M&S: Analysis of Internal and External Business Environment Factors

This report provides an analysis of the internal and external environment of Marks & Spencer (M&S). It begins by outlining the internal factors, including physical assets, human resources, and financial resources, and their impact on the business. The report then delves into the external environment, utilizing PESTEL analysis to examine political, economic, social, technological, environmental, and legal factors influencing M&S. The report highlights the impact of political factors, such as trade regulations, and economic factors like competition and pricing strategies. It emphasizes how M&S adapts to changing customer trends and addresses cost disadvantages through strategic measures like optimizing logistics and supplier networks. The conclusion underscores the importance of understanding these factors for competitive advantage, referencing key academic papers and journals.

Introduction
Business environment comprises of internal and
external factors which can create an impact on
the managerial activities of the business. Such
internal and external environment factors can
create an impact on the performance and
profitability of the organisation (del Carmen
Xotlanihua-Gervacio and et.al, 2019).
INTERNAL AND EXTERNAL ENVIRONMENT OF MARKS AND
SPENCER
External Environment
For analyzing the impact of external environment on M&S,
PESTEL analysis is used which is discussed below:
Political factors- Political factors such as flow of trade and
foreign trade regulation have created an impact on the
business. M&S can import and export their products to
different countries easily with the help of foreign trade
policy which will help in generating higher profits. Due to
higher pricing strategy and cost structure, this have
created a huge impact on the company as competitors
ginned more benefit and maximized their market share by
offering products at reasonable prices (Kim and Jang,
2016).
Economic factors- The competitors of M&S are consumer
centric and specialized in niche market through which they
can offer more customer satisfaction by offering products
at reasonable prices (Kim and Jang, 2016). The competitor
companies focus on importing their products through
which they can save cost and M&S face challenge and cost
disadvantages as the company focuses on delivering high
and premium quality products and services to their
customers.
Social factors, Technological factors, Environmental
factors and Legal factors.
How the company impact its
context External Environment
Marks and Spencer focused on changing
customer trends through which they can offer
products which can offer optimum customer
satisfaction and make the business more
profitable. The cost disadvantage which was
faced by M&S can be minimized through
channelizing all logistics services and through
using more suppliers and distributors will be
helpful in reducing such cost.Internal Factors
References
del Carmen Xotlanihua-Gervacio, M and et.al., 2019.
Relationship between internal and external factors and the
activity of PON1. Environmental Science and Pollution
Research. 26(24). pp.24946-24957.
Fernández-Olmos, M. and Ramírez-Alesón, M., 2017. How
internal and external factors influence the dynamics of SME
technology collaboration networks over
• Brand image
• Plans and
policies
• Intangible
• Financial
Resources
• Physical Assets
• Human Resource
Strengths Weakness
ThreatsOpportunity
Conclusion
From the poster, it can be concluded that several internal
and external environment factors of business create a huge
impact on the operations, performance, productivity and
profitability of the company. M&S use several measures
through which the company can identify the impact of such
factors and take necessary measures which will help the
company in gaining competitive advantage.