Analyzing the Global Business Environment: Marks & Spencer Report

This report provides a PESTLE analysis of Marks & Spencer (M&S), a major British retailer. The introduction defines the global business environment and highlights the importance of analyzing political, economic, social, technological, legal, and environmental factors. The main body presents the PESTLE analysis, examining the political stability and tax rates in the UK, the economic recession's impact on consumer behavior, the influence of changing social habits, the opportunities from technological advancements, the importance of legal compliance, and the environmental initiatives undertaken by M&S. The conclusion emphasizes the value of the PESTLE analysis in identifying risks and developing strategies for long-term sustainability. References include books, journals, and online resources used in the analysis.

Global business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Pestle analysis.............................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Global business environment is defined as the environmental factors in different nations
influencing decision-making of business regarding use and capabilities of resources. When a
firm wants to enter into a country it is important to critically analyse political & legal,
economical & social, technological & environmental factors for successful operation of the firm
(PESTLE Analysis, 2020).
Marks and Spencer is a huge British retailer that deals in clothing, food and home
products with its own label. The company entered in 1884 by Michael Marks and Thomas
Spencer with its headquarter in London.
Pestle analysis of Marks & Spencer is evaluated in this report to identify the growth
opportunities for future expansion and long term sustainability of firm.
MAIN BODY
Pestle analysis
It refers as the macro environmental factors that affects the successful implementation of
business globally. In terms of Marks and Spencer these factors are critically analysed as follows:
Political:- Political condition such as- political stability, favourable tax rates of United
Kingdom are in favour of Marks and Spencer (Khajeheian, Friedrichsen and Mödinger, 2018)
(Hickmann, 2017). Law tax, good relationship with UK government due to huge investment of
firm in donations has positive impact in terms of business expansion for respective firm.
Economical:-UK faces recession time due to this buying habits of consumers also shifted
from luxury to essentials this leads to negative impact on the growth of respective firm. Thus,
company can reduce its prices of can offer some discounts so as to attract and retain customers.
This will helps in dealing with recession period.
Social:- Falling economy decreases the income level of people living in UK this leads to
changing habits of consumers in terms this affects the business of firm in negative ways (El-
Zayaty, 2018). Thus, Marks and Spencer needs to focus on marketing research so as to meet
consumer needs.
Technological:- Increasing technology such as use of robotics and online mode of selling
has huge impact on respective firm's position and creates growth opportunities for the future
expansion of business. This will result in enhancing the sales and customer base of firm.
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Legal: It tends to undertake various legislations and norms that are useful for company
regarding its successful running in business environment. In terms of marks and Spencer, they
tends to undertake fair trade policies and effective employment laws by which they can easily
retain their employees and customers both for their overall survival (Rowell, 2017).
Environmental: It tends to depict the prominent laws and standards that are related with
environment which is useful with the help of considering CSR activities. For this, Marks and
Spencer develop “Plan A” to eliminate carbon footprints with the vision of that there is no “Plan
B” to sustain environment.
CONCLUSION
By undertaking the above discussion, it is identified that Global business environment is
the collection of both internal and external factors that regulate and form prominent business
environment. In regard of this, PESTLE analysis is used in terms of identifying the prominent
risk factor and also take corrective actions to overcome them by developing effective strategies
and policies.
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REFERENCES
Books and Journals
El-Zayaty, N., 2018. An exploration of leadership styles and motivation in Egyptian business
organizations. International Journal of Business and Applied Social Science
(IJBASS). 4(2).
Hickmann, T., 2017. Voluntary global business initiatives and the international climate
negotiations: A case study of the Greenhouse Gas Protocol. Journal of Cleaner
Production. 169. pp.94-104.
Khajeheian, D., Friedrichsen, M. and Mödinger, W., 2018. An introduction to competitiveness in
fast changing business environment. In Competitiveness in emerging markets (pp. 3-11).
Springer, Cham.
Rowell, A., 2017. Green backlash: Global subversion of the environment movement. Routledge.
Online
PESTLE Analysis. 2020. [Online] Available through <https://www.groupmap.com/map-
templates/pestle-analysis/>./
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