Strategic Analysis of Marks & Spencer

This assignment requires a comprehensive strategic analysis of Marks & Spencer (M&S) using the SWOT and PESTLE frameworks. Students must identify M&S's strengths, weaknesses, opportunities, and threats, as well as analyze the political, economic, social, technological, legal, and environmental factors influencing its operations. The analysis should also encompass competitor assessment and strategic recommendations for M&S based on the identified internal and external factors.

Business and Business
Environment

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P 1 Different legal structure of the organisations........................................................................1
P 2 Features of such businesses..................................................................................................2
P 3 Analysing the relationship between various industrial functions in context with achieving
the targets....................................................................................................................................4
P 4 Analysing the favourable and unfavourable impacts over Marks and Spencer's..................6
P 5 Analysing the internal and externals environment of Marks and Spencer's.........................8
P 6 Determining the relationship between strength and weaknesses of Marks and Spencer's
with its external macro factors..................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INDEX OF TABLES
Table 1: Business structure and functions.......................................................................................4
Table 2: Swot analysis of Marks and Spencer ..............................................................................10

ILLUSTRATION INDEX
Illustration 1: PESTLE analysis and essential elements..................................................................6

INTRODUCTION
In order to gain the adequate success in the market there is need to evaluate the internal
or external structure of the or functioning or the business. In the present report there will be
analysis based on the operational functions for Marks and Spencer's as a private ownership
organisation. Thus, this business will be compared with the other relevant organisations such as
Child Support Agency as a Public structure company and Scope as the Charity organisation.
Hence, the also shed some lights over strength and weakness of the organisation with the help of
various techniques such as PESTEL and SWOT analysis. However, with the help of such
analyses the managerial professional in the organisation will be beneficial in gaining the
adequate informations about the demand, wants, needs of consumers as well as the strength of
organisation to meet such requirements.
P 1 Different legal structure of the organisations
To start a business there is need to analyse the strutter or framework of the business must
be choose by an individual. They must be aware with making the adequate analyse over the
purpose of stating a business and the consumers or buyer as well as market environment must be
determined. However, the main aim of the business is that they facilitate the trade and commerce
for goods and service which in consideration with the monetary benefits. Thus, Marks and
Spencer's in UK is the private ownership firm and serve the society with its wide range of
products (Ahmed, 2016). The company deals in presenting the adequate quality of the goods and
services such as food article, household products and lot more. Hence, there are some common
types of legal structure of the organisations such as:
Private ownership: The legal structure of this kind of organisation is that this are
privately owned by a single or more than two owners which in turn makes the framework of the
business operations to be done in the premises. Thus, such segmentation are mainly known as
various nature of firms such as Individual group, partnership, sole proprietorship, limited liability
company, small scale enterprises etc. thus, the main aim or the organisation is that designing
products and services which reach to the maximum satisfactory level of the consumers
(Shamsuzzoha and Helo, 2017). However, with such business operations the firs are having
adequate growth in the marketing environment as well as they could become to retain the
maximum amount or profitability as well as have the adequate share value in the market. Hence,
1

the revenue gathering of the entity can e done with the help of investment made by shareholders
or others stakeholders of the organisation. There will be other sources on which the firm could
become able to gain the adequate capital gathering such as Loans, grants, person savings or the
owners as well as through the business operations (Pezzotta, Rondini, Pirola and Pinto, 2016).
Thus, with the help of such operations there will be adequate revenue gathering which in turn
make them able to investment in their operational activities such as production, remutation to
employed as well as in research and development.
Public Ownership: The nature of such business organisation is that, these firms are
owned by the legal authority in the country such as central, state and by both the government in
equally proportion. Hence, the revue gathering of such firms will be with the help of operational
activities such as trade and commerce as well as from the tax collected by governmental bodies.
The main motive of such organisations is that they make products which are designed for serving
the public at large as well as facilitating high quality of goods and services (Schulte, 2016).
Thus, it has the maximum shares of government in the capital structure as well as the chair
persons or board or directors are appointed by the governmental bodies in the country.
Voluntary organisations: these organisations have the framework which are decided by
the owners or the group of individual which are known as volunteers and they made efforts to
accomplish the business purpose. Thus, these are known as Trade association, unions,
environmental group, charity organisations, professional associations. Hence, they usually
generate funds from the public collections, grants from government, donations and the savings of
the group members (Wood and et.al., 2016). Their main motive is to improve the society's living
standard as well as educating them for the fruitful growth of the environment or society.
P 2 Features of such businesses
Basis Private Public Charity/Voluntary
Organisations Marks and Spencer Child Support
Agency
Scope
Background This organisation is
the multinational
This organisation was
launched on 5 April
These and public
wealth organisation
2

retailers which mainly
deals in the UK and
relevant market. It was
established in 1884 in
Leeds by Thomas
Spencer and Michael
Marks.
1993 which follows
the implications of
Child support Act
1991
stablish to improve the
standard level of
society in England.
Thus, it was launch in
1951 by Eric Hodgson,
Dawson Shepherd and
other social workers.
Ownership More than 40% of the
shares are presented in
the market and the
organisation is owned
by Thomas Spencer
and Michael Marks
It is publicly owned
and supported by the
child support act,
1991.
Founded by Eric
Hodgson, Dawson
Shepherd, Alex Moira
and social workers.
Scope The business has more
than 1400 stores in the
world as well as
operating in various
nations.
Generate funds of
children welfare.
Helps in improving the
expansion services for
the people who are
facing the Cerebral
palsy.
Vision Create the unique
identity in the retail
businesses.
To protect the children
from any health and
educational obstacles.
Helps society to over
come such problems
and diseases.
Mission Produce the
satisfactory level of
goods and services to
people.
Provide adequate
funds to protect the
child from any disease
and have the
nutritional growth as
well as improves the
educational knowledge
Removal of such
disease in the
Products and services It mainly deals in Facilitate the funds for Facilitating health care
3

selling the food and
beverages, clothing
and household
oriented goods.
well being and
appropriate brought up
of children as well as
giving them the
appropriate knowledge
and education.
and medical facilities
to all age group such
as child, infant, adults
and elders.
Stakeholders There are various
investors, consumers
and directors of the
organisation which
helps in generating the
revenue.
Governmental grants
and tax collection is
the main source of
revenue gathering so
the government is the
main stakeholder of
the firm.
Governmental grants
as well as donations
from the society.
Table 1: Business structure and functions
P 3 Analysing the relationship between various industrial functions in context with achieving the
targets
In accordance with handling all the operational areas of the business there is need to
make the collaborating and coordination between various functional activities of the business
(Chelladurai, Radzi and Daud, 2017). Thus, the duty of managers and other operational heads is
to make the adequate balance in all the departments as well as maintaining the costs and
expenses of the business.
Production: the managerial professionals as well as accounting executives in the firm
need to maintain the production process of the firm. Thus, it can e easy and helpful as if they go
for recording all the transactions as well as maintain the books of accounts. Thus, there can be
use of such techniques in making the adequate changes in the business operations (Human, Bick
and Singh, 2016). However, Marks ad Spencer needs to monitor the requirements in the market
as well as the cost of investment they made in such production functions.
Research and development: The main utilisation of the funds are consumed by Research
and development departments. Thus, it is due to preferences and choices of the buyer are need to
4

be analyse by the managers of organisation which in turn make them able to produce the goods
and services which are satisfactory to them (De Vries and Van der Poll, 2016). Thus, Marks and
Spencer need to examine the current trends, pricing policies as well as choices of buyers on
which they could become able to make the strong decision which in turn helpful for gain the
profitability.
Marketing: promoting the brand is the prime requirements of by businesses as it helps in
creating the unique identity in the market as well as facilitate the adequate amount of consumers.
Hence, with the help of such technique the selling and profitability of the brand will increase as
well as consumers are becoming able to know the various products and services which are being
offered by the organisation (Ahmed, 2016). However, Marks and Spencer need to make the
prefect marketing strategy theta helps in creating the brand identity as well as attract the
maximum numbers of stakeholders to the firm.
Human resource management: For every operational aspect there is need to manage the
workforce requirements in the organisation. Thus, it includes the worker's remuneration,
commission, bonuses as well as various allowances which in turn helps in motivating them to
perform well in the firm. Hence, in the consideration with this responsibility Marks and Spencer
will be beneficial in having the adequate outputs or results from the business operations in the
premises (Shamsuzzoha, and Helo, 2017). Supervisors and managers will be helpful in
motivating the staff to make the efficient efforts which in turn helps in enchaining the
productivity, sale and then revenue gathering.
Auditing: A regular inspection of the company's accounts and financial statement will be
beneficial for the business in analysing the actual growth of the business in the markets. Thus, it
will help the managers in decision making such s planning the budgets, costs examinations well
as monitoring the investment of profitable gains of the business. It can be said that with the help
of such tools the business would become financial strong as well as make the adequate changes
in the operational activities of the business. Hence, Marks and Spencer must appoint the team of
accounting professional as well as install various software which in turn help in making the
proper record of all the transaction and sales made during the period (Pezzotta Rondini, Pirola
and Pinto, 2016). Thus, such information gathering will help the organisation in having the
strong capital structure.
5

P 4 Analysing the favourable and unfavourable impacts over Marks and Spencer's
The operational activity of this organisation has been influenced by various macro
environmental obstacles. Thus, such factors influences the profit gathering as well as capital
structure of the firm (Islam and Mamun, 2017). These factors have the positive or negative
impacts upon the operations activities of the business as well as the influences incurred by Brexit
and inflation had also affected the marketing environment of UK. However, it can be understand
by analysing the Pestle analysis over Marks and Spencer. Thus, such analysis will help the
organisation in making the adequate efforts to improve the productivity as well as maintaining
the reliance in consumer's mind. Hence, it can be determined as follows:
Illustration 1: PESTLE analysis and
essential elements
source: (Moro Visconti, 2016)
Political: In terms with making the adequate marketing development in UK there can be
various factors which influence the operational activities of Marks and Spencer. However, it can
be understand with the help of various legal operations and obstacle faced by this business due to
impact of Brexit. Various free trade agreements and European integration as opened the market
in Europe to facilitate the trade and commerce for companies from England. Thus, in these
regards M&S have developed the market for constantly dealings in the industrial relationship and
resolving the issues of labour laws (Marks and Spencer Internal and External Factors, 2015).
Hence, the impact of Brexit over the organisation is that there has been increase in the prices of
commodities as well as the inflation in the UK environment which in turn affecting the sale and
profitability of the business.
6

Economical: There will be various economic factors which in turn influence the
operational activities of the business such as changes in the loan interest rates, currency
exchange rates as well as the market conditions such as inflation, recession etc. Hence, these are
the main issues which are need to be observed and overcome by the professional mangers in
M&S. However, as the financial crisis over UK and relevant countries in 2009-2011 which in
turn affects many business as well as various SME were collapsed and comes to the stage of
Cessation and becomes tough for the survival of the businesses (Mauree and Geneletti, 2017).
Social: This segments affected many organisations is their business operations such as
various in the culture and social environment as well as choices, preferences and tastes of the
consumers. However, Marks and Spencer is operating in various nations and at different
locations it has impact of various cultural ns social variations which in turn affecting the sales
and profitability of this firm (Moro Visconti, 2016). Hence, the professional at this organisation
are planning to make the adequate changes in the operational activities as well as launching the
innovative products which in turn helpful for the business in context with satisfying the
consumers.
Technological: In order to have the adequate competition in the environment and being
competent enough to fight with the marketing obstacles there is need to adopt the changes in the
operational activities as well as present the adequate competition in the world. Thus, there can be
installation of various software which in turn helpful for bringing promptness in the business
operations (LIU and LI, 2017). Thus, in order to fight the challenges in the rivalry world there
must be use of software, computer devices, billing machines as well as online marketing
techniques which in turn helpful in enhancing the business profitability.
Environmental: There can be influence of various environmental factors which in turn
affects he operational activities of the business such as climate or environment variations. Thus,
such variations affects the perishable nature of products which in turn effecting the revenue
gathering of the business (Demir, Esbah and AKGÜN, 2016). Hence, M&S will require the
strategic plans as well as bring innovations in packaging and labelling of the products.
Legal: There can be influences of various policies and procedures which are making the
adequate changes in the operational activities. Government of UK and other nations make
variation in their rules and regulation which in turn helps in promoting the adequate business
7

operations in the country as well as brings strength economic conditions (Islam and Mamun,
2017). Marks and Spencer has faced many variations in the laws, rules which are relevant with
the taxation, interest rates, loans etc.
P 5 Analysing the internal and externals environment of Marks and Spencer's
Developing the adequate marketing strategies as well as enhancing the working ability of
the firm there is need to make the internal and external analysis of the business operations
(Mauree and Geneletti, 2017). Hence, with the help of SWOT analysis Marks and Spencer will
be beneficial in making the adequate business operations in the daily dealings. However, such
analysis can be shown in the below listed table as:
Strength:
 The business usually deals in the
products like Food and beverages,
textiles, household oriented products
which are designed in accordance with
consumer preferences.
 The operational are of the organisation
is wide as it serves in various nations
and have the 1433 stores as well as
approximately 84000 thousand of the
staff members.
 The revenue gathering of the firms
quite adequate and profitable as they
have made 115m of turnover in the
2017. The wide ranges of products is helpful
in attracting the large numbers of
consumers as well as profitability of the
firm helps in gathering the investors
which in turn helpful in capital
Opportunities:
 It will be opportunity for Marks and
Spencer as they promote their industry
and business over the online markets
and bring the adequate changes in the
operational activities.
 If they make the disclosure of the
financial reports in the market that will
help in gathering the numbers of
investors as well as raise the share and
market value of the firm.
 The disclosure of the CSR activities as
well as integrated reporting techniques
will help in creating the goodwill value
ads well as enhances the brand image in
the market (Moro Visconti, 2016).
8

structure.
Weakness:
 The professionals need to bring
changes in the productivity as well as
bring the innovations in the product
line.
 There is need to manage the operational
activities as the sales made by M&S are
not so satisfactory which in turn
indicates that consumers are not
satisfied with such business. Inadequate numbers of workforce as
per the numbers of stores they are
operating.
Threats:
 In accordance with the retail business
structure the firm has been threatened
with the various challenges (LIU and
LI, 2017).
 There has been influence of various
duplicates as well as substitute products
which in turn affects the operational
activities of the business.
 The firm has been challenged by
various rivalries such as Tesco,
Sainsbury etc. these giant are holding
the maximum market shares as well as
have the adequate brand image.
Table 2: Swot analysis of Marks and Spencer
P 6 Determining the relationship between strength and weaknesses of Marks and Spencer's with
its external macro factors
Marks and Spencer is the organisation which has the wide variety of products as well as
having the adequate strength in competitive environment. Thus, they have the adequate revenue
gathering which is currently reflected the turnover of the business for 115 million. Hence, it can
be said that with the helps of such financial requirements the industry will become able to make
expansion and launch new stores at different locations (Shamsuzzoha and Helo, 2017). There can
be influence of the various political, social and economical obstacle which in turn effecting the
business activities. Thus, the changes in the rules and regulations which in turn affect the
revenue gathering of the firm. The financial crisis in the year 2009 to 2011 are affecting the
business operations such during that period there has been increment in the prices of the products
and services as well as there is reduction in the buyers. Hence, it will be great loss to all the
industries during such period (Pezzotta, Rondini, Pirola and Pinto, 2016.). However, Brexit in
9

terms affect the business operations such as many of the firms which are having collaboration
with M&S are being affected by such decisions as well as they have to make the double
payments of the taxes. However, as the year faces the method or strategies played well in
improving the profitability of such retail sector as well as brings development in the current
environment.
CONCLUSION
By considering the above study it can be concluded that, in order to improve the
organisational strength there is need to make the adequate policies and procedures which in turn
helpful for the business in gathering good revenue and profitability. Throe can be influence of
various external or macro environmental factors as well as internal factors. However, Marks and
Spencer is capable of meeting all such requirements as well as brings the adequate results to the
society. Further, the report shed light over the other legal structure of the firms such as Child
Support agency and the Scope as the public or voluntary firms. Thus, the operational made by
these two organisations which are in turn facilitating the society with the adequate growth and
development as well as brings tends to improve the well being of the society.
10

REFERENCES
Books and Journals
Ahmed, A., 2016. Europe at a crossroads and the impact of globalization.
Chelladurai, P., Radzi, W. M. and Daud, M. A. K. M., 2017. Organisational structure and theory
of non-profit sport organisations. Understanding Sport Management: International
Perspectives, p.27.
De Vries, H. and Van der Poll, H. M., 2016. The influence of Lean thinking on organisational
structure and behaviour in the discrete manufacturing industry. Journal of Contemporary
Management. 13(1). pp.55-89.
Demir, S., Esbah, H. and AKGÜN, A. A., 2016. Quantitative SWOT analysis for prioritizing
ecotourism-planning decisions in protected areas: Igneada case. International Journal of
Sustainable Development & World Ecology. 23(5). pp.456-468.
Human, G., Bick, G. and Singh, A., 2016. Strategic drivers of a network-orientated approach to
the organisation of marketing in business-to-business firm. Management Dynamics:
Journal of the Southern African Institute for Management Scientists. 25(3). pp.33-45.
Islam, F. R. and Mamun, K. A., 2017. Possibilities and Challenges of Implementing Renewable
Energy in the Light of PESTLE & SWOT Analyses for Island Countries. In Smart Energy
Grid Design for Island Countries (pp. 1-19). Springer International Publishing.
LIU, X. T. and LI, J. H., 2017. SWOT and PESTEL Analysis on the Coordinated Development
of New Urbanization and Agricultural Modernization in Heilongjiang Reclamation Area.
DEStech Transactions on Economics, Business and Management, (eced).
Mauree, P. P. and Geneletti, D., 2017. Assessing barriers to effective spatial planning in
Mauritius. A combination of SWOT and gap surveys. Journal of Environmental Planning
and Management. 60(8). pp.1324-1346.
Moro Visconti, R., 2016. Healthcare Public-Private Partnerships in Italy: Assessing Risk Sharing
and Governance Issues with PESTLE and SWOT Analysis. Since empirical considerations
about Italy may be globally extended, even beyond the healthcare industry, the audience of
this study may conveniently widen well beyond its apparently narrow focus.
11

Pezzotta, G., Rondini, A., Pirola, F. and Pinto, R., 2016. Evaluation of discrete event simulation
software to design and assess service delivery processes. Service Supply Chain Systems: A
Systems Engineering Approach. 8. p.83.
Schulte, K. A., 2016. Efficacy of Business Angel Tax credits, and targeted Supply-side economic
policy (Doctoral dissertation, Saint Louis University).
Shamsuzzoha, A. and Helo, P., 2017. Virtual supply chain–event handling and risks management
in collaborative networks. International Journal of Advanced Logistics, pp.1-13.
Wood, J. M. and et.al., 2016. Organisational behaviour: Core concepts and applications. John
Wiley & Sons Australia, Ltd.
Online
Marks and Spencer Internal and External Factors. 2015. [Online]. Available through
:<https://www.ukessays.com/essays/marketing/business-environment-analysis-of-marks-
and-spencer-marketing-essay.php>.
12