Global Business Environment

This report discusses the global business environment and its impact on organizations, using Marks and Spencer as a case study. It includes a PESTEL analysis and explores the key drivers of change. The report also identifies challenges and opportunities in the political, economic, social, technological, environmental, and legal factors.

Global Business environment

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
CONCLUSION..........................................................................................................................................5
REFERENCES..........................................................................................................................................6

INTRODUCTION
Environment that comprises of different external forces that surround an organization and
can impact its business operations as well as the process of decision-making is referred to as
Global Business Environment (Lasserre, 2017). Organization chosen for this report is Marks and
Spencer, which is a leading retailer of food, clothing and home products. The report comprises of
PESTEL analysis of the selected firm and also explains the key drivers of change.
MAIN BODY
Problems and Challenges
The company's sales have decreased over the last three years by nearly 3%. Also, Marks
and Spencer has not seen any growth in last 3 years because of the overhaul took on the
business's toll on sales.
External environment
External environmental analysis is primary study that assist in analyzing factors of macro
environment that can have an impact upon business decision making (Peng, 2016).
Political factor: Marks and Spencer is a multinational retailer that provides high quality
product and services to their customers. They target global market that means they needs to
consider political practices in business development plan.
Opportunities:
 One major positive aspect of modern-day politics is that free trade that has been made
between several countries that can be an opportunity for M&S.
 Political stability in UK and a desired importance to Retail sector in economy
development.
Threat:
 Impact of Brexit upon trade regulations and tariffs.
 Changes in Pricing regulations.

Economical factor: M&S provide its own contribution in the economy development of UK
by providing maximum job opportunities to individuals.
Opportunities:
 Changes in clothing budget can provide opportunity of M&S to grab opportunity to
growth in the UK market.
 Stability in exchange rate of UK economy.
Threat:
 Rise in inflation rate in UK can be a major threat for M&S.
 Impact of Brexit upon wages and levels of disposal income.
Social factor: Social factors affect retailers include changing values as per the age, gender,
income level etc (Tallman, Luo and Buckley, 2018). Therefore, M&S needs to revise their
policies accordance to changes in customer’s demand.
Opportunities:
 Trained and skilled staff can raise opportunity to provide quality services to target
customers.
 Affordable prices and quality of services.
Threat:
 Frequent Changes in customers’ demands
 Discount competitors who provide contribution in UK economy can affect business
operations of M&S.
Technological factor: Now a day, advancement of technology needs to be implemented by an
organization in order to remain competitive in target market.
Opportunities:
 Rise in the interest of online shopping among customers can be an opportunity for M&S
to build direct connection with international customers.
 Awareness of online payment methods.

Threat:
 Rate of technology diffusion
 Changes in the advance methods of technology for organizational support as well as
services.
Environmental factor: Several countries and market have their different norms or
environmental standards that needs to be consider by M&S at time of conducting business
operations in different countries.
Opportunities:
 Multitude of environmental factors that are present in the services of M&S
 Implementation of environmental legislation.
Threat:
 Lack of waste management strategy
 Lack of involvement for support renewable energy
Legal factor: Changes in the policies of government of UK, taxation practices and so on can
affect business decision making of M&S. Opportunity and threat of legal factors for M&S can be
-
Opportunities:
 Implementation of copyright, patents and intellectual property law.
 High standards of employment policies and regulations.
Threat:
 Decline in the number of customers by identifying unethical practices that has been
conducted by M&S.
 Due to unethical practices, candidates outside the company will not be interested in
working for them.

CONCLUSION
From the above report it has been summarized that macro environmental analysis is a
major consideration through which an organization can analyze impact of external factors upon
business decision making.
REFERENCES
Books & Journals
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Peng, M. W., 2016. Global business. Cengage learning.
Tallman, S., Luo, Y. and Buckley, P. J., 2018. Business models in global competition. Global
Strategy Journal. 8(4). pp.517-535.