Marks & Spencer Business Environment: A Detailed PESTLE Analysis

This report provides a PESTLE analysis of Marks & Spencer's business environment, examining the political, economic, social, technological, legal, and environmental factors that impact the company's operations. It highlights the influence of free trade, economic crises, social trends, technological advancements, and environmental policies on Marks & Spencer's strategies and performance. The analysis concludes that understanding and adapting to the dynamic business environment is crucial for the company's long-term growth and success. Desklib offers a range of similar solved assignments and past papers for students.

Introduction to Business
Environment

Table of content
 Introduction
 PESTLE Analysis
 Conclusion
 References

Introduction
 Business environment is the collection of internal
and external factors as well from which the
external factors are beyond the control of business
and they impact the functioning of company.
 It undertakes the customers, suppliers,
government, technological, social and other
factors. Business environment is dynamic in
nature, unpredictable and also keeps in changing.

PESTLE Analysis
 PESTLE framework is used to gain the proper image of
industry or business market as it permits the company to
form an effective impression of factors that leads to impact
the new business.
 This framework is helpful in terms of offering the effective
vision to people towards the external factors that impact the
functioning of company.
 PESTLE framework is flexible and due to this, companies
can use it in the range of several scenarios.

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Political:
 Factors which are somehow related with the government
intervention in the business are considered under this category.
These factors highly influence and impact the operations of the
business.
 Marks and Spencer is however impacted by free trade refers to the
situation where the government relives the restrictions and allow
businesses across the borders to deal easily and effectively (Marks
and Spencer PESTLE Analysis, 2019).

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 Marks and Spencer is running their business operations across
the world due to which there is high frequency of import and
export in the business.
 Free trade allows them to easily transport their material from
one country to another with minimal restrictions and taxes
applicable on the clothing products. This positively impacts
the profitability and operations of Marks and Spencer.

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Economic:
 These factors undertake the inflation rates, foreign exchange
rates, economic growth and so on. United Kingdom has one of
the largest economies in the world and an open economy.
 For this, the monetary and fiscal policies of UK are effectively
managed as the government has strong investors and properly
maintain the inflation rate.

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 Marks and Spencer have been impacted by the crisis as the
company had to cut off the job of 2% of their staff around
70,000 employees.
 Hence, the recession impacted the ability of company to give
discounts as the company scrapped off the beginning concept
and idea about the offering of discount of 20% on Christmas
(Marks & Spencer PESTLE Analysis. 2019).

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Social:
 Factors that are associated with the society in which the
business operates are considered in this category.
 Social factors which impact the sales and profitability of the
company include Social-trends as this trend of the society
towards the products and services offered in the market is one
of most essential aspect of the business.

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 It will put a positive impact Marks and Spencer, if the social-
trends are in the favour of the company's product or the
company is able to adapt to the changing fashion and styles in
clothing industry.
 It will negatively impact in case the company is unable to
adapt to the changes in the trends and behaviour of the
customers and thus it will result in dead stock and the business
will lose a lot of capital.

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Technological:
 The change or advancement in the technological field are
considered under this category. There are several innovations in the
field of production and distribution techniques which is essential for
the businesses to adopt.
 One of the major factor that impacts the operation of Marks and
Spencer include Online shopping as advancement in IT field has
enabled the mankind to shop anything from the ease of their homes.

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Legal:
 The legislations of each and every country are ever changing as the
Marks and Spencer continuously organize training sessions on the
significant areas like health and also update to the employees every
single year in terms of keeping their updated regarding the present
laws and legislations.
 Despite from this, Marks and Spencer came under the public
scrutiny when they were accused in terms of failing to protect their
employees and workers from the risk of exposure to asbestos.