Business Organisations and Environments in a Global Context: M&S

This report examines Mark and Spencer's (M&S) business operations, particularly its expansion plans in New Zealand. It delves into the challenges faced, including competitor strategies and leaked information that hindered the launch of physical stores, leading to a shift towards online retail. The report analyzes the New Zealand business environment using PESTLE analysis, evaluating political, economic, social, technological, legal, and environmental factors favorable to M&S. Furthermore, it applies Porter's Five Forces model to assess the competitive landscape, considering supplier and buyer power, threats of new entrants and substitutes, and competitive rivalry. The analysis provides insights into M&S's strategic decisions and the factors influencing its success in a global context.

Business Organisations and
Environments in a Global
Context

Contents
INTRODUCTION.................................................................................................................................3
TASK 1.................................................................................................................................................3
1. Information on the selected business.............................................................................................3
2. Discussion of the allocated business environment.........................................................................4
3. Application of an appropriate analytical approach.........................................................................6
CONCLUSION.....................................................................................................................................8
REFERENCES......................................................................................................................................9

INTRODUCTION
Business environment is the environment, where several organisation use to perform their
activities, so that they can generate some revenue and profits of them. Mark and Spencer is
one of the biggest retail chain of the world, which use to provide their products and services
in clothing and food industry. In 2010, they think to expand their business in New Zealand
which have very good business environment and also help organisation to perform their
operations and generate profits (Noe and et. al, 2017). This report will explain about the
problem faced by them and about the solution adopted by them. Along with this, a discussion
will take place on business environment of New Zealand and on the analytical tool which
Mark and Spencer can use.
TASK 1
1. Information on the selected businessorganisation.
Mark and Spence is one of the biggest and leading organisations in the world, which
use to provide their product and services in retail industry of clothing sector. Also, they use to
serve retailing of some food products also. It is a British organisation, which provides their
services in different parts of world. It was founded in 1884, by Michael Marks and Thomas
Spencer at Leeds, United Kingdom. Headquarter of organisation is at Westminster, London.
In 2010, Mark and Spencer try to expand their business in New Zealand. It is one of the
richest nations in the world, which is very much famous for its beauty and luxury products.
People living their love to use those products of good quality and also which are luxury.
Therefore, it is the reason that almost all the huge organisations of world, which use to
provide luxury products, are performing their operations in New Zealand (Kirton and
Trebilcock, 2017). That’s why, Mark and Spencer make decision to provide their products
and service in New Zealand by 2010. But there they use to face huge problem which resist
them from opening their physical stores in nation. The issue faced by them while expanding
their in New Zealand was that, their competitors which were already performing their
business in nation came to know about the strategies that Mark and Spencer was planning to
adopt. These strategieswere designed after making marketing study and also by studying
different factors which were important for Mark and Spencer to start business in new nation.
But, by some internal issues, information about these strategies and plans of Mark and
Spencer get leaked to their competitors in New Zealand, which has helped their competitors
to make alteration and modifications in the strategies used by them, so that the plans of them

become much better than the plans of Mark and Spencer. Along with this, these strategies
helped competitors of Mark and Spencer in gaining knowledge that what are their weak
points which can help other organisations to take benefit of them. After getting information
about the strategies of Mark and Spencer, their competitors make their strategies which seems
better than of Mark and Spencer and also which helped them in providing the products and
service at lower cost than Mark and Spencer (Hamilton and Webster, 2018). This all lead the
Mark and Spencer to stop their launch and opening of physical stores in New Zealand and
also cause to huge loss to them. After this, Mark and Spencer make another strategies, where
they use to launch their products and service via online medium in New Zealand. This has
helped them in providing their products and service in New Zealand without opening a single
physical store and also helped them in attracting ample number of customers towards the
products and services offered by them. Using online medium, the promotion and
advertisement of products, service and offers become very much easier and also faster for
them.
2. Discussion of the allocated business environment.
New Zealand is a small island country which is located in south western of Pacific Ocean.
Total area of New Zealand is about of 2,000 kilometres and is very rich in natural resources.
Along with this, it is one of the most famous tourist continents in the world. These are factors
along with several another, which has helped New Zealand in making their business
environment very much friendly for different business sectors to perform their operations.
Also, this has helped the nation to attract ample number of multi national organisations to
invest in nation and perform their functioning in different parts of them, so that they can
make some profits and also can grow their business. For analysing the business environment
of New Zealand it is important to make PESTLE analysis in favour of Mark and Spencer,
which is as follow :-
1. Political :Political factors are the factors which is very important for an organisation
that are performing their functions and operation in any nation (Crane, Matten and
Spence, 2019). As stability in political conditions help them in making strategies
which are good for their future and can give them benefits in future. Where as,
instability in political conditions of a nation lead to create issues for organisation, as it
become very tough for them to make strategies for their future and also it is not
mandatory that if they make strategies for their future will work or will give some
profits to them. New Zealand is one of the nations in the world, which have very

much stable political conditions, and also provide environment which is good for
organisation to perform their operations. This will help Mark and Spencer to make
strategies which will help them in generating benefits in future.
2. Economical :For an organisation, it is very important for them to analyse the
economic conditions of the nation in which they are going to start their business and
other functionalities. As any organisation, start their business and other functions so
that they can get some profits and also can generate some revenue or economy by
that. Economic conditions of New Zealand is very good for a business, as the market
place allow organisations to get some profit and also help them in development. Mark
and Spencer have to make strategies according to it, so that they can generate huge
amount of revenue and profits for them.
3. Social :As success of a new organisation depends on the support and reaction of
society on the products and service offered by them ( Zoogah, Peng and Woldu,
2015). Therefore, it becomes very much essential for them to study need of society
and provide their products and service according to it only. As people of New Zealand
love to buy and enjoy luxury products offered to them and also love to try new
products and service. This will help Mark and Spencer in getting a good customer
base, by which they can get a string start in new market, which is very important for
an organisation.This also help them in generating good revenue and profits, so that
they can develop their business in nation. Along with this, it help them in making
number of loyal customers from starting of business.
4. Technological:Technology is one of the most important factor in modern era of
business, as this help an organisation to make their products and services more
appropriate and accurate. This also helps them in increasing the efficiency in
production of products and service and along with this, it help in decreasing the cost
of an organisation (Lin, 2014). New Zealand is of the technological hub of the world,
and technological development there is very fast and big. Along with this, people
leaving there love to enjoy new and unique experiences with technology in different
stores. Therefore, for Mark and Spencer it become very much important to use new
and latest technologies in their outlets, so that they can give some extra ordinary
experience to their customers. This will help them in increasing the number of
customers visiting their outlets and also help them in increasing their profitability and
revenue.

5. Legal :Every nation have their own legal structure which use to make rules and
regulations for nation and for different bodies working in business environment of
nation. Therefore, for an organisation it has become very much essential to make their
strategies and plans according to those rules and legislations, so that they can perform
their operations according to govern of that nation. New Zealand use to provide ample
number of opportunities to business organisations so that they can grow and develop
themselves. Along with this, they have ample number of legislations for these
businesses, which they have to follow, so that functionality of them become ethical
for public and nation also (Del Giudice and Maggioni, 2014). Mark and Spencer have
to study all the legislations of nation, so that they can make strategies regarding
employees, society and other according to it. This will help them in performing in
ethical manner, by which the goodwill of them become positive and also help them in
keeping themselves safe from any type of legal problem.
6. Environmental :Along with legal rules and regulations, every nation have their own
environmental rules and regulations which organisations have to follow, so that they
do not make any type of loss to environment of nations. These structural bodies use to
monitor different functions and operations of organisations working under their
business environment. This help them in gaining information that which organisation
is not performing according to their rules, so that they can take required action against
them. New Zealand is one of the most beautiful nation in the world, it is because of
the environmental laws of them is very strict. Mark and Spencer have to make their
strategies and plans according to these laws and regulations, so that they can perform
their operations in environmental friendly manner. Along with this, it helptehm in
making positive image of them in society, by which their customers base can get
improved (vomBrocke, Zelt and Schmiedel, 2016). Along with this, by not following
these rules and regulations, they can damage their goodwill in market place and this
can affect their financial conditions. This all is because the penalty on ignoring these
rules is very high and can be so expensive that they cannot bear that.
3. Application of an appropriate analytical approach.
Mark and Spencer is one of the biggest organisations of Britain which use to provide
their products and services in retailing of clothing products. They use to serve customers
from different parts of world, and also have outlets in ample part of world. For expanding the
business in New Zealand, which use to provide a business environment for organisations, so

that they can perform their operation effectively and also can gain some profits. Along with
this, it is very important for Mark and Spencer to analyse their power and weaknesses, so that
they can make appropriate strategies which will help them in expanding their business in
New Zealand. For completing this task, they can use Porter’s five force model, which is as
beneath :-
1. Bargaining power of suppliers :Mark and Spencer is one of the biggest organisation
in the world which use to provide their products and services in retail industry of
clothing and food products. Therefore, they have a long list of suppliers which use to
provide raw materials to them for producing different products and services. Along
with this, there are ample number of suppliers which are ready to provide material to
them. This help Mark and Spencer to lock to deal with their suppliers at their
conditions, which reduces the bargaining power of suppliers for them.
2. Bargaining power of buyers :There are ample number of customers from different
parts of world, which use to buy the products and service offered by Mark and
Spencer (Murray, Skene and Haynes, 2017). Along with this, they have huge number
of loyal customers which love to buy the products offered by them. This all help them
in serving several customers in their daily working. Also there are ample number of
organisations, which use to provide same products as Mark and Spencer use to. But
this also is not able to affect the performance of them and always help in keeping the
bargaining power of customers lower for them.
3. Threat of Substitutes :Mark and Spencer use to provide their products and service in
retailing of cloths and food items. Along with them, there are ample number of
organisation, which use to provide same products as Mark and Spencer use to
provide. This helps their customers to get different options from which they can buy
products and services that can fulfil their needs. Along with this, there are ample
number of products available in market which are better than the products of them.
These all has made the threat of substitutes very high for the products offered by
them.
4. Threat of new entrance :Clothing and food industry is very big and it has huge list of
products offered by different organisation. Mark and Spencer is one of the leading
organisations of the world and use to perform their operations at very huge level.
Also, it is not easy for any one to start their business in this industry, as there is huge
list of documentation which is required for that person to complete it. Along with this,

completing this is not very much easy for any one, and also Mark and Spencer use to
perform their operations at huge level. For a new entrance it is not easy to start their
business at this level to compete them, as the risk is very high and it does not guaranty
that business get success (Cohen and Kietzmann, 2014). This help Mark and Spencer
to have the threat of new entrance as very low.
5. Rivalry among existing competitors :Mark and Spencer is one of the biggest retail
chain in the world, which use to provide their services in different parts of world.
Along with this, there are ample number of which use to provide products same as
Mark and Spencer use too. The huge organisations which use to provide products
same as them are ZARA, H&M, TESCO and other. Therefore, the rivalry among
existing competitors are very tough for Mark and Spencer.
CONCLUSION
From the above information, it has been concluded that, Mark and Spencer is one of
the biggest of the world. In 2010 they want to expand their business in New Zealand, but due
to leakage of their internal information, there competitors improve their strategies and stop
Mark and Spencer to enter in market. Along with this, it is very important for an organisation
to study market environment and also to implement analytical tool in appropriate manner.

REFERENCES
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