Context of Business: PESTLE and SWOT Analysis of Marks & Spencer and Leadership Styles

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................4
TASK 3............................................................................................................................................5
TASK 4............................................................................................................................................6
TASK 5............................................................................................................................................7
TASK 6............................................................................................................................................8
Reflection...............................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Context of business includes knowledge of several factors that affects ventures from various
point of views. Moreover, it incorporates for whom decision are formed and what the enterprises
is eventually desires to obtain. Additionally, business environment may formulate simple idea a
master plan. It plays a crucial role into upcoming with offensive strategy or reacting towards a
change. In addition to this, leadership facilitates guidance; energise the staff and drives towards
expected business goals (Crane and et.al., 2019). For the report, the undertaken company is
Marks and Spencer which is one of the leading multinational retailers. Its headquarters is in
London, United Kingdom and it deals in clothing, home and food products. The topics which are
going to be covered in this report are Pestle and SWOT analysis as well as various styles of
leadership. Moreover, suggest suitable style of leadership and corporate social responsibilities
into process. Along with this, reflection is also provided in this report.
TASK 1
Marks & Spencer is one of the leading UK’s multinational retailer firms. The Michael
Mark and Thomas Spencer were founder of retail company as well as they formed the Brand in
year 1884. Its headquarters is in London, England, United Kingdom. As per the approximation,
the annual revenue of M&S in 2020 was 10,181.9 million pounds. Among which, the retail brand
income was 24.4 million pounds. Along with this, as UK business environment is facing tough
time into upcoming years with affects of Brexit and COVID-19 pandemic. So, in this new
normal situation, Marks & Spencer need to re-invent themselves to become a profitable business.
For instances, they performed SWOT and PESTLE analysis which are highlighted below:
SWOT Analysis of Marks & Spencer.
STRENGTHS WEAKNESSES
Global brands: As per the approximation,
Marks & Spencer has above 1463 location
points into ASIA, Middle East and Europe as
well as among that 1035 stores are within
United Kingdom. Due to Brexit and current
Covid-19 pandemic, respective brand also
provides goods & services online in addition
Increasing cost: Respective firm implements
several of its operations manually. Also, this
undertakes a various of time as well as needs a
huge number of individuals to finish. As an
outcome, this enhances cost. Due to Brexit and
current Covid-19 pandemic, If retail firm
mechanizes their operations with latest
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with their physical store. Along with this, they
assisted firm to reach an international
audiences.
Market value: As per the Forbes, the market
capitalisation of M&S in year 2020 was 2.3
billion dollars. Moreover, it ranked at 1944
th position upon the list of global 2000 firms in
2020.
technology, this would able o develop the
effectiveness of company.
Lower sales: The M&S sale has been reducing
for last some years even before the pandemic
of Covid-19. For instance, their annual sales
decreased essentially in year 2019 because of
bad system of supply chain management. Also,
there was a shortage of supply at the time of
Christmas of year 2017. Those incidents of
shortage of supplies are minimising.
OPPORTUNITIES THREATS
E-commerce: Due to Brexit and current
Covid-19 pandemic, respective firm has
already introduced an online store. But this is
not matching the standards of Alibaba,
Amazon and others world’s growing online
stores. In case retail firm reaches the world’s
developing e-commerce level then this would
need a plethora of capital as well as
commitment. Also, respective firm have a
stronger retail base, currently the firm have to
proliferate within online world.
Expansion: Respective company have
currently launched retail stores within Brazil,
Russia, India, Poland and Indonesia. In
addition to this, the customer market into those
countries is very huge. Thus, the retail brand
has further explored into that marketplace as
well as exploits maximum opportunities. In
fact, organisation plans to open up above 100
new outlets by the end of the year 2022.
Controversies: Due to Brexit and current
Covid-19 pandemic, they are introducing
uniform Hijab within United Kingdom, self
payment as well as checkout system or anti
Israel protest. Moreover, such stands into
western market has sent a wrong message into
customers market as well as offended various
individuals. Also, the retail brand should keep
in mind the marketing trends before
introducing it within marketplace.
Competitors: TESCO, Debenhams, ASDA,
John Lewis Walmart and many more are few
of its key rivals of Marks & Spencer. In
addition to this, the presence of whole these
rivals within marketplace has made the retail
sector very much competitive (SWOT Analysis
of Marks & Spencer, 2021).
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