Marks & Spencer: Comprehensive Analysis of Business Context Report

This report provides a comprehensive analysis of Marks & Spencer's business context, utilizing SWOT and PESTLE frameworks to evaluate the company's internal strengths and weaknesses, as well as external opportunities and threats. The SWOT analysis identifies Marks & Spencer's recognized brand and multinational presence as key strengths, while declining sales and high costs are noted as weaknesses. Opportunities for global expansion and market segmentation are highlighted, alongside threats from high competition and changing fashion trends. The PESTLE analysis examines political, economic, social, technological, legal, and environmental factors impacting the company, including the effects of Brexit, changing consumer preferences, and the importance of sustainable retail practices. The report further explores how Marks & Spencer can leverage its strengths to overcome weaknesses and threats, discusses the adoption of participative leadership styles, and emphasizes the importance of corporate social responsibility in maintaining brand image and environmental sustainability. The analysis concludes with recommendations for strategic adjustments to ensure future success in a competitive market.

Context of Business

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................1
INTRODUCTION...........................................................................................................................1
SWOT ANALYSIS ....................................................................................................................2
PESTLE ANALYSIS .................................................................................................................3
Changes in pestle that can create the opportunity and threat .....................................................4
How company can use its strengths to overcome the weakness and threats...............................6
leadership styles .........................................................................................................................6
Corporate social responsibility ...................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10

EXECUTIVE SUMMARY
Marks and Spencer is a multinational British retailer which deals in clothing, home
products and food products. It is headquartered in London, England. It has 1463 number of
employees in its organisation across the world. The company was founded by Michael marks
and Thomas Spencer in 1884. it has brought the various brands such as good move, Rosie, M&S
collection, autograph, Per Una under one roof for its customers. It is important for the company
to evaluate the SWOT analysis so that it can find the strengths and apply these strengths to
overcome with the threats and weakness of the company. By using the swot analysis tool the
company will able to know what are the options available in future and it can expand is business
by developing it and its strategies. Another tool used here in this report is pestle analysis for the
business organisation to find out the external factors which have the impact on the operations of
the business enterprise. It is observed that the external factors can have a huge impact. For
example the technology factor has impacted the company. Marks and Spencer was depended on
the manual process which was very time consuming and now a days customers prefer the designs
which are machinery and exclusive.(Alonso‐Almeida, Perramon and Bagur‐Femenias, 2017). So
in this case the company tried to adopt the new technologies in order to meet the customers
demand and preferences. The organisation is adopting the participative leadership style to
motivate employees and also practising the corporate social responsibility to keep the
environment healthy and the image of the brand.
INTRODUCTION
Business refers to the entity or the organisation which is engaged in commercial,
industrial or professional activities. It can be profit or non- profit organisations, Before starting
any kind of business a plan is required which include the strategies that need to be considered to
achieve the goals and objectives. Also every business need to be aware about the environment
and the rules and regulations or the government policies to conduct the operations for the
organisation. Business environment is the collection of the internal and external factors which
can influence the business enterprise. The operations and functions might get affected by the
factors. So in order to avoid the threats every organisation need to analyse the external factors
and take necessary precautions. Marks and Spencer is a British multinational retailer brand in

fashion industry which is headquartered in London, England. The company was founded in 1884
by Michael marks and Thomas Spencer(Boone, Kurtz and Berston, 2019). This report will
include the executive summary, swot analysis, pestle analysis, changes required in the pestle,
how the company can use its strength to overcome the weakn3ess and threats, leadership styles
which can be adopted by the company and lastly corporate social responsibility practices by the
business organisation.
SWOT ANALYSIS
It is a tool used by the business organisations to analyse the best part company has and
what are the future options available for the company so that it can grow and become successful
business organisation. Also it includes the weakness and threats of the organisations in order to
overcome these for the business organisation.
Strengths Weaknesses
Recognised brand- Marks and Spencer is a
well known brand providing quality of
products to the customers in the market.
According to the statistics the company is
considered the second most popular super
market in United Kingdom.
Multinational company- It does not only have
online stores but also has physical stores in
Asia, Europe and middle East. It has 1463
outlets across the world from which 1093 are
situated in United Kingdom. It is expanded
worldwide with its existence of both online and
offline stores.
Declining sales- The sale in some of the stores
of the company was declining due to the poor
supply chain system and the non availability of
the products. This usually happened during the
Christmas season, the organisation was not
able to meet the demand of the customers
which impacted in the brand image of the
company.
High cost- This is considered as one of the
major draw back for the company is that it is
heavily dependent on the manual operations
which is costly and consumes more time.
Opportunities Threats
Global expansion- As Marks and Spencer is a
multinational brand and it has opened up the
stores in many countries such as Russia, Brazil,
High competition- The retail market in United
Kingdom is very competitive. The main
competitors of marks and Spencer are John

Poland etc. so now it need to expand its
business in these countries by playing an active
role and increasing more branches in those
countries.
Market segmentation- It is observed that the
company follows the same policies in its mega
stores everywhere. It need to follow the
customer segmentation policy which would
serve the company in different aspects such as
marinating the cost and increase in profits.
Lewis, ASDA, Morrisons. If the company
doesn't change its strategies then there is a risk
of the competitors can grab the huge market
share.
Change in trends- It is observed that there is a
vast change seen the fashion industry. Which a
threat to the business organisation. The
customer preferences are changing and they
want the modern touch in the clothing with the
exclusive designs so that they look different in
their appearance among their friend relatives.
PESTLE ANALYSIS
It is a tool used by the business organisation to gain a macro picture of the industry
environment. It included the analysis of the external factors which may influence the operations
and functions of the business organisation. There are six factors which is discussed below in
context of marks and Spencer(Damodaran, 2018).
• Political- These factors are determine to the extent to which government policies may
influence the business organisation. Such factors include tax policy, trade restrictions,
tariffs etc. The Brexit move impacted Marks and Spencer in shipping out of England. It
increased the4 cost of the products which made to loose the customers for the company.
• Economic- These factors are determine to the economy performance that directly impacts
the industry or the business organisation in the long terms. Such factors include the
inflation rate, economic growth or decline, unemployment etc. AS the current market in
United kingdom is shifting towards the local market. So in this case the company is
affected as it deals in premium products(Boone, Kurtz and Berston, 2019).
• Social- These factors are useful for the business organisation to make a better strategic
plan which is according to the change and trend observed in the market. Such factors
include change in lifestyle, cultural norms and expectations, attitude and behaviour etc.

As Marks and Spencer use to focus on the clothes for the people above age of 30 but now
the trend is changing. The youth prefer to modern and transformed clothes which are
fashionable and trendy. This impacted the company and in order to meet the demand it
developed its products and tried to bring the apparels which are for the youths.
• Technological- These factors are concerned with the innovation and development in the
environment have impacted the business organisations. Such factors include artificial
intelligence, machine learning etc. As the modern day retail stores are emerging and
changing in terms of technology. The introduction of self check out based retail is
something new which has taken current market into new development. Marks and
Spencer is planning to introduce such strategies which can increase it sales and is
convenient for its customers(Freeman, Parmar and Martin, 2020).
• Legal- These factors have both internal and external sides which means that certain laws
can have a impact on the business organisation or an industry. Such factors include
changes in legislation, laws on the specific industry, laws related to the employees safely
etc. Marks and Spencer have been impacted due to several legal issues. This made hard
for the company to solve it and also impacted its brand image. The change in Britain's
trade laws affected the company.
• Environment- These factors are concerned with the affects of the surroundings in the
environment that can affect the ecological aspects for the business organisations. Such
factors include environmental protection laws, sustainable development, waste disposable
laws etc. As Marks and Spencer is itself a luxury brand it needs to consider the
environment safety issued which might affect due to its manufacturing of the products.
For this the company has promoted a concept of sustainable retail industry in which it
need to be careful about the production processes which can be harmful for the
society(Gilligan and Lowe, 2018).
Changes in pestle that can create the opportunity and threat
Factors Opportunity Threats
Political – Brexit The Brexit move allowed the
marks and Spencer to expand
The trade restrictions was also
becoming a threat for the

its business beyond the
European union.(Jabbarova,
2020).
company as the imports and
excise duty was rising which
lead to increase in the cost of
the products d this impacted in
the sales of the company.
Economic- inflation rate The increase in the prices of
the products after the Brexit
move created the opportunity
for Marks and Spencer to
increase its profits.
At the time time the increase
in the prices the brand has loss
many customers after the
covid situation because people
were not having that much
income and the company deals
in the luxury products.
Social- change in lifestyle As Marks and Spencer was not
dealing in the clothes for the
youngsters. So after observing
the trend and change in
lifestyle people were
demanding for the fashionable
clothes with the exclusive
designs. This created an
opportunity for the company to
develop its products and bring
according to the choices of the
youth.
At the same time it was also a
threat for the company as it
has many competitors who
were dealing in the etailr with
the new patterns and designs.
It was difficult for the
company to introduce the new
products according to the
preferences of the youth(Lee
and et.al., 2018).
Technological- machinery The use of the machinery and
self designs is the opportunity
for the company to create the
different design and pattern in
the clothing. This will attract
the customers and create the
The more technology is
evolving it is very difficult for
the marks and Spencer to
manage the financial resources
as the cost of production
increases and this create the

brand value. rise in the prices which might
lead to loose customers for the
company.
Legal- employment safety
laws
This can create the opportunity
for attracting the employees as
the company can benefit the
employees with taking
necessary precautions and
following the guidelines which
is proposed by the government
related to employment safety.
If Marks and Spencer does not
practices the safety measure
for its employees than it can be
threat to the company and has
to bear the huge loss. As the
processes can harm the labour
and it is necessary to take
precautions.
Environment- sustainable
development
The company practices the
sustainable development for
the environment which is
creating a good image of the
company. This leads to the
brand image and the
organisation is able to attract
more customers because it is
environment friendly.
The company manufacturing
process can be harmful for
the3 society. As the production
process of the products can
create the carbon footprint
which is harmful for the
environment and this can
create issues for the company.
How company can use its strengths to overcome the weakness and threats
Marks and Spencer has various strengths such as it is known for the quality of the
products it is serving to its customers. The company is a multinational well known brand in the
United Kingdom and it is the strength for the organisation which is the opportunity for the
company to expand its business in the areas where it is not able to concentrate. It can increase the
operations and productivity beyond the boundaries where the geographical and demographic
factors are in support for the business organisation(Manning, 2018).The company need to
overcome with its weakness such as decline in sales. This was due to the poor supply chain
system in the organisation. So in this case the company can make use of new technologies and

and improve its supply chain and make the proper availability of the products in every stores
across rte world. Also as the company has good finances it can use the new methods and
machinery for the production process of the product and create a exclusive designs which will
attract the new customers. The biggest threat for the company is its competitors such as ASDA,
Burberry etc. but Marks and Spencer need not to worry about it has the company is well known
for its products and services. Also the company can use various other platforms such as it can
increased the reach of the online website in order to target more customers.
leadership styles
This included the behavioural patter which should be adopted by the leader in order to
influence the behaviour of the employees and its subordinates. The behaviour of the employees
depends on the dire3ctions given by the leader. The leader should be clear with the goals that
need to be accomplished and need to motivates its subordinates so that they can work effectively
and efficiently. Below are some leadership styles discussed:
• Participative leadership style- This leadership style focuses on the involvement of the
team members. The leader is responsible for guiding the employees with proper
instructions. The leader should allow its subordinates to actively participate in the
decision making of the business enterprise. They should ask for the suggestions of the
teams in order to bring the change and development in any specific functional area of the
organisation. This will motivate the employees and they will work effectively and
efficiently(Qadir and Yeşiltaş, 2020).
• Transformational leadership style- This style focuses on that the leader should inspires
its subordinates with a vision and then encourage them to achieve the goals of the
organisation. The leader serve as the role model for the subordinates in order to motivate
them and complete the task on the right time. This styles helps the business organisation
in placing the high value on the corporate vision.
It is suggested that the Marks and Spencer can adopt the participative l;leadership style in order
to achieve the goals of the organisation. The leader can allow its subordinates in the decision
making. For example in the company plans to expand its business the staff memnbers of every
different area can suggest which are needs to be modified and requires the development. This can
help the leader to know the insights before expanding the business. Also the employees will be

motivated if they are actively working and the leader does not differentiate them on the basis if
the designation and authority. This style will help the company in achieving its targets as the
employees will be happy and feel motivated if the leader asks for their suggestions(Sanda and
Arthur, 2017).
Corporate social responsibility
Concept- this is a self regulating business model that helps the business organisation to
be socially accountable to itself. Its stakeholders and the general public. Every business
organisation should practice such methods so that they ca contribute something to the
environment and the affect it is creating to the surroundings. By adopting social responsibility
the business organisation is able to create a good image that the organisation considers the
aspects and is aware about the jarful affects which can be dangerous to the society.
Its impact – The corporate social responsibility practices impact in various domains. The
business organisations take steps to improve the environmental sustainability of their operations.
They use various methods such as installing renewable energy sources and purchasing carbon
offsets in order to manage supply chains(Schmitt and Gischler, 2017).
Why should companies implement CSR- It is very integral part for the business
organisation because it is believed that the customers would more likely to business with the
brands which are perceive to be more ethical. The corporate social responsibility practices can be
the important component in maintaining the corporate public relation for the business
organisations.
What practices is taken by Marks and Spencer
Marks and spender has always taken responsibilities towards its customers, stakeholders,
employees and suppliers on a serious note. It provides the quality of service to its customers.
Marks & Spencer has always taken responsibilities to customers, employees, partners,
suppliers and local communities seriously. Doing business in a responsible way
underpins their values - Quality, Service, Innovation and Trust(Sivalingam, 2018). This
section tells you how they manage social, environmental and ethical issues across the
business.
The business organisation today is arduously taking care of every sensitive issue of the
society be it charity for the society, issue relevant to climatic changes, industrial waste

management, sustainable raw material management or health people and ethical
trading(Wood, and Logsdon, 2019).
CONCLUSION
From the above report it is concluded that to conduct a business a business plan is
required which includes a strategic planning of the business and its various activities that need to
be performed. Also it is important to make the clear goals of the organisation that need to be
achieved. At the same time if the business plan is taken and the to operate the business the
manager need to be aware about the external factors which have the influence on the business
enterprise. The Marks and Spencer has done swot analysis to find its strength, weaknesses ,
opportunities and threats in order to achieve the growth for the company. The another method it
has adopted is the analysis which can be done by using a tool called pestle analysis. It will help
the Marks and Spencer to analyse its external factors which can affects its operations and in case
it can take necessary steps to avoid such factors. After analysing the external factors there ae
various opportunities and threats that can be considered for the Marks and Spencer. Also for the
smooth functioning the company need to adopt the participative leadership style in order to
motivate its employees. The company also practices corporate social responsibility towards the
environment which have helped it to create a good image in the market.
REFERENCES

Books and Journals
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corporate social responsibility management: Analysis from a gender
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Damodaran, H., 2018. India's new capitalists: caste, business, and industry in a modern nation.
Hachette India.
Freeman, R.E., Parmar, B.L. and Martin, K., 2020. BUSINESS AND ETHICS (pp. 129-140).
Columbia University Press.
Gilligan, C. and Lowe, R., 2018. Marketing and general practice. CRC Press.
Jabbarova, A., 2020. Formation Of Professional Competencies In The Course Of Preparing And
Conducting Business Games In English Classes. Архив Научных Публикаций JSPI.
Lee, K.H. and et.al., 2018. Facile solid-state synthesis of oxidation-resistant metal nanoparticles
at ambient conditions. Solid State Sciences, 79, pp.38-47.
Manning, L., 2018. Corporate social responsibility. In Food ethics education (pp. 121-146).
Springer, Cham.
Qadir, K.H. and Yeşiltaş, M., 2020. Effect of leadership styles on organizational commitment
and performance in small-and medium-sized enterprises in Iraqi Kurdistan. Social
Behavior and Personality: an international journal. 48(9). pp.1-12.
Sanda, A. and Arthur, N.A.D., 2017. Relational impact of authentic and transactional leadership
styles on employee creativity: The role of work-related flow and climate for
innovation. African Journal of Economic and Management Studies.
Schmitt, D. and Gischler, E., 2017. Recent sedimentary facies of Roatan (Bay Islands,
Honduras), a Caribbean oceanic barrier reef system. Facies, 63(1), pp.1-29.
Sivalingam, R., 2018. Strategic Management. Industry Analysis, Strategic Drift and Re-
Strategizing. GRIN Verlag.
Wood, D.J. and Logsdon, J.M., 2019. Social issues in management as a distinct field: Corporate
social responsibility and performance. Business & Society. 58(7). pp.1334-1357.
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