Business and Business Environment: PESTLE and SWOT Analysis of Marks and Spencer

This report discusses the PESTLE and SWOT analysis of Marks and Spencer, analyzing the impact of macro environmental factors and interrelationship with different external factors through TOWS analysis. It also provides a critical reflection on the key findings and their influence on the decision-making process.

Business and Business
Environment

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4

INTRODUCTION
Business environment refers to certain factors that affect organizational ability to build
and maintain successful customer relationships in the future. Also, the present report is based on
Marks and Spencer that is very well-known brand in UK and around the world. Also, the
present study will discuss the significance of macro environmental factors and will also highlight
impact of such factors on company through conducting certain analysis. Moreover, detailed
description of SWOT or TOWS analysis within organization will also be provided under this
report. Lastly, certain learnings will be identified from the overall report through presenting the
critical reflection in clear and concise manner.
PART-A ( covered in fact sheet)
PART-B
Analysing the various macro environmental factors through PESTLE analysis.
Marks and Spencer operates on very large scale and hence it is affected by various
external factors that exist outside the business environments. Also, the firm had made various
strategic decisions in accordance with changing environment and through conducting analysis
that are described as follows:
PESTLE analysis:
This is model that is used by the firm so that while functioning in the international market
greater efficiency is derived and also maximum revenues might be generated during specified
period (Khan, Çera and Nétek, 2019). Also, this analysis would help marks and Spencer in
devising the right policies and develop the best organization structures for future working of the
business in various markets.
Political: There are various factors such as political stability, taxes and much more would
affect the marks and Spencer both positively and negatively depending upon the situation. For
instance: If the company plans to sell its goods outside UK and there are situations of
government instability in the target markets than marks and Spencer would not be able to sell
large quantities of goods in the best manner (Nandonde, 2019). Moreover, higher increase in the
tax rates would also create problems as prices of the goods would be raised higher and thus these
way consumers would be reluctant to purchase the products of the company.
Economical: There are countries where there are certain import export restrictions that
does not allow the company to sell certain good or services in effective manner. Moreover, if

cited firm is trying to purchase certain goods from any particular country where there are export
restrictions than it would not be able to get required amount of raw materials Furthermore, if
inflation rate is higher than it would also impact the sales negatively as prices would be higher
which might not allow the people to buy certain goods.
Social: In any society there are various trends, attitudes, beliefs etc. Furthermore, these
trends and beliefs had to be analysed closely by the firm so that based on that products could be
manufactured and sold in the markets. For example: in the current times most of the people wish
to consumer organic food products and eco-friendly clothes. Thus, selling more of such products
in target market would help firm increase the overall revenues in long run.
Technological: Technology need to be upgraded continuously as it is essential for
survival in the target market for longer time period (SALTAMARSKI, 2021). Also, it can be
said that with use of the latest technologies the firm would be able to enhance the sales and make
faster business decisions. For instance: nowadays various digital technologies had provided
greater reach in form of online websites of the firm and also efficient technology had allowed
manufacturing large quantities of goods at faster pace.
Legal: Various laws such as health and safety laws, minimum wage law and working
hours etc. need to be strictly followed by the firm (Abu-Rumman, 2021). Also, following such
laws on regular basis ensures that there is no such kind of government interventions in the future
conduct of the business.
Environmental: In the current times people are more concern for protecting environment
and thus are interested in only consuming environmental friendly products. Hence, this factor
might be turned positive by marks and Spencer through reducing the consumption of water in
manufacturing goods and also decreasing the carbon footprint (Ofosu-Boateng and Jiping, 2020).
Thus, this would help in building goodwill by being socially responsible and adopting
sustainable practices.
Thus, through closely analysing all the external factors the firm would be able to compete
with other competitors in most effective manner and ensure that working is carried by employees
in different regions.
Applying SWOT or TOWS analysis within organization
Every organization need to keep in mind that there are various internal factors to that
affects the working of many employees and also these need to be analysed on timely manner so

that not much cost is spend. Moreover, in the current times it can be said that Marks and Spencer
had been able to develop strategic plan well because all the internal factors are been monitored
regularly so that no problems is caused in carrying out the work (Saudi, 2021). Furthermore, the
cited firm through such analysis would be able to enhance the productivity of each employee
working in various department and also ensure that right amount of work is been done at right
time. Also, such analysis will help in developing the best strategies that is necessary for
continuous operation of business in various areas. Also, below is the detailed SWOT analysis
for the company.
SWOT analysis
Strengths
 Clear brand image: The company had positioned itself through delivering the high end
value products to most of the target markets (Phan, 2021). Furthermore, it has clear
branding strategies that has helped in building more number of loyal customers. Innovations: The company believes in bringing innovative and creative products in the
market and thus it can be said that this has helped in gaining success in most of the target
areas. Also, it had allowed the firm to compete successfully with other local competitors
Weakness
 Customer satisfaction: The survival of any business is totally dependent upon satisfying
each and every customer (SWOT analysis of Marks & Spencer, 2022). However, in
certain reports the company had failed to maintain the brand loyalty and thus impacted
the sales negatively. Supply chain problems: The firm had also faced supply chain issues where the
distribution could not be done to most of the places through online sales. Thus, this
affects the company badly on large scale.
Opportunities
 New segments: Fashion is continuously evolving over the years and thus it can be said
that company has opportunity of the expanding into new product line for earning greater
revenues within the business (Kim, 2021). Merger and acquisitions: To expand successfully in international markets Marks and
Spencer could also merge with other companies' so that risk and losses could be shared
Threats

 Increasing competition: There is the growing competition and list of competitors such
as Zara, Tommy, Hilfiger etc. might compete with cited firm on the basis of variety of
products and services that are been provided. Growing prices: With the change in government policy and new Brexit reforms the
company has the serious threats of rising the prices of the products to sustain in UK and
other markets in long run. Thus, this might reduce the number of customers during
certain period
Interrelationship with different external factors through TOWS
This is analysis helps in not only identifying the internal and external factors but also
helpful in determining the relationship among them so based on that best plans could be made for
the future (Kwon and Park, 2021). Moreover, this analysis will help Marks and Spencer to make
strategic decision based on the threats and opportunities identified Thus, this way the best results
would be achieved in the future either in form of higher revenues or through providing the best
customer satisfaction. Moreover, for the marks and Spencer that is successfully overcoming
challenges in positive manner following is the TOWS analysis that will help in gaining better
insights.
Internal factors
External factors Strengths Weakness
Opportunities Having the wide
Diversity and range of
products the company
would be able to create
new opportunities for
itself in undiscovered
areas around the world
(Saidmamatov and
et.al., 2021)
Declining sales and
supply issues on
online platform could
be overcome through
adding low cost
suppliers that will help
in faster distribution
and maximizing the
revenues for the firm
in the future
Threats Providing more
discounts and offers
Having the high prices
of the products might

for maintaining the
brand loyalty might
cause serious risk for
growth of the business
as sometimes it might
result in loss or
declining profits for
firm.
force the customers in
target market to shift
to other local brands
that are offering the
quality products as
low prices.
Critical reflection of key findings and evaluate how they influence the decision-making process.
From the overall report I have analysed that every company whether big or small need to
take the business decisions in way that does not harm the working of other departments and
result in looses in the future. Furthermore, I have learnt that very firm need to hire expert team
of qualified individuals that will conduct the internal and external analysis based on their
knowledge and findings through data collection. Also, such analysis is very much required
because it helps the company and employees in knowing the right direction and further help
them know the future possible threats so that risk management plan could be developed well in
advance (Gottfried and et.al., 2018). Moreover, I have also realized that PESTLE analysis is very
much required while bringing any innovative service or product within the industry as all the
competitors, new government policies, existing environmental concerns etc. would be clearly
known so that based on that all the employee efforts might be utilized in right manner. Also,
such type of external analysis will help company in planning effective marketing strategies so
that maximums ales might be generated in the future.
Moreover, I have learnt that through this analysis the marketing costs of the firm will also
could be reduced to the grate extent as possible threats within and outside the workplace would
be clearly known. Also, my knowledge after this report had been increased in SWOT as I have
learnt that this internal analysis helps the company in managing all the employees and various
department through identifying the respective strengths so that more resources could be put in
those areas for assuring future success (Asadpourian, Rahimian and Gholamrezai, 2020).
Furthermore, I have realized that maintaining the business stability and workplace harmony so
that effective decision could be made requires full support from the management. Moreover, this

is only possible when all the internal factors are known clearly and also made understood to all
the employees so that positive outcomes are derived in the end. Furthermore, when the threats
and weakness are identified than various department managers would be able to collect useful
information from various employees so that better solutions than might be identified in easier
manner.
Also, one of the major key findings is that if interrelationship between all external and
internal factors are been identified at early stage than it would help the managers to solve
various business problems at early stage. Furthermore, all the possible weakness than through the
TOWS analysis might be converted into opportunities so that better situation could be made out
of worse. Moreover, I have also developed my understanding that external factors that are been
identified in the PESTLE analysis and are having negative impact might be turned out to be
positive if complete market analysis is been done.
CONCLUSION
From the above project it can be concluded that analysing the business environment is
important for the firms so that efficiency in different operations might be made in best of manner
. Also, the study had identified the impact of internal and external environment of marks and
Spencer through conducting the SWOT and PESTLE analysis in detail. Also, through such
analysis detailed description of the resource used within the business and various future threats
and opportunities had also been identified so that best plans might be made. Furthermore,
effective interrelationship of various factors had also been analysed through applying the TOWS
analysis under this report. Lastly, understanding and knowledge from the overall report had also
been discussed through providing the critical reflection in detail.

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