Brexit is going to bring more challenges in the upcoming time for all the companies that are operating in the UK. Business analyst of Mark and Spencer has to make a report which will cover different types of organizations that can impact current operations of Mark and Spencer
- Evaluation of various size and scope of business organization.
- Determining interrelationship of Mark and Spencer and their link with the structure of firms
- 3 Evaluation of the positive
The term “Business Environment” comprise of all internal and external variables that impact business exercises and working of business. These factors includes government, technological factors, stakeholders, consumers, employees, legal and environmental factors that exceptionally impacts activities of an undertaking in both negative and positive way (Asif, Garvare and Ahmad, 2011). It is important for every organization to have proper understanding regarding these forces so that they can formulate business strategies and policies accordingly. The present assignment is based on Mark and Spencer which is a UK based retail store that mainly deals in providing clothes, grocery products and luxury food items to large number of customer. It include how different types of organisation vary from each other in terms of size, scope, and purpose. It also covers how organizational function and objectives are inter-linked. Along with this PESTLE and SWOT analysis is taken into account for determining its positive and negative impact.
P3 Inter-Relation between organizational objectives and functions
Mark and Spencer is a leading British retailer which offers different items around the world. Principle target of organization is to produce high benefits and also contribute in the public eye welfare (Bhaduri and Ha-Brookshire, 2011). For adequately addressing necessities and prerequisites of clients, enormous endeavours are made by firm. In an association, a few offices are working together, for example, generation, human asset, promoting, fund and so on. Every office perform distinctive parts and duties in any case, work for the normal reason, that is, achievement of association's destinations in particular time frame. In Marks and Spencer, these divisions works all things considered for performing capacities and activities easily.
Human Resource Management Department: It is one of the real division of an associations which performs different essential capacities. Commitment of this practical division is high in development and accomplishment of organization. Directors have pivotal impact in deciding worker needs of firm . They distinguish current needs and foresee future one to select and employ right number of individuals inside organization. Choice of candidate is done based on their capabilities and abilities. People with extraordinary experience and information is procured so objectives and targets can be refined effectively. They likewise render preparing to their employees so that, they can bargain successfully with challenges. A few exercises are led by HR of M&S which helps in expanding commitment of representatives in exercises of organization. This will build group working and leads the firm towards effective fulfilment of goals of organization (Cavusgil and et. al., 2014).
Finance Department: Fund is fundamental segment by the assistance of which exercises and tasks are performed successfully. This department play significant part in development and achievement of organization. Each firm needs to keep up sufficient back so that at the season of possibility, firm can without much of a stretch deal with their working. In Marks and Spencer, back director has the obligation to allot stores for different exercises to various offices and figure spending plan. They guarantee to keep up proper measure of cash with the goal that everyday tasks run adequately (Chetwood and et. Al, 2014). On the off chance that sufficient assets are accessible with firm, it will aids achievement of objectives and targets.
Marketing Department: Department of marketing helps with upgrading deals and expanding benefits of organization. Research is directed by advertising directors for getting data seeing winning business sector slants and needs and necessities of clients. Viable designs and systems are composed and executed by them so as to advance their merchandise and ventures in showcase. M&S manager influencing utilization of different special instruments keeping in mind the end goal to impart its esteem and advantages to clients. This will help firm in achieving high development and achievement and empowers it to accomplish targets adequately. Effective marketing aid in building extensive shopper base and helps in increasing high loyalty of customer.
Function based: Activities and capacities are the fundamental premise on which branches of firm are separated. Fund, human resource,marketing, generation and so on are principle division premise.
Geography based: A specific locale or region is the premise of division. Needs and wants of clients living in different locales are distinguished by firm with a specific end goal to viably meet them (Crane and Matten, 2013).
Product based: Products that are offered to clients are the premise on which division is finished. A few merchandise are offered by Marks and Spencer to their clients are luxury food products, clothes etc.
P4 Application of PESTLE framework and its positive and negative impact
Political Factors: Usually company operates in more than one country, this variable exceptionally impacts on working of business. Factors like stability of government, tax policies, legislation, exercise duty etc. impact overall working of the company.
Positive effect: Effective policies and strategies can be detailed by form's managers by thinking about this factor. These arrangements and plans helps with achieving goals of organization (Gharajedaghi, 2011).
Negative effect: Strict government directions affect business tasks of firm adversely. One of the factor that impact gainfulness of organization is increment in impose rates.
Economical Factors: Level of development of every nation is diverse where firm offers its items. By this, it can be comprehend that economy of every nation is unique. Income, exchange rate, deflation, interest rate and so on are the factors incorporates into efficient variables.
Positive effect: Good monetary state of nation helps in development and growth of business and enhance its business figure.
Negative effect: High deflation rate countries specifically impact the requests of results of organization. Less wage of individual impact demand of goods in a negative manner.
Social Factors: It includes culture, religion, behaviour, income and value of purchasers that impact working of Marks and Spencer. The figure that impact both positive and negative way is training of people.
Positive impact: If there are more young people in nation, it will put constructive effect on business. It aids extension of business tasks and expanding offers of products of organization by the use of online technology.
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Negative effect: Lack of training is one of the factor that put high effect on exchanges of business.
Technological Factors: With the development of high end technology, it become easier for firm to gain high competitive edge in the market. Organization needs to keep themselves aware about latest and advance innovations.
Positive impact: Adoption of new innovation encourages in enhancing nature of items which at last increment deals and productivity of organization.
Negative impact: Use of old and out of date innovation impact activities of business in negative way. It will prompts increment in cost of generation and drop down the proficiency of employees (Gilboy , 2016).
Legal Factors: These variables incorporates different laws and directions that are made by government. In each nation, there is an alternate lawful condition. Agree to every single legislative direction helps in successful running of business activities.
Positive impact: For smooth running of business operation and activities it is important for a company to follow all laws and legislation composed by Government.
Negative impact: Ignorance to these laws, negatively affect working of M&S.
Environmental Factors: It is the obligation of organization to keep their environment clean. Firm should be receive different ways that helps with securing condition.
Positive impact: M&S have introduced its go green plan called “PLAN A” keeping in mind to protect and promote environment (Kian Chong, Shafaghi and Leing Tan, 2011).
Negative effect: Overseeing of natural laws may brings about feedback of society look by organization. It makes negative picture of firm in customer's mind.
P5 Internal analysis to identify strength and weakness of firm
Most powerful brand of retail with a top of the mind recall. Majority of its revenues are generated by operating in different countries of UK.
Sell product under their own private label. Apart from this they are also selling products of others brands as well.
Gained popularity for selling “value for money goods”. It means the company is well known for providing such goods and services that meet diverse needs and requirement of customer in an effective and efficient manner.