Global Business Environment

This report explores the global business environment and its impact on organizations, with a focus on Marks and Spencer. It includes a PESTEL analysis, key drivers of change, and recommendations for the management. Learn more at Desklib.

Global Business
Environment

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
PESTEL Analysis....................................................................................................................................3
Key drivers of change..............................................................................................................................4
CONCLUSION..........................................................................................................................................4
REFERENCES..........................................................................................................................................5

INTRODUCTION
The environment of different countries with different factors external to a particular home
country is known as the global business environment (Azudin and Mansor, 2018). It allows
different countries to trade with each other which leads to strengthening the economy of the
nation. Organization chosen for this report is Marks and Spencer, which is a British multinational
retailer of home and clothing products. The report explains key drivers of change that the
management of chosen organization should take into notice for the future.
MAIN BODY
PESTEL Analysis
PESTEL analysis is a tool that helps organizations in identifying the macro
environmental forces affecting their performance. The tool is basically useful for starting a new
business or when an organization decides to enter a foreign market. The PESTEL analysis for
Marks and Spencer is explained below –
 Political Factors – The UK is one of the most powerful countries in the world and is also
politically stable (An Example PEST Analysis of The UK, 2020). The government is
proactive but there can be some hidden corruption that can influence a company. Brexit
has also created some political debates and uncertainties.
 Economic Factors – The country is also economically strong as it has a high GDP and a
large population. Due to this, even small businesses are successful.
 Social Factors – People living in the UK have high standards of living which lead to
better circumstances. But the dependency ratio is increasing day by day.
 Technological Factors – The country has people who have n expertise in information
technology and laws that are associated with intellectual property.
 Environmental Factors – Economic activities can have an impact on the environment;
therefore, the nation has taken various measures in order to reduce the same (Lasserre,
2017). Although the country does face challenging weather conditions sometimes.
 Legal Factors – All organizations that operate in the UK are expected to comply to
certain laws and legislation. This includes The Employment Act 1196, Equality Act 2010
etc.

Key drivers of change
In order to ensure a secure and successful future, the management of Marks and Spencer
should take into notice the different key drivers of change. The first and foremost driver of
change are the customers of the company, as their preferences and tastes keep changing.
Therefore, it is important for the company to take into account any changes in the preferences of
customers and formulate effective strategies, products so as to satisfy them (Lee, 2017).
Technology is another driver of change that the management of Marks and Spencer should take
into notice. This is because if the company fails to adapt itself to technological changes in the
industry, it will not be able to gain a competitive advantage over others. Also, the company
should pay focus on effectively training its employees as they represent the organization and can
be among key drivers of change.
CONCLUSION
From the above report, it can be concluded that a PESTEL analysis can help an
organization in identifying and analyzing the different macro environmental factors that can
impact overall performance. Apart from this, there are various factors like technology, customers
etc. that can drive change within a company and should be taken into notice by the management.

REFERENCES
Books & Journals
Azudin, A. and Mansor, N., 2018. Management accounting practices of SMEs: The impact of
organizational DNA, business potential and operational technology. Asia Pacific
Management Review. 23(3). pp.222-226.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Lee, I. ed., 2017. The Internet of Things in the Modern Business Environment. IGI Global.
Online
An Example PEST Analysis of The UK. 2020. [Online]. Available through:<
https://pestleanalysis.com/pest-analysis-of-the-uk/>.