Marks & Spencer PESTLE Analysis: Business English Academic Skills

This essay provides a PESTLE analysis of Marks and Spencer, examining the political, economic, social, technological, legal, and environmental factors affecting the company's business operations in the UK. It discusses the impact of changing taxation policies, BREXIT, green consumerism, econo...Read More

English Academic Skills
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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Conclusion..................................................................................................................................4
Reference List............................................................................................................................5
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Introduction
The purpose of this essay is to discuss on a business related topic. Here, ‘Marks and Spencer’
has been selected as the case organization and PESTLE framework is the selected topic.
PESTEL is a framework, which is used to assess the factors that are not under control of the
company, or can be called as external factors. By analysing these aspects, a business
organisation is able to evaluate the changes and develop strategies to implement those
changes in order to function properly and decrease the possibility of facing any risks in the
future. In order to have a better understanding of this business essential module, PESTEL
analysis of Marks and Spencer has been done in this essay.
Discussion
The fast changing taxation and government policies of UK has significant impact of business
activities of “Marks and Spencer’s” (kpmg.com, 2018). In such political environment, the
company needs to develop organizational policies based on the government’s regulations.
Therefore, it can be said that the current political scenario of UK influences the company to
implement fast change, which has negative impact on the organizational activities. After the
BREXIT vote, the sourcing cost has reduced due to the nature of free trade policies. In case
of “Marks and Spencer’s”, the business relationship with the small retailers got affected due
to the post BREXIT currency impact.
The trend of green consumerism has wide impact on organizations activities. In case of
“Marks and Spencer’s”, the company has implemented Plan A, which is the sustainability
plan in order to satisfy the social environment. As of now, there is quite an uncertainty about
the economic status of the country and therefore, the cost of living has increased, which
prevents people from spending money on luxury clothing and food products. Due to this
factor, the business of the company has reduced considerably and thus they had to close down
some of their stored and had to move 2% of their 70,000 workforce (independent.co.uk,
2018). When it comes to technology, the customers now have a better experience in shopping
with M&S, as they are able to operate online, in mobiles, tablets and phones. People can shop
M&S products from Amazon as well, which provides vast delivery options and multinational
services. Therefore, it can be said that the technological environment of UK helps the
organization positively.
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In order to conduct sustainable business, organizations need to comply with the policies
imposed by the government. As per the ‘Consumer Product Safety Act’, the company should
develop effective policies and provide good quality products to the consumers
(legislation.gov.uk, 2018). In order to increase sustainability of the country, UK government
has developed effective policies. According to the government’s guideline, the organizations
should comply with the environmental policies in order to conduct sustainable business.
Conclusion
In the recent times, there has been a lot of abruption in the social, economic and political
aspects. Due to the increment of population, unprecedented migration, lack of equality and
data privacy has been an issue. The fast evolving business environment portrays the way the
company has to work according to the aspects. The negativity has to be eradicated and
maximise human right impacts. To achieve and develop their business, they have to employ
more workforce, to increase the standards of performance.
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Reference List
independent.co.uk (2018). Marks & Spencer announce store closures that will affect 468
jobs. The Independent. Available at:
http://www.independent.co.uk/news/business/news/marks-spencer-stores-close-job-losses-
branches-shops-a8186691.html [Accessed 13 Mar. 2018].
kpmg.com (2018). Income Tax. KPMG. Available at:
https://home.kpmg.com/xx/en/home/insights/2011/12/united-kingdom-income-tax.html
[Accessed 13 Mar. 2018].
legislation.gov.uk (2018). The General Product Safety Regulations 2005. Legislation.gov.uk.
Available at: http://www.legislation.gov.uk/uksi/2005/1803/contents/made [Accessed 13
Mar. 2018].
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