Global Business Environment: PESTLE Analysis of M&S (Marks & Spencer)

This report provides a PESTLE analysis of Marks & Spencer (M&S), a UK-based retail company, examining the political, economic, social, technological, environmental, and legal factors impacting its operations in the global business environment. It identifies key drivers of change for M&S, including consideration of laws, after-sales services, and the use of artificial intelligence. The analysis concludes that external factors have both positive and negative impacts on M&S, affecting sales, demand, productivity, and growth. The report recommends that M&S upgrade its services to maintain customer satisfaction and prioritize employee well-being.

Global Business Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Pestle Analysis-............................................................................................................................3
The key drivers of change of M&S-............................................................................................4
CONCLUSION................................................................................................................................4
RECOMMENDATION...................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Global Business Environment refers to the factors of internal and external environment
that affect the operations of company (Otenko and Parkhomenko, 2019). Mark and
Spenser(M&S) is UK based retail company that sells clothes, home and food products at stores
as well as online (Marks & Spencer, 2021). This report shows pestle analysis and the key drivers
of change of M&S.
MAIN BODY
Pestle Analysis-
PESTEL analysis refers to the impact of the external environmental factors on the growth
of the business (Jafari and Othman Soleiman, 2020). Following is the pestle analysis of Mark
and Spenser(M&S)-
Political Factors: This factor includes trade reforms, tax policies, etc. M&S is affected by the
taxes imposed on the over all generated revenue of the company that directly affect the sales of
its product. With the impact of Brexit on the UK economy, it may influence the business in a
negative way with the new tax reforms on free movement of goods and services.
Economical factor: These factors include inflation, interest rate, saving rate, etc. As UK faces
the problem of inflation these days that directly affect the M&S economy price and growth rate
(Nandonde, 2019). Brexit gave a negative impact on the economy as the interest rate and the
currency value of UK were shaky and promoting international businesses.
Social Factor: The main factor that affect the M&S is the changing trends of the customers in
the market. As the demand and preferences of customers are changing day by day affect the
productivity of the company.
Technological Factors: M&S facilitate the online shopping platform to their customers and this
gave a positive impact on the growth of the business as it increases the profit percentage of the
company.
Environmental Factors: M&S ensures that the company will not harm the environment and do
not violate any laws. Continuous change in the environmental factors such as climate, weather,
etc. gave the negative impact on the organization.

Legal Factors: M&S take training sessions of health and safety in order to know the current
rules and laws and tries to protect the employees from misshapen. This leads to company's
growth and success.
The key drivers of change of M&S-
Drivers of change means the pressure of internal or external environment that change the
shape of the firm (Annosi and et.al., 2021). This includes changes like designs, plans, products,
etc. The key drivers of change of M&S are as follows:
1. Consideration of laws- M&S must consider the rules, regulations and the laws for the
protection of their employees so that they can increase the efficiency and capability of
workers to do work (Orji, 2019). Safe, happy and satisfied employees or staff work with
their full potential and leads the organization towards growth and success.
2. After sales services- M&S must make the new plans and strategies so that they are able to
improve its after sales services. M&S need to upgrade the service quality in order to
achieve customer satisfaction. This will help the company to attract new customers and to
increase the profitability and productivity of the business.
3. Using Artifical Intelligence (AI)- M&S make a big change by experimenting with AI in
order to improve its in-store customer services.
4. New Partnership- M&S establish partnership with Founders Factory so that it can be able
to access new technologies.
CONCLUSION
From above discussion, it can be concluded that the external factors gave positive as well
as negative impact on M&S company. These factors affect the sales, demand and the
productivity and growth of M&S. Some key drivers of change that M&S must consider that the
company must make new plans in order to enhance its after sales services and also consider the
rules and laws related to the employees protection.
RECOMMENDATION
 M&S must upgrade its services in order to maintain the base of the customers and to
achieve customer satisfaction.
 M&S must put efforts to make their employees happy, safe and satisfied.

REFERENCES
Books and journals
Annosi, M.C. and et.al., 2021. Digitalization within food supply chains to prevent food waste.
Drivers, barriers and collaboration practices. Industrial Marketing Management. 93.
pp.208-220.
Jafari, H. and Othman Soleiman, K., 2020. Assessment of effective environmental factors in oil
and gas industry policies using PESTLE & SWOT analysis (case study: Kurdistan,
Iraq). Environmental Sciences. 18(3). pp.134-151.
Otenko, I. and Parkhomenko, N., 2019. Strategies of business systems development in global
environment. Scientific Annals of Economics and Business. 66(2). pp.153-166.
Orji, I.J., 2019. Examining barriers to organizational change for sustainability and drivers of
sustainable performance in the metal manufacturing industry. Resources, Conservation
and Recycling. 140. pp.102-114.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence. 38(4). pp.54-61.
Online references
Marks & Spencer, 2021. [Online]. Available through
<https://www.retail-week.com/companies/marks-and-spencer?authent=1>
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