Marks and Spencer: Internal and External Factors Analysis Report

This report examines the internal and external factors that influence the performance of businesses, using Marks and Spencer as a specific example. The report begins with an introduction and then delves into internal factors, including strengths and weaknesses. It then explores opportunities and threats faced by the company. The report further analyzes external factors, employing the PESTEL framework to assess political, economic, social, and technological influences. The report highlights the impact of these factors on Marks and Spencer's operations and market position. The conclusion summarizes the key findings and emphasizes the importance of considering both internal and external environments for business success, referencing relevant academic sources throughout.

Internal and external factors
which impact on business

Table of content
 Introduction
 Internal factors that can impact business organization
● Weaknesses
● Opportunities
● Threats
 External factors that can impact business organization
 Economical factors
 Social factors
 Technological factors
 CONCLUSION
 REFERENCES

Introduction
Business concept looks better on a paper but may prove imperfect in the real world. There can be
several failures that can affect the business performance. In this report, company which is taken is
Marks and Spencer. Company was founded in the year 1884 which deals in retailing with a headquarter
in London.

● Internal factors that can impact
business organization
Marks and Spencer is the British multinational retailing company which was founded in the
year 1884. it has a headquarter in London. Company deals in variety of products and services
like home products, clothing and edible items.
Strength:
● Well experienced
● Multinational company
● Variety of products

Weaknesses
There are some of the weakness also of company which can decline its productivity. Company
needs to work on those weaknesses. These are perception of public- there is a perception of
people that company does not offer clothes to young people and teenagers (Ferreira and et.al.,
2020).

Opportunities
Opportunities: There are certain opportunities which a company can make advantage. There are
certain opportunities fir company like global expansion- as company is a Multinational
company which can opened various stores in other countries such as India, Russia, Indonesia
etc. by this company can increase their brand expansion.

Threats
Threats: Threats can be for the company is that there are certain competitors of Marks and
Spencer. These are Tesco, Sainsbury, Morrisons etc. of company will not provides quality of
work then it may be results in decreasing in competitive advantage.

● External factors that can impact
business organization
Analysis of external factors can be made through PESTEL
analysis. It can helps the company identification of all the
factors which can directly or indirectly affects the business
performance.
Political factors: Marks and Spencer is the biggest brand in
UK. As it is operating ,ore than 1300 stores in all over the
world. There are certain political factors which can impact the
business performance. Marks and Spencer is providing its
products in all over the world. For that it needs to maintain
contacts with other political governments to pass there
products freely bin other countries (Lysova and et.al., 2020).

Social factors
Social factors like changes in customer preferences and taste can affect the business
performance. As in context of Marks and Spencer, company wanted to expand its brand by
changing trends in the market. Customer purchase are influenced by social, personal and
psychophysiological changes in the market. As in relation with clothing brand, it is depends
upon the locality and geographic. Some of the competitors used a online payments facilities
in the market.

Technological factors
Technological factors: Technological factors such as
advance technologies can be used in the company. So
that there time consumed will be less and less efforts
should be made by employees of the company.
Company has announced Technology transformation
program me that enables company to make digital
business first and deliver their products online. This
helps them in getting order faster, and also attracting
customers. This becomes an opportunity for a company
to become digital in the market and attracts more
customers towards there products and services (Muñoz-
Bullón, Sanchez-Bueno and De Massis, 2020.).

Conclusion
From the above presentation, it has been concluded that Marks and Spencer is the
well established company in UK market. It has a large base of customers in all over
the world. It is using effective technologies to attract the customers. But there are
some internal and external factors which can affect the business performance.

References
Anzenbacher, A. and Wagner, M., 2020. The role of exploration and exploitation for
innovation success: Effects of business models on organizational
ambidexterity in the semiconductor industry. International Entrepreneurship
and Management Journal, 16(2), pp.571-594.
Bhatti, S.H and et.al., 2021. Internal and external antecedents of open innovation
adoption in IT organisations: insights from an emerging market. Journal of
Knowledge Management.
Ferreira, C and et.al., 2020. A new measure to assess external and internal shame:
Development, factor structure and psychometric properties of the external
and internal shame scale. Current Psychology, pp.1-10.