SWOT and PESTLE analysis of Marks and Spencer

Context of Business

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
SWOT and PESTLE analysis of Marks and Spencer.................................................................3
Evaluating changes in PESTEL factors that influence the opportunities and threats of Marks
and Spencer.................................................................................................................................6
Evaluation and recommending leadership styles for Marks and Spencer...................................8
Evaluation corporate social responsibility of Marks and Spencer..............................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term business environment may be defined as an environment that connotes all the
external factors and institution that are not in control of organisation and they directly affect the
different activities of the business(Aryshev and Ivanyuk, 2020). Customers, suppliers, rivals and
many more are comprises in this environment. Along with this the business environment also
comprises of all the strategies and decision which are taken by higher authorities in order to
achieve all the objectives of the business. For this report Marks and Spencer have been taken into
consideration, in order to understand the business context. The Marks and Spencer is a well
known retail brand of UK which was founded in 1884. The headquarters of the company is
situated in London and they have around 959 stores all across the nation. In this report, external
as well as internal environment of the chosen company has been done with the help of
appropriate framework. This report provide information about the change in external factors
which influence the opportunities of the business. Afterwords, this report cover the Daniel
Goleman’s (2000) leadership style in context to the chosen company and CSR responsibilities
which they have to follow.
TASK
SWOT and PESTLE analysis of Marks and Spencer
SWOT analysis:- it is a strategic planning technique which allow the firm to identify its overall
strength and opportunities. This framework also provide in depth information to the company
regarding their strength and weakness(Belás, Kmecová and Čepel, 2020). With the help of this
tool an organisation not only reduces their risk but also identify the different segments in which
they lack in. Along with this, this tool also help in developing strategies which help the company
to stand in competitive market. SWOT analysis in context to the Marks and Spencer has been
discussed below :-
Strengths :-
This comprises of all those factors like strong brand image, potential customers and
many more which make the firm different from their rivals. These attributes not only help the
company in increasing its profit but also help in enjoying the competitive advantage over its
competitors. In context to the Marks and Spencer, the most important strength of the company is

their strong brand image and global presence. This is because of different product range and 138
years of experience in the retail sector. In addition to this, the impressive strategies which are
made by the R&D department of the company help them in increasing their loyal customers
base.
Weaknesses :-
This factor comprises of all those attributes which affect the functioning as well as
performance of the company. The areas in which they are lack in is related to this factor. If the
firm wants to improve their stability in the market or wants to enjoy the competitive advantage
then, it is very important for them to overcome from these weaknesses. Inadequate stock, bad
image of the brand, improper supply chain management system and many more are comprises in
this(Dinh and Hilmarsson, 2020). In context to the Marks and Spencer, the most important
weakness of the company is that they more relay on the manpower. Instead of being capital
intensive they are labour intensive due to which cost of producing the goods has been increases.
Along with this, the non-availability of the goods in their stores is also suffer by the company
because of the poor supply chain management system. Due to this, they are not able to fulfil the
demand of their consumer in proper manner which result in decline in the sales and potential
customers.
Opportunities :-
Opportunities is the most important factor of this framework. This factor included all
those favourable attributes which assist the firm in improving their stability and grow in the
competitive market. By identifying opportunities in the competitive market an organisation can
increase their profit, presence and potential customers. In context to the Marks and Spencer, the
most important opportunity which are available in front of them is that they can improve its
online presence(Dörndorfer, Hopfensperger and Seel, 2019). This help them in competing with
their online rivals like eBay and Amazon. Along with this, company can also focus on the other
market segment which help them in increasing their profitability and potential customers.
Threats :-
This factor included all those unfavourable attributes which not only harm the functions
of the company but also hamper their performance in the market. In relation to Marks and
Spencer, the most important threat which are faced by the company is, availability of the stiff
competition in the retail sector. Along with this the financial issues has are faced by the company