Analysis of External and Internal Factors of Marks & Spencer

Business and Business
Environment

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Analysis of external factors.........................................................................................................4
Analysis of internal factors..........................................................................................................6
Interrelation of company's strengths and weaknesses with external environment......................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business environment refers to the micro and macro environmental factors of the
business that impacts the operations of the business. The internal and external factors can be
analysed using SWOT and PESTLE analysis tools. Marks & Spencer is a British multinational
retailer company headquartered in London, England. The products of the company are clothing,
food & beverages, home appliances and beauty products. The project is about the external and
internal factors using pestle and swot analysis that are impacting the business of Marks &
Spencer. It also highlights the interrelation of strengths and weaknesses of the company with
external factors.
MAIN BODY
Analysis of external factors
The analysis of external factors of Marks & Spencer with the help of PESTLE analysis:
Political factors
Marks & Spencer is a multinational company operating worldwide with variety of
products. The company is dealing in consuming goods so it is necessary for the company to
comply with the guidelines of food administration as the products are related with the health of
its consumers. Due to diverse rules and regulations of every country, company faces difficulty in
complying with all the rules and regulations of the country in which it is operating (Phan, 2021).
The rapid change in Government regulations make it difficult as it has to closely follow all the
government regulations. Company works with the Government and interact with them to know
the changes in the regulations so that it can ensure the compliance of all the rules and
regulations.
Economic factors
Economic factors include inflation rate, interest rate, fiscal and monetary policies, etc.
Rise in the inflation rate of a country impacts the cost of production and the price of product. The
company has an objective of providing high quality products to its customers. Financial crisis in
a country can decrease the demand for high quality products due to high price and the low
disposal income in the hands of its customers. The discounts provided by the competitors of the
company has attracted numerous customers to buy similar products at lower price than the price
charged by Marks & Spencer. Difference in labour costs and productivity cost also impact the