M&S wants to analyse different organisations that can compete with the company in upcoming time. Business analyst of M&S has to consider size and scope of existing and future competitors.
- Explain size, type and purpose of different kinds of organisations.
- What is the relation between different functions performed at M&S and evaluate their link with organisational structure.
- Assess positive and negative impact of external elements on business activities of M&S.
- Find strengths & weaknesses by conducting SWOT analysis and connect them with external macro elements.
Business environment can be defined as the sum of entire intrinsic and extrinsic components which directly and indirectly affect outcome of different undertaken procedure. This is essential for carry out proper evaluation of different factors and surroundings of organisation in which they operate to monitor and sustain within the competitive business environment. Function of business within entire gambit of authentic environment as well as need to negotiate in the manner by it. This is fundamental for each and every organisation to undertake major determinants of business to function proper activities such as partners, consumer, employees etc. The whole practices support assistance in gaining competitive business environment along with the competitive edge of company increasing overall revenues of enterprise (Agarwal, Grassl and Pahl, 2012). Report will evaluate different environmental influences and aspects of Marks and Spencer which is one of the largest luxury food chain and supermarket of United Kingdom that is dealing in numerous segments of global market effectively. This assignment will evaluate the scope, size and nature of different enterprise types along with interrelation of different functions of firm with objectives of company. With this, it will also light over different external and internal environment and interlink between all of them.
P3 Relationship between different organisational functions and its link with organisation objectives
It is significant for each and every organisation to set their aims and objectives accordingly in regard of attaining proper business vision of enterprise. So, this is fundamental for an enterprise to design their structure of enterprise in regard of setting authentic target or objectives easily attainable. Since, M&S is performing their business on global market within more than 85000 employee group. This is also known as MNC i.e. dealing in numerous segments such as luxury items, food products etc (Aterido, Hallward-Driemeier and Pagés, 2011).
Numerous functions are carried out by Marks and Spencer such as sales and marketing, research and development, human resource management division, finance and accounting etc. Entire functions assist in accomplishing business objectives through operating altogether in significant manner. So, this organisational structure are interlink with the function of company which is complied in M&S are discussed here:
Marketing division: This is one of the fundamental function i.e. managed by organisation like M&S to sell their services and products and create awareness among the consumer. This division deliver the information and disseminate the message of organisation to the consumer creating a communication bridge among both of them. Hence, this is associated with several other division that can assist the enterprise in attaining competitive edge of firm creating more sustainability within marketplace (Auzair, 2011).
Human Resource Division: This function is generally performed through Marks and Spencer as it has employed extensive worker group. This create different influence on organisation by managing and satiating employees demands and requirements leading to better performance and productivity of enterprise. Hence, HRM practices can assists the enterprise in conducting planned programs in regard of achieving business objectives.
Operations and Production: It is a sort of functions of Marks and Spencer which is employed by organisation to produce commodities and manage the activities accordingly on the basic level. This create more coherent connection in the company's structure which aid in producing the determined plan. M&S is also delivering product manufacture after evaluating the market so that services can be produced with best quality of operations. M&S is also manufacturing their service which are being manufactured at the initial stage. This is creating a coherent link with the organisational structure as this can manufacture products according to the plan. Henceforth, enterprise can achieve their business objectives through creating value added products and gaining optimum outcome of operations (Avramenko, 2012).
Finance and Accounting: It is a sort of function i.e. creating their connection with the financial transaction i.e. incurring in the organisation on the regular basis. These divisions who are aligning funds to distinct division of organisation need to carry out practices in more disciplined manner. Hence, through optimum financial asset uses, conducting proper survey, asset creation, enterprise can reach to their set business objectives and outcome in more significant manner.
Research & Development: It is one of most paramount department which are essential for the company as this aid in understanding the consumer demands and outlines different aspects of market environment of Marks and Spencer to perform well and best. As M&S is one of largest supermarket expanded in global market, this can shape the business strategies and frame the outcome accordingly (Mahmood and Hanafi, 2013).
Henceforth, Marks and Spencer can help in creating more development in competitive business environment as this is obliged to attain different perspectives of markets and assist in managing different practices of company significantly. This made the practices crucial within distinct practices in more effective manner.
P4 Positive and negative impact of Macro environment on Business operations
There are several factors which are present on business environment and also impact on activities as well as operations of Marks and Spencer. In addition to this, there are two factors internal and external which impact on business activities but among both there is no control of management on the external factors. Both factors have some negative as well as some positive impact on operations and activities of an organisation. It affects on policies and also rules which are performed through management (Adeoye and Elegunde, 2012). In this organisation, manager developed effective or proper policies in order to reduce affect of internal and external factors. Policies play necessary role in attaining decided aims and objectives with in specific period of time. In order to determine positive or negative impact of business, management of Marks and Spencer organisation use PESTLE Analysis which are mention below as above:
Political Factor: Under this, there are different policies which are developed through government of United Kingdom country. The rules and policies of each country is different from each other and before conduct business in other country, it is necessary for Marks and Spencer to know about policies of that country.
- Positive effects: It is helpful in doing business operations in significant way and also having the free trade policies which are able to minimize cost of sourcing. Brexit has an affect on activities of business (Bar-Isaac and Shapiro, 2013).
- Negative effects: If new rules will be executed then Marks and Spencer business firm will be get its necessary resources at minimum cost and it is not beneficial for business. So, from this business relations of two different countries will not be good or effective and firm can face many problems.
Economical factor: In this, there are many factors which can affect on business operations like for an instance inflation, growth, deflation rates of specific country. All these