TASK 1 4 Introduction Business environment en - comprises of PESTEL ANALYSIS 4 SWOT ANALYSIS 5 Demand and supply 6 Graphic 6 Conclusion
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Contemporary BusinessEnvironment
Table of ContentsTASK 1............................................................................................................................................4Introduction..................................................................................................................................4PESTEL ANALYSIS..................................................................................................................4SWOT ANALYSIS.....................................................................................................................5Demand and supply.....................................................................................................................6Graphic........................................................................................................................................6Conclusion...................................................................................................................................7TASK 2............................................................................................................................................8a. Current position and debate related to the Brexit situation......................................................8b. Obstacles being faced in during the Brexit situation...............................................................9c. Effects of Brexit.....................................................................................................................10d. Conclusion as well as Recommendation related to the Brexit..............................................10REFERENCES..............................................................................................................................13
TASK 1IntroductionBusiness environment en - comprises of all the internal as well as external factors whichare having both the positive as well as negative impact on the working of the company. Thepresent report is based on Marks and Spencer which is one of the major British multinationalretailer business firm which was founded in the year 1884. This company is engaged in retailbusiness services which are selling high quality clothes, food as well as home products across theworld. Marks and Spencer is currently having its business operations in 1463 places worldwidewith revenue of £10377.3 million as per 2019 and 80787 number of employees working therein.PESTEL ANALYSISWith the help of pestle analysis, Marks & Spencer can easily determine all the macroenvironmental factors influencing its business operations related to coming up with new producti.e. Leather bags in the market place:Political – Changes in government policies, taxation rules plays important role in affectingmarketing strategies of M & S (Prajogo, 2016). Also, due to high cost of structure in the globalmarket it has negatively affected the initiatives and marketing programmes as undertaken forintroducing new product in the market.Economical – Discounted pricing strategies as adopted by its rivalry firms for capturing marketshare has resulted in loss to M & S as it always focuses on delivering quality products to itscustomers across the globe. Thus, it makes the product more expensive as compared to others.Social – For capturing current market share and opportunities, it is very much important forMarks & Spencer to formulate effective strategies for new segment of markets. By consideringthe ethics, cultural norms and beliefs of the society, M & S can design its product as per thesefactors.Technological – By using better improved techniques, business processes M & S can strengthenits business profits as well as market share by delivering quality product at reasonable pricing.This will assist in decreasing the overall cost of production along with increase in customer aswell as market base.Legal – For gaining competitive advantages in the market, it is very much essential for everybusiness organisation to make compliance of every legal as well as regulatory frameworks. M &
S before launching its product in the global market has to understand and adhere to all principlesand regulations as laid down by such market country (Deasy and et.al., 2016).Environmental – Before coming in market with new product, considering environmentalfriendly and sustainable aspects of it can help M & S in gaining competitive edge. By deliveringenvironment friendly product to environment conscious customers, it can help M & S in buildingcustomer loyalty base as well.SWOT ANALYSISStrengths Strong brand image: M & S has strong brand image as it target potential segment. Speciallycompany has a good brand image in clothing industry and customers trust the brand. Ascompany is introducing leather bags, due to its powerful brand image it will be easy for them tomarket its products and satisfy them. Customers expect quality products and company is able toprovide customers with quality products.Multichannel presence: Company sells its products through both online, offline and offerfranchising. Company has a strong customer base as its customers are across the world(Kljucnikov and et.al., 2016). It is beneficial for company to offer new products like leather bagunder its brand name as the brand is successful in making customers familiar with its name andstring brand Image. Weakness Poor supply chain:One of the major weakness of company is that it has poor supply chainscalability, M & S are trying to offer their leather bags globally but it is difficult for them tosupply its products at large scale. Company has also tried to offer its products through onlinestore but suppliers were unable to deliver at some location which may affects businessreputation.Increase in the labour cost:M & S has a drawback of producing products through oldtechniques instead of using new techniques (Bah and Fang, 2015). Company utilizes thetechnology or effective used of manual work which in turn increases the cost of labour.OpportunitiesNew segments: M & S has an opportunity to enter in new segments as there is a demand ofleather nags which are trending in the market. Company should invest in this so that its marketshare increases and profits can be maximized. Company can split the customers on the bases of
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