Key Drivers of Change in the External Environment

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It is study of understanding a external factors which can cause
loss to the organisation. It consists a factors which are
described below.
Political Factor- These factors consider a tax policy, political
instabilities etc. these factors can impact the operations of
industry. In relation to M&S, after the execution of Brexit law
it reflects negatively to the performance of industry as most of
laws are not allowed for company (Dilek, 2018). As increment
in tax rates, can be reason of loss of deals internationally, to
overcome from these factors the company can fluctuate their
prices as per the tax and prices.
Economic factors – These factors have major impact on
company total economic growth, and how they operate their
activity. It includes inflation, economic growth rates etc. these
all definitely effect on operations. In relation of M&S, cost has
always been a priority in industries. The company should
encourage customers to enjoy similar goods at lower cost.
Social factor – these factor determine the social status which
effect attitude and behaviour of users. These factors determine
the social economic environment of the market. It includes
cultural aspects, health consciousness, population growth rate,
age distribution and career attitudes. in case of M&S, its been
analysed that packed food is most liked by the huge amount of
public. The company can invest in this sector it has a capability
of dominate the industries, by providing a good quality packed
food.
Technology – as per technology changes the company have to keep them
updated with the changes and they have to adapt a change quickly to have
a long term sustainability in market the M&S adapts changes quickly for
organisation to be in market by keep growing the brand image.
changing trends – as now days the trends are changing time by time and
the taste of consumer also influenced by the changes in trends it creates
the huge difference in operations of business.
Technology Factor- This factor include the latest form of practical
application, research and development, position. In these competing market
concern and organisations get lots of help because of constant process in
technology. It has backed firms in cutting of value and modification in its
productiveness. As in context of Marks and Spencer, E-commerce has
increased sales of its products worldwide and to create more revenue
company should focus more in process of technology in both online and
offline level.
Legal Factor – These factors include the varied types of laws related to the
consumer safety, environment, health etc. every type of business has to deal
with some legal issues. In case of M&S, they came under public
investigation after the complaint of failing to protect its worker from
possible uncertainty, institution was charged under health and safety at work
act 1974 after ceiling tiles hold the cancer-causing material fell down in a
renew store of Marks and Spencer (Khajeh, and Ghaemi, 2020). They were
convicted and fined 500,000 pounds for the offence. To overcome situation
like this an organisation should be aware and do all the research they
required and make some proper strategies to prevent any legal uncertainties.
Environmental Factor- These factors consider ecological factors. in case of
M&S, the company should support environmental friendly products. The
industry has launched a new menswear range which uses less energy,
chemicals and water in the production process. The company focuses more
towards making the product more sustainable. M&S is working with its
businessperson to battle climate change, use of sustainable raw materials,
trade ethically, reduce waste and help customers to lead healthier lifestyles.
Key drivers of change in the external environment
Introduction External environment
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Key driver changes