Business Environment of Marks & Spencer


Business environment consists to be the most essential element of each business Enterprises as the whole activities of business are carried out according to be organized business plan as to implementation of all operations in well planned and effective manner. Marks and Spencer is the chosen an organisation for this particular report the company mainly deals in luxury food and home products and clothing.In this given task, examine about the different purposes and sorts of associations. The extension and size of scope of various types of association will likewise be specifying in this report (Cai and Yang, 2014). Interior and outside the two variables influences on business condition in a positive and negative way. This report will be useful in comprehend relationship among different elements of an association and they are worried about the authoritative structure and in addition goals. Qualities and furthermore shortcomings both are interrelate with the full scale factors.

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P1 Interrelation between different organisational departments and their link to objectives

Each small as well as large business and prices are having their own aims and objective and on which all activities of firm are based it is required for each business Enterprises to implement effective relationship within the each and every functions of firm as to completion be targeted to kohl’s in most valuable and effective manner (Gebauer, Paiola and Edvardsson, 2010). Marks and Spencer is a large private limited company which operates its business operations all over the globe and the company deals in different sectors like clothing luxury food items and Home items so it is essential for organisation or its higher authority to maintain a good relationship among various organisational functions as to attaining higher growth. As a large business association Marks and Spencer has categories their business operations in different departments as to maintain appropriate interrelationship among all the departments and which are described as under:

Marketing Department: This consists to be a most important apartment as it is formed for enhancing sales and revenue of firm at Marketplace. At the time of producing a new product Marks and Spencer is mainly concerned towards analyzing the new market Trend and customers needs and this create value in satisfying the needs and wants of people at market area.

Finance department: This is also an element of form and it has a direct connection with monetary transaction of form it is essential for an organisation to have an effective and good financial background as to implement all business operations in best possible manner this section is effective in providing funds to the each department of firm as two conducting all operations in effective manner in this department various activities are involved such as arrangement of funds creation of assets reducing liabilities etc (Halbert and Ingulli, 2011).

Production: This consists to be the primary department of farm as the growth and success of firm are based on its production function. It refers as a process in which planning directing controlling are involved. As a large retail company Marks and Spencer is widely concerned on producing high quality products and services in respect to maintaining its effective image in the mind set of customers.

Human resource: This department is mainly focused on increasing the strength of employees within the workplace as to improvising the operations of farm the department of human resource as involved in various activities of firm such as managing controlling directing etcetera the major motive of Human Resource Department is to hire well skilled and educated people at workplace in respect to developing business operations at Wide area of market.


P2 Positive and negative effects of macro environment

Macro environmental factors are consisting to be an essential element of each business firm and have a huge influence on the growth and development of firm (Hamilton and Webster, 2015). PESTLE analysis is the best way to analyze the factors of macro environment within Marks and Spencer, the essential element of macro environment are described as below:






Under this, all policies are developed through United Kingdom. In addition to this, if government will formed new legislation as well as policies for manufacturing products then it will have affect on activities of business firm.

Company can attain a positive and competitive image at market place through following the norms and policies of government.

It is hard for an organisation to implement all changes at regular basis.


Under this, if an economy will be go down and up then it can affect on development and also offers of firm. In this way, it is essential for Marks and Spencer to decide every one of these progressions which occur at business condition

From inflation will upgraded then reserve stream will be expanded and bring more cash (Hilton and Platt, 2013).

On the off chance that condition will change on ceaseless premise, at that point there will be trouble looked through this firm with respect to dealing with every one of these alterations.


This is related to the social environment, as the needs and wants of people are changed as per the change arises in the market trend. It is essential for Marks and Spencer to provide satisfactory products and services to their customers in respect to retaining them for long run of business activities.

With this organizations are able to capture a wide area of market which creates value in attaining growth and success.

It is not easy all the time for firm to produce goods as to fulfilling the desires of buyers.


Under this, propel innovation is presented by Marks and Spencer as to conduct its business operations in effective manner. This association utilizes diverse innovation with a specific end goal to influence change in its business and additionally activity to process.

It creates value in firm to making appropriate changes in their production functions.

This enhance the extra cost of firm.


It is required for each business enterprises to follow the rules and legislations which are implemented by government or its bodies. Marks and Spencer is consistently following the rules of government as to attaining growth without facing any kind of issue and conflicts.

Government legislations are effective in protecting the rights of employees.

legislations can contempt their management policies.


These elements comprise those factors which are recognizing through surroundings of a domain. It is imperative on account of upgrading shortage of populace targets, crude materials and so forth by working together in a moral way.

Red- tapism will be reduced and firm can easily implement its operations in effective way (Klapper, Lewin and Delgado, 2011). 

All printed material will be decay and start utilizing web offices. From this work will be diminished.


P3 Internal and external analysis of particular organizations

Internal as well as external factors has a direct impact on the operations of firm, in an organisation it is essential for management to consider all the factors which has impacted the growth of firm. PESTLE and SWOT analysis is effective in analyzing the internal and external factor of Marks and Spencer:

SWOT analysis of Marks & Spencer


Strength can be considered as a power of firm and the major strength of Marks and Spencer is that company has good image at market place and creates value in gaining attention of buyers towards the firm or its offered products and services.


The major weakness of firm is that the cost of labour is enhanced which has a direct influence on the productivity and performance of the firm.


As a large retailer company Marks and Spencer has the opportunity to create their own website as to making organisational transactions more easy and effective,


High competition within the market is the major threat of firm.

Chaining needs and preference of buyers.

PESTLE Analysis of Marks & Spencer




Reducing the cost of sourcing due to free trade policy.


Dispute with the medium and small retailer over increment cost of retailing as a outcome of cash influence of Brexit.


Product chain recalls develops negative trends of society.sss

Effect on the brand goodwill of an organisation.


Increase productivity of firm and conducting business operations in appropriate manner (Prajogo, 2016).

Company Provide variety of communication channel to firm.


The companies are having Policies having standard packaging and also using eco- friendly goods.


It is essential for Marks and Spencer to focus on the waste management.

P4 Strengths and weaknesses interrelate with external macro factors

It has been sees that the business condition is having an effect on exercises and also activities of Imprints and Spencer. This firm has a few qualities and also shortcomings which is important to decide by administration. In Joined Kingdom, this firm has large number of customers and has solid nearness in worldwide market. In addition to this, outside variables rolling out improvements for firm so there is a need to spend more sum and additionally time by fulfilling diverse sorts of obligations.

Marks and Spencer has reputed brand value and dress is a main brand of this association in United Kingdom. This firm is entering later on business sectors, for example, China. Financial improvement of this country is most astounding and obtaining capacity of individuals of United Kingdom is additionally upgrading. The income of Marks and Spencer is upgrading step by step after confronted numerous political and in addition efficient issues (Savrul, Incekara and Sener, 2014). The income of this business firm is improves on constant premise and furthermore opening new stores in a portion of alternate nations like for a case India and China. With respect to this, outside components ought to survey Marks and Spencer to take after viable procedures of worldwide and in addition quick development.

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From the above given report it has been concluded that Business environment comprises of various internal and external factors which have a direct influence on the functions and operations of an organisation such as consist partner’s consumer’s investor’s staff member’s board of directors etc. Is the for most essential responsibility of organisation is to analyze the environment of business as to taking effective decision about implementation of organisational activities in appropriate manner.

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  • Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive priorities: The role of performance frontiers. International Journal of Production Economics.151.pp.131-145.
  • Chavis, L.W., Klapper, L.F. and Love, I., 2011. The impact of the business environment on young firm financing. The world bank economic review. 25(3). pp.486-507.
  • Commander, S. and Svejnar, J., 2011. Business environment, exports, ownership, and firm performance. The Review of Economics and Statistics.93(1). pp.309-337.
  • CuervoCazurra, A., 2011. Global strategy and global business environment: the direct and indirect influences of the home country on a firm's global strategy. Global Strategy Journal.1(34). pp.382-386.
  • Gebauer, H., Paiola, M. and Edvardsson, B., 2010. Service business development in small and medium capital goods manufacturing companies. Managing Service Quality: An International Journal. 20(2). pp.123-139
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