Business Environment In M&S - Assignment

BUSINESS ENVIRONMENT

Table of content
TASK 4............................................................................................................................................3
P5. PESTLE analysis of marks and spencer................................................................................3
P6. Swot and Porters five forces of M&S....................................................................................4
REFERENCES................................................................................................................................7

TASK 4
P5. PESTLE analysis of marks and spencer
The PESTLE analysis of the retail industry of the Mark and Spencer is the detail essay of the
important key factors that influence the macro environment of the industry. It helps the industry
to analysis the market and determine the marketing strategy of the company against the
competitors(Prajogo, 2016.).
Detail analysis of the mark and spencer
Political: Consist of foreign trade policy, government policy, tax policy, political stability etc.
Due to the fair trade policy that the company M&S has led to the substitutable reduction in cost
of the sourcing which is somehow beneficial to the company. According to the policy the content
of the salt and fat is reduced in the M&S foods and recycled packaging was established. M&S
was the first major retailer which entered in the fair trade path, along with the both sector of food
and clothing. Changing the taxation and the government policy. - due the heavy losses are faced
by the retail sector the governments are trying to have the operating taxation and laws for the
retailer(Erasmus and et.al., 2016).
Economical: Consist of exchange rate, interest rate, inflation rate, economic growth etc.
Competitors discount pricing- M&S usually work on the quality of the service or goods which
sometimes only led to the3 short term losses. The customer was duel y attracted to the quality the
company is proving them. But due to the crisis the customer turns out to be more sensitive
toward the product.
Socio-cultural: Consist of age distribution, income distribution, lifestyle, attitude and cultural
behaviour(Pan, Chen, and Zhan, 2018). Being organic – due to the new environment the
company has to think about the new concept that the new generation is now days is facing to
have. The green and the organic want the rethink to give the push forward to the brand. Change
in new generation- due to the chsnge4 in the generation the company also have to change the
strategy to target the new market and the company has to analysis the demand of the new
comers.
Technological: Consist of level of innovation, automation, R&D, and awareness(Bull and et.al.,
2016).
Technologies – to strength the security and reduce the risk the company has to make a strong

grip over the digital marketing as the consumers are getting more into the technology rather than
the in store purchase. To take full advantage of the shift of the consumer toward the technology
the M&S has to move to digital medium
Environmental: Consist of ecological and environmental aspect
Environmental friendly with sustainable products- eco-friendly and the environmental stable
products are most important in the working scenario of the company(Sammut‐Bonnici, Galea,
D., 2015). The youth of the company is majorly depending on the eco-friendly products.
Less energy- the company is going to launch menswear range that will utilize less chemical
water and the energy in the manufacturing process.
Legal: Consist of health and safety laws, consumer protection laws, antitrust laws etc
(Mathooko, Ogutu, 2015).
Frascati landlord financial dispute- In the Dublin suburb of Blackrock, there in the financial
dispute with the landlord of the frascati shopping centre the matter come to the end in the
Commercial court, taking forward to the fast division and the high court(Pan, Chen,Zhan, 2018)
Omni channel- there was choice given to the consumer as the Omni channel experience allowing
them the option of the home delivery and the store pick up.
P6. Swot and Porters five forces of M&S
Amongst the leading companies in retail industry, Marks and Spencer's comes on top. The
variety and ranges of products is very wide and caters to various needs of its users. It is also
listed on London Stock Exchange (LSE).
SWOT Analysis: -
Strengths:- The retail giant, Marks and Spencer's, possess many strengths.
 Brand Recognition :- Due to its many store outlets spread all over the world in many
countries; the brand Marks and Spencer's is recognised internationally. Customers
visiting the store know that they will find whatever they are looking for in a Marks and
Spencer's store(SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats,
2019).
 Wide variety and range of products: - Beginning from fruits and vegetables; Marks and
Spencer's now have ventured into a variety of products like clothes etc. and is referred to

as a 'luxury' brand. It has 1463 stores (2019) spread all over the world employing 80787
people (2018).
 Popular Designer Brands:- Marks and Spencer's has an exclusive range of products
ranging from kids wear to men and women wear.
Weaknesses:-
 Repugnant Technology:- the store follows old techniques rather than upgrading to the
new and more efficient, user friendly technology. This increases the cost of manual
labour and working cost.
 Poor Publicity: - Marks and Spencer's have a negative publicity of catering to the needs
of old people only even though it has products for every gender and category.
Opportunities: -
Market Segmentation: - The store has the opportunity to expand the market by this technique
of market segmenting(Prajogo, 2016).
Internalization: - While expanding and increasing its global presence, the store; if it
accommodates itself according to the cultural values of the market; then customers accept
products more easily.
Threats: - Competition Increase: - Since Marks and Spencer's poor technology and the increasing
competition; there is a risk of the company losing its business.
Porter's Five Force Analysis:
Threat of New Entrants: - The threat is very high on radar. 'Innovation of new products',
'Developing R&D' are a few ways to reduce the threat.
Threat of Substitute Products and Services: - The threat of products and service substitution is
very High. With food business being already challenged by stores like Tesco etc.; it is also very
easy to copy designs and duplicate them at a lower cost. Being more 'Service Oriented' and
'Understanding Core Need of Customers' can help them(What is five forces analysis, 2019).

Bargaining Power of Buyers: - If the customer base is more targeted, the customers become
more powerful. Marks and Spencer's faces a relatively High bargaining power by customers. By
building 'Brand Loyalty' of customers and 'Reducing Negative Perceptions' of customers and by
'Increasing the Customer Base' can help Marks and Spencer's in reducing the customer deviation
to other brands(Phadermrod and et.al., 2019).
Bargaining Power of Suppliers: - Since the suppliers are spread out all over the world and are
mainly outsourced; Marks and Spencer's have an upper hand over suppliers i.e. bargaining power
is 'low'. 'Development of dedicated supplier owner relationship' and 'efficiently Maintaining
Supply Chain' can further reduce the power of suppliers.
Rivalry Amongst Existing Competitors: - The present competition for Marks and Spencer's is
very 'intense'. By 'Differentiating their Product' and by 'Building Scale' so that it can compete in
a better way; by dong these Marks and Spencer's can reduce competition.

REFERENCES
Books and journals
Bull and et.al., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of
the ecosystem services framework. Ecosystem services. 17. pp.99-111.
Erasmus and et.al., 2016. Introduction to business management. Oxford University Press
Southern Africa.
Kharub, M. and Sharma, R., 2017. Comparative analyses of competitive advantage using Porter
diamond model (the case of MSMEs in Himachal Pradesh). Competitiveness Review: An
International Business Journal. 27(2). pp.132-160.
Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in
Kenya. International Journal of Educational Management. 29(3). pp.334-354.
Pan, W., Chen, L. and Zhan, W., 2018. PESTEL analysis of construction productivity
enhancement strategies: A case study of three economies. Journal of Management in
Engineering. 35(1). p.05018013.
Patil, D.A., 2018. Sustainable Bio-Energy through Bagasse Co-Generation Technology: A
PESTEL Analysis of Sugar Hub of India, Solapur. Journal of Emerging Technologies
and Innovative Research. 5(12).
Phadermrod and et.al., 2019. Importance-performance analysis based SWOT
analysis. International Journal of Information Management. 44. pp.194-203.
Prajogo, D.I., 2016. The strategic fit between innovation strategies and business environment in
delivering business performance. International Journal of Production Economics. 171.
pp.241-249.
Sammut‐Bonnici, T. and Galea, D., 2015. SWOT analysis. Wiley Encyclopedia of Management,
pp.1-8.
Online

SWOT Analysis: Strengths, Weaknesses, Opportunities, and Threats. 2018 [Online] Available
through <https://ctb.ku.edu/en/table-of-contents/assessment/assessing-community-needs-and-
resources/swot-analysis/main>
What is five forces analysis. 2019 [Online] Available through <https://www.visual-
paradigm.com/guide/strategic-analysis/what-is-five-forces-analysis/>