Analyzing the Business Environment of Marks and Spencer

This report analyzes the internal and external environment of Marks and Spencer with SWOT and PESTEL analysis. It recommends coaching style of leadership for the company and evaluates its CSR practices.

Context of Business

EXECUTIVE SUMMARY
Analysing the business environment is very essential for the company to get successful. This is
necessary because it will outline the trends going on within the market. The present study
evaluated the internal and external environment of the company with help of SWOT and
PESTEL analysis. Along with this it was also evaluated that coaching style of leadership is more
suitable for marks and Spencer in order to improve their working inefficiency. In the end it was
evaluated that company was undertaking effective CSR practices like protection of environment
reducing of carbon footprints and many others.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
SWOT and PESTEL of Marks and Spencer...............................................................................4
Changes in PESTLE affecting the SWOT elements...................................................................7
Suitable leadership from Daniel Goleman’s (2000) leadership styles........................................9
Corporate Social Responsibility by Marks and Spencer...........................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The context of business refers to as the various decisions which the business needs to
take in order to effectively manage the business. It is very essential for the business to evaluate
the internal and external environment for proper decision making and running of the business for
stock the present study is based on company marks and Spencer which is a large retailer brand in
UK. The company was founded in the year 1884 by Michael marks and Thomas Spencer. The
present report will start by analysing the water analysis for analysing the internal and external
strength of the company. In addition to this PESTEL analysis will also be undertaken for
analysing the external opportunities and threats for the company. Moreover the report will also
analyse the impact of PESTEL over the internal working of the company. Further the discussion
will take place on Daniel goleman different leadership style and one suitable style will be
recommended to the company for undertaking its operations. In the end the discussion will
outline the corporate social responsibility with respect to the company's operations.
MAIN BODY
SWOT and PESTEL of Marks and Spencer
SWOT analysis of Marks and Spencer
Strength
The major strength of the company is that it is
a good and powerful brand in retail sector
Another strength is that the product of the
company is being perceived as value for
money because of good quality of the product
Along with this another key strength is that it
has large number of employees and this makes
it a better working organization.
Weakness
The weakness of the company is that the
company does not have good presence in the
emerging economies
Along with this another weakness is that there
is fake intimation of the product and services
of company (vom Brocke and et.al., 2021)
Opportunities
The major opportunity for Marks and Spencer
is that they must enter in emerging economies.
Along with this another opportunity for the
Threats
The most common threat for the company is
the high and intense competition within the
international market.

company is to undertake and implement
strategy like takeover and merger.
Along with this another threat for the company
is of frequent changes within the need and
preference of the consumers.
PESTEL analysis
Element Description
Political factor The political factor is the one which involves
the changes taking place within the
government and political related factors. It is
essential for marks and Spencer to analyse
these changes because the business exist in the
external environment and there are many
different political and government changes
affecting the business (Song and et.al., 2019).
In the current competitive environment the
political and government conditions of the
country are good. For recovering from the
current COVID situation government has
reduced the tax rate for the companies. Thus,
as a result of this it is an opportunity for the
company to increase their operations as they
will have to pay fewer taxes.
Economic factor The economic factor involved the changes
been taking place within the economy of the
country such as a interest rate, inflation,
purchasing power of the consumer and other
related elements. It is necessary for marks and
Spencer to study the economic factors so that
they can work effectively and in profitable
manner (Mba, 2019). Currently the economic
conditions of the company are good and

developing. The consumer buying behaviour
has increased to a great extent and the people
are shifting towards using quality product and
services. Thus this will pose as an opportunity
to the company as they can market their
products and services in better and effective
manner to attract large number of consumers.
Social factor The social factors involved the changes taking
place within the mind perception requirement
need of the consumer (Zybareva and et.al.,
2021). The need and preferences of the
consumers are frequently changes and as a
result of this it is necessary for marks and
Spencer to study the social factors. With
respect to the social aspects the consumers are
shifting to use good quality product and
services in order to fulfil their needs. Hence
this can act as an opportunity for marks and
Spencer as they can attract large number of
consumers and increase their sales and ultimate
profit of the company.
Technological factor The technology involves the different
machines in techniques for the production
which will reduce the efforts of human. Hence
it is very essential for Marks and Spencer to
continuously evaluate the latest technologies
coming within the market (Myšková and
Kuběnka, 2019). Currently there is a huge
improvement and up gradation within the
technology. Thus as a result of this many new
technologies are evolving frequently and it is

necessary for marks and Spencer to adapt to all
these technologies. Hence when marks and
Spencer will adapt to these technologies then it
will improve the working condition and
efficiency of company will increase.
Environmental factor Currently the environmental factor is also
playing crucial role within the production of
the company's product. While working in the
modern environment consumers have become
conscious relating to the protection of the
environment. It is the responsibility of Marks
and Spencer that they must take care of the
environment while producing the product and
services. The company needs to include the
corporate social responsibility within their
operations so that it attracts large number of
consumers.
Legal factor The legal factor is dealing with all the rules
and regulations with the company need to
follow in order to reduce the goods effectively.
Also it is very essential for the company that
they comply with all the legal and regulatory
requirements (Beynon and et.al., 2021). This is
essential for the company as when they will
comply with all the legal responsibilities then
this will attract the consumers and as a result of
the sales will increase. Thus Marks and
Spencer comply with all the legislative
requirements in order to produce the product
and services.

Changes in PESTLE affecting the SWOT elements
The changes within the PESTEL factors affect the opportunity and threats of the
business. This is particularly because of the reason that all the changes within the external
environment affect the internal strength and weakness of the company to a great extent
(Nascimento and et.al., 2019). Thus it is essential for marks and Spencer to analyse the impact of
all the changes of PESTEL factors over the strength and weakness of meeting those external
factors. Hence for this TOWS matrix is being used by Marks and Spencer to analyse the
interrelation between the internal and external environment.
Opportunities Threats
Strength The opportunity of
implementing the strategy of
merger and takeover can be
attained with help of the
strength relating to a powerful
brand within the retail sector.
This is particularly because of
the reason that the company is
having a good brand value
within the retail sector in this
can assist in an acquisition of
other small companies.
The threat relating to the high
competition can be minimised
with help of good quality of
the product and the distinct
features of the products. This
is particularly because of the
reason that when the product
will be good then consumer
will definitely purchase it even
though the competition is too
high.
Weakness The opportunity relating to
entering within the emerging
economy is difficult to attain
because the company is not
having a good global presence
within the emerging economy.
Hence this can pose as a threat
to the company and is
regarded as a weakness.
Along with this, another threat
of frequent changes within the
need and preferences of the
consumers might be increased
due to the fake intimation of
the products by other
companies. This is particularly
due to the fact that other fake
products are being like by the
company as they are cost

effective.
Suitable leadership from Daniel Goleman’s (2000) leadership styles
For the effective management of the company it is very essential that proper and good
leadership style is being followed by the company. This is very important because of the reason
that leadership guide the employees that how they have to conduct the working (Bismark and
et.al., 2018). Hence due to this reason it is also very essential for marks and Spencer to have a
good leadership style within the company. This is necessary as the leadership style will guide the
people that how they have to conduct all their operations in order to attain the common
objectives.
There are many different leadership styles and according to Daniel goleman there are 6
different styles of leadership. All these leadership are very a system in managing the employees
and working of the company. The six various leadership style proposed by Daniel goleman
involves authoritative, affiliative, democratic, coaching, coercive and pacesetting.
Leadership style Description
Authoritative This is a style of leadership which involves
centralising the power within the hands of few
people. Here the directive leader asked that
team that where they are going but not how
they are going to get there. They live all the
decisions to the team members to find their
own way for attaining the common goal.
Affiliative Further the affiliative leader is the one which
promotes harmony within the team
(Christodoulou and Cullinane, 2019). This
style of leadership focuses on connecting
people together and to resolve the conflicts if
any in fast and effective manner.
Democratic The democratic style of leadership is the one
which focuses on collaboration within the
activities of the business. Here the leader

undertakes the use of this style of leadership
for seeking input from the different team
members in order to attain some common
objectives.
Coaching Coaching style of leadership is the one which
aims at a connecting the personal goals as well
with the organisational goal. Under this leader
uses the style which is more in pathetic and
encouraging focusing on the development of
personal goals as well.
Coercive The coercive leadership style is type which
undertakes the use of autocratic approach of
leadership. Here majorly thin work is being
dependent over the threat of punishment
(Goleman, 2017). There is high control being
placed within the company in order to make
employees work in proper and effective
manner and to attain the objectives of business.
Pacesetting Another type of leadership style is pacesetting
leader should style which majorly focuses on
meeting goals and improving the performance
of the business. Here the leader undertakes the
use of this style of leadership as they expect
excellence from the team members and also the
leader gets involved into the working in order
to attain the goals of the business. This style of
leadership is best suited when the company
needs to get high quality results from the
employees.

Out of all these different leadership styles the most recommended or suitable leadership for
Marks and Spencer is the coaching leadership style. This style of leadership works on connecting
the personal goals of employees with the organisation school. Hence when the personal goal of
employees are also being preferred than this motivates them to work in more better and effective
condition. The leader who performs the coaching leadership style is very encouraging and also
focuses on the development and improvement of future of employees as well.
Also in case marks and Spencer will be using this style of leadership then this will
motivate the employees to work and perform in much more better and effective manner. This is
necessary for the effective utilisation and proper working of the company and attainment of its
objectives. In addition to this another major benefit of using this style of leadership is that this
will reduce the employee turnover from the company (Marić, Kovač and Habek, 2018). The
reason underlying this fact is that when the employee’s personal objectives will also be obtained
within the company itself then they will not switch their job to any other company.
Thus the use of coaching style of leadership will assist managers of marks and Spencer in
meeting their business objectives. The reason underlying this fact is that when the employees
will be happy and satisfied with the operations of company then they will perform their duties in
much better manner. The employees will add their extra benefits to attain the objective of the
business in more effective manner. This is particularly because the employee is knows when the
objective of business will be attained then the personal objective of employees will also be
attained. Hence, the employees will put extra efforts in order to fulfil the need and objectives of
the business.
Corporate Social Responsibility by Marks and Spencer
The corporate social responsibility is a new concept which relates with the duty of
company towards the protection of the society and the environmental concerns. The business
operations many times result in harm to the environment and the society. Hence as a result of this
the working of the environment and society is being affected. It is the responsibility of the
company itself to take care of the environment for effectively working within the environment.
Also the company uses the resources and other elements provided by the environment. Hence it
is the duty of the company to provide something better in return to the environment to which is
environmental protection.

Also the corporate social responsibility does not only involve the protection of the
environment and this society but it also involves taking care of the consumer’s employee’s
business partners and all other stakeholders associated with the company (Agudelo,
Jóhannsdóttir and Davídsdóttir, 2019). Thus, Marks and Spencer is been taking the responsibility
of all the stakeholders and keeping them engaged within the business. Marks and Spencer’s
fulfilling their corporate social responsibility by taking care of all the stakeholders being present
within the business. The company is taking care of every sensitive issue being present within the
society and the requirements of customers along with the protection of the rights of employees.
Marks and Spencer is being associated within the charity and community funding donation
camps. The donations to the charitable companies are being done through the local stores of
marks and Spencer. All these local stores of marks and Spencer have small budget towards the
issues and they support and to improve the local community.
Along with this the clothing and equipment is the central business of marks and Spencer.
Hence the company donates the clothing business surplus to the charity name the new life. The
new life funds medical researchers and support the nurses and develop awareness campaign
relating to the disabled and terminally ill children's. Marks and Spencer donate some all the
clothes returned by the customers due to some reasons and the business surplus or the profits to
the new life charity. Also this donation results in directly funding 400 pieces of equipments for
the children who are disabled.
Along with this the donations relating to the clothing as samples are also sent to the
shelter which is also charity partner and support organisation for homeless people and children.
There are many time some on wanted sales of the floor fitting or the governments which is taken
back as a goodwill and this is being donated within the local charity shops in order to assist a
little in the development of the society. Along with this marks and Spencer also allow some
fundraising to be taken place within their store as well. The company has also provided space for
fundraising for the breakthrough breast cancer.
Moreover in addition to this the company also aims to donate that food to the charitable
organisations so that it can be consumed. The first choice of marks and Spencer for the donation
is fair share which is a community food network which aims at redistributing the surplus food
from the food industry to all the vulnerable people within the community. In this process of
distributing the products to the charitable trust (He and Harris, 2020). In addition to this the

company also focuses on other environmental protection as well. For this the company as a part
of plan A is 5 year ago plan is being prepared for protection of the environment of the country.
The company is having the aim of reducing the energy by 25% and promote the grid electricity
for upsetting there CO2 emission of the last year.
In addition to this the company also aims to buy as much as food from the UK and
Ireland only as possible. This is done in order to cut the air freight of food products and to use
that money in some other effective and efficient manner. Moreover in addition to this the
company is also developing a low carbon product and services which are energy efficient and
will not harm the external environment of the company. The company is also launching
information campaigns for consumers and colleagues working at marks and Spencer by help of
WWF the national federation of women institute and the climate group. In addition to this the
company is also focusing on waste management so that each and every waste can be realised.
The company stop spending on food waste to will and filled and instead of it the use it to
produce the green energy with help of anaerobic digestion. In addition to this the company is
also reducing the non-class packaging by 25% and have cut the carrier bag usage by 33% to
make them free from recycle label plastic.
CONCLUSION
The above report evaluated the fact that for the business to run effectively it is very
essential to analyse the external environment in proper and effective manner. This is necessary
because of the reason that the business exist in the external environment and in case the external
environment is not being analysed then business operations will be affected. Does the above
report was based on marks and Spencer and the external environment of the company. For this
thing use of SWOT was undertaken in order to analyse the strength and weakness of the
company. Moreover the use of PESTEL analysis was also undertaken to evaluate the external
working of the environment. Further it was analysed that the coaching style of leadership out of
all the six Daniel goleman leadership style was most suitable for the company. In the end it was
evaluated that company is undertaking good and effective strategies for the corporate social
responsibility of the company.

REFERENCES
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