Report on Business and the Business Environment: Marks & Spencer

This report provides an in-depth analysis of Marks & Spencer's business environment, utilizing PESTLE and SWOT frameworks to assess the external factors and internal dynamics impacting the company. The PESTLE analysis examines political, economic, social, technological, legal, and environmental influences, highlighting both opportunities and challenges. The SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats, offering a balanced view of its competitive position. The report also delves into specific external factors, such as political stability in the UK, economic conditions, social trends, and technological advancements, and concludes with insights into how these factors interrelate to affect Marks & Spencer's performance and growth. References to relevant academic sources are included to support the analysis.

BUSINESS AND THE
BUSINESS
ENVIORNMENT

TABLE OF CONTENT
◦ Introduction
◦ Pestle analysis
◦ Swot analysis
◦ External analysis
◦ Conclusion
◦ References

INTRODUCTION
◦ The purpose of this report is to gain in-depth knowledge and comprehension of the selected business and
the roles that are played in larger business contexts. The numerous sorts of organisations, their sizes and
scopes, and the methods used to run them have all received attention. This has made it easier to
investigate the many opportunities and connections between companies, as well as the influence and
effects of the external environment.

PESTLE ANALYSIS
Pestle analysis Brief Positive Negative
Political These elements are influenced by the government of the
nation, how it handles businesses, and the business-related
policies it enacts.
The corporation has benefited from the trade deal with the
European Union, which lowers the cost of sourcing. Mark
and Spencer took advantage of the EU deal by selling goods
duty-free in many nations.
If the government raises the tariffs on products, the price of
the product will go up and there will be less demand for the
product.
Economical These economic environment-related elements, such as
shifting fiscal policies and inflation rates, have a direct
impact on the company's business performance.
The UK is one of the largest economies that has managed to
keep its inflation rate under control, and Marks and Spencer
developed tactics to make the most of a low inflation
environment.
Due to clients' low discretionary income during the financial
crisis, companies saw a decline in demand for their products.
Social The social environment of a nation affects how its citizens
react to products; whereas some place more value on
quantity than quality, others do the opposite.
Company is combating this factor and leading the ready-
meal market. In the UK market and across the globe, there is
a greater demand for this brand's products.
Since Mark and Spencer isn't a modern brand, its clients
associate it with the past. Customers are no longer able to
connect this brand with that of the younger generation as a
result of its long history, and as a result, it is losing newer
customers.
Technological The usage of technology and the process of gaining access
to tools and technologies that can be utilised to build the
digital environment are both tied to the technological
component.
Marks and Spencer have revealed their ideas for a
technological transformation programme that will assist the
corporation in becoming a business that prioritises the
digital world. They have made a significant move toward
more commercial, quick, and agile technology, which will
aid in corporate growth.
Because it does not use its worldwide network of internet
stores, the corporation has a minimal online presence.
Legal This component includes government laws and regulations
that have an impact on businesses, such as tax laws and new
business laws.
The business consistently makes improvements and updates
its policies to reflect local legal requirements.
Marks and Spencer were found guilty of two counts under
the Health and Safety at Work Act of 1974, and they must
pay a fine of £500,000 for each violation.
Environmental This element examines environmental issues and the effects
that products have on our surroundings.
Marks & Spencer has frequently advocated for a sustainable
retail sector, and the company has sworn to be careful in
every step of the manufacturing process.
Numerous organisations from all around the world have
criticised Marks and Spencer due to the pollution that is
produced by textile manufacturers who identify as suppliers.

SWOT ANALYSIS
◦ Strength- Since it has been in business for the last 136 years, Marks & Spencer has a wealth of
experience. It is one of the top leading retail brands in the UK, and the company greatly benefits from the
experience of the customers.
◦ Weakness- Other retail brands compete fiercely in the market, which results in the company having a
small market share.
◦ Opportunity- Although Marks and Spencer are a global company, there are still some markets where the
company needs to grow.
◦ Threat- Marks and Spencer has some formidable rivals both domestically and abroad. Competitors like
Amazon, Tesco, ASDA, and others pose a serious threat to its business.

EXTERNAL ANALYSIS
◦ Political- Given the high degree of political stability in the UK, businesses can adapt their long-term
policy strategies to achieve better outcomes and more efficient operations.
◦ Economic- The UK has one of the highest economies with a business inflation rate under control, which
benefits businesses.
◦ Social- Business is always upgrading its trends in line with current market trends, which aids in building
a strong market presence and bringing in new clients through the regular introduction of new items for
them.
◦ Technology- Because of the ongoing changes in technology, production costs have increased, which has
resulted in higher product prices and less sales, but the company has developed technology for its
operations and manufacturing that is assisting it in other areas as well.

CONCLUSION
◦ Last but not least, understanding the elements that may or may not affect the company's performance and
growth in the future, with the interrelationship of strength and weaknesses, comes from the analysis of
external and internal factors of the business environment using the pestle and swot method.

REFERENCES
◦ Akhtar, M. and Sushil, S., 2018. Strategic performance management system in uncertain business
environment: An empirical study of the Indian oil industry. Business Process Management Journal.
◦ Luiz, J.M., Ganson, B. and Wennmann, A., 2019. Business environment reforms in fragile and
conflict-affected states: From a transactions towards a systems approach. Journal of International
Business Policy, 2(3), pp.217-236.

THANK YOU