Business environment is changing and it is creating problems for retail organisation as they have to close outlets and reduce their workforce. Marks and Spencer also closed their 14 shops. Proper research of internal and external environment can assist companies in making better strategies.
1. To explain different types of organisation by considering their size and scope.
2. Analyse relationship between different functional departments of M&S and their connection with existing organisational structure.
3. To evaluate the impact of positive and negative external factors on business operations of M&S.
4. Ascertain strengths and weaknesses of M&S and the relationship of these internal factors with external elements.
A business is deeply influenced by the working environment in which it operates. The internal and external working environment plays a very deep and crucial role in handling of wide range of business operations that will help in effective rise in its scope and efficiency. The better micro and macro environmental factors will help in effective growth and development of the company in a better way (Armstrong and et.al, 2015). Besides this, it will support the rise in operational capabilities of the organization and help in meeting the requirements in a better way. For the report, Marks and Spencer’s (M & S) is been taken as the organization of context. Besides this, NHS is taken as Non profitable organization and Oxfam is been considered as a Non-governmental organization (NGO). The report will lay emphasis on different types of organizations with context to their business purpose and supply of goods and services. Also, the difference between various kinds of organizations are been taken in consideration with their market share, profit, growth and sustainability. Apart from this, different kind of structures and complexities with organization mission and objectives are been shared.
Other than this, the PESTLE for identification of positive and negative impacts of Macro environmental factors is been performed. The external and internal assessment of retail firms is ben done and interrelation of their strength and weaknesses with external factors is been evaluated (Drucker, 2017).
P1 Different type of organization’s on basis of profit not for profit and NGO’s and their business purpose with supplying of goods and services.
There are various sorts of organizations that are operational in market and perform a wide range of business operations and handle the functionality of the organization in a better way. This will help in better handling of wide range of business functions that will help in a suitable rise in the capabilities of the organization. These handling of the organization will lay a very deep impact on their business purposes and will have an effective supply of goods and services. Some major firms that are been taken in consideration are:
Profit based organization: they work mainly for the profit and their main aim is to gain a good market share and effective revenue generation. Their main source of investment is the money invested by their stake holders, investors and their cash in hand. This will help in better handling of operations which would lead in a better management of a wide range of operations. They use the gained revenue to expand and promote their services and products and gain a good customer satisfaction level by providing the high quality product and services to their customers in return of a set up cost (Hillary, 2017).They rarely get the governmental support. For Instance, these involve the organization working in retail, manufacturing sector etc. For example Marks and Spencer’s
Non-governmental organization: Also known as NGO this organization works for the better bent of society and gets the proper support on financial and operational front from the government. Their major role is to provide better services to their customers or buyers. Such organizations are funded by government and get their products and services from them. This will involve the proper use of resources that are been possessed by them in a very effective manner. They don’t gain or use the profit or revenue gained by them for their personal operations. They mainly work in the health and social care sector and provide a good quality of services to their users or clients. For example Oxfam, etc.
Related Sample: Research Project - Case Study on Marks & Spencer
Not for profit organization: They work for a specific purpose and thus look after the better handling of vast range of operations that are been followed by the business or operational entity (Botha, Kourie and Snyman, 2014). They mainly work for a specific purpose and thus look after the better handling of operations. They get their functional resources from either the volunteers or the other supportive firms in form of donation and charity. They work for betterment of their operations and use the resources and gains to develop effective and innovative products to meet the requirements of people. These are not governed or controlled by a governmental body and usually work independently. For example Oxfam UK, etc
Size and scope of different types of organizations with market and profit share, growth and sustainability
There are various organisations that are organisation's in the market on the basis of various scope and size. This helps in the better differentiation and handling of the operation in a better way. Organizations of varied size are operating in market such as:
Micro level: These are been owned by a single individual and thus has a limited scope and functionality. The profit gained is been used by the individual for its personal growth and development purposes. The limited scope makes it difficult for them to expand and they have a constrained work force. For example, a grocery shop, salon etc.
Small size: they are bigger than as compared to that of micro level but are smaller in comparison to medium firms they work on local level but has a scope to expand on interstate level. The market share and profit they enjoy is used to manage their functionalities and work forces. Besides this, they have a good sustainability in market as they are major job providers in a market. For example, schools, educational institutions etc.
Medium sized: they have a scope bigger than that of smaller firm but are comparatively little than larger firms. They have the vast potential and scope to expand and improve their functionality. They can be operating on local and interstate level but can function on international level i.e. in their neighboring countries. Along with small level firms, they operate in many sectors to cater maximum number of operations. Their main aim is to generate high level of revenue and attain a better and sustainable market growth. Their profit margin is used to expand their functionality. For example, retail firms like Marks and Spencer’s etc.
Large level: they have the highest of scope and production capabilities. Their main aim is to meet the operational requirements of the organization in a better way. They mainly work in service and manufacturing sector and have vast budgeting and revenue generation (Hair Jr. and et.al., 2015). They cater the customers on wider level and seek the support from other organization’s and enterprises. Also, they have high level of sustainability that helps them to perform well in market. For example, aviation industry etc.
The major difference between them is the scope of operations and the financial resources that are been utilized by the organization. The Micro level firm work independently while the large organization's are dependent on small and medium size enterprise to provide them with proper raw material and essential work force to carry out their manufacturing operations.
Go through the related sample on Business and the Business Environment
P3 Organisational structure and functions
In respect to make effective functioning, there are different types of functions and operations operated by Marks and Spencer. All department of the business are interrelated with each other that help to focus on the innovations and creativity at workplace. It will help to focus on different perspective that attains more desired objectives in the business environment (Aithal, Shailashree and Kumar, 2016). In the international areas of the world, these aspects help to make systematic performances as well. Therefore, following department consider operations and functions that are related with each other:
Marketing department: Marketing department play very important role that is related with all other activities and functions of the whole business. This is because; marketing strategies and capabilities consider positive impact to focus on the innovations and creativity at workplace. In this aspect, advertisement, sales promotion, etc. functions operated by the department to increase their sales. As results, it is directly link with production department of Marks and Spencer where products and services have been made to attract customers. In addition to this, sales person also require to market the products and services so that it depict that this department consider some advantages to HR department to recruit people in the business. Marketing department related with the all other functional areas because they considered all activities of chosen business to focus on the effective working. For instance, they hire new skilled employees at workplace with consider marketing activities.