Analysis of Business Environment, Departments, and SWOT for M&S Ltd.

This report provides a comprehensive analysis of M&S Ltd., examining its business environment, departmental relationships, and the impact of the macro environment. It begins by differentiating between public, private, and voluntary organizations, and their legal structures, using M&S, NHS, and Oxfam as examples. The report then delves into the size and scope of these organizations. A key section focuses on the interconnectedness of various departments within M&S, highlighting the relationship between marketing, finance, production, and human resources. The report also includes a PESTLE analysis to identify the positive and negative impacts of political, economic, social, technological, legal, and environmental factors on M&S. Finally, it provides a SWOT analysis, summarizing the company's strengths, weaknesses, opportunities, and threats.

Business and business environment

Table of Contents
INTRODUCTION...........................................................................................................................1
P3 Relationship between the different department functions in M&S Ltd.................................1
(P4) Identify the positive and negative impacts the macro environment has on the organisation
.....................................................................................................................................................2
(P5) SWOT analysis in organisation...........................................................................................3
REFERENCES................................................................................................................................6

INTRODUCTION
All sectors of the companies have different rues and regulations to run a firm in the
world. Effective and open environment helps to maintain employee relation in an entity. M&S
Ltd. Provides the good quality food and grocery products to the customers in a market. Manager
of this firm provides effective plans, policies to maintain employee relation also help to get
desired target in the world. This report includes the different types of firms, relationship between
the departments, types of analysis, employee relation. Each department of the company has
various roles and responsibility to get desire objective and higher performance in the world. By
maintain the relationship in within the firm they can easily get desired target and goal of a firm in
the world.
P1 The purpose of private (M&S), public and voluntary organisation and their legal structure
(500)
Public organization providing various governmental services. Public system operated by
government. There are some examples of public organization (education, electricity, police
services, social services, public transit, waste management, healthcare etc.). In Public
organization the economic system is controlled by national, state and local government
(Johanson, and Mattsson, 2015). To provide the good services in public sometimes government
hire private corporations. For example electronic equipment, military hardware, computers,
manufactures these are some areas which are hire by the public organization to provide the good
services to public. Public organization funded directly by the government. Public organization
exist at three level. These three levels are as follows:
Federal or national
regional
local
The public sector provides three types of service:
a public good
a merit good
essential service
to describe the nationalized industry public organization are used.
Private organization: private sector are run by individual and groups who generate and
return a profit back to its owners. Private organization are free from the government rules and
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controls. It is non governmental organization. A private company dose not offer stock or trade
shares on the market. Private organization has its own rules and regulations. Private sector
follows only their laws and their aims are totally different form public sector. Private
organization always focus on how to gain the maximum profit. Private company has competition
with other companies (Schularick and Taylor, 2012). They always select their staff on their own
rules. Its goal is to making money and employee more workers than the public sector. In private
sector workers have more opportunities than the public sector. Employee has great opportunities
for promotions but there is less job security in private sector.
Voluntary Organization: when people work together for common goal,it provides social
services to poor and old aged person. It is group of individual who enter into agreement. The
main purpose of this organization is to help the poor persons. There are many countries where
the voluntary association is effectively proscribed.
Voluntary organization runs by unpaid management.
This organization is not works for profit.
Legal structure for voluntary organization: the two main factor are used in structure
of this organization. These two factors are as follows:
Trust: a public trust is the traditional structure for a charity. Trust is usually established
by group who knows their duties very well.
Associations: this is most common form of structure for voluntary organization. In this
organization the people band together to carry out an agreed object. In this process the members
set downs the objects of the association (Popli, Chauhan and Sharma, 2014). It forms a contract
between the members and establishes the rights and duties they have to each other. In this type of
organization the all members works together for same goal they follow the teamwork. They
always try to help the poor person, they provided education, medicine and other facilities for
poor people.
Business and part which are not in public sector are known as private sector.
P2 The size and scope of M&S and one organisation from the public and voluntary sector (500)
Private organization marks and Spencer's: to achieve goals the M&C always apply
efforts on various resources. M&C has a proper legal structure , it follows flat organisation
structure which increase the responsibilities and duties of their employee. Due to this employee
take a right decision time to time. M&C specialises in the selling of clothing, home product and
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luxury food products. This is structure increase the communication level between the higher
level managers and employee. Because when there is lack of communication the growth of
business is decrease. M&C has flat structure so this structure helps to reducing the layer of
authority (Jiménez, Ongena and Saurina, 2014). There are around 3000 employees in M&C head
office in London. All these people are specialist in their field and provides the best services to
their customers continuously.
Public organization: NHS: National health services is a public organisation. It is
largest and oldest health care system. This sector is overseen by the department of health. Some
services and treatment are free for everyone in this organisation. NHS provides the majority of
healthcare in England. NHS is generally funded from general taxation with a small being
contribution by national insurance payments. National health services has three principal which
are as follows:
that it met the needs of everyone
that it be free at the point of delivery
that is be based on clinical need, not ability to pay
Means NHS works on three principles in these principles they have to meet every sick person
and provide them free treatment.
Another main aims of NHS are:
 support and value its staff
 help to keep people healthy
 work to reduce health inequalities
 respond to different needs of different populations
Voluntary organisation: Oxfam is a voluntary organisation which is established to help
the poor persons. This organisation provides the services to the public. Oxfam committee for
famine relief by group of Quakers, social activists and Oxford academics. The main purpose of
this organisation is to help the people directly. This organisation believes that poverty and
powerlessness are avoidable and can be eliminated by human action. So the member of this
organisation always works together and try to eliminate the poverty. This organisation try to
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provide free education to the people and provide them other facilities also. Oxfam works on trade
justice, fair tade, education and livelihood, health and human rights.
P3 Relationship between the different department functions in M&S Ltd.
There are different types of departments in the company and they are interrelated with
each other. Each department has various characteristics and responsibility to get desired
objective in the world. To maintain employee relation in the firm manager needs to provide an
appropriate environment where employee can easily share their ideas and suggestions to get
desired target in the world. Relationship between the different departments in M&S Ltd. As
follows:
marketing department interrelated with the finance department
Marketing department is connected with the finance department because for the
promotion of the products and services they need additional finance. M&S Ltd. Uses different
types of method and approaches to increase overall performance and productivity in the world. If
then have sufficient finance then only the marketing department promote their products in a
market.
Marketing department interrelated with the production department
Production department innovate the products and services based on the consumer needs.
Based on the productions the marketing department promote their products in the market.
Manager of the production department has a responsibility to innovate their products based on
the clients needs. It helps to increase overall firm performance in the market and also help to
expand their enterprise in the world (Jiang and et.al., 2012).
Human resource department interrelated to the production department
HR manager has a responsibility to provide appropriate and open environment to an
employee which helps to maintain employee relation in the company. To maintain employee
relation in a firm the manager needs to provide effective and efficient environment, plans,
polices to the employees. They also have a responsibility to provide essential and advanced
resources to the employee so that they can easily innovate their products to increase an entity
productivity in the world. Manager of the M&S Ltd. Provides the facilities and policies which
helps to give more advantages to maintain employee relation in a firm. Manager also gives the
effective training and development to the employee so that the can easily innovate their products
in a market. It also helps to maintain brand image in the world (Purce, 2014).
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These all are the departments in the company and they have connected to each of them. If
one of the department not following their responsibility then it will directly affects their
performance and productivity in the world.
(P4) Identify the positive and negative impacts the macro environment has on the organisation
The PESTLE Analysis is as follows:
1. Political (P)-
The government sets different rules and regulation the company in the way which affects
its sales and revenue. M & S company is also impacted by the political factors prevailing in the
country. The government has enacted Health & Safety British Standards such as risk assessment
and risk control. It affects company as it has to abide by rules laid down by the Act. As a result,
company has to follow the regulations to work effectively.
2. Economical (E)-
The economic factors also play vital role in the revenues of the company. The economic
outlook of country is uncertain as people do not prefer to spend their income on luxury goods
which affects the sales of company (Commander and Svejnar, 2011). As such, M & S company
offers various discounts to speed up sales. It also impacts company because in recession period,
customers do not spare cash on luxury items instead they only purchase necessary goods. This
affects company's sales and diminishes profits.
3. Social (S)-
Social factor is vital part of macro environment. M&S company has stretched its brand
by selling online food from its website. This has decided so that it may be able to enhance more
consumers on the internet. This provides speedy sales to company and as a result, it can earn
revenue from the online market. M & S company has also brought up its clothes ranger to the
supermarkets to keep up with the latest trends and to keep their consumers interested to product
in effective way.
4. Technology (T)-
Technology is vital part in the retail sector. M & S company keep up with the modern
technology so that it may conquer customer satisfaction in effectual manner. Major brands spent
a lot on advertising to create brand awareness to customers so that they become loyal and can
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build their preference in particular brand only (Fernando, 2011). M & S company also advertise
its products which leads to brand awareness to customers. The website of M & S company is
very appealing and they keep up use of technology to enhance speedy sales and more revenue to
it in effectual manner which maximises customer satisfaction in the best possible manner.
5. Legal (L)-
Legal factor also has impact on company because rules and regulations always keep on
changing which affects company. M & S company needs to carry out re-training to update
according to new legislations. Fair Packaging and Labelling Act guides that packaging should be
in proper manner so that protection can be provided to products to able to consume by
customers.
6. Environmental (E)-
Environmental factor is also concern of company. M & S company needs to change its
manufacture procedure so that nature cannot be harmed by it (Gecevska and et.al , 2010). For
this, company has adopted green policy which ensures healthy practices by company like carbon
neutral and zero waste to landfill are some techniques of protecting environment from hazardous
gases.
(P5) SWOT analysis in organisation
 STRENGTHS (S)-
Strength of the company implies that it has advantage over its rivals. M & S company is
the market leader in retail sector which provides quality of goods to its customers. Company
goods offer value fort money to customers which implies that high quality products are provided
at low prices which ultimately enhances customer satisfaction and imparts quick and effective
sales to company (Marks and Spencer SWOT Analysis, 2016). It has large force of employees
network which contributes to it success and as a result revenue is earned by company in effectual
manner.
 WEAKNESSES (W)-
Strong competition from the similar brands in the market divides the market in groups and as a
result market share us divided which leads to reduced profits to company. M & S company
needs to protect their brand from fake brands. Fake brands imitates products of M & S company
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which leads to wrong products offer to customers. It damages brand image and reputation in the
market which leads to reduced revenue.
 OPPORTUNITIES (O)-
M & S company can develop its website on internet to capture online customers and which
provides fast and effective sales to company. Company can also introduce new market segments
by making group of similar people which possess same characteristics. This will help company
to target specific market to enhance its sales and which can lead to more revenue to the firm in
effectual manner. It can also expand its branches to countries like India and China where
population is much and more customers can be gained by company in effective manner which
will provide more profits to firm in the best possible way.
 THREATS (T)-
Retail stores which offer customers discounted prices so that it may drive away customers from
other brand. M & S company is also affected by threat of these brands which offer more values
of goods at discounted prices. As a result, profits are adversely affected by rivals from their
strategies. Government policies also affects and is a threat to company as different nations has
different rules and legislations prevailing in the concern country (Shigang, 2010). The
government policies are to be taken in practice by firm to ensure effective working and
operations. Company has to abide by several rules otherwise company legal function will be at
threat to extinction by government. Government may impose ban on its functioning if it does not
abide by standards provided by government. The company has to follow rules of government to
work effectively in the country to ensure speedy sales and more revenue to it in effectual
manner.
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P6 macro and micro factors affecting the operational activities of M$S
The strength and weaknesses which are the internal factors of M&S are interrelating to
the external factors which are political, economical, environmental, technological, legal factors.
As there are many strengths and weaknesses which the M&S are having like it is having many
branches all over the world and the satisfaction level of the customers with M&S is very good.
PESTLE
Political- the rules and regulations laid down by the government of all the countries in
which they are operating will affect the functions and the working of the company. The political
conditions, tariff and tax policy if are strict in any country so that will affect the working of
M&S.
Economical- in the recession of 2007-08 was a hard hit to the company and many of the
stores were closed and 2% jobs were cut down.
Social- the different culture, tradition and ethics of the people living in the different
country will also affect the strength and weaknesses.
Technological- the mode of payment which have been very easy now are helping M&S
to grow at a very high speed. This has also increased the satisfaction level of the buyer with the
introduction of online marketing.
Environmental- the climatic issue which are there in different countries also pressurised
M&S to produce and manufacture environmental friendly and ozone-friendly products.
Strengths- marks and Spencer have a high recognition of brand which means it has a
high customer satisfying quality in its brand which help them to provide products to high class
section of society ( both social and econmical factor) without any doubt. Wide range of products
also encourage customers to go for shopping in Marks and Spencer. Popular designer brands
allow customers about the latest trends that are currently prevailing in market around the globe.
(I.e technological factor). It has many outlets in many countries which provides them high
customer loyalty (Palley, 2015). The financial position of company is also good which allows
them to expand its business (economical factor).
Weakness- Marks and Spencer has a bad image of out fashioned products it means they
are not using the latest machine technology in making their product attractive and good. Also by
using old machines it reduces efficiency of workers thus by adding to cost of product resulting in
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less sales. Workers are forced to do work manually resulting in less productivity of marks and
Spencer. It is a technological factor. Marks and Spencer charges very high price from customers
regardless of taxes that they pay in respective country (legal factor). This restrict them to expand
business in other countries (Jiménez, Ongena and Saurina, 2014). There is no online platform for
customers to easily buy products which in returns reduces sales of marks and Spencer. It is also a
major drawback of it as it is not taking advantage of technology (technological factor).
CONCLUSION
On the basis of above study which was made on the internal and external analysis of
Marks and Spencer. Hence, the managerial professional of such organisation has suggested to
make the adequate improvements in the operational activities as well as facilitate the desirable
products to the consumers which will be satisfactory to them. Further, it can be said that there is
need to make the adequate changes in the operational activities of the firm which in turn helpful
for enhancing the productivity and probability as well as strengthening the capital gathering.
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REFERENCES
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performance. The Review of Economics and Statistics. 93(1). pp .309-337.
Fernando, A. C., 2011. Business environment. Pearson Education India.
Gecevska and et.al , 2010. Product lifecycle management through innovative and competitive
business environment. Journal of Industrial Engineering and Management. 3(2). pp .323-
336.
Jiang, K. and et.al., 2012. How does human resource management influence organizational
outcomes? A meta-analytic investigation of mediating mechanisms. Academy of
management Journal. 55(6). pp.1264-1294.
Purce, J., 2014. The impact of corporate strategy on human resource management. New
Perspectives on Human Resource Management (Routledge Revivals). 67.
Integration: Law, Policy and Politics (Cheltenham: Edward Elgar 2013).
Jiménez, G., Ongena, S., and Saurina, J., 2014. Hazardous Times for Monetary Policy: What
Do Twenty‐Three Million Bank Loans Say About the Effects of Monetary Policy on Credit
Risk‐Taking?. Econometrica. 82(2). pp.463-505.
Johanson, J. and Mattsson, L. G., 2015. Internationalisation in industrial systems—a network
approach. In Knowledge, Networks and Power (pp. 111-132). Palgrave Macmillan UK.
Palley, T. I., 2015. Money, fiscal policy, and interest rates: a critique of modern monetary
theory. Review of Political Economy. 27(1). pp.1-23.
Popli, R., Chauhan, N. and Sharma, H., 2014, February. Prioritising user stories in agile
environment. In Issues and Challenges in Intelligent Computing Techniques (ICICT), 2014
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Online
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