Internal and External Factors Affecting Business Performance: A Case Study of Marks & Spencer

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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Determine an understanding of the main factors, both internal and external, which impact
businesses....................................................................................................................................3
Marketing Mix.............................................................................................................................9
Describe the role of HR, Marketing and finance functions within organizations.....................10
Develop an understanding of collaborative working practices..................................................13
Demonstrate knowledge of the role of financial management and reporting within the
organisation................................................................................................................................13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
This report reflects about the internal and external factors that affects the business
performance, element of the marketing mix, role of human resource, marketing and finance,
understandings of collaborating to working practices and the role of financial management
within the organisation. This report is in the context of Marks & Spencer which is British
multinational organisation based out of UK. It is retail business that delivers apparels, food,
banking services and other consumer utility products and services to the international customers.
MAIN BODY
Determine an understanding of the main factors, both internal and external, which impact
businesses
Slide 1
Notes:
In order to analyze the different external factors and their impact on the business performance,
PESTLE analysis is being conducted in order to identify such factors and their impact on the
business activities and formulate right business strategies that best suits the business environment

and business objectives. Pestle analysis includes political, economic, technological, legal,
environmental and social factors. To support further understandings, Pestle analysis on Marks &
Spencer is been discussed below in brief:
Political factors
Political factors include policies and norms framed by government of a country. These political
factors might negatively or positively impact the business performance. Some political norms
and policies framed by the government of UK includes Brexit, free trade and others. Marks &
Spencer have been negatively affected within the implication of Brexit which has further
affected the business activities including free trade, increased business cost so on (Arnold,
Beauchamp and Bowie, 2019).
Economical factor
Economic factors are determined such factors which are is determined by the economic stability
and development in a country. If a business is operating in economically developed and
advanced country it might impact the business in a positive manner, on the other hand, a country
with unstable economic conditions or economic downturn might affect the businesses in a
negative manner. With stable economic condition in UK, Marks & Spencer enjoys operating in
UK in a way that benefits profitability and sales margin of the business.
Social factors
Social factors are determined by social beliefs and cultural value of the people in a specific
country which might affect the business in negative or positive manner in terms cost incurred,
addressing customer preferences and so on. With high purchasing power and mostly middle to
high income earning people in UK, Marks & Spencer enjoys the sustainability in the external
marketplace with enhanced sales and profitability margin (Dimitriu and Matei, 2015).
Slide 2