Business environment is determined as combination of internal as well as external factors which impacts on profit level as well as performance of firm in proper manner. It consists people, entities and some of the other aspects which impact on process of decision making of firm. It is an internal part of efficient and effective business management. It identify kind of business firm that will successful with an environment. An environment has several forces that give share to segment of business along with the product line (Adeoye and Elegunde, 2012). Under this, business environment is affected through different aspects and influence whole effectiveness of performance of an organisation. Under this report, firm that is referred Marks & Spencer and it deals in retail sector and also provide clothing, home accessories and many other products in some countries. Under this report discuss about various kinds and also purposes of firms like private, public and voluntary and also their legal structures. In this also discuss regarding relationship among various functions of company and they are related with organisational aims as well as their structure. In order to determine weaknesses and strengths, firm conduct internal and external analysis of particular company will be mention.
P1 Relationship between different organisational functions and link to organisational structure and objectives
Marks & Spencer is large size organisation and each and every person know about this firm. It conduct its business operations in many countries by providing different varieties of products and services to people (Auzair, 2011). Its main motive is to earn more profit through satisfying demands or needs of consumers by provide them products at reasonable costs. Every and each business give their full dedication in fulfil basic needs of consumers in an effective manner. Under Marks & Spencer, there are various departments which are link to organisational objectives and structure:
Marketing department- It is fundamental department that help in provide wide range of products and services at competitive market place. Its main motive is to fulfil needs of consumers in an effective or better manner. It is helpful in give competitive advantage to firm by achieving aims with in given period of time. It will be helpful in provide advantage to Marks & Spencer firm at market place.
Human Resource Department- The role of this department is to recruitment, selection, performance appraisal, training and development, increase productivity of company and many others (Avramenko, 2012). In addition to this, it is a responsibility of manager of this company is recruit the capable candidates which can perform in well manner and also provide them training so that they can deal with consumers and focus on perform their tasks and activities in well manner.
Finance department- Main function of this department is to arrange and manage all the monetary transactions so that all departments can perform their operations in better manner. It is liable for align finds to the distinct firm for doing business activities with in set time period.
Operation and Production department- This department is connect with produce products and services according to demands and needs of consumers in an effective manner. Their main work is to make quality of goods better so that people can attract towards form and purchase products. The Marks & Spencer organisation produce various services and products after examining main market which can help in fulfil needs of customers and attain objectives.
Research & Development- It is liable for conduct an investigation about market place, customer needs, existing products, competitors at market place and many others (Bar-Isaac and Shapiro, 2013). These all things are helpful in provide advantages to firm and on the basis of all these data or information in proper manner.
Division of Marks & Spencer organisation is fundamental and also related with process of decision making of company which can help in deliver better practices. In addition to this, it is necessary to manage environment and some various business operations to attain business operations and get positive results.
Structure of Organisations
Organisational structure is used to explain hierarchy with in company. It is helpful in determine each job, reports and also its functions. There are various organisational structure given below as above:
Product based- It is organised through particular type. In this, every product group falls with reporting structure of executive. It is helpful in organise products through categories but can develop separate procedure.
Customer based structure- Certain sectors will organize through consumer type. It is done an effort to assure particular expectations of consumers with the help of customized service approach.
Divisional structure- Generally, it is used in large size organisations which operate their business in geographic area or also have separate small size companies in order to cover various kinds of services, products or the market areas (Boons and Lüdeke-Freund, 2013).
P2 Positive and negative impacts the macro environment on business operations
There are several factors in macro – environment and these direct affect on operations of Marks & Spencer company. In external factors include political, economical, social, technological, legal and envelopment (Cronan and et. al., 2011). These all factors have some negative and positive impacts on business operations. Negative and positive impact on macro factors given below as above:
Political factors: It consist government role and also impact of all business firms to certain extent. It is related with role of national and international politics on organisational activities.
Positive impact: Marks & Spencer is an international organisation and it conduct its operations in different countries by follow all policies and government regulations.
Negative impact: If tax rate will be high then in this case profit can be reduced (Burns and Winter, 2011).
Economical factors: It determines an economic situation of nation in which Marks & Spencer conduct it business. Different components which are included in this are deflation, inflation, tax rates etc.
Positive impact: If income level of people will be high then their purchasing power will be more and demand will also be enhanced.
Negative impact: From reduce cash in economy, plan will be impacted.
Social factors: Under this include, lifestyle, age, occupation, population and many other elements. Social environmental factors has direct affect on purchasing of individuals.
Positive impact: High education has positive affect on product sale and it is helpful to company to use online mode for attract consumers.
Negative impact: Differences in culture in various nations.
Technological factors: It includes technological advancement, up gradation etc.
Positive impact: Modifications in technology helpful in reduce work load and provide better quality.
Negative impact: Obsolete technology develop negative on business.
Legal factors: It consists legislations which are developed through government and requirement to follow through Marks & Spencer.
Positive impact: Follow all legislations are helpful in provide better performance to business and achieve better results (Chow and et. al., 2011).
Negative impact: If in case firm will not follow all legislations then it will develop negative affect on brand image.
Environmental factors: It consists water, land, weather and many other element. These are necessary for individuals and also for companies. All firms depend on ethics and legislations which are responsible to neglect water, pollution and weather.
Positive impact: It is helpful in develop positive brand reputation and make positive impact in mind of people.
Negative impact: It has an indirect affect on manufacturing cost and minimize profit level.
P3 Internal and external analysis in order to identify strengths and weaknesses
SWOT analysis of Marks & Spencer given below:
High Quality: Marks & Spencer is one among the successful brand, because of its high quality products. Customers are well satisfied with rich quality of fresh vegetables and fruits available in its store.
High recognised brand: It is highly recognised brand by customer point of view in high street market of UK, which is known by maximum of the footfall. It has maintained its quality which gave another reason to recognise them at the time of shopping.
Diversified products: Marks & Spencer is one of the leading company in retail industry with diversified products like apparel, more than 500 types fruits & vegetables which are sold in supermarket where other retailers are unable to compete (Dahan and et.al., 2010).
Large no. of outlets & store: It has more than 600 outlets in UK & approx 300 in other 300 countries which are constantly increasing with every passing year.
Famous designing brand: Due to its vast range of product the company has subdivided its product with different brand name. This helps the company to manage its each brand separately in the effective manner. Like it has subdivided Women brand in name of “Classic, Limited collection, Portfolio, Indigo collection, Autograph etc.”.
Negative publicity: Marks & Spencer is facing problems due to its negative assumption among people, they believe that company is only focusing on the quality of the product they do not bother about the trend or recent fashion. This decreased the customers ratio for the company.
Lack of new technology: Marks & Spencer is increasing its cost by not opting new technology as old version involves huge manpower which increase expenses of the stores. By using new technology it can increase its productivity with the other logistic words in less amount of money (Fernando, 2011).
Waste store area: Stores of Marks & Spencer are not utilized properly as they have high space in store which can be used for warehousing instead of being wasted. This is the strongest weakness of the company.
Advance marketing strategies: Marks & Spencer have the opportunity in improving its market image by adopting advance advertising strategies. Now a days, there are lots of new techniques which are used by the companies to enhance their brand value. It will increase customers ratio.
Internet technologies: Marks & Spencer should go for high technologies which are available in the market like online selling of products, this will rise the demand of online products. It will be more convenient for the customers to purchase the product rather than buying them via visiting stores (Gebauer, Paiola and Edvardsson, 2010).
New Products: Marks & Spencer should launch new products for the health conscious people with innovation in healthy products like vegetarian, organic food products etc.
Strong competitors: This company has strong competitors in clothing market as well as in food market. In clothing Topshop, Gap, Next etc. provides the same kind of fashion in different price segment with equal quality. Similarly in food market, supermarkets like Tesco, Sainsbury and Asda is providing value product at affordable prices.
New entrants: Marks & Spencer has major threat from the new entrant which enters in this retail market with lots of planning & new technologies. They enters with the new innovative ideas which might be proven heavy competition to Marks & Spencer as it is massively quality oriented.
Modification in social environment: Marks & Spencer will also be affected by the social environment as taste & requirement of the are changing every day. It can be changed globalization, with the changing scenario people shifts from country to country which affects their eating habits as well as dressing pattern. So social environment is also termed as threat for this company.
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P4 Strengths and weaknesses interrelate with external macro factors
Under this, it has been evaluated that situations of any business firm has an impact on business of Marks & Spencer organisation (Commander and Svejnar, 2011). It is having some shortcomings and also qualities which are necessary foe an administration to know. External macro factors defined as factors such as regulatory and legal framework, policies of government etc. which make affect on effectiveness as well as efficiency of whole firm. The main strength of Marks & Spencer organisation to provide attractive products with the help of technological development and also lead to gain better position with earn more profit in an organisation. In addition to this, external macro factors such as revenue or tax management legislation s of government leads to internal tax management effectiveness (Cronan and et. al., 2011). Weaknesses and strengths interrelate with the external macro factors given below as above:
It has been concluded from the above given report that business environment is necessary business component that is necessary to be included through them in better manner through using better resources. It keeps on modification and also it is necessary for them to include thus factors and also introduce new alterations in existing services and products. In this report studied about scope and size of range of various kinds of organisations. Positive and negative affects macro environment has on business operations and they link to organisational objectives and also structure has been also studied under mention report.
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