SWOT and PESTEL analysis of Marks and Spencer

CONTEXT
OF BUSINESS

Table of Contents
INTRODUCTION.........................................................................................................................3
TASK..............................................................................................................................................3
SWOT and PESTEL analysis of Marks and Spencer..................................................................3
Evaluation....................................................................................................................................6
Compare and contrast between different styles of leadership and outline of suitable leadership
style..............................................................................................................................................7
Recommend suitable leadership style and how it can help in overcoming challenges with
justification..................................................................................................................................8
Critical comment on CSR used by the company.........................................................................9
Reflection report..........................................................................................................................9
CONCLUSION............................................................................................................................10
REFERENCES............................................................................................................................11

INTRODUCTION
Business strategy supports the company in effective planning, analyzing strengths and
weakness, enhancing efficiency of business and gaining competitive advantage (What is business
strategy, 2021). Business strategy can is further classified into three levels which are corporate,
business unit and functional level. Marks and Spencer is a public limited retail company which
was founded in 1884 in Leeds by Michael Marks and Thomas Spencer. M&S offers variety of
products such as clothing, home products and food products through their stores across countries.
The report will define SWOT and PESTEL analysis of the company and evaluation of factors
which be helpful in gaining insight of the business environment. The study will outline different
leadership styles which will be helpful for the company to overcoming challenges which will be
faced by the company. The project will critically analyze and comment on the corporate social
responsibility of the company. Lastly the report will be summarized with a reflection report
which will outline the knowledge which has been gained through this report.
TASK
SWOT and PESTEL analysis of Marks and Spencer
SWOT analysis of Marks and Spencer
SWOT analysis is a framework which helps in determining and in maintaining
competitive position of the company within the industry. This framework helps in determining
core strengths, weakness, opportunities and threats which can help in forming new ideas (SWOT
analysis, 2021). A detailed SWOT analysis of Marks and Spencer has been discussed below:
STRENGTHS
 Recognized brand- Marks and
Spencer has strengthened their brand
image in the industry with their
quality products which will be helpful
in meeting customer satisfaction.
 Variety of products- M&S offers
dynamic variety of products which has
WEAKNESS
 High cost due to manual process-
Marks and Spencer relies on manual
operations which has been a weakness
for the company as this involves high
cots and is time consuming operations.
 Decline in sales- M&S has poor
supply chain management which leads

been a strength for the company that
helped them in strengthening their
customer base.
to non-availability of products. Such
practices have created adverse
impacted on the band image of the
company.
OPPORTUNITIES
 Global expansion- As M&S is a
multinational company which is
operating in many countries such as
Russia, India, Brazil, Poland,
Indonesia and UK (SWOT analysis of
M&S, 2020). The company has been
actively engaged in their global
expansion and this can bring various
growth and profitable opportunities
for the company by opening new
branches in ither countries.
 Online store- E-commerce is the new
future of shopping and this can bring
various opportunities for business to
enhance their sales and revenues of
the company.
THREATS
 High competition- Marks and
Spencer face high competition which
has been a threat for the company
(SWOT analysis of Marks and
Spencer, 2020). The main competitors
of the company are UCB, Tommy
Hilfiger, Zara and many more.
PESTEL analysis of Marks and Spencer
PESTEL analysis is a framework which helps in understanding macro (external) forces
such as political, economic, social, technological, environmental and legal factors (Scanning
environment: PEST analysis, 2016). This model helps in monitoring and responding to change in
macro environment which helps in creating competitive advantage. A brief discussion on the
PESTEL analysis in context of Marks and Spencer has been discussed beneath:
Political factors- Some of the political factors such as free trade policies have been a
political benefit for the company. Due to Brexit, Marks and Spencer has faced many losses as