Global Business Environment: SWOT Analysis and Operational Impact Analysis

This report analyzes the global business environment with a focus on Marks & Spencer. It includes a SWOT analysis and operational impact analysis, examining the company's strengths, weaknesses, opportunities, and threats.

Global business environment
TABLE OF CONTENT
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
SWOT analysis:...........................................................................................................................2
Operational impact analysis:........................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5
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INTRODUCTION
Global business environment means international trade process that a business organization
have in their business dealing, global environment and its factors impact decision and operation
of every company. This study is based on Marks & Spencer, this company is one of the most
successful clothing and retail brand. This report will discuss SWOT analysis to examine strength
and weakness. At last this report will discuss operational impact analysis.
MAIN BODY
SWOT analysis:
SWOT analysis allow company to examine their strength and weakness and help them to
catch opportunity and threat that revolve around business organization:
Strength: strength of every business organization lies in uniqueness they have, these uniqueness
allow company to accomplish their goals. Marks & Spencer is have several uniqueness which
help them to become market leader, this company is have experience in retail sector from past
136 years allowing them to survive impact of Brexit (GURL, 2017). Along with years of
experience, Marks & Spencer have wide range of product with affordable price range and high
quality of product helping them to attract more and more customer. Strength of this company lies
in their supply chain management where company is able to provide right product to right
customer at right time. Marks & Spencer have their own skilled designers along with partnership
many famous designer of different company which allow them to become more unique in the
market.
Weakness: weakness of every business impact their growth speed and business operation. Marks
& Spencer was facing problem in supply chain management since 2019 and after impact of
COVID-19, management of product was completed slipped. Poor supply chain management
leads to unavailability of product resulting in decreased sales. Another weakness of Marks &
Spencer lies in manual business operation, this means less use of technology. Many operation of
this company still run on tradition system resulting in slow speed and slowing market, poor
design of company impact their process (Sarsby, 2016). Marks & Spencer also face negative
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perception of public, for example many people believe that this company provide cloths for
specific age segment which result in losing young customer.
Opportunity: every business organization can craft opportunity from their weakness which
means they can improve their weakness to become more efficient. Marks & Spencer can
generate opportunity from their weakness, this company have poor supply chain after COVID-19
impact which means by adopting latest technology this company can improve their business
operation. Marks & Spencer have opportunity of global expansion, it is very clear that after
Brexit, various trade restriction is being removed. This company can expand to nearby countries
for example south Africa and other. Expansion will provide them new market segment. Marks &
Spencer can improve their online appearance by adopting business style like Amazon, creating E
commerce platform will allow them to reach as many audience as possible.
Threat: every business organization face threat from competitors and their movement in the
market, strategy of competitors impact the smooth flow of business. Marks & Spencer have
visible weakness in front of their competitors, many market giant like Amazon, Tesco and
Sainsbury can easily defeat this company in the market. After the impact of COVID-19, there is
high competition in retail market, changing lifestyle of customer affect the demand and supply of
the company (Sarsby, 2016). With poor supply chain management, Marks & Spencer is facing
biggest threat and will result in failure of business. Many branches of Marks & Spencer in China,
UK and neighbouring countries is been shutting down, new import and export policy of these
country also becoming threat for the company.
Operational impact analysis:
Marketing: every business organization need fuel of marketing which allow them to reach as
many audience as possible and to sell their product. this allow help company not only to reach
customer but also to create a brand image and reputation in the market. Marks & Spencer have
effective marketing management allowing them to become more competitive, the strength of this
company lies in brand image and reputation which have achieved through quality product
delivery and successful marketing strategy (Davis, 2017). Along with these marketing strategy,
Marks & Spencer need to target more young customer, one weakness of this company lies in
poor approach to young customer. It is very clear that without reaching all segment of customer,
Marks & Spencer can not increase their sales and often will face huge losses.
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Global expansion plan of this company need fuel of marketing, without this, company
may find challenging to survive in new market. Marks & Spencer have opportunity overcome
impact of COVID-19 by improving marketing strategy, for example if this company provide
more budget to marketing, then their reach can be improved, by using various platform, Marks &
Spencer can target those customer who are looking for the product available by the company.
This company need to focus more on marketing because most of audience like to purchase
product online from business organization.
Operation: business operation is one of the most important element for every business
organization, without these, company can not process further. Marks & Spencer have effective
business operations but at some part, this company lack behind management of these operation.
Marks & Spencer is well know for its high quality product and experience of more 125 years in
retails industry allowing them to completed various business operation on time. This company
even survive the impact Brexit and through dynamic nature, Marks & Spencer actively managed
their process (Choi, Chan and Yue, 2016). Economic stability of UK drive success for Marks &
Spencer, developed lifestyle of customer impact growth and supply chain management of the
company.
Before COVID-19 impact, this company tend to perform well in supplying right product
to right customer at right time but after the impact, supply chain tend to become worse. Other
operation of the company was badly impacted due to poor supply chain management, sales of
company tend to shrink. Daily changes in government rules and regulation have also impacted
operation of Marks & Spencer, after COVID-19, rates of raw material tend to increase which
impacted manufacturing process of the company. Brexit also affected Marks & Spencer as there
was restriction in hiring labour from European labour market, this company faced huge
challenges in their operation management. Not adopting latest technology in their product and
operation unit slow downed the growth rate, Marks & Spencer need to change their strategy
regarding management of business operation.
CONCLUSION
This report have discussed global business environment. Later this report have discussed
SWOT analysis to examine strength and weakness of business organization. At last this report
have discussed operational impact analysis.
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REFERENCES
Books and journals
Choi, T.M., Chan, H.K. and Yue, X., 2016. Recent development in big data analytics for
business operations and risk management. IEEE transactions on cybernetics, 47(1),
pp.81-92.
Davis, J., 2017. Measuring marketing. De Gruyter.
GURL, E., 2017. SWOT analysis: A theoretical review.
Sarsby, A., 2016. SWOT analysis. Lulu. com.
Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis.
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