M&S and The UK Business Environment

free essayThe UK business environment is one of the most attractive, competitive and forward-looking places in Europe. One can say that the UK government fosters the development of business by means of encouraging private organizations such as M&S, for example. The World Bank ranking defines the UK as the place efficient for running a business. As a result, there is nothing strange why M&S has become one of the most profitable companies in Europe.

The Organizational Purposes of Businesses

1.1. The Purposes of Different Types of organization

There are different types of organization that have particular marketing strategies, purposes and forms of ownership in the UK. One can distinguish the following types of companies operating in the UK: Private Limited Company (Ltd), Public Limited Company (Plc), Partnership, Limited Liability Partnership (LLP), Guarantee Company and Sole Trader. The purpose of Partnership is to gain profits through the collaboration with the customers and partners as this helps to minimize appearing risks. Sole Trader has a purpose to offer beneficial terms to customers, partners and suppliers. Public Limited Company (Plc) is favoured by those companies that work towards satisfying public interests and needs. Their purpose is to increase the market share, maximize sales and profits and achieve the growth. Limited Liability Partnership (LLP) strives to work under mutually beneficial terms with their customers and partners; however, these relations can be risky. Guarantee Company is not a profitable kind of organization. It conducts benevolent works, engages in charity activities, helps the disabled people and obtains funds through donation.

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The Extent to which M&S Meets the Objectives of Different Stakeholders

M&S consists of many stakeholders. These are society, government, customers, owners, employees, indirect and direct stakeholders. Direct stakeholders influence M&S directly; therefore, they have more priorities as compared with others. Customers, employees, managers, and owners belong to the direct stakeholders. The impact of the indirect stakeholders is evident to a certain extent. The competitors, society, environment, and government belong to the indirect stakeholders.

M&S provides safe and healthy working conditions for their employees. This organization attracts human resources through the additional bonuses, salary, technical supports, training, and learning. The owners of M&S collaborate with the different stakeholders in a pursuit to ensure efficiency and growth of their organization. As to customers, they serve as the driving forces for the development of high-quality products and ethical catering. After sale services, an efficient delivery policy, and tolerable attitude are integrated into company’s policies in order to satisfy customers’ demands. The government controls the procedures for paying taxes and obeying the laws and regulations by M&S. Moreover, the government is responsible for regulating the audit of M&S and their publishing of an annual report of revenues and sales. For a society, M&S keeps the environment healthy, follows the ecological regulations and serves as a helper in satisfying human demands (Akkaya 2000).

1.2. Responsibilities of M&S and Strategies Employed to Meet them

M&S has many responsibilities and strategies to meet them. The responsibilities of the organization include producing high-quality products supplemented with respective services to the society. Company also engages with essential operations such as diversification, market development, and market penetration. To meet all these responsibilities M&S uses strategies and analytical tools, such as Ansoff matrix, model of the structure, coordination and duty allocation (Akkaya 2000).

M&S has a model of the structure of its activities that includes the plan of actions and strategies for fulfilling them. Moreover, this structure shows the resources used for running the company. Laws and policies regulate this responsibility. Allocation of duties is another responsibility to define what the employees should do. Furthermore, M&S has the entities for the coordination of these responsibilities. To operate efficiently, M&S should correlate all these entities. They should coordinate the human resources, their productivity and performance. The strategy of M&S is Ansoff matrix that one uses for the market penetration, market development and diversification and it thus aids towards meeting all the responsibilities and objectives of M&S. Market penetration is a way to expand at the global marketplace. Market development is a way of finding new customers. Diversification is the implementation of new products and services (Ferrel & Hartline 2010).

The Nature of the National Environment of the UK

2.1. How Economic Systems Attempt to Allocate Resources Effectively

Economic systems consist of many stages and procedures. These are organizing and motivating labour, circulation of the resources, distribution and manufacturing. Without a doubt, the economic systems influence the development and operating of the organization at the market. One should mention that global economic system is the unity of the command economic system, traditional economic system, mixed economic system and the market economic system.

Traditional economic system concentrates its attention on the manufacturing of goods and services and the necessary resources. A market economic system presupposes the spontaneous activities. Command economic system is regulated by the government. Mixed economic system concerns the collaboration of the organization with the government at all levels, and M&S operates in this economic environment. The company has presence on the markets in the USA and Europe. M&S interact with their customers to define their future perspectives (Gertner 2001).

2.2. Impact of Fiscal and Monetary Policy on Business organizations and their Activities

The monetary policy is also one of the factors that defines the success and efficiency of the organization. The monetary policy includes money supply and determines the expenditure in the economy. Money demand, money supply and issuing bonds are the components of monetary policy. As a result, the efficiency of the monetary policy defines the further achievements of any business. One should mention that the economic system of the UK depends on the fiscal and monetary policy. Borrowing, taxation, sale and consumption are the factors that define the fiscal policy of the UK (Barney 2012).

2.3 Evaluation of the Impact of Competition Policy and Other Regulatory Mechanisms of the Activities of M&S in the UK

M&S operates in 50 locations in the world and employs 82, 000 people that serve to ensure both the unbelievable efficiency and high competitiveness of this company. One can define innovation, trust, service, quality and value as the driving forces of the company’s culture. M&S differs from other organizations thanks to its diversity and strategic marketing. Food and general merchandise are the main products of the portfolio of M&S business. Moreover, e-commerce activities assure company’s ability to adapt to change. This company is a leader in womenswear, menswear and lingerie. M&S perceives TESCO (food) and Next Company (clothes) its main competitors. However, M&S is more competitive thanks to diverse market and product range (Amato 2004).

One can refer the direct and direct stakeholders, strategic goals, leadership to the regulatory mechanisms that are crucial for the activities of M&S. Innovation and development of new products and services can be the driving forces that will help to win other markets. The business and corporate strategies of M&S prove that the organization has chosen the right direction of their business. Collaboration with world manufactures and suppliers means that M&S is not afraid of competitiveness and is able to win new customers. M&S orients on the buyers and their needs, competitors and their product strategy to move forward (Gertner 2001).

Organization Behaviour in the Market Environment

3.1 How Market Structures Determine the Pricing and Output Decisions of Businesses

The various structures and types of market determine the output and pricing decisions of the organization. Pricing decisions are different in market structures. Moreover, they are independent and can be changed. One should mention that if the market is competitive a single company cannot bring changes or influence its price strategy. This impact is tiny to the point that one can hardly notice it. As a result, the company should always estimate the market prices, and only then establish their own prices. However, if the market is not competitive, the organization can influence it and set their own prices. Moreover, the organization can enjoy the benefits of monopoly if it has a lot of customers (Barney 2012).

3.2 Market Forces Shape Organizational Responses in the UK

Market forces are the interactions between demands and supplies in the market. Organizational responses are the reactions of the company to the differ conditions of the UK economy, and M&S also relies upon these responses. One should mention that the market strategy can determine the quality of the organizational response. It is recommended to conduct market researches for exploring the market and its processes and conditions. Moreover, the organization should know the level of the supply and demand to set price of the service or product. M&S cannot operate efficiently if it does not know a marketing situation. However, indeed, M&S is sensitive to the processes and changes at the UK market; therefore, it is efficient and profitable (Amato 2004).

3.3 Judgment of How the Business and Cultural Environments Shape the Behaviour of M&S in the UK

Business environment of M&S includes processes, activities and operations of this organization. Moreover, cultural practices determine internal business environment of M&S. One supposes the cultural environment is at a core of the business practices of the company. For example, if M&S operates in England, it should maintain some traditions and customers of this country. For example, the clothes should match the British style, food should comply with the traditions of the British cuisine. The motivation activities and marketing strategies are defined by the cultural environment. The employees are inspired by the well-maintained cultural practices, and their performance and productivity increase. If M&S wants to operate in other country, it should take into consideration the respective cultural peculiarities (Gertner 2001).

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Assessment of Global Factors Shaping Business Activity in the UK

4.1 Significance of International Trade to UK Business Organizations

International trade is buying and selling products in other countries. The basement of the international economy is international trade. UK is one of the leading countries in the world economy; therefore the international trade has a great impact on its policies. International trade benefits development of the economy, politics and international relations with other countries. M&S operates in many countries; that is why peculiarities of international trade are examined under high scrutiny. Besides, international trade benefits the development of international business strategy.

International business strategy of M&S is defined by many factors. These are human resource management, strategic management, collaboration with other companies and culture in which the organization operates. However, the development of international business strategy presupposes real difficulties and barriers for the company, and all of them are concerned with cross-cultural differences. Culture plays a crucial role for business and management of the company; that is why culture is considered when designing company’s international business strategy. Language is the bridge between two cultures (for example, British and German). Language helps to understand cultural differences and overcome barriers that may occur between international partners.

International business strategy of M&S is defined by many factors. These are human resource management, strategic management, collaboration with other companies and culture in which the company operates. Speaking about opening of M&S stores in French market, it is necessary to take into consideration its culture and peculiarities of the clothes traditions. Frenchmen pay a lot of attention to their comfort, which is why they prefer clothes of the high quality.

However, the development of international business strategy presupposes real difficulties and barriers for the company and completely all of them are concerned with cross-cultural differences. For example, due to diverse traditions and customs, British and German demands to clothes are different. First of all, British people are more conservative and German people prefer comfort that is why the M&S should take into consideration these peculiarities (Scott 2011).

4.2 Analysis of the Impact of Global Factors on UK Business Organizations

The global factors are crucial in the impact on UK business organizations. The changes of global economy influence UK business organizations especially when they are negative like economic crisis, inflation, unemployment. Political and governmental activities should strive to foster international business because they are the basement for the development of international relations.

The general environment of M&S is influenced by global, demographic, political, economic, sociocultural, and technological factors. Legal factors are related to paying taxes and following all governmental laws concerning ecology and environmental protection. The company provides the security for its clients by offering shipping services that embrace safety and insurance. It means that M&S protects customers’ rights when they use its products. Following the legal requirements is the basis for a good image of the company. In the UK, the governmental regulations are crucial, and that is why M&S should collaborate with other legal institutions.

Economic factors of M&S refer to the economic state of the country and such phenomenon as an economic crisis, Gross Domestic Product and unemployment. However, if the economy is at the peak of its development, it can be a driving force for selection of human resources and gaining of high profits. Another way to increase profits is to operate at the global market and operate in the USA and the UK markets.

4.3 Evaluation of the Impact of Policies of the European Union on UK Business Organizations

UK business organizations are influenced by policies of the European Union as it is the part of it; therefore UK has to follow regulations, laws and rules of the European Union. As a result, the changes in economy and politics of EU have a direct impact on UK businesses. They should follow the currency system and try to collaborate with the organizations of EU.


In order to become more successful, M&S should cooperate with other companies, create new products and services, decrease prices, and increase quality. M&S should cooperate and collaborate with other organizations implementing similar products. Presentation of new products and services will be beneficial for M&S and involve new segments of customers. M&S should reduce the prices for its services as high prices discourage the customers. The company should work on improving the quality of its products and services as high-quality products and services are always competitive in the market.

Business environment of the UK benefits the development of growth of M&S. First of all, the UK government helps the private organizations to move forward and occupy the leading positions in the market. M&S meets the objectives of the direct and indirect stakeholders in full extent. The responsibilities of the organization include producing high-quality products and serving the society. M&S operates in mixed economic system, and this also is a key factor of its efficiency. Moreover, M&S depends on the fiscal and monetary system of the UK and their competitors.

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