Pestle Analysis of M&S: Strategies and Recommendations

Project
TABLE OF CONTENT

INTRODUCTION.......................................................................................................................................3
Company Background.................................................................................................................................4
Pestle analysis..........................................................................................................................................4
Porter five forces.....................................................................................................................................6
Strategies and Tactics:.............................................................................................................................7
Tactics:....................................................................................................................................................9
Recommendations.......................................................................................................................................9
CONCLUSION.........................................................................................................................................10
REFERENCES..........................................................................................................................................11
INTRODUCTION
External environment of business scenario is highly important to consider while
formulating business expansion decisions, structuring the diversification into different sectors

and long term profitable revenue scales. M&S is one of the biggest retail company headquartered
in UK, with large portfolio of goods and services and has high goodwill among customers
around world. This report explains the various factors of macro environmental analysis which
can be analyzed through Pestle model, porters 5 forces where all elements are structured in
impactful way. It also explains tactics and strategies through which company can run into large
diversification and upgrade it revenue scale with high customer market share goodwill. The
report also provides recommendations through which company gain become potentially wide,
leverage high quality targets and become more effective towards business services. This report
gives detailed analysis on all arenas of macro environment, external forces which imply
management to become more productively active.
Company Background
Marks and Spencer is one of the biggest retail multinational company with headquarters
in London, offering high quality products in form of clothing, food items and home décor
products. The brand has established strong goodwill among people around the world, as it has
diversified high quality standards. It has stores and outlets in all countries around the world
where people have been highly appreciating the various products and services offered by brand,
leveraged strong legacy among people and has partnerships with various global brands and
companies. The management of M&S focuses on external forces as well as internal forces which
impact their functional operations through various levels and also variably diverges the
profitability goals (Tung,Ernstoff,Allen and La Shu,2019). Company has high capital funds and
investment opportunities for further business scale decisions which can be used for strategically
planning expansion into untapped countries market share areas. M&s clothing apparels are
strongly demanded by people around the world, due to high quality maintenance factors, strong
customer satisfaction services and the innovative designs brought up in fashionable structure.
The company has been strongly supportive in performing social responsibilities around world
and completing ethical business standards with high prominent services and determinants of high
profitable scale revenues in future. M&S has factored various elements of creativity and dynamic
business models which enable businesses to serve with strong ethical financial standards and
reach new segments of customers around world. The products and services of company are

available on various clothe shopping portals and websites through which people can reach out to
company management for feedback and grievances.
Pestle analysis
M&S business across UK can be analyzed by the fact that company has around 1000
stores in the domestic market which makes it highly competitive and structured, with high
reputation among public. Globalization has implemented various expansions of business
decisions into many counties and people around world have highly appreciated the quality
standards offered in stores. However further diversification into untapped countries needs to be
done with analysis on external macro environment, where various elements explain the strengths
and opportunities which can be vitally used for long term growth. These factors are as follows
(Clarke,2019) :
Political factors: Brexit decision of United Kingdom to leave European Union is one of the most
important factors which will impact M&S operations and further stability element along with
future revenue profitability scale. There is high unstable political scenario due to high tariff rates,
increased taxes of goods on export in European countries which is strong market for company as
there lays many stores and high goodwill among customers. These factors result in numerous
loss of free trade policies and ultimately increase in product cost, which affect customers
purchasing behavior on various levels.
Economical factors: The disposable income among public to use on shopping varying on
economic stability scenario of country where company invests for further expansion is also an
important factor impacting further revenue margins. M&S must maintains stable economic
pricing strategies for people affordability and strongly maintain equal balance between demand
and supply through which they will be able to construct their business for long term profitability.
Social factors: The changing preferences of customers to have innovative clothing apparels, high
quality standards are some of the most important social factors which affect company goodwill
among people in comparison with other brands and companies. M&S highly focuses on
maintaining strong parameters of social factors by bringing in latest fashionable trends of
clothing apparels and technological equipments which enable to get strong quality standards. The
company management is highly active to bring creativity in its portfolio and innovation through