Marks & Spencer Business Analysis

This assignment delves into a comprehensive analysis of Marks & Spencer (M&S) by employing both PESTLE and SWOT frameworks. The PESTLE analysis examines the macro-environmental factors influencing M&S, including political, economic, social, technological, legal, and environmental aspects. The SWOT analysis focuses on M&S's internal strengths and weaknesses, as well as external threats and opportunities. This combined approach provides valuable insights into the business environment facing M&S and potential strategies for success.

Business and the Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................................3
TASK 1..........................................................................................................................................................3
P1 Various types and purpose of private, public and voluntary organization..........................................3
P2 Size and scope of different various range of firm...............................................................................4
TASK 2..........................................................................................................................................................5
P3 Relationship between different organisation functions......................................................................5
TASK 3..........................................................................................................................................................6
P 4 Positive and negative impacts of macro factors ................................................................................7
TASK 4..........................................................................................................................................................8
P 5 Internal & external analysis of Marks & Spencer...............................................................................8
P6 Interrelation of strengths and weaknesses with external macro factors ...........................................9
CONCLUSION.............................................................................................................................................10
REFERENCES ..............................................................................................................................................11

INTRODUCTION
Business environment is that specific term which is used for analyzing and examining
major impact of internal and external factors on business operations. It is generally operating and
manages their business for getting opportunities for business organization (Chesbrough, 2010).
Such type of environment directly impacts on business procedures and mainly affected by
organizational functions. This will help in gathering ventures and factors have been control of
business operations. This type of aspects which directly effect on profitability, growth and
productivity of an organization. These kinds of changes operated in operational and functional
activities. With the help of this, organization management help in making and developing
appropriate strategies and policies which impact on environment changes in easy manner. The
report is based on Marks and Spencer which is retailing company and it is situated in United
Kingdom. This enterprise provides various selling of clothing, home products and luxury food
items. The main aim of this organization is to analyze the different organization and its scope or
size. It is also discussing about micro and macro environmental which directly effect on decision
making process of an organization.
TASK 1
P1 Various types and purpose of private, public and voluntary organization
In an organization, each and every firm is divided into three different sectors such as
private, public and voluntary. Such kind of firm are operated and owned by various governments
to work for specific goals and objectives. The major difference between them for doing their
working and legal structure which classify as per their own vision and mission.
Public sector- Such type of organization is providing their own contribution in economy
growth and public welfare. Along with this, public sector is doing working under government
and public authorities for supplying their effective facilities to their people. Such organisation is
managed and controlled by state and financial commercial firms which are working under public
ownership and operate business issues and problems. For example, Marks and Spencer is the
private company which provides different type of goods and services to their desired customers.
Purpose- Private Sector organisation is very different for public sector because the main aim of
this company is to earn high profitability and make money for future success and growth.
Legal structure- The private sector is controlled and operated by private bodies, partners and
individual for fulfilling all desired goals and objectives.
Public sector- Such type of organisation is providing their own contribution in growth of
economy and public welfare. Public industry is doing work under authority and public
government for delivery effective services to their potential customers. Such organisation is
operated and controlled by state and central government of the country. Along with this, public
industry company are owned and regulated on commercial base. For example, H&M is the

multinational clothing retailing company which is known as fast fashion clothing men, women,
teenagers and children. Hennas and Mauritz and their associated organisation which operate in
62 countries in all over the world.
Purpose- The main purpose of this firm is to make and create particular control and command on
economic growth and also provide social care services to all legal government.
Legal structure- Public sector organisation is doing work under local and state authorities of the
nation. The audit commission increasing their structure with tax policies, financial growth and
government finding.
Voluntary sector- voluntary industry is work for providing social care to their people.
Such type of firm is creating and make their full focused that are related to non-profit services.
For example, Welcome trust is voluntary sector which provide specify services to the needy
person.
Purpose- The main aim of this organisation is to provide social care facilities for each and every
person. Welcome trust working for social care services.
Legal structure- Such kind of firm are generally operated and owned by government authorities
and provide their services for society welfare.
P2 Size and scope of different various range of firm
In an organisation, each and every company establishes their personal objectives and
goals. With the help of this, they manage and maintain their size and structure for achieving them
in easy manner. Public, private and voluntary sector are very different from each other and they
offer various type of facilities of an individual. Such kind of organisation that are established
with their particular goals and objectives. Size and scope of such organisation that are as follows:
Public sector- this kind of enterprise are generally establishing for giving their accurate
services and facilities for economy and person development in proper manner. For this they
create and make appropriate modification in firm size and scope for giving services for each and
every one. This organisation has large structure then private authorities because government
provides their personal contributing their firm. For example, size and structure of audit
commission is crucial then other firm.
Shareholders- Public sector organisation are generally working under local and state authorities
of the nation. Along with this, audit commission was working under domestic government
finance Act 1982. The major government on Marks and Spencer which are based on legal
bodies.
Scope- Public sector enterprise has high variety of scope who are developing and making
accurate control on various firm. Audit commission also Public sector companies which work for

appointing auditors for public sector firm which work for appointing for set particular standard
of auditors.
Vision and mission- Public industry are generally established for provide their effective services
or facilities to take care of public services. The main vision and mission of audit commission is
to develop effectiveness and also set correct standard of various auditors.
Private sector- Private sector enterprise is consisting with service provider and their
major aim is to develop and make money through with their effective services and best quality
based of products.
Size- there is around 959 stores in all over the world and they sell grocery products and
food items to large number of customers.
Scope- they are expand their business in other location such as turkey, Greece, France,
Poland, Ireland, Spain, etc. they have approximately 82904 employee who work for them for
achieving desired goals and target for an organization.
Voluntary sector- Oxfam is voluntary company which assists poor and needy people who
required help. They provide free services to those people who are in trouble and they have no
shelter. So they provide them place, food and other things.
Size- There is various staff members of this firm who work for work for their own
willingness. They give help to the needy people.
Scope- they have large area where they gave services and facilities to the old, young and
adult person, those are willing to do work for their own. It is the nonprofit organization who
serves and offer services to all over the country and also given health care services to an
individual in better manner.
TASK 2
P3 Relationship between different organisation functions
For an organisation, it is requiring for understand the value of organisation activities and
functions that can directly effect on decision making process. Marks and Spencer is multinational
company which provide different type of clothing, accessories and so many products to their
customers (Charter, 2017). They also provide effective and accurate services in all over the
world. For an enterprise, it is needed for doing appropriate work in proper manner which
includes organisation structure and operational functions or activities. The main objective of this
firm is to provide high level satisfaction to their desired customers and fulfill all needs and
wants. Such kind of activities required for appropriate structure that are as follows:
Research and development- for an organisation, it is necessary for analyzing and
examining various factors which are related to market activities and functions in proper manner.

Along with this, this department helps in contributing effective market share in the economy.
Also they analyze whole market area and place for targeting desired customers. With the help of
this division, the main aim of this firm is to analyze and examine different marketing approaches.
Sales and marketing- This division of organisation works for implementing various
business process and activities for getting accurate outcome and results in easy manner. The
main motive of this department is to spread awareness about organisation products and services
in the large market place. They are easily increasing in their sale products and gain profitability
of the company. Such activities are essential for M&S for targeting large number of customers.
Production- It is that department where company need to execute accurate changes and
modifications within an organisation and make those products which are demanding by buyers.
With the help of this, they can easily develop effective changes in the market and also
developing image of products. Such changes are totally based customers demand and on the
other hand, also analyzing marketing strategies and policies towards organisation services in
effective manner (Bryman and Bell, 2015). After that, they need to analyze each and every factor
which is required for make best quality based products within an organisation production and
manufacturing process has been applied.
Human resource department- It is main part of every organisation which play an
important role for managing and handling all business functions or activities in proper manner.
The main goal of this firm is to hire skilled and qualified candidates who are able to achieving
desired goals and targets. In this processes, human resource manager requires to examine every
activity that are related to company for provide them effectiveness in proper manner. They also
conduct and organize training and development program for increasing skills and knowledge of
their employees.
Finance- This is that department which help in managing and handling all budgets and
financial statement in each manner. This department manages all income and expenses of
company which build balance among them (Carroll and Shabana, 2010). Such type of functions
need skilled and talented employees who provide correct advice for make effective investment of
capital in appropriate manner. It is that department which helps in controlling and identifying all
major issues and problems in easy way.
Manufacturing department- This is that department which analyze the needs and demand
of customers then produce appropriate product for satisfy them. They also help in gaining
maximum profitability for selling demanding goods and commodities to their potential buyers. In
this process, M&S make effective changes and alteration in the present goods and also introduce
new services for their customers for provide them high satisfaction towards their goods and
services. This is necessary for make effective modification which help in maintaining good
image and build effective reputation of organisation in the large market place.
TASK 3

P 4 Positive and negative impacts of macro factors
Before making any strategy, it is important for every organisation to get familiar about
the impacts of macro elements which is present in business environment. M&S should also
consider this aspect. For this, they can take help of PESTLE analysis since this contributes a lot
in determining about the influences of different external components. The discussion about
effects of such factors are covered below :
Political factor :
For every business enterprise, it is vital to apply governmental standards as well as rules
in all processes associated with commercialism to run their businesses in ethical and disciplined
manners. Influences of political factors or government are described below :
Positive impact: Some of the norms and policies of legal system are made for the development
of companies. For example, government provide loans to corporations so that they could run
their business actions in effective way and may do not faces nay kind of financial issues
(Aterido, Hallward-Driemeier and Pagés, 2011).
Negative impacts : Instability in the political situations may impacts more on working of M&S
since after alteration in political parties, most of the norms associated with taxes, economical
things, etc. got changed. After that they have to work on as per the modified regulations of
governing body. Due to rise in taxes, most of the revenue of referred organisation would goes in
paying imposed taxation amounts. Thus, they have to suffer from losses at last.
Social factors :
Negative impact : Marks and Spencer should design their productions as per the demands and
requirements of their expected consumers. But this to be noted that such demanding situation is
also being changed on continuous basis; hence they have face a lot of complications after that. If
they will not manufacture goods in accordance to their wish, then common public may not like
the same and migrate towards other companies in search of deliverables as per their wishes. This
in turn adversely impacts of their entire turnover.
Positive impact : But they are only one for whom company is making product. So, positive
thing is that such citizens are the main source of their income (Scheer, 2012).
Economical factor :
Positive impact : The economic situation of different nations wherein Marks and Spencer are
present helps them in earning high sum of income.
Negative impact : But sometimes, fluctuations are recorded in UK marketplace that
increases the possibility of losses. For instance, due to event of September 11, the overall
economy world has endured hardly.

Environmental factor :
Positive impact : Different raw materials like cotton, threads and many more could be acquired
by referred organisation which supports in them generating large amount of deliverables like
fashioned clothes (Shigang, 2010).
Negative impact : On the contrary, due to sudden changes in nature or climate, stocks might be
completely destroyed which adversely effects on the performance of M&S.
Technological factor :
Positive impact : The rise and improvement in technical prospects supporting venture in
designing goods and services in very less time. From the utilization of modern tools and
technology, given company can also save their higher amount of money and can use the same in
some other works.
Negative impact : But numerous enterprises are taking benefits of development of technology,
this is turn increases the number of rivalries in market of United Kingdom. Hence, customer's
base is getting segmented drastically into different companies.
Legal factor :
Positive impact : Government use to maintain law and order in field of retail and also helps
ventures in operating their businesses. For example, rules such as prohibition of child labour,
supplying equal wages to each employee aids in offering fundamental rights to workforces.
Negative impact : M&S have to face different problems associated with governmental policies.
For instance, rules affiliated with health and safety, rights of customers, etc. must be followed by
them. If they breach any legislation, then penalty or punishment might be given to them.
TASK 4
P 5 Internal & external analysis of Marks & Spencer
In order to carry out analysis of exterior and interior factors, Marks and Spencer need to
conduct swot analysis. This aids them getting familiar about
Strength :
Higher recognition of brand : M&S is having great fame in the streets of United
Kingdom. Each and every people know them and also used to purchase products and services in
large number (Osterwalder and Pigneur, 2010).
Wider varieties of products : They are offering varieties of goods at their different
stores or outlets. This assists clients in selecting the best one.

Provides popular brands : This has been seen that they are catering famous brands
men’s wear like Big&tall, Blue harbour, autograph, Collezione, North coast and so on to their
expected customers.
Weaknesses :
Misunderstanding : Some of the users is having wrong perception that company is
offering higher priced or expensive goods and services. Due to this, they are losing their interest
for the similar and moving towards other one which caters less expensive products (Klapper,
Lewin and Delgado, 2011).
Environmental issues : Different kinds of difficulties emerges due to the sudden
alternation in weather such as, excessive heat, heavy rainfall, etc. At the same time, natural
disasters might also occur like flood, drought, and earthquake which impacts negatively on
performance and operations of venture.
Threats :
Different new organisations are emerging in the retail sector that acts as threat for Marks
& Spencer.
Numerous of newer legislations are being imposed by UK government which is creating
problems for this enterprise like enhancement in tax rate.
Opportunities :
They need to design unique and innovative goods or services and serve the same to their
customers at minimum prices. This will help them in making great brand image.
In addition to above one, they could also start their business in newer places where they
are yet present. For this, they would merge themselves with other companies of that place.
P6 Interrelation of strengths and weaknesses with external macro factors
 This has been observed that exterior macro elements are closely linked with strength and
weakness of Marks & Spencer. This can be better understood by below mentioned points
Insatiableness in politics, increment in taxation levels, changes in in the value of
currencies, imposition of several norms associated with commerce, etc. are some of the
situations that is occurred due to legal and political factors of nation wherein company
used to operate (Hamilton and Webster, 2015). These things usually make company weak
in financial terms. On the other hand, government also supports M&S in carrying out
their commercial activities by providing those loans. Thus, they are helps them in
improving their situations which act as strength.

 If economic situations of nation of would bad then, people also receives or earn less
wages from their occupations. That is why they spend minimum revenue on purchasing
luxurious items. This may decrease the overall selling range of Marks & Spencer. Hence,
its financial conditions would become weak (Fernando, 2011).
 Most of the raw constituents like cotton, threads, woods, timber, spices, oils, vegetables,
fruits and many more could be easily available by natural environment. Therefore, this
plays an important role in strengthening their capabilities. On the contrary, sometimes
due to emergence of natural disasters like flood, earthquake, cyclone, random
modification in climatic conditions, etc. influence negatively to M&S since most of the
stored products got damaged. Additionally, death of people from these disasters may
decrease the number of clients of venture. This in turn makes weak drastically.
CONCLUSION
From the above based report, it can be summarized that business environment comprising
of different internal and external factors which gives effects on the overall performance of each
and every ventures that are existing in United Kingdom. For example, policies of government,
economic as well as social condition of specific nation, development in technological aspects,
etc. are some of the elements that is influencing on Marks and Spencer in different ways.
Although few impacts are positive in nature but some of them are negative also. Therefore, they
needed to make specific strategies in order minimize such adverse influences. Pestle analysis has
been conducted in this project for knowing about affects these kinds of factors. In addition to
that, swot analysis has also been carried out for M&S. This helps them in getting familiar about
their own power, weak sections, threats as well as possible chances that they could utilize in
order to grow and improve themselves in proper manner. The main objective of this firm is to
provide high level satisfaction to their desired customers and fulfill all needs and wants.

REFERENCES
Books and Journals
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the business creation process. In Entrepreneurship and Economic Development(pp. 108-
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game changers, and challengers. John Wiley & Sons.
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Shigang, Y., 2010. Competitive strategy and business environment: The case of small enterprises
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