Detailed Business Environment Analysis Report: Marks and Spencer

This report provides a comprehensive analysis of the business environment of Marks and Spencer (M&S). It begins with an introduction defining the business environment and its impact on organizations, followed by an overview of M&S, including its type, size, and scope as a private multinational retailer focusing on quality products. The report then examines the interrelationship between M&S's organizational functions and its flatter organizational structure, discussing the advantages and disadvantages of this structure. The analysis further explores the intrinsic and extrinsic influencers on M&S through SWOT and PESTLE analyses, examining political, economic, social, technological, environmental, and legal factors. Finally, the report assesses the influence of globalization on M&S's strategy and decision-making processes, concluding with a summary of the key findings and their implications for the company's operations and future strategies. The report uses academic sources to support its claims and provides insights into the challenges and opportunities facing M&S in a dynamic business environment.

Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Type, size and scope of organisation......................................................................................3
2. Interrelationship between organisational functions and organisational structure...................4
3. Intrinsic and Extrinsic influencers through execution of SWOT and PESTLE analysis........7
4. Influence of globalisation on organisational strategy along with decision making process...9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business environment can be defined as aggregation of various external and internal
elements like expectations, employees, customers needs, management, supply and demand,
owners, clients, suppliers, innovation in technology, activities by government, market trends,
economic changes, social trends and so on (Andersson, Forsgren and Holm, 2015). Over the
years, there are number of factors within the business environment that impacts operations of a
business organisation. This impact can be positive or negative on a business firm. In present
report, company that has been taken into consideration is Marks and Spencer (M&S), which was
found in the year of 1884 by Thomas Spencer and Michael Marks. In present time, in all over the
world company is holding around stores among 1463 locations. Along with this, report is going
to be enclosed with different elements like type, size and scope of a particular business
organisation and organisational structure with interrelationship among various functions.
Including this, assignment will also put light on influence of both internal and external factors
and lastly, impact of globalisation among strategies and decision making process made and
followed by the company.
1. Type, size and scope of organisation
In present time, parliament of all the countries has specifically divided organisations
among different sections based on their working, size, type and scope that they are having while
conducting business. In the same way, United Kingdom's government has also divided
organisations in same aspect (Anıl and Ficici, 2017). The organisation that has been taken into
consideration is Marks and Spencer, that also consist of a particular type, holding a huge size and
has a unique scope as well towards it's own future and all of these are described underneath:
Types
If it is talked about the type of Marks and Spencer then it is coming under private type of
business firm and consists with an aim of earning profits through selling number of products and
services to customers in all over the world. On the other hand, M&S deals among clothing, food
and home products. Major focus that this organisation is carrying is on high quality and sells
products considering the premium price based strategy. With the help of this, firm has made
itself a leading and famous business organisation, where customers knows it's worth at present.
Through this, it is said that Marks and Spencer is also dealing within the retailing business sector

only and sells it's products and services considering both online and offline business approach.
Including this, Marks & Spencer is holding a unique brand name with a vision statement as
“Brand is built on core values of service, quality, innovation, value, along with the trust as well.
Size
Business size is something, which particularly shows a company's capacity within the
national or international market. If it is talked about M&S, then this organisation is one of the
major multinational retailer that is holding strong roots within United Kingdom and also
headquarters in Westminster, London. Revenue in the year of 2017, which was generated by
M&S was approximately £10.6 billion. On the other hand, Marks and Spencer has recruited
around 85,000 individuals at different functional departments that are helping company in
running approximately 1,300 stores in all over the world. Including this, the organisational
structure that has been followed by Marks and Spencer is functional, which helps them in
transferring the information from top to medium and then to lower level managerial departments.
This has helped firm in maintaining their positive presence in front of it's customers in all over
the world (Bah and Fang, 2015).
Scope
Marks and Spencer's scope at present is that it is holding a really very vast area in all over
world, through giving importance to both staff along with the updated needs of customers. On
the other hand, regular training is also been given to company's staff so that they could sustain
within the market for a longer period of time. Away with this, M&S has been at the forefront of
social change for the past 134 years, and also the business firm has kept it's focus on making
number of determinations so that they could carry themselves on the right position within the
specified time frame. On the other hand, it is also said that setting bolder goals and giving staff
with appropriate space along with the resources to achieve them. At present, M&S is specifically
being considered as a unique retailer delivering top quality food, clothing, home products and
financial services.
2. Interrelationship between organisational functions and organisational structure
Organisational structure
Marks & Spencer at present is specifically following a flatter structure, which is also
directly connected to role culture. Basically, it is said that with the help of flatter organisational
structure M&S became able to make direct connections in between staff along with clients and

customers, which will result into enhancement of knowledge concerning customers’ need and
behaviour. This could be understood with a good example of headquarter of Marks and Spencer,
which is located at Westminster, London, where around 3000 employees are working to
specifically reach to the ultimate goal of the company i.e. to earn profit (Brown, 2018). Here, it is
said that all of these are having number of specific roles which is stated within the flat pyramid
used by the company and defined in a job description, restricting their own initiative as they tend
to follow definite rules. Levels of management between the different departments are limited in
order to facilitate decisions making and problems solving process. Some of advantages and
disadvantages of flat organisational structure of Marks and Spencer is presented underneath:
Advantages:
 Primal advantage that Marks and Spencer has received after following this type of
organisational structure is that, it improved the employee morale. Another benefit of utilising flat organisational structure that M&S has got is that there is
less miscommunication situations that came in front among different functions of the
company.
Disadvantages:
 Major disadvantage of this structure is that bad decisions can be made under the guise of
expertise. Just the way information starts transferring to expertise to subordinates, it takes a lot of
time, which M&S cannot afford in these crucial times (Chang, 2016).
Interrelationship between organisational functions:
At present, M&S is said to be a top notch retailer, which is significantly selling number
of goods and services to their potential customers. Including this, it is said that there are number
of interrelationships that this company's organisational functions are having, which also needs
appropriate stability and effective relationship so that firm's ultimate goal can be attained.
Including this, there are number of relationships through are specifically leveraged by Marks and
Spencer with the help of flat organisational structure and some of these are presented below:
Sales and HR Department: For a business organisation like Marks and Spencer, it is
required to have effective candidates that have knowledge and appropriate skills so that company
could attain number of goals and objectives in specified time frame. Recruitment is done by HR
Department, where it is the responsibility of HR Manager to develop relations with other

functional departments of the business company so that he/she can get the knowledge related to
what exactly they require. This can be understood with a good example of Sales Department of
Marks and Spencer, where Sales manager can exactly deliver the details to HR manager that they
need to have a qualified candidate with effective communication skill. Here, it shows the
effective relations among the two departments. Because, hiring the right candidate will directly
put positive impact on sales of products and services offered by Marks and Spencer. Therefore, it
is needed for both the departments of Marks and Spencer to keep on communicating with each
other so that they could get to know about what exactly the requirements are, of the company.
Along with this, it is also said that when it comes to improve functioning of Marks and Spencer
at international market, then it will be much important to sync both sales and HR department
with each other (Charfeddine, 2016).
Marketing and Finance Department: Another crucial relationship that is required for
appropriate functioning of Marks and Spencer's operations at international level. Basically, both
marketing and finance departments rely on each other because, without appropriate funds,
marketing department of M&S cannot promote the brand or it's products portfolio. This could be
understood with a good example of Marks and Spencer, where company is launching a whole
new product in the market. This is where, company has decided to promote the product to grab
the attention of targeted customers through developing a marketing campaign on social media or
among different physical areas. This is where, it will be required by company's marketing
department to get the appropriate budget for performing the promotional activities of product.
Delivering the information to finance manager of M&S so that he/she could effectively approve
the budget based on the company's wealth condition (Charter, 2017). Through developing right
relationship, it will be easy for both marketing and finance manager to support company in
different ways.
Research & Development and Production Department: Marks and Spencer's R&D
department basically looks forward to bring right modifications within the existing products and
services offered by them based on the requirements of customers. On the other hand, it is the
responsibility of production department to produce or sell products related to what exactly
customers are looking for (Hillary, 2017). This is where if relation among both of department's
manager will be appropriate then it is may be possible that information brought by R&D

department would directly get implemented within the production unit in a much more
successful manner.
3. Intrinsic and Extrinsic influencers through execution of SWOT and PESTLE analysis
It is significant for an association to continually examine business environment to which
it relates so as to perceive the impact that the inward and outside elements have upon the
business activities. In present world, it is said that working over the globe there are two major
models that can effectively be utilised by any business organisation and these are PESTLE and
SWOT examinations so as to recognize such effect in a viable way. Viewing the equivalent, the
administration of Marks and Spencer has chosen to direct PESTLE and SWOT examinations of
the firm (Nohria, 2017). Proper execution of SWOT and PESTLE analysis of Marks and Spencer
and it's industry is done underneath:-
PESTLE Analysis
This is being considered as one of the crucial analysis, that helps a company in examining
the external environment in an appropriate way. At present, supervisor of Marks and Spencer
have led PESTLE investigation with the goal that they can make appropriate decisions in relation
to the international market, so that they could sustain within the industry within an effective
manner. This model consists of a number of factors and these are political, economical, social,
technological, environmental and legal and all of these are presented underneath:
Political: Brexit can be considered as one of the major political factor that has impacted
upon potential market of United Kingdom, where inflation rate is continuously changing in a
rapid manner. This has raised number of questions for Marks and Spencer in relation to their
own stability that if they will sustain within the market or not, because they are carrying a strong
customer base within United Kingdom (Prajogo, 2016).
Economical: Another crucial factor, where United Kingdom's growth condition is very
much strong and enabled a range of opportunities for companies like Marks and Spencer to
perform the best among those areas as well, in which they do not belong. This has brought both
innovation along with the creativity within the United Kingdom's business industry.
Social: Over the years, UK's market majorly focuses on trends and customers needs. This
has helped firms in bringing right modifications according to the demand. In the same way,
Marks and Spencer has also made their products and services based on fast fashion trends and

hygienic food. Latest market trends and demands so that it can effectively appeal to the citizens
of United Kingdom and thereby gain maximum satisfaction from them.
Technological: Over the years advancement within the technology, is something that led
United Kingdom to a whole new level. This is specifically raised number of benefits for the
business organisations like Marks and Spencer, Tesco and so on through implementing market
and latest disruptive systems, which leads to processes as well. This has raised and resulted,
Marks and Spencer to reach to a whole new level (Quinlan and et. al., 2019).
Environmental: Another crucial factor, which led number of initiatives that led the
company to develop interest towards environment, because this is something that government of
United Kingdom, supports. Basically, if it is talked about Marks and Spencer then this is one of
the crucial business organisation that raised number of benefits for itself through building itself
as an eco friendly business organisation. Through manufacturing eco - friendly clothes along
with some of other initiatives, that raised number of benefits like improvement within the
productivity and so on to attain rapid growth at market place.
Legal: This factor focuses on a large scale business environmental factor because it
consists of number of laws that all the countries that they are carrying. For an example, business,
working environment guideline, least wages, well-being along with the security and so on.
Including this, there are number of initiatives that can be seen in relation to Marks and Spencer,
where HR department mainly implemented number of authoritative culture whereby the
consistence with all of such laws and different elements in relation to be required for the
representatives having a place with the association.
SWOT Analysis
SWOT of Marks and Spencer is defined as below:
Strengths Weaknesses
 Product's portfolio is pretty much
strong of Marks and Spencer and along
with this, M&S is holding more than
1463 stores in all over the world.
 Including this, another strength that
came in front is Marks and Spencer
which is holding unique nature and i.e.
 High prices of number of products
along with the services offered by
Marks and Spencer, which are also
outdated in nature.
 Negative image in front of potential
customers due to various unethical
practices like green washing and so on.

manufacturing process. This has made number of products
much more expensive in nature.
Opportunities Threats
 There is presence of effective resources
within Marks and Spencer. It is an
opportunity to utilise these resources
and do effective functioning at global
level. Also there is opportunity for
enhancing market share at global level.
 This organisation is also having an
opportunity for introducing online
selling and provide products and
services of this company by selling
these on online platform (Saleem,
2015).
 Simplification of operating model can
be done in order to ease down for
customer.
 Due to BREXIT, there is negative
impact on the European market. This
really affected businesses and
companies and there is decline in sales
and earned profits. Various
organisations are working effectively
for achieving the profits as there was
great downfall.
 Marks and Spencer is facing severe
competition in market where there is
presence of local as well as
international competitors.
 Market trends are changing very
quickly and this leads to threat for
Marks and Spencer.
4. Influence of globalisation on organisational strategy along with decision making process
Globalisation is said to be one of the crucial concept, which has gained massive
awareness from past two decades. Due to this, Marks and Spencer has raised it's growth rate
through gaining attention of customers from new markets. Including this, it is also said that
companies like Marks and Spencer has also adopted various strategies which made different
factors like external and internal environment to enhance or improvise the overall performance
level. Functions of M&S has made an important impact over the abilities of organizations,
resulting in improvement in growth and profitability of business. It includes various aspects such
as currency exchange rate, employment legislation, government laws etc. (Schaltegger, Hansen
and Lüdeke-Freund, 2016).

Therefore, to manage the negatives of globalization and to accomplish the greatest
advantages of taking a business to worldwide level, it is basic that organizations like Marks and
Spencer take unique choices and adopt right technology to sustain within the market for a longer
period of time. Another crucial aspect that came in front i.e. number of factors which plays an
effective role over the different aspects linked with the leadership at international level. Under
this, it is said that Marks and Spencer need to concentrate on social duty, culture and qualities.
On the off chance that a choice is formulated by the association to grow their activities on a
worldwide scale, at that point the plans and systems are to be arranged appropriately for picking
up the consideration of clients winning in the new market. This would bring increase in deals and
benefit proportion for Marks and Spencer. These progressions if adequately executed in the
choice procedure associated with CSR may result into simplicity of performing corporate
activities on global scale with most extreme degree of business productivity.
CONCLUSION
Considering the above mentioned report, it is summarised that for a business firm it is
pretty much needed to keep their focus upon number of external and internal factors so that they
could sustain within the market for a longer period of time. On the other hand, effective relations
among different functions of the department would lead to hit number of targets that are directly
linked with various functions. Including this, with the help of PESTLE & SWOT analysis, an
organisation could effectively look at different aspects and takes appropriate decisions right on
time.

REFERENCES
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