Impact and Influence of Macro Environment on M&S

Business strategy
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
P1 Impact and influence of macro environment on M&S...........................................................3
M1 Analyse macro environment and strategic management decisions.......................................5
P2 Internal environment and capability of M&S.........................................................................5
M2 Strength and weakness and internal capability of M&S.......................................................8
P3 Porter five force model of M&S.............................................................................................8
M3 Strategy to improve competitive edge based on market outcome.........................................9
PART B.........................................................................................................................................10
P4 Theories and concepts for strategic plan of M&S................................................................10
M4 Strategic management plan for M&S..................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14
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INTRODUCTION
Every business requires an effective strategy for its growth and expansion. The strategy
provides a framework that how goals ae to be attained, what tasks is to be done, etc. Also,
development of strategy depends on nature and size of business. Basically, there are 2 types of
strategies that are corporate and tactical. Alongside, on basis of goals strategies are developed. It
is important to successfully implement strategy as entire success and failure of business depends
on it. In addition, there are several factors as well that can impact on strategy. It may be internal
or external. So, they are also considered in strategy formulation (Aldea, and et.al., 2016).
In this report it will be described about impact and influence of macro environment on
organisation. Also, it will be explained about internal environment. Besides that, porter five force
model will be used and along with that concepts, models etc for strategic planning will be
discussed.
PART A
P1 Impact and influence of macro environment on M&S
A business operates in highly competitive environment. Also, there is a specific boundary
in which it operates. There are various factors which highly impact on operations of business.
These factors are macro and are not controlled by organisation. So, it led to affect on decision
making as well. Similarly, Marks and Spencer is MNC that operates at global level. Thus, pestle
model is used to evaluate macro environment factors and its impact on its operations. It is as
defined as below : (Alstete, and Beutell, 2016)
Political – this factor is related to political condition, stability, etc. of nation. Any change in this
highly impact on firm operations. This is because it results in changing trade laws, rules and
regulations, etc. that is followed by business. In present times, politics has helped in creating
strong relations between nations. So, it has led to rise in free trade in it as company is able to
expand their market in various countries. With that they are able to generate hug revenue. But on
contrary due to Brexit UK political condition will change. It will result in forming of new trade
laws with EU countries. Hence, it will be difficult for Marks and Spencer to do trade with other
countries. Thus, their operations will be highly impacted in negative way.
Economic- In this there are various factor such as foreign exchange rate, fiscal policy, inflation
rate, GDP, etc. thus, any change in this result in impacting on operations of firm. It has been
stated that due to lock down there has been negative impact and decline in GDP of major
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economies. Besides that, in UK due to Brexit there will be decline in its economic growth. So,
Marks and Spencer operations and growth will be impacted in negative way. But on other hand,
there is decrease in labour cost so it can benefit organisation in gaining market share and increase
revenue. With that firm can grow and expand in different markets (Chen, and Keung, 2019).
Social- In these the factors are related to change in taste and preference, needs, cultural ethics,
values, etc. So, any change in this highly affect on Marks and Spencer operations and growth.
Furthermore, it has been stated that due to covid 19 there is change in trends and needs of people.
Now, they are more health conscious and prefer organic foods. Thus, it has led to change in their
needs and wants. So, it has highly affected on Marks and Spencer operations and resulted in
decline in sales and profits. Besides that, the company is known for less trendy brand for
consumers. Hence, it requires for business to focus on providing trendy and organic products so
that it can grow and expand in market. In food industry company can grow by providing organic
food items.
Technological factor- It is related to advancement in technology (Davids, and Van Belle, 2017).
There has been many advancement and changes that has occurred in technology in retail sector.
It has highly affected on growth of companies in positive way. They are using technology to
expand in various countries. Here, technology such as AI, IOT, etc is implemented. Besides that,
in Marks and Spencer stores self check out system is installed. It will allow in saving time of
customer to buy and check out from store. In addition, business can focus on online channel as
well to increase sales and profits. With that they can retain customers and gain competitive
advantage in market. Furthermore, Marks and Spencer can develop their own App so it provides
ease to customer in buying of products.
Legal factor – In every nation there are different employment laws and regulations that are
followed. It is imposed by government to protect rights of employees. The laws such as health
and safety, minimum wage, etc. are some factors in it. Any change in this will impact Marks and
Spencer operations. This is because the company is operating in many nations. In UK all laws
and regulations are adhered and comply by organisation (Eker, and Eker, 2019). They ensure
that health and safety of employees is maintained. In addition, they follow equality act in hiring
of staff. There is no discrimination done. Therefore, there is positive impact on Marks and
Spencer operations.
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