Impact of Internal and External Factors on Mark and Spencer Group

Business in Practice
INTRODUCTION
Internal and external factors are the forces which affect
the business organisation. The internal environment is directly
linked with the business organisation. While the external factors
are outside the organisation and impact the operations, decision-
making, profitability and many more in the organisation.
The report covers the impact of internal and external
factors in reference to Mark and Spencer Group. It is
multinational retailer, headquartered in London, England. Report
describes both internal and external factors through SWOT and
PESTLE analysis and how those factors affect the business
organisation. It also reflects how the business organisation and
its operations impact the external environment.
Mark and Spencer Group is multinational retailer, headquartered in London,
England. It is engaged in selling the clothes, food product and household
products.
EXTERNAL AND INTERNAL FACTORS
AFFECTING THE ORGANIZATION
The internal and external factors which affects
the business or Marks and Spencer are described with
the help of SWOT and PESTEL analysis and with the
help of this the main aim of the organization will be
achieved which will help in analyzing what are the
factors which have been affecting the business both
internally and externally

SWOT ANALYSIS
Strengths: Marks and Spencer holds clear brand
image which helps the company in analyzing that
the brand has value in the market and that it helps
in promoting effectively its products and services
to the customers. Marks and Spencer has its own
labels under which it sells the products and
services in the market. The organization makes
and creates innovative ways through which the
company is able to reach to the customers and
provide them the products and services as per
their requirements and needs. There is diverse
range of employees within Marks and Spencer
which becomes its biggest weakness and through
Weaknesses — Marks and Spencer is unable to
penetrate in the foreign markets and this has
created major weakness to the organization. Even
if Marks and Spencer tries to reach out to the
customers at effective scales and fulfills their
needs and demands then also the company is
facing problems with lower satisfaction levels of
the customers which is due to the return policy
which the company has created. The Biggest
weakness which Marks and Spencer faces is the
poor scalability of the supply chain in which the
company is trying to provide the products and
services online but the company is failing to
Opportunities — Marks and Spencer should
involve new segments into the products and
services lines so that the company is able to
provide various and vast sources of products in
which the customers are able to create value for
the products which are being produced at large
scale. There are future opportunities which
should be paid attention to by Marks and Spencer
through which they can expand their brand into
China and India. Marks and Spencer can also
develop their website so that the customers can
buy the products and services through online
platforms and the brand value is being effectively
Threats — Due to high competition in the
market, Marks and Spencer faces high criticism
and competition within the market structure. This
becomes problem for the Marks and Spencer as
there are various competitors in the market. The
competitors are as follows — Sainsbury, GAP,
Next, Morrison, Zara etc. This creates threat in
market for Marks and Spencer and through this
the main aim that is the goal to be achieved is
lost. This is the major threat which the
organization or business is facing right now.
Apart from this, Marks and Spencer has been
shutting its stores in the UK, France and China.

PESTEL ANALYSIS
Political Factors: – Marks and Spencer has had the benefits of EU’s trade
agreements which further led to decrease in sourcing the costs. Marks and
Spencer has the large benefit of the EU markets where the products and service
travel around the world without restrictions and tariffs. These are the aspects
which are to be taken care of in the political factors whenever considered for
Marks and Spencer. Marks and Spencer believes that it is very important that
the government should know what the important aspects through which all
possible facts are and information is considered effectively and at large scale.
Economic Factors: Economic factors include inflation rates, foreign exchange
rates, economic growth patterns etc. These are the factors which have been
considered as important in analyzing and knowing more about the economic
scales. This has helped the company in verifying and denoting the major
aspects which helps in delivering the positive impact to the society and the
economy through the business. Fiscal and monetary policies of UK are helpful
in denoting the financial structure which is contributing towards the business of
Marks and Spencer within the economy. This helps in creating the value
through which the profits and losses are recognized.
Social Factors: Society culture leads a wide impact on the business operations.
The attitude and belongingness play a great role while designing the marketing
message. Marks and Spencer is not a new name in the retail segment. It is the
trusted name among the youth, elders and among everyone. The new and
trendy retail chain comes every year, it impacts M&S to become less trendy
brand for consumers and mainly for younger customers. M&S appeal the
different set of market in terms of social class and demographic. The rapid
increase in consumption of ready-made meals all over the world, will help it in
capturing huge market base as it one of the top multinational provider of ready-
made meals.
For external factors to be analyzed, PESTEL Analysis is being performed which helps in
creating value and helps in knowing what are the major changes in the business which
have taken place. PESTEL Analysis is explained as below

Technological Factors: The advancement in technology leads the retail store in
changing and adapting the new technology. The self-check out points has really
taken the current industry. Marks and Spencer has also introduced the self-
check points and planning to increase the usage of artificial intelligence for the
future prospect. It also has a strong e-commerce presence and offers all most all
goods from clothing to home products. They have taken a traditional approach
to online shopping, they do not deliver food items like other food stores. Marks
and Spencer has also announced the Technology Transformation Programmed;
Environment Factors: Mark and Spencer promote themselves as a luxury
brand, and due to it they are highly concerned about the environmental effects.
They followed the concept of sustainable retail industry and cares about their
production process. It also sells fair trade products. It incurs less production
cost and enable environment friendly production methods. Marks and Spencer
also have their own green policy which refer to Plan A. They work on variety
of areas like; removing the fats from food, the reduction in use of energy and
fair vale of trade.
Legal Factors: The legal formalities and legislations is ever-changing, in order
to keep updated with current laws and legislations Marks and Spencer conduct
the training programed. In his journey till now it is involved in legal disputes.
At that time, it becomes hard to hold it images in long existence. The company
failed to understand the entire issue and covered under the several charges
under the Healthy and Safety at Work Act 1974. they are fine with 500,000
pounds for each issue. That why it continuously keeps conducting the training
on health and safety factors, in order to keep updated themselves with laws
regarding those factors.