Impact of External Environment and Corporate Social Responsibility on Marks and Spencer

The report summarises that Marks and Spencer is a multinational retail company of UK. There are various internal and external environment factors which impacts business operations. Effective leadership style directs personnel and company in their growth. The report entails impact that external environment have of company with application of PESTLE Analysis. It also explains corporate social responsibilities and evaluate that and explain that why is it is beneficial for the company. Lastly, it discusses the impact of Brexit and COVID-19 pandemic time for the Marks and Spencer daily activities and how they resolve this problem.

Report Writing

Executive Summary
The report summarises that Marks and Spencer is a multinational retail company of UK.
There are various internal and external environment factors which impacts business operations.
Effective leadership style directs personnel and company in their growth. The report entails
impact that external environment have of company with application of PESTLE Analysis. It also
explains corporate social responsibilities and evaluate that and explain that why is it is beneficial
for the company. Lastly, it discusses the impact of Brexit and COVID-19 pandemic time for the
Marks and Spencer daily activities and how they resolve this problem.
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Table of Contents
Executive Summary.........................................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
External environment with PESTLE analysis.............................................................................3
Recommendation of suitable leadership style.............................................................................5
Corporate social responsibility of the company..........................................................................7
Effects of Brexit and COVID-19 pandemics...............................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11
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INTRODUCTION
Leadership style is very essential for the organisation to maintain the work place of the
company it use by the company to achieve their company objective. PESTLE Analysis helps the
company to identified the external environment and support the company to make a batter
strategic plan, that helps the company to doing better performance and achieve their target
effectively and efficiently. Marks and Spencer was founded in 1884 which has its main
headquarter in London, and it is the major British Multinational Retailer company which deals
with various home products and clothing products including more than 100-year-old chains
(Marks and Spencer, 2022).
The report discusses about impact of enteral and external environment, along with using the
PESLE analysis on Mark and Spencer. It also includes explanation of corporate social
responsibilities and describe that after fulfil their social responsibility, CSR activities help the
company to achieve their goals. Lastly it will ask the opinion that what are the effects of Brexit
and COVID-19 pandemics time, and how the Mark and Spencer deal with this situation.
MAIN BODY
External environment with PESTLE analysis
PESTLE Analysis is a tool or framework which helps the company to analysis the macro
environment (Farmaki, 2018). This factors support the Marks and Spencer to analysis the
internal and external environment, and helps to better understand the current and Future market.
Marks and Spencer has successfully made the use the PESTLE analysis often to become one of
the leading international retailers. Factors of PESTLE analysis that impacts environment of
Marks and Spencer are below:
 Political – These factors are related to the government control and its influence by the
industry. This political factor helps to get the better understanding of Marks and
Spencer's current and future market. UK government has established the fair trade policy
between the multiple countries, and Marks and Spencer is a well-established retailer and
main operate in the United Kingdom, So, they get a more benefit of policy, because free
trade impacts the company to import the foreign products for sale in their different stores
in cheapest prices and make good profit margin. But other government policy impact
negativity Brexit is a withdrew process of UK and Europe. after this policy Marks and
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Spencer had faced many problems to maintain the supply chain, so because of this
reason they withdraw 600 lines from Irish stores.
 Economic- It is related to economic growth, inflation rate, unemployment rate, current
turnover ratio of the economy. After free trade policy UK industries face difficulties the
Marks and Spences is one of them, the new competitors are stealing the retail market,
costumers are having same product in lower price, and price is huge factors in the retail
industry (Fouratiand Dammak, 2021). But Brexit give positive impact on Marks and
Spencer knowing that they have options to start their company in different countries and
make the supply chain strong.
 Socio culture- This factors are related to the social factors it is related to the everything
that goes in a society and affects the organisation. Because ready meal is portable and
M&S is an iconic British brand company, So They take pride of this fact and launch new
ready made meal brand. Along with they do not need any investment in advertisement
because consumer already familiar with this name.
 Technological- Technological changes in environment can also acts as an opportunity
and threats for a company. In UK, technology is very important for the company's
growth and Marks and Spencer has already a well-established and a strong E-Commerce
presence.
 Legal- It refers to the laws made by the UK government which are compulsory to be
followed in order. For example- business law, environment law, consumer protection act,
regional and local laws (Haski-Leventhal, 2018). As Marks and Spencer has its stores
located abroad also which are earning a great profit margin, because they have paid
attention on all the legal norms of other countries without exploiting them.
 Environmental- These factors affect the company and their functions, such factors are:
Environmental issues, insurance policy, safe waste disposal, natural climate changes. To
maintain the image as a luxurious brand, Marks and Spencer has moved to become a
sustainable retailer they need to their resources in effectively& efficiently. Along with
they want to focus on minimizing the wastage of resources and preserving the quality of
environment too.
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Recommendation of suitable leadership style
Leadership is a process which influence the behaviour of people by making towards
achievement of organisational goal. These activity influence people to strive willingly for group
activity (Haslam, and Shenoy, 2018). That indicates the ability of an individual person to
maintain good interpersonal relation with employees and motivate them to contribute for
achieving the organisational goals. They focus on the traits and behaviour that people can adapt
to increase their ability and leadership capability and indicate ability of an individual to influence
others. In accordance to Goleman theory of leadership styles, some of leadership styles in
association to Marks and Spencer are as analysed: Autocratic Leadership- This style allows the leader to impose the outcomes and
expectations. This leader gives the order to the employees and expect that his subordinate
fulfil their duties and accomplish the company objectives. This style is more controllable
they put pressure on their workers for completing the task, along with the main motive
target is achieve their goal on time in any situation. This types of leader are giving order
to their employees and not asking for their suggestion. If leaders of Marks and Spencer
uses Autocratic leadership style, they are not focused on collaboration, but they prefer to
carry or hold the power.
 Democratic Leadership- This types of leader believe that their subordinates are equality
important to develop the actions plans. When they make decision they always consult
with their employees. Because they know subordinate participation is also important.
They will encourage them to participate in decision making. If leaders of Marks and
Spencer opts democratic leadership style, they always recognise the people to performing
well if the set their own target, they always respect the other opinion and motivate their
employees to improve their performance.
 Coercive Leadership Style- It commonly refers to commanding leadership, it is very
beneficial for those situation when the manger need to fix the problem festally and
effectively, it is also known as autocratic leadership. If the Marks and Spencer manager
gives the instruction to their employees such as what to do, how to do, their main focus is
achieving the company target.
 Pacesetting Leadership Style- If Marks and Spencer leader focus on day to day activity,
they want to interact with their employees and setting the good example for their team.
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They always try to motivate their employees and enhance their skills and knowledge.
They mainly focused on to achieve the high levels results, they always try to work done
on time.
 Coaching Leadership Style- With this style, leader focus on the personal development
of their employees, they focus on to motivation their employees and enhance their skills
and knowledge. In Marks and Spencer, with usage of the style, leader can recognize the
work member’s strength and weaknesses to build their self-confident.
In Marks and Spencer, leaders currently use the democratic leadership style which is
mostly consultative in nature, which means that their leader are consult with their employees
before taking any decisions and ask for their opinion. The quality of this leader such as they
provide chance to speak up in decision making, Marks and Spencer mangers know this thing that
employee motivation is very important for an organisation. So they give a chance speak up in
any decision making and make their voice heard when they have recognised issue along with
their manger adapt the democratic leadership style. That give a chance to speak up they always
consult his staff while planning and also take feedback that what changes they need to do or what
they improve (Palmer, 2021). They always try to encourage their employees and value their
work, so that they fell motivated for their work. They also believe that if they actively involving
the employees in any decision making activity, it is beneficial for their growth, Great leader
always give authority to speak up they does not travel one way. They believe on equality that
everyone having a right to express their views, no matter what level (top, middle or lower)
manger they are. All employees and manger have a right to speak and permitted to start and
contribute their thought for the development of the company. They giving incentive to employee
and also guide the employee to what should be done.
Characteristics of democratic leadership which are listed below:
 Wide range of innovating ideas- They motivate their employees to take part in group
activities which can helps to get a wide range of ideas from the different group members.
 High employee engagement- This style involves the employees in decision- making
process. The good democratic leaders are believe in encouraging their team member to
give the ideas and listen there suggestions.
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 Increase job satisfaction- When the team leader allows their subordinate to share their
ideas and opinion, so they also feel that they know the value of their work and they
satisfied with their job.
Advantage
 Build string team relationship
 Increases moral value and job
satisfaction
 Strong clear vision for the future
uncertainty
Disadvantage
 Decision making procedure can be slow
 Create negative emotions
 Not guarantee to the best possible
solution
Corporate social responsibility of the company
Corporate social responsibilities are model of self-regulation businesses which helps the
company to be more socially itself, by doing social activities which is related to corporate social
responsibilities (Rutherford, Evett and Hopkinson, 2020). It helps the company to improve their
brand image and it is a great way to raise the morale in the workplace. It is the broad concept it is
beneficial for the society and company image to. Marks and Spencer need to focus on CSR that
helps the company to improve their brand image.
 Responsiveness- It refers to the company moral obligation for the society, which means
how company festally respond to social factors and how much they are aware towards
their social responsibilities. Marks and Spencer is not only focus on earn profit or product
sale, but they make plans into core of everting they doing for their business, they are
activity participate in social responsibilities. Marks and Spencer are having strong trading
relationship all over the world, they always take responsibilities to the customers,
employees, locals and communities very serious. They always work on social factors
actively response on sensitive issues of the society or be it charity for the society issues.
 Responsibilities- Social responsibilities is related to the ethical framework in which the
company have a responsibility towards the society, that need to fulfil them. Marks and
Spencer a maintain the proper balance between the economic growth and the welfare of
the society and the environment. They always doing something for the society, they
always taking care the sensitive issues of the society be it donation for the society, ethical
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trading and further more. Marks and Spencer making so many policies for the society
welfare such as charity and community funding donations, clothing equipment, provide
food and others.
 Obligation- It is related to the social obligation and depending on the social norms, it is
requiring for the organisation which have impact positive on people and planet. It goes
beyond the cosmetic issues of reputations for the require the operations of the company
which positive impact fundamentals of the company. Marks and Spencer they need to
fulfil the all social norms which is related to the society obligation which helps the
company to achieve their target in proper manner
CSR plays an important role for an organisation operates because it demonstrates the
social responsibilities. Although fulfil the CSR is not compulsory, it is not a legal require, but
still it is the good for the company to doing this, because its impact positive for the company
performance (Spencer, 2020). Social responsibilities and ethical practise helps the Marks and
Spencer to improve their brand image and attract the costumers. The benefits of Corporate social
responsibilities for the Mark and Spencer which are listed below:
 Helps to improve the public image- It play a crucial role to improve the brand image
because people are more concern for the social responsibilities and ethics practise, if the
company work on this so they put positive impact on consumer. Marks and Spencer
doing charity for their employees.
 Increase brand awareness and recognition- If Marks and Spencer doing the ethical
practises, so it will help for the promotion people spread this news on social sites which
impact that more people are aware this brand and increase the brand awareness.
 Increase the new customer engagement- If Marks and Spencer using the suitable
system, so they should be impact positive. People are putting story on social media
channel which helps to promote their brand (Sharma, 2019). Along with it helps to attract
the new customers.
 Cost saving- If the Mark and Spencer doing some changes in the polices and adapt the
eco-friendly techniques, so it is beneficial for their cost and performance, because if they
use solar panel, thermal plant to generate their own electricity. This is one-time
investment' thing and get, long term befits. It helps the company to save their cost and
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improve their performance, along with it support the company to compete with their
competitors in the market.
Effects of Brexit and COVID-19 pandemics
Some external factors are uncontrollable such as government policies, social, economic
and furthermore, this uncertain changes impact the company an organisation. For example, UK
government announced the Brexit policy which effect the many companies Marks and Spencer is
one of them. After this policy, Marks and Spencer has said that they closing the 11 franchise
because its supplying chain problem will increase, they face lots of difficulties to supply the
goods and fresh chilled foods for their customer on time. This thing effects the company
performance, they bear some loses since Brexit, but Brexit also impact positively to the
companies, after this policy Mark and Spencer having a opportunities to expand their businesses
all over the world ( Shrestha, 2020).
During the COVID-19 pandemic time most of the country economic goes down, along with
is also affects the global fashion industries to, many companies close down their manufacturing
plants. Marks and Spencer is one of them, they face the challenges in consumer demand, because
economy goes down most of people using their saving, they don’t have much money to spend
their money to buy expansive cloth (Spencer, 2020). But this COVID- 19 time also impact
positively after sometime, Marks and Spencer said that the crisis had shown that demand of
clothing and home trading will increase the online and home delivery were strong. But because
of lack of workers company cannot able to fulfil the supply of the consumer, they face
difficulties in distribution channel because, most of countries stop the import and export the, and
it affect the company performance, they face problem to handle this tough situation. But after
sometime Mark and spencer work on this and doing some changes in their strategies, which
helps the company to recover their losses and improve their performance. Mark and Spencer
offer some schemes to the customer such as they provide credit facilities to their customer so that
they can buy product on credit and give the amount in instalment. Mark and Spencer are actively
participates in social activities, they make many scheme and policies for their customer and
workers which is beneficial for them. During the pandemic time Mark and Spencer doing some
changes in their company they focus more in safety and cleanses, they ensure that all their
worker is proper vaccine and healthy. It has been important that they make sure that regularly
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contact with their suppliers so that they could understand the impact that how they respond and
support their workers.
CONCLUSION
In the above report went into detail the many complex process, in this report it chosen the
Marks and Spencer and discuss the impact of internal and external environment factors of the
company. Along with the Marks and Spencer using the PESTLE analysis to improve their
performance and achieve their target effectively and efficiently. After this, it describes the
leadership style and a suitable leadership style which helps the organisation to achieve their
business objectives. In this report it defines that corporate social responsibilities (CSR) helps the
businesses in fulfil their social responsibilities, so impact on their goals. Brexit and Covid-19
pandemic have affects business operations in large extent and in order to company with the
complexities, effective practices have been implemented by managers for achieving success.
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REFERENCES
Books and Journals
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customer engagement. Kogan Page Publishers.
Farmaki, A., 2018. Corporate social responsibility in hotels: a stakeholder
approach. International Journal of Contemporary Hospitality Management.
Fourati, Y. M. and Dammak, M., 2021. Corporate social responsibility and financial
performance: International evidence of the mediating role of reputation. Corporate
Social Responsibility and Environmental Management, 28(6), pp.1749-1759.
Haski-Leventhal, D., 2018. Strategic corporate social responsibility: Tools and theories for
responsible management. Sage.
Haslam, S. and Shenoy, B., 2018. Strategic Decision Making: A Discovery-led Approach to
Critical Choices in Turbulent Times. Kogan Page Publishers.
Palmer, S. J., 2021. A tribute to all the staff working at Christmas. British Journal of Healthcare
Assistants, 15(11), pp.563-567.
Rutherford, K. H., Evett, R. R. and Hopkinson, P., 2020. Using phytolith analysis to reconstruct
prehistoric fire regimes in central coastal UK International Journal of Wildland
Fire, 29(9), pp.832-840.
Sharma, E., 2019. A review of corporate social responsibility in developed and developing
nations. Corporate Social Responsibility and Environmental Management, 26(4),
pp.712-720.
Shrestha, P. N., 2020. Transfer of Aspects of Academic Writing to Similar and New Contexts
Through Dynamic Assessment. In Dynamic Assessment of Students’ Academic
Writing (pp. 197-229). Springer, Cham.
Spencer, M. K., 2020. Disability in the Intermediate State. Disability in Medieval Christian
Philosophy and Theology, p.14.
Spencer, M. K., 2020. Separated Souls: Disability in the Intermediate State. In Disability in
Medieval Christian Philosophy and Theology (pp. 235-257). Routledge.
Online:
Marks and Spencer. 2022. [Online]. Available through: <https://www.marksandspencer.com/>
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