threats: The biggest threat for marks and Spencer company is continuous changes in
economic which directly decrease the productivity as well as profitability in business market
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