Business Communication and Performance Analysis

This assignment analyzes the crucial role of effective business communication in enhancing a company's performance. It delves into various communication strategies, emphasizing their influence on productivity, customer relationships, and internal collaboration. The analysis incorporates frameworks like Porter's Five Forces and PESTEL to evaluate the competitive landscape and external factors impacting the business. Furthermore, it highlights the challenges managers encounter in areas such as communication and resource management, emphasizing their impact on overall business operations.

Foundation of business
communication

Table of Contents
INTRODUCTION...........................................................................................................................3
APPLICATION...............................................................................................................................3
1) Data of Mark and Spencer industry........................................................................................3
2) About the Mark and Spencer company ..................................................................................3
3)PESTEL analysis of the Mark and Spencer ............................................................................5
4) Analysis the competitors position of the organisation through five force model...................7
5) Identifying the key issues like management and resourcing issue faced by the company.....8
5)Key finding..............................................................................................................................8
6)Personal reflection ..................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business communication is significant because organisation exchange their ideas, views
to each other. Effective communication can build relationship between employers and staff,
employer and employers that helps to increase productivity level. If Business communication is
effective that leads to enhance customers base, profitability and build image. Business
communication can be direct and indirect so they can get innovative idea and views for problems
solving. Organisation can use internal communication to communicate with co-workers,
supervisor and subordinate for planing , organising the human resources and controlling the
activities that helps to improve performance (Smith, Patmos and Pitts, 2018). Company can
communicate with suppliers, customers , government that helps to achieve goals and objectives.
Present report is based on Mark and Spencer is the multinational British company which
is listed in London stock exchange. It deals in selling clothing, home product and luxury food
product. This report will include retail industrial data. Further, competitors, performance,
customers, weakness challenges faced by the industry. It also explaining a PESTEL analysis of
the company and also analysis the competitive position through five force model. This report
consists the identifying the resourcing and management issue faced by the company.
APPLICATION
1) Data of Mark and Spencer industry
Retail industry is the growing Industry of UK . The retail sales generate 395 billion
pound in 2017 and sector housed 319000 retail business in 2108.
2) About the Mark and Spencer company
Businesses- Mark and Spencer is the listed company which provide various type of product
such as food items, male and female clothing and luxury product to customers. Company is the
major British multinational company which is also known as M&S. This company's shares freely
traded in London stock exchange and headquarter establish in Westminster, London. This
company provides various range of product such as clothing, quality food product and home
made product. Company also sell branded goods like Kellogg's corn flakes.
Customers- Mark and Spencer provide their clothing product and food product by retail
stores. They provide quality product and fresh food to customers at the suitable prices which
leads to increase customers base. Company effective marketing strategies to attract to customers

and provide high range of services (Marks & Spencer competitors,2019). Recently the company
having huge customers base that helps to increase profitability and growth.
Suppliers - Company adopt indirect supplier chain for deliver their product to customers.
Suppliers is important factors for selling the product. Effective supply chain helps to take
competitive advantage and future opportunities that helps to increase profitability, sales growth
of the company . Manufacturer deliver their product to whole seller then deliver to retailer. In
the end retailer provide products to end user.
Competitors-Mark and Spencer company face lot of competitors challenges. The main
competitors are Aldi, Asda, Tesco, Faramfood, Waitrose&Partner and John Lewis. Company
have to formulate effective strategy to compete with competitors and also expand their business
by providing high range of product to customers. Company should have adopt competitive
pricing strategy to competitor with competitors which helps ton service in the market and
increase profitability.
Performance- Company adopt financial ratio to analysis the performance that helps to
improve future performance and achieve long term goals. This company is the growing
company because of their effective performance and it is also leading retailer company across the
world. Recently the revenue of the company is 10698.2 million pound and net income of the
company is 29.1 million pound. The profitability margin improved year by year because of their
increasing customers base and enhance reputation. The company has established offices in
Thailand, Hong Kong, India, Bangladesh, Malaysia, Turkey, china, Indonesia and Sri Lanka.
Recently the company has 979 store in UK but they also expand their business by establishing
new branches all over the world.
Strength -Mark and Spencer is the leading retailer company across the world which
provide high range of clothing items and food item. Recently they have 1000 plus stores within
the 40 countries. The main strength id that 80000 employees engaged with this company that
helps to provide product on the time of demand. Mark and Spencer have own brand level to
attract the customers that helps to increase customer base and sustainable growth of the
company. The company follow highly E commerce infrastructure for increasing the sale and
having highly corporate social responsibility which would build strong image.
Weakness- Mark and Spencer have lot of weakness which have to overcome to survive
in the market. Company not able to compete with competitors because strong competitor's

presence in the market and have limited market. It is not popular company across the world so
they have to protect their brand from the fake or Duplicate imitation of product. Recently
company will be close their store by 2022 because of radical plan. Company provide limited
product to customers that is the weakness of the company so they have to increase product range
for increase customers base. Company having poor financial performance from its competitors.
3)PESTEL analysis of the Mark and Spencer
PESTEL analysis is the significant for all organisation which use to understanding the
external factors that affect to overall business activities like operation, profitability, reputation,
resources etc (Pearson,2017). Company can eliminate the future risk due to change external
factors like political, economical, social, technology, environmental and legal factors. Mark and
Spencer company can prepare strategies to take future opportunities and competitive advantage
by analysing the macro factors that leads to improve operations, reputation in the market.
Company can achieve goals and objective at predetermine time.
P(Political)- This factor determine the government policies and regulation affect to
organisation. Political factors includes tax policies, government stability and instability, foreign
exchange regulation, competition regulation etc which impact on over all business activities.
Mark and Spencer trade their business across the world so the factor can be influence on
business. This company is the first company who achieve the fair trade policies. The government
support to company because of its historic value. Company can analyse their taxation policies
before establishing the branch which used to prepare effective strategy for expanding business
and growth of the company.
Example - If government increase tax rate then it would decease the income of the company.
E(Economical)- This factor impact on income, operations of the business. This external
factor includes inflation rate, interest rate, growth rate, exchange rate, employment rate and gross
domestic product etc. this factors are determinant of the economy's performance which directly
impact on overall of the business. Mark and Spencer should analyse the macro factors which
helps to enhancing growth of the company by eliminating the future risk. Economic analysis is
important to formulate strategies for attaining the competitive advantage.
Example - Inflation rate impact on prices of the clothing, food and home product item. If
inflation rate would increase then company provide product to customers at the increasing price
which impact on business profitability and customers base of the company.

S(social)- Mark and Spencer can't directly control this factor which impact on business
strategy and performance. Social factors includes population of the country, culture, ethical
concern, education level, lifestyle, per capita income and buying habits etc. company provide
clothing and food so they have to analysis the customers taste. Analysing of social factor would
lead to increase customers base and profitability that helps to compete with competitors and
identify future opportunities. Company easily provide goods and services to customers
according to their customers at the suitable price (Mathooko and Ogutu, 2015.).
Example- If company deliver food items in India then they have to analysis customers taste and
preference which helps to increase sales growth and profitability of the company.
T(Technology)- It is the fastest changing factor which impact on performance of the
business Mark and Spencer adopt advance technology which leads to increase productivity and
cost can be reduce. Advance technology use by company because they can enhance their selling
on online platform. They can expand their business through marketing like advertising in social
media that helps to increase awareness and growth of the sales. Company easily meet out the
customers needs by providing suitable product at the lower cost which leads to increase
customers, profitability and build image in the market.
Example-Mark and Spencer sell their product by E-commerce which leads to maximise
profitability and costumers base.
E(Environmental)- This factors includes weather, Air and pollution, recycling standard,
attitude towards the green product and environment policies etc. Mark and Spencer conduct
such business which positively impact on environment as well as public. Company deliver
product by analysing the factors that helps to maximising the profit. They use cloth poly bags
which doesn't impact on environment. Mark and Spencer company having corporate social
responsibility which impact on reputation of the company. They can prepare strategies for
analysing the external factor which impact on business environment and public health.
Example - Mark and Spencer having contribute in corporate social responsibility which
increase efficiency of the business and loyal customers that helps in sustainable growth of the
company.
L(legal)- Business performance impact due to change in any government law and
legislature such as safety and health act, wages act, consumer protection act, employment law
etc. If government change ion any policies with the favour of organisation that helps to create

image in the market. Company should analysis the all government policies so they can provide
goods and services as per government rules and regulation. It helps to create reputation in the
market and enhance growth of the company.;
Example- if government change in the favour of consumer then company have to liable to follow
that policies for enhancing reputation in the market which would increase customer base and
profits.
4) Analysis the competitors position of the organisation through five force model
Mark and Spencer can analyse the competitive environment which affect to business
activities. Manager of the company can prepare effective strategies for improving the
performance that helps to increase ability and profitability (Racz and et.al., 2018). Five force
model helps to determine competitive intensity which used to attract the customers and generate
profitability. This model focus on five forces such as -
Threats of new entrance- If new company enter into the market that impact on overall
performance of the business. If new entrant company provide such product which is already
provided by Mark and Spencer so that impact on the business profitability. New company try to
compete with competitors by providing product at the lower cost that would increase customers
base, profitability and take future opportunities. Company should analysis the strategies for
services in the market by retaining the loyal customer which positively impact on the company.
Treats of substitutes- It is the treats of the company because of company provide similar
type of product at lower cost then customer will be switch to other company's product. It impacts
on customer base and profitability of the company. Company must prepare strategies to improve
quality and lower the price which compete with competitors that helps to overcome the treats.
Bargaining power of customers- Buyers of the product impact on business profitability
and growth. Customers want to buy quality product at the reasonable price that helps to increase
customers satisfaction and increase profitability of the company. Mark and Spencer should
prepare strategy so they can provide better quality product at the reasonable cost that would
helps to expand their business by taking future opportunities and compete with competitors.
Bargaining power of suppliers - Mark and Spencer company have many suppliers
which deliver their product to end user. If the company hold large number of suppliers which
leads to increase trade that helps to increase sales growth and profitability and reduce the
switching cost (Porter's Five Forces: Analyzing the Competition,2019). It helps to take

competitive advantage by retaining the lower customer and increase profitability margin of the
company.
Competitive rivalry- Mark and Spencer have lot of competitors those provide similar
type of product that impact on power of the company. They have to provide branded cloth and
better quality food product at the lower cost that leads to increase suppliers and customers. If
Competition rivalry is low then company will able to charge high price on the product that helps
to take competitive advantages and also take opportunities. Lower the competition can helps to
achieve goals and objectives of the company (Oraman and et.al., 2018).
5) Identifying the key issues like management and resourcing issue faced by the company
Recently Mark and Spencer face management issue and resourcing issue which affect the
operation of the business. Company have to overcome the issue to service and increase
reputation in the market.
 Manager of the Mark and Spencer company face communication challenges. Manager
can't communicate with employees which create problems like reduce customers
retention and increase labour turnover etc.
 Company doesn't adopt advance technology for communication that leads to create
challenges because they can understand the customers and needs and preferences which
impact on business.
 The major challenges of the manager ton manage the data in such way that helps to
increase productivity at the lower cost. Manager also determine the production level ,
storage quality and price of the product (Adi, 2015).
 One of the biggest challenge is managed the human resources because Mark and Spencer
provide their product at the several countries. Manager have to utilise their employees
skills and capabilities which contribute to increasing productivity. If human resource
manage that which used to meet out the customers needs at the time of demand that helps
to increase profits.
5)Key finding
Key finding from the above report that data analysis of the retail industry. Company
analysis the external factors which impact on business activities that helps to increase probability
and sustainable growth of the company. Entrance of new company, barraging power of the
customers and suppliers, competitive rivalry are component of five force model that impact on

competitive position of the company. It also shows about the challenges faced by manager of the
company.
6)Personal reflection
I learn from this study that verbal commination and written communication is important
to improve efficiency and performance of the business. Communication also useful for achieving
goals and objective of the business.
I also analysis the data like net income is 29.1 million pound and revenue is 10698.2
million pound.
I know about the information and communication technology which use to develop,
implement and support information that use by the company.
I learned about that analysis is important to reduce losses due to changing external factors
like political, economical, social, technological etc. I also study about the five force model use to
analysis the competition position.
Working with team leaders i learned to improve coordination and understanding to
response the answer.
CONCLUSION
Above report summarised that business communication is necessary for improving the
performance of the company. Effective communication leads to increase productivity level,
customer base and also improve relationship within the company. It concluded the data of the
Mark and Spencer and its performance, suppliers, competitors, customers etc. Further, Company
have to analysis the external factors such as political, economical, social, technology, economical
and legal factors that helps to reduce losses due to changing any factors. Company can take
competitive advantage and future opportunities by analysing the PESTEL. It also explained
company can analysis the competitive position by using five force model. In five force model
shows the bargaining power of customers and suppliers and treats of substitute product and new
entrance. This analysis approach used to prepare strategies that helps to achieve competition
advantage and profitability of the company. It also included that manager face lot of challenges

like communication, resource management challenges which affect to overall activities of the
business.

REFERENCES
Books and journal
Adi, B., 2015. An evaluation of the Nigerian telecommunication industry competitiveness:
application of porter’s five forces model. World. 5(3). pp.15-36.
Mathooko, F.M. and Ogutu, M., 2015. Porter’s five competitive forces framework and other
factors that influence the choice of response strategies adopted by public universities in
Kenya. International Journal of Educational Management. 29(3). pp.334-354.
Oraman, Y. and et.al., 2018. WHAT EXTERNAL AND INTERNAL FACTORS AFFECT
ORGANIC FOOD SECTOR?. New knowledge Journal of science.7(2). pp.33-44.
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. In Public relations theory (pp. 111-131). Routledge.
Racz, L. and et.al., 2018. Extensive comparison of biodiesel production alternatives with life
cycle, PESTLE and multi-criteria decision analyses. Clean Technologies and
Environmental Policy. 20(9). pp.2013-2024.
Smith, S.A., Patmos, A. and Pitts, M.J., 2018. Communication and teleworking: A study of
communication channel satisfaction, personality, and job satisfaction for teleworking
employees. International Journal of Business Communication. 55(1). pp.44-68.
Online
Marks & Spencer competitors.2019. [online].Available
through.<https://craft.co/marks-spencer/competitors>.
Porter's Five Forces: Analyzing the Competition.2019. [Online]. Available
through.<https://www.businessnewsdaily.com/5446-porters-five-forces.html>