Business environment is one of the important aspect which includes internal and external factors that affect the all the activities of the company in positive and negative manner. Both factors are vital which helps company to run their activities in effective manner. Employees, government, demand, supply and many more are the main components of business environment. As all these play vital role in developing as well as enhancing overall performance level of the company. By considering all these factors helps in enhancing strength of the firm. Thus, it is important duty of manager to develop appropriate strategies to implement all the sources in most appropriate manner (Business Environment. 2018). This will contribute in establishing positive brand image of the company at market place. Current assignment is based on Marks and Spencer, is biggest retail company which provide clothing and grocery products and services in over the world. This report discussed about various type of purpose of different organization. Size, scope and legal structure of business is also mentioned in this assignment. Along with this, organizational functions and its relation with its objectives and structure is also mentioned in this report. At the last of the project, SWOT and PESTLE of company is discussed here which may helps in determining actual image of the company.
P1 Different types and purposes of organisations; public, private and voluntary sectors and legal structures
In today's time number of opportunities are there for business organization to enhance their brand image. As government of UK also define business by considering its workers number, scope, operational activities and son on. Along with this, different type of business organizations set their activities. Thus, it is major duty of managers to effectively understand their company nature and type before perform their business activities at market. Along with this there are some three types of enterprise like, M&S, NHS and Oxfam. All these are operate their business with specific nature such as private, public and voluntary as well. In this all these companies are responsible for following legal These can be understood by following points:
Under this, companies are operate their business with the aim of attaining success in market place by generating large profits (Avramenko, 2012). For this they produce quality products to customers by understanding their specific needs and wants. As, there is no control of government authorities upon business activities as all the operations are effectively controlled by the private people. In addition of this, they are not allowed for inviting public to sell their shares. As Marks are Spencer is famous company which operate their business in over the world. As they offer various quality products and services to larger number of customers (Bovee, Thill and Raina, 2016). Along with this, company offer clothing and grocery items to larger number of customers with the purpose of generating larger profitability level.
Purpose of company:
As a biggest company, the main aim of this company is to enhance their operational activities at global level. In this they serve number of products and services to its customers by understanding their needs and wants. This will aid in enhancing their profitability level.
Legal structure of private company
- Sole proprietorship: It is an organization which is operate and control by the single person in which all the control are comes under in an individual. Along with this they having unlimited liability.
- Partnership: Under this two or more than two parties are comes in formal agreement in which they share all the liabilities and profits are equally. As the main aim of this type of companies is to generate more profits.
- Limited companies: As there is two type of companies like limited by share and guarantee as well. Under this, a separate legal entity which is distinct by individual.
In this, all the activities and aspects are control by government. Along with this, all the operational activities are operate with the purpose of providing quality products and services to its customers (Cavalcante, Kesting and Ulhøi, 2011). NHS is best example of public sector as they provide medical services to society development. This will directly contribute in developing living standard of the people.
Purpose of company:
As company perform their business activities for betterment of society. In this the main purpose of NHS is to provide quality medical services to society by treating them with respect and dignity.
Legal structure of company
- Central government: It is known as apex body of government as this regulate all the functions carry out by state and local government.
- State government: As this body is develop policies for education activities and at the same time also contribute in functioning agencies activities.
- Local government: This type of bodies are functioning day to day activities to manage entire activities of public companies.
These types of companies are perform their activities for betterment of society not for generating profit. As they required approval form government bodies to perform their activities (Hair, 2015). In this Oxfam is best example of this sector as it is charitable firm and also focus on developing economic growth by reducing poverty from the nation. Along with this provide food, shelter to poor people with the purpose of fulfilling their basic needs.
Purpose of Oxfam:
One of the main aim of this company is to remove poverty by providing better and long lasting solutions. For this they provide education to public to enhancing their living standard. Choose the best assignment writing service in Canada from experts.
P2 Size and scope of a range of different types of organisations chosen for the purpose
Every business organization having their size and scope in which they can perform their business activities in order to attain desirable results. Marks and Spencer, NHS and Oxfam are different firm as they performance their activities with the specific purpose.
Marks and Spencer
- Size: Marks and Spencer is famous company in which they serve diversified products to its customers at market place. As they having approx 84939 workers who put their efforts for attaining success at market place. In addition of this, company easily generate larger profitability level by serving quality products and services.
- Scope: As Marks and Spencer provide diversified products to its customers as per their needs and wants. Along with this, they produce grocery and clothing items to number of number of customers.
- Vision: To produce quality products with affordable cost is vision of Marks and Spencer. With the help of this, they can enhance their profitability level.
- Mission: As the main mission of Marks and Spencer is to be a leading company in retail industry by delivering quality services to number of customers.
- Size: NHS is public company as it established in 1948 with the purpose of providing good healthcare services to people. Along with this, they has qualifies workers within their activities as they perform their activities effectively.
- Scope: NHS provide medical services to society with the purpose of proving them betterment. As they serve diversified services to poor people for reducing health issues.
- Vision: To provide services for making society healthier and independent.
- Mission: The main mission of NHS is to remove poverty from the nation which helps in developing the economic growth.
- Size: Oxfam is voluntary company as they operate their business with the purpose of removing poverty in over the globe. As it is established in 1942. They serve food, shelter to poor people for improving their living standard.
- Scope: Oxfam perform their activities in different field as they work for reducing poverty from the nation for improving economic growth.
- Vision: Under this, the major vision of this company is to make poverty free world as they want to see all the people free.
- Mission: One of the main mission of Oxfam is to remove poverty by providing better services. With the help of this they can improve living standard of society.
P3 Relationship between different organisational functions and how they link to organisational objectives and structure
Every business organization having functions which are highly relate with company objectives. Thus it is vital for Marks and Spencer to perform all the activities in most effective manner with the purpose of attaining desirable goals and objectives. As selected firm operate their business at larger level as they execute entire business activities for grabbing customers attention (Hamilton and Webster, 2015). In addition of this, organizational structure also play vital role in developing positive brand image at market place. All these can be understood by following points:
For attaining success at market place, it is important for business organization to effectively promote their products and services at market place. In this marketing manager carry out an effective market research to understand customers needs. As it is relate with finance department because it allot adequate funds to implement marketing tool in market place.
It is one of the important division which help business organization to execute entire activities of the company by allocating adequate funds to entire department. With the help of this Marks and Spencer easily attain set goals and objectives in an appropriate time frame.
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Under this, it is important duty of HR manager to recruit and select capable workers for executing business activities (Karagiorgos, Drogalas and Giovanis, 2011). As this department is highly relate with marketing and finance division to enhance their productivity level at market place.
Research and development:
Under this, manager of the company undertake an effective research for evaluating all the activities with the purpose of attaining desirable goals and objectives in appropriate time frame. It is highly relate with marketing department as they easily promote their business activities.
- Function based: Under this, it is important for business organization which is relate with human resource, marketing, and finance. With the help of this company attain set goals and objectives.
- Geography based: Under this, organizational structure is based on the geographic which help in attaining success at market place.
- Customer-based: Firm is focus on customers needs which helps in providing them better satisfaction level.
- Product-based: Under this, company produce quality products and services as per customers needs. As company increase their profitability level.
P4 Positive and negative impacts the macro environment has upon business operations
Legal authority is effective to understand that can be completed via following of government policies which assist to make effective activities which are better for developing loyalty.
Due to variation in governmental policies and activities, manager of M&S has to modify their plans as well as policies.
Economic is the tools which is better for making modification in business activities and polices (Kolk, 2016).
It is essential in order variation in business policies and activities through capital that can be created and this support to develop business activities and policies to plan in an effective and efficient way.
M&S is the big brand in the retail sector, so it is beneficial to work and perform as per variation in demand and needs of customers. This support to create business capable to marketplace and it assist to make trust.
Through this, social factor highly effects on the performances and productivity of enterprise.
It is more essential and significant factor which benefited to the enterprise to save their time as well as cost also.
Sometime advanced technology in the business operations highly impacted on the business activities as well as employees performance also.
There are certain laws and regulation which has to be reasoned by administrator of M&S for working all functions business effectively.
If organization is not working and performing as per legal standard then there will authorities hinder and this impacts image of M&S.
Environment is another the factor which identify regarding utilisation of different techniques via which variation in products and services are needed. This is essential for evaluating market as well as products according to benchmarks (Nishitani and et. al., 2012).
Due to modification in environment, business manager has to create an effective policies via which variation as per alteration in environmental forces. Thus it highly effects the business ability.
P5 Internal and external analysis of specific organisations in order to identify strengths and weaknesses
It is one of the important responsibility of every business organization to determine implement internal analysis because it is an appropriate tool through which company determine their strength and weakness. With the help of this company measure their actual performance in market place. For attaining the same, Marks and Spencer conduct SWOT analysis as it helps in evaluating the current data and information towards the company and its activities as well (Osterwalder and Pigneur, 2010). In addition of this, it is important duty of manager to effectively implement all the strategies in order to attain sustainability at market place. As SWOT analysis of Marks and Spencer are as follows:
- Marks & Spencer is the renown brand in the retail sector. Which covers huge variety of categories like eye wear, apparel , footwear etc. Its products are mainly men, women & children oriented.
- It has made online shopping more convenient by avoiding delivery time. It provides shop your service for online ordering & pick up product from the merchandise store.
- Company has spread its roots globally by owning 1000+ stores across 40 countries.
- It has around 80000 employees all over the world and provides equal opportunities to employers to not get biased with any employee.
- It uses high technology to reach their targeted market with usage of mobile, catalogue, online selling.
- Company is working hard on its R&D which is reflecting in their new food products & also adding more items in its Frozen food range.
- Although the company is spreading globally but its supply chain scalability is still in poor state. It connects to its all merchandise by online stores but is unsuccessful in delivering products in all locations globally. The unsold stock left in their warehouses is sold in end of season sales with less price.
- Company has build up their good brand image in United Kingdom, United States and Europe, but is unsuccessful to attract customers of Asia & Middle East due to their majority of product are only of western design not traditional.
- Even though company deals with wide variety of products for everyone, but people have misconception that they do not offer for teenagers & youth which decreases customers (Pikka, Iskanius and Page, 2011).
- As Company's good brand image its their responsibility to make distance from the fake & pirated products which can affect their brand name.
- It can expand their brand in India & China as these are among two of the worlds biggest market with good future opportunities.
- Company can reshape their clothing section as they have spread their store in Asia & middle east, if they will focus on traditional wear it will help them to attract customers.
- As the company has vast opportunities to spread there business in the international market they are ignoring there own untouched market on which they can work hard and capture them more effectively.
- They could launch their food products for the heath oriented customers who are focused with more trending variety like Low fat food products, organic food, Vegetarian etc.
- To cover more segments of customers they can focus on the product range with affordable price for middle class & below middle class customer.
- Major threats of the competitive companies which offer same variety of products in similar range of prices like Zara, United colors of benetton, Tommy Hilifiger, Gap, Uniqlo etc.
- Every country has its own government policies for retail stores which have to be followed by every company who is working under retail industry.
- Cloth industry changes there trends rapidly, it changes with the change in
- Increasing minimum labour cost of United kingdom affects the company because 90% of the employees are U.K located which ultimately affects the profitability of the company (Reed and et. al., 2013).
- Change of the social environment also becomes the major threat for the company as people are migrating from one place to another it brings change in their dressing style , eating habits, so Marks & Spencer have work hard to satisfy the adjustive needs of the customers.
- New Potential entrants can become the threats for company as they are entering in market with new technologies & more innovative ideas which can give big competition to them.
P6 Strengths and weaknesses interrelate with external macro factors
It is vital for company to enhance their business activities to understand their opportunities which is relate with macro factors. As there are some strength and weakness of company with is relate with macro factors:
It includes all the legal and political terms which are important for company to implement within their activities.
- Strength: BY implementing all the acts company enhance their productivity level.
- Weaknesses: If company fails in following laws and regulations then they reduce their image and market share as well.
There is utilisation of different sources including internal or external via which goals and objectives of company can be accomplished effectively.
- Strength: It is also involved in Corporate Social responsibility by participating in reducing Greenhouse emissions & and listed in worlds most responsible companies in 2014.
- Weaknesses: It offers products for above middle class & higher class customers which avoids vast range of middle class & below middle class people.
It includes customers needs and wants in market place as they produce quality products and services (Shigang, 2010).
- Strength: Customers are quiet unsatisfied with the return policies & poor in store experience which increases brand switching.
- Weaknesses: if company produce low quality products then they reduce their profitability level.
From the above mentioned report it can be summarised that, business environment play vital role in overall performance of the company because it is sum of all the forces in which some factors are controllable and uncontrollable by the firm. But still company highly depends on them and it directly affect on sustainability and activities of business enterprise. Thus, it is important to effectively understand the environment factors to run business in an effective manner. As it include internal and external environment which put positive and negative impact on business activities. Along with this, various department also there in business organization which are relate with function of organization. This will aid in improving the performance level of th