Detailed Analysis of Marks and Spencer's Business Environment Report

This report presents an analysis of Marks and Spencer's (M&S) business environment, as requested in the assignment brief. It begins by defining the business environment and its importance, followed by an exploration of both internal and external factors influencing M&S. The micro-environment is examined using Porter's Five Forces model, assessing competitive forces within the UK marketplace. The macro-environment is analyzed using the PESTLE model, considering political, economic, social, technological, legal, and environmental factors, with specific examples related to the impact of COVID-19. The report also includes a SWOT analysis to assess the strengths, weaknesses, opportunities, and threats faced by M&S. The conclusion summarizes key findings and the references used are listed at the end.

Your Name and Student ID
Analysis of [Marks and Spencer]’s Busines Environment

What is the Business Environment?
Definition-1 Business environment is basically define as sum or collection of different internal as
well as external factors such as consumer needs, expectations, employee, management, supplier
and government.
Definition- 2 it refers to the external factor and institution that are usually beyond control of
enterprise and directly affecting on the business performance of operational activities.

Importance of the Business
Environment
• M&S brings both opportunities as well as threat in M&S enterprise
• Business environment will help for M&S in identifying the business planning of M&S in context of
decision
• It helps to find the competitive level of M&S in marketplace.
• To expand the M&S enterprise through efficiency of business environment.
• Adoption of efficient business environment by M&S will fulfill the needs of a consumer

Types of Business Environment
Internal
External –
micro- and
macro-

Micro-Environment of [M&S] –
Competitive Forces
• It is based on the holistic strategy framework or tool that make a strategic decision away from just
analysing current business competition.
• By using porter’s five force model, it is analysing the competition level in UK marketplace. M&S
has been used the Porter Five force model that help for building a sustainable competitive
advantage.

Micro-Environment – Continued
• Bargaining power of Buyer- it is higher the bargaining power of buyer in M&S because
potential consumer can easily switch from one brand to another. M&S is premium brand
which has been fixed the price or cost of products. For example- During Covid-19, it is
likely to slow down UK economy, cut the price or cost and always focused on the
consumer needs.

Macro-Environment of [M&S] –
Wider Environment
Pestle analysis

The Macro-Environment – Continued
• Political Factor- this type of factor is affecting M&S, one of the positive aspect of political factor is
that modern-day politics are free trade, which has been established coordination between
different countries. Moreover, Due to COVID-19, political factor is huge impact on the M&S
operations. Especially in term of trade regulations, tariffs but many possible result or outcome are
less than its idea for UK retailers.

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The Macro-Environment – Continued
• Economic Factor- this type of factor is related to the economic aspect which directly affecting
M&S. price has become consider as big factor in M&S but last few decade have identified the
various budget retailers in UK. Therefore, different competitors are stealing away market share
from one brand to another. Due to COVID-19, it is majorly affecting the M&S business while
reducing the economic condition or situation. Many consumers are avoided to purchase items.

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Macro-Environment of [M&S] –
Wider Environment
SWOT analysis

Conclusion

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References
• Nudurupati, S.S., Garnego, P. and Bititci, U.S., 2020. Impact of the changing business environment
on performance measurement and management practices. International Journal of Production
Economics. p.107942.
• Opeyemi, I.S. and Ajeh, D.O., 2020. The Entrepreneur and Effective Conflict Management in a
Business Environment. KIU Journal of Humanities. 5(3). pp.83-90.