Analysis of [Marks and Spencer]'s Business Environment

This presentation provides an analysis of the business environment of Marks and Spencer. It explores the internal and external factors that impact the company's performance. The presentation discusses the importance of the business environment, different types of business environments, and examines the micro-environment and macro-environment of Marks and Spencer. It concludes with key insights and references for further reading.

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Analysis of [Marks and Spencer]’s Busines Environment

What is the Business Environment?
Definition-1 Business environment is basically define as sum or collection of different internal as
well as external factors such as consumer needs, expectations, employee, management, supplier
and government.
Definition- 2 it refers to the external factor and institution that are usually beyond control of
enterprise and directly affecting on the business performance of operational activities.

Importance of the Business
Environment
• M&S brings both opportunities as well as threat in M&S enterprise
• Business environment will help for M&S in identifying the business planning of M&S in context of
decision
• It helps to find the competitive level of M&S in marketplace.
• To expand the M&S enterprise through efficiency of business environment.
• Adoption of efficient business environment by M&S will fulfill the needs of a consumer

Types of Business Environment
Internal
External –
micro- and
macro-

Micro-Environment of [M&S] –
Competitive Forces
• It is based on the holistic strategy framework or tool that make a strategic decision away from just
analysing current business competition.
• By using porter’s five force model, it is analysing the competition level in UK marketplace. M&S
has been used the Porter Five force model that help for building a sustainable competitive
advantage.

Micro-Environment – Continued
• Bargaining power of Buyer- it is higher the bargaining power of buyer in M&S because
potential consumer can easily switch from one brand to another. M&S is premium brand
which has been fixed the price or cost of products. For example- During Covid-19, it is
likely to slow down UK economy, cut the price or cost and always focused on the
consumer needs.

Macro-Environment of [M&S] –
Wider Environment
Pestle analysis

The Macro-Environment – Continued
• Political Factor- this type of factor is affecting M&S, one of the positive aspect of political factor is
that modern-day politics are free trade, which has been established coordination between
different countries. Moreover, Due to COVID-19, political factor is huge impact on the M&S
operations. Especially in term of trade regulations, tariffs but many possible result or outcome are
less than its idea for UK retailers.

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The Macro-Environment – Continued
• Economic Factor- this type of factor is related to the economic aspect which directly affecting
M&S. price has become consider as big factor in M&S but last few decade have identified the
various budget retailers in UK. Therefore, different competitors are stealing away market share
from one brand to another. Due to COVID-19, it is majorly affecting the M&S business while
reducing the economic condition or situation. Many consumers are avoided to purchase items.

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Macro-Environment of [M&S] –
Wider Environment
SWOT analysis

Conclusion

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References
• Nudurupati, S.S., Garnego, P. and Bititci, U.S., 2020. Impact of the changing business environment
on performance measurement and management practices. International Journal of Production
Economics. p.107942.
• Opeyemi, I.S. and Ajeh, D.O., 2020. The Entrepreneur and Effective Conflict Management in a
Business Environment. KIU Journal of Humanities. 5(3). pp.83-90.