PESTEL Analysis of Marks & Spencer Group PLC

This report analyzes the PESTEL analysis of leading retail company Marks & Spencer, UK. It evaluates the economic, social and other factors and their impact on business performance as well as financial health.

Global Business Environment


TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PESTEL analysis of Marks & Spencer Group PLC...................................................................3
Key drivers of change ................................................................................................................4
CONCLUSION...............................................................................................................................5
REFERENCES................................................................................................................................6


INTRODUCTION
In the context of business units, external factors have high influence on operational
aspects and performance which are operating at global. PESTEL analysis is used to evaluate the
economic, social and other factors and their impact on business performance as well as financial
health. For this report, M&S has been selected which offers wide range of products to the
customers under the category of food, clothes etc. The report analysis PESTEL analysis of
leading retail company Marks & Spencer, UK.
PESTEL analysis of Marks & Spencer Group PLC
Political factors: The rules and regulations, policies made by government with respect to
trades and business fall under the category of political factor. Government made various policies
like labour law, trade restrictions, trade policies and political stability (Citro, Cuadrado-
Ballesteros and Bisogno, 2021). It means only government can decide about the import and
exports of goods &services. Marks & Spencer was charged for avoiding the safety regulation
and later solved the issue. The company also have full support as it has fair means of trade
policies therefore, it will help them to expand its business in export-import.
Economic factors include inflation and interest rate, foreign exchanges rate would also
affect the purchasing power of customer. The company needs to focus on policies and keep
tracking them. Monetary policies of UK is properly maintained by the government and has also
managed a low rate of inflation. Also, fiscal policy is managed by them in order to provide
superior services to economy. Additionally, The firm overall adopted the strategies in order to
provide quality services to its customers.
Social factors: In order to achieve positive impact on business in context of social factors
the company needs to focus in customer satisfaction. The company focuses on trends, age
distribution and cultural demand of customers. The firm is focusing on its clothing line in order
to satisfy customers according to their taste, demand and preferences.
Mark & spencer focuses on customer's convenience and providing good corporate culture
to staff members. Using modern technique and unique payment modes, the company allows its
customer to shop online with different modes ((Marks & Spencer PESTLE analysis, 2021). In
order to compete with others, the company attracts their customers by focusing on buying
concerns such as quality, fashion style and price.

Technological factors: Without using new technology, no company can survive in the
competitive market. Referring these aspects M&S has already invested on new technology and
using new methods for its website. By providing free Wi-Fi in the stores, the company gives
facilities to their customers which will help them to explore more products (Kelly and et.al.,
2021). Hence, in order to gain competitive edge over others business unit is required to employ
or focus on technology advancements.
Legal factors: For ensuring smooth functioning of operations M&S is required to
comply with all the legal factors. At global level, firm needs to follow several laws and
legislation such as employment, health & safety, data protection law, copyright etc. Earlier,
M&S failed to follow laws regarding health & safety and related norms. Thus, at the time of
policy formulation M&S should keep in mind legal aspects.
Environmental factors: Now, companies are obliged to address environmental issues
through recycling, waste management etc. In addition to this, customers also prefer to purchase
products from the retailer which performs operations in an eco-friendly manner (Borowski and
Patuk, 2021). Referring this, it can be stated that M&S should focus on developing strategies
which contributes in sustainable operations.
Key drivers of change
 In order to compete in competitive market the company must focus on online
marketing as nowadays, customers are more attracted towards e-commerce. Keep
updating the features of the company's website will promote its marketing strategies.
 While making any business related decision company must focus and keep track on
updated policies established by government. The firm must keep following their
rules and regulation in terms of trade and others to avoid any uncertainty in the
future.
 The firm needs to focus on new technology and create more innovative ideas to
attract large number of people. The company must take benefit of online ratings
features and review sites to know the customer feedback so that it can help them to
improve performance.
 Nowadays, customers prefer eco-friendly operations, thus, they are more attracted
towards them so company needs to focus on environment friendly products and

services. The company must provides varieties of products and services on the basis
of customer satisfaction, their needs, taste, trends and preferences.
CONCLUSION
To conclude, the above mentioned case study on Marks & Spencer PESTLE analysis
outlined the elements which impact and influence its business strategies and performance. By
summing up this report, it can be concluded that M&S focuses on eco-friendly environment and
go green in order to achieve higher efficiency.

REFERENCES
Books and Journals
Borowski, P. F. and Patuk, I., 2021. Environmental, social and economic factors in sustainable
development with food, energy and eco-space aspect security. Present Environment &
Sustainable Development. 15(1).
Citro, F., Cuadrado-Ballesteros, B. and Bisogno, M., 2021. Explaining budget transparency
through political factors. International Review of Administrative Sciences. 87(1). pp.115-
134.
Kelly, B. and et.al., 2021. Measuring technological innovation over the long run. American
Economic Review: Insights. 3(3). pp.303-20.
Online
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