Mark and Spencer PLC London Research Paper 2022

Running Head M&S 0
Mark and Spencer PLC

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Contents
Introduction..............................................................................................................................2
Importance of PESTEL............................................................................................................4
PESTEL analysis.....................................................................................................................5
Conclusion...............................................................................................................................8
Reference.................................................................................................................................9

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Introduction
In the UK, Mark & Spencer is the largest British retailer in the clothing sector and operates
almost 1463 stores in almost 30 countries globally. M&S is founded by Michael Marks and
Thomas Spencer in 1884 and he started selling in the small market of Northern England. It's
headquartered is in London, UK. Mark & Spencer operates in clothing, home & food sector and
does business in other retailing by using the brand model and their main focus is to deliver the
great value to its customer for money. An organization needs to have an organization structure to
achieve its goals and objectives. Flat organizational structure is followed by M&S PLC as it
includes a limited level of management in the level of administration and front line management.
M&S follows this structure as it helps in encouraging employees while making the decision
process. It is followed to decrease bureaucracy and helps skilled employees in making decisions
by giving authority (Perera, 2017). It helps the management level to make a rapid change and
solving problems in the communication between upper managers and baseline managers. In
Mark & spencer, there are almost 3000 people in London who are employed in London. M&S
target market is middle and high-class consumers. From 1914 the company has made changes in
technology advancement for providing high quality and value to its customers. It became a
public company in 1926. The key principles for creating Marks and Spencer are quality, value,
innovation, trust, and service.
M&S's mission is to provide the products to consumers of a new quality in food, clothing,
financial and home services. They ensure to deliver high-quality products to consumers at
affordable prices. They ensure to give value for money to its customers. M&S vision is to be the
standard against which others are measured (Pan, et al., 2018). Its organizational goal is to
increase the sales and market share in retailing and become the world's most sustainable retailer.
M&S believes that effective governance is done through leadership and collaboration. Board
members give the compliments, support and enhance the employees at work for motivation. By
working together, they ensure that with the interrogation of plans and actions and ensure to make
a strategy, performance, responsibility, and accountability with high-quality decision making.
Chairman ensures that the actions sustain and harnessed and ensures to make continuous
improvement in the performance and standards of business (Rastogi and Trivedi, 2016). The

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Board of M&S endorses the governance framework and publishes everything on the website for
shareholders and stakeholders so that they can see the standards. M&S ensures to make and
produce good business and performance because of good governance. For the M&S brand, the
board is the guardian and maintains the reputation and stakeholder's relationship for doing the
right things in the right way. Chairman Archie Norman has said that the honesty and constructive
feedback which is gained form collectively and reviewing individual performance brings the
maximum effect in the performance (Jackson, and Sparks, 2005).
Senior Independent director- the role played by the senior independent director is to support the
chairman in all the governance issues. They provide a communication channel between the
chairman and non-executive directors, and also communicate between shareholders. Their main
responsibility is to provide a sound to the board and serve as an intermediary (Yuksel, 2012).
M&S develops a competency framework for employees of an organization as it is aligned for
leadership brand attributes. They maintain sound judgment in pressure and also take the
decisions in difficult situations (Mellahi, et al., 2002). They maintain a constructive relationship
with investors to listen to their issues and maintain their support. They help in upholding the
highest standards of integrity and probity.
Non-executive directors- to bring an independent and external dimension, non-executive
directors play a major role in making a strategy for the business. They help in conducting the
board activities which includes the risk, people and performance. They support the board in
making the decisions and in constructively challenge. The executive team is managed and
monitored by directors. Their main responsibility is to promote the long term success so that it
will benefit to shareholders and also helps in protecting the shareholder interest by maintaining
the corporate governance committees (Makos, 2015). They empower the executives for
implementing strategic decisions. The performance of non-executive directors is reviewed by the
chairman and remuneration is decided by the chief executive and the chairman. There are almost
9 directors on board including chairman and chief executive and five are non-executive directors
(Issa, et al., 2010).
The chairman of the company is Archie Norman and chief executive is Steve Rowe. Mark and
Spencer have appointed the chairman who is former conservative MP and ITV chairman. He was