PESTEL & SWOT Analysis of Marks & Spencer : Report
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Added on 2020-01-23
PESTEL & SWOT Analysis of Marks & Spencer : Report
Added on 2020-01-23
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TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................3P1,P2)...........................................................................................................................................3Enclosed in ppt.............................................................................................................................3P3)................................................................................................................................................3TASK 2............................................................................................................................................5P4)................................................................................................................................................5P5)................................................................................................................................................7P6)................................................................................................................................................8CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................102
INTRODUCTIONBusiness is a form of trade that involves critical functioning and performance ofemployees. The factors that constitute the business is the business environment. Thisenvironment also constitutes of micro and macro environment that has certain impacts on thebusiness. Any business strategy is planned according to the analysis made on these factors.Marks & Spencer is a multinational brand for clothing while it also has dealings in food andhome essentials. It was founded in 1884 by Sir Michael Marks and Thomas Spencer. PESTEL,SWOT analysis are tools that are used to analyse the micro and macro environmental factorsimpacting any business. For a successful business strategy and acquisition the company mustfocus on use of such tools with proper knowledge of the type of organisation as well as theelements constituting it.TASK 1P1,P2)Enclosed in ppt.P3)Marks and Spencer (M&S) is a multinational clothe and fashion retailer based in UK. Italso has a broad variety of home products and luxury food products. It was establishes in 1884in London, UK. The company has 852 stores and counting all over the globe. Being such a hugemultinational organisation it has to strategically define all the functions and the responsibilitiesin the organisation to achieve its objective of obtaining maximum market share in UK andworldwide. M&S works on five key principles regarding its products and these are Quality,value, service, innovation and trust. These principles gives the company a sustainablecompetitive advantage (Strategic Report. 2014)Organisational structure in M&S is a flat organisational structure also known ashorizontal structure of organisation. The reason behind choosing a flat organisational structurerelates to the objectives of the company which mainly focus on effective operational department.The company also believes in formation of trust and confidence in its employee (De Clercq,Dimov and Thongpapanl, 2013). This structure also results in diminishing higher layers andbridging the gap between the highest official and the lower level employees. 3
The below given chart depicts the organisation function of M&S:Flat organisation structure depicts that there are less layers between an employee and the directoror chairperson of the company. M&S opted for this structure as they wanted fair jurisdictionwithin the organisation. On the contrary, the supervisors can perfectly observe the processing ofunfair means or malpractices. Functions in M&S include manufacturing, sales, marketing and logistics. These aresupported by ground staff that are divided according to their skills and knowledge into theirrespective departments. A group of ground staff is leaded by an executive. These executivesrelate the functioning with the CEO( Chief Executive Officer) of the company. If the staff is ill-treated or misguided they can directly inform the officer in power or the CEO without muchhesitation. Although this structure gives freedom to the ground level staff for communicatingwith the higher officials but there are certain drawbacks also. The employees are subjected toless scope of promotion (Lorange, 2013). Sometimes the work pressure may increase which cancreate conflicting situations. Due to less promotion opportunities employees tend to leave theircompany. This may incur losses to M&S.For effective functioning and directing the company towards meeting the objectives ofproviding high quality products to the consumer M&S must not have a boss but a leader. Leaderdefines roles and responsibilities to the employees only after proper evaluation and analysis ofweakness and strengths (Gupta and Kumar, 2013). Good operational staff that is skilled andeducated labourers and employees will manufacture good quality product. This product will be4
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