Marks & Spencer: Comprehensive PESTLE and Internal Analysis Report

This report provides a comprehensive analysis of Marks & Spencer's business environment, examining both external and internal factors that influence its performance. The external analysis utilizes the PESTLE framework, covering political (Brexit implications), economic (stability in the UK), social (purchasing power of UK residents), environmental (green practices), technological (CRM, AI), and legal (equality, minimum wage) factors. The internal analysis focuses on strengths such as high-quality differentiated products, cost-effective production, skilled workforce, customer-centric approach, and a flat organizational structure. Furthermore, the report discusses Marks & Spencer's impact on its external environment through corporate social responsibility, economic contributions (employment), social impact (lifestyle enhancement), and political influence (international trade). The report concludes by emphasizing the importance of understanding these factors for strategic decision-making and sustainable business practices. Desklib provides access to similar solved assignments and study tools for students.

Introduction
Business environment is a place where in the business
operates, it includes different factors both in external and
internal environment that impacts the business
performance either negative or positive manner.
Marks & Spencer is the chosen business organisation
which is a British international organisation,
headquartered in London, UK. The organisation was
founded in the year 1884 by Michael Marks and Thomas
Spencer. Marks & Spencer is the largest retailer with
renowned brand name for delivering quality products and
services to its end customers. In this discussion, the main
points covered talks about business environment that how
different internal and external factors affects the business
performance. Apart from that, the discussion also
discloses that how the business activity affects the
external environment. (Akhmetshin and et.al., 2017).
Marks and Spencer and External and Internal analysis based on Pestle analysis
Name of the Student
External Environment
Political factors
There are certain political factors such as free trade in UK that supports Marks & Spencer to bring convenience in promoting foreign
trade, exports and import. With implication of Brexit, Marks & Spencer has been affected in a negative way facilitating restrictions
over imports and exports, restriction of free trade, freezed recruitment, increase cost for acquiring raw materials and so on.
Economic factors
With stability of economic conditions Marks & Spencer gets fair growth opportunities and sustainability in UK. The stable economy
conditions in UK, helps to get easy finance choices for business stability in the marketplace. Other factors include inflation rate,
growth rate, foreign exchange rate that impacts the business performances.
Social factors
People living in UK are mostly the ones with high purchasing power and income earning capacity, it greatly benefits Marks & Spencer
to maximize sales and profitability goals. Moreover, the association responds to the high lifestyle pattern of people by delivering them
quality products and services at exclusive ranges without comprising on styling and taste of the customer’s preferences.
Environmental factors
Marks & Spencer adopt green practices in the workplace and other green approaches to reflect strong brand identity. Marks and
Spencer adopts measures to reduce the carbon footprints of the business activities and other to adhere to the environmental protection
norms in UK.
Technological factors
Marks & Spencer uses advanced technology and tools in the business activity that supports to bring efficiency in the business
functioning. Some technology used by the Marks & Spencer includes customer relationship management software in order to improve
customer and business engagement others such as artificial intelligence, augment reality, cloud computing etc. using advanced
technologies in the business also supports to analyze the business performances through performance metric tools.
Legal factors
In order to operate the business in the most legal ethical manner, Marks and Spencer adheres to all the legal framework determined as
per laws and norms of UK for managing the business. Some of these include equality, national minimum wages and others.
(Cherunilam, 2021)

Internal Factors
• Marks & Spencer delivers high-quality products with great collections at exclusive ranges
which makes the brand ideal for customers to shop. The products and services delivered by
Marks & Spencer are differentiated which are not easily found as the substitute products in
the market.
• Marks & Spencer uses cost effective approach of production that includes producing goods
and services in large scale as per the demand, reducing the dependence on the suppliers and
substituting technologies when needed (Ištvanić, Crnjac Milić and Krpić, 2017).
• Marks & Spencer greatly works to recruit such employees who are highly skilled for
different functional units of the business. The association should also deliver proper training
and development opportunities to rightly managing internal workforce and continue
productivity in the workplace.
• Marks & Spencer uses customer centric approach to engage with the prospect such as
investing on research and development activities to address market demand in order to
deliver value to the customers.
• Marks & Spencer adopt flat organizational structure to manage business functioning. Flat
organizational structure draws many benefits to the business including quick decision
making, effective communication, direct in touch with the employers and employees,
reducing bureaucracy, accountability and answerability and so on.
Conclusion
The above discussion clearly talks about that how different factors of
business environment affects performance of any organisation. These are
also crucial to identify in order to facilitate effective and timely initiative
to combat with challenges grab opportunities for business sustainability.
References
Akhmetshin, E. and et.al., 2017. Analysis of innovation activity of enterprises in modern
business environment. J. Advanced Res. L. & Econ.. 8. p.2311.
Calabrese, M. and et.al., 2018. From mechanical to cognitive view: The changes of decision
making in business environment. In Social Dynamics in a Systems Perspective (pp. 223-240).
Springer, Cham.
Cherunilam, F., 2021. Business environment. Himalaya Publishing House Pvt. Ltd.
Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and
communication for business environment. Procedia Economics and Finance. 20. pp.277-282.
Ištvanić, M., Crnjac Milić, D. and Krpić, Z., 2017. Digital marketing in the business
environment. International journal of electrical and computer engineering systems. 8(2.). pp.67-
75.
How the company impact its context External Environment
Corporate social responsibility
Corporate social responsibility is defined by how a business activity benefits both the business and the society. Marks & Spencer uses green practices such as recycling waste, using
the concept of sustainable energy there in the business uses nonrenewable sources of energy to produce electricity, measuring the carbon footprints or some of the approaches adopted
by the business in order to deliver social value and accomplish brand positioning in the strong international market place. \
Economic
Marks & Spencer drives number of employment opportunities for youngsters in UK.
Social
The quality products and services offered by the association enhances the social life style and standard of living of people residing in UK.
Political
As Marks & Spencer is a multinational company, the association facilitates imports and exports leading to enhance trade relation between different countries.
(Georgescu and Popescul, 2015).