Company Appraisal

This report discusses the challenges faced by leadership in contemporary global business models and their impact on national economy and organisational behaviour. It includes a SWOT and PEST analysis of Mark & Spencer. The report also covers micro and macro economics theories and their impact on national economy and organisational behaviour.

Company Appraisal

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................6
Describe about the main components of micro and macro economics theories and their impact
on national economy and organisational behaviour ..............................................................6
Task 2...............................................................................................................................................1
(A) Explain the challenges faced by leadership through contemporary global business model
in context to modern theories and the importance of effective performance. .......................1
(B) Give examples from chosen organisation with support of tools and demonstrate the
understanding about the organisation, business environment and management inter-
relationship.............................................................................................................................2
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Company appraisal refers to the assessment of the organisation's strengths, weaknesses
and readiness in order to confront the threats and external changes. In the present report, Mark &
Spencer is taken into consideration. Mark & Spencer is a multinational British retailer which is
headquartered in Paddington, London, England. The company was founded by the partnership
between Michael Marks and Thomas Spencer(Arason., 2019). In the year of 1901, Marks moved
to the Birkenhead open market where he amalgamated his business with Spencer. The two men
has allocated the two stall numbers 11 & 12 in the centre aisle in the year of 1903 where they
have opened the Penny Bazaar. Mark & Spencer basically follows the flat organisational
structure which has limited levels of management between front-line and administrative level
employees. It is a public limited company and their main purpose is to enhance the lives on the
daily basis.
The company operates into different countries such as Switzerland, Belgium, Sweden,
Australia, New Zealand, South Africa and Canada. The company basically offers clothing
products such as mean, women, school and kids wear, accessories, bags, purses, socks, tights and
summer essentials. In addition to this this beauty products such as make up, hair care, perfume,
nails and skin care products as well. There are lots of competitors of Mark & Spencer which
include Aldi, Asda, Centra, Tesco, Farm foods, Next, Matalan retail, Debenhams retail, Wilko,
Top shop, All Saints, Argos(Aubert-Tarby and et.al., 2018). Mark & Spencer is a company who
holds its nerve and stand for quality as well. Marks & Spencer's operation management activities
basically ensure that all their products should be of high quality and the stores and the stores are
located into convenient locations.
There are different types of companies into the market which are defined into the
following manner:
 Public Company: It is a company who sold all of the portion of itself to the public
through the initial public offering. The main advantage of this company is that they have
their ability to tap the financial markets through selling stocks or bonds in order to raise
capital for expansion and other projects.
 Private Company: It is the company whose shares may not be offered to the public for
sale and that operates under legal requirements less strict than those for a public
company.

 Voluntary Company: It is the company which basically consist of the aid of volunteers
that provides services to the individuals, countries or groups.
 Charity Company: It is the company which is a group, organisation, non profit
establishment of activists, individuals and social persons
As the legal structure of Mark & Spencer falls into the category of central level because it
has operated on the larger scale and at globalised level as well. The main vision of the
organisation is that they provide a standard which is against its competitors may be measured
from customers experience. They care for the environment and community and to the working
environment for employees (Frost and et.al., 2020). (Govender and et.al., 2019). (Jin and et.al.,
2018). (LEYVA and et.al., 2018). (Nandonde., 2019). (Oesterreich and et.al., 2019). (Pertiwi and
Soesanto., 2022). (Qader and et.al., 2018).The main purpose of Mark & Spencer is to bring
quality, great value food, home ware and clothing to millions of customers on the world wide
basis. Their purpose is also based on this factor that they provide qualitative services to their
customers into positive manner. The main goal of the organisation is that to transform the role
which enables the local economies to thrive, build the socially connected communities and
improve the local communities as well. The main objective of this company is that they have to
build the sustainable business by the consistent, profitable growth and also need to make sure
that to act into responsible terms.
It has been observed that Mark & Spencer majorly blames the BREXIT for the closing of
French stores. Getting fresh food by Brexit “supply chain complexities” has prompted the
closing of eleven stores. It has been observed from the Ukraine war that they have left the
Russian Franchise business and also warned that their growth of sales will slow due to the cost of
living crisis. During the time period of pandemic situation, Mark & Spencer has closed their all
offline stores and provide the services on the online basis (Frost and et.al., 2020). Mark &
Spencer majorly deals into the retail industry due to which they have larger options to explore
themselves into various fields. There are certain challenges which has been faced by the Mark &
Spencer where it is very difficult to regain the performance level and profits of the organisation.
It is also very difficult to gain the customers trust from the longer perspective. It is also difficult
for them to make a future plan for the organisation into positive terms.

There are certain stakeholders of Mark & Spencer which include internal and external
stakeholders. The main internal stakeholders of Mark & Spencer basically include employees
and owners and the main external stakeholders are customers, suppliers and
government(Govender and et.al., 2019). The global impact of internet of things on the
organisational structure is that it help in terms of increasing the efficiency level in the shorter
period of time. The software and appliances which are based on the IOT help in working in error
free and fashion manner for the accomplishment of operation and tasks. The operational part of
the organisation becomes more efficient, productive and result oriented as well. With support of
internet of things the decision making becomes more simplified, to the point and effective as
well. With the help of internet of things, the way of working becomes more smarter and to the
point as well. From the global point of view, the impact is that the evolving collaboration
contribute into the context of enhancing the communication level. Evolving collaboration also
help the organisation in terms of their operational way of working due to which results can be
achieved into fast pace manner. At the global level, the decision making and way of working
becomes more appropriate and planned according to the benefits of organisation.
The role of digitisation on the business structure is that it makes the procedure more
smoother and easy as well. From the point of view of impact, it has been observed that the way
of working becomes more smarter within the business structure. The role of digitisation on the
operational part of Mark & Spencer is that everything has done on the online basis and the
impact is that paper work comes down to a very lower level(Jin and et.al., 2018).The role of
digitisation on the strategies is that to evolve the with the rapid digital transformations taking
place in their relevant sectors and markets. The impact is that the strategies work on the online
basis in order to evaluate the market on the online basis due to which it is easier to plan
accordingly for it. In this manner, the role of digitisation and its impact plays a very significant
role in terms of executing the results into positive terms. So the working of Mark & Spencer on
the online basis becomes more effective, to the point and also contribute into context of time-
saving parameter as well.

TASK 1
Describe about the main components of micro and macro economics theories and their impact on
national economy and organisational behaviour
Micro economics: It refers to the study of individuals, firms behaviour and households in
the decision making and allocation of resources as well. It basically applies to markets of goods
and services and also deals with economic and individual issues.
Macro economics: It is a branch of economics which deals with performance,
behaviour, structure and decision making of an economy into the whole terms (LEYVA and
et.al., 2018).
For analysing the internal environment it is very important that to conduct the SWOT analysis
into appropriate terms. The SWOT analysis of Mark & Spencer is defined into the following
manner:
STRENGTHS
 It has strong brand image into this
international market
 The company has its innovative factor
due to which they can strongly stand
into the market.
 It has diversified on the larger scale and
its presence is on the multi channel
level.
WEAKNESS
 The company has the inability to
penetrate successfully into the foreign
markets
 The customers of Mark & Spencer
exhibits the lower satisfaction levels
and there are lots of issues related to the
returns policy as well as in store
experience.
OPPORTUNITIES
 The company has scope in terms of
exploring their new segments and it has
been observed that fashion is an
evolving business where new segments
comes on the regular basis.
THREATS
 There are lots of competitors of Mark
& Spencer which includes Gap, Uniqlo,
Tommy, Zara.

For analysing the external environment of Mark & Spencer, it is very important that to
conduct the PEST analysis into appropriate terms. The PEST analysis of Mark & Spencer is
defined into the following manner:
Political Factors: Marks & Spencer believes that it is very important that to work into closer
terms with the government so that they can protect the legitimate interests (Nandonde., 2019).
They have to respond on the customers queries which is available on their site on the public
level. There are two main factors which affects the company are the political stability and taxes
as well.
Economic Factors: The financial crisis can however lead towards the decrease in the demand
level of high quality products for Marks & Spencer because of low disposable income in the
hands of the consumers which further reduces the ability to spend on luxury or
clothing(Oesterreich and et.al., 2019). The company has been affected by the crisis as the
company has to make job cuts which is of 2% of their staff of 70,000 employees.
Social Factors: It has been observed that the consumer purchases has been affected by the
different cultural, social, personal changes in the market. There are certain shops in London who
don't stock the classic collection rather they have go with the limited stock collection and the full
autograph range(Pertiwi and Soesanto., 2022).There was increment into the trade of more than
10% after credit cards came into the market. Mark & Spencer took the advantage of this
opportunity and also allowed the customers to pay through credit cards which further increased
its sales.
Technological Factors: The company has announced the transformation technology programme
which enables the company to become a digital first business and delivers the diversified the
customer experience. The company is majorly focused on the creation of new technology
operating model which help the Mark & Spencer in exploiting the technology which includes the
adoption of industry agile methods.
This analysis helps the organisation in terms of identifying the threats and opportunities
of the organisation into positive manner. PESTLE and SWOT analysis help the organisation that
how they can improve themselves in order to contribute towards the economic development and
growth as well (Qader and et.al., 2018). This analysis helps the organisation in terms of decision
making and the steps which needs to be taken for further growth and development. In this, this
analysis impacts the national economy and organisational behaviour as well.

Task 2
(A) Explain the challenges faced by leadership through contemporary global business model in
context to modern theories and the importance of effective performance.
Leadership is refers to a development in people and helping others in order to reach their
full potential. (Cheong and et. al., 2019) It is an art of motivating a group of people at act
towards achieving common goals. Leadership is a ability of an individual or group to influence
and guide members of an organisation. There are various challenges that were faced by leaders.
One of them are mentioned below. Transforming business while maintaining strong
performance- Changes are constant, there has been dramatic and unexpected changes in current
environment. In order to remain competitive organisation need to keep transforming there
research according to company ability to reinvent them to unlock for extraordinary growth. In
context to Marks and Spencer, leaders have faced various problems in order to maintaining the
performance of company and keeping up with environment changes. Such as the management
has planned during end of 2019 just before pandemic hit. Due to which every growth maps were
become useless. Hence, leaders must ready to flex between the organisation performance and
transformation without sacrificing each other.
Business makes their plans in terms of generating profits. In order to do that they create a
model to identify products and services. The business models help to target the base of customers
fro company. It helps in creating marketing strategies. There are different types of business
models such as.
 Business to Business model (B2B)- This model is taken place between two companies or
business. It is sale that is made in bulk amount at lower cost for business. This has good
market predictability and has more stability in market.
 Business to consumer model (B2C)- This model refers to business that sells their
products directly to their customers.(Madsen, 2020) In this there is ongoing demand fro
products as they are essential part. Since their is direct contact between customers the
information is shared with them directly and in easy way. Hence, this will eliminates risk
of fluctuation in demand and helps maintaining consistency in organisation.
The importance of controlling effectiveness of organisational performance
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 It helps in providing a look into future of company. As leaders can see any potential
future problems that might affect performance of company. In case of Marks and
Spencer, the leader can sense that certain employees are not taking part in team player
and provide them training to revolve around teamwork.
 Helps in creating development & training strategies. Leaders focus on developing their
team members and train them according to their issues and areas that need to be taken
care of. (Usman and et. al., 2020) With performance management it would be detected
and then organisation create training programs in order to change issues into an
opportunity fro better improvement of company and employees.
 Increase employee retention, as performance management will also encourages company
in order to reward and recognize their employees. They want to feel appreciated for th9ier
hard work in company. The ability to give feedback and additional training when needed,
recognition and rewards can have a vital role in employee retention.
Importance of strategic management.
Strategic management helps in providing overall direction through developing policies
and plan in order to achieve objectives and then allocating resources to implement their
companies plans.(Hitt, Ireland and Hoskisson, 2019) The importance of strategic management in
company is important because.
 It identify opportunity- With identifying strength and weakness through studying
internal and external structure of company. It helps understand potential that need their
attention.
 Prepare for the future- Strategic management help organisation to prepare for future. It
can be benefits after understanding the important it become helpful to prepare
contingencies.
(B) Give examples from chosen organisation with support of tools and demonstrate the
understanding about the organisation, business environment and management inter-
relationship
Marks and Spencer donates returned clothes and organisation surplus them and the
money is raised from sales and recycling the garments funds 400 pieces of equipment for
disabled children every year. (Erthal and Marques, 2018) The global issues that were faced by
company are that its market presence is huge, but there are still some countries where customers
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are waiting for organisational to do their operation. The global economy of Marks and Spencer is
huge. There re over 1000 stores located in UK and its operation is worldwide. Organisation
ethical decision making is to ensure that their supplier pay fair wages to their workers and they
have zero tolerance on issues such as modern slavery, discrimination , child labour and
harassments. Marks and Spencer has an accountability to built a core values that includes, value,
innovation, services, trust and quality. Company is also focusing on creating job opportunity for
people of every age, colour and beside discrimination. The organisation culture of the Marks and
Spencer is to celebrate the diversity of their colleagues workforce in different number of ways,
that will always aiming for involvement in everything that do. It is just the part of way that they
encourages everyone within organisation to feel them welcome so that they can be free at work
through joining their colleague networks.(Martínez-Caro, Cegarra-Navarro and Alfonso-Ruiz,
2020)
There is a inter-relationship between organisational structure, business management and
business environment is that. An organisation environment is taken into consideration of
strategic assessment. The environment is bas source of resource that company is required for
their operations. It helps in providing different opportunity and threat that might affect
companies growth and it influence various strategic decisions that must be execute.
Organisational structure help determining the organisational behaviour and influence them into
company culture. (Svensson and et. al., 2018)It also helps in designing structure for company
that often regulate flexible according to changes. Organisational structure helps in managing the
production and operation of company and ensure smooth process within organisation. Structure
give a base for management of company and protect management of company business
environment allows to identify external and internal that might affect operation's of business.
And through management that problems can be avoided. Organisation has one of the various
functions of management that helps in executing other function of enterprise. The basic function
of enterprise as there output and input conversion were carried by active interaction with
business environment. (Pham and et. al., 2020) It helps in receiving inputs from environment that
converts them into output through productive facilities that allows to receive environment and
then sends them back to environment.
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CONCLUSION
The above stated report concludes that company's appraisal plays a very significant role
at the organisational level. It has been concluded that a company's description involves various
parameters such as organisational structure, vision, mission ,objectives, legal structure, historical
background etc. It has been concluded that there are certain key components of micro and macro
economics theories and it has bigger impact on the organisational behaviour and the national
economy. It has been determined that there are certain challenges posed to leadership through
contemporary global business models into context of modern theories. It is important to
understand the importance of control in terms of effective organisational performance. It has
been observed that there is interrelationship between management, organisation and the business
environment as well.
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REFERENCES
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Cheong, M. and et. al., 2019. A review of the effectiveness of empowering leadership. The
Leadership Quarterly, 30(1), pp.34-58.
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organisations: a systematic review. Production Planning & Control, 29(8), pp.668-687.
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economic business models for hard disk drives and rare-earth magnets. MRS Energy &
Sustainability, 7.
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project. Journal of Cleaner Production, 214, pp.154-165.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2019. Strategic management: Concepts and cases:
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Jin and et.al., 2018. A Case Study of Marks and Spencer lost China. Journal of Industrial
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espacios, 39(16).
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Nandonde, F. A., 2019. A PESTLE analysis of international retailing in the East African
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impact of digitisation on the controller's job roles, skills and competences. International
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Insemination Center (IAC) Development Strategy with Business Model
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Svensson, G. and et. al., 2018. Framing the triple bottom line approach: Direct and mediation
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Usman, M. and et. al.., 2020. The Importance and Implication of Knowledge Management and
Its Impact on Organizational Performance. Abasyn University Journal of Social
Sciences, 13(1).
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