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Analysis - Term Paper Example

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Marks & Spencer Company Analysis Management Assignment 17 April, 2012 Word Count: 3000 Company Analysis The company Marks and Spencer (M&S) is a classic example of humble beginnings touching the skies of success. The company rose from a stall in the late 1880s to becoming the largest clothing retailer in the United Kingdom…
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Download file to see previous pages As the market is changing and including more and more firms in the business scenario, a proper screening of the environment is part and parcel of a firm’s success. ‘It is essential for a business enterprise to keep itself aware of surrounding environment because the success of business depends to a great extent on its awareness about surrounding environment’ (Jain et al. 2010, p.84) PESTLE Analysis In order to analyze the business environment for M&S we will first use the PESTLE analysis. ‘Political, economic, social, technological, legal and environmental (PESTLE) analysis is an analytical tool for assessing the impact of external contexts.’ (Basu 2011, p.21) a. Political The UK retailer is faced with the changing setup in terms of the political environment. Although the company enjoys a fairly stable government with stable policies regarding the economy and the retail business as a whole, but changes have been brought into the system due to the recent terror vibes. However the efficient UK government has tapped this issue with proper security plans. The company is a part of the system where the tax net is not too high as compared to other countries. Also the international trade agreement with China for instance has been relaxed with the new double tax treaty that reduces taxes, thus facilitating opportunities of global trade. b. Economic The economy in which Marks and Spencer is operating is one of the largest economies of the world with a loose monetary policy and a stable employment scenario. The company does face the risks of sudden financial upheavals like the 2007-2009 financial crises that originated in the US mortgage market but influenced the entire world especially the larger economies. So M&S have to keep a continuous check on the global outlook and the UK’s economic indicators and their trends in order to fully capitalize on the economy. c. Social In terms of the social factors M&S has to analyze the local environment as well as the foreign territories in which the company operates. The company needs to take into account the youth as they are the lucrative target market for clothing and apparel. Its loyal customer base is now in the age bracket of 50 plus years. It needs to analyze the UK’s youth for their lifestyle which is independent and trendy and portray such vibes in their clothing line. d. Technological The company faces a technological lag as compared to its competitor. The company did not use the plastic money till the 2003 and had no loyalty card schemes for its customers. The company started these cards and schemes along with vouchers and reward points in 2003 much later than its competitors. The technological advances are the most speedy ones these days, with companies using technology in terms of product availability in the form of online deliveries for better customer service etc. M&S needs to keep on adapting to the technological change in order to compete well with the rivals. Also UK like other big economies is witnessing an era of online shopping frenzy and this hype needs to be catered through proper implementation of correct design of customer friendly website and the accompanying distribution strategy. e. Legal The laws in the UK are always changing for the better. M&S keep a check on all the new legislations through yearly training. Health and Safety laws, Packaging laws, commercial laws etc have to be maintained ...Download file to see next pagesRead More
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