Report on the Contemporary Business Environment of Marks and Spencer

This report offers a comprehensive analysis of the business environment impacting Marks & Spencer (M&S). It begins with an introduction to the business environment, emphasizing the influence of internal and external factors. The report examines economic, cultural, and natural environments, highlighting their impact on M&S's operations and strategic decision-making. It delves into the effects of Brexit on the UK economy and M&S's performance, including challenges like recession, high unemployment, and reduced consumer spending. The report further explores the cultural environment, including changing consumer preferences, and how M&S adapts through product diversification, store expansion, and online presence. The natural environment section discusses M&S's commitment to sustainability, resource management, and eco-friendly practices. The report incorporates PESTLE and SWOT analyses to evaluate the political, economic, social, technological, legal, and environmental factors, along with the strengths, weaknesses, opportunities, and threats affecting M&S. The report concludes by summarizing the key findings and implications for M&S's future strategies in a dynamic business landscape.

Contemporary business
environment

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
Business environment..................................................................................................................3
Cultural environment...................................................................................................................4
Natural environment....................................................................................................................5
Pestle Analysis ............................................................................................................................7
SWOT Analysis...........................................................................................................................8
CONLUSION..................................................................................................................................8
RFERENCES.................................................................................................................................11

INTRODUCTION
Business environment is an analysation of internal and external factors of environment
that effects on smooth functioning of business. Business environment shape the behaviour of
selected organisation by impacting on its functioning. It includes economic, culture and natural
factor in environment that impact on functioning of business. Economic and Non economic are
two business environment in which Marks and Spencer operates its business. Economic
environment includes economic condition, policies and system of country that impact on
operation of M&S in the industry. On the other hand non-economic environment refers to
natural, demographic, legal, social, political and technological factors in the environment.
Natural resource are limited in nature so needed to be protected by company for effective
operations of business. Business is affected by natural factors such as availability of natural
resource, location, weather and climate of country and topographical factors. Trade between
countries is important as it helps in effective utilization of scare resource for achievement of
organizational goals. Companies can expand its business operations by understanding global
environment. Due to Brexit UK economic is facing situation of recession that is low disposable
income and high employment rate. Thus, all such impact on performance, productivity and
profitability of M&S. It impacts on decision-making of company as due to unstable political
situation and high employment company has to reduce cost of its products to attract large
customers. Company is able to expand its business by considering various internal and external
factors of environment that impact on its functioning. This report explains about business
environment and its various factors that impact on functioning of business. It also explains
function of market economy and government intervention in the operations of organization. This
report also describe about various benefits of trade between countries such as increase in
employment, availability of resource and enhance productivity of companies to UK. It evaluates
and analysis impact of European Union on business operations and import and export of country.
TASK 1
Business, cultural and natural environment has large impacts in shaping the behaviour of
organization,its position in market share and how it arrests the customer segments in highly
volatile business world where new companies are emerging every day. Business environment
consists of economic environment and non-economic environment where various factors such
economic conditions of country, policies which regulate business in country and availability of

various sources (Kasemsap,2020).All these factors have direct bearing on M&S business
structure which is one of the biggest retailer clothing brand in UK and its global performance
among other countries where it has large number of clothing stores. Global business managers
have huge responsibilities to increase company performance level according to volatile business
environment, expand its business scale overseas into new countries. It is imperatively important
for companies to build operational structure strong and dynamic with changing cultural
environment and social standards. Natural environment is also an important area of concern for
companies as changing climate changes have high implications on working structure for long
term growth in market share.
Business environment
Global business environment is going through dynamic changes with new companies and
brands coming up on global platform with innovative technology, advanced fashionable features
according to changing customer preferences. Countries have large benefits in trading with each
other and enhancing its partnerships with other brands globally to occupy large market share
percentage and reach new segments of customers. M&S organizational behaviour is highly
impacted due to global business environment where company tends to take corporate strategies
to increase global expansion and deal the impacts of European union on business operating in
countries of Europe positively (Newman, Rand, and Trifkovic, 2020). Economic environment of
UK is going through a tough phase where the slowdown and economic crisis due to partition
from European union has brought large implications on country performance levels worldwide.
M&S organizational behaviour plans to implement the operational structure of company with
high efficiency performance standards to reach set financial foals by taking certain business
decisions which are as follows-
 M&S has planned its business structure operation into new countries where there are
large growth potentialities to reach untapped market share globally. It is one of the
biggest retailer clothing brand rooted in UK where company has large share of
contribution in country economy share. Countries face large benefits from business trade
overseas and companies have large pressure due to increased competitiveness and high
consumer preferences (Le Nguyen,2020).
 European union has large implications on business operating in EU countries as the
business structures have been highly impacted due to changed economic situations, taxes

and increased tariff barriers for companies. M&S plans to operate strategies where the
financial goals of company are not hurt and performance standards can be enhanced to
serve target customers with high efficient quality products. Management teams of
company plan to incorporate leaders with contingency working style to take quick
decisions and bring high productive levels from employees working in company
(Davidson, Hauskrech and von Hagen,2020).
 Market economy has large effect on business environment where company decisions
regrading investment, production and distribution are influenced by price signals created
by forces of demand and supply. M&S due to changing economic environment of UK
and changing business scenarios globally with volatile market economy fluctuations, has
taken strong business decisions to maintain strong balance in achieving financial goals.
Cultural environment
Cultural environment has large impact on company performance levels and its
organizational behaviour which varies according to changing factors as increase customer
preferences and lifestyle changes. Customer market share has been seeing largely changing due
to high volatility in cultural environment where preferences and needs of customers has been
increasingly changing. Cultural changes in UK economy has lead to wide implications on
companies working structure where it becomes hard to analyse the volatile paradigms, and bring
management reams to implement new changes efficiently to reach production goals (Duan, Cao
and Edwards,2020).
 M&S has brought huge changes in all clothing stores by bringing on more fashionable
apparels, variety of products and services and more comfortable quality standards for
people(Atiku and Fields,2020). Company has diversified in researching new trends of
fashion for customers and enabling wide portfolio of high quality goods for consumers to
enhance their shopping experience. There is high focus on developing competitive
fashionable standards in clothes by company due to changing business world and volatile
consumer preferences. Company focuses on producing innovative products and clothings
where new fashionable sense is highly taken in mind to reach consumers effectively.
 M&S has opened large number of stores worldwide for strong brand image and wide easy
availability for people who have high loyalty towards brand. Company has promoted
about businesses on various websites which allow people to shop online from various

portals. Competitive business world and high volatile clothing industry has brought high
competitive growth among brands, this factor has increased global trends to promote their
business into new customer segments to position themselves firmly in market. Company
management has enlarged its business operations through internet where large
promotions are done through social media services,to reach new segments of consumers.
 M&S management teams have high focus in delivering dynamic business performance to
all customers worldwide by bringing on more innovative services through which
company can directly deal all customers services. Company has built effective portals
with advanced technology to serve customer grievances as quickly as possible of
products and services. Keeping in mind the cultural factors to serve customers with high
efficiency in comparison from other competitors brands, company plans to position
themselves with better efficiency(Buccieri, Javalgi and Cavusgil, 2020).
 Body language and communication platforms of mangamenet employees in stores has
high impact on consumers' loyalty towards brand and the goodwill of company. This
cultural factor has high impact on company as the long term consumer loyalty for
products and services are greatly affected. M &S has trained employees working in stores
to be effective in delivering their duties to customers with all languages and represent
ethical standards of working. Company focuses on maintaining strong hygienic level sin
stores where there is strong emphasis on consumers to enable them lavish shopping
experience.
Natural environment
Organisational behaviour is highly affected due to changing natural environment globally
as the climate crisis has highly influenced companies to curb down the pollution standards in
production. Companies are focusing on building ways to utilize natural resource to their
optimum utilization levels and keep cost efficiency in check which reduces wastage of resources
to large extent. Availability of resources, water, climate, location and resources are some
important topographical factors which highly influence organizational behaviour and decisions
related to functioning levels of all operations (Graafland and Noorderhaven,2020).M &S gives
high importance to all factors affecting natural environment and maintaining minimum
percentage of wastage in all resources and reaching optimum utilization of all resources.

 M&S focuses on keeping their manufacturing units near to sources of inputs to minimize
the transport cost and keep the resources used in check. Company focuses on using
advanced technology and equipments in production units which enables minimum
wastage of natural resources used in clothing. This enables management to build strong
brand image of company which lays large focus on natural environment resources and
enhance its position among other competitors. A strong brand image enables company to
position itself better among consumers worldwide and reach financial goals with high
productivity targets.
 M&S lays focus on using high advanced technology for operational stricture of company
by using electronics for keeping check on all functions of teams. This helps company to
reduce the usage of paper resources to large extent and efficiently help teams to attain
waste management (Karia, 2020). Organizational behaviour has highly changed due to
natural factors in today's business world. Company donates the surplus production to
charity funds in country where stores donate physically challenged people and
participates in campaigns where it actively participates in social issues. M&S has
increased the use of recycled materials in stores and office consumables by setting
sustainability standards.
 Sustainable business practises are highly important for company management teams in
M&S as it holds the responsibility to deliver natural environment functions of society.
Company aims to embed high ethical standards regrading natural environment and
strategically implement eco friendly ways to implement changes. Company promises
optimum utilization of all resources and avoiding wastage which can affect natural
environment in any negative way. There is proper training of employees to effectively
use technology in curbing wastage of resources and learn innovative methods to reach
performance standards (Cejka and Mohelska, 2020).
 M&S is highly committed to engage in worldwide efforts to eliminate deforestation from
global supply chain by focusing on reducing production greenhouse gas emissions to
protect natural biodiversity. Company lays high focus on eliminating wastage of water,
paper and accelerating systemic change in working operations by ways company can
implement changes effectively. Seminars are held by company to motivate employees

and team members for using environmental friendly methods in production of all
products and goods.
Pestle Analysis
It is tool that is used to evaluate and analysis internal and external factors of environment
that impact on functioning of marks and Spencer. Various factors such as economic condition,
political instability consumer decision-making impact on smooth functioning of business in the
market. Pestle Analysis helps in identifying such factors that helps in gaining competitive
advantages in the industry. Company also used Pestle to prepare various strategies to maximise
its profitability and market share.
Political factor: It refers to political situation, policies, rule and regulation of country in which
Marks and Spencer operates its business. Due to Brexit UK economic is facing situation of
political instability thus impact adversely on company functioning. Government of country does
not have specific policies and forcing M&S to hire large number of employees to recruit. Thus, it
is not able to plan appropriate strategies that helps in expanding market share of company.
Social Factor: It also impacts on functioning of Marks and Spencer as customers trends and
preferences changes continuously. People of UK are demanding organic product due to increase
causes of obesity thus forcing company to launch new product range of organic product to attract
customers. At the same time people also wants qualitative products and services at reasonable
price due to decrease in disposable income of customers (Chassé and et.al., 2017). Thus,
company by adding organic food in its product range at affordable price is able to gain
competitive advantages.
Economic Factor: Economic condition of country in which Marks and Spencer operates its
business is facing situation of recession. High debt among government and people living in the
society which lead to less investment and high employment rates. It has positively impacted as
company can hire large number of people at affordable prices thus reducing cost of production of
company.
Technological Factor: Its evaluation is also necessary for smooth operations of business in the
environment as technology change continuously and people prefer company that bring
continuous innovation in product design packaging etc. (Mytilinou and et.al., 2017). People of
UK more prefer online shopping and personalised experience as it provide ease to customers by
delivering good and products at door steps of customers. Personalised experience also attract

large number of customers thus its change functioning of company. M&S now also provide
products and services through various online sites where customers can buy their product easily.
Legal Factor: It has also impacted on company performance as it production department has to
ensure health and safety of people. While HR manager has to follow legal rules while recruiting,
selecting, promoting employees in the organisation such as does not discriminate on basis of
gender and religion.
Environmental Factor: Company has to ensure safety and protection of environment while
operating its function in the industry (Shao and et.al., 2017). It has impact on production and
strategies of company as it has to made products and services while ensuring safety of
environment, employees and people living in the society. It also leads to increase cost of
company as it has to investment money for protection of natural resource and minimum wastage.
SWOT Analysis
It also helps in framing strategies and gaining competitive advantages in the industry.
Swot analysis internal factor that impact on company performance and helps in achievement of
predetermined objectives.
Strength: Marks and Spencer is a leading brand in retail industry so it has strong brand image in
the market which helps in attracting large number of customers (Delgado, 2019). Thus, strength
of M&S lies in its brand image and product portfolio.
Weakness: It is not able to meet customers need and trends as it has out fashioned and non
trendy clothing thus not able to attract younger generation.
Opportunity: Company by updating its products and technology can expand its market share by
meeting younger generation needs (McDonald and Wilson, 2016). It can also expand its business
across worldwide by marketing its products through online sites.
Threats: It is facing high competition in the market as there are large number of retailer in the
industry M&S operates. ASDA and ALDI are two competitors that provide qualitative products
at reasonable rates.
CONLUSION
This report concludes global business environment explanation how it has largely
impacted companies and brands worldwide with dynamic business strictures coming up and
changing customer preferences has made business situations highly volatile. This report analyses
how M&S has implemented various changes in organizational behaviour through influence of

business environment, cultural and natural environment. It concludes top management has taken
strategies to bring up more advanced fashionable clothes and other products in stores to reach
performance standards with new preferences of customers. Company has taken business
decisions to open up large number of stores in untapped market of countries where there are
large expansion opportunities. Volatile business environment has enabled company to take
productive decisions for scaling up the business to position itself firmly among other
competitors. This report concludes there are various benefits for companies to indulge in global
trade with countries worldwide, leverage its form position and spread its dominant position
globally. It also analyses UK economy has been facing large slowdown with the partition from
European union and this has significantly lowered revenue of many companies.
M&S has taken various business strategies which are influenced by cultural environment
where consumer preferences are changing according fashion sense and increased online stores
availability for consumers who look for internet shopping instead of traditional shopping styles.
Company has focused on building ethical values among employees in stores to deliver quality
service to all consumers regarding their grievances and product services. M&S has taken
strategies to keep the natural environment effects in check by reducing large percentage of
carbon emission in production plants. Management has highly encouraged usage of reusable
products in all stores and clothing of surplus is given to charitable trusts. Natural environment
has large impact on organizational behaviour of M&S as company lays high focus on reaching
financial goals and success along with sustainability. This report concludes company has
established strong brand image among consumers worldwide as one of the most environmental
friendly company in UK.
This report concludes there are large internal factors of strengths, weakness, threats and
opportunities of M&S which are impacting company operational structure to large extent. There
is high established goodwill among consumers worldwide and it has potentiality to enter into
untapped market of new countries where there are large opportunities to enter market share.
However, the weakness and threats can be concluded as increased competitiveness and high
preferences of consumers has positioned brand with low image structure. The report concludes
there is strong connection between external factors for company management to function out
how it operates the internal factors in enhancing performance levels and reaching financial goals.
M&S focuses in building dynamic organizational behaviour where leaders highly motivate

employees to function out their operations to strengthen their performance levels, enhanced
brand image globally and positioning itself firm among other brands in volatile clothing industry.

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