Analyzing Internal & External Factors Affecting Marks & Spencer

This report examines the internal and external factors influencing Marks & Spencer's business performance. It uses PEST analysis to evaluate political, social, economic, and technological external factors, highlighting the impact of government regulations, consumer preferences, economic conditions, and technological advancements. The report also explores internal factors such as workforce capabilities, organizational culture, and supplier relationships, emphasizing their role in achieving a competitive advantage. Furthermore, it discusses how Marks & Spencer's adoption of technology and implementation of policies affect the external environment, including competitive responses and economic development. The report concludes that both internal and external factors significantly impact the company's performance, with internal factors being controllable and external factors requiring careful monitoring and adaptation. Desklib provides students with access to similar solved assignments and study tools.

Internal and External
factors

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Explain how internal and external factors impact on the specific business :-.............................3
Explain the different ways in which a business can impact on the external environment .........5
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
A business environment may be defined as an environment which is very dynamic in
nature and has a huge impact on the performance of the company(Fauzia and et. al., 2021). It is
very important for the management of the company to analyse the business environment in a
very effective manner. This poster is based on the Marks and Spencer which is a multinational
brand of UK and the headquarters of the company are situated in the London. In this poster the
impact of the external and internal factor on the performance of the respective company has been
evaluated. This poster also cover the impact of the business on the external environment.
TASK
Explain how internal and external factors impact on the specific business :-
External analysis :-it is very important for the company to analyse the external environment in a
very effective manner. A proper research has to be taken by the company to measure the impact
of these factor with the use of PEST analysis frame work. In context to Marks and Spencer, this
analysis has been discussed below :-
 Political factor :- this factor is totally related to the rules and regulations which are made
by the nation government. As the political stability of the government of UK is very
strong so, this help the Marks and Spencer to operate all their business functions in a very
effective manner. So it is very important for the respective company to follow all the
policies of the government.
 Social factor :- this factor is related to welfare of the society. In context to the Marks and
Spencer, the management of the company have to keep focus on the taste and preferences
of the consumer and provide best quality of goods according to the need and demand of
the consumer(HASBI and et. al., 2020).
 Economical Factor :- In this element factor related to the economic condition of the
country has been comprises. In relation to chosen company, after the arisen of COVID 19
the economic condition of the UK has been affected in a very immense manner. It is very
important for the management of the company to take the appropriate actions to deal with
this situation.

 Technological factor :- This factor is totally related to the advancement of the
technology all across the globe. As the technology changes everyday, so it is very
important for the management of the Marks and Spencer company to adopt these changes
according to time. The use of latest technology within the business environment help
them to grab more and more opportunities.
Internal analysis:- the internal environment of the company also affect the performance of the
company in a very immense manner. It is very important for an organisation to effectively
evaluate all the factors which has a huge impact on the productivity of the company. These
factors are present inside the business and are in control of the business. By doing this analysis
they are able to enjoy the competitive advantage over their rivals. In context to the Marks and
Spencer internal analysis of the company has been discussed below :-
 Workforce :- Employee's of the company is being considered as the backbone of the
company, they are responsible for performing the different activities of the business in a
very effective manner. They have the different skill and knowledge and without them the
organisation is not able to carried out their operations. The skills which are posses by the
employees of the Marks and Spencer help them to achieve successful position in the
market for a long period of time.
 Organisational Culture :- the culture within the workplace also has a huge impact on
the performance of the company. It is very important for the management of the
company to make happy environment within the work place. The employees of the
Marks and Spencer perform their task in a very productive manner as the management
provide healthy and safe environment to them(Pulka, Ramli and Mohamad, 2021). If the
organisation culture is not good then the conflicts has been arises between the employees
which reflects on the performance.
 Supplier :- this also being considered as the most important part of the company
because they provide raw material and many more resources to the firm. As Marks and
Spencer has a well established image in the market, the suppliers of the company supply
them high quality of goods. It is very important for the organisation to considered the
needs of the supplier to avoid the material and quality goods as well.

Explain the different ways in which a business can impact on the external environment
In a business different types of functions has been carried out. These functions not only
impact of the performance of the company but also has huge impact on the external environment.
Some of the factor in context to the Marks and Spencer which impact the external environment
has been discussed below :-
 Technology :- the advance technology which have been adopted by the company help
them to increase their productivity in the market and along with this also help them to
enjoy the competitive advantage over their rivals. A impact has been seen in the external
environment is that the rivals of the organisation also start making efforts to adopt the
technology(Tarasova and et. al., 2021). In context to the Marks and Spencer, the self-
check out trend has been introduced by the company in their food stores which help them
in saving their money.
 Policies :- as the Marks and Spencer has a well known image in the market, the company
not not only help in developing the economic conditions of the nations but also help in
developing the various employment opportunities within the nation. This also help in
increasing the per capital income and GDP of the UK. Due to this the government of the
nation provide rebates to them in relation to export and import and along with this make
changes in the policies so that they can carry out their functions.
CONCLUSION
From the poster it has been concluded that both the internal and external factor has a huge
impact on the performance of the company. It has been concluded that external factor are not in
the control of the management and internal factor are in the control because their impact is
limited on the company. The above poster concluded the the impact of external and internal
factor on the Marks and Spencer and along with this, the impact of the business on the external
environment.

REFERENCES
Books and Journals
Fauzia, G and et. al., 2021, June. Identification of internal and external factors in replanting oil
palm. In IOP Conference Series: Earth and Environmental Science (Vol. 782, No. 3, p.
032063). IOP Publishing.
HASBI, H and et. al., 2020. Analyzing of External Environment Force and Islamic Business
Ethics on Baitul Maal Wat Tamwil Performance through Organizational
Commitment. Journal of Applied Economic Sciences, 15(1).
Pulka, B.M., Ramli, A. and Mohamad, A., 2021. Entrepreneurial competencies, entrepreneurial
orientation, entrepreneurial network, government business support and SMEs
performance. The moderating role of the external environment. Journal of Small
Business and Enterprise Development.
Tarasova, H and et. al., 2021. A combination of forecasting internal and external crises in
managing the development of educational institution. Revista Amazonia
Investiga. 10(47). pp.35-46.