Pestle and Swot analysis of Marks and Spencers, Impact of Covid-19 and Brexit, Leadership style and Corporate Social Responsibility

This report provides a detailed analysis of Marks and Spencers including Pestle and Swot analysis, impact of Covid-19 and Brexit, leadership style and corporate social responsibility. It discusses the various factors affecting the business and suggests a democratic leadership style for the company. The report also highlights the importance of corporate social responsibility and the need for a sustainable approach to business.

Project

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. Pestle and Swot analysis of Marks and Spencers....................................................................3
2. Impact of Covid-19 and Brexit On Marks and Spencer with TWOS Analysis.......................6
3. Leadership style for Marks and Spencer.................................................................................8
Justification..................................................................................................................................9
4. Corporate Social Responsibility............................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
A business is a small or big entity which involves in buying and selling of goods and
services. It can be profit motive or non profit organisation (Sharma,2019). For every business to
work smoothly and competatively they uses various leadership styles. Leadership is managing
and leading the team in attaining group individuals and group goals of organisation as well.
Leadership style is the style of a leader or a manager to lead his team and groups. Marks and
Spencer is a multinational retail company with its branches worldwide providing its products and
services through online platforms. This report is all about various leadership styles used by a
business a research on corporate social responsibility maintain by a business. Furthermore,
SWOT and PESTEL analysis of marks and Spencer to find its strength and weakness. Lastly due
to covid-19 and Brexit how they influenced the business activities and analysis of strengths and
weaknesses of a business. Environmental factors impacting opportunities and threats.
MAIN BODY
1. Pestle and Swot analysis of Marks and Spencers
 Political Factors – Brexit has brought many changes in the policies for uk companies
which might make it difficult to source products at the previous fair prices. It can also
hinder their imports and exports. The cost of production is also affected due to the
political and taxation changes after Brexit.
 Economical Factors -The customers are now shifting to other retail and small competitors
who provide same quality for considerably lower prices which is a great threat to the
company as it is unable to fight with the risk and increase in currency price due to Brexit
has furthermore affected the cost of the company's products which in turn leads to an
increase in customer's diversion to budget outlets.
 Social Factors – Marks and Spencers is not just a youth brand as it has been in the
industry for a very long time thus making it a household name for all the generations but
currently in the age of fast fashion, it has been seen as a non-trendy brand and thus
preferred less by the young generation. But the company has been able to fight this threat
to some extent with their dominance on the ready meals industry which is an upcoming

trend in the market. The company also takes initiatives by cutting down the internal costs
and helping surround communities.
 Technological Factors – The company's e-commerce and online presence shows its
technological advancement where all or most of their products(except for the food items
currently)are available online which helps to save the customer's time and make the
products available at their doorstep. They have also introduced self-checkout which not
only reduces the money spent on cashiers but also gives customers a faster checkout
method. The company is also planning to further introduce and enhance artificial
intelligence at their checkouts in the coming days.
 Legal Factors – Brexit has some significant effect on the legal policies as well. Their
recent dispute with Frascati landlord and many other old disputes made a huge impact on
the brand's status and reputation.
 Environmental Factors – M&s has pledged to be a more sustainable retailer so as to
maintain its image of a luxury brand. It tries to carry out its operations like acquisition of
food, home products, clothing and other products in a more environmental friendly way
by trying to reduce deforestation and carbon emission generated from manufacturing
process. They also source and get their fresh milk from dairy farms assured by RSPCA.
SWOT Analysis
Strengths Global Brand: Marks and Spencers is a global brand with around 1463 stores out of
which 1035 stores are in UK itself. It also provides franchisees and is available online
too. Recognition: The company is well-known among all the generations and is globally
recognized as it is in the industry for around 137 years and operates across the globe. Diversification: They have diversity as they hire people of all gender, religion and nation
and has around 80000 staff worldwide. The brand provides vast and diversified collection
as it has its private labels along with certain premium brands and high-end designer
products that attract customers. They have around 400 suppliers from 800 locations in 44
countries.

Weaknesses Declining Sales:The sales of the company are declining because of its supply chain being
poor with non-availability of products. The company is unable to meet the required
demand for food clothing products frequently. Perception of Public: Generally public have the perception that company does not offer
products relating to young and teenager clothing (SWOT Analysis of Marks and Spencer,
2022). The majority of company's customers are elderly people this creates a perception
in the buyers of the market that company offer products only for older generation. High costs due to manual processes: company majorly depends on manual work in its
operations. High intensive manual processes consumes lot of time and incurs high cost.
Lot of time and cost can be saved by company if it decides to adopt the latest technology.
Opportunities Global Expansion: Marks and Spencer is a multinational brand, company has its presence
in varied nations across the globe. The company has opportunity to establish more
branches in these nations to increase sales volume and profits. Online Store: The company has great opportunity to improve its online store to adapt to
the needs of evolving market. Market Segmentation: Company can use the process of market segmentation of segregate
its customers based on their similar demands. The company has been following the
strategy of market segmentation to offer products based on the needs of its consumers.
This will help in reducing management and maintenance cost.
Threats High Competition: The company face tough competition both from retail markets in
United Kingdom and all across the world. The company has the threat of being wiped out
from the market if it does not change its strategies in accordance to the changes in the
market. Government Policies: Changes in policies relating to retail stores by the governments of
the nations company deals in is a threat for the company.

2. Impact of Covid-19 and Brexit On Marks and Spencer with TWOS Analysis
Covid-19 Impact
Clothing sales of Marks and Spencer crashed for the first time during the first coronavirus
lock down. Covid-19 pandemic attacked the company's clothing sales. Covid-19 deeply affected
the Marks and Spencer. In the early weeks of the pandemic long queues and vacant shelves seen
in the supermarkets. Panic buying among customers and hoardings created the situation of crisis
in the retail sector (DELEV and NAJDOVA, 2021). Food retail stores of the company saw great
increase in demand immediately before and during lock down. Sales boosted in the period
initially. The increase in demand on a sudden phase caused shocks to the supply chains. The food
retailing sector seen major rise in demand on the other hand non-food retailing businesses were
categorized under non-essential sectors and remained closed physically. Online store was open,
company struggled to operate online sales and home delivery process due to initial concerns
about safe operations. There was material shift in trade. Pandemic brought about unforgettable
changes in Marks and Spencer and this accelerated the turnaround plan of the company.
Brexit Impact
The company has been battling from increased costs and delays from months. The
company's store were filled with Northampton made products from the middle England and
shipped every day across the English channel (Kovalenko, 2018). In the 2021-year beginning,
Britain began its new trading relations with European Union resulting in emptied store's shelves
in Paris because of new customs checks and tariffs turned down the supply chain of the retailers.
The complexities in the supply chain in addition, to United Kingdom's exit from European Union
made it impossible for the company to serve its customers expecting high standards in quality.
Company's store in Paris close to Bastille, the situation of bare availability of refrigeration units
free from Stilton cheese, British grown broccoli or British made sandwiches appealing to French
became common. Some stores of the company added French food to the shelves although the
delays related to imports did not ease sufficiently to alleviate the shortages. The consumer
products and retail sectors are facing problems related to margins suffering between falling
demands and rising costs. Brexit disrupted the supply of goods to the stores. Free movement of
companies workers got interrupt. Marks and Spencer need to comply to both United Kingdom
and European Union regulations. This increases complexity and costs for the organization.

Contracts need to be updates in order to prevent potential risks as a result of Brexit. The
macroeconomic environment of the company got weak.
TWOS Analysis
INTERNAL FACTORS
EXTERNAL
FACTORS
STRENGTHS (S) WEAKNESSES (W)
OPPORTUNITIES
(O)
Diversification is the
strength of the
company can be linked
with the company's
opportunity for market
segmentation.
Diversification in the
customers of the
company is the
opportunity for the
company for market
segmentation. Market
can be segmented
based of the diversity
of the customers.
The weakness of
perception of public
that company only
deals in clothing for
older people can be
linked with the
opportunity to build a
strong online store for
receiving online orders
(The TOWS Matrix,
2022). Company can
promote its teenager
and young generation
clothing range in
online media through
its online store.
THREATS (T) The company's
strength of global
presence can be linked
with its threat of high
competition.
Competition faced by
company can further
be raised if more
Company's weakness
of declining sales is
linked with the threat
of change in
government policies.
Government policies
may change and result
in increasing cost of

multinational
companies enter the
global market.
production, declining
sales.
3. Leadership style for Marks and Spencer
Leadership style is the type of leadership a manager or a leader will follow for efficiency in
work. This style is used by a leader to attain group and individual goals (Mansaray, 2019). The
types of leadership are:
 Autocratic leadership: This type of leadership has authority of decision in one hand and
followers only have to follow the leader (Fox, 2020). Follower cannot give ideas and
advices to the leader.
 Democratic leadership: In this type of leadership the followers can take part in decision
making. It follows down to top approach so that each member can participate in the
decision making (Yunarsih, 2020).
 Transactional leadership: In this leadership style the leader gives reward or promote the
subordinates for good performances (Caillier,2020). Punishments are given if the work is
done wrong or not on time.
 Transformational leadership: Leader with their sharp understanding for looking into
the future. Observing every obstacle that creating difficulties in achieving the future
goals. And planning the strategies to remove the obstacles.
From the above four leadership style Marks and Spencer must follow the democratic
leadership style. As in this leadership all the members in the organisation can take part in all
kind of decision making. Marks and Spencer is dealing with its business worldwide so only the
top management authority cannot take the decision itself. It needs to involve its all employees at
every level in making any kind of decision. Due to Covid the businesses are running huge losses.
Due to covid and Brexit all the external environment affecting the business very badly and all the
importing and exporting activities are imposed with high taxes.

Justification
This type of leadership style is suitable to every kind of businesses whether it is profit or
non profit making organisation. Marks and Spencers should follow this style by arranging
meetings for group discussion about the companies goals. All the opinions are being brought
forward in front of everyone about individuals and the company overall goals. Only the top level
executives cannot take all the decision itself due to lower levels know better about the business
strengths and weaknesses. In meetings all kind of errors and mistakes are being discussed and
after being agreed by others the decision are taken.
Mark and Spencer’s need to use this leadership style to improve efficiency in work and
building team spirit in each and everyone. Because due to covid and brexit the companies were
running in huge losses and turnover. Due to unemployment and fear of the job employees are
doing work with a lot of pressure. No rights of emplyoees to take part in the decision making. If
the Marks and spencers will follow the democratic leadership style the employees will be more
statisfied and work according to needs of the business.
By following this type of leadership Marks and Spencer can maintain their corporate
social responsibility in the market with smooth work flow. Although the decision will still
remain in the hands of the top management for guidance and better control. With this type of
leadership the business can achieve best results with great productivity in the work. It reduces the
burden of top management of deciding and formulating rules and procedures. Marks and
Spencer’s should adopt this style because it dealing in a lot of products and services worldwide.
With huge number of customers the corporate social responsibility increases with help of
democratic style the employee’s moral will boost. It will generate more creative environment in
which every plans or procedure for any kind of charity and social activity to maintain its
corporate social responsibility will be discussed in front of everyone ( Geissdoerfer, 2020).
Marks and Spencer’s with democratic style can provide job satisfaction to the subordinates.
With the help of this style it creates honesty among the employees and increase team knowledge.
This company has huge number of employees in each branch located at different places. Marks
and Spencer’s should use leadership styles at every branch for new ideas or creative techniques

of promoting and selling the products. In the present world the customers taste and preferences
are ever changing and there is no fix demand in the market. To meet their needs company should
involve every member of each department to give ideas for creating more advanced products.
This can only be done by adopting democratic leadership style for group decision making. The
only way of achieving group as well as personal goals smoothly by following this leadership
style.
4. Corporate Social Responsibility Charity and community funding Donations: Marks and Spencer's local stores make
donations to charitable organizations. The budget that each store has is small and limited.
The focus of donations is to provide support to the issues of importance to local
community. Clothing and equipment: Newlife charity recieves donations in the forms of returned
clothing and surplus by the business (Latapí Agudelo, Jóhannsdóttir and Davídsdóttir,
2019). Medical research, nurse support and awareness campaigns are funded by Newlife.
In addition, equipments of importance to disabled and terminally ill children are also
funded by the organization's donations. The company donates clothing samples to Shelter
which is one of the charity partner supporting homeless. Food: The date-expired food of Marks and Spencer are aimed to be donated to the
charitable organizations. Fare Share being the company's most preferred choice to receive
donation. Fare Share is a community based food network by which surplus food from the
industry is transported to vulnerable section of the community. Christmas Cards: Through Christmas cards company selects charities from existing
corporate partnerships every year. Fundraising: Corporate campaign from the charity partners of the company are allowed
to use store sales floors for their fundraising programmes. Major Disasters: After assessing the real needs and requests from employees and
customers Marks and Spencer donates for helping people in case of occurrence of major
disaster anywhere in the world, provided that the company have strong links in the
affected region through its stores, offices or suppliers.

 Climate Change: Company is a part of five-year Eco plan with an aim to make its
operations in United Kingdom and Republic of Ireland carbon neutral. In addition,
company also aims to help its consumers and suppliers in reducing their carbon footprint
too. 25% reduction in energy use and powering the stores utilizing green electricity is one
of the plan. Waste management: Being a part of the Eco plan company is committed towards
elimination to send waste to landfill. Company plans to: produce green energy through
anaerobic digestion or compost. Reduction by 25% in non glass packaging and usage of
easy to recycle or compost packaging materials (SUSTAINABILITY, 2022). 33% cut off
in carrier bag usage and creating them using recycled plastic. Closed loop recycling trial
a technique of making new packages with the usage of old packaging. Disposal of
clothing by the customers without sending it to landfills. Sustainable Raw Material: Company ensures that all its key raw materials are obtained
through sources that are sustainable. The company aims to use recycled wood that comes
from a sustainable source (Islam and et.al., 2021). Turkey, geese and fresh pork free-
range of products. Selling of fish that comes from sustainability certified sources. Making
the sale of organic food products three times. Health:Hiring 1500 advisers in the stores for advising to eat healthy. Increasing eat well
range of products by 20%. Leading in the way to reduce salts and fats. Within 12 months
replace the use of artificial colours by using natural colours in sweets and cakes range for
kids. People: Continuing with the growth prospect of the business it is essential to strengthen
the team at each level. The company in order to fascinate and hold the people in the
organization demonstrates how it is a good employer who is committed in making its
people feel being valued and provide them training and career enhancing opportunities on
regular basis. Recruitment and Retention: The company has lower employee turn over rates in the
entire retail sector of UK. Marks and Spencer in UK employs 71000 people and & 75000
worldwide.

 Employee Health, safety and well-being: The company is committed in helping its people
in being informed about health choices at work. Marks and Spencer is working hard to
prevent its people from incidents related to fire, health and safety.
CONCLUSION
From the above report, it is concluded that the Marks and Spencer’s should adopt
democratic leadership style. Because it provides each department from top to bottom a authority
and responsibility to take actions. Due to Covid-19 and Brexit the employees as well as the
company morale is become low. All the export and import activities are become difficult.
Applying democratic leadership in the company the employees self confidence will increase and
they feel satisfied with their jobs. The company has to maintain their corporate social
responsibility to have good image in the market. Company itself cannot take all the decision
regarding social responsibility, so it needs to involve all the subordinates and managers for their
viewpoints. In the end the ultimate controlling power and decision making authority of Marks
and Spencer’s will remain in the hands of top management.

REFERENCES
Books and Journals
DELEV, J. and NAJDOVA, M., 2021. LEGAL ASPECTS OF THE MANNERS OF HOLDING
SHAREHOLDERS’ASSEMBLIES IN THE CONDITIONS OF COVID 19
PANDEMIC. Balkan Social Science Review. 18. pp.49-67.
Islam, T. and et.al., 2021. The impact of corporate social responsibility on customer loyalty: The
mediating role of corporate reputation, customer satisfaction, and trust. Sustainable
Production and Consumption. 25. pp.123-135.
Kovalenko, I., 2018. Impact of brexit on the legal system in the UK (particularly in relation to
business regulations). Evropsky politicky a pravni diskurz, (5, Iss. 3), pp.25-32.
Latapí Agudelo, M. A., Jóhannsdóttir, L. and Davídsdóttir, B., 2019. A literature review of the
history and evolution of corporate social responsibility. International Journal of
Corporate Social Responsibility. 4(1). pp.1-23.
Sharma, A., Agrawal, R. and Khandelwal, U., 2019. Developing ethical leadership for business
organizations: A conceptual model of its antecedents and consequences. Leadership &
Organization Development Journal.
Mansaray, H.E., 2019. The role of leadership style in organisational change management: a
literature review. Journal of Human Resource Management, 7(1), pp.18-31.
Fox, C., Davis, P. and Baucus, M., 2020. Corporate social responsibility during unprecedented
crises: The role of authentic leadership and business model flexibility. Management
Decision.
Caillier, J.G., 2020. Testing the influence of autocratic leadership, democratic leadership, and
public service motivation on citizen ratings of an agency head’s performance. Public
Performance & Management Review, 43(4), pp.918-941.
Yunarsih, N and et.al.,2020. Develop leadership style model for nurse in Indonesian
hospital. Systematic Reviews in Pharmacy, 11(8), pp.352-361.
Geissdoerfer, M and et.al.,2020. Circular business models: A review. Journal of Cleaner
Production, 27,p.123741.

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