Comprehensive Business Analysis Report: Mark and Spencer (M&S) Company

This report provides a detailed business analysis of Mark and Spencer (M&S), a major British retailer. It begins by outlining the company's purpose, legal structure, and organizational structure, including its flat organizational structure and the impact of its functions on achieving organizational objectives. The report examines the scope and size of M&S, categorizing it within the context of small, medium, and large business organizations. It then delves into the positive and negative impacts of the macro environment factors, such as demographic factors, on the company's operations. A SWOT analysis is included, along with an examination of the relationship between SWOT factors and external environmental elements. The analysis highlights how M&S adapts to market changes and customer needs to maintain its position within the retail market.

BUSINESS AND THE BUSINESS
ENVIRONMENT
BIANCA ANDREEA DRAGOMIR LH-B-D36

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
P.1 Purpose of organisations with their legal structure....................................................................2
P.2 Scope and size of organisational...............................................................................................6
P.3 Relations of functions affects organisational objectives...........................................................7
P.4 Positive and Negative impact of Macro environment..............................................................8
P.5 SWOT Analysis......................................................................................................................11
P.6 Relationship between SWOT and External factors................................................................14
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15
2 | P a g e

INTRODUCTION
Business environment is a very wide topic as it includes all the term and conditions of
business no matter this is of what field. Mark and Spencer (M&S) is a British firm, opened in
1884, the company introduces itself as major retailer of foods, clothes, household items and
financial services. This companies targets retail market instead of malls and high street shops to
access more and more customers by the time. This company focuses on the legal structure so that
they an serve the best to their employees and to their customers.
In 21st century they started focusing on customers so that they can satisfy the current and
can generate more customers in the market. There are many threats to this company and all these
can be removed only by considering all the macro factors of the environment (Wirtz, Schilke and
Ullrich, 2010). Above all this outlines the changing structure and culture of Mark and Spencer
(M&S) so that they can retain for longer period in the market and achieve efficiencies in the
organisation.
P.1 Purpose of organisations with their legal structure
Every organisation has some kind of basic purposes to achieve better and the best
position in their targeted market. There are many types of organisation such as public, private
and voluntary. Metropolitan police has basic purpose of satisfying the public as in public
organisation the maximum number of shares are hold by public. In private organisation the basic
purpose is to maximise profit at any cost by achieving efficiency in their operations. Cancer
research set up with the basic purpose of increasing the social awareness among public. Their
main purpose is to improve the society without focusing on the profit.
Mark and Spencer (M&S) is a private firm as it targets the retail market and their main is
to maximise their profit by satisfying their current and generating mare customers. This company
coordinates with their customers in such a way that currently it is ruling the retail market. They
target the audiences of all the gender and of all the age.
3 | P a g e

Organisational structure is made by the company so that they can prepare a perfect
mission to achieve their vision. Mark and Spencer (M&S) generally follows flat organisational
structure and this type of organisational structure has limited levels of management. This
structure boosts the morale of the employees so that they can feel safe and free to express their
views in the company.
Illustration 1: M&S retail shop
( Source:Griffin and Pustay,2012)
By this structure company gets helps in their decision making process as employee
suggest new and better ways to maximise their profit, effectiveness in the work and efficiency in
the organisation. According to flat organisational structure the company runs hierarchy wise
unlike traditional one its broader and flatter (Wirtz, Schilke, and Ullrich, 2010). Mark and
Spancer (M&S) follows the order of decreasing the frauds and make employees more efficient in
their department of work. They follow bottom to top authority chain as this removes the
miscommunication barrier, coordinates all together and specify the goals that to be achieved by
the management.
4 | P a g e

Top level authorities of different department have different responsibilities as at last they
are responsible for their department performance. Organisational structure of Mark and Spencer
(M&S) is very well organised as they follow the top to bottom authority chain and bottom to top
individual responsibility. This allows rapid growth, changes and problem solution. There are
many benefits of having less management level in the organisation such as this brings a base line
for communication between all employees of the organisation at the best possible level. There
should be perfect formal reporting system from lowest to the highest level.
PUBLIC SECTOR:
Is a section from national economy and is under government control
Is made to service citizen of them country
They work in areas like : Police. Education, Banking
From them job is secure , stability of job
Rise money of tax penalty
PRIVATE SECTOR:
The section of a nation economy
Them objective is earning profit
Rise money by issuing shares and debentures or by taking loan
Areas of activity: shops, technology, construction
Good salary is the working benefit
Jobs from them are not stability
VOLUNTARY SECTOR:
Is a non-profit, non-for-profit, ,charity and even beyond profit
sector.
In Metropolitan police there is a superior who gives instruction to his subordinate that
what to do , how to do and when to do. Subordinates are totally controlled by their superior in all
the possible way.
5 | P a g e

Cancer research follows the organisational structure that there are departments heads who
works under the chief executor of the company. There is a perfect hierarchy of authority
followed by them.
6 | P a g e
Illustration 2: Metropolitian Police
(source Wheelen,. and Hunger, 2011.)
Illustration 3: Cancer research UK
(Source: Cancer research , 2017)

P.2 Scope and size of organisational
Existing three types of organization if we measure them by size : small business
organization, medium business organization and large business organization .
Small business organization : This organization have less then 50 employees , regardless
of revenue , if the number of employees is unknowing , then the revenue of less then £5.6m will
be taken as an indicator that is a small business.
Medium business organization: This organization have employees between 50 and 249 ,
regardless of revenue , if the number of employees is unknown , then revenue of greater then
equal to £5.6m and less then £22.8m will be taken as an indicator that it is a medium business .
Large business organization: This organization have 250 employees or more , then
revenue of greater then is equal or more then £22.8m will be taken as an indicator that it is a
large business .
Organisational size and scope can only be defined by its current position in the market.
The size of Mark and Spencer (M&S) company is very wide as this includes many levels and
departments. Scope of a company can only be identified with its current position in the market
and Mark and Spencer (M&S) holds very strong position in the market as they target all type
audience no matter they are of which gender and age(Wheelen,. and Hunger, 2011.). They are
going very good in the market only with help of their products and their currently working team.
A company can only grow when he adopts the best techniques which are running
currently in the market. There is wide scope for Mark and Spencer (M&S) only if they adopt the
new and the best techniques of the market, support and listen to their customers, provide
leadership strategy and policy etc. If we talk about the size of the company it can only determine
by the members and department it is having in it. Mark and Spencer (M&S) is a multinational
company as it has many branches and each branch have many numbers of departments and each
department carries approximately a hundred number of employees. The size of public
organisation is also very wide as it also includes many numbers of departments and every
department has many numbers of employees and in this type of organisation board also contains
many members.
7 | P a g e

Metropolitan police can only grow if they follow what the shareholders are saying that is
public who have invested in their company. Cancer research has very vast scope to grow in the
society as their first priority is the social issues of the society. Cancer research size is bit small
as it does not have many numbers of departments because they work for societies health and
welfare. They have limited members in their organisation who plays specific roles towards the
society.
Mark and Spencer (M&S) is a private organisation and the size of private organisation is
bitten wider than above two as they deal with different things regarding one product that is why
they have many departments for each and every type of issues and have specialised work force
for their solutions. So basically the standing order, policies, procedures, drills and regulation
decides the size and scope of the organisation in the market.
P.3 Relations of functions affects organisational objectives
In an organisation every things are interrelated as the performance of one affect the
performance of the other and this defines that organisational goals is achieved or not.
Organisational can only be archived when all departments work with full professionalism and
efficiency. Performance of one department affects the performance of other department because
all are interrelated and this decides the organisational goals is achieved or not. M&S has all the
possible department to excess the whole market(Griffin and Pustay,2012).
Research and development department is a department is responsible for all as it is the
base and the first department of the company as it work as information provider to all other
department about their product and services that how should they improve all and works for the
development of the company(Yang, Hong, and Modi, 2011). Production department is
responsible for production of goods and services of the company. Production department
focusses on the packaging and the quantity of the product as this department employee is
responsible if something bad happen. This department is totally depends upon the purchasing
department as this department purchases the raw material for goods that are to be produced by
the production department and this department is also responsible for the quality material that
production department is using.
8 | P a g e

Marketing department decides the future of the product as this department is responsible
for all the strategies to be made for selling the product in the market. Marketing department
decides that what should be done and in what manner so that the company can get benefit on
selling this product in the market. Human Resource Management department is responsible for
companies relation with others in the market(Bryman and Bell, 2015). Accounting and finance
department records all the incomes and expenditure of the company and makes the final report of
status of the company. All these departments are responsible for each other as if is not efficient
in his work then the other one will not be able to complete its tasks on time to achieve
organisational objectives.
Mark and Spencer (M&S) very well manages all his departments that are discussed above
that's why it is holding very good position currently in the market by providing basic priority to
the customers who are king of the market (Crane and Matten, 2016.)t. They listen to what they
are saying, what they need and what they are expecting from them.
P.4 Positive and Negative impact of Macro environment
Macro environment includes all those factors which are wide in terms of expressing. From
a company point of view macro environment includes all the external factors like customers,
suppliers, market and marketing of the product. There is nothing left in this world who does not
have defected in it (Elliot, 2011.).
Macro environment is a very wide to express as there are uncountable factors in it. This
determines the key of success for a company because there are many factors and through
controlling them a company can achieve its organisational goal on time and can stay in the
market for longer period. Some important Macro environment factors are as follows :
11 Demographic. Demographic factor of macro environment is based on the
democracy of the nation that how the company is doing in the market with the
support of its customers by providing its best quality of goods and services in less
than others(Cantwell, Dunning, and Lundan, 2010.). M&S is highly known by its
customers for its best quality of goods and services that he is providing in less pay
than others.
9 | P a g e

11 Positive :It is having a variety of products that helps marks and Spencer to operate
in many countries.11 Negative: Due to its high pricing policy it becomes difficult for them to attract
middle class people that leads to alteration in their business strategies.11 Economic. Macro environment also focus on the economic factor as the economy
of the nation decides the demand and supply of the product and what is gonna be
the price after analysing the whole market. M&S supplies their according to the
demand of their product by the customers and mould the product quality and the
quantity according to their needs.11 Positive: It has established its popular brand image in European market that
allows them to expand its business in developing economies like India.11 Negative: Uncertainty in economic conditions affects business to a large extent
and reduces profitability.11 Government. Macro environment includes this factor as company needs
government approval in each and every work that is newly establishing by them
in the nation. Government has granted full permission to Mark and Spencer
(M&S) to establish its company and sell their product in the market.11 Positive: due to its global presence it becomes easy for them to operate business
in different countries by cooperating and following government rules and
regulations effectively.11 Negative: marks and Spencer has developed or modify different strategies or
policies according to various government situations.
111 Legal. Legal factor is considered by the macro environment as each and every
company nowadays deals in legal basis that is contract. If there is anything
happens against the clause then the company has full right against taking action to
that (Welford, 2013). Mark and Spencer(M&S) make contact for each and every
thing weather it is dealing for goods or with the employees. They mention each
and every thing as a clause so that they can make every thing clear to everyone.
10 | P a g e

111 Positive: Various laws and policies ensures effective business culture and creating
a positive working environment.
111 Negative: Any changes made in these laws may affect business growth and
development.
111 Political. Political factors covers all the important issues regarding politics that
may affect the business in a very way. Mark and Spencer(M&S) deals with
political issues so that they can survive in the market for longer period without
any hurdles.
111 Positive: Its major business operations are done in European market which is
having very stable political conditions.
111 negative: Its global presence affects business decisions and strategies
111 Cultural. According to the cultural factor the company should focus on the society
so that they can achieve more in less time with their help. Mark and Spencer
(M&S) company give first priority to its customers so that they can satisfy the
existing and will be able to generate more by providing the best quality product
and services.
111 Positive: Availability of high quality products for every one helps in enhancing
living standard of people in the society.
111 Negative: Due to its lack of focus on middle class people it builds negative brand
image of marks and Spencer.
111 Technological. A company should give preference to technological factors as
these factors ensures efficiency in the organisation(Carroll and Shabana, 2010). A
company cannot outdated technology because it might result very unexpected by
them. Mark and Spencer (M&S) update their technologies time to time so that
they can compete with their competitors and can stay for long run in the market.111 Positive: With he use of advanced technology they are able to meet changing taste
and preference of people.111 Negative: It will lead to increase in expenses and reduction in profits.
11 | P a g e

111 Global. These factors include the whole world because there are many factors
which cannot get controlled within the nation (Bughin, Chui, and Manyika,,
2010). Mark and Spencer (M&S) is a multinational company as it has many
branches all over the world. This company also affects the global economy as it
holds very strong position in the market.111 Positive: Its strong brand image makes them a successful multi national company.111 Negative: High price and less variety of women appraisals reduces their growth
efficiency.
12 | P a g e