Understanding the Business Environment - Analysis of Mark and Spencer

Understanding the Business
Environment

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK-1 ...........................................................................................................................................3
Introduction of Business Organisations.......................................................................................3
TASK-2............................................................................................................................................5
Analysis of stakeholder of Mark and Spencer.............................................................................5
TASK-3............................................................................................................................................6
a) PESTLE analysis of Mark and Spencer.................................................................................6
b) Examination of current behaviour of M&S with the help of Porter's five forces model.........9
TASK-4..........................................................................................................................................10
Current situation of Mark and Spencer in the market place along with certain
recommendations to improve the company image....................................................................10
CONCLUSION..........................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business Environment is a mixture of circumstances, objects or conditions in which
business is operated. It consists of various internal and external factors that affects the overall
operations and performance of business. The external factors are beyond the control of business
like customers, suppliers, government, competitors, political, economic etc (Cepel and et.al.,
2019). Business environment enables the firm to identify opportunities and threats prior so that
corrective majors can implement to cope up with the challenges. The concept is about Marks and
Spencer which is British multinational retailer headquarter in London. Apart from this, the study
describes Marks and Spencer market structure along with its main objectives. Various terms are
defined and stakeholder analysis is performed to remove the barriers and risks in the
organization. It further includes business environment analysis tools and framework to identify
the problems and challenges of M&S. At the end of report the recommendations are given to
increase the business performance.
MAIN BODY
TASK-1
Introduction of Business Organisations
M&S is a foreign international retailer brand in England in 1884. The organization deals
in clothes, apparels, home merchandise and food products. The brand is built to make better
quality goods accessible to consumers by offering range of goods. The company presently has
many stores across the country and operates maximum stores exclusive in selling eatable
commodity. Marks and Spencers also provide network food delivery service by combining with
other business. M&S is a public limited company which offers the shares to public through the
stock exchange. The company's main purpose is to inspire and engage more of peoples who
simultaneously visit the shops worldwide. This will promote to improvement in lifestyle. The
main motive of M&S is to stand a sustainable enterprise through increasing economic growth.
M&S follows a flat structure in the administration with minimum steps involved in
communication process between the subordinates and upper level managers. By appropriate
formation in the system, helps to promote employees in efficient in their responsibilities.
Market constitution defines the industry's classification and differentiation. It is accomplished on
the level and basis of rivalry for the goods and services (Farboodi, Jarosch and Shimer, 2017).

The company operates its activities under competitive situation. The belief of M&S are prime
offerings, reasonable spendings and work below the operations of its challenger. The company
operates various stores and has many competitors like Lawson, Macy's, John Lewis partnership,
Tesco etc. The M&S was successful by introducing different stylish, consumer goods likely for
all gender of consumers.
Marks & Spencer operates under the market structure of oligopoly. Oligopoly market is scenario
which is dominated by small number of suppliers. These markets are often termed as competitive
as there are same offerings of products and services in the market. Through innovations and
creative ideas the brand design unique clothing with appropriate quality of goods. M&S as an
Oligopoly market structure is a well-known British retailer and has many stores around 30
countries globally. In UK alone, it has more than 500 chain stores, that it is the largest clothing
retailers in the country (Pellegrino, 2019). The company has huge investment in food and
clothing retailing industry. In terms of revenue the company is currently enjoying the increasing
growth of its income and revenue. The new entrants in the market is difficult to operate because
the brand loyalty of M&S is great among the customers. Trade name serves the bases of
operations for the loyal customers (Adamseged and Grundmann, 2020). Moreover, the company
is facing more cut-throat competition in the market. In this scenario, the company can adopt the
strategy to lower down the prices in order to attract more customers. However, this strategy will
make less possibility of new entrants to survive.
The M&S can also use its knowledge and experience about the market to make new
innovations on their products and services. This will eliminate the existing and new entrants in
the industry. Organisation often cooperate to set a particular cost of products rather than makin g
comparison with each other to gain customers attention. (Dedahanov, Rhee and Yoon, 2017).
Businesses in oligopoly market control the prices which makes more competition. The main
objective of the company is to earn profit which helps in further growth and expansion of the
business.
TASK-2
Analysis of stakeholder of Mark and Spencer
Stakeholder is a individual or a group of individual that has invest in a company. Who
can be affect by the company. Business stakeholder can be internal and external of the company.