Business Environment Analysis: Application of PEST and Porter's Model

This presentation provides a comprehensive analysis of the business environment, focusing on the application of PEST (Political, Economic, Social, and Technological) and Porter's Five Forces frameworks. It begins by defining the business environment as the sum of internal and external factors influencing an organization's performance and ability to maintain successful relationships. The PEST analysis examines the macro-environmental factors impacting businesses like Marks & Spencer, while Porter's Five Forces assesses the competitive intensity and attractiveness of an industry. The presentation concludes that understanding the business environment through these analytical tools enables organizations to mitigate uncertainties and formulate effective strategies. Desklib provides access to this and many other solved assignments.

Business environment

Table of Content
 Introduction
 Business environment
 PEST analysis
 Porters five forces analysis
 Conclusion
 References

Introduction
Business environment is defined as sum collection of all the internal and external
environment present in the environment leading to impact the profitability and
performance of the organisation. It is also refers to the all the factors that affect the
firm's ability to build and maintain effective successful relationship.

Business environment
Business environment
Business environment is defined as sum collection of all factors that leads to directly impacting the
business organisation ability to develop and maintain effective position in the marketplace. It also
directly impact the organisation ability to maintain effective relationship with their customers in the
marketplace

PEST ANALYSIS
PEST Analysis
It is an strategic framework used by the business organisation to determine the external factors
impacting the operations and functioning of the company. In context to Marks & Spencer, to analyse the
external environment.

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The PEST analysis is mentioned below:
Political: Marks & Spencer operates around the globe having more than 1300 stores around the globe.
Economic: The UK is considered to be largest economies around the globe as well as is also an open
economy.
Social: It includes change in the consumers taste, attitude and behaviour directly lead to impacting the
performance of the company.
Technological: Any kind of change in the technology or advancement of new technology directly lead to
impacting the performance of the company.

Porters five forces
Porter's five forces
It is framework used by the organisation to determine or analyse the operating
environment of a competition of an organisation. It helps in determining mainly five
competitive forces that shape every organisation.

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In context to Marks & Spencer, the porter's five forces are mentioned:
 Level of competition
 Threat of new entrant
 Bargaining power of Buyer
 Bargaining power of suppliers
 Threat of substitute products

Conclusion
From the above presentation, it has been concluded that analysing and determining business
environment helps organisation to avoid any kind of uncertainty and challenges, also form
required strategies to smoothly carry out their work. This presentation helps in analysing
the business environment of the chosen organisation using PEST and Porter's five forces.

References
Foulkes, S.H., 2018. Introduction to group-analytic psychotherapy: Studies in the social integration
of individuals and groups. Routledge.
Armstrong, M. and Taylor, S., 2020. Armstrong's handbook of human resource management
practice.
Jackson, G. and Deeg, R., 2019. Comparing capitalisms and taking institutional context seriously.
Journal of International Business Studies, 50(1), pp.4-19.
Chaffey, D. and Ellis-Chadwick, F., 2019. Digital marketing. Pearson uk.

Thank You