Analysis of the Business Environment for Marks and Spencer: A Report

This report provides a detailed analysis of the business environment, focusing on Marks and Spencer (M&S). It begins by exploring different types of organizations, including public, private, and voluntary organizations, and examines their sizes, scopes, and functions. The report then delves into the relationship between organizational functions such as human resources, finance, marketing, and production. A significant portion of the report assesses the positive and negative impacts of the macro environment on business operations, covering political, environmental, social, technological, economic, and legal factors. Internal and external analyses, including SWOT analysis, are used to identify M&S's strengths, weaknesses, opportunities, and threats. Finally, the report interrelates these strengths and weaknesses with external macro factors to provide a comprehensive understanding of M&S's business environment and strategic considerations.

BUSINESS AND BUSINESS
ENVIRONMENT
Table Of contents

INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Different types and purpose of organization......................................................................................3
P2 Size and scope of various types of organization.................................................................................4
P3 Relationship between organizational functions..................................................................................6
TASK 2..........................................................................................................................................................6
P4 Positive and negative impacts of macro environment upon business operations..............................6
P5 Internal and external analysis to identify strengths and weaknesses ................................................8
TASK 3........................................................................................................................................................10
P6 Interrelate strengths and weaknesses with external macro factors.................................................10
CONCLUSION.............................................................................................................................................11
REFERENCES..............................................................................................................................................12

INTRODUCTION
There are various parts which impact business hence, it is essential to consider each one of
the factors so it can be realized in better and fruitful way. There are possible results that in light
of advance in external factors organization of association has to change their game plans also. It
is indispensable to make extraordinary and long relations with customer and to match
contenders. Business condition suggests surroundings of business. It is basic to perform
approaches which impact business and this can be ground-breaking with change in time. As
condition changes so change in major. It is key that head of association has to inspect it really so
therapeutic measure can be taken, which are beneficial for improvement of business. There are
potential results that managers need to drive agents to work under changed condition so healing
measures can be taken. This report relies upon in perspective of Marks and Spencer which deals
in luxury articles of clothing segment. This association has immense picture in market and it gets
impact in light of advance in business condition. In this report there is trade about various sorts
of affiliations, their degree, and number of expert. Moreover, impact of outside and inside
variables on business.
TASK 1
P1 Different types and purpose of organization
There are various type of organisation in market environment which do differentiate
market in with great extent. Even though each and every firm is having different nature, structure
and features. Basically private, public and voluntary organisation are there who had various
different legal structures and have variety of functions needs to perform.
Public organisation: These organisation are having an primary motto of satisfying
customer needs and wants in right format and constituted for people in society as example-
schools, public hospitals. For instance NHS which do help in providing a healthcare services to
millions of people in great way. Main motto behind this is to provide health care services to
people as well. The legal structure of public company is:
 State government: They are liable for conducting all the state level work and activities.
 Central government: They do control the central and state government bodies.

 Local government: They do work at lower level and manage the work of the level only.
Private organisation: Those organisation who do come under private proprietorship and it
is known as private associations. Moreover, every task and activity is like needs to be controlled
and overseen in better manner (Onetti, Zucchella, Jones and McDougall-Covin, 2012). Marks
and Spencer is private owned firm which serve millions of people with cloths and different
works. Even though all such aspects help firm to earn higher profits too.
Partnership: It is considered as coming in contact with two people to come together to form a
business and similarly they need to work as one and also do share benefit and drawbacks as well.
Their main motto is to collect large market share in within the time period as well.
Sole proprietorship: This kind of associations and claimed and overlooked by single power of
work. These are having a control and manage on different functions of various thing.
Limited company: It is considered as lawful aspect which has separate working then the
proprietors. These organizations are made up of two things as offers and assurance.
Voluntary organisation: It incorporates all organisation that are there and having capacity
to volunteer in better manner. Hey do work for the benefit of society not for their own sake of
good. For this, endorsement and administrative expert as well there and do satisfy every people
of their particular aspect given by them in better way. For instance Oxfam is a better example
and this category is whose social motto to serve social services in better manner and provide
basic requirement done of life too.
P2 Size and scope of various types of organization
All the companies like M&S, Oxfam AND NHS are those organisation which work hard
to provide better customer satisfaction according to their requirement in market too. Size and
scope of firm needs to be defined in right format and it also help in defining the key working
areas in right context too (Palo and Tähtinen, 2011).
NHS
It is a public related firm and having various kind of functions and deals in with medicinal
service to people and it was built in around 1948 and even approximately 1.5 million individuals

do exhibit at NHS and comes under the top 5 workforce team. They do have great company with
around 150273 qualified specialist and 40584 medical cares.
 Scope- It tell about differentiated administrations are given by the NHS Firms. Main motto of
firm is to provide better medicinal aspect to large pool of people. Therefore among these other
facilities are also provided to those as alternate administration should also be provided to those
people so that perceptions is dental and mental administrations are there.
 Vision: To use the current strategy and decision with techniques which will help in
contamination are there which provide free offices.
 Mission: Is to provide quality care to every individual administrations and have each
consistently as well.
M&S
It is known as privately owned firms and having a great scope in UK and making people to
increase standard of life and provide a quality substances. M&S is working around the globe and
sell their business strategy even in right manner, basically there are guard and at such time work
with analysis of and place on right manner.
Scope- there are different variety of cloth segments that are produced by them in large number of
places across the world.
Vision: To be the best in their field and retained for longer period of time (Pham, Segers and
Gijselaers, 2013).
Mission: the mission of M&S is to fulfill the lifestyle requirements of their potential customers
by supplying goods in such a way. They also want to be the best among other competitors.
Oxfam
Scope: there are several areas where they serve their services which involve poverty alleviation,
calamity protection and many other.
Vision: Oxfam wants to create the society where everyone is healthy. Safe and secure.

Mission: formation of effective system so that work procedure is conducted without any
problem.
P3 Relationship between organizational functions
M&S have several departments that carry different roles and responsibilities which is
targeted towards achieving final aims and goals in set period of time (Pikka, Iskanius and Page,
2011). All these have certain relationship which are described below:
 Human Resource department: this is an important department as it involve managing
human resources of M&S by concentrating on them in adequate way. It is the duty of HR
manager to conduct recruitment and selection process so that potential candidates can be
admitted into the system on the other hand, training and development programs are also
imparted to enhance the existing skills and efficiency of each individual that is working.
 Finance Department: This department is responsible for managing finance or funds in
optimum way so that it must be allocated at key areas and no wastage could be
determined.
 Marketing Department: they perform various functions which involve conducting market
research so that effective decision can be taken place. Number of promotional tools and
techniques are also applied by marketing manager of M&S in order to promote their
product or service.
 Production Department: this sections is responsible for producing such goods and
services which result in satisfying needs and wants of customers in market place (Scheer,
2012).
TASK 2
P4 Positive and negative impacts of macro environment upon business operations
Micro environment of business means to parts which are not related to internal
association and this impacts business of affiliation (Welter and Smallbone, 2011). There are
potential results that organization of association needs to make changes in company’s plans and

methodologies so this helpers in examining situation. There are different variations which has to
take care by agents and furthermore organization of association. These factors can have positive
or negative impact on business so it is basic dismember them absolutely this performs practices
in proper and convincing way. Affiliation needs to plot methods which bolster association
execution. These factors are not in control organization of Marks and Spence yet rather
predictable examination must be there so changes can be made suitably.
Political Factors:
Negative Impact: There is negative effect of this too on business. Due to much of the
time change in government standards, administration of organization needs to make adjustment
and this influences their focus from principle objectives. Abundance legislative meddle
influences business in negative way.
Positive Impact: This factor is identified with government which is one of the primary
segments of business. It is fundamental, to comprehend what should be possible to diminish
legislative obstruction. There are diverse changes particle arrangements are taken by government
so it is fundamental. To receive them. This aides in running business in legitimate route and there
are less conceivable outcomes of extortion in business.
Environmental Factors:
Negative Impact: As Marks and Spencer carry out their work operations related to
lifestyle, thus any modifications and alteration in environmental sector will result in change in
their working process.
Positive Impact: There is sure effect on business as because of progress in slant
organization has to make dresses and this gives more fulfillment. This is an association with
client situated.
Social Factors:
Negative Impact: The social factor may pose a negative impact on overall functioning of
company s it may hinder their growth and performance. For instance, due to improper system of
communication hindrance of achievement could take place.

Positive Impact: Every orgsnaition carry out their work in order to contribute something
to society by making such goods and services which result into satisfying customer’s needs and
demands.it is the responsibility of management of Marks and Spence to consider social factors
like age, gender etc. that are present in market place where it is operating.
Technological Factors:
Negative Impact: The cost which is involved in adopting advanced and modern
technology system into the functioning of orgsnaition will be consider the negative impact on
organization’s growth and productivity.
Positive Impact: This factor allow the management system to conduct their work process
in adequate and effective ways so that ultimate aims and objectives could be accomplished.
Economic Factors:
Negative Impact: the overall growth and productivity may be changed due to the negative
process and final goals cannot be achieved effectively.
Positive Impact: there are number of sources that need to be well executed in company so
that all process is conducted in attainable way. For instance, funds are important economic factor
that is required to be taken into consideration.
Legal Factors:
Negative Impact: Modifications and alteration in legal policies and rules will result in
generation of confusion among laws that is executed in orgsnaition. Therefore, the work process
of Mark and spencer can be hinder.
Positive Impact: legal requirements assist the company to carry out several actions in
legal manner so that they do not face any problem in future period of time (Teece, 2012).
P5 Internal and external analysis to identify strengths and weaknesses
Marks and Spencer is one of the most reputed companies in the market. To maintain this
reputation in the market, the company has to continuously monitor its activities so that targets

can be achieved in a timely and efficient manner. SWOT analysis is a tool which helps the
management to analyze the market condition and grab opportunities from it.
The full form of SWOT is strength, weakness, opportunities, threats of company. These factors
are essential for growth of every company. These factors also help Marks and Spencer to achieve
the ultimate objective of the organization along with fulfillment of individual needs of the
employees and other related persons. Let start discussion upon SWOT analysis of Marks and
Spencer
Strength- Strength is the core element of SWOT analysis. Companies work on their strength and
the strength of Marks and Spencer is that it is less costly than its other competitor companies and
it has range of skilled employees which work towards achievement of targets of the company.
Continuous training of employees and regular market study can help Marks and Spencer to
increase its strength.
Weaknesses- Weakness stands for the areas in which company lacks behind its other
competitors in the market. There are few weaknesses in the policies of Marks and Spencer which
affects its performance. Though the prices of the products are less than those of other similar
companies, yet its products are not affordable for the common people. This is one of the main
weaknesses of the company. Secondly, there is no delegation of powers. Powers are centralized
by top level management of the company. So there is dissatisfaction among employees. Also,
after sale services of Marks and Spencer are very poor. They use ineffective approach to resolve
customer’s problems.
Opportunities- Opportunities refers to the chances which companies can use in their favor and
can perform well by grabbing those opportunities. In today’s market, online trading is one of the
biggest opportunities which companies can grab for their growth. Marks and Spencer can also
start its online chain of selling clothes. They must use discounting policies and different pricing
policies to increase their customer base, especially middles class customer base by offering
products at cheaper rates. They can increase their market survey to look for more opportunities
and grab them to take their full advantage.
Threats- Threats are the factors which can harm the companies in many different ways. Threat
can be a person, a situation or any other circumstance which will hinder the activities of the
company. Companies need to work continuously to eliminate threats. In clothing business

industry, one of the biggest threat is market trend and taste of the customer. If you are not
delivering what customer wants, you will be eliminated from the market sooner or later. So,
Marks and Spencer needs to develop and maintain a strong marketing department which helps
them to cope with the market conditions effectively.
From the above analysis, it is clear that there are some factors upon which company needs to
focus so that it can excel in its field and helps in the growth of the company. Strength and
weaknesses are the internal factors upon which company can work whereas opportunities and
threats are external factors upon which company can only react. They cannot pre-plan for
external factors. Therefore, it is very essential for Marks and Spencer to look after their policies
and work upon their weaknesses so that they can achieve growth and success in the future.
TASK 3
P6 Interrelate strengths and weaknesses with external macro factors
It is very much important for M&S to examine several factors that are present outside the
business environment in order to carry out whole work process is conducive ways. Strengths and
weaknesses are evaluated in this respect.
Political
Strength: carrying out work with adhering all rules of political rules than, work process can be
conducted in effective way.
Weakness: Non- compliance of it will pose a huge hindrance in front of management.
Economical
Strength: Conduction of work process of M&S in smooth manner.
Weakness: Not applying proper economical ways will lead to generation of problem.
Social
Strength: Attraction of large number of customers and building of significant goodwill
Weakness: Poor goodwill and losing of many consumers

Technological
Strength Conduction of work with modern and advanced technology so that effective objectives
can be attained
Weakness: Involve huge amount of funds.
CONCLUSION
From the discussed report, it has been concluded that every type of business organisation
operates in such environment which keeps on changing with time hence company have to frame
such policies to study all factors that are present outside and inside of business. The report
highlight the case of Marks and spencer, which is large organisation hence have to consider
numerous elements to conduct work task properly. The assignment concentrates on strengths and
weaknesses of macro factors as well as analysis of it.

REFERENCES
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Online
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