Global Business Environment

Global Business Environment

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PESTEL analysis....................................................................................................................1
SWOT analysis.......................................................................................................................2
Impact on functional areas of M&S.......................................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................5

INTRODUCTION
Global business environment refers to the environment in different countries with all
factors related to an external group with home environment of organization. This global business
environment put impact on the decision related to resource uses and abilities of a business
organization.The Marks and Spencer which was founded in 1884 is a chain of household and
clothing products. The company operates retail outlets all over the world and is a very common
name in United kingdom. In this report we will analyse the operating environment of Marks and
Spencer with broader view using PESTEL analysis. Other objective is to complete the SWOT
analysis of Marks and Spencer and identify the key drivers from external and internal
environment. Next objective is to identify the impact on Marketing and HRM.
MAIN BODY
PESTEL analysis
This identifies external factors of M&S and is mentioned below:
Political factors: The global political condition and political climate of all operating
countries impacts the base of M&S. Policy allows M&S with subsidies to invest globally,
transferring profits in headquarters with no tax (The Economic Times, 2007). Dubbed Brexit,
made a huge impact on business of company’s operation. Though it is unclear that where the UK
will stand for the trade regulation and tariffs, but it seems like the outcomes are unfavourable for
the retailers.
Economic factor: M&s is in consumer goods business, thus affected by income of its
customers. Because of financial crisis income of consumers is dropping from past few years
resulting in fall in luxurious goods. These goods are substituted by those available at lesser price.
Fluctuation in exchange rate also affects global operation of M&S as business done transfer into
UK.
Sociocultural factors: Clothing depends on cultural and religious backgrounds, M&S
needs development here by adapting to cultural and religious values of consumer. The food
habits also depends on culture and local cuisine of different countries.
Technological factors:
The trendy thing in retail market is online shopping trend. As this trend grows Marks and
Spencer is already a established e-commerce company, offering most of its products.M&S
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