Business Environment Report: PESTLE and SWOT of Marks & Spencer

This report analyzes the business environment of Marks & Spencer (M&S), focusing on the positive and negative impacts of the macro environment. The analysis is structured around the PESTLE framework (Political, Economic, Social, Technological, Legal, and Environmental factors), providing spe...Read More

Business enviroment

P4 Identify the positive and negative impacts the macro
environment has upon business operations, supported by specific
examples.
The positive and negative impacts the macro environment
has upon business operations
Political (P) : Political factors are those factors that are
made, run and changed by the government. These factors
show the level of anticipation by the government in different
trades. Generally political factors includes trade policy,
labour law, trade restriction, tariffs, and political stability.
The government has its own set of polices and rules which
company has to follow. Mark & Spencer is the retail
company and provide clothing, food products, luxury. The
positive impact of political factors is they provide security to
the company helps to maintain their repo in front of the
customers.

Cont..
Economic (E) : Economic factors are determinants of an
economy's performance that directly impacts a company and
have long termed effects. For example, a rise in the inflation rate
of any economy would affect the way companies' price their
products and services. Economic include inflation rate, interest
rate, foreign exchange rates. Like inflation is the rate at which
prices in the economy are increasing. If inflation rate is low
company enjoys their profit at good demand. Otherwise, inflation
can reduce the purchasing power of customers. If inflation rates
are increase the rates of product and services of Marks & Spencer
will automatically increase and affect to the customers vis versa

Cont...
Social (S) : Social factors are fundamental that one cannot
directly control but they definitely affect the company. To
increase the income Marks & Spencer should adopt technologies
and strategy which is according to the customers needs and
wants. If they fail to reach customers wants so, it would be
directly effect on the customers. Social factors are totally
depends on the customer satisfaction which is necessary to
fulfilled.'
Technological (T) : Technology factor helped businesses operate
efficiently in competitive markets such as retail as modern IT
systems help increase productivity & lower costs.

Cont...
Legal (L) : Legal factors are those factors which government
apply on the businesses. These factors include Human safety,
consumer rights, labour rights. Positive impact of this factor is
Mark & Spencer get benefits from government for adopting full
rules & regulations. On the other if they neglect these rules so in
that case government take legal actions against the company
which is not good for the future.
Environmental (T) : It is to be noted that M&S is one of the most
sustainable brands. There is two environmental factors first is
internal and external factor internal factors include within the
organisation and external factors include outside the organisation.

P5 Conduct internal and external analysis of specific
organisations in order to identify strengths and weaknesses.
Internal and external analysis of Marks and Spencer
organisations in order to identify strengths and
weaknesses.
Strength (S) : Mark & Spencer is one of the most powerful
retail brand with a top of the mind recall. Mark & Spencer is
the giants of the UK's street is known by everyone in the
market for the quality and the brand value is high as the
customers who go to the high street prefer to go to marks
and Spencer's as they can finish the whole shopping in a
go. On the other hand Mark & Spencer has a wide variety
of products for examples luxury products, clothing,
vegetables. It has large number of stores and large top
brands like autograph, indigo, limited collection Big&tall. So
these are the strength of Mark & Spencer.

Cont..
Weaknesses (W) : Weaknesses is always become a strength of
others. Same apply in the companies as well. Mark & Spencer is
being a popular brand, they need to protect their brands from
competitors and always ready to adopt challenges.
Opportunities (O): Opportunities of Mark & Spencer is that they
can adopt new technologies and give good quality of product and
services to the customers they also can beat the competitors
benchmark by using the best useful tools & techniques. Identify
the current trends and fashion and planned accordingly. Mark &
Spencer also expand their branches all over the places which all
increase the business.

TWOS matrix
TWOS matrix
SO
'Maxi-Maxi' Strategy
Mark & Spencer can make their
strength into opportunity by using new
strategies techniques for example
Professional team members can
create new ideas new market
expansion and earn good rate of
return.
ST
'Maxi-Mini' Strategy
Mark & Spencer can use their
strategy that use strength to minimize
threats. Example Mark & Spencer has
a well known brand this is the most
prominent strength they can use this
strength to avoid external issues.
WO
'Mini-Max' Strategy
Mark & Spencer can use the
opportunity that minimise their
weakness by increasing the price of
product in during high demand
WT
'Mini-Mini' Strategy
Mark & Spencer can promote another
product and avoid fare of competition.
So that they use strategy to minimize
weakness and avoid threats.

References
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organizational design: a dynamic capabilities perspective.
Adeoye, A. O. and Elegunde, A. F., 2012. Impact of External Business
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quality on firm export performance in emerging economies: a contingency
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Zhang, A. and Huang, G. Q., 2012. Impacts of business environment changes
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Thank you