Business Environment and Leadership: A Case Study of Marks and Spencer
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This case study analyzes the impact of PESTEL factors on Marks and Spencer's business environment, the different leadership styles followed, and the company's CSR initiatives. It includes a SWOT analysis and recommendations for the company's future growth.
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Business Environment and Leadership- Case Study
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Table of Contents INTRODUCTION...........................................................................................................................1 SWOT and PESTEL analysis for Marks and Spencer.....................................................................1 In what ways the changes in PESTEL aspects the possibilities and threats for the enterprise. Critically comment on how the business enterprise is using their strengths to negate threats and weaknesses affecting their opportunities.........................................................................................3 Different style of leadership followed at.........................................................................................5 Best appropriate leadership style followed by the...........................................................................6 CSR..................................................................................................................................................6 Reflection.........................................................................................................................................7 CONCLUSION................................................................................................................................8 REFERENCES..............................................................................................................................10
INTRODUCTION Today, the role of leadership in the modern business environment cannot be underestimated. The main definition of the business environment, all external and internal factors that affect the organization and its activities, including its suppliers, customers, as well as rules and regulations, public administration, and much more. Marks and Spencer is one of the leading suppliers of luxury homes, luxury food in the UK, brought to the forefront to share its expertise. The companycurrentlyoperatesmorethan1,443storesindifferentcountries.Thebusiness environment plays a key role in developing an aggressive strategy and retorting to change. Leadership gives route and animates staffs, and guides them in the direction of their desired goals and business objectives(Brueckner, Spencer. and Paull, 2018). The Britain business environment is at a critical juncture over the next few years due to the consequences of Brexit and the Covid-19 pandemic. In this "new normal" situation, many companies will need to reinvent themselves as efficient and profitable businesses. Therefore, following assessment undergone the impact of the macro environmental factors and the leadership style which is appropriate in concern for the business overall business change due to the SWOT and PESTEL analysis for Marks and Spencer Political One of the most interesting aspects of modern politics and the free market concluded between a numbers of countries. , which mainly operates in the UK, but also has offices in the Netherlands and abroad, and has many advantages. In the call of Brexit, the UK's decision to depart the EU is a political component that could substantially affect (stein, 2018). It is not clean where in the UK after Brexit, specially in terms of alternate regulation and price lists, but, many outcomes are less than perfect for UK merchants. For example, if the UK leaves the eu union in a so-referred to as "hard Brexit", it is able to result in a lack of loose alternate extent with different EU suppliers, which in turn leads to a higher fee for the end user. Impact of the COVID-19 pandemic is stagnant in both the global economy and business in general. As a result, the governments of many developed countries, such as the United States and the United Kingdom, have forced their citizens to boost the economy(King, 2019). On budget clothing, buying for the budget, grocery stores, this new source of competition is to steal 1
market share from more premium brands such as Marks and Spencer, by promoting our customers to enjoy the same product at a much lower price. Social There is a whole generation of online shopping enthusiasts and enthusiasts. This factor increases easy access to the Internet and mobile devices. A strategy that doesn't work or doesn't want to go to the bank can also use the services offered in the Marks and Spencer online store. Nowadays, online shopping is becoming an increasingly popular hobby. Marks and Spencer can take this opportunity to become a champion of even more people around the world. Technological M&S has proclaimed a technological revolution that will permit the stores to become a digital and provide a rich customer experience. It was intended to make a flexible, fast and commercial use case technology for work, which led to business growth. The company is focused on developing a new Technological Management Model that will help Marks and Spencer take advantage of new technologies, including embracing the industry with agile methods(Wagner, 2020).Marks and Spencer is a very innovative retail company. One of the most popular destinations in modern retail, primarily in supermarkets, is self-service. Like most other organic food stores, Marks and Spencer has a number of cash register systems in self- service stores for the fast and self-check out system. Legal The rules in each country are constantly changing. Marks and Spencer will continue its health education programs and update them every year to keep you up to date with current laws, regulations, and regulations(Spencer, 2018).The Marks and Spencer store on Broad Street was fixed at the same time when a light box containing a carcinogenic material fell to the ground. In the end, two objections were raised, one of which is based on the Health and Safety at Work Act of 1974, which provides for the adoption of measures to establish criteria given in the direction of ensuring the safety of employees. Environment: The problem associated with the current weather conditions should be regularly promoted on TV, in journals and newspapers. M&S, should have its own Green Policy, which is called "Plan A". This is an initiative that has been approved by the company to have a positive impact on the well-being of society and the planet. 2
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SWOT analysis Strengths ï‚·Marks and Spencer presents itself as one of the most expensive brands of the product, which is focused on the premium segment. Stay in sync with the image of the products that the seller sells, especially in the clothing line, stylish, modern and elegant. ï‚·M&S has about 80k workforce who work in their stores globally. The organisation encourage and promote diversity and, as a result, men and women of all nationalities, religions, genders and future generations.ï‚·Marks and Spencer, which has both physical and online stores, and will offer franchise options. Weaknesses The impossibility of achieving success in foreign markets, with Marks and Spencer, is, in principle, present in Europe, the UK and the USA. However, there are stores in Asia, the Middle East, they are not going to win customers in the first place, because most of the models are Western and non-traditional(Sughra, 2020).Another problem is that Marks and Spencer takes up a lot of space. In fact, it has been added to 75% of the square meters, and since the early eighties, but its share in the clothing market has not grown. Marks and Spencer must be in search of some new products, the elements are an additional space. Opportunities Fashion is changing, and new segments are coming regularly. In Asia, there is a surge in the demand for cultural and ethnic clothing, which M&S currently cannot use. This is an area that may be promising in the store. Internationalization is seen as a tool that works for the entire market, on a local basis. Export, just a few international franchises in the relationship with it. In what ways the changes in PESTEL aspects the possibilities and threats for the enterprise. Critically comment on how the business enterprise is using theirstrengthstonegatethreatsandweaknessesaffectingtheir opportunities. For more than a century, Marks and Spencer has been established in the UK and now in all parts of the world, and is not just an organization, but the result of global buying and selling. As part of the current climate and macroeconomic problems, along with Brexit, as well as the whole 3
mass of discounts of its competitors and calls for this, it is most often associated with the experience of world records. On the other hand, Marks and Spencer offers certain advantages of a true business arena enterprise, with a large scope of free trade, it will make fashion in the direction of being equipped for food, and a lot of technological trends, as well as a boost for the environment, manufacturers and products. Marks & spencer is the success of the company. The macro environmental marks & Spencer will have to comply with the recommendations of the authorities and environmental protection (bernon, 2018). In addition, Marks and Spencer may need factors located in collaboration with the Agency for the economic, Social and technological benefits of enterprise strategy. However, in a micro environment, marks & spencer has the right and long-term relationships with suppliers and customers. Swot analysis can be identified as the most important part of marks and spencer to meet our customers ' requirements. The main advantage of this is that at the top qualifies and that the client is reliable. Again, the main problem is the lack of clothing, market segmentation, and this means that marks and spencer had to lose its reputation among our customers. This is the principle of Marks and Spencer's strategy in building their assets and current clients. As a result of Marks and Spencer's analysis, they are talking about the merchant enterprise, the systems of community characteristics, as well as the preservation of our markets, position, and growing potential for increasing market share. Marks and spencer has grown into a successful global company. Appeal to a fancy special, top seller comfortable to buy and environment friendly, easy to get permission for marks and spencer, and get a wide range of loyal customers. However, asa resultof a wide rangeof products, aswell ashavingan overviewof marketing, segmentation, especially in the clothing market. Women don't like Marks and Spencer, with clothes ranging from project to color, and young consumers prefer modern design. Faced with different target groups, but also has to change your design .For women-suits, clothing, cut, tailoring, adding a bright colour(Nandamuri, Mishra and Gnanamkonda, 2019).For young consumers to improve the design to show "Marks and Spencer" on their personality. This segmentation allows people to meet different needs and requirements. Also, Marks and Spencer, which should lead to better inventory management. Marks and Spencer has a sophisticated information technology system, with this system you can select and combine it with inventory management to be efficient. This will help Marks and Spencer solve the problem immediately, as well as deliver the product at the right time. With the exception of 4
changing the business strategy of Marks and Spencer, this should take into account the global economic environment. Marks and Spencer should be aimed at a target audience in the Middle Ages, and the middle Class(Taylor, 2018).The source of their income, can afford a very high price, Marks and Spencer. In addition, Marks and Spencer needs to develop the strength of forces to overcome its weaknesses, weaknesses, and companies in the field of features that will help M&S to maintain its position in the market. Different style of leadership followed at Autocratic leadership skills An autocratic leadership style is one in which the manager should be used to give advice to people, to tell them what they should do, and not to ask them to keep their capabilities. The leader is the only person who can contribute to the decision-making process(Priyadarshini, 2020).They are used to holding power and do not understand how they can continue to work in the process of vesting. The result of this technique is that group members are often unhappy with the leader. This leads to a certain consistency, as well as the need to control the high level and low level of motivation among employees. Consulting leadership style Consulting leaders are those who try to consult with other people before making a decision. Alternatively, it will try to contact people to implement the solution. This is the type of leaders who wants to draw on other sources of advice from them. For an executive consultant, one will need to listen as well as be able to make appropriate kinds of channels and consult with other people. In an organization with a culture of dialogue, there will be a number of mechanisms (for example, newsletters, team instructions, suggestions, boxes, etc.) that will allow Marks and Spencer to create an appearance and feel for some of the problems of other people involved in the decision-making process, as well as use their experience. Democratic leadership style Democratic style of leadership is kind of participative style of leadership in which the powers are expanded. This gives individuals and teams the responsibility to make decisions, usually inside the box. The team is responsible for the decisions it wants to make. A leader in this style will feel at home so that other people can make an important decision(Aray and et. al., 2021).A democratic leader will have a full understanding of the decisions made and will have regular 5
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feedback on the results. They are, however, guardians that the power of individuals as well as teams will be responsible for this, they are a good idea. Best appropriate leadership style followed by the In abusiness, there may sometimes be a mix of architectural styles used, for example, Marks and Spencer was in agreement, the company may, through a democratic management style. In the case of a participatory style, the leader consults the dispatcher's future course of action, and any ideas are welcome and appreciated. This is primarily associated with enthusiasm and confidence, which leads to increased job satisfaction, improved collaboration, reduced customer complaints, increased motivation, and reduced levels of exhaustion. By personalizing these two leadership styles, managers need to be able to make changes smoothly and efficiently, without affecting employees ' performance, and at the same time, motivate them to work harder and more efficiently. Employees feel valued and that their opinions matter(Grayson, Coulter and Lee, 2018).A combination of these two styles will be most appropriate for the current situation, i.e. achieving important changes for organizations. Today, the use of company managers and executives seems to be leaning toward a democratic or consultative leadership style. He argued that "by providing advisory guidance to achieve common goals, others are willing to participate for their mutual benefit. In the context of leadership, however, the most important decisions are made by leaders, initially, in agreement with others to address the problem, the better.It has been argued that " attempts by company leaders to implement effective management. will be achieved through collaborative leadership. Company leaders tend to consult with lower-level employees to implement strategy and make key decisions, as already stated, which "smooth" the company structure for such interactions less safely. This means that the company has important features of a democratic management style, but it tends to favor a consultative management style. CSR CSR activities will be a mix accountability ompany, and it's not something M7S can do on their own. CSR reports send a very clear message to shareholders and will be sent again and again, meaning they should look at the long-term sustainability of the business.All CSR activities implemented by Marks and Spencer are grouped into according to Plan A(Chawla and Lenka, 2018).Reports on safety behavior and climate change outcomes, as well as on production 6
and controlled waste, as well as on sustainable raw materials development, partnerships for fair trade, including fair trade and human health.Charitable donations with a view to be made with the assist of marks and spencer local shops. They each have a small and confined budget and consciousness on helping problems vital to the area people. Marks and spencer will donates the returned clothing commercial enterprise and surplus proceeds from the sale and regeneration of garb immediately to finances and 400 pieces of gadget for disabled kids every 12 months. Once in a while at Marks and Spencer stores, when someone can return junk, add-ons, clothing to the store and back to goodwill stations and local charity stores. As they continue to grow their business and invest in the destiny, it becomes extra essential than ever before to strengthen the crew at all ranges - from store floor to control (nasir and anwar, 2019). With a view to appeal to and maintain the quality expertise inside the enterprise, and that they want to show it on a daily basis, it turned into an excellent employer that objectives to make its humans experience valued and provide them with professional development opportunities and great education. As part of social responsibility, M&S has launched a five-year environmental plan, known as Plan A In the three years since the Plan's success, 's environmental performance will improve , and more sustainable products and services will be introduced, as well as providing lifestyle assistance to people in the communities in which it operates. This allows companies to succeed in society, and a good reputation attracts more and more customers. In 2009, as a result of the implementation of the Plan, Marks and Spencer Group plc received an additional revenue of 50 million pounds. In addition, plans are created with the following results:: ï‚·Up to 50,000 tons of CO2 emissions are visible in this process. ï‚·processed on 1.8 million worn-out clothing-using proximity; ï‚·This is waste, up to 20,000 tons, which is removed from the site ï‚·Through charity work, and in 2009, raised 2.1 million pounds to fight breast cancer, with 15% of the energy needed to fund the creation of multi-year research into the causes of the disease. A four-year-old prostate cancer charity, Marks and Spencer, was boosted by $ 200,000 in 2010. Reflection From the above report I have understand that the understanding the environment in which a company operates is very important for success. Thus, from the above carried out study it has 7
been concluded that the this contemporary business environment is dynamic and in order to manage this environment there is need of strong leadership and the CSR activity in order to enhance the business image and being sustainable in the business operations. Also, it has been found that scanning business environment is curical for the organisation as it help the firm to be abreast with the environmental changes like of Brexit and COVID-19 which has affected the business operations frequently. Also, it have come to know across the point that CSR activity are crucial for a global company in order to contribute to the societal welfare and gain public interest and so on. There are several environmental factors that can have a significant impact on the type, location, price, and more. Therefore, it is very important for a company to know about different elementsofthebusinessenvironment,includingthecompany,structure,socio-cultural, technological, legal and much, much more(Pencheva, 2018).Moreover if I talk about the macro environmental factors it has been found that Free trade in Trademarks and import foreign goods to sell them in at own stores for cheaper prices then in another, at the time of managing the strong return leg. AlthoughI have found that free trade has been around for some time, mostly for European brands, such as the UK's decision to leave the EU could control them. Moreover, it has been demonstrated that COVID-19 is the ability to deliver goods to the customer and have contact with the delivery system to the customer, to ensure safety and health at the time of delivery of the goods. The unemployment rate is associated not only with labor market reform, but also with changes in the cost of work. Because a lot of people have lost their jobs, it will affect the standard of living of people, as well as the new norm, changing the habits of the customer, will be limited by the spending limit, if not used, will be made the purchase of a product that does not matter when the person is in the lockdown since many month. CONCLUSION Therefore, from the above carried out study it has been concluded that the understanding the business environment is crucial for the every type of the organisation so that they can have eye on the various uncertain happening which are affecting the business operations in both adverse and imperative manner. Moreover, it has been summarised that scanning macro environment is crucial in order to have eye on the various elements in such manner that help to abreast with the unforeseen changes occurred uncertainly in order to being environmental proactive rather than 8
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reactive. Moreover, different leadership are useful to manage the different business situation in more effective manner. 9
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