Business Administration: Markets, Innovation, and Finance Report

This report provides a comprehensive analysis of business administration, using Marks and Spencer as a case study. It begins by explaining the characteristics of different business markets, including B2B and service markets, and explores the interactions between businesses. The report then delves into business innovation, defining it and explaining the uses of innovation models, sources of support, and the process of product and service development. It also examines the benefits, risks, and implications associated with innovation. The report further discusses the importance of financial viability for an organization, the consequences of poor financial management, and different financial terminologies. Additionally, it explains the use and management of budgets. Finally, the report covers the principles of marketing, the sales process, market research, the value of branding, and the relationship between sales and marketing. The report emphasizes the importance of adapting to market needs, legal obligations, and effective financial management for organizational success.

Business Administration

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Explain the characteristics of different business markets.....................................................3
1.2 Explain the nature of interactions between business within a market..................................3
1.3 Explain how an organisation's goal may be shaped by the market in which it operates.......4
1.4 Describe the legal obligations of a business ........................................................................4
TASK 2 ...........................................................................................................................................4
2.1 Define business innovation...................................................................................................4
2.2 Explain the uses of models of business innovation...............................................................5
2.3 Identify sources of support and guidance for business innovation.......................................5
2.4 Explain the process of product and service development ....................................................5
2.5 Explain the benefits, risks and implication associated with innovation................................6
TASK 3............................................................................................................................................6
3.1 Explain the importance of financial viability for an organisation.........................................6
3.2 Explain the consequences of poor financial management....................................................7
3.3 Explain different financial terminology................................................................................7
TASK 4............................................................................................................................................8
4.1 Explain the use of budget......................................................................................................8
4.2 Explain how to manage a budget..........................................................................................8
TASK 5............................................................................................................................................8
5.1 Explain the principles of marketing......................................................................................8
5.2 Explain sales process.............................................................................................................9
5.3 Explain the features and uses of market research.................................................................9
5.4 Explain the value of a brand to an organisation....................................................................9
5.5 Explain the relationship between sales and marketing ........................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business administration is defined as a proper management of all operational activities of
a firm which includes supervision and evaluation of all activities. In addition to this, it is a proper
administration of firm that consists the efficient use of resources so that, organisation can easily
achieved its preset goals and objectives. Marks and Spencer organisation is taken an example to
complete present assignment. In this assignment we discuss about the characteristics of different
business markets with explaining the nature of interaction between organisation and market.
Organisational goals,legal obligations, innovation in organisation,uses of various model related
to firms and many more are discussed in this report.
TASK 1
1.1 Explain the characteristics of different business markets.
Business markets- These markets are referred to the various organisation which
manufactures goods and services in order to provide facility to their customers. Some of the
characteristics are explained as under:
B2B (Business to business)- In this characteristic a business organisation make products
for selling it to another organisations there are no involvement of customers
Service market – Service market can be defined as an organisation who provide services
to their customers directly with charging some money.
There are various markets such as consumer market in which an organisation such as M&S sells
their goods to buyers and other one is industrial market in it goods are sold to another industry.
1.2 Explain the nature of interactions between business within a market
The nature of market in B2B and service market is modified according to the market
needs and requirement of customers and it is also changed as per the parties demand who are
involved in it.
B2B industry interactions are starts from the employees recruitment when they get
employees they starts building relations with other business organisations in order to expand
their business therefore, they maintain a long term interactions with other firms (ZHANG,
2011).
Whereas, service market's nature is modified according to the needs of different
customers. As they have many customers so they have to updated as per the needs of various

clients and it is essential to changing the nature because this market is updated through market
trends.
1.3 Explain how an organisation's goal may be shaped by the market in which it operates.
Goals of an organisation are moulded by business markets in which they operates for e.g.
M&S is engaged in retail industry therefore, their management has to set their targets at the
starting of week and define roles and responsibilities to every department with creating proper
plans and policies for completing it. After completion of the week the management of M&S have
to review it. In successfully completing the target it is essential for every department to provide
proper satisfaction to their customers therefore, company can get competitive advantage in
marketplace.
1.4 Describe the legal obligations of a business
There are various obligations which are essentially adopted by an organisation. M&S has
a huge brand image so they must adhere to Companies act 2006 which includes two acts in it
they are as following:
Equality Act 2010 – M&S is a big company and has a huge market presence in the world
and there are more than 80000 employees who are working in it. Therefore, management of
M&S have to provide equalities to their staff members (Wang, J. 2012).
Data protection 1998 – As M&S is a big industry and they have large number of
workers so, they have to protect their details. So that, their confidential information should not be
misused by their rivals.
TASK 2
2.1 Define business innovation
Business innovation is defined as a generation of new idea for a product. In addition to
this, Business innovation is a process in which an organisation introduce a new product or
service in the market for getting effective outcome. There are various organisation who modifies
their products according to the requirements of their customers in the market. For attracting their
customers in order to increase their sales.

2.2 Explain the uses of models of business innovation
There are various models of business innovation and they can be implemented by an
organisation for generating new ideas and enhancement of skills in their employees. There is one
model of an innovation which defines 4ps of innovation it is given as under :
Product – In this part, organisation have to modify their products who are existing in
market.
Process- In this, organisation have to modify their channel in which the product is
produced.
Position- Under this part, company have to change their introducing method of product
in marketplace.
Paradigm – In it, firm has to modified its fundamental methodologies and systems which
can help in introducing a new product in more effective manner.
2.3 Identify sources of support and guidance for business innovation.
There are a huge competition in the marketplace so various products are failing their sales
in the market due to various issues such as poor plans in marketing, little difference from other
goods who are existing in the market. As M&S has a strong brand image in the marketplace so,
they have to analyse the current market trends and needs of customers then they should make
specific plans and strategies for launching a new product in the market. The best way for taking
support in falling a product is taking feedback from the customers about the goods and services
which supports organisation in improving their services (CUI, 2012).
2.4 Explain the process of product and service development
The process of product development is briefly explained as under:
 Idea generation – It is the first phase of process in it, employees gave their better
suggestions in developing a new product for example- M&S wants to launch a new
mobile app so their management develops a idea for launching mobile app.
 Product evaluation – In this part the idea is evaluated with measurement of its
effectiveness in the marketplace. For example- M&S evaluates their app with comparing
existing apps of their competitors.
 Strategic analysis- In this, organisation makes specific plans and policies for launching
the product. In this phase marketing team of M&S develop strategies for getting effective
result of their newly launched mobile application.

 Product development and testing – Under this part of New product development
process, organisation tests their newly developed product with its quality value and
performance. Management of M&S should tested their newly developed mobile
application along with its features in this phase.
 Market testing- The product is launched in the marketplace for understanding its
effectiveness in the market which can be developed by taking reviews and feedbacks
from the customers by the organisation. In this part M&S will launch their application
and their marketing team will taking feedbacks from their targetted customers in order to
increasing attractiveness of mobile app.
 Commercialisation – After considering all parts company can launch the product in the
market with making proper plans for getting effective outcomes of it. M&S will launch
their newly developed mobile application in the market with developing effective
strategies for it.
2.5 Explain the benefits, risks and implication associated with innovation
Business innovation provide assistance to management in various ways such as
improvement in productivity and profitability with reducing costs. It can be said that organisation
get growth and sustainability by innovation. There are various risks involved in business
innovation that may be insufficient funds of the organisation, unable to attract customers
towards their product, falling brand image and many more (Scheer, 2011). If the brand image is
falling of an organisation their management can't introduce a new product in the market.
Whereas, the implications can be a huge loss of funds in any activity or bankruptcy of firm.
Company who have a bad brand image in the market and they can't provide satisfaction to their
customers so, innovation can't be implemented in that type of organisation.
TASK 3
3.1 Explain the importance of financial viability for an organisation
Financial viability- It is an ability of an organisation which is related with generating
funds for operating its operational activities. As an important organisation in marketplace M&S
is financially viable because their management is able to perform their functions and operations
in a limited time period. There are some importance of financial viability which are as following:
 Financial viability provide balancing between the profit and cost.

 It provides financial information of an organisation.
 It defines financial stability of a firm
 It helps in allocating resources in the firm.
3.2 Explain the consequences of poor financial management
Fiscal management in an organisation is essential which includes appropriate books for
balancing the business accounts. Financial planning is important for every organisation but small
organisation cannot make innovative ideas because they can't perform the innovation process due
to their low management of finance. For example In large organisations as M&S financial
experts have to explain about the financial reports of the company if they fails to explain they
will lost their job or banned from the finance department for 2 or more than 2 years. So, It can be
said that fiscal management is necessary to maintain in every organisation because it provide
financial report of the company (Scholl, 2011).
3.3 Explain different financial terminology
As an experienced player in marketplace, M&S have a proper knowledge of business. So,
It is important to maintain various financial accounts therefore, management can understand
about their market position in effective manner. There are two types of reports which are made
by business organisation they are as follows
 Financial accounting – In these accounts the final accounts are prepared by the
organisations at the end of year it is necessary for preparing because it provide assistance
in filing tax to the company.
 Management accounting – It is maintained for performing operational activities in
effective manner. In these accounts various budgets are prepared for different
departments it also helps in effective utilisation of resources.
TASK 4
4.1 Explain the use of budget
Budget- It is an internal estimation of the organisation for income and expenditures.
Which have to followed by the employees. A Budget is prepared at the starting of financial year
for estimating sales and cost in an organisation. There are some uses of Budget which are as
under:

Project planning- It provide support to the management in managing cost of the project
and allocating resources for implementation.
Documentation- It manges and regulates the profitability and performance of
organisation with expenditures
Funding – It is used in identification of fund resources to the company because when
companies are preparing budget it provides the measurement of growth and sustainability so they
can easily find the sources of funds through which organisation will achieved their targets in
limited time period.
4.2 Explain how to manage a budget
There are various methods which can be used by company in managing of budget they
are as following:
Set plans- at the time of budget preparation in organisation management have to create
an target in mind. For example if market is increasing so organisation can getting profitability
from it by increasing sales which should be helpful in gaining revenues.
Identify income and expenses- at the time of making budget company have to identify
various factors which can be influenced their sales in market such as perceptions of customers,
change of market trends etc.
Design your budget- Budget have all the appropriate plans which can be used in critical
situations such as falling of sales or brand image of company.
TASK 5
5.1 Explain the principles of marketing
Marketing is a process in which all the factors included such as identification of needs,
requirements of customers and satisfaction of customer's demand etc. are undertaken. In
addition to this it is an action of selling goods or services to their customers by influencing their
interest using promotional tools such as T.V advertisements (Killing, 2013).
Products are delivered as per the needs of the customers it can be possible through
effective marketing because effective marketing is providing satisfaction to the customers.
Effective marketing process is starts from targetting customers of a product and focuses on key
element through which product selling can be increased.

5.2 Explain sales process
There is a process which have to followed by the marketing team of every organisation in
order to making profitability in the firm. It can be further understood by following points:
Information gathering – For selling a product company have to establish needs and
requirements in the targetting customers after targetting they can easily Introducing the product
Matching- Marketing team have to discuss features with the customers for developing
their needs and demands of the product
Closing the sale- It is the last step of process, In it marketing team analyse the sales
figure and level of satisfaction of customers which will be undertaken in near futures.
5.3 Explain the features and uses of market research
Marketing research is used by the company for identification of effectiveness of the
marketing process of their product. It is used for understanding new products and creating a
specific distribution channel for sales. It provide supports to management in finding out sales
figures of product in marketplace (Draper, 2017.).
It involves the origin of the problem, evaluation of budget and data analysis which makes
the product different from their rivals product in more competitive way.
5.4 Explain the value of a brand to an organisation
Brand is defined as a name or symbol which is used by organisation to gave identity to its
products in order to make different product from their competitors. It provide helps to the
management in customer recognition due to which firm can enhances its sales for example M&S
has their own website and they have a different symbol which makes their product different from
their rivals. It also provide sustainability and attraction of customers in the organisation.
5.5 Explain the relationship between sales and marketing
There are various business organisation uses sales and marketing concept. These two
factors are providing profitability to the firm but they have different aspects. Marketing is
defined as an promotional tools which includes advertisements, magazines etc. it is used by
organisation in order to increasing sales. Whereas, sales is an act which is performed by an
individual for getting outcome of its efforts. Both have various aspects but they are used by
organisation in getting growth and sustainability (Hanf, 2014).

CONCLUSION
It has been concluded from the above project report that business organisation performs
several functions in order to achieve huge sustainability and profitability. For this, the managers
of various departments should contribute mutual support by helping each other for better
functioning.

REFERENCES
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