Marks and Spencer Business Analysis: SWOT and PESTLE

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Task 1: Using the information and data gathered from your research on the different institutions, explain the different types, size and scope of these organisations. (LO1P1, P2, M1)

P1 Explain different types and purposes of organisations; public, private and voluntary sectors and legal structures. Give examples by using Marks & Spencer, a public organisation, legal structure and voluntary institution (four examples required).

Every organisation has some goals to achieve and this individual organisation goals can be achieved only by combined efforts of various resources such as, division of work and grouping of numerous activities or different types of activities that can form in an organisation succeed or make progress to achieve their goals, according to the requirement needs and specialisation, in term of where every organisation specialise in different ways. and to attain or achieved this goal it is very important for any organisation to set up or have a proper organisation. The organisation structures of

The first goal is to make money, but to a non-profit organization fulfil its mission serve those in need the profits stay in the business organisation to be used to fulfil their mission the number one Biggest difference between non-profits and profits is how to used capital or money that the organization raise. As a non-profit, the first bottom line is to make sure they fulfil their plan or mission and the next one is to having the necessary funding they need to support the business now and in the future

Also, non-profits organizations they considered or prefer public benefit corporations that may receive their revenue from a combination of  Donations or grant income, Donated facilities and equipment, and Low paid or volunteer staffs.

Marks and Spencer can be described as establishment of authority relationship with provision for coordination between vertical and horizontally in an organisation structures. The aims and objectives of a business is to achieve great goals as long term business and Limited organization to make different aims and good objectives to also helps and impact many lives.

Marks and Spencer aim and objectives is to make more products and increase in their business every year whilst making more profit. Marks and Spencer has varieties of different products in different range of stores and in different location, this diversification of their products and services as core quality is giving greater opportunity to complete their business in global market.  REF 2013 to 2017

The business also is SMART, this means they set company goals which are specific, measurable, agreed, realistic in terms of making profits in their business and timely. M&S is also a fast growing organisation, fashionable , intelligent ,with  good environment , good staffs even the staffs works towards their objectives , get everyone involve and understanding the aims and purpose of the organisation by carrying everyone along with them to makes the organisation fulfil the purpose and goals in terms of achieving the best.[Appendix 9] in 2007/08 Marks and Spencer has increased the number of overseas stores by 38 by bringing the total member of stores to 278 which also increased to 18percent in the same year.

MARKS AND SPENCER SCOPE AND PURPOSE OF BUSINESS.

Marks and Spencer was established 1884. Firstly the purpose is to make sure that all the Marks and Spencer company finished their products that containing fish, shellfish, wild-caught or farmed, that they has been produced by using all their seafood both the raw materials and ingredients sourced from fisheries and farms that is their Requirements and again to make sure that all their products on the shelves pose that display on the shelves  are not risks or in dangers, for their customers in order to pleased their customers if the goods bought from the Marks and Spencer are not okay or not pleased their customers they are happy to return them back within 28 days with the receipt.

The additional scope in business in Marks and Spencer has been modelled by using a range of different Techniques as such in which they provide a scale and identification of which are now addressing the business organisation.

Marks and Spencer is a Limited organisation which follows a flat organisational structure as we know that this types of organizational has been a Limited level of management between the administrative level and also with front line employees. The Marks and Spencer are an organization that encourage their employees in terms of making decision process, the marks and spencer organizational structures basically to decrease bureaucracy and this organization hard more skilled on the employees by authorizing them to make decisions by communicate with the managers and base line employees this allows make it easy and allows rapid chan T. stalker, G.M [1961] The management of innovation.

Marks and spencer [2010] The official Board.

F. BORKAR R [2010] flat organizational structure.

Volunteering organisations support individuals as well as impacting people lives in many ways such as; physical, emotional, spiritual, financially, and so on. It gives individuals a sense of purpose in terms of hard value into people’s life to fulfil their destiny, when these non-profit organisations step into individuals life a lot can change, for example social welfare organisations which are non-profitable organisations that are devoted to preserving and improving a community, social workers which protect and safeguard vulnerable individuals, charities which raise money for a certain cause, YWCA Foundations which raise funds to give women and young girls all over the world opportunities as means of empowerment, EPA Environment Protection Agency this non-profit organisation aims to preserve and save the environment, there various types of non-profitable organisations in the UK which are very diverse and have different aims.

The multinational charities there are types of voluntary organisations in the UK these voluntary sector or organisations is very diverse like multinational charities, local community groups and in between they filled with much committed passionate people or organisations they work hard to make life fill better. One of the 180,000 registered charities some are also housing associations, credit unions community interest companies, trusts, local community groups and other organisations.

The organisations volunteers also contribute to public sector organisations, such as school governor, non-stipendiary magistrate or volunteering with a hospital patient, association.

A voluntary organisations or sector also has many stakeholders such as Beneficiaries, Funders, volunteers, Trustees, Staffs and partners.

Voluntary sector organisations management and governance is like the private sector or organisation. Example the Board of trustees that act as directors this team of staff or volunteers they ensure or make sure the delivery of the trustee’s strategy, but in some smaller organisations especially those that without paid staff.

The trustees are guided by the organisations governing document to lays out the organisations mission and goals most of the voluntary organisations are non-paid they don’t the staff is a free organisation and these organisations has advantages.

Examples:

Non-profits employ interesting people.

Unparalleled growth opportunities

The opportunity to change the world is around every corner.

Non-profits valve business skills.

The universe gets smaller.

The ref KAPLANIN IN MAY 2007.

(Include Mark and Spencer when given examples).

PUBLIC ORGANISATIONS- A public sector organization is a type of organisations that are formed and operated by the government that exist to provide services for the government citizens.

Education [schools, Libraries] Electricity, Emergency services, fire service, Gas and oil , Healthcare, and Law Enforcement.

It’s also called the boundary zone with two types of organisations that can be part or join public sector state businesses that are government owned and controlled businesses that sell goods or services for more gain in their private market.

Public organisation whose securities are traded on a stock exchange and can be bought and sold by anyone, public company are strictly regulated, and are required by the law, to publish their complete and true financial position so that the investors can determine the true worth of the stock. The shares that the company has offered to the public and the shares has limited liability. Schools, Police, Military and Water Supply.

PRIVATE ORGANISATIONS-private organisations can be defined as encompasses all for profit businesses that owned by the government, companies and corporations that are runs through what is known as the public sectors, while charities and other are non-profit organisations are the part of the voluntary sector. Training facilities, free club, Hospitality, food ,Leisure, legal services, Accounting, Tax, small and medium-sized Businesses , plumbers, sole proprietors, Developers and Designers.

Sometimes it can be referred to as the economy and citizens sector which is sets by private individuals or groups it is usually known as enterprise for profit, and is not controlled by the state referred to as the public sector. Examples are Dentistry, Legal Services, Accounting and Food/ Leisure services.

NON-PROFIT ORGANISATIONS

There are many types of Non-profit organisations in the UK.  Most of them are registered charities i.e Housing Association, Credit union and Local community groups. Volunteers donate their time to support the organisations activities. Some of the NGO have Trustees, Funders, Volunteers, Partners and Staff.

Voluntary sector organisation is similar to private sector.

PURPOSE AND OBJECTIVES MICRO ORGANISATIONS-The objectives of private companies is restricting by access to the company policies, competitive strategies and the marketing plans.  The private company are also interested in securing the right time of organisational structure for their business interests. Private companies can be organised as corporations limited liabilities companies, partnerships or sole proprietorships. Every one of this organisational structure has different types of benefits for their company and each of the individual stakeholders by choosing the correct organisational structures it also limits on financial transparency, restricting access to their business policies and procedures to make sure that the knowledge of the company that the data is secure out of the public eye.  They also keep the secret of the company safe.

MEANING OF SME-is a small -small businesses are private owned by corporations, partnerships or sole proprietorships with employees that less than 50 employees, regardless of revenue, it is also the business that is managed by a small firm or organisation, which has a minimum of 100 workers.

MEANING OF MEDIUM SIZED ENTERPRISES -the medium sized enterprises can be defined as the enterprises which employ less than 250 workers and which have an annual turnover not more than 50 million euro is also a convenient term for segment businesses and other organisations that are somewhere between the small office like home office [SOHO] size and the large enterprises and the [SME has a legally independent company with no more than 500 employees.

Partnerships and private limited companies.

A sole trader can be described as a business owned and controlled or set up by one person although they can decide to employ other workers, example the newsagent’s shops. A sole trader is also known as proprietorship with a simple business structure whereby each individual runs their own business. Is also self-employed and has unlimited liability. If may ultimately succeeds or fail depending on how you handle it.  A sole trader is owned by a single individual who is personally responsible for the business debts and continued existence.

A partnership- A legal form of business organisation between two or more individuals who share management and profits after sales the government recognises several types of partnership. The two most common are general limited partnership and limited partnership. One of the major advantages of a partnership is the tax treatment it enjoys. Bookkeeping, Home Healthcare, Financial planners, landscaper, computer repair services, careering company, freelance writer, Tutoring and Virtual Assistant.

PRIVATE LIMITED COMPANY-the private limited is a small types of business company are run the same as public companies in which owner liability is limited to their shares, the firm is limited to having so or fewer shareholders, controlled by a board of directors and financed through selling shares. A company that becomes an independent legal when it incorporates it can also be known as independent retailer in a market town. It’s usually a large well-known business e.g.  ag VODAFONE, GOOGLE, FACEBOOK, EBAY, TWITTER. This type of business entity limits owner liability to their shares or restricts shareholders from publicly trading shares.

Agriculture giant Cargill and candy maker mars.

P2: Explain the size and scope of a range of different types of organisations, and scope of organisations: 

There are differences between the small, medium, organisation, and large that called speed that mean how to make decision making attitude towards risk, in terms of allocation of resources, by understanding of business models and the management of the business models.

Also, the large organisations in Marks and Spencer by looking at the different ways it requires longer time to make a decision sometimes it can be very frustrating in a case of when making decision. Decision making delays can hinder the progress of the company. SMEs, are sometimes better as more often by not making a decision can make in urgent. it can help the SMEs to grow quickly when compared with a large scaled organisation.

A large organisation can also have models in a wider perspective in comparison to SMEs. Large organisations have the resources to plan a house training for their employees especially the management executives by sending them probably to overseas countries for training programme or sessions. This programme will provide a large horizon to the employees that are available for the training activities towards achieving the company’s goals and missions. To round it up, also every business needs to start from a small and medium before moving to a large enterprises or organisations.

SMALL ORGANISATIO

CEO

OPERATIONS FINANCE
MARKETING
HUMAN RESOURCES
SALES BUSINESS
DISTRIBUTION SUPPORT
PURCHASES

OFFICER

SALES OFFICER
ICT
MACHINERY SALES OFFICER HR FINANCE
CHEMICAL SALES EXPORT INDIA EXPORT
SALES EXECUTIVE 1 SALES EXECUTIVE 2

LARGE ORGANISATIONS

PRESIDENT

DIRECTOR OF PRODUCT VP DESIGH VP FINANCE VP MARKETING HUMAN RESOURCES
PRODUCT MANAGER A
PRODUCT MANAGER B
PRODUCT MANAGER C
PRODUCT MANAGER D

Franchising is an attractive way or form of foreign business markets in order to have financial investment or profit or gain in a business. The franchisor, have to make sure that the franchisees must pay majority of the expenses associated with the business.

Franchising is also a firm with a small portion of making a portion of gain under its brand name.

For example, KFC work together with some of the franchisees in a country call Asia by selling fish dishes without the approval of KFC. JOIN

Franchising is also an organisation called franchisor that approved the right to use the brand name products, and process as to other organisations in term of exchange for an upfront payment a franchise fee with a royalty fee. (SHAW, 2014)

LICENSING.

While franchising has the opportunity with service industries licensing is mostly frequently used in the manufacturing industries.  They also involve in granting a foreign company, that form a company business organisation within a foreign country in exchange for a fee. COCA-COLA BRANDS, DISNEY, PIZZA HUT, UPS, SUBWAY, REMAX, DOMINION PIZZA AND VIRGIN.

JOINT VENTURES

Joint ventures are a firm that form with two or more organisations that choose to maintain strong control of operations and they also have power by turning a local firm in term of exporting, franchising and licensing this company also work together cooperatively, they also share decision making with authoring, control and any profits that they make. BMW, AND TOYOTA China is an attractive country is a base of chicken key element of Chinese diets. Subsidy arise of KFC a stark is how much is the business in china has change for the past twenty-five years.

EXPLAIN INDUSTRIAL STRUCTURES AND COMPETITIVE ANALYSIS.

The purpose of Industrial Competitive Analysis is to understand factors that impact on the performance of the industry as well as the performance of firms within the industry.   Managers use ICA to allocate resources, reach strategic goals such as market share or profitability and help their firm to improve within the industry. ICA can be defined as porters five forces Analysis, it is one of the important tool for business strategies. It depends on the view profit margins between industries, that explained by the structure of the industry.

The five forces primary purpose depends on how attractive the particular industry is.  Analysis provides the starting point for formulating or creating strategy and understanding the means of competitive landscape on how the company operates

The economic operations can be described as a social science that studies about what we called human behaviour with a relationship between the ends and scare, economic is also means a study of the trader that involved when choosing between the alternative sets of deciding.

The purpose of economic is to meet peoples need for consumption both as a means of survival but can also meet their ever- growing demand, for improved life style or standard of living.

The basic economic problem is about scarcity and choice since there are just only a limited amount of resources available to produce or provide the unlimited of amount of goods and services of desire people or requirement for demand of peoples, for example if the supply of good or service are low, the market price will rise, providing there is sufficient demand from

M1: Analyse how the structure, size and scope of different organizations link to the business objectives and product and services offered by the organisation. 

The international organisation companies they are the companies that sells products in foreign countries by exporting goods to countries they also involved in various import activities this type of company’s organisations they did not have their own establishments in foreign country they own company’s organisations do not have any foreign countries where they export to or import from their products/ services, their development are processes is to accomplish in the domestic country. The global growth and developments of trade between many companies around the global world have come forward in order to sell their products and render their services not only in their domestic country but also in different foreign countries so because of this it has opened up more opportunities for global companies that make it to grow more and diversity. 

EXAMPLE -international company, transnational company, global company.

The transnational company the types of company can be defined as mixture of the global, internationals companies, it also forms in many of the features of the 3 types of companies for example the structure of the company is a little complex type and can also be considering in many aspects vital for global trade by accepting the local cultures and both the consumer behaviours of the ultimate marketing strategy based on it. This company called transnational developing and invest mostly in foreign direct investment in many of the foreign countries where they operate Example MC DONALD, KFC.

REF [ACT 2013] [SIMONE TEDESCO  JANUARY 05, 2017

Evidence: Reports

Task 2: Focusing on your research, demonstrate the interrelationship of the various functions (Marketing, Finance, Human Resource Management, and Operations) within Marks & Spencer and how they link to organizational structure. (LO2P3, M2, D1) 

MARKETING -marks and spencer is known as one of the international company that spreads all over the Europe, north Africa and Asia is also known as one of the largest that is leading variety store retailer in the UK. with new brand and product that develop over the last ten years with fast moving consumer goods sectors in the UK with the most original and successful initiatives have taken not by manufactures but by retailers.

HUMAN RESOURCES MANAGEMENT – Marks and Spencer business organisation plc was founded in 1884 by Michael Marks and Thomas Spencer is known as the one of the top UK retailer with 730 stores in the UK and 361 stores in 40 countries in the world as of 2012, is also has 81,223 employees worldwide.

Marks and Spencer are operating as a competitive market that lead by TESCO and AZDA, customers of Marks and Spencer has a range of choice on what they shop for they are not only sale food and cloth they also sale electronic products, financial services and energy products, they also have both stores and online also where customers can purchase their product 24/7.

P3: Explain the relationship between different organisational functions in Marks & Spencer and how they link to organisational objectives structure.

 

The main functional areas within the business organisations for Marks and Spencer as a limited company organisations or  large organisation it’s easy to known and separate functional areas because the people work together as a team in departments and each departments carries out their tasks that relate to a particular sections or areas and also the main purpose of their functional areas is to make sure that all important business activities are carried out quickly, their aims and objectives in their business is to makes profit and achieved in the areas of sales example sales and marketing are involved in  achieving the targets which linked to the development of their markets and also how to increase their sales .another thing is that human resources is one of the important that involved in arranging training activities for their staff in other to support them in continuous in the same professional development for all the staff.

These are the functional areas in their business organisations.

Research and development.

Productions.

Sales

Marketing

Administration

ICT

Human resources

Customer service

Distribution

Finance

In Marks and Spencer organisational structure has an limited levels of management that is between the administrative level as a front line employees  .this types of organisational structure that is following the organisation are there to support the employees to make positive decision in process because the employees have positive and good roles to play within the organisation like the customers that buying their stock also those  that managing the stock and in order to  work within their stores both the staff helping in the areas of marketing so Marks and Spencer formed a business in flatter organisation structure.

The organisational structure in Marks and Spencer it can decrease bureaucracy in order to make the employees have the knowledge of authorising in making a good decisions due to low management levels with the employees communication within the upper managers and the base line employees in a way of making speed charge and solved any occur problem  it is also has levels of management within the high and low of pyramid with different departments with the head and the manager by leading each sections together with the executive management at top of the pyramid. In conclusion Marks and Spencer organisation structure lead a good organisational structure because of the vast organisation they have to make more better available organisational structure for the best future of the company.

The organisational objectives in Marks and Spencer are the great expectations that the staff can hard to the organisation because there must be an improvement within the organisation or the management for them to achieve their goals for example the Marks and Spencer attract, motivate and retain high quality staff to assist the transformation of the business and to bring performances to the organisation.

Another thing is that the organisational objectives in Marks and Spencer are also is to regain their leadership in clothing and in food to gain by translating their scale and the authority into high quality, marks and belief that there are a lot of opportunity for changes in their sales.

The functional area within an organisation in Marks and Spencer is SALES AND MARKETING DEPARTMENT.

COMMUNICATION DEPARTMENT-this is the area of exchanging information within two or more people or groups

ORAL COMMUNICATION-this area is by telephone conversation where placing goods with another business and also this oral communication can be a conference that allow most people to make conversation without need for them to travel to a meeting for example the meeting of the board of directors of a larger organisation to know how to deal with difficult situation with the customer

WRITTEN COMMUNICATION-this type of communication is used in all area of businesses even the use of information technology it can take different forms it also used in marks and spencer for communication purposes and to let the employees of about the appointment of the new member of the staff and also Marks and Spencer can write to the customers about a new product

AUDIO VISUAL COMMUNICATION- this type of communication is about information technology such as video conference and video links on the internet that can give opportunity to people in order to see and hear each other to bring quality changes to communication within the organisation and with the head office from different stores

INTERNAL COMMUNICATION- this is the exchange of information with different people within Marks and Spencer are the instructions lay through the employees also as a form of legal document. Marks and Spencer are very good in communication skills which helps their employee’s satisfaction they also grow as an organisation they increase in profits and communication example EMAILS, FACE TO FACE COMMUNICATION

EXTERNAL COMMUNICATION- in Marks and Spencer have meetings with the suppliers through the email telephone discussion, video communication and the catalogue that help the customers advertising their business by using these forms of communication Marks and Spencer knows that their business is going to be successful because through telephone conversation is the fastest and great methods of communication.

The role of marketing, finance, human resource management and operations within the organisational context and the interrelationships.

 M2: Analyse the advantages and disadvantages of interrelationships between organisational functions in Marks & Spencer and the impact that can have upon the organisational structure.

The organisation functions in Marks and Spencer organisations. are the marketing, finance, sales, production, research and HR each have own sub that is represented the board level.  This are the functional organisational structure of Marks and Spencer. The organisations have different structure on the on their objectives as the organisation are interrelated within the organisations objectives IKEA is one of the profit-making organisation that work with a goal and developing by living standard with their customer

Board of directors

Chief executive

Production director

Sales director

Marketing director

Finance director

HR director

Research and department director

Production department

Production department

Sales department

Marketing department

Finance department

HR department

R AND D department

Marks and Spencer’s Management Chart                                                                       mm

(Internet accessed on 20/10/2017 @1.30pm)

Analyse the advantages and disadvantages of such interrelationships.

D1: Provide a critical analysis of the complexities of different types of business structures and the interrelationships of the different organisational functions. (Use two examples to explain the structures). Can all business structures do interrelationships of their different organisational functions? No. Why? Briefly explain the different types of business structures (using 2 examples) Write a critical analysis of the complexities of (by using) any 2 -transnational, international and global organisations.

The transnational business structures is a combination between global and multiformities strategies  and the organisational of a structure that is international business of choices in terms of resources environment the balance of authority within the central office and business organisation the level of products and services are the customers in order accompany the tastes and the choice of local markets their plans and purpose is to combined the elements of global and the multi-domestic strategies.

A global business organisation is involving high level degree of concentration of resources and capabilities in the central office and central authority in a way of exploit potential scale and have more knowledge in economics also the local level is automatically low the resources are dispersed throughout the countries where they have their business

AMERICAN EXPRESS

GLOBAL SOURCING AND LOGISTICS

GLOBAL INTELLIGENCE AND INFORMATION

GLOBAL CUSTOMER SERVICE

GLOBAL ALLIANCES [e.g. British Airways and us Air, KLM and northwest]

Task 3: Using contemporary examples; demonstrate both the positive and negative influence/impact the macro environment has on business operations (LO3P4, M3)

P4: Using the emergence of internet identify the positive and negative impacts the macro

The negative and positive impacts of the emergence of what is called the WEB 2.0 signifies the increasing the importance of the internet gift commodity strategy. this also known as strategy commodifies with the users who produce the content and communications online on free access platforms so that the advertisement rates are also known how it driven up, and how it also functions as a legitimizing ideology. .

environment has upon business operations, supported by specific examples. 1. Briefly define the macro environment (Supported with a diagram). Give examples of macro

The micro environment can be defined as the immediate small-scale environment of an organism or part of an organism as a distinct part of a large environment.

It can also know as factor in organisations with the immediate area of operations that affect the performance and the decision making for free dom. Distribution channels, suppliers, and the general public.

factors. Political Factors (taxes, tariffs, quota, change of government, government policies).

Economic factors (exchange rate, inflation, disposable income, recession, economic growth, interest rate, etc)

Use at least 3 points from each category below 2. Giving specific examples, discuss the positive and negative impacts the macro environment mentioned above has upon business organization 3. How has the internet affected the effects of macro factors?

COMMUNICATION-in micro this is how it affects communication in a business with customers and the employees and associate change automatically when the internet increases new communication tools. email and instant messaging have changed the face of the business communication according to the history small business administration, 36 percent of woman owners and 38 percent of male business owners use email occasionally, why over half of both men and woman use email at least occasionally.

TELECOMMUTING -A lots of businesses offering a way for their employees to from home by using office equipment provided by the company. the process referred to as telecommuting, can allow the allow a business to decrease its cost by less office space by using less in utilities for daily operation. the suite commute website, in 2008 ,33.7 million employees telecommuted.

ADVERTISING- the micro in advertising both the internet in a business advertising budget that extends the business ability to attract customers from their back yard to all the four corners of the globe, websites, the placement and the search the engine optimization, and it also referred to SEO, which approved business to have the presence on the web and reach millions of the potential customers.

Use at least 3 out of the points to be considered below:  Impact of the digital revolution on production and consumption; the impact of social technologies; cyberspace security; emerging

The social technology digital revolution is impact on the energy marketing involved by power stations of old being exchange by smaller power sources that close to site consumption. These distribution energy solutions are more affordable, efficient and protected. they are also renewables like solar and feed and the energy ca be stored either locally and consumed anytime it needed to support with the large energy is to make the most of the distribution of energy with power resilience, to perform and for the growth.

ENERGY INSIGHT

DEMAND SIDE RESPONSE

COMBINED HEAT AND POWER

POWER GENERATION

BATTERY STORAGE

ENERGY EFFICIENCY

POWER IN YOUR HANDS

New thinking, new technologies, and new ways of working.

The production and consumption on the digital revolution can impact by providing and by approaching the global environmental form by linking consumption and production and putting into account of the international goods and services. this means the publication in three different groups; the production can report by use of the resources as primary inputs example domestic extraction of materials with the emissions directly into generated with the national economic.

The consumption means how the it shows the resources in the domestic end of a demand of a country where these resources were used for the trade it also means how the resources and pollution are embodied in the international trade.

The way the cyberspace security impact of the digital revolution. firstly cyberspace is a land of opportunity at the same time a land that is full of dangerous world  as a public and private organisations the way it move into the cyberspace,  so as the criminals move in too which called cybercrime it form of criminals activities by carry out with the internet this crime as became increasing everywhere and everyday these cybercrime have course a lots of problems and the cases always shows on newspaper headlines regular basis  and even everywhere the nature of the cyber criminality landscape.

BRICS markets, the global shift in economic and social power; ethical and sustainable growth.

M3: Apply appropriately the PESTLE model to support a detailed analysis of the macro environment within Marks & Spencer.

The PESTEL analysis is what we call a tool as a marketer that can be used for seeking the analyse a d the screen for the external marketing environment of the organisation the management framework gauges and the macro environmental factors also the different macro environmental factors can also affect the business strategies also PESTEL analysis and SWOT analysis are the business instrument that used to known the strengths, weakness , opportunities , and threat of an business  organisations PESTLE analysis tool is used by the companies organisations to track and analysis of macro environment in which the organisation operate in PESTLE analysis why

P -stand for POLITICAL

E-stand for ECONOMIC

S-stand for SOCIAL

T-stand for TECHNOLOGY

E-stand for ENVIRONMENT

L-stand for LEGAL FACTORS

The technological can affect the economic in different markets.

THE POLITICAL FACTORS these factors play a lot of good role in a business also there is a balance between the systems that control the free markets as a global economics organisation the opportunity and the threats that expanding into a new region in the areas   of production.

POLITICAL FACTORS.

TAX POLICIES

STABILITY OF GOVERNMENT

ENTRY MODE REGULATIONS

SOCIAL POLICIES

TRADE REGULATIONS

ECONOMIC FACTORS =these factors can economic can change a lots thing during the lifetime by comparing it with current level of the inflation, unemployment, economic growth, and the international trade

EXAMPLES

  • DISPOSABLE INCOME OF BUYERS
  • CREDIT ACCESSIBILITY
  • UNEMPLOYMENT RATES
  • INFLATION.
  • INTEREST RATES

SOCIAL FACTORS-these factors have the assess to the way the consumers in a given market they also like the exchange rates, these social factors they know the sets time to borrow they can bring good change into the economic

EXAMPLES.

  • POPULATION
  • DISTRIBUTION OF WEALTH
  • CHANGES IN LIFESTYLES AND TRENDS
  • EDUCATIONAL LEVELS

TECHNOLOGICAL FACTORS-

These factors knowns as potential technologies that advanced in internal efficiency that help the product to become technological in business and it increase every year these factors bring a change and also embrace opportunities.

EXAMPLES

  • NEW DISCOVERIES AND INNOVATIONS
  • RATE OF TECHNOLOGICAL ADVANCE AND INNOVATIONS
  • RATE OF TECHNOLOGICAL OBSOLESCENCE
  • NEW TECHNOLOGICAL PLATFORMS [VHS AND DVD.

ENVIRONMENTAL FACTORS- these factors both consumers and the governments organization have impact on environment they also rewarded for having positive effect on the environment and the consumers too are planning to move the brands

LEGAL FACTORS= these factors are involved in law and regulations their work is to overview the legal elements to the political framework it can also affect the organisation who does not act positively ‘

EXAMPLES-

  • EMPLOYMENT REGULATIONS
  • COMPETITIVE REGULATIONS
  • HEALTH AND SAFETY REGULATIONS
  • PRODUCT REGULATIONS
  • ANTITRUST LAWS
  • PATENT INFRINGEMENTS.

The macro environment within Marks and Spencer are external and internal environment that is connect with the forces and factors this help Marks and Spencer to record of their success and profitable since its established with quality products and their financial products and with the price given to their customers.

VALUE

PRIMARY ACTIVITIES

SUPPORT ACTIVITIES.

In Marks and Spencer, the application of the pestle analysis of the framework they used it for marketing to analyse and screen both the external marketing environment of their organisation the framework are political, economic, social, technological and legal.

Task 4: Determine the internal strengths and weaknesses of specific businesses and explain them interrelationship with external macro factors. (LO4P5, P6, M4, D2)

P5: Conduct internal and external analysis of specific organisations (Marks & Spencer, and the voluntary institution that you used before) in order to identify their strengths and weaknesses.

Mark and Spencer

STRENGTHS WEAKNESS OPPORTUNITY THREATS
High quality staff research From outside
Creativity wastage management Bad decision
Determination Stock control Team work The change of
Customer services Waste store space Achieved goals Environment
Shopping environment Business low Internet technology Chemical pollution
Manager training Wrong assumption Increase demand Strong competitors
Management Bad publicity Marketing extending Environmental pollution
Work experiences Fail management Healthy eating Fashionable brands
Improvement limitation Loyalty
Retail technology loses
Skills
Increasing global

I Care Charity organisation Limited

STRENGTHS WEAKNESSES OPPORTUNITY THREADS
Good support Establishing teenage members Build communication links Voluntary time limited
Strong skills Targeting our donors Family activity weekend Recession-limited funds available
Good communication Maintaining contact Media area of opportunity Difficulties in attaining grants
Good partnerships Gaining commitment from the regional support contact Increasing support with psychologist attendance/presentation at the family support day NHS cuts- limited opportunities to build awareness
Donation income Better communication Developing corporate support in charity challenges
Trustee dedication Regular fundraisers Retaining fundraisers with praising and thanking
Increase brand awareness Supporting the GOSH publicity

The results of this analysis I present it the fact that within the charities organisation we need strong skills and the abilities to target donors We can do this by organising family activities around the charities and try to obtain new funding.

Also needs good communications to maintain contact a media area of opportunity in some difficulties in attaining grants.

We also need good partnerships to gaining commitment from the regional support contact by increase support within the psychologist attendance /presentation at the family support day within the NHS by cuts limited opportunities to build awareness.

Also, we need donation for better communication by developing corporate support in charity challenges and trustee dedication by regular fundraisers and retaining fundraisers with praising and thanking to increase brand awareness by supporting the GOSH publicity.

P6: Explain how strengths and weaknesses interrelate with external macro factors.

The strengths and weakness of business organisation are combined together with macro and micro environment factors the management look at the strengths of the company as an overcoming macro environment factors as and then formed strategic both the operational policies there is an dramatic transformation in environmental factors that affects the decisions  taking by the interrelationship within the environment factors and the organisations strengths and weakness also strengths and weakness and macro environment factors as they work together with each other and they affect each other the moment the company refuse or fail to identify the strengths and weakness it means that the company cannot analyse macro environment factors then it will fails to formed the strategic plans and  both the plans tactical plans so weakness can negatively affect the organisation the moment the organisation is not able to meet up with the customers’ needs or demand by supplying the amount of product that means it already affects the profitability of the company so it is important for organisation to make all efforts in improving their weakness

ECONOMIC

POLITICAL AND LEGAL FACTORS

TECHNOLOGICAL

ENVIRONMENTAL FACTORS

SOCIAL AND CULTURAL

RESOURCES

M4: Apply appropriately SWOT/TOWS analysis and justify how they influence decision-making. 

MARKS AND SPENCER SWOT ANALYSIS =

It shows the internal business in strengths and weakness of an business organization, opportunities, and threats of the external business. the SWOT ANALYSIS is by calculating the facts and the total figures that can bring strategic planning.

THE STRENGTHS – Marks and Spencer have many strengths in terms of brand value of their organisation and the range of their products and both in different types of outlets that help the business to yield in terms of make it possible to supply the public

  • HIGH RECOGNITION OF THE BRANDS.
  • WIDE VARIETY OF PRODUCTS
  • LARGE NUMBER OF STORES AND OUTLETS
  • POPULAR DESIGNER BRANDS

WEAKNESS -they have a negative effect in the way that draw back in their business as the organisation is out of fashioned and non-trendy as these organisation has wide ranges of goods products and different brands as well as most people still has negative assumption that men wear and woman are just for aged people not for teenagers and young people.

  • BAD PUBLICITY AS NON-TRENDY STORE
  • MANUAL WORKING INCREASES THE COSTS

OPPORTUNITIES-these are increasing the global at presence it established in UK and even they operate stores all over the global world when the organisation started trading they uses ST. MICHEAL BRANDS the moment the company started about 1,146.000 that worth of merchandise also as a chance of fast growing  business that raise in the  branches all over global world that is a very good sign for the organisation they have the opportunities by divided customers in terms of established small stores that reduce the maintenance of cost and increase the gains as manual power these can decrease when looking at it with mega stores in terms of investment on the publicity that can make it less

TREATS-these business organisation has the threat of losing its scope in the business because of the competition these increase competition in the areas of retailer sector is some very big problems for them such as ASDA, SAINSBURYS LOCAL AND THE TESCO EXPRESS why the Marks and Spencer is still relay on the mega stores

D2: Critically evaluate the impacts that both macro and micro factors have upon business objectives and decision-making.

DEFINITION OF MICRO FACTOR ENVIRONMENT.

Micro factors environment can be defined as environment that is direct contact with business organization that can affect the business activities quickly these micro is also the total collection forces which close to the firm, the micro known as PESTLE analysis.

DIFFERENCES BETWEEN MACRO FACTOR ENVIRONMENT AND MICRO FACTOR HAVE UPON BUSINESS.

To start with there are two types of external business environments micro and macro these factor they are beyond the control of marketers, but it still influences of the decisions of marketing strategy,

THE MACRO ENVIRONMENT are the forces the in a large society and also affect micro environment which included as the demography, economy, natural forces, technology, politics, and culture. macro   factors environment it affects businesses is also known as PESTLE that is.

  • POLITICAL
  • ECONOMICAL
  • SOCIAL
  • TECHNOLOGICAL
  • ENVIRONMENTAL
  • LEGAL

The macro environment is also known as cultural – environmental which is consists of institutions and the basic values and beliefs of group of people so when working with the marketing environment it is very important for the organisation to become proactive.

THE MICRO ENVIRONMENT is known as internal environment of the business organisation that is among the departmentalization department such as management, finance, research and developments, purchased, business operations and accounting all these departments work to make decision with the marketing for example research and the development they make such that can perform and to account by approved of market plans and budget of customer dissatisfaction. They are also referring to for them to resells the physical distribute firms marketing services agencies, and both the financial intermediary. They are also having interest in organisation ability to meet its goals and the ability to possess founds like media public together with the newspapers and magazines that can be published articles for the interest of the organisation and the editorials that can influence the buyer’s opinions.

The influences of the two factors on a business organisation can be internal and external. The external factors that affects the business are:

  1. Suppliers
  2. Customers
  3. Competitors
  4. Public
  5. Market intermediaries
  6. Regulatory

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