M&S Business Environment: PESTLE, SWOT, and Decision-Making Analysis

This report provides a comprehensive analysis of the business environment of Marks and Spencer (M&S) through PESTLE and SWOT frameworks. The PESTLE analysis identifies political factors like free trade policies and Brexit impacts, economic factors such as the shift towards small retail stores and budget constraints, and social factors including changing consumer preferences. The SWOT analysis outlines M&S's strengths in product quality and social responsibility, weaknesses in financial performance and UK market reliance, opportunities for international expansion and online growth, and threats from economic recession and evolving fashion trends. The analysis highlights how these internal and external factors influence the decision-making process within M&S, emphasizing the importance of adapting to market conditions and consumer demands. The report concludes that understanding the business environment is crucial for M&S to maintain its market position and achieve sustainable growth.

Business and the Business Environment

INTRODUCTION
 Business environment is basically referred the internal as well as external analysis
which affects the entire organisation. Usually, business environment consists of
different factors, provide the best alterations approaches accordingly.

By using Pestle analysis, identify the macro environment factors that Impact on
M&S, highlighting the positive as well as negative impacts.
 Pestle Analysis- it is based on the strategic framework or tool of macro-
environmental factors used in the scanning component of strategic management.
This type of strategic framework is mainly focused on the political, Economic,
social and technological factors that includes additional assessment of
environment. This will help for directly impacting on the business performance.

Cont.
 Political-While M&S has been adopting free trade policies which become
consider as massive political benefits for organisation. But due to Covid-19,
different policies are may soon no longer apply to M&S. it is expected that
recession will reduce the production and sales in marketplace. Through Brexit, it
may lead to heightened production price for M&S. Positive aspect of political
factor is that when M&S will try to expand online business which can possible
through political parties in UK. These are helping to maintain the strong brand
position in marketplace.

Cont.
 Economic-M&S is indeed as retail giant, Current market trend in UK is
continuously moving towards Small retail stores. These type of physical stores are
providing low mark-up, thereby it allows M&S to retain their premium status.
However, a large populations of UK are mainly focused on preferred to choose
local retail stores. Therefore, it become great opportunity of M&S to attract more
consumer towards stores. Another way, negative aspect is that when M&S target
audience but budget would may create a direct threat. It is not able to devise a
mean of combating price or cost related threats.

Cont.
 Social-In UK, M&S is a leading organisation in marketplace but its longstanding
existence, which is not only call a brand of youth. Because many people
associated in past and then move to another brand. This kind of possibility has
been occurred due to the demand of consumers, traditions etc. these are directly
affecting on the M&S. On the other hand, M&S is always implementing
innovative idea in their business so that it can easily maintain tradition or demand
of consumers.

SWOT analysis to M&S
SWOT analysis is based on the strategic planning technique or method that help to determine strength,
weakness of enterprise.
Strength
 M&S is offering the best quality of product as well as service in global marketplace
 The company is used the highly effective Social responsibility to handle the entire business performance.
 M&S is strongly focused on enhancing the consumer experience
Weakness
 At certain point, M&S has been face a poor financial performance.
 M&S is too much reliance on UK markets, which make it become vulnerable to market condition or
situation in UK.

Cont.
Threat
 M&S has face a threat of economic recession because of Covid-19 and Brexit. It
reduce the production or sales of M&S.
 A continuously changing the trends in clothing space.
Opportunities
 M&S has planned to invest the business expansion in different countries.
 Online presence of M&S is boosting the market position.
 M&S is re-shaping their clothes on the basis of segmentation.

Key finding of internal or external analysis, Explain how they influence on the
decision-making process.
 As per discussion, it has been identified that external or internal analysis
represents the wider business environment of M&S. politics, competitors, and
economy and even environmental in regards of weather, which are all
uncontrollable that can influence M&S performance. Moreover, it is also helping
the business owner of M&S to make an effective decision in regards of business
growth and development in future. That’s why, it has been examined the current
condition of M&S where implementing innovative approach so that it influence
on decision-making. There are various important decisions taken by owner of
M&S.

CONCLUSION
 From above discussion, it has concluded that Business environment plays
important role in internal and external analysis so that it become easier for M&S
to find current condition or situation of enterprise. in this report, it has been
summarised about the macro-environment factor through pestle analysis and also
identify their significant impact on the M&S in positive as well as negative
manner. Furthermore, it has been analysed that SWOT analysis helping within
interrelationship with external factors. However, it also summarised the key
finding of internal or external which influence on the decision-making process.

REFERENCES
 Contractor, F.J. N. and et.al., 2020. How do country regulations and business
environment impact foreign direct investment (FDI) inflows?. International
Business Review. 29(2). p.101640.
 Gogokhia, T. and Berulava, G., 2020. Business environment reforms, innovation
and firm productivity in transition economies. Eurasian Business Review. pp.1-
25.

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