SWOT and PESTLE Analysis of Marks and Spencer

This report discusses the SWOT and PESTLE analysis of Marks and Spencer, along with the evaluation of the impact of change in factors on opportunities and threats, comparison of different styles of leadership, recommendation on suitable leadership style, and corporate social responsibilities. It also includes a reflection report.

CONTEXT OF
BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SWOT and PESTLE of Marks and Spencer...............................................................................3
Evaluate the impact of change in factors on Pestle on opportunities and threats along with the
way Marks and Spencer is using its strength to tackle its threats and how weakness can affect
its opportunities...........................................................................................................................5
Comparison of different styles of leadership.............................................................................6
Recommendation on suitable leadership style ...........................................................................6
Corporate social responsibilities.................................................................................................7
Reflection report..........................................................................................................................8
CONCLUSION ...............................................................................................................................9
References:.....................................................................................................................................10

INTRODUCTION
The business is the activity of making money by manufacturing and selling of the
products. In the society the business has the major role which provides the contribution and
people needs, wants are satisfied. The business helps in improving the quality of the life and
living standard of the person. The business helps in improving economy and increases jobs
opportunity within the society. The business organisation involves the several elements which
impact from numerous perspectives, that how they are structure and helps in meeting goals. The
business defines the economic activities which are carried for the purpose of income generation
and necessary resources are bring for the production and distribution of goods and services. The
business helps in coordination and arrangement all the parts of organisation (Adnan, Hay and
van Staden., 2018). The report is based on the marks and Spencer which is a British
multinational retailer founded in 1884 by Michael marks and Thomas Spencer selling clothing,
home products and food products etc. In the report the covered topics are related to the SWOT
and PESTEL analysis how these are influencing opportunities and threats. The different styles of
leadership are compared and recommendation is provided that helps in growth and overcoming
challenges. Moreover, corporate social responsibility is been provided and reflection on the
report is given.
MAIN BODY
SWOT and PESTLE of Marks and Spencer
SWOT Analysis is an analytical tool through which Marks and Spencer can generate
knowledge about the strengths and opportunities of business through which it can tackle its
weaknesses and threats.
Strengths Weakness
The cash flow of Mark and Spencer is very
strong. This helps it in maintaining its liquidity
and also avails in hand resources through
which it can invest in new projects (Beynon
and et.al., 2021).
Marks and Spencer is not investing much in
new technology which tends to draw it back in
the competition because old techniques
increases their product prices as compared to
competitors.
Opportunities Threats

Marks and Spencer has an opportunity to
restructure its technological structure through
which it can combat with the competition
prevailing in market.
Increasing strength of local sellers pose a big
threat to Marks and Spencer as the they are
earning high profits due to competition. This is
also reducing its market share.
PESTLE Analysis of Marks and Spencer
 Political factor
It examines the impact of government decisions and policies on the working environment
of business. Marks and Spencer works closely with government and provides answers to all the
public queries. They also follows fair trade practices due to which, the company has full support
form the political parties (Crowther and Seifi ., 2018).
 Economic factor
It evaluates the effect of change in economy on the company like fluctuation in taxes or
prices. The appearance of financial crises in UK adversely impacted the sales of Marks and
Spencer, because people were not left with enough money through which they can buy high
quality products.
 Social factor
It checks the influence of customer desire and demand on the demand of its products.
Marks and Spencer provide a high range of products with good quality which has resulted in
increase in its sales as presence of number of choices of customers attracts them towards their
stores (Hajizadeh., 2019).
 Technological factor
It examines the impact of innovation and advancement of technology on the performance
of organisation. Marks and Spencer is focusing on creating new model for operating technology
through which it can exploit new technology in which it is lacking behind.
 Legal factor
It explains the jurisdiction of firm to perform any activity according to the laws and
policies of that country. Marks and Spencer was once has to face some legal consequences as it
was not able to address its employee safety. So, it know conducts training sessions to keep itself
updated about various laws and regulations (Janich., 2017).
 Environmental factor

It includes all the above discussed factors along with other issues related to climate,
health etc. They are working with cotton initiatives to develop practice for preparing cotton
sustainably. They have also prepared a green policy which positively affects the well-being of
communities and planet.
Evaluate the impact of change in factors on Pestle on opportunities and threats along with
the way Marks and Spencer is using its strength to tackle its threats and how
weakness can affect its opportunities.
According to the above analysis, the various factors analysed in Pestle has power through
which it can influence its threats and opportunities. Marks and Spencer follows the fair trade
practices, due to which it has to face lot of competition. It cannot adopt any fraud manner to
outlast the competition which increases its threat of local distributors. The financial crises
prevailing in country can negatively impact its cash holdings which can result in creating
hindrance in obtaining modern technological structure (Jelínek, 2019). But this problem can be
solved by its habit of providing variety to its customers. Availability of various styles and
patterns in products helps it in managing its sales by attracting more customers and maintaining
its liquidity. Working according to the legal policies of government also asks it, not to conduct
any sort of illegal work to tackle the threat of local sellers. At last, involvement in sustainable
activities also helps in encouraging its desire to involve itself in adopting modern technology.
Use of strength in tackling its threat
Marks and Spencer has a strong cash base which helps in its maintaining its liquidity
and also provides opportunity to invest more in projects. Through this strength , it can handle the
pressure of local distributors. It can employ some of its money in advertising its products in
effective manner. It can also provide discounts and offers to its customers to attract more them
towards it (Junior, Oliveira and Yanaze 2019). Through this they can also bring some innovation
in their goods which are not available with the competitors or local sellers. This will also tend to
increase their sales and hence enhancement in profitability.
Effect of weakness on opportunity
Marks and Spencer do not invests much in technology which negatively impacts in
opportunity to grow in competition by adopting modern techniques in its business operations.
The use of new methods of producing goods reduces the cost of production which ultimately

helps in increasings the profits. But the habit of Marks and Spencer of using existing techniques
is creating hindrance in adopting modern technology.
Comparison of different styles of leadership
The leadership style is a leader approach providing direction, implementation of plans,
and people re motivated. The leadership is the ability of influencing, guiding an individual,
group for accomplishing the task. It is an influential power relationship in which leaders power
promotes change in followers. The leadership helps in setting the direction and builds an
inspiring vision for the marks and Spencer. There are different types of leadership styles which
are as follows-
Authoritarian leadership- The leader who adopts this policy dictates policy, procedure and
direct the work done by group. The task is completed under the close supervision. In time-
constrained period it is an efficient strategy and creativity is scarified as input is limited from
team. This is used by the team members of marks and Spencer when they require clear
guidelines. 5The leader himself has all the authority and decision making power (Kurmanalina
and et.al., 2020).
Participative leadership- It is a democratic theory where the subordinates are consulted will
making the decision. The team members are feel motivated and engaged in their contribution.
The team members have the maximum participation in the decision making and motivated to
take initiate in setting plans and policies. It is an effective style for the marks and Spencer as it
allows lower level employees to exercise authority which are required to use wisely for future
position.
Transformational leadership- It is a leadership style creating valuable and positive change in
the followers. It focuses on the transforming others for helping each other by encouraging them
ton look organisation as whole. In this style the leader enhances the motivation, morale and
performance of the followers group in context to marks and Spencer. The person is true leader
which inspires the team members with the shared vision of future. The leader in this style serves
as a role model for vision (Kurmanalina and et.al., 2020).
In accordance to above the suitable leadership style for marks and Spencer is
participative as it helps in increasing the employee motivation and job satisfaction which
encourages the employee creativity and leads to strong team creation. The employee achieves
high level of productivity as the leader concerns with the employees in the decision making.

Recommendation on suitable leadership style
The leadership style defines the implementation of plan and motivating people by
rendering them direction. The leadership style exbibits in the every field of business
environment. The great leaders inspire the political movements and social change and others are
motivated to become more innovative and for better performing. In the context of marks and
Spencer the participative leadership style is recommended which is also known as democratic
leadership style which is most effective (Marić., 2020). It helps the employees in their growth
and encourages them to over come with the business environment challenges because the leader
provides the guidance to group members and allows input from other group members. In this
style there is the participation of the members in the decision making process which makes them
feel more motivated and creative. The followers feels as they are important part of team which
helps in fostering the commitment of goals of the group by democratic leaders in marks and
Spencer. The decision in the participative style are based on feedback. The morale of the team
member increases due to having the active role for the company success and more they are
motivated regarding their work (Matten and Moon., 2020). The collaboration is promoted as
employees are provided flexibility for working together to reach plans, goals which helps in
growth. The employee retention is improved by fostering an environment which make people
feel genuinely valued and development opportunity is rendered.
Corporate social responsibilities
It defines to the self-regulating model which helps the company in socially accountable-
to itself, stakeholders and public. The company engagement in Corporate social responsibilities
means the company is operating in the way which enhance the society and environment. It is
broad concept which helps society while boosting their brands. The CSR activities helps in
building strong bond between employees and corporations and makes feel more connected to the
employees and employers. It is a management concept integrating the social and environmental
concerns in the business operations and interactions with the stakeholders in the context to marks
and Spencer (Rocha and Caldeira-Pires., 2019). The corporate social responsibility in context to
marks and Spencer has taken responsibilities to customers, employees, partners, suppliers. The
marks and Spencer makes the donations in the charitable organisation which has the small
limited budget and focusing towards support on the issues that are important in the local
community. The marks and Spencer allows fundraising to take place in their store sales floors

when it is a part of corporate campaign. The properly implementation of CSR bring a variety of
competitive advantage such as enhanced access to capital and markets, increases in sales and
profits, operational cost savings, improvement in productivity and quality. The marks and
Spencer focuses on the environment for reducing the carbon footprint which is considered good
for both company and society. The marks and Spencer can practice in social responsibility by
donating money, products or services for the social causes and non-profits. The company can
demonstrates CSR by showing treating employees fairly and ethically as it is operated in
international locations with labour laws (Singh And et.al., 2018). The objective of the corporate
social responsibility is to give back to community by taking part in philanthropic causes and
providing social value. The marks and Spencer participates in the corporate social responsibility
by donating returned clothing and business surplus to the charity Newlife, donating in shelter and
supporting the homeless. In accordance to Plan-A, 'ECO PLAN' it objective is to make
operations in UK by r3educing the emission. The plan was reducing energy use by 25% and
power stores with green electricity. Launching information campaigns for customers (van
Steenbergen, Ramos and Sousa., 2021).
Reflection report
From the above report I came to know that the there are various internal and external
factors which impacts the functioning of Marks and Spencer. I came to know the strength and
opportunity available for the company through which it can implement its tackle its threats and
weakness. I also came to know that the firm never works in isolation . There are various external
factors which impacts the growth of a corporation. Our choice of products also influence the
sales of their goods. I realized that co-ordination with government also helps in taking the firm to
the path of success. It also helps in gaining knowledge about the influence of technology on the
profitability of firm, which I applies on Marks and Spencer to analyse its hold on modern
technology. It also learned about the way companies can influence the environment by applying
eco-friendly or sustainable practices in the firm. Also, from the above report I gained a lot of
knowledge regarding the leadership styles that company uses to achieve the organisational goals
and objectives. The leadership styles helped me in knowing how the employees are motivated in
the organisation and have their participation. In the report I got to study about the various
leadership styles such as autocratic in which the power and authority is in the hand of one leader
where in democratic the power and authority in given to employees for the decision making and

in last the transformation where the leader motivates to make the employees creative and
valuable. In the context to the report I recommended the participative leadership style to the
marks and Spencer which is suitable as there is the active involvement of employees boosting the
employee morale and encouraging for the better performing. Moreover in writing the report, I
experienced about the corporate social responsibilities having the contribution in the society
welfare. The marks and Spencer has involve in various corporate social responsibility practices
by providing donation to the charitable organisation and fundraising for the homeless people.
The practice of CSR helps in enhancement of society and environment and improves the
perception of the company brand. The company creates target audience to have the successful
brand and customers retention which helped me knowing that it builds good reputation, ears trust
and loyalty.
CONCLUSION
It can be concluded from the above report that various environment analytical tool like
Swot and Pestle helps in determining the positives and negatives of firm. Through this, they can
take steps to improve the performance of business. Through this, then can also know the ways a
firm can use it strength and various environmental opportunities to take a path of success. There
are various styles of leadership which impacts the functioning of the whole business. The
participative style followed by Marks and Spencer helps in it making the environment friendly
for the employees. This also helps in bringing innovation in the firm as the view points of new
generation is given importance in it. The firm gives special attention to the corporate social
responsibility by doing multiple activities like donating clothes, decreasing its carbon footprint
etc.

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