HND Business: Marks & Spencer Business Environment Analysis

This report provides an analysis of the business environment surrounding Marks & Spencer, focusing on both internal and external factors. It utilizes the PESTLE framework to examine political, economic, social, technological, legal, and environmental influences, highlighting the competitive UK market, the impact of digitalization, and Marks & Spencer's CSR initiatives like Plan A 2025. The report also includes a SWOT analysis, identifying the company's strengths, such as its brand image and international expansion, and weaknesses, including a relatively small market share compared to competitors like Tesco. The analysis concludes that understanding the business environment is crucial for organizational success, with a focus on leveraging strengths and addressing weaknesses to improve market position. Desklib provides access to a wide array of study tools and solved assignments for students.

Business environment
Marks and Spencer

Table of Contents
 Introduction
 Key Findings PESTLE
 Key Findings Strengths and weaknesses
 Conclusion
 References

Introduction
Business is an economic activity aimed to earn financial gains. The
environment are the circumstances surrounding the business
within which business operations are carried out. The factor can
be part of external environment or internal business
environment.

Key Findings with PESTLE

Con..
Political Factors The market of United Kingdom is highly
competitive therefore there is free entry and exit of the firms.
This situation is affecting to lose the market share of the
company to the new entrants.
Legal Factors: These factors undertake laws formulated by the
government regarding business operation.

Economic Factors: This factor takes into consideration the market
situation of the country. The rise of recession brings positive results
to sales volume.
Social Factors: This factors takes into consideration the social and
cultural factors i.e. preferences, trend, attitudes, values and beliefs.
These factors affect the functioning of a business at a large scale.

Technological Factors: M&S is known to be active in terms of
technology. The revolution of digitalisation in retail sector is
significant. The development of online portals and mobile
application have helped Marks and Spencer into enhancing
sales volume over online platforms.
Legal Factors: These factors undertake laws formulated by the
government regarding business operations

Environmental Factor:Marks and Spencer's Plan A 2025
(Because there is no Plan B). This CSR helped the company in
gaining a brand awareness and increased Brand Value.

Strength and Weaknesses
The analysis of the factors of the internal environment is crucial.
It helps in identification of strength and weaknesses of an
organisation. The analysis helps utilising the performing areas
to their use and improving the non- performing areas of
business.

Strengths:These are the best performing factors of an
organisation. The major strength of M&S are its brand
image, international expansion, infrastructure and its vast
supply chain. The company can utilise these factors to
overcome hurdles in operation.

Weaknesses: Weaknesses are hindrances which prevents a
company from achieving its desired position in the market.
Market share for Marks and Spencer is 3% which is very less
in comparison with Tesco capturing staggering 28%.