Business Strategies & Global Trends

This assignment delves into the complexities of conducting business in a globalized world. Students are tasked with analyzing various aspects such as corporate citizenship, sustainability, ethical leadership, and the influence of technology on business processes. The assignment emphasizes the application of analytical frameworks like PESTEL and SWOT to assess internal and external factors impacting businesses operating within a dynamic international environment.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
PESTEL and SWOT can be used to examine and analysis the business environment...............1
TASK 2............................................................................................................................................7
Examine how company is governed and managed.....................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
.......................................................................................................................................................10

INTRODUCTION
Business environment is a combination of internal and external factors that affect overall
performance of the business functions which include employees, customers, supply and demand.
Both factors influence the operations of the business which aid in improving the overall
performance of the company is appropriate manner (Welter and Smallbone, 2011). Basically, it
is an effective process of gathering all the relevant information as well as data which is
uncontrollable by the business. Present report is based on Marks & Spencer's, it is a British
multinational retail company which provide home and luxury products to customers. This report
covers PESTEL and SWOT analysis which aid in evaluating the actual performance of the
company. Along with this, how a company is governed and managed their activities is also
mentioned in this report.
TASK 1
PESTEL and SWOT can be used to examine and analysis the business environment
Business environment is an effective activity for gathering and collecting all the relevant
information which helps in measuring the internal and external factors. Both factors affect the
overall performance of the company. Basically, environmental analysis is an strategic tool which
identify all the factors that affect the company performance. For example, healthy and safety act
as well as regulation is related to the external factors but it directly impact on business operation.
With the help of business environment a firm easily identify their opportunities and threats which
aid in implementing their activities effectively (Hämäläinen, Näyhä and Pesonen, 2011). For
achieving positive results business continuously monitor their environment and also use
effective business practices so that they improve their performance. In this PESTEL and SWOT
analysis in more important for the company to evaluating the present performance so that they
continue succeed in the market for longer time period. The main reason behind conducting the
environmental analysis is define that what is happening in the business and outside of the
company which helps in increasing the productivity level. Basically business environment
divided in two factors which are:
Internal business environment includes various machinery, stakeholders like customers,
employees , suppliers and shareholders and other internal factors are equipment, technologies,
1

organizational culture, management systems, financial management and many more elements
that affect internal business performance.
External business environment include various competitors, customers behaviour,
economy, social environment all are uncontrollable by the business that affect the overall
performance of the company. For better business environment company conduct various models
which are as follows:
PESTEL analysis of Marks & Spencer's:
(Source: PESTEL analysis, 2017)
Political factor: These factors define and run by the government bodies. It defines the
current political situation of UK. Political factors also define the political condition that affect
the overall economy and business performance. It includes various laws, regulations and act that
affect the operation of the company. Instability in political factors are negatively affect the
business performance because it decreases the productivity of the company. For example, if
government set health and safety rules for the employees which directly affect their performance
and productivity. If company do not follow all the rules then they fails in offering the quality
2
Illustration 1: PESTEL analysis

products to their customers. In this the Marks & Spencer believes that interaction with
government so that they easily protect their operation in effective manner.
Economical factor: These factors directly affect the company’s sales. In this Marks &
Spencer's focus on their quality products which aid in attracting large number of customers.
Economic factors include inflation rate, interest rates, taxation changes, economic growth and
many more which directly impact on company performance in the market place. In this the
higher income of the peoples helps in increasing the demand of the products. With the help of
this company easily set effective strategies in order to maintain sustainability in their process and
get more profits from their customers by delivering quality products according to their
requirements. One of the best example of economic factors is the inflation rate, which affect the
product demand and price which further impact on company’s sale. Because this rate affects the
purchasing power of the customers. It is more important for the Marks & Spencer's to set their
activities which aid in achieving the long term and short-term goals. In recent time, the actual
economic situation in UK is it is favourable with low to moderate interest with helps in maintain
the healthy economy. It needs to the company to focus of new fashion trends and younger
generation to attain more income in appropriate manner.
Social factor: Social trends directly impact on demand of the company products. Because
it includes customers taste and preference which is continuously change with the time. It affects
the overall profitability of the company. Social factors include life style of the customers,
attitude, culture and values which influence the overall performance of the company. In this the
main and important duty of the manager is to manage and formulate the effective policies which
helps in defining the better social scenario. In essence social factors affect the marketing
strategies because it totally depended on the peoples like customers who buy companies products
for full fill their needs. In this Marks & Spencer's needs to modify their policies and strategies
according to customers so that they can offer better products and services and can enlighten its
customers. For example, in recent time Marks & Spencer's improving their clothing line as per
their customers taste which aid in increasing their product demand that directly increase their
profitability level inn appropriate manner. With the help of this factors company easily identify
the customers demand and marketing trends effectively and get better results from their clients.
Technological factor: Evaluation in technologies is more effective for the company to
operate their operating process in market place. In retail company modern IT system helps in
3

improving the productivity level which aid in generating the more profitability in better way
(Scheer, 2012). Success of the company is depend on better technologies so that it is more
important for the company to include new and advance technologies in their process.
Implementing new technologies helps in reducing the cost and also improve the quality of the
products which aid in attracting large number of customers towards the company. Better quality
define the innovation which aid in developing the consumers benefits. It is more important for
the Mark & Spencer to update their technologies continuously so that they easily define higher
production with more efficiency. For example, strong social media and online presence helps in
generating more revenue by delivering quality products to their customers. With the help of
managing better technologies company easily manager their brand image at market place.
Environmental factor: Marks & Spencer is one of the biggest brand in market place that
provide quality products to their customers (Pham, Segers and Gijselaers, 2013). In this the
change in climate affect the business performance and trade of the company. To maintain better
environment Marks & Spencer's set their own green policy which aid in achieving the better
results in appropriate manner. For this they also reduce the use of plastic bags which harm to the
environment and also polluted. They use effective resources which aid in recycling the wastage
products and also motivate their employees to use eco-friendly techniques so that they attain
higher efficiency in appropriate manner.
Legal factor: Legislation are more important for the company to follow it effectively in
order to maintain their process is ethical manner. All rules and legislation are always change so
that it is important responsibility of the company to update every year. In this various legal
factors are set by government so that company need to be aware about all these such as
production regulations, employment regulation, health and safety and many more regulation
which helps in maintaining the better business environment that improve overall productivity of
the company. By following all thee regulation company reduce the chances of creating any kind
of issue in their activities so that they easily maintain their brand image in market place.
Importance of conducting PESTEL analysis: The main purpose of analysis PESTEL is
to identify the risk factors which aid in improving the overall performance of the company in
effective manner. It is a strategic planning method which helps in reducing the threats by
evaluating all the factors appropriately (Othman and Rahman, 2014). This process aid in
increasing the product development. With the help of PESTEL analysis the company easily
4

understand the impact of environment on the company performance and also influence strategic
development which helps in defining better results. Mark's & Spencer's easily analysis their
competitors and actual performance in the market. They also find out the overall impact of al
these factors ion their operation process which aid in improving the overall productivity of the
company.
SWOT analysis of Marks & Spencer's: It define the internal terms of the business like
their strength and weaknesses and also evaluate the externals terms like threats and opportunities.
It also define the actual facts which aid in evaluating the overall performance of the company.
This method conduct by the Marks & Spencer's to analysis their current situation and also
implement effective strategies to take competitive advantage in market place.
(Source: Duncan Haughey, 2017)
Strength Weaknesses
 Marks & Spencer's is one of the power
full retail brand in UK (Onetti and et.
al., 2012).
 They have their own brand labels
 Segmentation in clothing line is a
weakness of the company.
 New and existing competitors is also a
5
Illustration 2: SWOT analysis

which attract the large number of
customers.
 They perceive about their products as
value for money. So that they focus on
their quality.
 They have wide range of variety
products in various countries which aid
in generating more revenue in
appropriate way.
 Marks & Spencer's has their various
outlets at different countries.
 Better customers services is also a
strength of the company.
 Experiences staff members and
employees are also a positive point of
the company so that they deliver
quality services to their customers.
big weakness of Mark & Spencer.
 Poor technologies is a main reason of
reducing the sale.
 They do not have proper knowledge
about new market trends and younger
generation because they use old
classical fashion range (Lee, Olson and
Trimi, 2012).
 Lack of communication with their
customers so that they fails in
providing better customers services.
Opportunities Threats
 Marks & Spencer has enter in e-
business which aid in expanding their
business at international market.
 They also wants to expansing in food
industry because they have customers
trust for their innovative products.
 They also develop their websites (Khan
and Quadri, 2012).
 They set new segmentation in market
which helps in offering quality products
to make profit.
 Unnecessary government rules and
policies is a big threat of the company.
 Increased competition in market is also
a threat for Marks & Spencer's.
 Change in social environment is a
threat which reduce the company sales.
6

Importance of conducting SWOT analysis: It is an effective process in which the company
easily analysis their internal and external factors that affect the overall performance of the
company. With the help of SWOT analysis Marks & Spencer's specify the actual action to
identify the better results in effective way.
TASK 2
Examine how company is governed and managed
Company is totally based on their structure because they formulate their all activities
according to their structure (Organizational Structures. 2017). Organizational scope is related
top the company structure so that it is more important for the company to effectively manage
their structure.
Overview of the company:
Marks & Spencer is a British multinational retail company which founded by the Michael
Marks and Thomas in 1884. They set their outlets in various countries and provide home and
luxury food products to their customers in order to get higher satisfaction level by them. In
recent time they needs to focus on international market. They also increased number of simply
food to their local people in order to satisfy their needs.
Structure of the company:
In this Mark & Spencer follow flat organizational structure in which they define limited
levels between administration and front line employees. This type of structure improve
employees performance and also include in decision making process. With the help of this they
easily encourage their workers towards the work and also helps in decision making process
(Crane and Matten, 2016). This structure decrease the bureaucracy and define the skilled and
experience employees so that they take best decision. In this the better communication with
lower management and upper managers helps in solving the problems in effective way. This type
of structure has pyramid shape in this all the order and policies are provided by the upper
authorities to their employees and the problems and obstacles are mentioned by the lower level
management to the upper authority. In this all the responsibilities are individuals so that all the
employees are able take quick decision. Marks & Spencer's has more than 3000 employees who
all are specialized with their own field and complete their task effectively. They update their
policies in order to maintain the ethical work environment. With the help of flatter organizational
7

structure they easily increase their demand because they provide better training and development
programs to their employees so that they easily manage their all activities.
By using better strategies and policies they easily manager their process and motivate
their employees toward the work with aid in improving the overall quality (Christopher and
Holweg, 2011). Better management of all the activities helps in achieving the desirable goals and
objectives. For this they provide better training and development programs to their employees so
that they perform their best and get positive results. They also set the time for each and every
task which aid in defining better results in appropriate manner. They also used various effective
techniques in their operational process to maintain the better results that directly contribute in
overall performance of the company (Budhwar and Debrah, 2013). Marks & Spencer's use
reward and incentive system to their employees fro encouraging their morale so that they
improve their performance and productivity in order to deliver quality products to their
customers and get their higher satisfaction. Effective management of all the process and
activities helps in improving the brand image in market place.
CONCLUSION
From the above mentioned report, it can be concluded that analysing the business
environment is more important for the company to evaluate the actual performance in the
market. For analysing the better environment Marks & Spencer's conduct PESTEL and SWOT
analysis to measure their actual productivity and also define that how to maintain their process
effectively. With the help of effective analysis of the environment they easily find their
opportunities threats in order to develop their performance and capture large market share form
its rivals. It also summarized that by using this strategies tools company easily managed and
governed their whole process as well as activities which aid in taking strong place in competitive
market.
8

REFERENCES
Books and journals
Budhwar, P. S. and Debrah, Y. A. Eds., 2013. Human resource management in developing
countries. Routledge.
Christopher, M. and Holweg, M., 2011. “Supply Chain 2.0”: managing supply chains in the era
of turbulence. International Journal of Physical Distribution & Logistics Management.
41(1). pp.63-82.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Hämäläinen, S., Näyhä, A. and Pesonen, H. L., 2011. Forest biorefineries–A business
opportunity for the Finnish forest cluster. Journal of Cleaner Production. 19(16).
pp.1884-1891.
Khan, R. A. and Quadri, S. M. K., 2012. Business intelligence: an integrated approach. Business
Intelligence Journal. 5(1). pp.64-70.
Lee, S. M., Olson, D. L. and Trimi, S., 2012. Co-innovation: convergenomics, collaboration, and
co-creation for organizational values. Management Decision. 50(5). pp.817-831.
Onetti, A. and et. al., 2012. Internationalization, innovation and entrepreneurship: business
models for new technology-based firms. Journal of Management & Governance. 16(3).
pp.337-368.
Othman, Z. and Rahman, R. A., 2014. Attributes of ethical leadership in leading good
governance. International Journal of Business and Society. 15(2). p.359.
Pham, N. T., Segers, M. S. and Gijselaers, W. H., 2013. Effects of work environment on transfer
of training: empirical evidence from Master of Business Administration programs in
Vietnam. International Journal of Training and Development. 17(1). pp.1-19.
Scheer, A. W., 2012. Business process engineering: reference models for industrial enterprises.
Springer Science & Business Media.
Welter, F. and Smallbone, D., 2011. Institutional perspectives on entrepreneurial behavior in
challenging environments. Journal of Small Business Management. 49(1). pp.107-125.
Online
Organizational Structures. 2017. [Online]. Available
through.<https://www.tutorialspoint.com/management_concepts/organizational_structur
es.htm>. [Accessed on 1st November 2017].
Scanning the Environment: PESTEL Analysis. 2017. [Online]. Available
through.<http://www.business-to-you.com/scanning-the-environment-pestel-analysis/>.
[Accessed on 1st November 2017].
SWOT ANALYSIS. 2017. [Online]. Available through.<https://www.projectsmart.co.uk/swot-
analysis.php>. [Accessed on 1st November 2017].
9

10