Impacts of PESTLE environmental factors on Marks and Spencer

BUSINESS IN CONTEXT
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Impacts of PESTLE environmental factors on Marks and Spencer............................................3
Challenges faced by Marks and Spencer.....................................................................................5
Business Strategy in relation to challenges..................................................................................6
CONCLUSION AND RECOMMENDATIONS............................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
Brexit is the short form for “British Exit” from the European Union. UK has been the
member since 1973 of the economic and the policy union. It was decided by the residents that the
benefits of free trade were not enough to offset the cost of free movement. So new trade
agreements were made between the UK and European Union regarding this and retaining their
tariff-free status. With the new trade policies, it has affected the business in the economy
adversely.
M&S is a British multinational retailer company. It specializes in selling clothing, food
and home products. It was founded by Michael Marks and Thomas Spencer in 1884. it has more
than 900 stores across the world. The brand is built on the core values of values, trust, qualtiy,
services and innovation. The mission the brand is to provide quality product which is accessible
to everyone.
This report shows the impacts of Pestle environmental factors on Marks and Spencer.
Also, it shows the challenges that are faced by the company. Ans also it focuses on the different
business strategies that the company should use to overcome these challenges.
MAIN BODY
Impacts of PESTLE environmental factors on Marks and Spencer
There various factors such as political, economical, social, technological, legal and
environmental that impacts Marks and Spencer in a positive or a negative way
Political Factor
it includes the tax policy, tarrifs, political stability and trade restrictions (Christodoulou,
2019). These factors determine to which extent the government influence a business or trade.
M&S is a brand which mainly operates in UK, but it also has stores in abroad. Free trade policy
in UK allowed M&S to sell their products in foreign market at cheaper rate. But with the UK's
decision to leave the European Union. It affected the company in a negative way. As Marks and
Spencer had to face a very severe consequence that the result of Brexit was that many free trade
policies were changed and because of that company cost of production increased and it had to
sell its products in the foreign market at higher cost which lead to decrease in the sales of the
company affecting the growth of M&S.
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