PESTEL Analysis of Marks and Spencer - Global Business Environment

This report provides a PESTEL analysis of Marks and Spencer in the global business environment, discussing the key drivers of change and their impact on the organization. The report covers political, economic, social, technological, environmental, and legal factors affecting the organization. It concludes that the business environment is highly uncertain and dynamic, and can bring various opportunities for change that can support the development of an organization and their profitability.

GLOBAL BUSINESS
ENVIRONMENT

Table of Contents
INTRODUCTION...............................................................................................................................3
TASK....................................................................................................................................................3
PESTEL analysis of Marks and Spencer...........................................................................................3
CONCLUSION....................................................................................................................................4
REFERENCES....................................................................................................................................5

INTRODUCTION
Business environment comprises of internal and external factors which can bring
opportunities and threat for the organization. Business environment is a composition of
dynamic forces which can influence the functions and profitability of and organization
(Amaechi, 2021). This report will discuss the external business environment of Marks and
Spencer and the key drivers of change.
TASK
PESTEL analysis of Marks and Spencer
PESTEL analysis is framework which helps in understanding the various external
business environment factors which are responsible for creating an impact on the functions
performed by business. The PESTEL analysis in context of Marks and Spencer and the
drivers of change are addressed below:
Political factors- As Marks and Spencer is operating in more than 1300 stores all
around the globe, the company has established their brand presence and awareness in the
industry. Political factors such as EU trade agreement has been an opportunity for the
organization to travel freely across countries without any traffic and taxes and it also leads to
decline in sourcing cost incurred by business (Marks and Spencer PESTEL analysis, 2019).
Other political factors such as price regulations and helps organization in offering quality
customer service. Some of the political factors such as political stability and taxes are
responsible for driving negative change on the sale and revenues of the business.
Economic factors- The economic factors such as low disposable income of
consumers can decrease the spending potential of their customers. There are various
economic factors which influence business operations, such as- inflation rate, interest rate,
foreign exchange rate and economic growth.
Social factors- Due to change in generation of is one of the important reasons which
is used for understanding the interest of customers through which strategies can be planned.
Customers are becoming more environment friendly which encourages brand to bring change
and rethink for the products and services offered by them.

Technological factors- The advancement in technology has driven change in Marks and
Spencer and for threat the company has incorporated self-checkout systems through which
the business can plan to increase use of AI in future (PESTEL analysis of M&S, 2017). The
use of social media platforms and online presence can help brand in strengthening the brand
presence and attract greater number of customers.
Environmental factors- Whereas, due to strict regulations on environment and
incline in pressure of consumers for ethical and green practices can limit the standards of the
organization. Due to incline in customer awareness and responsibility towards the
environment, Marks and Spencer focuses on brining change through their carbon-neutral
plans, zero waste programs, ethical trading and by using sustainable sourcing.
Legal factors- The brand Marks and Spencer has been involved in various legal
disputes and such factors ra responsible for tarnishing the brand image of the brand (PESTEL
analysis of Marks and Spencer, 2019). Due to the changes-imposed post Brexit, are
responsible to influence the operations, functions and strategy of the organization.
CONCLUSION
From the study of above information, it can be concluded that business environment is
highly uncertain and dynamic and can bring various opportunities for change that can support
in development of an organization and their profitability. There are various factors involved
in business environment which collectively form the business environment and can possess
various threats which can hamper the growth of organization.

REFERENCES
Books and journals
Amaechi, E., 2021. Understanding Culture and Success in Global Business: Developing
Cultural and Innovative Intrapreneurs in Small Businesses. In Culture in Global
Businesses (pp. 205-224). Palgrave Macmillan, Cham.
Online
Marks and Spencer PESTEL analysis, 2019 [Online]. Available through
<https://www.mbaskool.com/pestle-analysis/companies/18016-marks-a-spencer.html>
PESTEL analysis of Marks and Spencer, 2019 [Online]. Available through
<https://www.marketingtutor.net/pestle-analysis-of-marks-and-spencer/>
PESTEL analysis of M&S, 2017 [Online]. Available through
<https://freepestelanalysis.com/pestle-analysis-of-mark-and-spencer-ms/>