OFFERS Buy 4 assignments and get 1 absolutely FREE!

Unit 6 Business Environment HND Business Level 5


There are many factors which affect business it is essential to consider all the factors so it can be implemented in better and effective way. There are possibilities that due to change in external factors management of company ahs top change their policies too. It is essential to make good and long relations with customer and to compete with competitors. Business environment means surroundings of business. It is essential to perform policies which affect business and this can be effective with change in time (Al-Swidi and Al-Hosam, 2012). As environment changes so change in necessary. It is essential that managers of company ahs to analyze it properly so corrective measure can be taken, which are beneficial for growth of business. There are possibilities that managers have to motivate employees to work under changed environment so corrective measures can be taken. This report is based on based on Marks and Spencer which deals in luxury clothing segment. This company has big image in market and it gets affect due to change in business environment. In this report there is discussion about various types of organizations, their scope, number of workers, etc. And impact of external and inte

Task 1

P1 Different types and purpose of organization

These days scope of business is increasing, so it is essential to perform, activities as per society need. This helps to compete with external parties and achieve goials and objectives. It is essential to know what aim behind office is and then take corrective actions. Due to change in aim there is difference in organizational structure (Bryman and Bell, 2015).






These organizations run for earning profits. They have to regular check demand of society.

These organization does not work to earn profits but to provide services in society. This is effective with the proper involvement of government.

There are some trust which help in severing society. They are formed by mutual understanding of people.

Area of operations

Area of working of profit organizations can be either large or small.

NPO works to provide basic facilities to society, so they large are of operations.

They have small area of operations as the work to serve for specific purpose.


Their main objective is to earn profits and expand their business. This can be done by promoting their brand.

The revenue earned by these organizations are used to serve society only. So their main aim is to serve society.

They are having different factors which affect business in better and effective way. They try to reduce sufferings from society.

Purpose of different organizations is as follows-

Private sector- These are organization which are set to earn profits. In this sector, there are many organizations, so completion increasers. It is one of the effective approaches which can be efficient in performing activities. There are many workers in this business, so their motivation is essential (Christopher and Holweg, 2011). There is business at individual level, partnership level, and company level to achieve targets. Purpose behind having this origination is effective with the help of company. It is essential to earn profit and then expand and earn profits.

Public sector- These organizations are managed by government. These are effective with the help of political party and their main aim is to provide facilities to society. These companies are organized by local, district and central level.

            Their purpose is to improve status of society and this is beneficial for having different changes in society. This helps in improving living of standard of company.

Voluntary sector- These organizations are framed to provide assistance to some specific group of society. Such as child education, Poverty reduction, cancer, etc. are main behind such organization. Revenue they get are used for specific purpose only (Cross and Miller, 2011).

Purpose of this organization is to make strategies which are effective for improving specific group of people. This is voluntary association of people who work for specific reason.

P2 Size and scope of various types of organization

There is different purpose for which company has to achieve work. There is different reason for which company works. It is essential to perform activities to purpose such important responsibilities.

Private company- Marks and Spencer is examples of this organization. In this company there is very government interference and this is effective with the probable changes in business. They are more flexible in their policies as they have created good image in market and compete with other brands. They keep eyes on requirement of society and take corrective actions.

Size- There is requirement of 2 people to set this company and maximum 50 people. They are legally bound by their terms and policies.

Scope- This is the comaony which deals in luxury clothes, home and food products. This is the brand which is effective for company's growth. Annual net income of Marks and Spencer is £ 115.7 Million.

Public company- BBC is examples of this organization. In this organization government has full support and control. These organizations are more reliable and they are not accept changes so frequently. There is no competition, they are market drivers. 

            Size -There is requirement of 7 people to set public company and they are registered under some act (Dibrell, Craig and Hansen, 2011).

            Scope- These organizations are owned by government, so they work in wide span. It is essential that company has to use factors which audit can be performed in effective way. Green paper of BBC prefers ton future aspects.

Voluntary association- Oxfam is examples of this organization. Voluntary organizations are effective with the efforts of few people. They are working to achieve same objectives and serve society.

            Size- There are 15 charitable trusts which are covered under Oxfam. This organization works at large scale in all over the UK.

            Scope- This organization works to improve condition of association. It is essential to know what has to be performed through which welfare of people residing is society is possible.





This is the smallest unit which is set up at initial level and this is effective with the help of family members. This is set up to earn basic livelihood. They get affect with change in external factors of company. There are possibilities that due lack of fund these businesses get affected and close down.

This is at high level as compared to micro level. There do not have shortage of fund but due to change in businesses there are possibilities that they might get influenced and either positive or negative result is get. In this business there is involvement of two or more people. They use their own funds to satisfy financial need of company.

These are big organization and there is competition among this company. They have regularly check what changes are happening in business and then corrective measures has to be taken. They tries to improve standard of company and this affects operations of company. They have good name in market but within same geographical background.

This is the biggest form of organization. In these organizations there are different outlets at various places, so they tries to maker strategies as per location. There are many workers in these originations which are guided by top level management of company. These companies get affected due to change in business policies. Operations of this business are at very large level which provides assistance in achieving targets.


P3 Relationship between organisational functions

Marks and Spencer is big brands in market and it is essential to perform activities in better way. There are possibilities that company has to manage all departments simultaneously to get best results. There are many activities which have to be done to provide satisfaction to so9ciety. In business, it is not essential business environment remain constant for lifelong so regular check has to be done and deliver appropriate orders for concern department (Gharajedaghi, 2011 Kolk, 2016). There are many departments in Marks and Spencer which work to give satisfaction to society. Some are discussed below-

Research and development- This department plays important role and scope of this unit is increased these days. This helps company to know what changes are taking place in society and what need of consumer is so production department starts giving emphasise on it. Research department helps to increase sales and know what society think about brand.

Accounting department- They keep all the records of financial related data. It is essential to perform activities in n better way, so cost reduces and this helps to know how much has to be expanding and what, so various departments are concern about use of resources and optimal utilisation is there (Li and et. al., 2011).

Production department- This department is related with various departments such as accounting, purchase, operations, sales, research, etc. So it is essential to perform activities which help in proper production as per need. There must not be over and dead stock. Change in seasons of different countries has to in mind. R&D department ahs to analyse market and take corrective actions to develop business.

Sales Department- In this department there are many functions which help in increase profits of the company. There is requirement of proper policies through which sales can be increased. They have to contact with various department to know what improvement are need. Accounting and production department are main units which help to assess actions.  In this department, marketing department also plays vital role (López-Gamero, Molina-Azorín and Claver-Cortés, 2011). They have delivered proper and effective features of product and services through which sales get increased.


There are various types of organizational structure which help in know roles and responsibility and proper communication helped to perform activities in effective way. Some of the organizational structure is discussed below-

            Line structure- In this structure there is no change in hierarchy and all workers are at same level (Meiners, Ringleb and Edwards, 2014). This structure is also known as flat culture. There is equal roles and responsibility to workers which does not create dissatisfaction among them.

            Tall structure- There is department levels in this structure. Top level manager, middle level personnel and subordinates are part of this. Middle level personnel creates bridge gap between others. They deliver orders from top level management to lower level. This structure is followed in Marks and Spencer.

            Divisional structure- There is different divisions in company. They act their own . They work to achieve their own targets. In this structure there are possibilities of duplication of activities which affects cost and time in negative way. These divisions are headed by different heads. This structure is also followed by Marks and Spencer.

            Functional structure- There is different functions in organization. In this structure activities are divided on the basis of functions of concern department. It is essential to perform activities ion better way so there is no hault for further departments. There is optimal use of resources and there are no chances of overlapping and fraud in actions.

Task 2

P4 Positive and negative impacts of macro environment upon business operations

Macro environment of business means to elements which are not related to related to internal company and this affects business of organisation. There are possibilities that management of company has to make alterations in plans and policies so this helps in analysing situation (Nishitani Kaneko, Fujii and Komatsu, 2012). There are different changes which ahs to taken care by employees as well as management of company. These factors can have positive or negative impact on business so it is essential analyse them carefully this helps to perform activities in proper and effective way. Organisation has to frame strategies which boost company performance. These factors are not in control management of Marks and Spence but regular analysis must be there so changes can be made effectively.


Positive Impact

Negative impact


This factor is related to government which is one of the main components of business. It is essential, to know what can be done to reduce governmental interference. There are different changes ion policies are taken by government so it is essential. To adopt them. This helps in running business in proper way and there are less possibilities of fraud in business.

There is negative impact of this too on business. Due to frequently change in government norms, management of company has to make alteration and this affects their concentration from main goals. Excess governmental interfere affects business in negative way.


There is positive impact on business as due to change in trend company ahs to make dresses and this helps to give more satisfaction. This helps to be an organization with customer oriented.

Marks and Spencer deals in fashion industry, so due to change in environment there is requirement of change in clothes as per trend, fashion, country, values, occasions of company. So there are possibilities of change in factors which are related to company’s growth.


This means there are factors which affect business which are part of society such as age, sex, etc. Of customer. This helps to provides goods and services to every group and section of society. Management of company has to be effective which help in analysing changes and take corrective actions.

Due to change in social factor organisation ahs to make policies, due to lack of communication there are possibilities of wrong implementation. This has bad impact on business and its growth.


This factor is beneficial as this helps in improving efficiency and reduces defects from product and services. Working under changed environment is effective for employees also as they are working under upgraded technique.

Change in technology means there is need of atraini8ng so cost is involved. It is not necessary that employees are ready to work under new technology, as they have fear of loss of job.


There is requirement of various documents so they can perform activities in better way, so it is essential to learn and have proper knowledge about it.

Due to change in legal factors there are confusion among workers and regular change may frustrate employees and this affects their efficiency at work place.


This factors is essential as finance is blood of common. It is essentials to adopt means of source which is best and effective for company. This helps in reduction of cost of sources of funds.

If fiancé is not readily available then, there are possibilities of negative impact on business. This affects operations of company and has negative image in market. Employees might get dissatisfied.

P5 Internal and external analysis to identify strengths and weaknesses of Unilever

Marks and Spencer has good brand Image in market. It is important to perform activities through which they can achieve targets, company has to perform activities through which they can analyze market and take fruitful actions. SWOT analysis helps to know correct and proper analysis is effective with proper guidance (Onetti, Zucchella, Jones and McDougall-Covin, 2012). In company activities are planned by top level co no any and it is not effective by joint effort of company. It is not possible that company does not give emphasize on positive points but through this they came to know why they good image in market and how can be improve. This improvement has direct impact on profits and production of company. Expansion is possible when company can analyze market and then tell about change in business factor, so top level management has to perform in better way.

SWOT means strength, weakness, opportunities, threats of company. These factors are effective in improve activities and this helps to achieve targets and proper way. There are many employees in Marks and Spencer so it is essential to analyst their need and provide them what they want. It is essential to improve positive points and then actions; this provides guidance to achieve targets. There is synchronization in activities. There are various purpose for which has to change strategies. This is effective with help of top level management and proper guidance to medium level; management. They help to deliver safe and useful data with subordinate’s which is effective in growth of company (Palo and Tähtinen, 2011). Swot analysis of Marks and Spencer are discussed below-


This is one of the biggest element in SWOT which help in performing activities in better way. Marks and Spencer are less costly as compared to other company; they have range of employees which help in achieving targets and provide best achievment of targets. It is effective to analyze market, which perform actions to research and development and take appropriate action. They analyze market regularly so this helps to know what improvements can be done and this helps in analyzing situation and this has positive in pact on business. timely training of workers are some of the best technique which company to perform activities in better way.


 Due to global reach they have to take care of their policies. There are many employees and this affects business operations because in this there is lack of proper motivation and leadership (Pham, Segers and Gijselaers,2013). Cost of product and services of Marks and Spence are more so this brand is not preferable by common people. Powers are centralized by top level management of company so there are possibilities of dissatisfaction above employees. They have less and ineffective approach to resolve customer’s problems so this affect image of company in market. Different factors might get affected but due to change in policies there are possibilities of change in business factors. This weakness must be considered to keep growing business.


These are some factors where company can perform well. This helps to grow business and grab new opportunities which are effective for business. They have to enhance their business through online sources too. They must launch less priced clothes so it helps them, to create known and effective image among all group of people. Change in business policies is effective and discounts help them to increase sales. Makers and Spencer operates in different part of company so it is essential to perform activities in way through which they can provide satisfaction to need of society. It is essential to give more emphasize on research and development. In UK there must be cash back, discount policies at the occasions of New Year, Christmas, etc. They must make their outlets trendier. They can also adopt tailor made services and delivery must be prompt and effective.


 Threats are the factors for which has fear in their mind. It is essential to perform activities through company can reduce effect of being out of run. In clothing sector there is much competition, there are many brand which exist this is one biggest threat which affect business. Top avoid this sector thee is requirement of proper and effective knowledge which help in analyzing market and take actions through which company came to know about areas of improvement.


From the above discussed SWOT analysis there are possibilities of change in business factors which helps in their growth and effective brand in industry. Strength and weakness are related within organization but opportunities and threat are related outside company. There are possibilities that company as to measure these techniques and then take actions as per requirement of market (Pikka, Iskanius and Page, 2011). It is essential that Marks and spanker has to alter their policies so thois affects business and proper communication must be there in organization so there are less possibilities of miscommunication among workers.

P6 Interrelate strengths and weaknesses with external macro factors

There is detail description about internal and external factors with the help of appropriate techniques which are- SWOT, PESTLE analysis. There are many changes which are talking place in business and one change has affect on business in different way. There are many activities which are interrelated to one another (Scheer, 2012). This is effective with the probable change in policies. There are various factors which can be possible by joint efforts of workers, so motivation of workers is necessary. There are different factors which affect business in various ways, so this can be effective in positive or negative way. As change in various strategies, it must be communicated top employees to so they can work accordingly. There are possibilities that one factor has impact on other too, so it is essential to perform activities after proper planning.





Organization has to make chances which are effective with proper change in terms and conditions (Teece, 2012). Talking about change in policies is effective only when there is change in actions.  Different policies which can be effective through different policies. It is effective with joint efforts of company.

Marks and Spencer works in various parts of country so change in political party is weakness for company as they have to think again and again about plans and policies. As per change in policies so it is essential to analyze market and take corrective actions.


Economic factors also one of the important components which affect business. There are possibilities that due to alteration in plans and policies positive or negative result can be occur. This helps person to recognize sources and this helps in perform energy to gain effective.

This can be dine with adopting flexibility. So manager must motivate employees to give their so better situation can be achieved (Wheelen and Hunger,  2011). There are many competitors in cloth and dressing sector, this can be proper formed in proper way.


Marks and Spencer of company of clothing so due to change in trend there is requirement of latest dress, this affects business so proper stock maintains is essential. is change in that of people residing at different place so it decision must be related to their choice, this involves cost and affects business positively.

Marks and Spencer can achieve targets by taking advantage of active participation by employees of Marks and Spencer. These techniques have positive impact and businesses growing though proper planning.  So they ave to consider changes effectively.


Technological change is beneficial for company but in real it affects to. Technological change is beneficial for company but in real it affects to. It is not essential that company has to make accordingly.

 It is not essential that company has to make accordingly. This helps to reduce defects and this helps to make workers aware of new techniques.


Governing body is one element which helps in running business in better and effective way.

There is changes in legal factors of business, so this is important for managers of Marks and Spencer to modify policies, this affects their concentration from other important subjects.


 Customers, stakeholders help to know market and then take actions in better and positive way. Due to change in objective company has to alter their internal policies too with which it affects business in n effective way (Zsambok and Klein, 2014).

There is change in environment so Marks and Spencer has to plan their clothing stuff and accordingly. There are possibilities of dead or old stock which affects business negative. This affects growth and profits of company.


PESTLE talks about external factor and SWOT talks about internal factors, so it is essential to perform actions after analysis.   There make policies which are beneficial for company (Welter and Smallbone, 2011).

There are different factors which are to be undertaken and this helps in achieving targets in better and effective way. PESTLE and SWOT rate two factors which helps in achieving targets in positive way. It is essential that company has to perform activities through which they can check business operations and this is effective with the help of political factor.


Business runs in society so it is essential to perform activities in better and effective way. There are possibilities that employees are not ready to work under changed environment which affect business policies. So sometimes top level management has top alter their policies. Business gets affected due to external as well as internal elements of business. Company has to judge future policies and then take corrective measures. There are various policies which can be effective with the help of employees and employer. SWOT is the best technique which is effective in knowing areas where improvement is required and this helps to perform activities in positive way. Employees are one of the main components in establishment so there views are also important. This is result of PESTLE analysis. Organizational structure has to be considered so this affects business. Functional, divisional, etc. are some common structure which helps in working effectively.


  • Al-Swidi, A. K. and Al-Hosam, A., 2012. The effect of entrepreneurial orientation on the organizational performance: A study on the Islamic banks in Yemen using the partial least squares approach. Arabian Journal of Business and Management Review (Oman Chapter). 2(1). p.73.
  • Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
  • Christopher, M. and Holweg, M., 2011. “Supply Chain 2.0”: managing supply chains in the era of turbulence. International Journal of Physical Distribution & Logistics Management. 41(1). pp.63-82.
  • Cross, F. B. and Miller, R. L., 2011. The Legal Environment of Business: Text and Cases: Ethical, Regulatory, Global, and Corporate Issues. Cengage Learning.
  • Dibrell, C., Craig, J. and Hansen, E., 2011. Natural environment, market orientation, and firm innovativeness: An organizational life cycle perspective. Journal of Small Business Management. 49(3). pp.467-489.
  • Gharajedaghi, J., 2011. Systems thinking: Managing chaos and complexity: A platform for designing business architecture. Elsevier.
  • Kolk, A., 2016. The social responsibility of international business: From ethics and the environment to CSR and sustainable development. Journal of World Business. 51(1). pp.23-34.
  • Li and et. al., 2011. Towards the business–information technology alignment in cloud computing environment: anapproach based on collaboration points and agents. International Journal of Computer Integrated Manufacturing. 24(11). pp.1038-1057.
  • López-Gamero, M. D., Molina-Azorín, J. F. and Claver-Cortés, E., 2011. Environmental uncertainty and environmental management perception: A multiple case study. Journal of Business Research. 64(4). pp.427-435.
  • Meiners, R. E., Ringleb, A. H. and Edwards, F. L., 2014. The legal environment of business. Cengage Learning.
  • Nishitani, K., Kaneko, S., Fujii, H. and Komatsu, S., 2012. Are firms' voluntary environmental management activities beneficial for the environment and business? An empirical study focusing on Japanese manufacturing firms. Journal of environmental management, 105, pp.121-130.
  • Onetti, A., Zucchella, A., Jones, M.V. and McDougall-Covin, P.P., 2012. Internationalization, innovation and entrepreneurship: business models for new technology-based firms. Journal of Management & Governance. 16(3). pp.337-368.
  • Palo, T. and Tähtinen, J., 2011. A network perspective on business models for emerging technology-based services. Journal of Business & Industrial Marketing. 26(5). pp.377-388.
  • Pham, N. T., Segers, M. S. and Gijselaers, W. H., 2013. Effects of work environment on transfer of training: empirical evidence from Master of Business Administration programs in Vietnam. International Journal of Training and Development. 17(1). pp.1-19.
  • Pikka, V., Iskanius, P. and Page, T., 2011. The business enabling network–a tool for regional development. International Journal of Innovation and Regional Development. 3(3-4). pp.324-344.
  • Scheer, A. W., 2012. Business process engineering: reference models for industrial enterprises. Springer Science & Business Media.
  • Teece, D. J., 2012. Dynamic capabilities: Routines versus entrepreneurial action. Journal of management studies. 49(8). pp.1395-1401.
  • Welter, F. and Smallbone, D., 2011. Institutional perspectives on entrepreneurial behavior in challenging environments. Journal of Small Business Management. 49(1). pp.107-125.
  • Wheelen, T. L. and Hunger, J. D., 2011. Concepts in strategic management and business policy. Pearson Education India.
  • Zsambok, C. E. and Klein, G. eds., 2014. Naturalistic decision making. Psychology Press.
Download Full Sample
Cite This Work To export references to this sample, select the desired referencing style below:
Copy to Clipboard
Copy to Clipboard
Copy to Clipboard
Copy to Clipboard
Assignment desk. [Internet]. Assignment desk.(2020), Retrieved from:
Copy to Clipboard
Boost Grades & Leave Stress

Share Your Requirements Now for Customized Solutions.

Lowest Price
USD 7.03

Delivered on-time or your money back

100+ Qualified Writers

For Best Business Environment Assignment Help

View All Writers
FREE Tools

To Make Your Work Original

  • Plagiarism Checker

    Check your work against plagiarism & get a free Turnitin report!

    Check Plagiarism
  • Reference Generator

    Get citations & references in your document in the desired style!

    Generate References