Analysis of M&S's Global Business Environment During Pandemic

This report provides a detailed analysis of Marks and Spencer (M&S) within the context of the global business environment, particularly focusing on the impacts of the COVID-19 pandemic. The report examines the strategic changes M&S implemented, including adjustments to its product portfolio, recruitment, operational processes, and market positioning. It applies key analytical frameworks such as Porter’s Five Forces, SWOT analysis, PESTLE analysis, and the product life cycle to assess the company's competitive position and sustainability. The analysis considers factors like the bargaining power of buyers and suppliers, the threat of new entrants and substitutes, and the impact of political, economic, social, technological, legal, and environmental factors. The report concludes with an assessment of the sustainability of the changes made by M&S and provides insights into the company's adaptation strategies during the pandemic. This report is a comprehensive overview of M&S's global business environment and its response to the challenges of the pandemic.

GLOBAL BUSINESS
ENVIRONMENT
ASSESSMENT 2

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Analysis of changes that the company has made in the last few months of pandemic...............3
Porter’s five forces.......................................................................................................................4
SWOT analysis............................................................................................................................6
PESTLE analysis.........................................................................................................................7
Product life cycle.........................................................................................................................7
These changes are sustainable or not...........................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global business environment is an environment that gives opportunity to all types of
businesses for running their business operations internationally or globally. A business which
works at the global market place has always required to make a specific plan for properly dealing
with factors which currently exists in the global business environment (Prapha, Wilshaw and
Ivanhoe, 2020). This report discusses the global business environment in the context of Marks
and Spencer (M&S). Basically, marks and spencer is a highly reputed UK based retail company
which currently serves at the global market place, headquartered in London, United Kingdom.
Currently the whole world is suffering from the corona virus (Covid 19) pandemic, and this is
why existing report discusses changes that the business has made in the last few month of this
pandemic.
MAIN BODY
Analysis of changes that the company has made in the last few months of pandemic
There are some key aspects of Marks and Spencer has been discussed below for showing
what types of changes has made by its upper management for effectively working in current
Covid 19 pandemic situation.
Product Portfolio and Strategy
The management of company never compromises with the quality of different products
and services, and this is why it follows all market trends to make its products very favourable
and satisfying for the customers. It uses TQM (total quality management) strategy of operations
management as well. For example; after corona virus pandemic, many people have started to
consume healthy food items, so that this company also has changed its practices and has started
producing food items to attract many customers in existing Covid 19 pandemic.
Recruitment strategy, people and culture
Still company is focusing in hiring various skilled and talented people in its workplace,
because it wants to gain huge competitive advantage by using its an effective workforce (Hardy

and Logan, 2020). On the other side, the management of company is successfully maintaining an
effective work culture for its various, people or employees, and this culture can positively affect
performance of its people.
Operational processes and systems
The Marks and Spencer not allows any person to entre in its stores and supermarkets who
has not wear the mask, so mask is compulsory now to each stakeholder of M&S while visiting at
the workplace of company. The company is fully following all guidelines of local government
for running own operations in current time period.
Mergers, demergers and acquisitions
The has not taken any step towards merging its venture with another one, because this is
not right time. According to management, currently economy of many companies faces
slowdown, so M&S wants to stay with its previous mergers and acquisitions. However, company
will may use mergers, demergers and acquisitions strategies according to present business
situations.
Market and competitive positions and stakeholder engagements
There is huge competition in the global retail industry, and this is why M&S is planning
to use the product differentiation and competitive pricing strategies for maintaining its an
effective position in market place by gaining excellent competitive advantage (Ait, 2020). The
management of has fully developed its communication skills, because these skills will help M&S
for properly interacting with all stakeholders in order to create great stakeholder engagement.
Porter’s five forces
This is very helpful tool or framework to different companies and businesses, because it
enables to know the existing market competition of any market place. This tool generally
discuses about five key forces of market place which can affect a business in both ways,
positively and negatively, in which all five key forces of this framework has been discussed
below;
Bargaining power of buyers

Due to the corona virus pandemic, currently bargaining power to buyers is low, because
M&S’ most products and services mainly fulfils the prime of needs of customers, but because of
lockdown rule they were not able to buy different essential products and services from the
company. According to the Maslow’s theory of needs, there are needs of air, clothes, foods,
accommodation etc. are some key or prime needs of customers, in which M&S offers clothes,
food and beverage items of millions of people in the world, but due to lockdown, people was not
able to buy various products and services from the company (Lee and Vachon, 2016). The high
demand of products and services of M&S, low supply of company has made bargaining power of
customers very low, and this all has happened just because of corona virus pandemic.
Bargaining power of suppliers
After the corona virus pandemic, the bargaining power of supply within the retail
industry become very higher, because demands of retail products and services is increasing day
by day, but existing retail ventures are not able to fulfil this demand of customers on time
because of lack of raw-material supply. In the time period of Covid 19 lockdown, there was
production processes of many suppliers became completely closed, and due to this reason, many
suppliers are currently not able to timely supply their raw-material various retail companies.
Threat of new entrants
Threat of new entrants is also low for the Marks and Spencer, because in the recent few
months of corona virus, there was many retail shops and stores become permanently closed.
Reason is, there are existing retail businesses not gaining appropriate profit margins right now, in
which if any person or entrepreneur wants to start a new business by entering in the retail
industry then it will conduct the research about this industry, and then it will be found that
already there is huge competition in the retail industry, so it can may change its mindset of
entering in this industry.
Competition in the industry
Competition in the retail industry is high right now, and this is why upper management of
M&S is putting its huge efforts for dealing with market competition challenge as well in the
current pandemic time period (De Angelis, 2018). Basically, retail industry is one of the leading

industries in the United Kingdom, because most ventures or businesses of this country works
under this only this industry. There are Tesco, Morrisons, Iceland Foods, Asda, Aldi etc. some
other major retail businesses in the United Kingdom which are giving very tough competition to
M&S right now. In this situation, upper management of Tesco have to be some creative for
properly gaining huge competitive advantage in the market place.
Threat of substitute
Threat of substitute is low for the company, because there is no other industry exists in
market place which can fulfil the needs of prime or key needs of customers. For example; a
person cannot use other things instead of clothes to be protected from different seasons, so a
person or customer has always required visit stores and supermarkets of M&S for buying such
things or products and services which are very essential to them.
SWOT analysis
This is very helpful tool in the terms of analysing internal business environment factors,
in which four key factors of this framework has been discussed below;
Strengths
Currently the M&S is highly reputed brand in the global retail industry, because most
people customers trust this brand because of its quality products and services (Polman and
Bhattacharya, 2016).
Weaknesses
The company is not able to use innovation skill properly, so it is not gaining appropriate
results as its competitor
Opportunities
Tesco. However, in current time period the company has great opportunity to increase its
profit margins by using e-commerce way of selling products and services, and upper
management of M&S is properly considering this way right now.
Threats

High market competition is the main threat of company, and this is why it should be
ready for dealing with this threat by using various productive business strategies.
PESTLE analysis
This is also a very helpful framework to various companies, because it projects the
impact of business environment’s six major factors, in which all six factors has been discussed
below;
Political factors: These factors are highly affecting to M&S rights now, because the government
of UK is taking this pandemic very seriously, and formulating various rules and regulations for
different businesses to fight against Covid 19 (Ehgartner, 2020). These factors influence to M&S
for considering all rules and regulations of government.
Economic factors: Due to pandemic, the UK’s economy is facing slowdown, and this factor has
badly affected to sales ratio of company, because now people or customers believes in buying
only necessary goods and services.
Social factors: People in this country are very scared to visit market unnecessary, and also now
they are buying products and services from such businesses which has taken proper precautions
for this pandemic.
Technological factors: These factors will affect to company very positively, because by using
various modern and technological gadgets or tools, this business can simply enhance own
productivity and performance.
Legal factors: These factors can affect to M&S’ upper management for always considering all
legal and ethical considerations while running own business operations in market place.
Environmental factors: These factors affect to company for avoiding conduct those all
operations in own workplace which can negatively impact to the natural environment (Angeles,
2016).

Product life cycle
This is the tool or framework is generally used by different companies and businesses for
checking different life stages of their any product. Basically, this tool projects four key life cycle
stages which has been discussed below;
Introduction: The company provides food and beverage items to customers for many years, in
which due to corona virus, recently the management of company has innovated a new way of
packaging which is very favourable to protect consumer from the infection of corona virus
(Ponte, 2020). In this situation, the management have to introduce its wide range of well-packed
food and beverage items in selected market places.
Growth: This is the second stage which shows effectiveness of a new product in market place. In
this situation, when M&S offer its food and beverage products and services, then it can simply
grow in market place, because nowadays people wants to buy only such products and services
which are well-packed.
Maturity: This is the most profitable stage of a company’s product, in which when M&S will
start to offer it’s all food and beverage items in proper packaging, then it can quickly gain huge
profit, because now food or beverage items highly attracts customers in market place.
Decline: This decline stage is considered as the last stage of product life cycle, it means while
reaching this stage, the Marks and Spencer can face many challenges in market place relating to
competition (Borland and et.al., 2018). Basically, nowadays other retail ventures also have taken
steps towards offering their food and beverage items in proper packaging.
These changes are sustainable or not
When upper management of M&S was realised that this Covid 19 pandemic will badly
affect to entire market system, so it was taken different productive steps for making some
changes in its business environment for gaining sustainable profit margin in the current time
period as well. For example; nowadays people or customer are avoiding to buy products and
services from those companies and businesses which are not following guidelines of corona virus
in their respective workplace. They are not like to buy products from ventures which not offers
the facility of sanitizer in their workplace, and after considering these needs of customers, the
management of M&S has implemented changes in own workplace accordingly. On the other

side, this is corona virus pandemic has motivated to upper management of this retail venture for
knowing the importance of digital technology, because nowadays, many retail outlets have
started to sale their products and services online by using various online platforms. In this
situation, Covid 19 pandemic has influenced to M&S for changing its modes of product selling
(Skripak, 2016). For example; nowadays M&S has effectively provided its products and services
on both platforms, online and offline just because of corona virus pandemic. These all changes
which has made by the company are fully sustainable and these changes will give appropriate
outcomes to M&S in the future as well. This was really necessary to company for implementing
these all changes for gaining sustainable growth in this pandemic.
CONCLUSION
It can be concluded that upper management of Marks and Spencer have to be very active
and energetic for systematically dealing with the impact of corona virus. In this modern world,
still many WHO and other research agencies has not found an appropriate vaccine for overcome
corona virus infection. In this situation, this pandemic may go longer, and this is why changes
which has made by the M&S in its business operations are very helpful in order to gain huge
competitive advantage and profit margins in current pandemic time period as well.

REFERENCES
Books & Journals
Ait, L. T., 2020. Accessibility of goods and services during covid-19.
Angeles, R., 2016. Marks & Spencer’s RFID initiative: Laying the foundation for omnichannel
retailing. In Digitally Supported Innovation. (pp. 193-206). Springer, Cham.
Borland, H., and et.al., 2018. Creating theory for business strategies for sustainability and
climate change. Business Strategies for Sustainability. pp.65-80.
De Angelis, R., 2018. Business Models and Circular Business Models. In Business Models in the
Circular Economy. (pp. 45-73). Palgrave Pivot, Cham.
Ehgartner, U., 2020. The discursive framework of sustainability in UK food policy: the
marginalised environmental dimension. Journal of Environmental Policy & Planning.
pp.1-13.
Hardy, B. L. and Logan, T. D., 2020. Racial economic inequality amid the COVID-19 crisis. The
Hamilton Project, Essay. 17. p.2020.
Lee, K. H. and Vachon, S., 2016. Business value and sustainability. Palgrave Macmillan UK.
Polman, P. and Bhattacharya, C., 2016. Engaging employees to create a sustainable
business. Stanford Social Innovation Review. 14(4). pp.34-39.
Ponte, S., 2020. The hidden costs of environmental upgrading in global value chains. Review of
International Political Economy. pp.1-26.
Prapha, A., Wilshaw, R. and Ivanhoe, H., 2020. From Risk to Resilience: A good practice guide
for food retailers addressing human rights in their supply chains.
Skripak, S. J., 2016. Fundamentals of business. Virginia Tech.