PESTEL Analysis, Leadership Styles, CSR and Impact of Covid 19 and Brexit on Marks and Spencer

This report evaluates external and internal reasoning of the enterprise by administrating PESTEL analysis respectively. The report also provides content about various business style of leadership which elaborate in order to understand the impact on the enterprises. Impact of covid 19 and Brexit over Marks and Spencer

Context of Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Performing PESTEL analysis : -.................................................................................................3
Evaluation and recommending leadership styles for Marks and Spencer...................................5
Evaluation corporate social responsibility of Marks and Spencer.............................................6
Impact of covid 19 and Brexit over Marks and Spencer ............................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The business environment will be considered as surrounding of many factors which have
big impact on enterprise. This consists many decisions which will taken through higher
authority and what they tries to achieve. This is essential for business to monitor the objective
and prepare a target to achieve the objectives. For understanding context of business in proper
manner Marks and Spencer will be taken into consideration(Betti, and Sarens, 2020). This
company is an famous international British retail organization, this was founded by Michael
Marks and Thomas Spencer in year 1884. The enterprise have well known image as a brand in
all over the world. This report evaluates external and internal reasoning of the enterprise by
administrating PESTEL analysis respectively. The report also provides content about various
business style of leadership which elaborate in order to understand the impact on the enterprises.
MAIN BODY
Performing PESTEL analysis : -
PESTLE analysis :- The PESTLE analysis will be consider as a framework or tool which assists
the enterprise to monitor and identify each of the external factor which makes large impact on
various functions of the enterprise. The managers of Marks and Spencer will use the framework
for understanding the impact of external factor to making decision and various functions for the
enterprise. With the assistance of this, in depth knowledge will be given through the enterprise
which aids them in develop better plans and strategies. In circumstances of the Marks and
Spencer the analysis has been mentioned below:-
 Political Factors :- The political factors were consider as the most essential element in
this analysis. In this cause the policies of governance, de-regulation and regulation of the
plan of action for tax, stableness of authorities and many more have been comprised. The
factors impact the functions of the enterprise but they also back off the whole
productiveness(Brown, Liñares-Zegarra, and Wilson, 2018). As per the Marks and
Spencer, unnecessary losses will be incurred through the enterprise because of Brexit,
this make an impact on the cost of sourcing. In addition, the changes make in policies of
tax also made an bad impact on the working of company.

 Economical factor :- The economical factor consists of growth of economics, rate of
employment and unemployment, rate of inflation, interest rate and many other factors
which have large impact on the whole working of the enterprise. The factors were not
controlled through firm. In relation of the Marks and Spencer, the firm's management will
highly impact through the Brexit and COVID 19 pandemic. The management have to be
forced to raise in price of product due to instability of the currency. Because of the
conflict which will arise between customer and company(Capuder, and, et. al., 2020).
 Social Factor :- The social factors includes behaviour and attitude of customer,
demographic, changes in social culture, demographic, etc. which will not only affect
working of an enterprise but this also reduce the efficiency of a company. In accordance
to this company, backlash have to be faced by enterprise from its customers because of
excessive chain of product recall. Furthermore, an enterprise will not be capable in
identify demand and need of their customers and not be able to be active in this
competition market.
 Technological factor :- The technological factor is wholly related to new technique of
manufacturing good and producing services which identifies an effective channel for
distribution which will improvise functioning of business operation. As per Marks and
Spencer, the technology partner which is suitable for this will be identified through the
management of the enterprise which strengthen online presence and also innovate process
of production. This is used for saving cost.
 Legal Factor :- The legal factors consists of laws which are related to health and safety,
legal rights of workers and consumers, equal opportunities, etc. if company's
management do not want any type of legal actions from the authority then have to
maintain and follow all the laws(Contractor, and, et. al., 2020). As per Marks and
Spencer various issues have been faced by the enterprise due to change in trade laws of
Britain after Brexit. The chain of support management of an enterprise will have negative
impact on this. Along with this, management focuses on reduction of production which
results in decreasing its sale.
 Environmental Factors :- The environmental factors will be used as the most essential
factors due to less availability of carbon foot prints, raw materials and targeted pollutions
which were set through the nations authority. In accordance to Marks and Spencer, green

policy which will develop through an enterprise which assists them to expand in
environment friendly product. Because of company's brand image have increased,
customer base will also increases(Agyekum, and, et. al., 2021).
Evaluation and recommending leadership styles for Marks and Spencer.
A leader will be consider as an individual, who have the ability for identification of how
a thing will be improvised and how they can motivate workers for achieving objective which
were set by the enterprise. The company's leaders works in order to convert the vision of
enterprise into reality(Faccini, and Palombo, 2021). For this various type of leadership style
will be used through them for motivate the workers in an enterprise. With the assistance of these
guidance style which will be proved by them in subordinate and assist to develop effectual
working situation. The leadership style of Daniel Goleman has been mentioned below:-
Meaning
This theory of leadership mentions that there are different kind of leadership style which
will make the body of an organization in maintaining effectual practical environment. This is
very useful for a individual to possess quality, for changing the situation of organization by
affectional ability. The six style for leadership of this possibility were mentioned below:-
 Affiliative leadership:- The Affiliative leadership style assists to develop harmonical
working situation in the enterprise. This do not only assist in destruct destructive
ambience in members of team but also aids in creating balance within them. By taking
assistance of this style of leadership the leaders of an enterprise will focus on resolution
of conflict and promotes collaboration in the team.
 Democratic leadership:- In Democratic leadership style the leaders of an organization
will appreciate cooperation of individual in a squad. The workers of a organisation have
to consider leader in the process of decision making for an enterprise(Gogokhia, and
Berulava, 2021). When the leadership of the institution depend on the skillfulness of the
workers, at that time this kind has been utilized by them.
 Commanding leadership: In commanding leadership form the company's leaders give
an limited task to the workers and expect the work should be accomplished in the fixed
time extent without any complaint and questions. This style have been used through the
leaders when there is fewer time to finish the work.

 Pace setting leadership:- In the pace setting kind the company's leaders will pay focus
on high attribute of work and result. The company's leaders evaluate that the workers of
an enterprise will carry out the project with extreme productivity and within granted time
period.
 Authoritative leadership: In the Authoritative leadership form the company's leader will
focusing on energizing team in a positive way. So, the structure objectives will be
achieved in very positive manner. As with the understanding will be promoted through
them for development of good relation with the co-workers.
 Coaching leadership: In the Coaching leadership, the company's leader pay emphasis
for identifying weaknesses and strength of the workers(Gupta, Gupta, and Gupta,
2019). Leader will encourage the workers for developing new skills and knowledge
within them. Further more, they pay focus on how targeted long term goals of an
enterprise have to be achieved and how employee contribute in this.
In accordance to get over the effects of Brexit, high rate of production, decrease in
potential and sales to consumer, the higher authority of Marks and Spencer adopts the leadership
authoritative style. With the aid of leadership style the company's leader will efficaciously
motivate workers of an organization. At the time of pandemic when the individual need
directions and direction this style play an important role. Motivated team will always work with
highest productiveness which increases sale and consumer base.
Evaluation corporate social responsibility of Marks and Spencer.
`To improvise brand image of an enterprise or improves value of stakeholder is identical
essential for enterprise to execute social obligation. Enterprise who is socially accountable will
adopt policies which promotes social well state and reduce pollution. The CSR is self regulating
model of business which were used by an enterprise to fulfil the responsibilities. The various
kinds of responsibilities have been mentioned below:-
 Ethical responsibility: The ethical responsibility is related to workers welfare in the
enterprise. In addition, this promotes ethical practice for supplier. Through completing
the responsibility the management eliminate discrimination on the ground of gender,
race, cast or religion within the workers(Khajeheian, Friedrichsen, and Mödinger,
2018). This also promotes appropriate and fair wages which have been given to workers
so they lives good standard of life. The Marks and Spencer's management have to

centring on develop healthy relation with suppliers and individual. This makes them
always contented as it results in acceleratory of sales.
 Philanthropic responsibility: The philanthropic duty will be accompanying to humanity
and focus on supportive unprivileged employees. To fulfil the responsibility different
donation have to be given through enterprise for charity at international and national
level. In accordance of Marks and Spencer, the management of an enterprise will not
promote charity but they also volunteer them. Various type of food product and funds
have been provided by the firm to different NGOs for providing them support.
 Environmental responsibility: The environmental obligation is attendant in increasing
pollution and scarcity of resources over a time period. This is really crucial for an
enterprise to focusing on environmental law and carbon foot print which were targeted by
them. In relation to Marks and Spencer, the company's direction always focusing on
environmental obligations(Michaud, and, et. al., 2021). This ensure various functions for
the environment of business. Further more, they will also help in many environmental
organisation through giving them charity and funds.
Nowadays companies are facing economic,social and environmental challenges like
globalisation,economic recession, growth of population, natural resources exploitation,inequality
and many more. Marks and Spencer which has taken on a visible role in the society which goes
beyond the business core and beyond the requirement of law leading to the added value for the
business organization and society. Leadership and direction plays a essential role in execution of
corporate social responsibility which shows the growing interest of company towards the ethics
as they are facing economic,social and environmental challenges. The fast pace of change is
forcing the management and leaders to finds many originative and advanced method for coping
with multiple stakeholders who have interests, needs and necessitate which sometimes may lead
to conflicts. Corporate Social Responsibility has become one of the news organization
challenges over the last few years(Nudurupati, Garengo, and Bititci, 2021). Various
perceptions of Corporate Social Responsibility have generated series of misunderstandings and
have created barrier for organizations in the way of approaching Corporate Social Responsibility
opportunities and challenges.
In starting the company Marks and Spencer did not took responsibility seriously and
pretended when it came to environment known as brainwashing. But after customers have turn

more responsible, aware and educated on various issues like global warming and unethical
labour practices which have began exacting the business practices which benefits the whole
society rather than business only. Earlier Marks and Spencer only focused at the bottom lines but
in present times they have been socially and environmentally more responsible. Besides the loss
of consumers who are socially aware, Corporate Social Responsibility has affected the ability of
business in attracting top endowment and also impacts the job spirit levels of workers and rate
of keeping. The next generation of employees who will enter the workforce later on seek out the
companies who have a clear and effective strategy of Corporate Social Responsibility. If M&S
do not keep Corporate Social Responsibility on priority than they may have the risk of losing
top talents(Symeonides, Loizia, and Zorpas, 2019). The business which follow the Corporate
Social Responsibility have mores happier and more satisfied employees as feels they are
working for a socially conscious employers which give them a sense of purpose. Marks and
Spencer have invested more in the employees and work harder for creating a workplace which
employees enjoy leading to enhancement of productivity. Corporate Social Responsibility
strategy has helped the company in retaining the current employees for longer period of times.
The rise of online platforms have affected the significance of Corporate Social Responsibility.
Organization which have unethical practices of business are exposed affecting operations of the
business. Social media have also worked as a tool for highlighting the organizations Corporate
Social Responsibility activities leading to increased sales,extensive consumer reach and positive
feedbacks.
Impact of covid 19 and Brexit over Marks and Spencer
The business operation in the UK are largely affected form the separation of United
Kingdom and European Union. Many deals related to trade within the union and United
Kingdom were on stake. There are other states which comprises with union. In order to maintain
cooperation with them, many commercial reciprocation were done in the open market which will
be provided from European Union. After exit from EU, UK faced many challenges as terms of
retail industry. At the time, when UK was a part of EU they maintain a strong base of consumer
through attracting customers of various state, which were also a part of European Union, but
when they exit EU, the retail company such as Marks and Spencer needs new consumer base for
maintaining brand image in an enterprise. Due to Brexit, the Marks and Spencer face some
obstruction which are, increase in goods price, weak supply chain, instability in currency of the

state and many more. The obligation of business in fulfilling the registration of VAT in order to
utilise online platform for selling the products(Tupa, and VOJTOVIČ, 2018). This also affect
the policies of trade in a state which made a direct impact on a retail industry includes Marks and
Spencer. The rule of taxation are changing in a country which have higher tax rate for retail
industry and due to this the Marks and Spencer have to increase the price of their goods. Because
of high product cost the enterprise is not able to meet the demand of consumers. The consumers
were not satisfied from the enterprise because of non availability of products in the store of
Marks and Spencer. As example, this have some pig shape sweets which are manufactured in
Germany and imported through UK. There is a relief from customary law and tariff for import
and export, this scenario was before exiting Brexit.
The effect of Covid 19 on every sector of business in over all the globe. The larger impact of this
pandemic was faced by the retail industry of an state. Marks and Spencer is a retail clothing
business which holds most influential brands name in context of all other retail stores. At the
time of pandemic, the authorities has put limitation on the motion of goods and services and
individuaal. Retail brands like Marks and Spencer rely upon the retail stores in different
countries. The customers were not able to reach to the stores as the movement was prohibited.
The supply and production was also got affected by the situation of Covid 19. Because the
manufacturing or production activity requires raw materials and the desired amount of labour or
workforce in order to manage the sales. In reference of the company Marks and Spencer, it was
depending upon the manual labour for the former process(Zahari, and Romli, 2019).
Showcasing the products on the online platforms were also of no use because the delivery of the
same is not possible during the period of Covid 19. It also affected the annual sales and turnover
of the company as the sales of the company was decreased in Covid 19. Clothing industry does
not fall under the essential goods so in that case government has given no freedom or rebate to
such industries in any manner.
At present, after going through such phase, the company Marks and Spencer tries to overcome
the issues by using its experience and existing brand image of the company in order to retain the
consumer base. The sales and productivity of the company could be maintained by understanding
the needs and preferences of the customers and fulfilling the demand accordingly. This will also
help in increasing the profitability of the company.

CONCLUSION
In the preceding report this has being concluded that the order of operation in all utility of
business enterprise in a effectual way is most essential for a person to know the context of
business. The growth of market is very essential for the management of this enterprise for
making proper strategies. The accurate tools like PESTEL have concluded in the report which
assists to realize the situation of business in an effectual manner. The report concludes
opportunities and strengths in order negate threats and improvize the weaknesses. The leadership
style of Daniel Goleman have been concluded in the report for motivate the workers. Moreover,
the report also concludes the CSR which make positive outcome on the brand image and relation
with the stake-holders.

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