Analyzing Marks and Spencer's Business Environment: A Report

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Business and the Business Environment
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Business and the Business Environment
Table of Contents
Introduction......................................................................................................................................4
LO1 Different types, size and scope of organizations.....................................................................4
P1: The different types and purposes of organization.................................................................4
P2:Size and scope of a range of different types of organizations................................................6
M1:The business objectives and product and services offered by the organization....................6
Lo2 Demonstrate the interrelationship of the various functions within an organization and how
they link to organizational structure................................................................................................7
P3: The relationship between different organizational functions and how they link to
organizational objectives and structure.......................................................................................7
M2:The advantages and disadvantages of interrelationships between organizational functions
and the impact that can have upon organizational structure........................................................8
D1:A critical analysis of the complexities of different types of business structures and the
interrelationships of the different organizational functions.........................................................9
LO 3: Demonstration of both the positive and negative influences /impacts of the macro
environment that have over the business environment by using the contemporary examples......10
P 4: Identification of the positive and negative impacts the macro environment has upon
business operations, supported by specific examples................................................................11
M 3: Appropriate application of the PESTLE model to support a detailed analysis of the macro
environment within Marks and Spencer....................................................................................13
D 2: Critical interpretation of the impacts that both macro and micro factors have upon
business objectives and decision-making..................................................................................14
LO 4: Determination of the internal strengths and weaknesses of specific businesses and explain
their interrelationship with external macro factors........................................................................16
P 5: Internal and external analysis of specific organizations in order to identify strengths and
weaknesses.................................................................................................................................17
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Business and the Business Environment
P 6: Explanation of the interrelation of strengths and weaknesses with external macro factors
...................................................................................................................................................18
M 4: Appropriate demonstration of SWOT/TOWS analysis and justification of the way they
influence decision-making.........................................................................................................19
D 2: Critical interpretation of the impacts that both macro and micro factors have upon
business objectives and decision-making..................................................................................20
Conclusion.....................................................................................................................................21
References......................................................................................................................................22
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Business and the Business Environment
Introduction
There are many types of business organizations present in the market. All the business
organizations have never bothered about their financial profit on the other hand the there are
many organizations that has public ownership or changing ownership due to their shares and
stakes. There are many functions that are directly affected or influenced by the type of a
organization. This is a report which is dealing with the United Kingdom’s most coveted retails
shop chain namely Marks and Spencer’s. This report mainly deals with the different type of
organizations and their legal structures and also their visions and their limitations. The report
also includes the purposes of the organizations. It depicts on the point that connects the business
objectives and the services of the products. The report also consists of the functions those are
implemented in a company of retail shop such as Marks and Spencer’s. The report also includes
the inter relations of all the functions that is implemented to make profits out of the company and
the impact that is also occur in the particular company. The report of Marks and Spencer’s also
deals with the disadvantages and advantages of the functions and also the influence that it makes
in the organizational structure. This report also emphasizes on the fact that there is a slightest bit
of relationship between all the macro environments and the origination’s own structure that
directly controls the efficiency of the workers and also the proficiency of the company. Internal
strength and weaknesses are very much evaluated in the company and their results are also
present in the reports of Marks and Spencer’s (Schaltegger and Burritt 2017).
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Business and the Business Environment
LO1 Different types, size and scope of organizations
There are different types of organizations in basis of size scope and ownership of the company
and in the world of business and the ever growing market. All the businesses have something to
perform in the market. The market has a huge and positive impact on its growth by every
company which is doing their respective work and profit from the market and the customers have
a vital role also to influence the business and also the organizational structure and its work
environment also. Mainly there are three types of businesses present in terms of the ownership of
the company or a business (Storey 2016)..
P1: The different types and purposes of organization
Sole proprietorship
Sole proprietorship is a type of ownership where there is one and only owner who controls and
maintains all the aspects of the company. The Sole proprietorship is very much unilinear in terms
of their work flow and their work proficiency. In this type of organizations the owner is a kind of
dictatorship of the owner can be seen. In Sole proprietorship the debt for the business which is
owed from the bank or from other sources are the personal liabilities of the only owner. The
business threats and financial debacle are also mainly suffered by the Sole proprietor or the
owner of the business, the main thing is that all the responsibility of that company is directly
showered upon the lone owner. The owner is also has the right to employ the recruitments. Many
small medium enterprises are very much used to in Sole proprietorship. It has his opportunities
and chances to grow but it has its own setbacks (Ginter et al,. 2018). .
Partnerships
In this type of organization there are two or more than two people has the ownership of a
individual company or a business firm. The profits have been shared by the owners. Like the
Sole proprietorship organization the partners or the owners of the company has the authority to
recruit the men or the employ the employees for the organization’s human resource system... The
company’s debts are also the personal liability of the owners. The ownership of the company is
very much rigid that it has been a stable and same for quite a long time. The responsibility of the
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Business and the Business Environment
company is often equally divided into the owners of that particular organization. The
organization’s all the legal trials and tribulations are handled by the owners. The owners are
actually divide the profits among them and also can determine the salaries of the employees.
Many medium sized businesses are the examples of the partnership type of organization. The
partners rather than the owners’ skill are very much maintaining the pace of the company. Many
law firms are also examples of the this kind of organizations,
Limited companies
These kinds of companies are very much systematic in their way of ownerships. There is no
fixed ownership of the organizations. The organizations are governed by the shares and stakes of
the organization. Unlike the sole proprietorship and the partnerships the limited companies has a
equal sense of responsibility among the managers and the employees. The liabilities also belong
to the company itself not the owners. The owners are not stable or fixed because of selling shares
and stakes of the limited companies. The ownership is continuously changing. The limited
companies are very much dependent on the managers who are working on that particular
organization. It has a good set of administrative system which includes shareholders,
stakeholders and the managers of different sectors. There are a bunch of recruiters who would
recruit the employees. The owners or rather than the share holders never interfered in it. There
are two types of limited companies.
Private limited
In this kind of limited organizations the shares of the organization is not publicly sold or bought.
The shares are never sold in the stock exchange market but it is sold in privately when the
company finds a grave lost.
Public limited
Public limited companies are very much open in terms of their ownership. The shares are sold in
the stock exchange and there is no temporary owner of the public limited companies. Marks and
Spencer’s is one of the public limited companies.
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P2:Size and scope of a range of different types of organizations
The range of scopes offered by the sole proprietor is very less than the other two because the in
sole proprietor organizations because the investment is not that much of the lone owner and the
only investor based companies never so much strong to fulfill their vision of being the best
organization among the other company. it just can offer stability where partnership organizations
also faced same kind of problems due to lack of external investors and also the conflict of
interest among the partners the main vision of the company is to have a sustainable growth
Where in the corporate or the limited company eyes to be the greatest company or be the best
company in their market. The main objective of the company is to attract as many investors that
they buy the shares and also invest handsome money to achieve their goals. Limited
organizations have very systematic approach to their respective goals.
M1:The business objectives and product and services offered by the organization
The business objective which a sole proprietor acquire is that the need of a stable position in the
market. The sole proprietor always find very difficult to grow his business. Though the lone
owner has a small amount of investment in their own company, the quality of service they
provide is not up to the mark where the partnership organizations had better amount of
investments and they also provide good amount of service but the problem is the process is not at
all systematic so, in the case of crisis the damage management procedure is not at all up to the
mark. The limited companies are very much systematic in everything. They invest a lot of money
in giving a good quality of service to the customers (Jacobs et al,. 2013). .
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Lo2 Demonstrate the interrelationship of the various functions within an organization and
how they link to organizational structure.
The organizational structure acquires many functions that comprised of management, sales,
production, and supply management. The organizational structure has a quite good relationship
with the functions that a organization performs.
P3: The relationship between different organizational functions and how they link to
organizational objectives and structure
The Marks and Spencer’s always perform some function to assure that the people or can be said
consumers can get good quality of foods and other house hold things... The customer satisfaction
is the most important thing what Marks and Spencer’s can offer. Marks and Spencer’s has
performed some functions such as packaging, product sales, marketing or advertisement. The
Marks and Spencer’s is a retail shop and the biggest in United Kingdom. Their constant growth
is due to their application or implementation off their functions so well. The functions always
very much connected with the organizational objectives and structures (Flottorp et al,. 2013).
Supply management
The supply of particular raw materials in a business is too much in need in business. Good
supply can enhance the pace and quality of the services. The supply management is one of the
key functions that are needed to give growth to the company. If the demand and also the supply
are not enough then the reputation of the company got ruined. Mainly managers of the company
handled or maintained by the managers. The manager always takes a close look on the supply
and the suppliers. The supplies are also has to be good and best in terms of the quality of that. the
managers and the employees ought to check the freshness and quality of the products and in
increasing or decreasing of certain product is decided by the stake holders in order to the
demands so this way it had affected organizational structure.
Marketing
Marketing is another important aspect that is needed to give much focus for the improvement of
a certain company. Marks and Spencer’s always has maintained good account of marketing
strategies to promote their retail shops and supermarkets. The marketing is functions that need to
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be performed to expand the business across United Kingdom. The marketing strategies have a
grave impact on the organizational structures. The organizational structure can be manipulated or
penetrated due to the function of marketing as a good amount of money is invested in it and it
focuses on a certain tagline that de4fines the product so well (Kataria et al,. 2013). .
Sales and the production
Sales of the product are also one of the important functions that have to be performed. The
organization has the main motive of the selling of the products that are manufactured in the
organization. The sale of the product will give the organization profit and also social recognition
so, it is very much important for the employees of the Marks and Spencer’s company that they
are very much focuses on the function of selling their products to the customers. The Marks and
Spencer’s has lot of managers that has to check the sales of the sales report. If the sales report is
not so good then the organizational structure will change and the stakeholders have to come into
it to solve it this way the organizational; structure affected by this function.
M2:The advantages and disadvantages of interrelationships between organizational
functions and the impact that can have upon organizational structure
Advantages
The organizational structure is somehow interconnected with the organizational functions. There
are many advantages that are why big companies such as Marks and Spencer’s has used this. The
main advantage is that it can help to grow the efficiency level of the workers and the inter
connection can help the managers as well as the stake holders to control all the aspect of the
organization and that also can help to create an innovative idea in terms of product or opening a
new shop.
Disadvantages
There are many disadvantages regarding the inter connection of the organizational function and
the organizational structure. The main problem is that often for the lack of communication
between organizational functions the organizational structure can lose their innovation and
flexibility. Another disadvantages can be found in the divisional structure where many effort and
competitiveness \can be wasted of the workers.
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Business and the Business Environment
D1:A critical analysis of the complexities of different types of business structures and the
interrelationships of the different organizational functions
The business structure is very much consists of the administration and the division of the worker
can create the miscommunication and also can decrease the work proficiency but it can help a
company to achieve their own visions, their targets and also their expected plans regarding the
company. Marks and Spencer’s always bound to give the quality of services to the customers and
also the products of the retail should be good in every aspect. The another department is their
expansion of their brand and increasing brand value to do these things the connections between
organizational functions and also the organizational structure plays a huge impact. The
organizational structure is very much solid of Marks and Spencer’s due to the organizational
function (AbuKhousa et al,. 2014)
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Business and the Business Environment
LO 3: Demonstration of both the positive and negative influences /impacts of the macro
environment that have over the business environment by using the contemporary examples
Marks and Spencer, the leading UK-based retail company that has a legacy of more over 100
years in terms of business now has ventured into food, clothing, home decor accessories,
banking, financial services in the domestic as well as in the international market scenario. As per
(Barkauskas et al, 2015) for spreading the business and elevating the market capitalization ratio
in this competitive global market, focused concentration over the elements of macro and micro
business environment is very important. Author referred that Socio-cultural, political,
environmental, economic, legal and technological factors influence the macro environment
business. Other than these elements, relationship between internal and external stakeholders,
leadership styles, sustainability of the business ideas are also some key factors of a business
environment (ODDOU and MENDENHALL, 2013). Retail Company, Marks and Spencer
Group plc has become the leading multi- national company because of its top-rated customer
service facilitation, availability of top-branded goods and services, availability of products on the
online platforms and convenient retail outlets across the globe. Marks and Spencer has been
holding its brand image and quality standards of the products and the services by strategically
analyzing their marketing and sales policies. As per the report published by Statista, (2019) in
terms of market capitalization Marks and Spencer holds over $ 6.6 billion and over $ 6.6 billion
in the sales revenue in the departmental stores industry.
P 4: Identification of the positive and negative impacts the macro environment has upon
business operations, supported by specific examples
Marks and Spencer Group Plc deals in clothing accessories like menswear, women's wear, kids
wear and home products. Being a UK-based retail giant, Marks and Spencer Group Plc
dependence upon the major stakeholders like the consumers, suppliers and distributors is quite
obvious for maintaining its retail business. This premier retail brand was started with a joint
venture or partnership between Marks and Thomas Spencer in 1894. Currently Marks and
Spencer Group Plc has become a business corporation that operates at provincial, federal,
regional and international level.
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Gupta, (2013) referred that in case of retail business model, they purchase goods or products
from the wholesalers, manufacturers or distributors to sell the goods to the end users like
corporate farms or general public. Bhatnagar and Budhwar, (2018) referred that in this business
model supply chain management plays a profound role in terms of generating and sustaining
business. A large chain of manufacturers, distributors, suppliers, retailers are responsible for
handling this supply-demand management.
Now in this part of this assessment, the ways the internal and external factors of a business
environment impact an organization are discussed in detail.
Attributes of macro
environment
Negative impact Positive impact
Political factors  Uncertainty of business
expansion has become one of
major political issue because
of Brexit deal
 Change of local and regional
government policies,
taxation methods can impact
the retail business of the
company (Talamini et al,
2013)
 Marks and Spencer focuses
on implicating the fair trade
policy into the workplace
environment that include
reduction of fat and salt in
food products, packaging
policies, recycling
procedures and ban over
animal testing
Economic factors  There could be conflicts
between small-medium
enterprises (SMEs), small
retailers regarding price
alterations
 Inflation and income
distribution could also pose
great influence over the
global market scenario of
Marks and Spencer
 Interrelation with several
economies across the globe
 Vivid product and services
that are offered by Marks
and Spencer would help the
brand to gain acceptance to
the international and
national level customer base
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