Impact of Environmental Factors on M&S: PESTLE Analysis, Leadership Styles, CSR and Brexit & Covid-19 Effects

CONTEXT OF BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
1. PESTLE Analysis of Mark and Spenser..................................................................................3
2. Presenting different leadership styles and recommending suitable leadership styles to M&S4
3. Critical analysis of Corporate Social Responsibilities of Mark and Spenser organization.....6
4. Effect of Brexit and Covid – 19 on M&S and how it has addressed the situation..................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
Books and Journals....................................................................................................................12

INTRODUCTION
The present report is based on M&S which is known as a multinational retailer of UK
headquartered in London, England, UK. It is specialized in selling home products, clothing
products, beauty and food products. Like several other businesses operating in UK, M&S is one
of those businesses who gets severely affected because of the implementation of Brexit and the
unplanned emergence of Covid – 19. In this report, the discussion will be done with regards to
the impact of environmental factors on M&S with the help of PESTLE model. Also, the most
suitable leadership style would be recommended to M&S through which it could achieve its
business objectives. Furthermore, the CSR initiative that M&S have implemented within its
processes would be identified and critically analyzed. At last, the effect of Brexit and Covid – 19
on the operations of M&S will be discussed along with highlighting how M&S has addressed
these situations.
MAIN BODY
1. PESTLE Analysis of Mark and Spenser
In order to analyse the impact of external environment factor over the retail sector as well
as the chosen M&S organization, the Pestle model is used. The Pestle analysis of M&S
organization is as follows:
Political: This is the first factor which define the impact of political stability of the country
over the performance of retail industry (Monte, 2021). The political instability of UK and Brexit
has put negative impact over the retail sector and M&S company. The retailers unable to move
its products freely all over the EU market and they required to pay tariff which has increased
their cost of sales.
Economical: The economic condition of country in term of inflation, interest and
employment rate is also a factor affecting retail industry. During and after Covid-19, consumers
has change its pattern of spending to necessity products from luxury products. This factor creates
threat for the retailers that provide goods at high price. However, this is an opportunity for M&S
retailer because the company provide high value goods at reasonable price which customer can
easily afford.

Socio-culture: The change in the taste and preference of consumer is the factor that affect
the overall business operations. After the launching of credit cards in the market, the sales of the
retail sector have increased by more than 10% (Pham and Nguyen, 2021). M&S has taken
advantage of this trend and allow its customer to new clothing products on credit card payment
facility to gain high market share.
Technological: The introduction of online shopping, self-checkout etc. in the technological
world has changed the overall market condition of UK retailers. This is one of the crucial
technological factor that affect the overall performance of retailer and work as both opportunity
and threat for company based on their capabilities. For example, M&S retailer has grasp this
opportunity to take competitive advantage and for this M&S has started online sales as well
along with offline sales from stores.
Legal: The legal factor which are affecting UK retailer such as M&S are the legislation,
rule and regulation of country. It means the legislation changes over the period of time and with
change in regulations in every country it became difficult for the retailer to comply with each
country changing legislation and rules without any mistake and difficulty. Thus, it can be said
that the changing legal and regulation of country create threat for M&S as the retailer have
operation in more than 100 countries (Baliyan, 2021).
Environmental: This is the last factor of Pestle analysis which also put impact on the
performance of retail sector. The M&S retailer of UK basically uses fair trade practice which is
one of the most sustainable business practices not even used by larger competitors of company.
Not only that, the retailer in order to maintain its image of luxury brand in the UK as well as
international level, they use recyclable packaging. This is also beneficial for reducing carbon
emission. However, becoming more sustainable by M&S is not unique thing because UK
retailers are pledge to do the same.
2. Presenting different leadership styles and recommending suitable leadership styles to M&S
There are basically four main types of leadership styles which is available to the
management of Mark and Spenser which they can adopt in order to achieve its business
objectives. The critical evaluation of four types of leadership styles are as follows: