Business and Environment Analysis Report: M&S Company Overview

This report provides a comprehensive analysis of Marks & Spencer (M&S) Company, a leading retail organization, examining its business environment. It begins by differentiating between private, public, and voluntary organizations, outlining their respective purposes and legal structures. The report delves into the size and scope of M&S as a private company, highlighting the significance of its memorandum and articles of association. It explores the relationship between various organizational functions, such as finance, marketing, HR, and production, emphasizing their coordination in achieving company objectives. A PESTLE analysis is conducted to assess the positive and negative impacts of political, economic, social, technological, legal, and environmental factors on M&S. Furthermore, the report discusses the company's strengths and weaknesses within both its internal and external environments, correlating these aspects with external factors. The analysis underscores the importance of adapting to external influences for sustained success in the retail market.

BUSINESS AND THE
BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose of private, public and voluntary organisation and its legal structure..................1
P2 Size and scope of private, public, voluntary organisation.................................................2
Size of private company:........................................................................................................2
P3. Outline the relationship of organisation functions to meet objectives.............................4
The relationship of organisation functions are as follows:....................................................4
1. Define the role-...................................................................................................................4
P4 Discuss positive and negative impact on organisation using PESTLE analysis ..............5
P5 Discuss strengths and weaknesses of organisation in external and internal environment 7
P6. Explain how strengths and weaknesses correlate with external factors...........................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The organisation size is different depending upon its nature. This report deals with the M
& S Company, which is market leader in the retail industry. The company is divided in good
segments. Generally, organisation is private one, public one and voluntary organisation. These
are divided in according to its scope and their purpose of establishment in the market. The
organisation has different functions like finance, marketing, HR, production which imbibes the
organisation as a whole to meet its objectives and goals (Aterido, Hallward-Driemeier. and
Pagés, 2011). These departments are required to coordinate with one another so that they may be
able to accomplish the desired and set targets of the firm in effective and best possible manner
which is suitable for the betterment of the company. The organisation has its strengths and
weaknesses, which is to be sort it out by it, so that smooth functioning can be, enable by it in
efficient manner. The external and macro factors also has immediate influence on the business as
it creates positive as well as negative impact on the organisation. The external factors include
social, technological, economical etc., which has impact on the organisation. It should be tackle
efficiently by the firm to ensure its success in the market.
TASK 1
P1 Purpose of private, public and voluntary organisation and its legal structure
The purpose of private company are as follows:
The purpose of private company is to provide goods and services to consumers. They are
operated purely for profit purpose. It has separate legal entity from its owner. It has perpetual
succession. It has directors from family or friends or someone else. Their size is small. The firm
M & S, which is retail giant, supplies various products to consumers. It fulfils needs and desires
of consumers. As such, consumer satisfaction is obtained in effective way.
The legal structure is as follows:
The legal structure of private company is similar to public company. However, transfer of
shares is restricted in this type of company. Private company must submit documents for
formation to Registrar of companies in format, which is prescribed by the government. After
approval from directors and owner, they sign on it. Memorandum and articles of association is
formed which is highlights and limits the company’s activities. After this, all these documents
are submitted to registrar of companies for approval. After approval, company is issued
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Certificate of Incorporation, which marks the start of company’s operations. Then, owners or
directors subscribe shares.
The purpose of public company are as follows:
Two or more than two shareholders form public company. It can sell the shares to public
for subscription. It is much larger than private company is. Its scope is wider than private
company is. The difference between public and private company is that public company can
issue shares to public whereas private company cannot.
The legal structure of public company is as follows:
Public company is able to garner more shares from public as it is required for functioning
as it operates on large basis. It has to form documents just as if private companies do. All the
officials, directors, owners are required to make declaration to form company. They have to
prepare Memorandum and Articles of association for its legal existence in the market. This is
submitted to registrar of companies for approval. After approval, firm gets legal existence.
The purpose of voluntary organisation:
Voluntary organisation is run by management committee, which is formed for not for
profit. It is run with no profit motive. Members come together to make savings in instalments so
that they may use it in the prescribed manner. Voluntary organisations ae formed for mutual
benefits. They do not run for profit earning motive. Various charities and trusts are formed under
this type organisation. They run for social benefits to society.
Legal structure of voluntary organisation:
Trustees form this. It is formed by trust deed document. It is required to be formed under
Charity commission. The commission approves the organisation with the documents sent by the
trustees having signatures of all signatories (Legal structure for voluntary organisation, 2014).
The commission approves the require documents and assign the certificate of legal existence.
This document ensures the legal existence of voluntary organisation in the eyes of law.
P2 Size and scope of private, public, voluntary organisation
Size of private company:
The size of private company is about minimum two members and maximum of 50. These
members can be increased by making alteration in the memorandum of association with the
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permission of registrar of companies. The minimum paid up share capital of private company is
50 lakhs.
The scope of private company:
The company M & S has scope from its memorandum and articles of association. These
two documents are most important to company as it decides the scope and limitations of it.
Memorandum of Association is the main document of the company. It defines the objects of
company for which it is formed (Chow and et.al, 2012). It defines the scope of company to do
activities and anything done beyond is illegal and is unauthorised. Articles of association is
further important document, which consist of rules and regulations regarding internal
management of the company.
Size of public company:
The size of public company is much wider than private company. The size of public
company is minimum of 10 members and maximum there is no limit on that. It is carry on large
basis as public subscribes its shares.
Scope of public company:
Its Memorandum also governs public company and Articles of Association. These
documents are mandatory to be maintained by company. Memorandum of association is the
charter of the company. It defines the company scope of the company which limits its functions
from doing beyond the scope if memorandum. Anything done beyond becomes Ultravires
Company. It restricts it from doing beyond its scope. Articles of association document defines
the internal management of the company. It describes how company can manage its internal
sources. These documents ate required so that company cannot be do certain activities, which
does not allow it works upon in the organisation.
Size of voluntary company:
The members of it decide the voluntary organisation size. It is according to the needs of
the members who form it. Trustees of the voluntary organisation are under control of it. They are
formed by mutual consideration by the members of the organisation (Czinkota, Ronkainen and
Moffett, 2011). It is formed because of mutual benefits of the members. Size is decided by
mutual consideration by members of the trust. Members decide as to which proportion they want
to form it.
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Scope of voluntary organisation:
The scope of trust or voluntary organisation id decided by the trust deed, which is formed
at the start of the trust. The trust deed guides the trustees as to which activities it has to undertake
in it. Trust deed is essential document, which directs the scope of the trust. Trust is usually run to
provide mutual benefits to the members. Trustees guides the members to accomplish their set
targets for which they have undertaken to attain in the organisation (Kennerley and Neely, 2011).
It is important document, which outlines the scope of the voluntary organisation in effective way.
Members are required to perform the activities which trust deed allows it to achieve.
P3. Outline the relationship of organisation functions to meet objectives
The relationship of organisation functions are as follows:
1. Define the role-
Organisation should define the role of the individual employed in the organisation. M &
S Company efficiently define the role of employees in its firm to attain objectives in effective
manner. This makes firm more vibrant as employees know the work assigned to them. This will
bring clarity to employees to work efficiently the work allocated to them in effectual manner.
2. Authority-
The assignment of role proposes the granting of authority to various personnel’s. They
are assigned various tasks to accomplish the organisational goals in effectual manner. This will
bring superior subordinate role effectively, which will achieve the goals of the organisation.
3. Responsibility-
Organisation function is designed to achieve goals of it in effective way. Employees
should be make responsible for the work allocated to them; this will bring efficiency in
organisation. Employees will come to know the responsibilities it has to undertake in the
organisation. This will bring clarity to employees to attain and complete their work on time with
full efficiency. Organisation ensures that it achieves its goals.
4. Specialisation-
Modern technique is based on the ideas of specialisation. The employees will perform the
job in which he attains the specialisation to perform it (Klapper, Lewin and Delgado., 2011). It
will be specifically suited to him according to his skills, capabilities etc. efficient performance
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and functioning is possible when different elements to perform the job are performed by the
experts. This will enhance more productivity of employees and more revenue to firm.
5. Coordination-
The organisation function depends on division of labour; there is a need for coordinating
the different departments so that each department can perform its assigned duties well in
effective manner. M & S Company mainly focusses on coordination among its departments that
achieves its objectives.
6. Utilization of human resources-
Human resources are essential in organisation as they bring and produce more efficiency,
which is required for the firm to achieve its mission and vision in the best possible way. Human
resources are selected by managers so that employees can carry out the work in effective way,
which makes firm vibrant, and it produces effective results too much extent. This shows that
organisation employees is very capable of accomplishing firm’s goals in effective way.
7. Efficient functioning-
Efficiency in functioning is required, as organisation will achieve the goals only when all
the departments are effectively working in it. It will avoid duplication and overlapping of work.
Wastage of resources will be minimised in the firm. M & S Company works with effective
functioning that produces efficient results in organisation (Ling, 2014). This will produce good
results in organisation, which is required in accomplishing desired goals and aims of it in
effectual manner. Consumers will also be attracted to it in the way, which will maximise the
revenue of the company in effectual manner.
P4 Discuss positive and negative impact on organisation using PESTLE analysis
PESTLE analysis:
 POLITICAL (P)-
The government sets rules and regulations, which are, abide by the company such
planning for hazard identification. It also set rules risk assessment and risk control. If
company do not abide they will have to pay fine on that. This makes an impact on M & S
Company, as they have to follow in order to sell its goods and accomplish the set targets.
This will make a negative impact on firm, as it will have to follow the rules and
regulations implemented by the government.
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 ECONOMIC (E)-
Economic factors are uncertain to firm, as it will affect the sales of it. People will not
spend on luxury items because of economic slowdown of the country. This will have
impact on company’s sales in negative way. It will be unable to garner more profits from
the consumers because of reduced income available to them. This will affect its sales.
 SOCIAL (S)-
Consumers’ purchases are affected by cultural, social and personal characteristics. In
response to current cheap trends in supermarkets, have increasingly over the years. M &
S Company has come up with the trend and now is increasing its reach to every
consumers at the online platform. Online selling is increased as a result it is able to garner
good amount of profits from the market with having consumer satisfaction.
 TECHNOLOGICAL (T)-
Technology is vital in the market for big firms, as they have to meet consumer demands
and wants in effective way. Brands are required keeping up with the modern technology
in order to be competitive in the market. Consumers will be satisfied in time with the use
of technology by the company. It will enhance its productivity in the best possible way
for the betterment of the organisation. Big brands spend so much on advertising as it is
possible because of the technology in hand. Promotion through websites help much to the
company to have good quantum of sales and more consumers base in the market.
 LEGAL (L)-
Legislations always keep changing each day. M & S Company has to follow all these
rules so that it can carry out its effective functioning in the market, which will produce
more revenue and more consumers’ base and their high level of satisfaction. It will
enhance firm’s reputation, dignity and brand name in the best possible manner, which
will produce effective results.
 ENVIRONMENT (E)-
With the current issues in the market, company will have to adopt that policy that will not
harm the environment. Environment is essential for every living beings. M & S Company
has launched a ‘Green Policy’ which they call Plan A. The official clarifies this, as there
is no Plan B. It will provide the goods to consumers in effective way by respecting the
nature. Zero waste to landfill is also been adopted by it. These all measures will bring
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safety to nature and will not provide degradation or harm to it in any way possible. The
company follows strict policies to save the environment.
P5 Discuss strengths and weaknesses of organisation in external and internal environment
SWOT (Strengths Weaknesses Opportunities Threats) analysis of company’s external
factors, which have, influences it in either of the manner. A company carry out its activities in
the market having dynamic environment. The SWOT analysis of M & S Company is as follows-
1. STRENGTHS (S)-
It is one of the top retail brand in the market. Its competitors are also available bit it
makes it strategies in that way, which overcome them to, achieve their goals in effective manner.
The consumers mark its products as value for money obtained. This shows that it has enhanced
consumer satisfaction and has good name in the market, which eventually maximises its revenue
making it more productive.
2. WEAKNESSES (W)-
The competitors come in the market to the existing company, which makes existing
company’s share decline. This situation is worst for the company, as the competition will
become more intensive. This will divide the market share to both of them resulting in decline in
profits, which is not a good sign for the existing company in the market. Thus, companies will
compete with each other to win more market share (Moutinho, 2011). Big brands need to protect
their products from fake imitation of it. This fake imitation of products will be harmful for
consumers and at large for the company because consumers rely on the brand name. It is because
of brand name, products are sold to large extent by the firm.
3. OPPORTUNITIES (O)-
The company can develop more effectively its website, which will bring more consumers
to purchase the product. This will be efficient in abiding more and more consumers online. The
company should make Websites in vibrant manner, as it will garner desired results in the best
possible way. New market segments should be offered and introduced in market so that firm can
make its reach to every market, which are not yet exploited by the company. Making this
segment will enhance its reach and it will produce more profits.
4. THREATS (T)-
Threats to M & S Company is that other rivals have discounted prices. The company will
have to give discount to consumers so that it will not drive by the rival firms. Discounted prices
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will cut down the profit for the firm and will maximise the costs in giving the gods in discounted
prices. Government policy often hinders to company because it limits their scope to particular
segment only. Firm has to follow and implement these rules for smooth functioning of it in best
and effective way. This will put pressure but it has to abide by it to ensure proper operations by it
in effective manner.
External environment imposes factors because of all the external factors, which have influences
on the business. The external factors are political, legal, social, economical and technological.
P6. Explain how strengths and weaknesses correlate with external factors
The company has various external factors, they are as follows:
1. Political factor-
The political factor has immense impact on company. The government policies changes
every day. Firm has to follow it to maintain its efficiency in better and competent way in ahead
of its competitors. This is because government imposes some new rules to company and restricts
to do some work. This impacts business functioning as it becomes unable to accomplish set
targets not in a smooth way. It has to abide by the norms, which the government has enacted to
the market.
2. Social factor-
Social factor also influences business. Company has to follow some social norms to gain
more and more consumers in the market. By respecting social norms. Company will be able to
flourish in its operations. This will bring good amount of profits and at the same time, the
company accomplishes more customer satisfaction in effective way.
3. Economic factor-
The economic policies prevailing in the country will have positive as well as negative
impact on the business. It will be positive if economic policies the country is good. As such,
consumers will spend more on the goods (Zalengera and et.al , 2014). However, if there were
economic slowdown; people would not purchase the items, as they do not have money to spend
on luxury goods. This will affect the organisation in negative way.
4. Legal factor-
Company will have to implement its strategies according to the rules and regulations
made by the legislations. It is essential to have smooth flow of its functioning in the market.
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Legally binding means that company follows the rules regarding which the government applies.
It has to intake all those rules for effective operations. Although, it will have negative impact but
for smooth functioning, it has to abide by it.
5. Environment factor-
Company has to respect nature because it is everything to us. The company should
change its manufacture structure so that industries may not emit harmful gases. M & S Company
has announced green policy, which it makes in support of the nature. For this, government has
implemented different rules. Regarding health and safety standards, company is required to
follow according to the society norms. It will have positive impact on its operations as more and
more people will support the company. As such, company reputation will increase. It will garner
more revenue. It will maximise more customer satisfaction, which is the ultimate objective, goal,
and aim of the firm. This will enhance its productivity in better and effective way.
CONCLUSION
Hereby, it can be concluded that organisation be it private, public or voluntary has to be
efficient in the business environment. Organisation will achieve success only when all th
organisation functions are effectively met by it. This will attain and accomplish the set targets in
effective manner. The organisation will flourish in the market and will produce more customer
satisfaction by complying with the macro factors. The external macro factors usually affect the
business in negative as well as positive way. As such, firm has to be efficient in its working so
that it is not much influenced by it in negative way. Organisation will have to follow the
guidelines, which are prescribed, by its memorandum and articles of association. It will have to
implement these documents as it describes it limits to accomplish the activities. The company
will flourish when it follows all the strategies, which influences it functioning in the best possible
way.
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Ling X. Li, L., 2010. Manufacturing capability development in a changing business environment.
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Online
Legal structure for voluntary organisation, 2014 [PDF] Available Through:
<https://www.kcsc.org.uk/sites/kcsc.org.uk/files/documents/funding/PM%20D%20Legal
%20structures%20for%20voluntary%20organisations.pdf>
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