Business Strategy: Impact and Influence of Macro Environment, Internal Environment and Capabilities, Porter’s Five Forces

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
Impact and Influence of Macro Environment..............................................................................3
LO2..................................................................................................................................................6
Internal Environment and Capabilities........................................................................................6
LO3..................................................................................................................................................9
Porter’s Five Forces.....................................................................................................................9
LO4................................................................................................................................................12
Strategic Plan for M&S.............................................................................................................12
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Business strategy can be defined as set of actions through which business enables it to
achieve its objectives and vision. Strategies that are developed are intended to achieve all the
objectives are required to be effective and effectiveness of the strategy depends on the factors of
environment that has been analysed regarding their impact on the business. Business
environment refers to collective factors that affect operations and functioning of the business and
the environment in which business organisations functions. This business and its environment
have been divided in two types this is internal analysis and external analysis of the business.
External environment has further been divided in two parts that are Micro and Macro
environment. This report will discuss about business strategy in context of M&S, British
multinational retailer founded in 1884 and headquartered at London, England. M&S specializes
in selling clothing, home products and food products. M&S operates at around 1463 locations
worldwide. Number of employees employed at 20000 employees and is mainly dependant on
UK market for its revenue having around 959 stores across UK. This report will include analysis
of M&S and its internal and external environmental factors and this will be followed by
developing strategic plan for M&S.
LO1
Impact and Influence of Macro Environment
Pestle analysis of Marks and Spencer
In this report to analysis the better understanding of the external factors Pestle analysis
will does not so that there is a better understanding of the existing and Future market of the
Marks and Spencer.
Political factors
There are the two political factors that impact Marks and Spencer such as Free trade and Brexit.
Free trade- Firms operates widely in the United Kingdom but also at the same time it has
locations all over the world. Free trade enables Marks and Spencer to import several foreign
goods sales within their stores at low prices and at the same time maintains a healthy profit
margin.

Brexit- Due to the Brexit, there is a major impact within the operations of Marks and Spencer. It
was resulted in the loss of several free trade polices. Factors such as Political instability,tax
policy ,corruption also impacted within the firm negatively.
Economic Factors
One of the biggest factor within a retail industry is price as it is seen from last few years that
budget retailers are come with best discounts within United Kingdom. From the budget
supermarkets to the budget clothing some of these brands copy the products and provides
consumers at lower prices (Perera,2017).
Socio cultural Factor
Due to its longstanding existence it is household name as it is not only youth oriented brand.
Most consumers of the firm are interlinked with the brand with past and for that it loses the
majority of the consumers from the current generation. The firm has also capable of the factor
through the ready meals as it has been a rapid rise of ready meals across the UK and world as
well. Firm is also one of top current provider of ready meals in the United Kingdom.
Technological factors
Nowadays Technology are changing continuously as within the introduction of the food joints
and self checkout based is current technology ,firms has also introduced several self checked
stores as well as plan to enhance the use of Artificial intelligence
within future. These are the stores that help the firms to save money and time that is spent during
the cashier counts (Perera,2017). Along this side Marks and Spencer also established a store that
is eCommerce store , an effective store in the United Kingdom. All the products can be found on
the online websites and also with such stores most of the people can save their time by shopping
online at Marks and Spencer. It is a type of the acceptance of the new technology may aids the
brand to makes the stronger presence among al the generations of the people especially the
young ones. Online shopping is one of the major trends followed by all over the world. People
are busy in their life that they don't have time for traditional shopping and prefer home delivery
or online shopping. With the help of online shopping people gets each and everything from their
home such as grocery items to clothing items.
Legal Factor
This factor of the macro environment includes all those legislations and regulations that
govern functioning of the M&S in a given market sector. There are several legislations and