Marks and Spencer: Impact of External Factors, Leadership Style, CSR, and Effects of Brexit and COVID-19

This report analyzes the impact of external factors on Marks and Spencer using PESTEL analysis, recommends a suitable leadership style, critically comments on their Corporate Social Responsibilities, and discusses the effects of Brexit and COVID-19 on the business.

Context of Business

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Impact of external environmental factors on Marks and Spencer using PESTEL analysis.........1
Recommend a suitable leadership style that will help to achieve the effective business
objectives.....................................................................................................................................3
Critically comment on their Corporate Social Responsibilities...................................................5
Effects of Brexit and COVID-19 pandemic in 2020/2021 on Marks and Spencer and how the
business addressed the situation...................................................................................................7
Situation analysis of Brexit..........................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The context of business can specifically encompass an effective understanding of the
elements which can make influence over the business from several perspectives, consisting how
the decisions are being made. In this, there is a chosen organization Marks and Spenser which is
a major British multinational retailer that is headquartered in the London, United Kingdom. The
organization was mainly founded in the year 1884, when the Michael Marks, a polish refugee
generally opened a market stall in the Leeds with including the slogan such as don't ask the price,
it is a penny. In this, Michael Marks had later entered into a partnership with Thomas Spenser
within the year 1894 (Ghobakhloo and Ching, 2019). They both had started their first shop in the
Leeds in the year 1904. there are about 1433 stores across the world and having 979 stores within
the U.K with having about 32 million of customer base. In the report, there is a discussion about
the impact of external environmental components on the Marks and Spenser with help of
PESTEL analysis. In this, the leadership styles can play a specific role within the business
organization so as to accomplish an effective business objective. There is a discussion about
appropriate leadership styles which can aid to accomplish an effective objective of a business. In
addition to this, the report will also cover the effects of Brexit and the outbreak of COVID-19
over the organization such as Marks and Spenser and what specific steps did organization take in
order to address the situation as well.
MAIN BODY
Impact of external environmental factors on Marks and Spencer using PESTEL analysis.
There are the factors such as Political, Environmental, Social, Technological and many
more which can influence the Marks and Spenser organization. The evaluation can be done by
using PESTEL analysis and are as following:
Political element: In this, Marks and Spenser have a brand presence that is broadly
spread among various countries. The political element is generally associated to the involvement
of the administration within the economy and can involve the specific policies such as political
stability, trade restriction, labour legislations, tax policy as well as the environmental
legislations. In this, the organization has always keep the good benefits through Free trade. Such
free trade facilities can specifically aid as well as can enable to import the foreign products for
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having sales within the stores at a very low pricing than earlier it is because it is generally
imported in Abroad.
Economic element: In this, having enhanced rates of inflations of any specific economy
can make influence in a manner the Marks and Spenser can work on the price of both products
and services. Within this, an economic element can involve interest rate, inflation rates and the
foreign exchange as well. In addition to this, the policies such as fiscal and a monetary are
generally managed as the administration has a strong finance as well as less rates of inflation is
being maintained. In context with Marks and Spenser, they always align the specific strategies
that can give the quality products and services as well. Though sometimes just because of some
of the external factors, the organization have to face the financial crisis as well (Matumba et.al.,
2021).
Social element: In this, the social element can effectively hold every aspect such as
growth rates of population, health consciousness, distribution of well-being, career attitudes as
well as stress over safety. It is known that there has been various alterations within the
community among the past 10 years. The organization has generally started the ready meals
within the food industry for their consumers with the aid of new technologies that has enhanced
their sale power within the food industry. Within UK, M&S is generally the top 10 ready
distributors in meal. Though, there are some of the components which can influence the purchase
of consumers such as psychological, personal, social alterations and cultural as well.
Technological element: In this, the technological element can involve aspects such as
R&D, the specific rates of technological alteration, technology incentives and automation are the
factors which can lead to a new innovation. The M&S generally have modern perspectives so
they can give almost all their goods such as foodstuffs to the home products, clothes as well as
having an online delivery too. The company generally started utilising mass new technology that
can affect its huge production and sales as well (Parida, Sjödin and Reim, 2019).
Environmental element: Within an environmental element, the components can involve
alteration in climate that can influence the organizational operations as well as these such
elements are ecological as well as the environmental aspects like wealth, alterations within
climate and many more. Due to this, it can mainly make impact over Marks and Spenser like
insurance, tourism and farming as well. In addition to this, the Marks and Spenser has generally
founded a Plan A that can involve their own green policy. This such acquired policy can provide
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a positive influence over the environment of the society, health planet by the organization. The
company is also aware about its carbon usage as well as can specifically aid to overcome an
emission recently.
Legal element: In this, the legal element can specifically influence the operations of an
organization that can indirectly affect the demand and cost of its products and services as well. In
this, it can involve the consumer legislations, employment, health and safety legislations and
discrimination legislation as well. The Marks and Spenser has always conducted the effective
training sessions on the region such as well-being and update them within year to maintain the
organization updated with the present legislations and regulations as well. Though, Marks and
Spenser has a multiple legal disputes such as Franscati landlord, it is generally a shopping centre
within the market Dublin suburb of Blackrock. In addition to this, the project was more than
twice retail space at the complex, consisting a sizeable extension towards 20,000 sq ft.
supermarket unit mainly occupied by the M&S company (Pieroni, McAloone and Pigosso,
2019).
Recommend a suitable leadership style that will help to achieve the effective business objectives.
A leader within an enterprise corporation is mainly accountable to offer specific
direction, approach as well as motivation towards all the workers in the organisations. The
management style can be described as overall behaviour of the managers even as enforcing
strategies, making plans, motivating and dealing with the humans with inside the corporation.
Every manager within the business enterprise has their very own of doing enterprise. It is largely
a class of the way someone or managers behave at some point of main the crew or organization
within the enterprise corporation. The management style can accommodate the diverse
advantages such because it can afford the guidance, construct trust, motivation, constructing
paintings surroundings and construct confidence as well. The manager within the business
generally requires to have knowledgeable, proper or effective conversation skills, honest, self-
esteem and initiative with the intention to hold the interpersonal associations organization and
employees. There are generally some of the leadership styles which are as detailed below:
Autocratic or commanding leadership style: In this, the management style is mainly
described because the pinnacle to backside approach. In this, an autocratic chief can take
selection without having the involvement of others. It generally means that the group participants
aren't allowed to make selection on such styles. It is critical whilst calls for to take selection
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speedy in the crucial scenarios. The style additionally enables to defining the people roles and
obligations within the agency clearly. It additionally poses a few hazards as because of single
individual can take the selection, there's no range of notions as well. Furthermore, the teams or
companies can feels that they do now no longer have character voice in order to take part in
expert growth.
Bureaucratic leadership style: In this, the leadership style is more commonly seen
among well founded as well as a big companies. The Bureaucratic leadership style can involve
clear authorities, strict rules and obligations as well. The style is mainly established within the
administration like the military and public sectors as well. In addition, the bureaucratic managers
can significantly follow the defined sets of rules and obligations that can make them to one-sided
towards the policies within an organization. In this, the styles can specifically produce challenges
for innovation among the workers. The advantages of such styles are that there is mainly the
clear set of rules that are defined as well as can removes the favouritism as well. Furthermore,
there is generally an absence of innovation within the workers as well as can produce challenges
towards alterations within organization. The leadership style doesn't encourage the professional
growth of a person as well (Podsakoff and Podsakoff, 2019).
Transactional leadership style: In this, transactional leadership style can include a short-
term plan. In the style, managers only care about the work of their employees. It is primarily
used in sales and marketing where leaders set personal goals. The transactional leadership style
relies on rewards and gratitude to motivate employees to achieve their set goals. In addition, this
is defined as a clear exchange between the employee and the team leader, as this leader must
define the goal and reach the goal within a certain period of time for the employee to be
rewarded. The downside of this style is that it limits the growth and creativity of the
organization. It also has a negative influence on the career developmental authorities. This is the
most effective style for achieving the short-term goals.
Participative leadership style: In this, a participative leadership styles are more
commonly referred to as democratic leadership styles. This leadership style requires skill and
knowledge. In this style, democratic leaders develop confidence in their leadership style. This
type of leadership style is also common in schools, government agencies, and various businesses.
Leaders take opinions from their subordinates and make decisions. Promote collaboration and
collaboration between employees. This leadership style provides a creative solution that allows
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employees to participate in the decision-making process. Marks & Spencer's management
employs a democratic management style to achieve the desired goals. The main drawback of
democratic leadership styles is the time-consuming decision-making process. In context with
Marks & Spencer's, the organization is following a consultative leadership style in which the
managers of that organization can consult with the subordinates or their seniors to make the
decision in contrast with mutual advantages. The consultative leadership style is further
explained below as:
Consultative leadership style: A Consultative leadership style is a style which can concentrate
over team building. In this case, the leader consults with other team members to get their
opinions and opinions and make efficient decisions. Therefore, M & S managers usually consult
with the lowest level subordinates before making strategic decisions (Prakash, 2021).
The leadership styles which must be used by Marks and Spenser organization is
Consultative leadership style. It is because the managers of the organization should consult with
their subordinates prior making any specific decisions.
Critically comment on their Corporate Social Responsibilities.
A corporate social responsibility is mainly defined as the concept by which an organization
defines the social and environmental measures in its business functions. This is a corporate
strategy that defines how a company can improve society. Corporate social responsibility plays
an important role in the reputation of society and the brand. The most effective way to boost
morale in your work environment. A corporate social responsibility builds a strong bond between
employees and the company. If a company wants to fulfil its social responsibilities, it must take
responsibility not only for itself, but also for its stakeholders. Corporate Social Responsibility is
a strategy that companies use as part of their corporate governance to ensure that their business is
beneficial to society. These responsibilities are divided into human rights responsibilities,
financial responsibilities, philanthropic responsibilities, and environmental responsibilities. Here,
human rights stewardship deals with fair labour, and environmental stewardship deals with
environmental policies such as carbon emissions, pollution and waste management. Charitable
activities include charitable activities, health donations, and education funding. Corporate social
responsibility contributes to brand awareness, increased sales, cost efficiency, and easy access to
finance.
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Marks & Spencer has defined various social responsibilities to do effective business. The
company implements various policies that are useful for the environment, health and human
rights. The company bears the following corporate social responsibilities. In 2004, the company
launched a corporate social responsibility program as "Ready for Work." The main aim of the
program is to concentrate on giving the effective business skills to introduce business
management to specific individuals. The goal of the Ready for Work program is to improve the
financial well-being of 4,444 communities and protect the environment. There is also a good
relationship between the company and the work environment. Emphasis was also placed on
fostering entrepreneurship between the unemployed and students. Other programs the company
has focused on include building hospitals, providing scholarships to students, and building
schools and medical centres (Ringo et. al., 2022).
Charity: In this, the company is funding a charity. This fund comes from Marks &
Spencer's various businesses. The shop allocates limited funds to support various charities. The
company develops partnerships with various charities such as Prince's Trust, The Homeless,
DisabledGo, One Parent Families & Parentline Plus.
Clothing: In this, the organization can donate the returned cloth and surplus funds to the
New Life Trust. The New Life Trust will then fund various departments such as the Medical
Research Center and awareness campaigns to provide equipment for people with disabilities. The
surplus funds raised from the sale and recycling of clothing will directly help the Foundation
provide 400 devices to people with disabilities. In addition, the clothing samples received will be
donated to shelters that support the homeless.
Food: The company donates surplus groceries to the FareShare charity. FareShare is a
charity that continues to distribute Essen to those in need.
Climate impact: In this, the company has created a five-year environmental plan to tackle
climate change. The company aims to reduce carbon emissions and become carbon neutral in the
UK. The company is reducing energy consumption at various branches by 25%. Use renewable
energy sources to power your stores and minimize carbon emissions. The company is also
focused on developing energy-efficient products that help customers reduce their energy
consumption (Şahin, Karadağ and Tuncer, 2019).
Waste management: In this, the organization is generally committed to proper waste
disposal. As part of a five-year plan, the company has stopped sending waste to landfills
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nationwide. The company uses waste to generate green energy. The company has also reduced
plastic packaging for a variety of products by 25%. We use packaging materials that are easy to
recycle.
Training & development: Marks & Spencer offers a variety of qualification programs to
the unemployed and students, providing them with the opportunity to build a career at the M & S
Company. The company found that about 30% of those who took the training program were
employed in various industries. It has a positive effect on the brand value of the company. In
2005, the company expanded the scope of its Ready for Work program to improve people's lives.
These efforts have allowed the company to foster a positive image between its customers and
stakeholders (Schuerger et. al., 2022).
Effects of Brexit and COVID-19 pandemic in 2020/2021 on Marks and Spencer and how the
business addressed the situation.
Brexit generally refers to the "UK" and "withdrawal" that the United Kingdom will
withdraw from the European Union (EU) in 2020. This UK withdrawal is negatively impacting
the corporate of both the UK and the European Union countries. Similarly, Brexit has influenced
the business of British retailer Marks & Spencer. It turns out that the company has closed 11
grocery stores in France. Products from various stores in France were shipped from
Northampton, England. This made it difficult for suppliers to deliver their products. This Brexit
has affected the distribution supply chain. It is impossible for a supplier to deliver a fresh product
to a customer. The main reason is due to changes in national policy. Prior to Brexit, the United
Kingdom followed the rules and regulations set by the European Union, making it easier for
suppliers to manage their supply chains. Marks & Spencer reported over about $ 22 million in
costs by the end of March. The organization has changed the delivery of its products in the
Czech Republic for Brexit. The organization has expanded the range of frozen foods rather than
fresh foods. As a result of Brexit, the company is facing serious losses. The product is made in
the UK, so I short-circuited the product. Distributors are also obsessed with this situation where
short-lived products stay at the border after Brexit. The organization has cancelled the order and
the goods have been returned to the store after paying customs fees, VAT and customs duties
(Zheng, Ardolino, Bacchetti and Perona, 2021).
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Situation analysis of Brexit
The organization has stopped shipping hundreds of products to European Union
countries. The company has changed the delivery of its products in the Czech Republic for
Brexit. The company has expanded the range of frozen foods rather than fresh foods. The British
government has also decided to postpone control of goods imported from the European Union.
This helps companies make changes to their supply chain.
Effects of Covid pandemic on business
The outbreak of Covid's pandemic has had a negative impact on businesses around the
world. Marks & Spencer witnessed a huge loss during the blockade of the country. Marks &
Spencer suffered the first loss after clothing sales fell unfavourably during the first COVID-19
blockade. This is because all domestic and overseas stores are closed. The company reported a
pre-tax loss of £ 87.6 million in the retail sector. The company's apparel sales fell 60% during the
blockade. The biggest impact of this COVID-19 pandemic is affecting the company's workforce.
The company has reduced its workforce through a pandemic. The company employs
approximately 78,000 people in the United Kingdom. The company is focused on reforming
itself after being affected by this. An official at one company said the crisis was changing its
business strategy, allowing the company to accelerate its turnaround plan. The pandemic has
expired a variety of products in stores with short shelf life. The outbreak of this COVID-19
pandemic is affecting almost every business area of the company. In fact, the company is
reducing salaries for various employees by a certain amount (Zarina, Shahram and Umida,
2020).
Situation analysis of COVID pandemic
The organization generally pursue various strategies to remain competitive in the market
during the blockade. The company has begun to focus on online sales media through its website.
The company offered a variety of deals and discounts when buying clothes online. Even during
the pandemic, the company continued to focus on fast and secure delivery of products to its
customers. The company has introduced various technological advances to improve profitability
through its website and online payments.
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CONCLUSION
From the above discussion, it is determined that how the external elements can
specifically make influence the businesses with aid of PESTEL analysis. In addition to this, it
can also involve the leadership styles as well as can corporate the social responsibilities within
the reference of an organization. Furthermore, it can illustrate the significant impacts of Brexit
and outbreak of COVID-19 over the organization as well as how they can reduce such situations
as well.
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REFERENCES
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Matumba, L. and et. al., 2021. Five keys to prevention and control of mycotoxins in grains: A
proposal. Global Food Security, 30, p.100562.
Parida, V., Sjödin, D. and Reim, W., 2019. Reviewing literature on digitalization, business
model innovation, and sustainable industry: Past achievements and future
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Pieroni, M.P., McAloone, T.C. and Pigosso, D.C., 2019. Business model innovation for circular
economy and sustainability: A review of approaches. Journal of cleaner
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Podsakoff, P.M. and Podsakoff, N.P., 2019. Experimental designs in management and leadership
research: Strengths, limitations, and recommendations for improving publishability. The
Leadership Quarterly, 30(1), pp.11-33.
Prakash, S., 2021. Impact of Power Loom Industry During Covid-19 Pandemic Period Major
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(TURCOMAT), 12(10), pp.2029-2035.
Ringo, E.J. and et. al., 2022. Horticulture scoping study for Kenya: sustainable and responsible
sourcing of fruits and vegetables from Kenya. Match Maker Associates.
Şahin, F., Karadağ, H. and Tuncer, B., 2019. Big five personality traits, entrepreneurial self-
efficacy and entrepreneurial intention: A configurational approach. International
Journal of Entrepreneurial Behavior & Research.
Schuerger, A.C. and et. al., 2022. Vegetable Health Challenges in Extraterrestrial Production.
In Handbook of Vegetable and Herb Diseases (pp. 1-49). Cham: Springer International
Publishing.
Zarina, R., Shahram, A. and Umida, K., 2020. Using games to teach management in higher
education institute. Asian Journal of Multidimensional Research (AJMR), 9(3), pp.49-
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Zheng, T. and et. al., 2021. The applications of Industry 4.0 technologies in manufacturing
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