Comparing Marks & Spencer and Next: Internal and External Analysis

Comparing between
Marks & Spencer and
Next on the basis of
internal and external
analysis

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ...............................................................................................................................3
External strategy models.......................................................................................................3
Internal Strategy models.........................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic planning models, tools and methods are designed for increasing the support of
organisation through explicating a competitive-edge in market. The main role of strategic
planning tools is to formulate an effective action-plan for achieving organisational goals and
objectives with minimum use of resources. This report compare two organisation and they are
Marks & Spencer and NEXT Plc to understand and formulate competitive strategy. Moreover,
this report highlights on internal and external strategy models and it will also focus on
performing work with analytical techniques (Bolland, 2017).
MAIN BODY
External strategy models
External and inorganic growth undertake strategies that are used to enhance and improve
output or business reach. This also aids respective organisation to perform work with use of
resources that are developed outside the business premises. Along with this, resources are
obtained according to merger/acquisition and partnership with other organisation. PESTLE
model is formulated for understand of external strategy. So compare between two organisation is
mention as follow:
PESTLE Analysis
Basis Marks & Spencer NEXT Plc
Political Free trade is one of the most positive
aspects for modern day and it is
established between number of
countries. The major market and sales
of M&S products is obtained from UK.
So this is used to manage and perform
in local area with more efficiency. On
the other side, Brexit create problems as
decision to leave Europe directly
impacts on company operations
because it generate a loss of numerous
On the other side, political factor
plays an important role and there are
different factors exists which generate
challenges for NEXT Plc plc to
manage profits within a certain
market and country. NEXT Plc
management expose themselves in
different political system and
environment. So it create challenges
for management to manage work in
effective manner as retail market of

trade practices (Budge, Chin and
Minero, 2017). Thus, it generate
difficulty to perform work in
international market.
UK face heavy competition from local
and international organisation that
formulates barrier for company.
Economic Price is always recognise as an
important factor that is stated in retail
industry, as from last decades there are
numerous budgets generate problems
for organisation. With formulate budget
new clothing store generate challenges
for premium brands such as M&S. It
create complexity for organisation to
manage and perform work in
competitive market. So to encourage
customer's for purchase of products
M&S management offer them at lower
price.
Macro economic factor include saving
rate, interest rate, inflation rate and
many more. This determine that
aggregate demand and investment
within economy generate challenges
for organisation. This also states
authority of NEXT Plc plc control and
manage cost. With analyse of this also
states individuals to manage and
control task by monitoring as well as
controlling work with proper manner
(Chaplin and et. al., 2018).
Social-
CULTURAL
The term social-cultural and way to
perform things that is used by
organisation aids towards completion
of task through which individuals
understand and belief about value and
attitude through which customer's
perform their role in retail industry.
Demographics and skill level of
population define about increase in
retail industry to analyse and
understand about interest role.
Technological
factor
The firm understand about manage and
develop of roles through which task and
The speed of technology factor
facilitates and understand about