Business Environment Analysis of Mark and Spencer

Business Environment
Analysis

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Internal environment analysis of the chosen company with using conceptual model................3
External environment analysis of the chosen company with using conceptual model...............5
Undertake assessment of your chosen company, identify business risks and prepare an action
plan showing how could these risks be managed........................................................................8
CONCLUTION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business element basically related to those elements which effects the operational
activities, services and performance of the organization in both internal and external way. It
includes suppliers, government norms, competitors, consumers and so on. The company which is
finally selected for analysing the business environment and their risk are Mark and Spencer.
Mark and Spencer is a biggest retail based organization and is headquartered in UK (Ali, and
Anwar, 2021). The company was founded in 1884 and the management of Mark and Spencer are
dealing in some specific product line which includes clothing and food products. But the main
purpose of organization is to facilitate good quality products to consumers at wide range. Due to
this the revenue of this organization are increased at higher rate in long run. This report will be
prepared with help of using various methods which includes PESTEL, SWOT and VRIO model.
This report will also explained the specific action plan which is initiated by the management for
reducing the various types of problems which was facing in their operational activities.
TASK
Internal environment analysis of the chosen company with using conceptual model
SWOT Analysis -
It basically refers to the planning method which is utilized by firm for analysing the
different types of scenario which was developed by employees. Therefore the management of
Mark and Spencer used this tool for identifying their strength, weakness, threat and opportunities
which are described below -
Strength includes -
 Brand image – It means that Mark and Spencer always provides good quality product to
old and new customer's in type of situation (Amankwah-Amoah, and Wang, 2019). Due
to their wide range of products and services communications are effectively maintained
with all categories of customers smoothly.
 International company – Mark and Spencer is one of those company who deliver their
products and services to customers at international level. Due to this management
expanded their services in both online and offline modes in large number. It includes
Europe, Middle East and Asia.
Weakness includes -

 Declining of sale – It means that Mark and Spencer did not effective distribution channel
which creates negative impact on the sale of their product and performance. Because due
to ineffective distribution channel customers are not received their ordered product in
right time at right location.
 Increasing cost – The biggest disadvantage of Mark and Spencer is that focusing on
upper and middle class customer's because in their product prices are very high
(Bhatnagar and Sinha, 2018). Due to using this strategy their customers are limited in
number for buying the product.
Opportunities includes -
 Expansion of company – It means that due to their world wide activities Mark and
Spencer launched their new shops in other locations for increasing their popularity. It
includes Poland, India, Russia and Brazil and in this way their market are increased at
large level.
 Efficient use of technology – It means that Mark and Spencer is one of those company
who used different types of e commerce platforms for increasing the sale of their product.
With help of this facility company easily position their image in market for long time.
Threat includes -
 Increase in competition – It means that in today's time competition are very high in
retail sector due to other competitors. Competitor includes TESCO, ASDA, Sainsbury
etc. Because these type of competitors are also facilitating the same product to all
customer segment. This create threat to company company's growth in long run.
 Deep effect of COVID 19 – It means in COVID situation Mark and Spencer faced
various types of problems for providing effective service to users (Božič, and Dimovski,
2019). Because at that time government initiated lock down for increasing the safety of
public. But in this strategy the supply chain of the organization are totally disturbed
which creates negative impact in the minds of customers for their services.
VRIO Analysis -
It is a technique which is followed by the organization for evaluating their resources and
competitive advantage effectively. VRIO stands for valuable, rare, imitable and organized and
with help of all these elements portfolio of organization are easily increased in time