Context of Business

This report discusses the SWOT and PESTLE analysis of the M&S company along with the evaluation of how changes in pestle factors leads to opportunity as well as threat. It also recommends the best and suitable leadership style as given by Daniel Goleman’s that will help the company to achieve its goals and objectives. Lastly, the report will critically discuss the Corporate Social Responsibilities (CSR) process of the M&S company.

CONTEXT OF BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
SWOT and PESTLE Analysis of Mark Spencer (M&S).............................................................3
Evaluating the PESTEL analysis and how it has influenced the opportunity for M&S..............5
Recommendation.........................................................................................................................6
Critical comment on Corporate Social Responsibility (CSR) of the M&S company.................8
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

INTRODUCTION
The context of the business is to determine the factors such as internal and external
business environment factors that affects the operations of a business. This report will be based
on the UK based company name Marks and Spenser (M&S). M&S is a British multinational
retailer company which offers cloths, home and food products to the national as well as
international customers. The company have its headquarter in London, UK with having 78000
employees working for the success of the business (Yu, Cao and Tan, 2018). The report will
discuss the SWOT and PESTLE analysis of the M&S company along with the evaluation of how
changes in pestle factors leads to opportunity as well as threat. Further, the report will
recommend the best and suitable leadership style as given by Daniel Goleman’s that will help the
company to achieve its goals and objectives. In order to justify the recommended choice, the
report will use the literature review and analyse the style in critical and deep way. Examples will
also be provided by the report in the same context. Lastly, the report will critically discuss the
Corporate Social Responsibilities (CSR) process of the M&S company.
SWOT and PESTLE Analysis of Mark Spencer (M&S)
Swot and Pestle analysis is strategic tool that help the company in identifying the external
and internal threats and opportunity that allow organization to enhance the overall performance
of the company in the competitive market (Leiber, Stensaker and Harvey., 2018). Moreover,
SWOT helps the company in knowing the external and internal factors that will affect the
organization in negative and positive way. Along with this, SWOT stands for strengths,
weakness, opportunity and technologies that allow company in taking the action related to these
factors.
On the other hand, PESTEL analysis will allow firm to know the external factor that will
affect the growth of the company in the competitive market (Mark Spencer Pestle., 2021).
Moreover, PESTEL stands for Political, legal, social, technological, environmental and
economical. Mark and spencer have various threats and opportunity that are mentioned in
details below:
SWOT
 Strengths: The prominent strengths of the company are strong brand image that has
helped the organization in selling their products easily. Along with this, company make

innovative products that contributed in sustaining in the competitive market. In addition
to this, firm has focus on enhancing the customer experience by taking the feedback and
conducting surveys in the market.
 Weakness: The company weaknesses are low customer satisfaction because of bad
return policy and as well as poor store facilities has led in decreasing the brand name of
the firm (Abdel-Basset, Mohamed and Smarandache, 2018). Moreover, the company is
mainly depending on the market of United Kingdome.
 Opportunity: Mark spencer can open a new segment such as organization can expand in
the Asia as there is high demand of ethic wear. That can contribute in increasing the
overall profit of the firm. Along with this, the firm deals in diversified products such
as cloths, furniture and food that has contributed in earning stable income.
 Threat: Mark spencer face high competition likewise Zara, H&M that has created
hinderance in the growth of the firm in the competitive market (Wang and Wang, 2020).
Moreover, the organization face challenges related to the rapid changes in the fashion
trends.
PESTLE:
 Political: This include the policies made by the government such as Brexit has that has
adversely affect the political and business environment of the UK. Moreover, the
taxation policy has led in loss of the company (Christodoulou and Cullinane, 2019).
Along with this, the company fair trade policy has helped the organization reducing the
operational cost such as policy has led in reduction of the salt in the food products that
has benefit the overall performance of the Mark Spencer.
 Economical: The factor related to the discount of the competitor has been the biggest
issues for the firm. The organization have to make changes in the price due to the
fluctuating cost of the competitors’ products. That lead in low sales of the premium
goods produce by Mark and Spencer.
 Social: This factor include demographic like population, age, Ethnic as well as culture
trend. Moreover, the company face conflicts related to the fashion ethnic as the
company only make the fashion cloths according to the British taste. That has degreased
the brand image of the company in the Asian country (Phan, 2021). Moreover, the

organization follow social development policy such as Corporate social responsibility
that has helped the firm in improving the market position of the firm.
 Technological: The organization has taken the advantage of the innovative technology in
order to enhance the productivity of company in the external market. Such as Mark and
Spencer offer their customer with self- checkout at store as well as sales assistance
mobile app that help customer in ordering the product online if not available at store. This
has contributed in increasing the large customer as well as sales of organization
effectively. Another factor is online shopping that has benefited the company in
expanding their business world-wide as well as helped in identifying the taste and
preference of the targeted customer.
 Legal: The legal factor is consisting of laws and regulation made by the government for
running the business in the market. Moreover, M&S follow all the norms of each country
it has established their company in order to avoid the intervention of government.
Additionally, the organization has a legal suit relating to the financial dispute with
Frascati landlords.
 Environmental: In order to maintain the brand image of the company in the local and
international market. The organization make use of environmentally friendly products
such as paper bags and organic food products that has led in managing the sustainable
position in the market (Jafari and Othman Soleiman, 2020). Moreover, the company has
face environmental threat pandemic that has decrease the supply and demand of the
company.
Evaluating the PESTEL analysis and how it has influenced the opportunity for M&S
Pestle analysis helps the organization in gaining the large picture of the changes in
industry environment. Moreover, it allows the firm in identifying the factors that can positively
and negatively affect the performance of the company. Mark and Spencer have many faced
political threats related to Brexit that has reduce the investment and recession as well as shortage
of skilled labour. That has affected the operational cost because the company has to develop the
training and development programmes in order enhance the skills of their employees. Along with
this, restriction on free trade has led in decreasing the import and export of the company and
affect the production cost of business.

Moreover, technological factor has provided M&S with opportunity such as digital
marketing that has contributed in enhancing the performance of the business (Namugenyi,
Nimmagadda, and Reiners, 2019). Along with this, the company has their official website and
SMM that allow the firm to sale their products globally and has built the brand image of the firm
in the international market. It has allowed the organization to promote their products and create
awareness among the customer.
However, Mark and Spencer have various strengths such as strong brand that has helped
the organization in penetrating in the new market. That has contributed in increasing the sales of
the organization in the competitive market. Moreover, the company has starting using the
digital tools such as data analytical tool that has allowed the frim in identifying the needs and
demands of the targeted customer. That has resulted in meeting the weakness related to the
dissatisfaction of customer. Along with the, organization has starting using the advance
machinery in order to leverage the innovative products. That has contributed in meeting the
economic threat such as new trendy products. In addition, to this company offer weekend
sales as well discount and offer on big festival. That has led in reducing the threat of high
competition. Furthermore, the organization should enter in the Asian market by making the
product according to the ethics of the customer as it allows to build the strong relation with
them (Fozer and et.al., 2017). Thus, by using the advance technology Mark and Spencer has
increased the overall productivity of the firm in the competitive market. In addition to this,
organization follows norms set by the government related to the pandemic that has result in
dealing with the threat of pandemic.
Recommendation
As per the Daniel Goleman’s, the leadership style is based on the emotional intelligence
of the employees which helps the company to improve their productivity and its own
performance. Basically, the author offers six type of leadership style such as commanding,
visionary, democratic, coaching, affiliative and pacesetting leadership style. Out of the all styles,
the best leadership style recommended to the M&S company in order to achieve their business
objectives are Affiliative Leadership Style. It is because this style focus more on the people and
building strong relation with them.
Affiliative Leadership Style:

As per the opinion of the Thoha and Avandana (2020), with the application of this style
within the business the managers and team leaders start making and keeping their team members
happy and satisfied by knowing their issues & concerns. It means that the affiliative leaders are
the one that beliefs in making the strong relation and bond with its member so that they work
with free mind and complete their targets on time. It is important to know and understand that
employees are the real assets of the company that works for the success of the company. If the
company will not pay attention towards their difficulties than the chances of low productivity
and satisfaction level of employees increases. The impact of which people will start quite the job.
So, in order to resolve this issues the company have to implement affiliative leadership style in
their workplace culture. For example, M&S company faces a difficulty of poor performance of
employees and as the organization is highly volatile and need reassurance so applying this theory
will help them to achieve their objectives. This style indicate that the people come first and in
order to motivate them to work even at the time of tight deadlines and workload this style is
crucial.
In order to support the above statement, the Avandana and Thoha (2021), has stated that
the company need to implement various feedback, recognition and reward system in order to
realize people that company cares about its employees. Not only that, this style is best for
maintaining the trust and harmony in the team with the help of which M&S company can adapt
the opportunities available to them. This generally helps in bringing the people closer at the
workplace and help each other at the time of need. The primary task of the leaders in this style is
that they need to understand their each employees beliefs and culture and make them happy &
satisfied at workplace. For example, with the help of this, the managers and leaders of M&S
company can bring large amount of flexibility within the organization and also implement
positive communication environment. The positive positive communication feedback with the
each workers helps the M&S company to boost their staffs morale and encouraged them towards
the dynamic and complex business environment. Along with that, the people of company feels
less stress and the chances of interpersonal conflicts between the employees easily addressed and
also removed.
However, the Chaudhary and Dhakal (2021), argued that too much dependence on the
affiliative leadership style is also risky for the company because it starts affecting the internal
system of the business. For example, if the M&S company totally depends upon this style and

leaders start overlooking under-performance in order to maintain strong relation. Then the rest of
the employees also start thinking that mediocre performance is also acceptable in the company.
The impact of which M&S company unable to achieve its targets and objectives. That’s why it is
also advisable to the company that in normal days they have to stick to their normal leadership
style such as authoritative method to maintain the performance of the employees. They can
only use this style when their is high level of stress arises at the workplace because of the
changes in the environment and workload. If the M&S company fails to do so then it may lead to
loss of long-term goals and unrealistic emotional dependence on the leaders. The situation of
avoiding negative feedback for maintaining harmony can lead to unsolved problem. Thus, the
management of the company have to analyse deeply the outcome of the leadership style over the
companies performance.
Critical comment on Corporate Social Responsibility (CSR) of the M&S company
Marks and Spenser (M&S) has always follow all their responsibilities towards their key
stakeholders, local community and society in order to make them satisfied with the business
operations. Because of its CSR practices, their values, quality innovation and trust are increasing
day by day. This various steps taken by the M&S company in order to deal with every sensitive
issues in the environment are as follows:
 Charity and community funding donation: The local stores of the M&S company do
charity and donation for the education and well fare of the children and poor families. For
this, the company generally make small and limited budgets and support the local
community in reducing issues which affects the overall health of country.
 Clothing and equipment: Along with that, the M&S company also donates the returned
clothes and part profit of the business to the NewLife. They also helps the disabled people
by providing them vital equipment and medical facility. The company basically donates
around 400 pieces of equipment in each year to the disabled people (Sughra, 2019).
 Food: The food manager of each local stores of the M&S company manage the process of
donating the date-expired products to the charitable organization. Along with that they also
distribute the surplus foods that are not sale in market due to low demand to community
food network so that needy people will get it free of cost.

 Christmas cards: Along with that the company select their existing corporate partnerships
for the charities each year rather than selecting the bids from their Christmas cards. This
helps the company to improve their brand image in the eye of the UK government and the
local customers (Choudhary and Piparo, 2019).
 Climate change and major disaster: Beside this, the company also donate in various
climate changes and natural disaster situations in order to help people as well as government.
They provide foods and other products to the people and deliver it directly from its local
stores. This strong linkage with the local stores helps the people in great extent.
 Waste Management: The M&S company for their Plan A waste management, stops
sending the waste to landfill and started using it for producing green energy. The company
also reduces the non-plastic packaging of their products by 25% and use plastic bags instead.
They also cut the carrier bags use by 33% (Yu, Cao and Tan, 2018).
 Employees health, safety and well-beings: The company also work towards providing
whole information about the heath and safety choices to their employees. It means that
company provides health insurance facility to each of their employees along with that the
company also implemented fire alarms everywhere at the stores for their safety and security.
 Sustainable raw material: The five year Eco plan i.e., Plan A has stated that the company
will only uses the raw material which come from the most sustainable sources. This includes
that they collect only used woods which is recycled or provided by certified sustainable
sources. Along with that the company also increases the sales of organic food triple every
year. This will help the company in increasing the sales and brand value in the local as well
as international market (Zulu, 2020).
However, besides enjoying the benefits from this CSR practices, the M&S company also
faces many issues and barriers. This includes the high cost and time consuming practices which
requires special attention. For example, for providing donation and charities the company need to
earn high profits and to reduce wastage they need to implement various recycle plants. This is
very expensive and any wrong decision made by the company can cause heavy loss to the
company. Along with that the changes in ecosystem has causes unemployment in many areas
and the impact of which unemployment rate of the country has increases. That’s why in order to
resolve and address the above barriers, it is advisable to the M&S company that they provide

proper training and development session to its employees so that they can learn new innovation
and technology (Kwon, Bae and Kim, 2021). Beside this the company can also acquire funds
from the market in the form of debts to purchase the plants and equipment which they donates to
the disabled people.
CONCLUSION
From summing up the above information, it has concluded that M&S company are
enjoying various opportunities and also faces threat because of the change in external and
internal business environment. The report has concluded the external analysis using the PESTLE
model and internal analysis of the company using the SWOT model. Further in the same context,
the report has evaluated which factors influenced opportunity and threat and how the company
can adapt it to gain competitive advantage. Further, the report has also concluded the CSR
practices adopted by the company which helps them in improving the brand image of the
business. Lastly, the report has also researched about the leadership style and recommend one of
the best leadership style such as affiliative leadership style that help the company in achieving
aims and objectives. The report has critically analyse and present the information in LR form and
also provides its example as well.

REFERENCES
Books and journals
Thoha, N. and Avandana, I. M. N. W., 2020. Project Managers' Leadership Styles and Their
Effects on Project Management Performance. Pertanika Journal of Social Sciences &
Humanities. 28(2).
Avandana, I. M. N. W. and Thoha, N., 2021. THE EFFECT OF PROJECT
MANAGERS’LEADERSHIP STYLES ON PROJECT MANAGEMENT
PERFORMANCE (CASE STUDY ON PLTU XYZ 2 X 30 MW). ON ECONOMICS
AND BUSINESS 2016, p.866.
Chaudhary, M. K. and Dhakal, A. P., 2021. An Existing Leadership Styles Among Scholarly
Leaders in Nepalese Higher Education. Psychology and Education Journal. 58(3).
pp.1172-1179.
Sughra, G., 2019. CSR, a Pretence or a Bona Fide; Case Study of M&S and Next. In The
Components of Sustainable Development (pp. 53-61). Springer, Singapore.
Choudhary, B. and Piparo, T. L., 2019. Case Study–Strategy 2020 for M&S.
Yu, M., Cao, D. and Tan, J. Y., 2018. CSR-consumption paradox: examination of UK apparel
companies. Journal of Fashion Marketing and Management: An International Journal.
Zulu, S. B., 2020. The role of CSR in brand equity: Case of selected Woolworths stores in
Pietermaritzburg (Doctoral dissertation).
Kwon, H., Bae, J. and Kim, S., 2021. Introduction: Emerging MNCs and socioeconomic
dynamics in Asia. Journal of Asian Sociology, 50(1), pp.1-8.
Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic
AHP–SWOT analysis for strategic planning and decision-making. Symmetry. 10(4).
p.116.
Wang, J. and Wang, Z., 2020. Strengths, weaknesses, opportunities and threats (Swot) analysis
of china’s prevention and control strategy for the covid-19 epidemic. International
Journal of Environmental Research and Public Health.17(7). p.2235.
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Leiber, T., Stensaker, B. and Harvey, L. C., 2018. Bridging theory and practice of impact
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Namugenyi, C., Nimmagadda, S. L. and Reiners, T., 2019. Design of a SWOT analysis model
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Christodoulou, A. and Cullinane, K., 2019. Identifying the main opportunities and challenges
from the implementation of a port energy management system: A SWOT/PESTLE
analysis. Sustainability. 11(21). p.6046.
Phan, S., 2021. The effect of PESTLE factors on development of e-commerce. International
Journal of Data and Network Science. 5(1). pp.37-42.
Jafari, H. and Othman Soleiman, K., 2020. Assessment of effective environmental factors in oil
and gas industry policies using PESTLE & SWOT analysis (case study: Kurdistan,
Iraq). Environmental Sciences.18(3). pp.134-151.
Fozer, D. and et.al., 2017. Life cycle, PESTLE and multi-criteria decision analysis of CCS
process alternatives. Journal of cleaner production. 147. pp.75-85.
Online
Mark Spencer Pestle., 2021. [Online]. Available through < https://pestleanalysis.com/marks-and-
spencer-pestle-analysis/>.
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