Analysis of Macro and Internal Environment of Marks & Spencer

Business
Strategy

Contents

INTRODUCTION
Business Strategy refers to the different types of competitive moves as well as actions
which are undertaken by an organization so that it can acquire a distinct competitive edge within
the market in the future time period (Akter and et.al., 2016). By setting a right business strategy,
an organization can set short-term and long-term goals for the future time period. Thus it is the
role of the managers of a company to make sure that they are able to prepare a business strategy
which will assist them a lot in getting strategic directions which have to be followed in the
future. This will ensure sustainable growth and maximization of profits of the firm. For this
report, Marks & Spencer has been selected. It is a British multinational company which
specializes in clothing, home products and food products. In this assignment, detailed focus will
be made on analysis of impact of macro environment on an organization, assessment of internal
environment. Additionally, use of Porter’s five forces and application of models, theories and
concepts will also be discussed as a part of this project.
TASK 1
P1: Macro environment of an organization
The macro environment of an organization consists of different types of external factors
which are required to be considered by its managers to ensure that the right strategic direction is
provided to the company for the future (Amran and et.al., 2016). It can be analyzed using
PESTEL analysis. The analysis in the context of Marks & Spencer is as follows-
Political factors- These factors can affect any organization. This is so because political
conditions in some countries can change very quickly which will lead towards creation of an
impact on the business operations of the companies. Marks & Spencer is affected because they
can either increase or decrease its level of profits.
 Positive impact- If the government policy in a particular country is in firm’s favor then it
will lead towards creation of a positive impact on the business operations. Thus in this
way the profits of Marks & Spencer can rise.
 Negative impact- If there is no political stability then it can lead towards problems and
issues for the organization. In this case the profits of Marks & Spencer can decrease.
Economic factors- These factors are important for a company because they are
dependent on the economic conditions which are dynamic in nature and can change
anytime (Anwar and Hasnu, 2016). Marks & Spencer is also affected by the influence
which they put on its operations.

 Positive impact- Booming economic growth of a country can create opportunity for an
organization to grow. In this case, Marks & Spencer can witness rapid growth in the
future.
 Negative impact- If there is a fall in exchange rate then this can create problems and
issues for the organizations dealing internationally. Thus for Marks & Spencer this
situation leads to lower profits.
Social factors- They are important for the companies because they create an impact on
the social situations which the firm is facing in the society. Therefore the managers of
Marks & Spencer are required to consider them seriously.
 Positive impact- If there is a change in the lifestyle attitudes of the customers then it can
be beneficial for organizations. Thus companies like Marks & Spencer can benefit a lot
from it.
 Negative impact- If there are cultural barriers present in the society then it can affect the
firms. Companies like Marks & Spencer can get affected due to them.
Technological factors- They are quite necessary for the organizations because
technology changes very fast and therefore this can affect the companies. The managers
of Marks & Spencer are required to take into consideration these factors.
 Positive impact- If the companies are able to innovate using the correct techniques then
the technological factors will have a positive impact on their operations. Thus Marks &
Spencer needs to consider this.
 Negative impact- If the firms are not aware about the technological change then this can
create problems for them. Therefore Marks & Spencer can get affected.
Environmental factors- These factors are important for the companies because the
customers nowadays have become environment-conscious (Anwar, Shah and Hasnu,
2016). Therefore the managers of Marks & Spencer are required to take these factors into
consideration.
 Positive impact- If the companies are able to adopt eco-friendly policies then this will
lead towards increase in their profits. Therefore the managers of Marks & Spencer have
to consider this.