Strategic Factors Affecting SWOT Analysis of Marks and Spencer

BM461 Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Strategic factors affecting the Swot analysis..............................................................................3
Key drivers impacting operational analysis of chosen company................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strengths and weaknesses are the internal factors of an organisation that not only help
them in protecting the market share in existing industry but also penetrate into new market
industry when required. Based on the PESTLE Analysis , Marks and Spencer have been a
successful company with good capital and resources. In this present report discussion about
SWOT analysis along with its impact on operations is covered.
Strategic factors affecting the Swot analysis
SWOT analysis
Strengths - Expansion of new projects requires good resources and strong cash flows.
Marks and Spencer have successful record of new product innovations, also has been integrated
to various technology companies for streamlining its operations and building a strong supply
chain.
A strong brand image made organisation expand its portfolio into new categories of
products such as automation activities enhancing product quality and enabling the firm in scaling
up and down demand conditions in the market economy (Hajizadeh, 2019). Marks and Spencer
have been executing many new projects that resulted in good returns on the organisation's capital
expenditure opening up new streams of revenue generation. These internal strategic factors
discussed above became a strength to the chosen company in diversification of economic risk
cycle and building of new revenue streams.
Weaknesses- Some areas the selected company can improve upon can help in strategic
positioning and add up as a competitive advantage to the organisation. As per the vision of the
company, marks and Spencer should invest more into new technologies for proper integration of
processes carried on. Facing difficulty in merging firms having distinct work culture is a
challenge and weakness at the same time (Jahani, Rostami and Shabanzadeh 2016). Financial
planning of Marks & Spencer is also said to be improper needs more efficiency. It includes
analysis of company's current asset ratio, liquid asset ratio for using cash appropriately in future.
Since the chosen entity is facing difficult challenges with new entrants entering the market
leading to loss in market shares in niche categories.
The other two factors affecting the market are the external components that impact the
functioning of chosen company in various ways are mentioned in following points: