Business in Practice: An Analysis of Marks and Spencer's Environment

This report provides a comprehensive analysis of Marks and Spencer (M&S), examining its business environment through both internal and external lenses. The report begins with a SWOT analysis, identifying M&S's strengths, such as its corporate social responsibility, and weaknesses, such as limited...Read More

BUSINESS IN PRACTICE
Introduction
A business environment consists of both internal and external factors
that have positive and negative impact on the business functions. The
internal factors are the one that exist within the firm such as value
preposition, employee’s relationship, organizational structure and
many more whereas the external factors are the conditions that
happening outside the business such as political disputes and mergers,
customers, media and marketing etc.
The growth and development and the strategies of the organization
totally depend on both of these factors. The organization that has been
selected for the present report is Marks and Spencer. Marks and
Spencer are the Multinational brand headquarters at London, UK. The
company is the British multinational retailer that is bifurcated in
clothing, food products and the home products in the name of the
M&S.
SWOT Analysis
To recognize and understand the internal factors that impact the business of Marks and Spencer SWOT analysis is used.
Strengths: Highly effective corporate social responsibility is one of the major strengths that M&S owns being such a
high valued brand. The company aims at becoming the leading sustainable brand by updating its goals, mission on the
basis of environmental sustainability and improving the lives of the employees.
Weaknesses: No investment in new technology is the weakness that company has which in return reduces the chances of
expansion in new market. The company has no vision for putting money in technology to integrate across the board.
Opportunities: Healthy eating habit among the consumers is the opportunity for Marks and Spencer to innovate new
food products that are healthy and organic.
Threats: The competitors are the biggest threat of the Marks and Spencer. The big brands like ZARA, H&M are giving
the tough competition to M&S by expanding their business more sustainably and with latest trends.

BUSINESS IN PRACTICE
External Environment
Political factors: The free trade policy between the multiple countries
is a big opportunity for the companies like Marks and Spencer that
expands their business globally as this factor opens new market for the
company to diversify its business by market penetration.
Economic factors: The retail sector of UK in which Marks and
Spencer operates is quite sensitive towards economic recession due to
the global pandemic.
Social factors: The changing social trends are the major factor that
impact the supply and demand of the company's product as fashion
industry is changing rapidly.
Technological factors: When covid-19 hit the world there was
complete shutdown of all the businesses which also started the stores
of Marks and Spencer in various shopping malls.
Impact of some external factors on business
Competitors: Competitors like Zara, H&M, Tesco, Aldi etc. Bring the major impact on the business of the Marks and
Spencer in terms of price, new trends and their strategies.
Consumers: The changing trend among the consumers and the buyers related to the clothing food products and Home
appliances has a significant impact over the business of Marks and Spencer as rapid change in the consumer behavior
forcing the company to bring consistently new and innovative products.
Suppliers: Suppliers are considered as the most important external factor in the business organization where most of the
raw materials are delivered by the suppliers from all over the world.
Conclusion
It is concluded from the above report that analyzing the internal and external factors of the business that influence the
overall business function has become very important in order to analyze the opportunities and threats that a organization
may encounter in future as a impact of these factors. In the retail industry technology has become such important
external as well as internal factor of the macro environment in order to expand business globally. Along with that the
concern for environment among stakeholders has transformed the business practices completely into the sustainable and
environmentally friendly way.
References:
de Moraes, C.C and et. al., 2020. Retail food waste: Mapping causes and reduction practices. Journal of Cleaner
Production. 256. p.120124.
Douma, E.T., 2020. Identifying and improving the internal and external information exchange for shipbuilding
processes.