Marks & Spencer: Business Analysis

This assignment examines Marks & Spencer (M&S) through a comprehensive business analysis lens. It utilizes SWOT and PESTLE analyses to evaluate the company's internal strengths and weaknesses, as well as external opportunities and threats, and the broader socio-political landscape. The analysis delves into M&S's market position and considers its impact on civil society within the UK.

BUSINESS AND BUSINESS
ENVIRONMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Purpose of private, public and voluntary organisation with their legal structure.............1
P2 Size and scope of different types of organisation.............................................................2
P3 Relationship between various functions of M&S to accomplish organisation mission and
objectives................................................................................................................................3
TASK 2............................................................................................................................................5
P4 Positive and negative impact of macro environment on business operations of M&S.....5
P5 Internal and external analysis of M&S..............................................................................6
P6 How strength and weaknesses interrelate with external macro factors.............................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

Illustration Index
Illustration 1: Proportion of voluntary organisations in the UK by number, income, expenditure
and assets, 2013/14 (%)...................................................................................................................3
Illustration 2: SWOT analysis of M&S...........................................................................................7
Illustration 3: PESTLE analysis.......................................................................................................9

INTRODUCTION
Business environment play very important role in success of its operations and functions.
It assists to identify strengths, weaknesses, opportunities and threats. In order to analysis
company growth, successful results can be made in systematic manner (Isik, Jones and Sidorova,
2013). In this context, present report is based on the Marks and Spencer (M&S) which is leading
in retail business of UK market. The company operating their functions and operations in more
than 1,433 stores in all over the world. They are providing online services with effective quality,
own brand food and home products in all over the market. In order to gain insight knowledge of
the firm, present report covers purpose of private, public and voluntary enterprise and their legal
structure. Furthermore, it includes size and scope of M&S and other enterprises as well.
Moreover, reports assist to identify positive and negative impacts of the macro environmental
factors on the business operations of M&S.
TASK 1
P1 Purpose of private, public and voluntary organisation with their legal structure
In order to analysis internal and external environment, M&S has opportunities to shows
their internal business in term of strength and weaknesses and opportunities and threats that are
exists in the of the enterprise. SWOT analysis determines spark to the strategic ray that assists to
make its planning (Anderson, Sweeney and Cochran, 2014). In this context, following SWOT
analysis has been developed in the selected business unit:
Private organisation: Private enterprise is the most important part of the country
economic system which run by several individuals, companies, etc. to earn more profit.
Therefore, their main aim is to run business to make high profit in the enterprise. Therefore, they
seek to implement decision according to own way to run operations (Glova, Sabol and Vajda,
2014). In this context, M&S has main aim and purpose to accomplish the goals of the
management to make effective functioning in the business. They have desire to earn more money
through attract several customers within the organisation. In addition to this, the company has
separate legal entity because it owned by shareholders. Each shareholder of the organisation has
important part which run by board of directors. Further, the chosen enterprise using hierarchical
structure to deliver proper and right information that helps to maintain customer loyalty.
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Public organisation: Public sector enterprises provides different kinds of services that
are beneficial to the society. These types of organisations have main aim is to provide several
government services. For example, Sainsbury enterprise is the largest public-sector organisation
in retain operations of UK. Their purpose is to provide better products and services to their users
so that efficiency can be enhance easily (Shmueli and Lichtendahl Jr, 2017). Along with this,
their legal structure has been developed in term of limited liability. This is because, they can
enhance their capital from the public directly with issuing shares. In addition to this, Sainsbury's
adopted vertical organisation structure through people working in hierarchical system. Therefore,
at high level employees make strategy to work. Middle level employees determine their
operations and functions to make policy, decisions, etc.
Voluntary organisation: Further, voluntary sector enterprises have main purpose and
aim is to improve and enrich the society. This is because, it creates social wealth instead of
material wealth. It is refereed as the third sector (Doh, McGuire and Ozaki, 2015). For instance,
Cabinet Office is the British government which has office of third sector is the place between
state and private sector. This organisation has limited liability company structure which
incorporate and registered at the companies’ house. Moreover, the enterprise using divisional
structure to provide relevant information to each employee so that they can work in systematic
aspect.
P2 Size and scope of different types of organisation
In order to determines effective results, there are different types of businesses exist who
possess different size and scope. Therefore, according to their scope and size, business
determines their functions and targets in successful aspect. With this regard, following are
different types of enterprises exists who possess effective size and scope in the business:
Private organisation: Size of the private enterprise depends on the number of employees
those works in the enterprise. Therefore, there are different sectors included that belongs to
activities that are important part in the market (Shaw and Barry, 2015). Hence, M&S operates
their functions in several areas of the nation and international areas as well. Scope of the private
enterprises design to develop their goals and objectives in small and medium size operations.
Therefore, they investing more money to creates innovations and creativity.
Public organisation: Public sector enterprises has effective size which depends on its
number of employees. They are demonstrates their functions and operations in different aspects.
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In addition to this, they are also provided services in several areas to develop financial
performances. Therefore, Sainsbury has more than 160,000 employees in all over the world.
They earn more revenue through operates functions in several areas of the world. Apart from
this, scope of the public sector enterprise develops in different activities such as central
government, small entities, healthcare, etc. (Schneider and Spieth, 2013). In this context,
Sainsbury also deals in Sainsbury bank Plc, Sainsbury's supermarket, etc.
Voluntary organisation: Voluntary sector has the vital part so that they determine as
strong society in UK. They are extremely diverse and hosting that arrange the business in term of
size, activity and aims. In addition to this, this sector is dominated by the larger charities. Their
annual income £1m which is the 80% of total income.
P3 Relationship between various functions of M&S to accomplish organisation mission and
objectives
In order to accomplish the goals and objectives, there are different types of functions
performed by M&S. It includes, marketing, financing, training, accounts, production, etc. In each
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Illustration 1: Proportion of voluntary organisations in the UK by number, income, expenditure
and assets, 2013/14 (%)
(Source Civil Society Almanac 2016 / Size and scope, 2017)

function, profits earns through perform several activities that assists to accomplish aims and
objectives to maintain profitability (Isik, Jones and Sidorova, 2013). In this context, relationship
between functions relates with its objectives and structure:
Design and production: M&S design their goods and services as per the customer
requirement. Therefore, it impacts positively on the objectives and goals with communication as
well. With the help of divisional structure, the organisation can assign roles and responsibilities
as per qualifications and interest area of the particular person (Anderson, Sweeney and Cochran,
2014). It assists to attract several customers towards the enterprise that create several benefits to
perform functions and operations within the business environment. In addition to this, regular
monitoring on the performance of people needed so that business will accomplish their targets in
systematic way. Hence, it makes direct relationship among structure and objectives as well.
Finance for the organisation: Along with this, finance is another major element through
M&S can enhance their operations and functions in different areas. It includes manuals and
economic records that require develop more profits at workplace of the chosen business (Glova,
Sabol and Vajda, 2014). In this way, financial statements need to be ascertain to follow tax rules
and legal requirements as well. However, information also used to produce management
accounts that assists to make plan and strategy.
Sales and marketing: Sales and marketing consists important part in the business to
identify satisfaction level of customers towards the several products and services that provided
by M&S. With the help of customer demand and requirement, enterprise can easily review their
activities and investigate it to operate market functions. Therefore, organisational structure will
perform their outcomes to make high profits and revenue (Shmueli and Lichtendahl Jr, 2017).
Research and development: In respect to conduct research, M&S has main aim is to
increase their profits and revenue through improving quality of goods. In respect to implement
production methods, M&S has opportunities to make creativity in their goods. It will increase
productivity and profitability from the several activities and actions. With the help of allocation
of specific amount of fund, roles and responsibilities can be share to different members to
accomplish goals (Doh, McGuire and Ozaki, 2015).
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TASK 2
P4 Positive and negative impact of macro environment on business operations of M&S
Macro environment play very important role to identify positive and negative impact on
the organisation operations. However, these factors are beyond the control of management of
M&S. As results, it will make proper support to take de
cisions in business.
 Political factors: Government determines several kinds of rules and regulations to
organise functions and operations. Hence, it need to be followed for the development of
operations (Bocken, Rana and Short, 2015). It influences to take decisions in the business
as per government rules. However, high tax rate of the government create negative
impact on the business performances.
 Economic factors: This factor create impact on the business when country has high
national income. Due to formulating, implementing and controlling of economic policies'
nature and direction of the M&S continue develop. Therefore, it creates positive impact
on the functions. On the other hand, there are several changes also take place which could
be dispose to customer income. For example, interest rate.
 Social factors: Due to different perception, lifestyle, requirement, etc. in customers, the
chosen company has negative impact. Beside this, when M&S performing their
operations as per customers’ needs and demand they are able to enhance profitability in
successful aspect.
 Technological factors: Technological environment consist important role in success of
the organisation. In this aspect, advance tools, machine and many other things can be
applied in the organisation that assists to produce effective results in business. As results,
it requires high cost to formulate the goals and objectives (Lawrence and Weber, 2014).
On the other hand, advance technology also creates positive impact in M&S because it
makes strong value, production and employment opportunities.
 Legal factors: Legal factors determines as the laws and regulations that made by the
government in the nation. In this aspect, the chosen organisation has positive impact
when they are follows all these rules and regulations for example Employment Right Act,
Quality Act, proper healthcare, etc. (Laudon and Laudon, 2015). However, when the
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chosen organisation not following these rules and regulations it creates negative impact
on their operations.
 Environmental factors: Within the UK market, there are two types of environment
exists with can impact on M&S. For example, internal and external environment. In the
internal environment, employees, policies, systems, etc. are major elements which could
impact majorly through supporting the activities. In this way, positive impact can be
maintained for effectively working to develop outcomes and relations. However, strict
policies and lack of employee’s skills reduce profitability of the organisation which
create negative impact on the business operations and functions.
P5 Internal and external analysis of M&S
SWOT analysis
Marks and Spencer has many strengths so that they can focus on the brand value of
enterprise. Therefore, they can provide wide range in the products and services in different areas
of the world.
Strengths Weaknesses
 M&S has high recognition of the brand
 Wide variety of the products and
services in the business
 Large number of stores and outlets
 More than 1300 stores in all over the 40
nations
 Strong competition from the other retail
brands in term of market share.
 Bad publicity of the selected enterprise.
 Manual working enhancing the costs
(Eriksson and Kovalainen, 2015).
 Online presence of the enterprise is
very weak
Opportunities Threats
 M&S can improve their offers in
clothing range.
 The company can develop their own
website
 They can introduce new market
segment (Dudovskiy, 2017).
 Other retail businesses threat exists to
M&S due to their high discounted
prices.
 Government policies for the
organisation create threat to retail stores
 Conflicts among shareholders and
executive also major threat to the
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 The business has future opportunities to
expand the operations in India and
China (Goss, 2015).
organisation.
PESTLE analysis
Marks and Spencer has favourable outcomes with their free trade agreements it also
reduce costs to produce effective functioning. Higher cost structure has disadvantage in the
international markets. Following are certain elements in the PESTLE analysis that impact on
M&S: Political factors: Government of the UK market sets their rules and regulations for the
retail sector businesses to abide health and safety standards. In this aspect, they have
planned for identification of hazards, risk assessment and control. When M&S not
following these rules and regulations, they are unable to enhance their outcomes in
international market (Anderson, Sweeney and Cochran, 2014).
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Illustration 2: SWOT analysis of M&S
Source: (An Introduction to SWOT Analysis,
2017)

 Economic factors: In the current aspect, economic is very uncertain so that it is beneficial
to retail businesses. Therefore, M&S need to spend more on the luxury items such as
clothing, food, etc. Recently M&S closed their number of stores which reduced 2% job
so that there are almost 70,000 staff members gone from the enterprise. It also affects to
the recession so that decisions have been taken to provide products and services at 20%
discount rate. Social factors: In different countries, distinctive customers exist who have different
perception, need, demand, requirement in the products and services (Meyer and Peng,
2016). As per the customer requirements, M&S need to stretch company brand through
they are able to selling food online. Therefore, it is the major aspect that influence to
respond for the current issue. Technological factors: Technology play vital role in the retail market. Therefore, the
selected business unit need to manage their brand very carefully. Firstly, the brand
position require continuously communication with the consumers (Shmueli and
Lichtendahl Jr, 2017). With the help of spending huge amount of money on the
advertisement, the company has opportunities to maintain effective awareness, loyalty
and customer preferences as well. Hence, it creates positive impact on the functions of
M&S to attract their customers with effective advertisement. Legal factors: Rules and legislation continuously change so that the enterprise need to
provide training again and again to each employee so that performances could be
enhances every year. They have to keep up to date with new laws and legislation (Shaw
and Barry, 2015). In order to provide re training, M&S need to make certain changes in
their organisation functions and taxes.
 Environmental factors: Environmental factors includes elements those impact on the
current environment of the enterprise such as climate, issues that are promoted daily
through television, magazines, newspaper, etc. (Glova, Sabol and Vajda, 2014). M&S
also established their own policy which state plan and determines ethical trading,
standards, etc.
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P6 How strength and weaknesses interrelate with external macro factors
Strength and weaknesses of the M&S interrelated with its macro elements. In this aspect,
the organisation able to develop their profitability and productivity through external environment
elements. It plays major role in success of the organisation and its operations (Doh, McGuire and
Ozaki, 2015).
Strength
 M&S has high recognition of the brand
 Wide variety of the products and services in the business
 Large number of stores and outlets
 More than 1300 stores in all over the 40 nations
Weaknesses
 Strong competition from the other retail brands in term of market share.
 Bad publicity of the selected enterprise (Laudon and Laudon, 2015).
 Manual working enhancing the costs
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Illustration 3: PESTLE analysis
(Source: Barry, 2017)

 Online presence of the enterprise is very weak
These strengths and weaknesses can be interrelated with macro environment in the
following aspects:
 Political factors: Within the UK, there is political stability, therefore, it assists to
enhance operations in business in successful way. In this aspect, several activities and
actions design in M&S in successful way. At each level, several activities frames among
central, state and local bodies that helps to make changes to generate effective results
(Bocken, Rana and Short, 2015). On the other hand, the company has some adverse
impact due to political factors for example, high taxation. As results, it is related with
weaknesses of the business unit.
 Economic factors: Due to increasing of fuel cost, M&S has negative impact. As results,
they have to charge high price for products and services. Further, crisis in the global for
food products also create negative impact on the enterprise so that products and services
prices continuous rising (Lawrence and Weber, 2014).
 Social factors: Due to increasing of social trends, the selected business has positive
impact so that it create strength in the market. Therefore, the chosen organisation has
concentration to produce healthier products and services that generate more profits within
the organisation (Foss and Saebi, 2017).
 Technological factors: With the implementation of advance technology, M&S has
opportunities to increase their operations in different areas. Therefore, it assists to the
company to maintain its growth position within the market. As results, profitability can
be increase in effective manner.
 Legal factors: At workplace of the organisation there are several legal issues take place
such as minimum wage, discrimination, etc. (Schneider and Spieth, 2013). However, they
follow different legislation in the consequence that helps to maintain legal laws such as
competition, employment, etc. As results, it creates positive impact that enhance strength
of the business.
 Environmental factors: In respect to remove pollution from the environment, M&S
trying to enhance their strength. Therefore, it assists to prove positive impact on the
organisation to cater their performances (Isik, Jones and Sidorova, 2013).
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CONCLUSION
In order to summing up the present report, it can be concluded that M&S has various
goals and objectives to enhance their profitability and productivity in the market. In this aspect,
they are producing effective functions and operations in the business through which they can
easily attract many customers. In this context, report elaborates purposes of the different
enterprises such as private, public and voluntary. Therefore, the chosen organisation deals in
private sector whose main motive is to enhance profitability at workplace. Furthermore, it
articulated about the SWOT and PESTLE analysis to assess strength and weaknesses of the
company. Moreover, it discusses about functions of the enterprise that are interrelated with the
structure of the business. At last, it explained the macro environment factors that are interrelated
with strength and weaknesses of the company.
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REFERENCES
Books and Journals
Anderson, D.R., Sweeney, D.J. and Cochran, J.J., 2014. Statistics for business & economics,
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governance and international nonmarket strategies: Introduction to the special issue.
Journal of World Business. 50(2). pp.256-261.
Eriksson, P. and Kovalainen, A., 2015. Qualitative methods in business research: A practical
guide to social research. Sage.
Foss, N.J. and Saebi, T., 2017. Fifteen years of research on business model innovation: How far
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Glova, J., Sabol, T. and Vajda, V., 2014. Business models for the internet of things environment.
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Goss, D., 2015. Small Business and Society (Routledge Revivals). Routledge.
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Tata McGraw-Hill Education.
Meyer, K. and Peng, M.W., 2016. International business. Cengage Learning.
Schneider, S. and Spieth, P., 2013. Business model innovation: Towards an integrated future
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Shaw, W.H. and Barry, V., 2015. Moral issues in business. Cengage Learning.
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Online
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<https://businessteacher.org.uk/swot/swot-analysis.php>. [Accessed on 12th October
2017].
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Barry, 2017. PESTLE Analysis. [Online] Available through:
<http://www.murphymarketing.ie/pestle-analysis/>. [Accessed on 12th October 2017].
Dudovskiy, J., 2017. Marks & Spencer (M&S) SWOT Analysis. [Online] Available through:
<https://research-methodology.net/marks-spencer-ms-swot-analysis/>. [Accessed on 12th
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