Business Context: SWOT and PESTEL Analysis of Marks and Spencer

This report covers the SWOT and PESTEL analysis of Marks and Spencer, evaluating how changes in PESTEL factors influence opportunities and threats, and how strengths contradict threats and weaknesses. It also discusses suitable leadership styles and corporate social responsibility. The report provides expert insights on the business context.

Context of business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
SWOT and PESTEL ..................................................................................................................3
Changes in PESTEL factor influence opportunity and threat and how strength contradict
threat and weakness along with opportunity...............................................................................5
Style of leadership.......................................................................................................................6
Suitable leadership style that aid in grow and overcome the challenge......................................7
Corporate social responsibility....................................................................................................9
Reflection..................................................................................................................................10
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
The business context cover proper understanding of several factors that may affect the
entire business from the point of view of business perspective, this will combine how decision
can be made and identify ways through which company can achieve its target. Business context
recognise implication towards the carrying out strategic plan. It will shape perspective of
business in terms of value, goal, believes and communication practice. By analysing business
environment business can develop more effective strategy for company profitability. The
leadership direction inspire entire workforce in the company so that each employee will fulfil l
valuable purpose of company (Algharabat, 2018). The chosen organisation in this report is
Marks and Spencer. This company is famous for multinational retailing founded in 1884 by
Michael Marks and Thomas Spencer. The report highlight SWOT and PESTEL and evaluate
how these changes in PESTEL factor will influenced opportunity and threat of business. It will
critically evaluate how strength contradict threat and weakness along with opportunity. Report
include different style of leadership and recommendation of suitable leadership style that easily
overcome challenge of business environment. This also consist of corporate social responsibility
along with reflection based upon experience.
TASK
SWOT and PESTEL
Mark and Spencer is one of the leading brand of UK in retailing with variety of product
and services. The analysis of SWOT model will provide detail assessment regarding strength,
weakness, opportunity and threat of business.
Strength- Mark and Spencer is well recognised brand since past 136 years. The journey
of this company become big retail business around the world. This will represent as plus point
for the business. The entire reputation of business focus to provide more qualitative goods and
services to their respective potential consumer (Banerjee, 2017). The company expand its market
into the business of international level. They deliver their product and service from both online
and offline channel to target mass audience. But at the time of pandemic most of the sale is
generated from online store. The company biggest strength as they represent themselves as
famous designer brand with unlimited collection to target variety range of customer.

Weakness- As per analysis, most of the store start declining sale from 2019. The main
reason behind this their poor supply chain management. Target customer of the company does
not get their product on time. This made very bad impression of company in front of large
customer range. Some times company gets fail to meet actual requirement of customer in
category of clothing and food. Most of the people made wrong perception towards company
image as they only provide elder cost rather than young and teenager. But this is a myth as
company serve all category of target customer (Basak and et.al., 2017). The major weakness of
the Mark and Spencer is that they depend upon large manual process. This will increase cost of
the company and their customer has to spend lot of money for purchasing. Their competitors has
adopted latest technological device for operational process. The company need to apply latest
technology in order to improve updated brand to save cost of company in efficient way.
Opportunity- The Mark and Spencer has great opportunity for expanding their market
at global level. Most of the country market is still remain untapped by the company such as
Brazil, Poland, Russia etc. They must expand their business practice at global level. Online store
is also act as opportunity for company. Mark and Spencer must focus upon developing their
strong presence on website as well as social media. Through this company can raise the volume
of their sale. This will combine of E commerce retailing and become future of company because
most of the people as engage in social media and prefer to purchase product from online channel.
Here he Mark and Spencer must focus upon proper market segmentation so that they can
distribute its market segment into various niche market (Batziakoudi and et.al., 2020). The
reason for market segmentation of customer is company can give their more attention towards
each group of customer. This will help them to raise the sale of company. They can satisfy
variety range of customer by segmentation policy.
Threat- High competition is the one of the biggest threat for the company as their
competitors also using most effective technology to target customer with premium quality and
unique selling proposition. Most of the exclusive company are entering in this retailing industry
by involving innovation concept in its products and services. That is why why company need to
develop their effective marketing policy to modify its unique selling proposition. This will build
strong position of company in global market.
PESTEL

The pestle model involve factors of political, environment, social, technical, economical and
legal which help Mark & Spencer to update its company performance.
Political- The Mark and Spencer is in the favourable position because company getting
full support from government. They utilise free trade agreement that will reduce company
sourcing cost. But in the international market company has to face its increased cost structure
because each country has their different perspective such as political influence, raw material,
labour (Cheng and et.al., 2019). The UK government does not have proper clarification
regarding efficiency scheme as a result company has to face its negative affect in production.
Environment- The company is executing ethical green practice in business operation as
they follow proper strict standard which is imposed by government to protect interest of
environment. The company is much concern in order to implement regulation to protect
environment by reducing carbon footprint.
Social- The social factor like people perception, lifestyle is keep on changing in retail
industry. So company required to update its products and services as per changing demand of
market otherwise their profitability gets affected.
Technical- The technological shift has been seen from offline to online channel, Mark
and Spencer is generating more revenue from its website and social media. Modern customer
prefer online retail shopping that is why company continuously focusing on developing digital
media online presence.
Economical- Mark and Spencer is highly influenced by their competitors, however
company is mainly focus upon providing better quality of products but this will cause short term
loss in order to attract high qualitative value. The company faces financial crises due to customer
price sensitivity in the market place (do Prado, 2018). With impact of competitive market
company need to evaluate flow of market in order to achieve sustainable sale and profitability
ratio.
legal- Mark and Spencer does not get affected with the legal factor as they regularly
conduct proper session of all types of laws and regulation(Health safety work act )so that they
can protect the interest of employee and customer.

Changes in PESTEL factor influence opportunity and threat and how strength contradict threat
and weakness along with opportunity
There are several factor of PESTEL in Mark and Spencer, which consider as opportunity
and threat for the company operation and profitability.
Opportunity- The political factor and environmental are consider as the opportunity for
Mark and Spencer because the company is utilising support of government in their production
and operational activities (Fernández‐Ferrín, 2021). The company utilise free trade agreement in
order to neglect sourcing cost, on the other hand environmental factor is also beneficial for
increasing their revenue. The company execute green practice in its production activity by using
environment friendly products , this will improve brand value of company and enhance customer
value.
Threat- The factor of social and technical are consider as threat for company because
both the factor are keep on changing with time to time in competitive market. The Lifestyle and
customer perception is changing as per change in customer perception, these changes are hard to
control by the company (Griva and et.al., 2018). The technology is also keep on changing in
competitive market as most of the new update are coming to improve quality of goods and
services and reduce overall cost of company. But it is not necessary for Mark and Spencer to
implement each types of technology changes in its operational because it will require proper
expertise workforce who can introduce proper change in operations.
From the above analysis it has been found that, various factor of company strengths like
strong brand value and influencing online presence contradict threat and weakness along
with opportunity. By using proper use of online channel like website and social media,
company can reduce threat of social factor of customer perception with help of regular
influencing post. This can also covert into opportunity as company can increase its profit or sale
from strong online presence. Financial crisis is the weakness of the company and this happened
due to fluctuation in the market. It will reduce the sale and revenue of company but this can be
balance with strength of Mark and Spencer. Company using green practices which ultimately
reduce cost of products this will attract potential customer and company will take advantage of it.

Style of leadership
This is very important for the growth of the firm to analysis major sector and make sure
for using effective leadership. As the appropriate leadership style is basically helpful for
managing and growing the need and style for effective situational factors. This will related to:
Autocratic leadership style: This is the style which must be obeyed by the subordinated
and make sure for completing the need and make some effective changes for consulting
information. All is related to effective changes which is helpful in making decision, and leaders
can make their decision without consulting to anyone in the group. This type of leadership is
helpful in large sector organisation (Helmefalk, 2017). This may be helpful for considering
effective changes and make sure for providing suitable changes and manage the sources as per
the basic growth in the company.
Democratic leadership style: This is the style of leadership to make legitimate the
democratic leadership and make some effective employee's participation and make suitable
changes to make effective union and work systematically. This type of leadership, enhance the
morale, acceptance in management's ideas and make effective management in between the
process and growth. But at the same time, this type of leadership reflect the slow decision
process. Further, the leader's involve everyone in the decision but it would be related to delay in
decision and can not provide relevant solutions.
Laissez-faire Leadership style: This type of leadership is related to make maximum
freedom to the management of follower and called a basic and effective leadership for the
growth (Hsiao, 2018). This is also known as different challenges and make group effectively
members and provide a chance to express and make effective growth in the partnership changes.
Paternalistic Leadership style: This is the function which is related to effectively and
paternal challenges. This will be related to work and make suitable challenges and allow the
company for the growth and achieve different sectors and make growth for guiding, protecting
and managing suitable changes.
Marks and Spencer is the company, use effective growth and make adoptive challenges
for analysing growth in democratic leadership style. This will be helpful for the growth and
achieve different style to adopt effective changes and make durability for different sector and
make changes are useful for the growth. This could be helpful for growing and effective changes

and make sure for suitable growth. This will be helpful for the company to work effectively and
make adoptive nature and analyse suitable changes.
Suitable leadership style that aid in grow and overcome the challenge
Democratic leadership: democratic leadership is also defined as the participative as well
as shared leadership in which leaders allow their team members and employees to take active
participation in organisational decision-making process. Marks & Spencer provides opportunity
to employees to participate in business activities, encourage to provide innovative ideas for the
purpose of attaining organisational defined goals and objectives. As in the respective leadership
style, organisation motivates employees and allow them to share their thoughts and creative
thoughts to solve problems and face challenges effectively (Levius, 2018). As Marks & Spencer
adopts democratic leadership to enhance employees involvement and commitment towards
organisational projects as well as lead them towards attaining the objective of higher
performance and productivity that help to accomplish all personal and professional goals.
Leaders of respective organisation facilitates employees to meet, discuss and resolve various
organisational issues through contributing in business decisions. It facilitates the organisation to
resolve conflicts efficiently through understanding point of view of employees and it allows
Marks & Spencer to find range of potential solutions that helps it to face all challenges
efficiently.
Through applying democratic leadership, Marks & Spencer maintains effective team
relationship and create workplace where employees can communicate, provide their innovative
ideas, concepts and involve them in organisational decisions. It enhances employees morale and
job satisfaction that enhances their overall productivity and performance level. In the workplace
in which employees feel valued increase their overall satisfaction with organisation and retain
them with Marks & Spencer for longer period of time (Madsen, 2020). Marks & Spencer faces
various challenges and problems to conduct business functions in highly competitive business
environment that reduces organisational proficiency and positioning in the market place.
Democratic leadership facilitates organisation to overcome these challenges effectively and
efficiently. It helps organisation to grow organisational revenue and profitability rate and
retaining experienced as well as skilled employees with Marks & Spencer organisation because
they feel valued in organisation.

Marks & Spencer some times adopt leadership theories and styles according to situations
as it there are need to take quick and effective decisions organisation prefer autocratic leadership
style. Respective organisation provides proper training and development opportunities to
employees so they contribute effectively in organisation to make prominent decisions (Olofsson,
2018). Conflicts between organisation and employees can be resolved efficiently and democratic
leadership style facilitates Marks & Spencer to create effective working environment that
facilitates employees to perform defined functions in best possible manner to attain
organisational goals and objectives.
Corporate social responsibility
The model of corporate social responsibility is refer as self regulating activity of
organisation, which aid company to maintain balance of social accountable towards its public,
stakeholder and itself. This is a wider concept that reflect voluntary efforts of company in order
to contribute brand value of company (Peters, 2018). This is essential for both employee,
customer and company itself in numerous way. It will boost the morale of employee in working
place and they will deliver more satisfied services to customer to enhance maximum sale of
company. The ultimate purpose of corporate social responsibility is to contribute maximum
positive value and established strong position of company in competitive market. Marks and
Spencer contribute social responsibility towards employee, supplier, local community, partner,
and customer. The company is highly responsible to deliver quality, services, trust and
innovation during their business practices. Through this company will easily manage issues of
social, ethical, and environmental around the business. The Marks and Spencer are conducting
several activities of social corporate responsibility are as follows-
Charity and society funding donation- Marks and Spencer done some donation to
charitable entity, as company prepare some budget to support the problems that need to be
remove from from the community.
Clothing and equipment- Company donates clothing and business surplus to charity
Newlife. The company donation of clothing dispatched to shelter that promote homeless and
charity partners.
Food- Marks and Spencer distribute food surplus to the industry of vulnerable people in
society.

Waste management- This is the five year plan of Marks and Spencer to stop sending
waste towards landfill and promote waste management, this can be done by decrease use of
packaging and carrier bags.
Sustainable raw material- Company is highly committed to ensure their raw material
with effective use of sustainable raw material in production.
Reflection
The model of Gibbs reflective cycle is being utilise to evaluate proper understanding of
my experience in this report. This model is published by Graham Gibbs in 1988, which help
individual to learn different perspective of experience and situations.
Description- As Learner, I got an opportunity to develop skill in this report researching,
based upon current situation I update my leaning skill in order to conduct specific model like
SWOT and PESTEL. My communication skill is effective that aid in framing objective of report.
I develop my problem solving skill by deep analysis of given current situation.
Feeling- The feeing related with this research, improve skill during the assignment task
in project. But other skill like time management and decision making skill impact accuracy of the
report (Vo, 2020). This will require more concentration and focus to improve my weak skill
during this assignment task.
Evaluation- The positive outcome which I learned during course of action that I develop
skill of problem solving and update my subject knowledge. The negative outcome which I
experience that it take me huge time in improving accuracy of skill development.
Analysis- During learning course of action, I develop level of my personality with help
of skill and knowledge development. I have develop skill like time management, decision
making, communication and problem solving.
Conclusion-The improvement in skill will enhance accuracy that is highly required in
assignment task. The people who depend upon my work also get impact due to my weak skill of
decision making and time management.
Action- In entire, project learning skill and knowledge is significant that improve
performance of my work. The difficulty that I found due to weak skill can be improve while
getting more experience towards skill like communication, decision making and problem solving
in future.

CONCLUSION
As per above report, it can be concluded that business in the entity that is involves in
various functions and producing products and services to offer them in market for accomplishing
various defined goals and objectives. There are various internal and external factors are exist in
business environment that affect business in positive and negative manner. Internal factors are in
the control of organisation on the other hand, external factors are not controllable. Organisation
evaluate all these factors properly than take decision to run business efficiently. Marks &
Spencer organisation adopts business democratic leadership style in which it involves employees
in decision-making process that motivates them perform efficiently. Respective organisation
adopts corporate social responsibility concept to run business efficiently in competitive
environment.

REFERENCES
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