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

This report provides an analysis of the business environment and the impact of Brexit and COVID-19 pandemic on Marks & Spencer, a leading multinational retailer. It includes PESTLE and SWOT analysis, suitable leadership style, and corporate social responsibilities. The report recommends transformational leadership style for Marks and Spencer.

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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PESTLE Analysis of Marks & Spencer
The organisation performs PESTLE analysis for acknowledging the factors which affects the
respective business externally (Dacko-Pikiewicz, 2019). Moreover, the markets for products are
very much dynamic and there is need for management to understand regarding factors which
affects business and aids them in determining the specific market.
 Political factors: Respective factors relate to overall aspects which highlights the
government participation level into business. Moreover, market policy, global exchange
policy and many more. In context of Brexit and current Covid-19 pandemic, Marks and
Spencer have to opt free trade as it is known as the most optimistic aspects of present day
politics that has been developed among a multitude of countries. Also, this permits them
to import foreign goods for sale into its stores at lowest price then while maintaining a
healthy profitability margin.
 Economical factors: The factors such as inflation rates, exchanges and other others are
essential aspects that represent economic factors influences business. As price has always
been huge factor within retail sector, but the last some years it has been viewed that
various budget retailer pop up into UK. So, due to changes in Brexit and COVID-19
pandemic situation respective company have to perform some changes into their business
operation such as they have to sell its products at discounted price in comparison to their
customers.
 Social factors: Respective factors incorporate lifestyle, climate, trends and many more
related with customers desires. So, because of the Brexit and COVID-19 pandemic Marks
& Spencer have to do few modifications in its business operations. For instance, as
society has viewed a broad scale enhance into consumption of ready meal.
 Technological factors: This factor incorporates ranges of hi tech technology and way the
specific industry gets impacted. Moreover, this alliance with digital and mobile, the
leading company sells their products upon apps and also provide discounts (de D’Amico,
2019). In respect to Marks and Spencer, it a huge step for meeting the technological
maximise trends. Therefore, this affects optimistically within Brexit and COVID-19
pandemic situation
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 Legal factors: This incorporates the company’s rules, norms and others. additionally, this
permit Marks and Spencer to comply trade legislation into its policy related to firm
licensing and many more. In addition to this, because of Brexit and present COVID-19
pandemic respective organisation have to do few changes in its business as they have to
follow new norms such as tax policies and others that imposed at current by respective
country government.
 Environmental factors: The several factors which incorporates mainly on environment
by company such as raw materials, greenhouse dioxide and others. In relation to changes
in Brexit and COVID -19, for maintaining its reputation respective company pledged to
be much sustainable retailer upon numerous situations. In addition to this, it associates to
multitude of environmental factors which are present into acquisition of clothing, home
and foods products (like carbon emissions from manufacturing procedures). It shifts for
becoming a more sustainable retailer (Diebold and Rudebusch, 2021).
TASK 2
Based upon the TASK 1, this has been analysed that The PESTLE factors has influenced
opportunities and threats for business. As respective firm specifically have few optimistic points
into present business arena, that with extensive free trade policies, ready meals trends, various
technological trends and push for eco-friendly brands and goods (Suppatvech, Godsell and Day,
2019). Such as, the adaption of hi- technology respective firm has able to 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. In addition to this, because
of becoming a sustainable retailer 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. Apart from this, due to changes in Brexit and COVID-
19 pandemic situation respective company have to perform some changes into their business
operation such as they have to sell its products at discounted price in comparison to their
customers. Also, Marks & Spencer have to do few more modifications in its business operations.
For instance, as society has viewed a broad scale enhance into consumption of ready meal.
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TASK 3
Leadership is taken into consideration as an art work through which it is able to be capable
of encouraging establishments of people to carry out closer to accomplishing not unusual goals
in the entity (Hrechyshkina and Samakhavets, 2019). Furthermore, the leadership style is applied
in the company to facilitate steering to the workforce, for executing tactics in addition to plans
for encouraging the organizational frame of human beings individuals. So, those patterns are
labelled in lots of types. Some of them are being referred to underneath:
 Participative style: The key essence of the respective form of duty is egalitarian. This is
often a form of participatory manage wherein personnel have provided the rights to
incorporate right into a preference making way. Only for precise sections which have a
nice type of members of the circle of relatives with entire employees and amongst
administrative and workers must this may be the proper form. Moreover, the contact is
attained thru manners, despite the fact that at a similar time supplying attention to belief
in addition to reviews of customers.
 Transactional style: This mainly used to administration for cantering on penalty and
bonus aspects. Moreover, these deals occurs here within its supporters and manager. This
specific plan might perform in a position wherein incorporated employees have just
financial rewards. In addition to this, information is spread depends on requirements so
task are performed and activities is pressured whole over particular style of leadership
(Jorge and et.al., 2020).
 Delegative leadership: This is in reality taken into consideration as control style which
centred upon acquiring capability for the members of organization. These had been
attained through giving complete authority to body of workers or contributors upon
organization. Within event, the human beings in organization are successfully
knowledgeable further to inclined to control established practices via its personal, this
could be green technique. Also, contact is executed in techniques so that is allowed to
degree of forces similarly to responsibility associated with administrative collectively
with such limits additionally as organisational quantity (Shamne, Milovanova and
Malushko, 2019).
 Authoritarian leadership style: This leadership style is used by management wherein
management control is provided exclusively within leadership positions and then this can
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enforce goals as well as decide team performance. In addition to this, it is effectual for
sections wherein specific directions are needed by sub direct and also in event of time
period. Additionally, there is only down touch as well as not any feedback is considered
for operative directors.
 Transformational leadership style: A pioneers pass representatives established on this
precise detail thru being its fashion image comparatively to empowering them related to
the authority of inclination making. Individual management style is energetic good
enough without delay into a task while there may be extra grounded association motive
yet wherein edge of individuals are propelled via inspirations that is received from
manipulate. Particular fashion is presenting various stress upon associations. The contact
moves into diverse guidelines thinking about this control style is predicated upon direct
interactions further to practices is completed in appropriate manner.
So, the Transformational management is powerful for Marks and Spencer as encourage team
of workers primarily based upon this particular issue thru being its style icon in addition to
encouraging them together with the authority of preference making into Brexit and present day-
to-day Covid-19 pandemic state of affairs additionally (Mousa and et.al., 2021).
TASK 4
Therefore, after analysing diverse type of leadership style, Marks and Spencer
management is suggested to execute transformational leadership style for aforementioned reason:
The turnover of employees is corresponded to the body of workers share who continuously
leaving the corporation. As entity is a kind of employer in which complete employees are in
direct interaction with capability clients, this is additionally vital for them to hold that seasoned
those who region interested to assemble stronger patron family individuals, so this fashion of
manage suits the commercial business enterprise successfully. Along with this,
Transformational manipulate is robust for Marks and Spencer as encourage workforce based
totally absolutely upon this particular detail via being its fashion icon as well as encouraging
them at the aspect of the authority of choice making into Brexit and current-day Covid-19
pandemic scenario additionally (Miao, 2019). It indicates the undertaking of company it truly is
taken into consideration as an indispensable a part of each agency. Moreover, it can best
accomplish some detail into marketplace vicinity for longer durations similarly to in case
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significance of partnership preserve more potent partnership internal their centred clients and the
crucial component deliver of control style.
TASK 5
The corporate social responsibilities mainly relates with mechanism of providing firm, its
owners as well as society responsibility (Li, 2020). Moreover, employers usually think about
several kinds of affects that have upon society and its ownership hugely with aids of
organization’s responsibilities. They key statement that represents value of corporate social
responsibilities are described underneath:
 Developed goodwill: A firm would formulate a optimistic reputation within consumers’
minds mainly with aids of CSR’ enforcement but this may enable them to influence
business entity.
 Profit for society: Company do not obtain profits by its own performance but also any
charity services as well as be supportive towards societal structure.
 Economic benefits: Performing small modifications into branding, owing to
environmental development concepts would undertakes to be much cost effective tactics
for coordination with similar period as corporate social responsibilities is valued
(Martinho, Gomes and Yasin, 2019).
Corporate social responsibility of Marks and Spencer
Marks and Spencer has always undertaken accountabilities to consumers, staff, partners,
suppliers and local communities. Moreover, by performing business in an accountable manner
that underpins its values- quality, trust, service and innovation. Currently, the brand is arduously
care about each sensitive issues of society be it charity for society, problems relevant to climate
modification, sustainable raw material management, industrial waste management and others.
For instance, its Plan A is the way to assists develop sustainable future through being a business
which enables their consumers to have a optimistic affects upon well being, communities as well
as the planet by all that they perform. Some points elated to their Plan A are described below:
Climate change
As a part of plan A, Five year ‘eco plan’ this intents to do operations within United
Kingdom as well as republic of Ireland carbon neutral as well as to aids clients and suppliers for
reducing its emission as well.
Waste management
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As a part of plan A, Respective firm has committed to stop sending waste to landfill from
United Kingdom as well as Irish stores, warehouses and offices; minimize usages of packaging
as well as carrier bags (CSR OF Marks & Spencer, 2021).
TASK 6
Reflection
Through the above assessment, I took in various elements of detail in regard to key
arranging, slightly any standards, information and fashion of the board. Besides, concurrently as
performing evaluation for unique file, I likewise will realize that that is important to decide a few
traits, flimsy spot, ability results and dangers so that it will put together for possible sports
activities. During planning, a define of out of doors environmental factors is essential for
devising a relevant in addition to powerful techniques. I had moreover identified that when CSR
sports is sizeable for developing in addition business enterprise validity. Also, I will perceive that
as a trough or proprietor how basic to publish to the affordable administration fashion, at the
same time as now not set in stone that how casing of employees will create internal pleasant
artwork vicinity. Each management of the board has advantages in addition to obstacles so that is
crucial to perform a powerful assessment and thereafter opt the best leadership style based
completely totally on organization. Furthermore, the transformative leadership style manipulate
is effective steady with Marks and Spencer outlets.
CONCLUSION
As per the above report, it has been concluded that 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. In addition to
this, organisation performs PESTLE analysis for acknowledging the factors which affects the
respective business externally. Apart from this, corporate social responsibilities mainly relates
with mechanism of providing firm, its owners as well as society responsibility.
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REFERENCES
Books & Journals
Crane, A. and et.al., 2019. Business ethics: Managing corporate citizenship and sustainability in
the age of globalization. Oxford University Press, USA.
Dacko-Pikiewicz, Z., 2019. Building a family business brand in the context of the concept of
stakeholder-oriented value. In Forum Scientiae Oeconomia (Vol. 7, No. 2, pp. 37-51).
Wydawnictwo Naukowe Akademii WSB.
de D’Amico, R.L., 2019. Socio-political context in which the business of women’s sport takes
place in Latin America. In Routledge Handbook of the Business of Women’s Sport (pp.
280-291). Routledge.
Diebold, F.X. and Rudebusch, G.D., 2021. Business cycles. Princeton University Press.
Hrechyshkina, O. and Samakhavets, M., 2019. Changing business environment in
Belarus. Journal of Geography, Politics and Society, 9(1), pp.1-11.
Jorge, L.F., and et.al., 2020, October. Conducting an Enterprise Social Media Initiative in the
Digital Transformation Context. In 17th International Conference on Intellectual Capital,
Knowledge Management & Organisational Learning ICICKM 2020 (p. 187).
Li, T., 2020. A SWOT analysis of China's air cargo sector in the context of COVID-19
pandemic. Journal of air transport management, 88, p.101875.
Martinho, J.L., Gomes, C.F. and Yasin, M.M., 2019. Information technology and the supply
chain integration: a business executives' context. International Journal of Business
Information Systems, 30(3), pp.277-299.
Miao, Y., Du, R., Li, J. and Westland, J.C., 2019. A two-sided matching model in the context of
B2B export cross-border e-commerce. Electronic Commerce Research, 19(4), pp.841-
861.
Mousa, M., and et.al., 2021. Why him not ME? Inclusive/exclusive talent identification in
academic public context. International Journal of Public Administration, pp.1-13.
Shamne, N.L., Milovanova, M.V. and Malushko, E.Y., 2019, March. Cross-cultural professional
communication in the context of globalization. In IOP Conference Series: Materials
Science and Engineering (Vol. 483, No. 1, p. 012081). IOP Publishing.
Suppatvech, C., Godsell, J. and Day, S., 2019. The roles of internet of things technology in
enabling servitized business models: A systematic literature review. Industrial Marketing
Management, 82, pp.70-86.
Online
SWOT Analysis of Marks & Spencer, 2021. [Online]. Available through:<
https://swotandpestleanalysis.com/swot-analysis-of-mark-and-spencer/>.
CSR OF Marks & Spencer, 2021. [Online]. Available through:<
https://corporate.marksandspencer.com/sustainability>.
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