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Business and Business Environment - Marks and Spencers

University: London School of Economics

  • Unit No: 1
  • Level: High school
  • Pages: 10 / Words 2577
  • Paper Type: Assignment
  • Course Code: L/508/0485
  • Downloads: 551
Question :
This assement will cover the following questions:
  1. Explain the  types, size and scope of Marks and Spencers..
  2. Show  the interrelationship of the various functions within Marks and Spencers and how they link to company structure.
  3. Use examples to demonstrate both the positive and negative impact the macro environment has on M&S operations.
Answer :
Organization Selected : Marks and Spencers


The term business environment is combination of internal and external factors which directly impact over organisation decision making process. As per the market trends varies, the business environment of an organisation also differ (Aithal,2017). Therefore, understanding the aspect of business environment is regarded as an important contribution for any form of organisation in order to attain sustainable growth and development in an effective way. In this report, it emphasize over the different form of organisation and its purpose, size, scope, implication of relevant theories to examine the impact of micro and macro factors over company, interrelationship between various business function within an organisation for accomplishing the goal in a better way.


Different types and purpose of organisation

The accumulation of both macro and micro factors is termed as business environment that keeps on changes as per industrial competition. Thus, it impact positively and negatively over organisation overall performance and growth. IN this aspect, three types of organisation has been considered i.e. Mars and Spencer as a private, Bank of England as a public and Oxfam as a voluntary. Each of these companies and multinational companies and operates its services at global level.

Public Organisation: This kind of organisation is link with those form of business whose functions and operations are operated or monitored by government. IN context of this, Bank of England has been regraded which is a known and established as a central bank within UK and it is founded in the year of 1694. Moreover, Bank of England is also authorised to issue notes for other commercial bank in UK and also provides proper direction or guidance to various financial institution to achieve their goal in an amended manner. Some of the examples are BBC, NHS and many more (Avramenko, 2012).

Private Organisation: This form of establishment is refer to any association, person, corporation who are publicly operated and governed rather they are established to earn maximum level of profit margin in a stipulated time duration. IN this relation, Mark and Spencer has been included as it is well known as famous and reputed firm within UK retailing industry. It is commenced in the year of 1884 and offer wide range of products such as food and clothing as well as covers the worldwide. Some of the example of private organisations are Sainsbury, ASDA, Waitrose

Voluntary organisation: Under this, it is refer to those group of association in which some personnel enter into an agreement as volunteers with an aim of improving the living standard of community and society in an improved manner. IN regard of this, Oxfam organisation has been viewed which is a an independent charitable company who mainly focuses over removing the issue of poverty and injustice from community. IT is founded in the year of 1942 and alsoorganises different campaigning programs in order to enhance the living standard of individual in an impressive way. Some of the examples are WHS, Save the Children, WellCome Trust and etc (Berg and Kilambi, 2014).

Size and scope of various kinds of organisation

The above mentioned companies are different from each other as each of them has unique set of goals, size, scope, legal structure. The explanation of these criteria are discussed below

Public Organisation

Services and Products- Bank of England render the financial services to different commercial banks within UK market. Some of its services are fixed term deposit, foreign currency payments, gold custody services and many more.

Size- The size of Bank of England is large in nature as it contain 1001-5000 employees who are highly skilled and potential to carry out the business managerial and operational function in an effective mode.

Scope- Bank of England operates its functional unit across the globe and also deals into differ types of services like issuing banknotes, regulating and supervising financial firms that makes its scope large.

Vision and mission- The core vision of Bank of England is to improve and enrich the effectiveness of banks in UK industry and also keep them monetary stable in order to acquire competitive position in competing marketplace (Chi, 2015).

Objectives- The primary objective of Bank of England is to promote the living standard of people by maintaining the monetary and financial stability and obtain best choice from clients.

Legal structure- The legal structure of public organisations are explained below:

Central Government: Such type of establishment are governed and monitored through central government.

State Government: In this, establishment are monitored and controlled with the help of state government.

Local Authorities: This kind of organisation are managed and processed through the local government.

Stakeholders- These are the manpower which take an interest in activities and operations of organisation. The stakeholders of Bank of England are customers, employees, government authorities, public firms (Craig and Campbell, 2012).

Private Organisation

Sainsbury is one of the multinational and well established retail company in UK market which mainly specialises in selling the food items, quality clothing and home products. It is founded in the year of 1869.

Products and services- Sainsbury deliver variety of products and deals into hypermarkets, superstore, convenience shop, supermarket all over the world.

Size- The Sainsbury has a size of 1,86,900 manpower who are able to put novel ideas or thoughts for the gaining competitive advantage among competitors.

Scope- Sainsbury has wide range of scope as it serve its products or services at global pace as well as it has improved level of customer base and also it is famous for maintaining the quality in its product.

Vision and mission- Vision is “To become the first and best choice for customer and expand the business activities at international level.” The mission of Sainsbury is to give the high quality service to targeted customers and also to provide best financial return to stakeholders.

Objectives- Its main objective is to attain sustainable profit margin and productivity ratio in competing industry and also to obtain increased of level of satisfaction from consumers. The purpose of Sainsbury is to meet out the requirements of consumers taste and preferences and maintain a positive brand image among competitors (Hillary, 2017).

Legal structure- Private company legal structure given below:

Sole- trader- In this, the whole functional unit is controlled and monitored by a single person and there is requirements of small amount of money to set up the business. Furthermore, sole trader has unlimited liability

Partnership- Under this, it is an agreement and combination of two and twenty individuals who come together with an intent of sharing the profit and loss in a equal proportion.

Public limited Company- It is small in size and owned by shareholders as well as they are obliged to sell the shares in general public.

Stakeholders- The stakeholders of Sainsbury are management, staff, shareholders and owners (Ifinedo, Pyke and Anwar, 2018).

Voluntary Organisation

Services and Products- Oxfam offer the services like fair trade, basic amenities for livelihoods, gender equality, justice, survival needs in natural disasters.

Size- Oxfam is a group of the 14 forms who operate its functions in more than 3000 parters in around 100 countries in order to acquire better search solutions related to poverty and injustice.

Scope- The activities which Oxfam conducted is fully emphasised on minimizing poverty and also save people life from disaster.

Vision and mission- Vision of Oxfam is to eradicate the poverty and injustice from society.

Objectives- The objective of Oxfam company is to assess the people directly when the local capacity is inappropriate. It works on providing the better life to people.

Stakeholders- The stakeholders of this company are Trade Union, Trustees and donors, Volunteers.


Relationship between different organisation functions

Each functional unit are interrelated with each but they perform various kinds of activities which are mentioned below:

Marketing and Human Resource department: In this marketing help human resource section by advertising regarding job vacancy through various mode of communications like advertisement in newspaper, online platforms, campus recruitment, job fare. With the help of marketing division, human resource departments can easily fill up the vacant job position in an impressive or productive style (Janita and Miranda, 2013).

Marketing and Finance: In this, finance section analysis each market trend and based on that provide sufficient amount of fund to marketing departments. Due to such action, Sainsbury's marketing section can promote the products or services by adopting different promotional strategies like public relation, social media marketing and many more (Tynan, McKechnie and Hartley, 2014).


PESTLE analysis

For examining the external macro factors, PESTLE analysis is a effective approach which enable an organisation to identify its external environment i.e. competitors, customer demand, government regulation and many more. Along with this, it also lead them to implement best strategic decision that lead an establishment to acquire improved level of productivity and profitability ratio. Hence, the PESTLE analysis of Sainsbury and Bank of England are discussed below:


In UK, the business of Sainsbury's affected by Brexit because due to it the situation of inflation was generate in the market and business environment so the prices of product are maximised. The respected company operate its business globally so the taxation cost is also increased which affect the company (Palepu and Healy, 2013). Increment in fuel prices is one of the biggest economical factor which highly affect Sainsbury's. Social factors which influence the business of respective firms are that the organisation offer healthier foods to its customers and also involved in charities and raise funds for several different cause like arrange social activities etc. This positively affect the business of the company. Technical factor also help in running the business of the firm such as the respective firm also offer online shopping option to its target audiences which help in maximising the customer base of the firm. Carbon footprint is an environmental factor in which organisation like Sainsbury make their large contribution by minimising the use and wastage of plastic. The management of respective company properly follow all the legal activities like labour law, consumer protection law, equality Act etc. of the government and by considering them operating its business which favourably affect the company. You can also have the assignment help services 

PESTEL analysis of Bank of England

The business of respective firm is affected by political factor when the the changes are generated in political environment like the organisation influenced by new regulatory capital rules. The economical factor affect the company when the changes are occurred in currency rate and the value of pound sterling against the major currencies like dollar and Euro. This negatively affect the firm. The managemnt of Bank of England make changes in ageing population for future product and services offers which provide business opportunities to it as pension age consumers have more incomes and earn higher disposable incomes. The firm also make technical innovation by offering application to its potential clients which positively affect the business of the firm. The administration of the company also make its contribution in environment by organising environmental saving program and activities. The company operate globally so properly follow all the laws in effective manner which favourably affect the firm. When the changes an d modifications are occurred in the legislation and polices of the government of different countries then it negatively affect the firm in term of generating threats for it (Palo and Tähtinen, 2013).

SWOT analysis

SWOT analysis of Sainsbury's

The company has a strong market position and good brand image which positively influence the firm and a strength of the company. The manage of the company maximise the prices of the products due to increment in the raw material which negatively affect the company in term of reduction in the customer base. By making business expansion through new products the firm can various growth options. The company have a big threat of competitors because there are number of competitors like Asda, Tesco and others which create competition for the respective company.

SWOT analysis of Bank of England

The company has good brand image and have worldwide presence which is the strength of the company (Shenkar, Luo and Chi, 2014). The management of the respective firm pay high to its employees so it affect the economic situation of the firm in negative manner and show in term of weakness. The firm can get business growth options by maximising the financial information among youth. The company operate its business globally so change in government plans and policies can affect the business of the firm.


Strength and weakness interrelate with external factors

The business of Sainsbury affected by Political factor due to the situation of inflation was rising in the market cause of Brexit so the prices of raw material and products are maximised which affect the company in term of its weakness and threat. Sainsbury operate its business globally so when changes in government regulations like taxation policy this affect the business of the company. The firm make its contribution in minimising carbon footprint and wastage reduction which it the strength of the organisation because with the help of it the firm positively affect the environmental factor. Online shopping option of the firm and healthier food are the growth option of the company which help in positively affect the company (Schaltegger, Freund and Hansen, 2012.).

You may also like: The Social Entrepreneur-Asylum seeker resource centre

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It has been summarised from the above mentioned report that every organisation has its one business environment that keeps on changes according industry trend and competition. Along with this, each establishment has its own size, scope and legal structure that help them to accomplish its business objective in an effective manner. Moreover, there is a relationship between business function that lead organisation to attain sustainable profitability ratio in a better way. Furthermore, PESTLE and SWOT analysis enable organisation to analysis internal and external factors in order to obtain profit maximisation.

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