Analysis of Internal and External Business Factors for Marks & Spencer

This report examines the internal and external business factors affecting Marks & Spencer (M&S). It analyzes the impact of changing customer demand, international business opportunities, and rising competition. The report uses SWOT and PESTLE analyses to evaluate the strengths, weaknesses, opportunities, and threats faced by M&S. It also explores the company's corporate social responsibility initiatives, including employment generation, economic development, and sustainable development practices, and how these impact the external environment. The analysis covers the effects of external factors on business activities and the impacts of the business on the marketplace, offering insights into M&S's strategies for adapting to market changes and maintaining a competitive edge. The report highlights M&S's efforts in delivering innovative products, addressing environmental concerns, and contributing to economic and social progress.

INTERNAL AND EXTERNAL BUSINESS
FACTORS

Business environment involves both external and internal
business factors wherein business needs to formulate different
strategies in order to make adaptable changes of the changing market
demand in the business activities. Wherein the internal environment
factor involves internal management of the business and everything
pertaining to the business functioning. Whereas external business
environment includes competitor, market demand, political framework
and others. In the context of Marks and Spencer which is a global
organisation, found in the year 1884 by Michael Marks and Thomas
Spencer, headquartered in London, UK. It delivers products and
services including apparels, banking services, food services, home
furnishing and improvements products. This report covers the effects
of the external business factors upon the business and the impacts of
the business activities on the marketplace.
Employment generation
With 78000 employees in Marks and Spencer, UK. The company deliver great
opportunities towards the employment generation in the market place.
Economic development
Marks and Spencer generated revenue approx. 10.2 billion British pounds in the year
2020, which shows the contribution of the company towards the economic
development.
Sustainable development
Sustainable development is simply the concept of optimizing the use of resources and
focusing on human development by taking different erasures that contributes towards
justice, poverty elevation, environment protection, climate change. Marks and Spencer
focuses on addressing these concerns especially different environmental protection
measures that includes recycling of waste, reducing the use of plastic, bio degradable
packaging and others.
In order to evaluate internal and external business factors and their
impact, SWOT analysis is conducted in order to support the
discussion.
Strengths
Marketing offerings
Marks and Spencer delivers innovative products and services in
accordance to the current market demand, the company work for
bringing continuous changes to differentiate the offerings of the
company in the market place and attain competitive advantage.
Weaknesses
High prices
High prices of the products and services demotivates those customers
who are not willing to pay high prices even company which
negatively affects the profitability of the business.
Changing customer demand
It is difficult to identify the current market demand due to the changing
customer preferences and growing market trends, thus, it becomes difficult to
responds to different consumer changes and trends and deliver right market
offerings that satisfies the current customer preferences.
Opportunities
International business
The international presence of Marks and Spencer helps help the business to
achieve growth and stability with high profitability and market share, renders
financial stability and global image in the marketplace.
Threats
Rising competition
With emerging competition in the marketplace, wherein the customers find
substitute for each products and services, Marks and Spencer works on
improving quality and bring innovative changes that to build differentiated
products in order to cope up with the exiting market competition, thus, it is an
important threat that can’t be ignored, Marks and Spencer analyses the
competitive strategies and their position in the market. Competition impacts
the business in a negative way, that results in loss of t sales and profit margin
of the business.
Introduction
Effect of external and
Conclusion
In a nutshell, it can be concluded that different factors in the external and internal
business environment affects the performances of the businesses. In order to support
the information about identifying the internal and external business environment
analysis PESTLE analysis and SWOT analysis for evaluating the internal factors is
being conducted which determines the impacts of the factors on the business
performance. The above report also determines how business affects the external
environment which involves corporate social responsibility, economic development,
employment generation.
REFERENCES
Akhmetshin, E. and et.al.,2017. Analysis of innovation activity of
enterprises in modern business environment. J. Advanced Res. L. &
Econ.. 8. p.2311.
Gaspar, J. and et.al.,2016. Introduction to global business: Understanding
the international environment & global business functions. Cengage
Learning.
Saleem, S., 2015. BUSINESS ENVIRONMENT, 3/e. Pearson Education
India.d
Corporate social responsibility
Corporate social responsibility is an important tool that helps the
business to develop and maintain the corporate image in the
marketplace, wherein the customer feels reliable and stay loyal to the
business for long. In order to develop the corporate social
responsibility, Marks and Spencer render charity to the charitable
organisation, promotes employee welfare in the organisation,
environmental campaigns in order to aware the people about the
measures that needs to implement in order to address the rising
environmental concerns.
Organisational impact on the
external environment