Report: Business Organisations and Environments - Marks & Spencer

This report provides a comprehensive analysis of Marks & Spencer (M&S), a prominent British retailer operating in a global environment. It begins with a company analysis, examining M&S's operations, market performance, and recent challenges, including the impact of political and economic factors on its clothing and homeware divisions. The report then delves into a PESTLE analysis, exploring the political, economic, social, technological, legal, and environmental factors influencing M&S's business strategies and operations. This includes an examination of trade policies, inflation, consumer trends, technological advancements, legal compliance, and environmental sustainability initiatives. Furthermore, the report applies Porter's Five Forces framework to assess the competitive landscape of the retail sector, evaluating the level of competition, threat of substitutes, threat of new entrants, and bargaining power of customers and suppliers. Finally, a SWOT analysis is conducted to identify M&S's strengths, weaknesses, opportunities, and threats, providing a holistic view of the company's strategic position and future prospects within the global market.

Business Organisations and
Environments in a Global Context

Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Company analysis........................................................................................................................1
PESTLE analysis.........................................................................................................................2
Porter five forces analysis............................................................................................................4
SWOT analysis............................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business organisation considered several aspects to make effective results for business
development. In this consideration, in global environment there are several activities has been
promoted by the business which help to increase its effectiveness (Toepfer, Zellner and
Kuhlmann, 2015). With this regard, present report based on the Marks & Spencer Supermarket
in Czech Republic which is well known of company of the world. They deal in different kinds of
products and services to attract customers from different nations. It is awarding with food and
stylish home-ware products in UK. For gaining insight information of the present report, it
covers company analysis, PESTLE analysis, and Porter five forces implementation.
MAIN BODY
Company analysis
Marks and Spencer is the Britain general retailer or supermarket business. They deal in the
different kinds of clothes, gifts, home-ware, etc. The company develop their operations and
functions from several years. In respect to develop effectiveness in the business, the chosen
company operating their functions. In this regard, company determine operating principles to
achieve desired results (Matikiti, Mpinganjira and Roberts-Lombard, 2018). In this way, value
also develops at affordable price to attract more customers. In order to make effective
functioning, following analysis consider from past several years' analysis:
Marks and Spencer increase their festival trade to make sure that they have attained
creativeness at workplace. In this regard, for clothing and homeware, they determines around
2.8% in last year. However, in last year due to changes in political stability and inflation, the
company get affected by clothing division which reduced around 1.2% for six months from 26
September. Retailer stated that there are around 40% of sales consider as the High Street retailer
around 0.2%. Hence, company trading condition was challenging. High level of promotions in
UK in first quarter mainly create major impact on the business results and outcomes.
Furthermore, in the second quarter decisions are also undertaken on the basis of full focus on
price sales and discount less that create major impact on performance. In addition to this,
conditions are also to difficult so that improvement in consumer confidence needed to focus on
the market of UK and other areas as well. The company stated that profit margin in food items
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also increasing around 2.85%. Therefore, it is important to look towards the strong competition
from other retailers who focused on improvement to boost the volume.
In the UK market, retailers are also take steps to focus on the direction with business
development and expansion. In this aspect, growth also considered online division which help to
attain more significant advantages in the world (Marks & Spencer clothing sales rise for first
time in four years, 2018). Marks and Spencer has grow its
PESTLE analysis
In the selected business enterprise, there are several operations and functions implemented
that assists to meet with the different aspects of management. In respect to implement Pestle
analysis, it describes framework of the macro environment which is scanning component in
strategic management. It helps to implement different elements of macro environment consent to
accomplish desired goals in depth (Szalai, Kiss and Toepfer, 2014). Following are certain factors
implemented in the business that assists to consider impact on the Marks and Spencer operations
in global consideration:
Political factor: Political factors are those which run and changed by the government of
country. These types of factors show level in which Marks and Spencer could able to trade in
global environment. Specifically, this sector also governing with different policies such as trade
policy, labour law, tariffs, etc. The chosen company unable to make changes as their own way
without government participation. They need to focus on the trade policy route which frames by
government. The company also make full support from the government regarding international
trade. In addition to this, VAT is the also term that known as the value added tax that consider by
government and paid by the businesses (Neubauer and Lank, 2016).
Economic factor: Economic factor defines as the economy performances of the country
which effect by business operations and functions. In this aspect, inflation rate create impact on
the products and services price. It also creates impact to make changes in the demand and supply
which implemented in the economy (Dowell, Gill and Hoddle, 2016). There are different
elements includes in the economic factors that create impact on the Marks and Spencer functions
and operations. It also consider foreign direct investment which depends on the certain industries
those undergoing with the analysis. In the UK, there is open economy so that fiscal and monetary
policies also managed properly. There is low inflation and strong finance in government which
impact positively on the business results and outcomes.
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Social factor: Social factors are also important fundamental aspect that not control by the
organisation. It could be create impact on the business and marketing strategies of the business.
In this way, social environment deal with the innovative activities and thinking about the people
as well. In the social factors trends and customers demand is the main element that creates
impact on the Marks and Spencer operations and functions (Szalai, Kiss and Toepfer, 2014).
Large proportion of the market generally deals in the food and clothing sector so that it is
important to look different range of the products and services which offered in the market. In
addition to this, clothing range which offered by the cited firm is conservative in nature. Hence,
they improve clothing line to increase customer base as well. However, recently customers of the
company generally decreasing because low price of the products create negative impact towards
the product quality.
Technology factors: technical factors also create positive impact on the business functions
and operations when advance results considered in it. In this way, the company able to
implement innovative results with effective IT system. It increases productivity and low cost as
well. In respect to implement advance technology, Marks and Spencer able to attract more
customers in the business with implement innovative and creative products in the business
environment (Pounder, 2017). The company adopted Wi-Fi to make effective functioning in the
business. In addition to this, they are also trying to attract more customers with implement more
stores in the enterprise. Through proving more information about different products, Marks and
Spencer able to move with more effective products and services.
Legal factors: There are several legal issues towards Marks and Spencer deal. Therefore,
risk also need to maintain to make effective functioning in the business unit. In respect to
implement the innovative results and outcomes, it is important to look towards the forced work
to make sure that effectiveness will be increasing in the business (Dowell, Gill and Hoddle,
2016). In this regard, Marks and Spencer admitted that suppliers consist their work very hard
with excessive overtime. As results, it will help to describe higher issues in the documentation
and condition issues in the chosen business. Along with this, it has been identified that the
business using workers hired through middlemen who work with forced in 7 days.
Unfortunately, it is wrong so that it is important to make solution to develop effective results at
workplace through pay taxes.
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Environmental factors: Moreover, Marks and Spencer need to make sure that their
operations and functions never create negative impact on the environment. This is because;
environmental safety is major concern for the business to develop effective results. In this aspect,
the company determines their operations with charges 5p per plastic bag that require to carrying
items. Furthermore, profits also generated from this aspect. They develop their major concern to
protect the environment with using plastic bags. Hence, customer’s development requirement to
make effective results in the business to carry different other consideration at workplace. Along
with this, they also trying to increase welfare policy and remove additional cost from the
business environment (Hamilton and Webster, 2015). Hence, supply chain also developed
through cut down carbon dioxide. They are also concentrated to make recycle in the products and
services to maintain effectiveness and reduce wastage of the material in the business.
Porter five forces analysis
In respect to determines market analysis, it is important to look towards the competitive
assessment. It is the effective consideration in which enterprise need to focus on the
contemporary aspects of the business management. As results, they are able to attain desired
results with implementation of different aspects (Peršič, Markič and Peršič, 2018). Competition
in the retail sector ascertain in extremely fierce. Problem is associated with the fact and trying to
diversify into the non-core aspects. It includes following elements that considered competitive
advantages in Marks and Spencer:
 Level of competition (High) : In the UK, there are several kinds of business consider
their operations and functions in retail aspects. Therefore, competition in this sector is
very high. Problem is also exacerbated in the business which faced by the Marks and
Spencer. There are different businesses exist that compete with the chosen enterprise
such as Asda, Tesco, Sainsbury, etc. With determines different strategies in the chosen
business, the company able to implement creativeness at business (Kirton and Trebilcock,
2017).
 Threat of substitute (High) : Furthermore, there are no substitute products exist in front
of the customers because there is low substitute prices available in front of M&S. Food
products of the chosen business environment never considered as substitute so that it is
not easily signified by the chosen enterprise. Hence, threat of substitute products is very
high in the nation (Mežinska, Lapiņa and Mazais, 2015).
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 Threat of new entrants (Low) : In the country threat of new entrant is low because there
is high capital requirement to implement functions and operations. In this aspect, it is
important to set up the successful results and outcomes in chain of stores (Strategic
Analysis of Marks and Spencers Plc (M&S), 2018). Market mature and entrants would
need to offer something so that difficulties could be reduced easily. There are major
retailers established with brand names and customers are also enjoyed presence of Marks
and Spencer which develop homogeneous market as well (Jain and Kaur, 2014).
 Bargaining power of customers (High): In the UK market, there is high bargaining
power because they have many options to purchase products and services. In this
consideration, it is important to the chosen business to look upon their needs and
requirement. This is because, with the help of maximum customers' attraction, the
company gain high profits and revenue as well. In respect to look towards the alternative
options, the company can develop their effectiveness in the business environment
(Charter, 2017).
 Bargaining power of supplier (low): In the UK, there are several suppliers exist so that,
Marks and Spencer has opportunity to buy raw material from them are convenient. In
addition to this, due to maximum availability of supplier better option could be selected
by the chosen business to deal with the innovations and effectiveness. Therefore, it will
help to attain desired results and maintain creativity as well. Furthermore, it also assists to
look towards the more profits and revenue as well (Talukdar, 2015).
In order to consider the above analysis, it can be stated that porter five forces help to assess
effectiveness in the business to make innovative functions and operations in the business
environment. In all over the UK areas, it will assist to look upon the some creative consideration
that helpful to focus on the targets and goals as well. Marks and Spencer also considered some
innovative and creativity so that it increases effectiveness within the business environment
(Polyviou, Pramatari and Pouloudi, 2016).
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SWOT analysis
In order to make effective functioning, Marks and Spencer need to concentrate on the some
creative consideration that assists to develop effectiveness in the business environment. In this
regard, SWOT analysis help to understand and shows internal business terms in which strength,
weakness, opportunities and threats ascertained. In respect to implement strategic ray to
implement facts and consider operations in tough competition. Therefore, following strength,
weakness, opportunities and threats:
Strength: Marks and Spencer consider different kinds of strengths which help to attain
desired results in the country. In this way, it is high recognition brand in UK so that each
customer knows about it (Grant, 2016). Due to brand value, customers are preferred to the
chosen enterprise. In addition to this, the company also perceive with wide variety of products so
that customers could easily purchase products and services as per their requirement at one place.
Furthermore, the enterprise has large number of stores and outlets in different areas of the world
so that wide range of products could be promoted by the company.
Weakness: However, there are some weaknesses in which one is bad publicity of the
company has one drawback. Marks and Spencer has wide product range brand but some people
have wrong assumption towards it. Management of the company need to implement strategies so
that they can easily attract different customers to produce effective results. In addition to this, the
chosen business also adopting some old techniques to consider their operations and functions.
Therefore, it reduces its effectiveness because in modern environment some modern activities
needed to promote effectiveness in the business (Stanley, Matthews and Davidson, 2017).
Therefore, it is essential to utilising the technology up gradation to increase efficient and
development as well. Apart from this, the company not implementing advance activities because
it increase cost of operations and manual working cost as well.
Opportunities: Expansion in the international market is the main consideration which assists
to look towards the development of business in effective way. In this aspect, the company can
produce more with international consideration. It will assist to look towards the new expansion
in international areas of the world. In addition to this, economies of the nation also developed
when they considered different operations and functions to look on the more than 300 stores in
all over the world. The company is also operating in franchising of different business
development to look upon the development consideration (Dartey-Baah and Ampofo, 2016).
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Furthermore, the company can also develop market segmentation which determines process of
splitting customers in the market for different groups. It helps to increase level of interest and
comparable set of needs to satisfy with distinctive marketing position. The chosen business has
opportunity to establish small business in the country so that development of activities will be
implemented at workplace.
Threats: In the UK market increased competition of the retail market create threat to the
chosen business. This reduces scope in the country and losing business outcomes and growth.
Due to the increased competition, retailer sector get affected by the different consideration
(Grant, 2016). For example, there are different competitors exist in front of Marks and Spencer
such as Asda, Sainsbury, Tesco, etc. All these businesses dealing in same consideration so that it
impact on the expanding business in new areas of the country.
CONCLUSION
From the above report, it can be concluded that Marks and Spencer consider different
operations and functions to look towards the development of business. In this aspect, they
consider regular activities and targets to make sure effectiveness will be increasing to focus on
the innovations and creativity. With the help of the PESTLE analysis, it can be stated that
company could expand their operations in international areas through focus on some policies and
regulations that are made by the country’s government.
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REFERENCES
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Szalai, M., Kiss, J. and Toepfer, S., 2014. Simulating crop rotation strategies with a
spatiotemporal lattice model to improve legislation for the management of the maize pest
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Matikiti, R., Mpinganjira, M. and Roberts-Lombard, M., 2018. Application of the Technology
Acceptance Model and the Technology–Organisation–Environment Model to examine
social media marketing use in the South African tourism industry. South African
Journal of Information Management, 20(1).
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Springer.
Pounder, J., 2017. Enterprise risk management in an aged care organisation. Governance
Directions, 69(9), p.532.
Hamilton, L. and Webster, P., 2015. The international business environment. Oxford University
Press, USA.
Peršič, A., Markič, M. and Peršič, M., 2018. The impact of socially responsible management
standards on the business success of an organisation. Total Quality Management &
Business Excellence, 29(1-2), pp.225-237.
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trade, environment and social governance. Routledge.
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sustainable and socially responsible organisation. Total Quality Management &
Business Excellence, 26(5-6), pp.469-481.
Jain, R. and Kaur, S., 2014. Impact of work environment on job satisfaction. International
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Charter, M. ed., 2017. Greener marketing: A responsible approach to business. Routledge.
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Talukdar, A., 2015. Integration of competency model to human resource systems: its impact on
organisation performance and human resource function. Journal for Global Business
Advancement, 8(1), pp.40-58.
Polyviou, A., Pramatari, K. and Pouloudi, N., 2016. Cloud Adoption Factors in a Specific
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Grant, W., 2016. Cross-National Organisation of Business Interests Project. The Effectiveness of
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Stanley, T., Matthews, J. and Davidson, P., 2017. Dimensions of Employee Engagement in a
Global Organisation. In Academy of Management Proceedings (Vol. 2017, No. 1, p.
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Online
Marks & Spencer clothing sales rise for first time in four years, 2018. [Online] Available
through: <https://www.theguardian.com/business/2015/apr/02/marks-spencer-clothing-
sales-rise-for-first-time-in-four-years>.
Strategic Analysis of Marks and Spencers Plc (M&S), 2018. [Online] Available through:
<https://writepass.com/journal/2012/12/ms-and-modifies-its-business-strategies/>.
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