Business Environment Analysis Report: M&S PESTLE Analysis and Strategy

This report provides a comprehensive analysis of the business environment, emphasizing the factors that influence a business's success. It begins with an introduction to the business environment, defining its significance and impact on organizational functioning, performance, and decision-making. The report then delves into macro-environmental factors using the PESTLE analysis framework, specifically examining how political, economic, social, technological, and legal factors affect Mark & Spencer. Both positive and negative impacts of these factors are discussed. The report also includes an internal and external analysis, highlighting the strengths, weaknesses, opportunities, and threats (SWOT) facing Mark & Spencer. Finally, it concludes by summarizing the dynamic nature of the business environment and the interplay of various internal and external factors, referencing relevant academic sources to support its findings.

Business and
Business
Environment

INTRODUCTION
• Business environment is an aggregate of all conditions, events and influences that are
surrounded and affect business.
• It basically determines types of business that it will be successful within emerging environment.
It means that how all internal and external factors affect a particular organization in functioning,
performance and decision making of a business.
• Such as functioning of different departments, employees, customer, management, supply and
demand and business regulation.

INTRODUCTION
• Mental health refers to condition of an individual in which they remain,
emotionally, psychologically and socially well being as it impacts on their ability
to think, feel as well as take action.

MACRO ENVIRONMENT
• A PESTLE analysis is an acronym for a tool used by an
organization to identify, analyze and monitor the macro
environmental factors that have impact on an organization.
• It is a strategical tool or framework for understanding
external influences on business. Mark & Spencer has
implemented this to know their positive and negative
impact on their business.

POLITICAL FACTOR
Positive Mark & Spencer interact and work within government rules to protect
organisation's legitimate interest and develop policies which addresses wider public
objectives.
Negative They were affected negatively due to increase in taxes which were sets by
government. Herein, this lead to increase in price of their product or else it would
decrease firm's income.

ECONOMIC FACTOR
Positive Mark & Spencer concentrates more on fashionable arena as younger generation as
they more concern about their lifestyle and personalities.
Negative They need to do complete economic analysis as it is essential to consider the issues
of interest rate, inflation etc.. for long and short terms.

SOCIAL FACTOR
Positive Mark & Spencer are improvising as well as providing it product to their customer
according to their changing test and preferences.
Negative They have to modified their product a lot according to customer need and demand
which incurred high expense in research and analysing needs of its potential
customers.

TECHNOLOGY FACTOR
Positive Mark & Spencer have adopted various advancements of technologies to bring
innovation and to attract young generation with new and trendy design in their
product.
Negative Its occur huge amount of cost in adopting technologies as now a days consumer are
focused on online retailing more than store purchase.

LEGAL FACTORS
Positive It is one of leading retailer in country world wide. It ensure to adapt that there is no
discrimination for its employees as well as its customer.
Negative Mark & Spencer are negatively effected by various laws and regulation that are
being imposed by government.

ECONOMICAL FACTOR
Positive Mark & Spencer focus more on providing better quality of products and services to
their customer dan able to gain customer loyalty.
Negative They were adversely affected by its competitors as they were more focus on quality
which only lead to short term effect. Mark & Spencer need to work more on
market flow if they want to sustain sales.

INTERNAL AND EXTERNAL
ANALYSIS
Strengths Weaknesses Opportunities Threats
Marks and Spencer
provided employment to
around 80,000 people in
more than 1000 stores in
40 countries. They have
their own brand labels.
In Middle East and Asia
people prefer ethnic and
traditional outfits more but
Marks and Spencer
provide variety of western
clothing which results in
unsuccessful market in
these region.
Fashion usually changes
with time means market
also needs to implement
those changes. Huge
demands are for traditional
or ethnic wear in Asia but
Marks and Spencer is
unable to exploit those
demands.
Foremost threat is
competition. Many
competitive brands like
Tommy Hilfiger,Centra,
Tesco, Farmfoods, Aldi,
United Colors of Benetton,
Zara and Uniqlo are
present in market.
Discount offered by other
retail stores can result in
lose of customer base.

EXAMINING STRENGTHS AND
WEAKNESS
• Political factor: Political factors are integrated with government interferences,
which effect both positively and negatively in a business.
• Economical factor: This factor helps in determine current and expected future
value of a particular organisation.
• Social Factor: This factors include changes in taste and lifestyle in demographic
make up of population.
• Technology factor: This factor affect various external factors on business for
evaluating alternatives with respect to technological capabilities