Strategic Analysis of Marks & Spencer: PESTEL, SWOT & Leadership

This report provides a comprehensive analysis of Marks and Spencer's business environment, utilizing SWOT and PESTEL frameworks to evaluate its strengths, weaknesses, opportunities, and threats, as well as the impact of political, economic, social, technological, legal, and environmental factors. It examines how changes in these PESTEL factors influence the business and critically assesses the company's strategies for leveraging its strengths to mitigate threats and address weaknesses in order to capitalize on opportunities. The report also recommends a suitable leadership style based on Daniel Goleman's model, emphasizing democratic leadership, to align with the company's business objectives. Furthermore, it comments on Marks and Spencer's Corporate Social Responsibilities, highlighting their commitment to sustainable practices and ethical considerations in their operations. Desklib offers a variety of similar solved assignments and resources for students.

Business Context

Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4
Perform a SWOT and PESTEL analysis of Marks and Spencer.................................................4
PESTEL analysis of Marks and Spencer.....................................................................................4
SWOT analysis of Marks and Spencer........................................................................................7
how the changes in PESTEL factors has influenced the Opportunities and Threats business.
Critically comment on how the company is addressing their Strengths to negate Threats and
Weakness affecting their Opportunities.......................................................................................9
A suitable leadership style from Daniel Goleman’s (2000) leadership styles that according to
you will help them meet their business objectives. Justify choice using appropriate literature
and examples..............................................................................................................................10
Comment on their Corporate Social Responsibilities in the processes......................................12
CONCLUSION..............................................................................................................................13
References .....................................................................................................................................14

INTRODUCTION
Business refers to an activity which is required by a person for purpose of producing or
selling products and service. It provides them opportunity to earn profit and income which helps
them to satisfy their personal needs (Boldrini and Antheaume, 2021). In order to carry out
business in makrut, managers of company need to perform different task and also needs to made
various decisions. Marks and Spencer are a multinational organisation which is based on UK and
providing different products like home products, clothing as well as food products to their
customers. It was founded in the year 1884 in UK by Michel Marks and Thomas Spencer. It is
providing its service in different parts of world and has different brands under their name. This
project report consists description of PESTEL and SWOT analysis of company. It also evaluates
ways in which changes in PESTEL analysis create influence over threat and opportunities for
business. Moreover, it consists recommendation for business to adopt a suitable leadership style
which helps them to meet their business objectives.

MAIN BODY
Perform a SWOT and PESTEL analysis of Marks and Spencer
PESTEL analysis of Marks and Spencer
PESTEL is an external environment analysis tool which helps business to identify
different factors present in external environment of business. It consists opportunity and threat
into different factors like legal, economic, social, environmental, political and technological
factors (Bressanelli, Saccani and Perona, 2020). It is an important framework for managers of
marks and Spencer which allow them to analyse impact of external environment over business. It
allows managers to identify factors that create risk for them and also assisting them for
developing different strategies for business. PESTEL analysis in context of Marks and Spencer is
mentioned below:
 Political Factors: Political factors are those factors which are related to interference of
government, their rules and regulation for business. Mark and Spencer are operating their
business in UK where they get various opportunity and threat for their business
(EzhilKumar, 2019). Government of UK is allowing free trade in their country which
provide good opportunity for business of Marks and Spencer. Due to covid-19 situation,
government made various regulation on business but after situation of pandemic,
government is providing support to business. It provides various opportunity for business
of Marks and Spencer which allow them to get growth in market place. Due to Brexit,
government has made various changes in their rules and regulation which create
problems for company as they need to made changes in their organisation. Marks and
Spencer is considering different legitimate of government which helps them to avoid
interferences of government in their organisation.
 Economic Factors: Economic factors are those factors which create impact over cost of
operation of company. It consists different factors like inflation rate, wages rate and other
aspects which create fluctuation in process of products and service of company (Jamil,
Vieira and Xavier, 2019). There is rise in inflation rate which create impact over cost of
company as company is providing their products and service due to which these factors
create problems for company. Brexit also create impact over economy of UK as due to it
there is rise in price of products and service of company. Crisis in economy of UK create

impact over business as it reduces purchasing power of people which does not allow them
to buy products and service of company.
 Social Factors: Social factors are another important factor which create impact over
business of Marks and Spencer. These factors consist cultures, values, norms and
demographic factors like age, income, gender and many more. These are important
factors for business as business is providing their business to society, so it is important
for an organisation to understand these factors. Marks and Spencer are one of oldest retail
chain which make its image as long standing it is not providing trendy clothes which is
highly in demand among their customers. It is not trending among young customers
which create impact over business as well as its market image. There is increase in
consumption of ready meal among people of UK which provide opportunity for managers
of Marks and Spencer which allow them to focus on that segment of their business.
 Technological Factors: Technological Factors are those which consist different things
like technological advancement, innovation, technological upgradation and others (Kogut
and Mejri, 2021). These are important factors for Marks and Spencer as it provides
competitive advantage to them by allowing them to differentiate their products and
service to others. It also provides benefits to firm to reduce their cost of operation with
implementation of effective technology. Marks and Spencer are adopting self-checkout
system which allow them to save cost of company as they can save money to be spend on
cashier. It makes payment process much faster which helps them to enhance experience
of customers. Marks and Spencer are adopting digital technology as it is providing their
products and service at online platforms.
 Legal Factors: Legal factors are one which are related to different regulatory requirement.
There is different legal requirement in different countries over business and its operation
(Polese and Guazzo, 2021). In order to successfully carry out their operation, it is
important for managers of Marks and Spencer to follow all regulatory requirement. It
allows them avoid inference of government and regulatory bodies in business. There are
different laws related to employment and employees health an safety, food safety which
are needs t be followed by business of Marks and Spencer.
 Environmental Factors: Environmental aspect is also important for managers of Marks
and Spencer as there is increase in awareness among people of UK. Environmental

factors consist pollution, climate condition, weather and other aspects (Schwoon,
Schoeneborn and Scherer, 2021). It is important for managers of company to consider
these factors while operating in UK. It is one of organisation which is providing
sustainable products as well as environmentally friendly products which does not create
negative impact over environment. Marks and Spencer is adopting fair trade practices
while competing with other marketing players which are providing same products and
service.

SWOT analysis of Marks and Spencer
SWOT refers to an internal external analysis which helps business to evaluate different
aspects of business as it allows them to analyse competitive position of company and also helps
to develop strategic planning (Tillyer and Walter, 2019). It helps managers of marks and spencer
to analyse internal as well as external factors of business which helps them to identify current
and future potential in business. It helps business to facilitate fact based, realistic as well as data
driven look in an organization. SWOT analysis in context of Marks and Spencer is mentioned
below:
Strength Weakness
 Marks and Spencer is an organisation
which has clear brand image as it is
positioned themselves of high end
values products. It is one of
organisation which is targeting luxury
and premium segment of customers.
 Marks and Spencer have various brands
under their name like Vero Moda and
Versace, Louis Vuitton, Mark and
Spencer and many more (Wahl and
Morris, 2017).
 Marks and Spencer are one of
organisation which has diverse
employees as they are hiring employees
from different countries and culture. It
provides various advantage to company
as it provides them different
knowledge, learning and skills.
 Mark and Spencer is provoking their
products in Europe, US and UK. It has
their stores in Asia but is unsuccessful
for getting customers as there are
designing wester wear instead of
traditional.
 Marks and Spencer are fails to increase
satisfaction of customers which create
issues for them. Customers are facing
issues in context of return policy and in
store experience. It leads to increasing
brand switching, poor brand loyalty.
 Supply chain scalability is one of
weakness of Marks and Spencer. This
organisation is trying to provide
products and service through online
stores but it creates problems for
scalability of supply chain.
Opportunity Threat
 Marks and spencer are one of
organisation which can evolve new
segment for expansion of business.
 There is increasing competition in
market which create threat for business
of Marks and Spencer. Competitors

There is increasing demand of tradition
as well as ethnic wear in market of Asia
which provide opportunity to business
of Marks and Spencer as it allows them
to satisfy needs of customers.
 Company can expand their operation in
online platform. Online platform allow
company to expand their business
without investing much money. It helps
them to reach to many countries
without making much efforts.
create negative impact over profit and
market share of company. There are
different brands which are competing
with different brands like Zara, Tommy
Hilfiger, Uniqlo, Gap, Uniter Colours
of Benetton.
 There is changing trend in clothing
industry which create threat for
business of Marks and Spencer.
Changing trends in this industry
increase dead stock in company. It
creates threat for company and does not
allow them to increase profit.

how the changes in PESTEL factors has influenced the Opportunities and Threats business.
Critically comment on how the company is addressing their Strengths to negate Threats
and Weakness affecting their Opportunities
The macro environment is the major type of environment in corporate world which
directly or indirectly impacts on major operations of Marks and Spencer. It is the major
responsibility of a business to calculate effective and development related approaches which
helps in measuring organisational success (Johan and Valenzuela, 2021). Many companies in
the international market like Marks and Spencer, faces the following opportunities and threats:
 Opportunities: The business organisations face many opportunities at the marketplace
which are essential to be taken into consideration for business development. Main
opportunity faced by Marks and Spencer's expansion in the global marketplace. The other
main opportunity available to the business is marketing management which helps the
company to increase turnover (Kruczek and Szromek, 2020). Marks and Spencer is using
porter's growth strategy as a major strength to overcome different challenges related to
opportunities.
 Threats: It is compulsory for a company to analyse them in a systematic manner for long
term development of the basis. The threats are type of weaknesses of a business which
are arises at the marketplace. Company should maintain effective procedure and goals for
gaining desired development at the marketplace. The competitors are the major threat for
the Marks and Spencer. In this situation Marks and Spencer is choosing the best
leadership approach as its strength to face the major threats like competitors and risk
management.

A suitable leadership style from Daniel Goleman’s (2000) leadership styles that according to you
will help them meet their business objectives. Justify choice using appropriate literature
and examples.
The business should choose the effective leadership style in order to survive at the
marketplace with essential growth. This leadership style is important to be chosen by the top
level and strategic management of a business at the marketplace. The Daniel Goleman's model of
leadership style includes the different dimensions which are effective in business growth. The
leadership style in order to meet desired objectives is explained below:
Democratic leadership style
This is one of the major universally adopted style in which the leader formulates and
takes decision with the help of all team members This leadership style is effective in formulation
of the desired approach increases the employee participation. The democratic leadership style is
totally different from the autocratic leadership approach as this style doesn't takes into
consideration the decision of owner only (Marić, 2020). The democratic leadership style is also
helpful in developing the participation of employees in organisational functions. Marks and
Spencer uses democratic leadership style in order to develop and formulate major functions. The
different global companies of United Kingdom also uses this leadership style to succeed at
marketplace with competency edge. The advantages of Democratic leadership in order to meet
different objectives at the marketplace are mentioned below:
 Effective solutions- The business can provide effective solutions to the major problems
with the help of leadership related approaches (Miles, 2017). Effective solutions are the
major need of every organisation for the problems which are faced during functioning of
a business. The effective solutions to problem should find out in a systematic manner for
the development of whole business entity.
 Quick decision making- With the help of quick decision making in the company, the
business can expand at the marketplace in a short span of time. The quick decision
making is essential part of a business entity in order to make and formulate quick
operations (Richner and Olesen, 2019). The Marks and Spencer should develop an
effective approach which helps the company to perform quick market operations related
to decision making. It is major role of management of a business to in

 Risk elimination- The democratic leadership style take into consideration the role of
quick decision making in order to survive at the marketplace. The risk elimination is
possible with the desired application of major risk elimination method. Democratic
leadership takes into account various quick decisions which are helpful in providing the
desired changes after facing risk (Simons and Handl, 2019). Marks and Spencer should
also develop risk elimination while taking into consideration major goals and policies of
business growth. In the business environment risk is considered as one of the major
approach which is beneficial for proving higher returns to the company. Many
international companies take into consideration the risk elimination models, while
implementation of the major practices that will make business distinct.

Comment on their Corporate Social Responsibilities in the processes
The Corporate social responsibility is a major function of a business entity, in which the
organisation donates a fix percentage of profit to perform of employees. It is the ethical duty of a
busieness to develop desired CSR goals in order to survive at the marketplace. It is major
reponsibility of top level management and financial team of Marks and Spencer to include
Coporate social responsibility in an ethical manner for systematic growth of a business. The
economic and social development is majorly developed and facilitated by corporate social
responsibility in a major sense. It is not compulsory but ethical duty of companies operating in
UK to include the CSR with some percentage of share to grow at the marketplace. It is also
major role of a business to include CSR as an ethical duty in order to help the weaker sections of
the society (Suszyński, 2020). Marks and Spencer is performing corporate social responsibilities
in a significant manner for desired growth of the business. It is important for the business to
provide economic welfare in an effective manner for the systematic growth and development/
The corporate social responsibility is an effective fucntion of a business organisation to include
the development of shelter, food and cloths for the poor people. It is the moral role of
management of a company to follow ethics in implementation of the CSR related operations for
better growth of society (Yen and Lin, 2020). In the recent times, the importance of CSR has
increased with the rapid increase in operations for systematic growth of needy people in the
country. The management of Marks and Spencer mainly follow the ethical models which are
mainly helpful in performing CSR with honesty and integrity.