Report: PESTLE Analysis of the Global Business Environment of M&S

This report presents an executive summary of a PESTLE analysis conducted on the Mark and Spencer (M&S) company, examining the external environmental factors impacting its global business operations. The analysis covers political, economic, social, technological, legal, and environmental factors. The political section discusses fair-trade agreements and the impact of Brexit. Economic factors such as inflation and its effects on consumer buying patterns are also analyzed. The social aspect highlights changing lifestyles and the adoption of credit card facilities. Technological factors include the implementation of software for data security and expansion. Legal considerations encompass health and safety regulations. Environmental factors highlight the sourcing of sustainable products. The report concludes with a summary of the opportunities and threats identified for M&S, providing insights into how the company can navigate its business environment.

Global Business Environment

Executive Summary
The report has been describing that how with the proper analysis of the business external environment by
using Pestle model help the M&S company in increasing the customer, growth, sales and revenue of the
business.
Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
PESTLE analysis of the Mark and Spencer company.............................................................................3
CONCLUSION...........................................................................................................................................4
REFERENCES............................................................................................................................................5
Appendix.....................................................................................................................................................5

INTRODUCTION
Analysing the environmental factor which are constantly changing and affecting the business of daily
basis is the best way to know the company strength, weakness, opportunity and threats. With the help of
PESTLE model, the company can expand its business to the next level.
MAIN BODY
PESTLE analysis of the Mark and Spencer company
It is the model of the external environment analysis with the help of which the company can measure and
know the opportunities and risk available to them. The O&R is determinable in the term of political,
economic, social, technological, legal, environmental factor.
 Political: This is a factor which influence the decisions of the business and provide them either
opportunity and threat. This includes UK government policy, political stability, tax policy,
corruption etc. As per the Author opinion because of the fair-trade agreement with the EU help
the company in reducing their sourcing cost. To protect the company’s legitimate interest, the
M&S operate its business along with the government interaction. Because of Brexit, the company
faces its impact on the revenue which is generate from the Europe country (Bismark and et.al.,
2018).
 Economic: This factor includes the economic growth, inflation rate, disposal income,
unemployment rate etc. which affects the business operation. Because of the covid-19 and
financial crises the inflation rate is increasing day by day. The impact of this on the M&S
company is that the company need to make increment in their product and services and the
buying pattern of the company decreases. And the company start losing its customers and
revenue.
 Social: This factor includes population growth rate, lifestyle attitudes, cultural barrier etc. As the
technology is increasing day by day so the lifestyle of the customers also changes. Now they are
more used to of credit card facilities. So, in order to grab this opportunity, the M&S company
allowed its customer to pay them through credit cards and increases the sales and profitability of
the company (Bank, 2018).
 Technological: These factors involve the technology change, awareness, incentives, level of
automation etc. So, to increase the security of the data and information of the business and
expand the business in different foreign countries, the M&S company implement various
technological software in the head office and other branches. Technology partnership strengthen
the risk, security and compliances of the M&S.
 Legal: Legal factor includes the impact of copyright and patent law, health and safety law,
consumer protection law on the business. The company faces the challenge of the reduction in the
employees because the ceiling tile of the company fall down on their employees which contain
the cancer-causing materials. This act is against the Health and Safety at work Act 1974 and also
fined the penalty.
 Environmental: The factor such as weather, climate, environmental policies have huge impact
on the operation of the products and services. So, to increase their brand image the M&S
company sources the fresh milk from RSPCA which is an assured dairy farm. Not only this, the
company also produces and sold environmentally friendly and sustainable products (Maduka and
et.al., 2018).

CONCLUSION
The report concludes the PESTLE analysis of the Mark and Spencer business and the impact of the
political, environmental, economic, social, legal and technological changes on the business either in
positive and negative way.
REFERENCES
Books and journals
Bismark, O. and et.al., 2018. Utilizing Mckinsey 7s model, SWOT analysis, PESTLE and Balance
Scorecard to foster efficient implementation of organizational strategy. Evidence from the community
hospital group-Ghana Limited. International Journal of Research in Business, Economics and
Management, 2(3), pp.94-113.
Bank, C., 2018. Impact Of Acquiescence On The Evaluation Of Personality Structure.
Maduka, H. C. C. and et.al., 2018. Phytochemical analysis and antioxidant properties of the ethanolic
extract from Tetracarpidium conophorum (African Walnut) and Pterocarpus soyauxii (oha) Leaf. Journal
of Applied Life Sciences International, pp.1-7.
Appendix
PESTLE analysis of M&S
Particulars Opportunities Threats
Political Factor Fair-Trade agreement with the EU. Political instability, Brexit reduces the
revenue of the company.
Economic Factor The economic growth of the UK
country is increasing day by day.
Inflation rate increases because of
covid-19 affect the buying pattern of
customers.
Social Factor Lifestyle of the people changes and
start using Credit card facilities.
Chain of the M&S products create
negative social trend.
Technological Factor Technological Partnership strengthen
the security of the business.
New technology is highly expensive.

Legal Factor The company follow all consumer
protection act provision.
Health and Safety at Work Act 1974
filed the case against the company.
Environmental Factor Sourcing of fresh milk RSPCA dairy
farms.
Environmental communities put
restriction on the use of natural
resources.

1