SWOT and PESTLE Analysis of Marks and Spencer

This report provides a SWOT and PESTLE analysis of Marks and Spencer, evaluating changes in PESTLE that can create opportunities and threats for the business. It also discusses various leadership styles and suggests which one will be helpful for the organisation in achieving its objectives. Additionally, it evaluates the corporate social responsibility of the organisation.

Context of Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................4
Give give SWOT and PESTLE analysis of the chosen organisation .........................................4
Create evaluate changes in the PESTLE which can create the opportunity and threat for the
business organisation and how the company can use its strength to overcome its weakness. ...6
Discuss the various leadership styles and suggest which one will he helpful for the
organisation in achieving its objectives .....................................................................................8
Evaluate the corporate social responsibility of the organisation ................................................9
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The business is defined as the organisation or a separate entity which is engaged in
commercial, industrial or professional activities. The business can be either profit or non profit
organisations. It is very important for the business to consider the aspect of the business
environment to conduct various activities. The business environment is the collection of internal
and external factors which can influence the operations of the business. The business
organisation which is chosen for this report is Marks and Spencer which is the British
multinational retailer. The company deal in various clothing, home and food products. The
business organisation is situated in London, England. The business organisation is established by
Michael Marks and Thomas Spencer in the year 1884(Freeman, 2018). This report will include
various topics such as swot analysis, pestle analysis, evaluation on changes in the pestle, various
leadership styles and a commendation for the organisation and at last the corporate social
responsibility which is conducted by the organisation.
TASK
Give give SWOT and PESTLE analysis of the chosen organisation
SWOT- This is the tool which is undertaken by the various organisations to evaluate its internal
strength and weakness as well as its external opportunities and threats. This is the most important
tool which is used by the enterprises so that they are aware about what they have in present and
what can be the future opportunities the company can avail in future for its growth and success.
The Swot analysis in context of Marks and Spencer is discussed below:
Strength- The company is in the market from the past 136 years. It is one of the leading
retail business in the United Kingdom. The Marks and Spencer has the well known reputation of
offering the good quality of products to its customers in the market. It doest only have the online
stores but it has many physical stores in Europe, Asia and middle East. M&S has the strength of
offering a large variety of services and products to their customers. They have a good
relationship with the local farmers that helps them to bring fresh product to serve their
consumers(Freeman, Parmar, and Martin, 2020).
Weaknesses- The main weakness of the company is that it was found that in some of the stores
the sale was declining by the end of 2019. this was due to the poor supply chain system and non

availability of the products. The company was not able to meet the required demand at the time
of Christmas season. Also, the perception of the customers that the company does not offer the
clothes for the young and teenagers. This has impacted the company in various ways. The one of
the major drawback for the company is that the organisation heavily relies on the manual
processes.
Opportunities- As Marks and Spencer is the multinational brand and the company has
several stores in countries like India, Brazil, Russia, Indonesia etc. the company has the
opportunity to expand its business in these countries. This means that the company needs to play
an active role by increasing more branches in those countries. Another opportunity for the
company is that sit has online stores but the company can focus on the online facilities so that it
can attract customers and reduce cost. The company can focus on the online growth of the
business(Foss and Saebi, 2018).
Threats- The re4tail market in the United Kingdom has the high competition in the
market. Some of the main competitors of the Marks and Spencer are Amazon, John Lewis, Gap,
Next etc. It is very important for the organisation to change its strategy because of its strong
competitors. Their another threats is government policies due to which they faces the situation of
unsuitability.
PESTLE- Analysis- This is the tool which is used by the various business organisation to
evaluate the external factors which can influence the operations and the activities of the business
organisation. There are various factors which need to be undertaken by the organisation in order
to eliminate the risk and be aware about the circumstances which can affect the business. The
various factors are discussed below:
Political- These factors is related to the extent to which the government policies might interfere
the business organisation and its operations. Such factors include trade policies, tariffs etc. The
Marks and Spencer is impacted by the Brexit move Brexit lead to increase their cost of products
as the United Kingdom decide to leave EU that impact the company in the term of tariffs and
trade regulations. The other factor si free trade that has a positive impact on the M&S, by
allowing them to import foreign products to sale in their store at a cheap rate and high profit
margin(Donthu, Kumar, and Pattnaik, 2020).
Economical- These factors determine the performance of the economy and it has the direct
impact on the business organisation and on the long term basis such factors include inflation rate,

foreign exchange rate, interest rate etc. The spread of the Covid-19 and the pandemic has a
negative impact on the Marks and Spencer where the inflation rate has been has been risen due to
which the people were not able to afford the product of the company. This has lead to the decline
in the sales of the company.
Social- These factors help the marketers to be aware about the cultural trend in the market. These
factors are related to the change in behaviour, attitude, lifestyle of the people according to their
religion, belief and values. It is very important for the Marks and Spencer to understand its
customers preferences and choices according to their country and beliefs. This will help the
company to meet the expectations of the customers and the more customer will be attracted if the
company tries to meet their demand(Ghemawat, 2017).
Technological- These factor is related to the innovation and development and its impact on the
business organisations and its operations. Such factors include research and development,
artificial intelligence, digitalisation etc. in context of the Marks and Spencer, they provide the
facility of self-checkout to their customers in the stores by using technology. With the use of
latest technology, it can also offer their products such as foodstuffs, clothings and home products
through the online by creating a strong e-commerce presence.
Legal- This factor is related to the certain laws which depends on the different country to
country can have the impact on the business organisations. Such factors include employment
law, safety law, labor cot laws etc. This is the most important factor which need to be
undertaken by the Marks and Spencer for its employment safety. The company is responsible to
take safety measures so that it does not have to face any challenges which can impact the
business organisation(Petrauskas and et.al., 2018).
Environmental-These factors are related to the surroundings in the environment which can have
the impact on the business organisation. Such factors include sustainability, climate change,
waste disposable laws etc. it is very important for the company to become more sustainable so
that it can maintain its brand image. The company is taking initiative through the carbo
emissions from the manufacturing and deforestation to farming land as it also introduce own
green policy.

Create evaluate changes in the PESTLE which can create the opportunity and threat for the
business organisation and how the company can use its strength to overcome its weakness.
Political- Brexit
 Opportunity- It boost up the development of Marks and Spencer and make enable them
to grow their business beyond the European Union.
 Threat- The trade restriction has become a hurdle for them as the import and excise
duties increased. It leads to increasing cost and also affect in the sales of the company.
Economic- Inflation rate
 Opportunity- The rise in prices of the product offered by the company is an opportunity
to the Marks and Spencer to grow their revenue and profit margin.
 Threat- As due to the pandemic and the many people have lost their job so this has
impacted in the people and their income ans they have stop consuming the luxury
product. The Marks and Spencer have been affected because it deals in the products
which are high priced. (Kurmanalina, and et.al., 2020).
Social- Change in lifestyle
 Opportunity- After observing the new trend, changing lifestyle and customers demand
the company has the opportunity to develop the products according their the customers
demand which will help in increase the sales of the company.
 Threat- there is the threat of the other competitor which are in the same industry wnd
this can be the biggest threat for the organisation.
Technological- Machinery
 Opportunity- the use of the latest technology can create the opportunity for the company
to make its products in the unique way and this can attract customers for the company.
 Threat- The adoption of the advanced technology has lead to the difficulty for the
Marks and Spencer to manage their financial resources like it is observed that there is the
rise in production cost which lead to higher price of products.
Legal- Employment safety laws
 Opportunity-the business organisation is taking some essential precautions and
following the government safety laws regarding employees safety, make enable the

Marks and Spencer to attract more employees and help to increase their workforce(Fozer,
Sziraky, and et.al., 2017).
 Threat- It is very important for the Marks and Spencer to follow the certain laws in order
to pr5otect the image of the company and save it from any kind of legal actions which
can be taken by the government.
Environment- Sustainable development
 Opportunity- In order to make a reputation and the brand image in the market and as
well as to attract customers the company practice the sustainable development.
 Threat- The production and manufacturing process of the organisation is very useful for
the environment and also helps in generating the carbon footprint which is unhealthy for
surroundings.
AS the company has the strong cash base which can help the company to maintains its
liquidity and the offered opportunities for the more investments in the various other projects at
the different locations. The company has several strengths such as it provides the good quality of
the products to attract customers and maintains its reputation in the market. The company can
minimize their weaknesses by using their opportunities of expand their business at the global
level or worldwide. The company can also make use of its finances so that it can promote its
products effectively. The company can offer various discounts and schemes which will help in
attracting new and existing customers. This can lead to enhance and increase the sales and
growth of the business organisation. The company needs to build relationship with the more
suppliers so that they can overcome with their weakness which is the poor supply chain system
within the organisation. Also the company need to invest in the new technologies which will help
the company in the management and fast process this can make a huge change for the company.
By the use of the new processes the company can increase the efficiency in producing the
products and the cost can be minimized. This will help the company in targeting the new profit
margins and will lead to the success of the organisation(de Andres, and et.al., 2017).
Discuss the various leadership styles and suggest which one will he helpful for the organisation
in achieving its objectives
The leadership is explained as an ability of an individual or the group of individuals to
influence and guide the followers to other members of an business organisation. the leaders play

an important role in the organisation where it has to motivate the subordinates in order to achieve
the desired goals and objectives of the business enterprise. Leadership style is the approach
which provides and orientation the implementation of plans and the motivation to the
employees. In context of Marks and Spencer, it uses Daniel Gold man's leadership style. It
conation six leadership style which are explained below:
 Coercive leadership style- It is referred as the commanding or the directive leadership
style. It is used by the business organisations where it has to make the quick decisions for
the business. The leaders have the full control on everything if this style is adopted by the
organisation. It has the negative correlation with the teams climate and it is particularly
detrimental to the concept of flexibility and responsibility in the team(Zereffa, and
Bekalo, 2017).
 Pacesetting- In this type of style the leaders are obsessed with the perfection personality
The leaders over here set the higher standards and objectives so that they can boost the
actions and performance to accomplish the goals and objectives of the business
organisation. This also contributes to team members resonance by meeting their
challenges and other goals together that gives them a sense of accomplishment. this style
is very beneficial to achieve the higher targets of the organisation.
 Democratic- In this, leadership style, the empowered teams members has the right to
participative in the decision making process of the business organisation. The
subordinates or the employees can give their views and ideas to the managers and leaders
at the time of the meeting which can support in the decision making and for the growth of
the business. It is considered as an effective and efficient leadership style, but sometimes
it is very slow, when there is a requirement of the quick decision.
 Affiliative leadership- This leadership style is all about the peoples, in this style they
want the good and positive work environment. The team members very often receives
some actionable advice or the corrections. This style also create a right level of their
family feeling with in the teams. it require the emotional intelligence and the empathy.
 Authoritative style- In this leadership, there is a visionary leadership style. In this, the
leader give directions to their follower to achieve a common gaol. And let them reach
this goal in which ever way they deem appropriate. It bring people together and work

cooperatively towards the same end goal(Alonso‐Almeida, Perramon, and Bagur‐
Femenias, 2017).
From the above discussion on the various leadership styles it is recommended that the
Marks and Spe4ncer can use the democratic leadership style because this is the most suitable
style where the company can use for its subordinates. This will allow in the more efficient way to
solve the problem. Also the team members are expected tp share their ideas, thoughts and
relevant information which can help the organisation to make the better decision and achieve its
objectives and goals. This leadership style, also encourage honesty at the workplace or within the
organisation(Wei, and et.al., 2020).
Evaluate the corporate social responsibility of the organisation
Corporate social responsibility is the management concept organisation integrate an
environmental and social concern in their enterprise business activity and the interaction with
their stakeholders. It is a self- regulating business model which is very assist able for an
organisation be socially accountable for the public and their stakeholders. The CSR activities are
performed by the organisation so that they are able to contribute in the environment friendly and
help the various aspects. The context of the Marks and Spencer the company adopts various
practices in order to contribute in the CSR activity. It offers the quality of service to its
customers. The company Marks and Spencer has always been taken initiative towards their
employees, customers, suppliers, partners and the local communities. The business organisation
should conduct their values, services, quality, innovation and the trust. Nowadays, every
business enterprise take care of every sensitive issue within the society which can be related to
climate change, charity for the society industrial waste sustainability, health of workers, raw
material management and other ethical trade CSR responsibilities exercise affect the different
areas. The company is taking steps to improve and take care of the sustainable development
which is required in the society and being a responsible citizen for the society. (Hur, and Kim,
2017).
CONCLUSION
From the above report it is concluded that the business organisation a entity where the
commercial activities is being conducted. The business organisation need to consider the
environment also which means that the there are various internal and external factors which can

influence the operations of the organisation. The swot and pestle analysis is conducted so that the
Marks and Spencer is aware about the strength and weakness of the company. It is very
important fro the organisation to consider the various factors which can have the adverse affect
on the organisation. The various leadership style is the approach of the leaders so that they can
motivate its subordinates and the followers to achieve the organisational goals. Corporate social
responsibility is the management concept organisation integrate an environmental and social
concern in their enterprise business activity and the interaction with their stakeholders. The
Marks and Spencer contributes in the CSP activities so that it has a good image in the minjds of
the customer and the company tries to take care of its employees, customers and stakeholders in
every possible manner.

REFERENCES
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Petrauskas, V.and et.al., 2018. CWW elements to enrich SWOT analysis. Journal of Intelligent
& Fuzzy Systems, 34(1), pp.307-320.
Wei, H., and et.al., 2020. The Impact of Nurse Leadership Styles on Nurse Burnout:: A
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