Marks & Spencer: External Environment PESTEL Analysis Report

This report presents a PESTEL analysis of Marks & Spencer, examining the external environment affecting the company's operations. The introduction defines the global business environment and emphasizes its importance for strategic planning. The main body delves into the six factors of the PESTEL framework: political, economic, social, technological, environmental, and legal. Each factor is analyzed, identifying both opportunities and threats for Marks & Spencer. For instance, the political factors include free trade opportunities and pricing norm threats, while economic factors consider exchange rate stability and inflation. The social factors address consumer desires, and technological factors explore online shopping and technology diffusion. Environmental factors consider waste management, and legal factors cover taxation and employment standards. The conclusion summarizes the significance of external environment analysis for informed decision-making. The report references several academic sources to support its analysis.

Portfolio

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
External Environment..................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
Global business environment is defined as atmosphere wherein entity is operating as well as
performing activities of business. Moreover, this is vital for firm to determine and examine
enterprise surroundings for formulating appropriate tactics (Cepel and et. al., 2020). This report
is based upon Marks & Spencer. It deals into retail market and sells clothing, home product and
others. The main aim of this report is to perform PESTEL analysis.
MAIN BODY
External Environment
The analysis of external environment is primarily examination that assists to find extrinsic
forces that may have impact on business decision making.
 Political factor: Marks & Spencer is considering as well known retailer that render
effective quality product to their audiences. This targets global market wherein it has to
carry out political practices into its business growth plan (Coeurderoy, 2020).
o Opportunity: The main affirmative recent politics is free trade has been boosted
within many countries that can be opportunities for M&S.
o Threat: The changes in pricing norms.
 Economical factor: Marks & Spencer renders engagement within UK’s economy growth
by rendering much job opportunities to individuals.
o Opportunity: Stability within exchange rates of United Kingdom’s economy.
o Threat: Maximisation in inflation rate into UK can be main threat for M&S.
 Social factor: It affects retailer involving modification as per level of income, gender etc.
thus, Marks & Spencer have to amend their norms based upon changes within clients’
desires.
o Opportunity: Proficient staff can increase opportunity to render quality products
to targeted audiences.
o Threat: Continuous changes in audience desires.
 Technological factor: At recent times, technology enhancement has to be implemented
by company to be competitive in market (Morrish and Earl, 2020).
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o Opportunity: The maximisation in the interest of online shopping into audiences
can be opportunity for M&S in order to build direct connection among worldwide
customers.
o Threat: The diffusion rate of technology is major threat for M&S.
 Environmental factor: Several nations and market have their ecological norms that have
to be take on by Marks & Spencer while conducting business functions in another nation.
o Opportunity: The multitude of ecological factor that are present within the service
of M&S is consider as a key opportunity for them.
o Threat: M&S poor waste management tactics is main threats for M&S as this may
slow down their sales.
 Legal factor: The changes in UK’s government norms such as taxation policies and
others may have affects upon Marks & Spencer enterprises (Ratten, 2020). Opportunity
and threats of Marks & Spencer are:
o Opportunity: Higher employment norms standards.
o Threat: Minimisation in audience number due to unethical activities identification
CONCLUSION
Based upon above report, it can be summarised that external environment analysis is
undertaken through which firm may become competent for identifying the impact of external
forces upon its decision making.
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REFERENCES
Books and Journal
Cepel, M. and et. al., 2020. BUSINESS ENVIRONMENT QUALITY MODEL IN THE SME
SEGMENT. Transformations in Business & Economics, 19(1).
Coeurderoy, R., 2020. The new global road map: Enduring strategies in turbulent times.
Morrish, S. C. and Earl, A., 2020. Networks, institutional environment and firm
internationalization. Journal of Business & Industrial Marketing.
Ratten, V., 2020. Coronavirus and international business: An entrepreneurial ecosystem
perspective. Thunderbird International Business Review, 62(5), pp.629-634.
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