Context of Business: SWOT and PESTEL analysis of Marks & Spencer

Context of Business
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY .................................................................................................................................3
SWOT and PESTEL analysis in context to Marks & Spencer...................................................3
Analysis of Pestel and Swot models...........................................................................................7
Recommendation of a suitable leadership style for today's business environment in context to
Marks & Spencer........................................................................................................................8
Critically comment on Corporate Social Responsibilities in the processes using evidence
from your research in context to mark and Spencer:................................................................10
CONCLUSION ............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
The business context relates to the analysis and evaluation of numerous components
affecting the course of a business. A business operates in a dynamic environment and is likely to
influence from different factors. It attempts to gain understanding of implications of business
aspects and helps in formulation of effective strategies. The business context is being analysed
by IT department to determine viability of an organisation and for potential strategical
development. The following report will conduct theoretical analysis in context of an
organisation. The chosen company for this study is Marks & Spencer, which is a UK based
popular clothing brand operating worldwide. This report will discuss changes occurring in
business and their impact on the future progress of the company. It includes identification of
requirements to maintain sustainability and ethical behaviour in relation to social, cultural,
economic and environmental issues. In addition to this, it determine the importance of leadership
and development of appropriate strategies in order to meet interest of stakeholders.
MAIN BODY
SWOT and PESTEL analysis in context to Marks & Spencer
About the company
Marks & Spencer is one of the leading retail brand which is headquartered in London
which deals in clothing, selling home and food products. It was founded in 1884 by Michael
Marks and Thomas Spencer which is currently carrying its operations globally that shows it has
high market presence. The company owns 1,037 stores situated in United kingdom and
remarkable due to huge base of loyal customers.
SWOT
SWOT is a strategic business tool which is used to determine strengths and weaknesses
in internal environment as well as opportunities and threats in external environment of a
business entity(Dimanche, 2018). It is helpful in gaining understanding about the position of an
organisation in the market. Swot analysis in context to Marks & Spencer is conducted and
explained below.
Strengths
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 High market presence: M&S owns numerous stores globally and performs their
operations in UK to a large extent. The company owns 17% share of UK market in
clothing sector denoting high market presence.
 Brand value: The company is a remarkable UK brand which is highly popular
worldwide and it is known for their quality in products. The company has established
their brand relevance and is renowned for providing great value to customers.
 Wide range of products: The brand offers a wide range of products including clothing
material, home appliances, skincare essentials, lingerie and other consumer goods. The
brand satisfy requirements and wants of the audience through making availability of
varieties of products.
 Strong financial position: The company has ample of funds and capital resources due to
their high profitability margins. Due to its strong financial position, creditors and
stakeholders trust the company because they offer high creditability. The company
maintains potential amount of reserve capital which ensures its sustenance during
vulnerable times(Padash and Ghatari, 2020).
Weaknesses
 Supply chain scalability: The low supply chain scalability declines the company
performance by facing shortage of products during vulnerable times. Effective scalability
refers to the ability of logistics departments to perform according to the demand and thus
helps in management of cost.
 Product recalls: Product recalls refers to the process of obliged sales return through
vendor due to safety issues in equipments. Frequent product recalls reduce customer
satisfaction and create doubts due to lack of trust in the brand.
Opportunities
 Simplification of processes:. The procedure from manufacturing to delivery of products
to customers includes various steps which could be tiresome and time taking. The
company can widen its scope of dimensions to a whole another level by ensuring more
simplified processes of transactions(NANDA, 2020).
 Online presence: The tendency of online shopping through customers is immensely
increased specially during the pandemic. Online purchasing is highly preferred to
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