Impact of External Elements on Marks and Spencer: PESTLE Analysis

Context of Business

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Impact of External elements on Marks and Spencer Using PESTLE analysis............................1
Leadership style for business.......................................................................................................2
Effects of Brexit on the business.................................................................................................6
Situation analysis of Brexit..........................................................................................................7
Effects of Covid crisis on Business.............................................................................................7
Situation analysis of Covid crisis.................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
Business, it is represented to as a organisation or firm which is participated in the
commercial and the industrial activities. This is for gaining the revenue by trading services and
products. In the context of Marks and Spencer, it has build goodness all over the global market.
In UK, it has 959 stores, although its brands are present in different countries. This brand runs
more than 1300 stores in all over the world & and in London UK, it is headquartered. Thomas
Spencer is the owner of Marks and Spencer, he established it in the year of 1884. Marks and
Spencer is a clothing brand but now a days it concentrates in various field like beauty products,
food, furniture and many more like this. This report will going to evaluate about the business and
external elements affecting the business by the assist of PESTLE analysis. It will also describe
the style of leadership in related with the organisation along with corporate social
responsibilities, the analysis and effects of Brexit and Covid-19 crisis on the business of
organisation.
MAIN BODY
Impact of External elements on Marks and Spencer Using PESTLE analysis
PESTLE analysis evaluates the different external elements such as political, economical,
social and technological, (PEST). It effects the organisation with the environmental and legal
elements.
Political factor – This element is associated with the involvement of the government in
economy. This element consists policies like political stability, labour law, tax policy, trade
restrictions, and the environmental law. Marks and Spencer has always made good profit through
free trade. This free trade policy assist and give permission to import foreign products for trade
in stores at very low cost than before because it is imported in other country. Although “ Hard
Brexit” has resulted in number of loss of European supplies (Bătușaru, 2019).
Economical factor - High expansion rate of any specific economy affects the way of Marks ans
Spencer works on the cost of services or products. Rate of interest, inflation rate and foreign
exchange are included in economical factor. As the government has low rate of inflation and
strong finance is maintained, the policies like monetary and fiscal is managed. Marks and
Spencer always follow the which gives quality of services and products. Although sometimes
due to external elements organisation can also face financial crisis.
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