Environmental Factors in Business Operations - Marks & Spencer

TASK 1

P1

According to the present business environment, different kinds of companies that are working in different sectors and conducting their operations in an effective manner as well. It has also been found out that main aim of each and every company is to gain more customer base and develop the standard of living if people as well (Aterido, Hallward-Driemeier and Pagés, 2011). The two main sectors that includes public as well as private organisations and their dealings are done to earn better profitability along with providing services free of cost as in NGOs. The comparability is done as follows:-

Basis of Comparison	For Profit	NPO	NGO
Meaning	It can be defined as an association which is being conducted so as to earn profits only. The main set by these kinds of companies is to increase their profits on regular basis and gain more and more customers as well.	It can be defined as that kind of company who is selling gods and services in market but does not have any aim of earning profits or generating more no. of revenue.	This is considered as a non-governing body whose main aim is to do welfare of the society and work for them only so that they can get their rights effectively. These kinds of businesses are normally done by single people only.
Area of Operations	Its area of operations can be both large as well as small.	Limited	Large
Objectives	Their main objective is to attract more no. of customers and gain more amount of money for the company.	These organisations are basically been set up so as to promote art, science and commerce in between people who are not aware of it.	In this, the main aim of the company is to develop the whole society and conduct activities that will help them in functioning in the economy in an effective manner.

There are three major elements which are discussed above with several reasons are as follows:

Public Sector - In these kind of companies, the complete structure of company is being designed by the government and the money which is earned in this sector is being distributed in among the people living this sectors only (Auzair, 2011). Thus has been described that the minimum people required to start a company in this sectors is 7 and the maximum no. is unlimited. Since BBC is also public sector company so they are also conducting their activities as per their norms decided by UK government. They are also considered as one of the bes company of UK.

Purpose – The main purpose of these kinds of companies is to develop their economy and help those people who are not having any kind of employment or source of fixed income (Avramenko, 2012).

Private Sector – These kinds of companies are mainly formed to earn profits in the country and make a strong place in the market as well. They usually have a large market share and they grow at a very fast rate as well.

Purpose – The main purpose for which these kinds of companies are being set up are to identify the needs and wants of the customers and satisfy them by providing the goods and services as per their wish.

Voluntary Sector – These are the type of people in which group of people enters into a agreement with each other so as to achieve their common goal (Adeoye and Elegunde, 2012). Like; Oxfam is also such type of company which is working for the betterment of people in UK.

Purpose – The main purpose of these kinds of companies is to take care of the members of the society in an effective manner so that they can live properly and happily as well.

Legal Structure of the Sectors

Private Sector: The structure that can be created in these kinds of companies are as follows:-

• Sole Proprietorship – In this type, whole operations of the company is conducted by a single person and they are only responsible for all the profits as well as losses of the company (Bar-Isaac and Shapiro, 2013).
• Partnership - In this, two or more people come together and sign a partnership deed so as to do their business together in which all are having an equal share.

Public Sector: The legal structure of these kinds of companies is described as follows:-

• State Government – Here, the company is required to follow all the provisions that was formed by the government and is later on giving out the administration and other items in the commercial sector for the economic development.
• Local government: This kind of Govt. is primarily looking for the necessary constituents for the local commodities along with giving welfare to the society.

P2

It is known to each and every company that market has become so competitive so it requires real efforts by them for conducting their activities in an effective manner so that they cab achieve a higher position in the market and attain growth and development as well. As per the size, companies can be described as follows :-

Private Sector Companies – The companies who are working under this sectors are being regarded as one of the most important part of the economy. It has also been known that Marks and Spencer is operating in the economy of UK since 1884. Size of private companies can be described as :

• Minimum Members- 2
• Maximum Members- 50.

The size of Marks and Spencer can be described as under:

• They are having around 959 stores all around UK and total 1433 in the whole world.

Public Sector companies – In these kinds of organisations, the size and range of workers are being structured on the basis of type of organisation (Boons and Lüdeke-Freund, 2013). The size of public companies are as follows :-