M & S Pestle, M & S SWOT, & M & S VRIO Analysis With Business Strategy - Business Assignment Help

Assignment Task -                 
 

Introduction

 Marks and Spencer (M & S) is one of the  UK leading multinational retailers founded in 1884 by Michael Marks a polish refugee, with its slogan, don’t ask the price, it’s a penny. In 1894 Michael Marks went into partnership with Thomas Spencer a former cashier from the wholesale company. In 1926 Marks and Spencer became a Limited public Company. M & S specializes in selling clothing, home product, luxury food products, and women's accessories. It is also listed on the London stock exchange. Marks and Spencer plc has a joint venture with Reliance Retail Ltd at the moment Marks and Spencer has 62 stores in India. It has 80,787 employees, 1035 UK stores, Its competitor include Tesco, Asda, Lidl, and so on.

Activity 1 (This Activity provides evidence for P1 and M1)

 PESTEL Analysis: 

PESTLE analysis directly comprehensively evaluates the industry’s external and internal environmental elements in order to identify the overall available opportunities and dangers of specific procedures.

Political Factors:  

Political factors is all about how and to what degree the government intervenes in the economy.  This includes government policy, political stability, instability In overseas markets, foreign trade policy, tax policy, labor law, trade restriction, and many more. For example, BREXIT, as we all know UK is leaving the EU which means there will be some changes in how organizations trade within the EU, this means that the free trade between the UK and EU will be over in January 2021. M & S imports some of its products from the EU countries, and some of its workers are from the EU countries. Because of these political changes, many organizations has to come up with new strategies on how to operate their organization under these new rules. COVID 19 is also something that the government are involved in politically. for example, the first lock down and second lock down, organizations has no say when the government commands the country to lockdown, fortunately for M & S this lockdown as not affected the that much because some of its products are essentials, though there has been sells decline in clothing area, this is because consumers are not buying clothes so much. 

Negative Impacts

Political Factors:  

Political factors are all about how and to what degree the government intervenes in the economy.  This includes government policy, political stability, instability In overseas markets, foreign trade policy, tax policy, labor law, trade restriction, and many more. For example, BREXIT, as we all know UK is leaving the EU which means there will be some changes in how organizations trade within the EU, this means that the free trade between the UK and EU will be over in January 2021. M & S imports some of its products from the EU countries, and some of its workers are from the EU countries. Because of these political changes, many organizations have to come up with new strategies on how to operate their organization under these new rules. COVID 19 is also something that the government is involved in politically. for example, during the first lock down and second lockdown, organizations have no say when the government commands the country to lockdown, fortunately for M & S this lockdown as not affected the that much because some of its products are essentials, though there has been sells decline in clothing area, this is because consumers are not buying clothes so much. 

Negative Impacts

With significant uncertainty surrounding the Brexit and COVID 19 organizations such as Marks and Spencer and other retailers such as Tesco, Asda, John Lewis and many more are quite struggling at the moment. We have seen major retailers closing down such as Selfridges and many more.

Brexit and COVID 19 is clearly affecting margins and sales volumes in the retail sector.
 

M & S Pestle, M & S SWOT, & M & S VRIO Analysis With Business Strategy

Economic factors have a major impact on the organization and how they do their businesses, factors include, economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses. Due to Brexit uncertainty Marks and Spencer is struggling just like other retailers because customers are not spending much, the cost of living has gone high. This has lead Marks and Spencer to close some of its stores across the country. 
 

Economic Factors: 

Economic factors have a major impact on the organization and how they do their businesses, factors include, economic growth, interest rates, exchange rates, inflation, disposable income of consumers and businesses. Due to Brexit uncertainty Marks and Spencer is struggling just like other retailers because customers are not spending much, the cost of living has gone high. This has lead Marks and Spencer to close some of its stores across the country. 

SWOT Analysis

SWOT Analysis is the tool organizations use to determine the situation internally. SWOT stands for Strength, Weaknesses, Opportunities and Threats. Strengths and Weaknesses look at the internal capabilities of an organization whilst Opportunities and Threats looks at the external of business.

Strength: Strengths: M & S is one of the UK biggest high street retailers are well known for its high-quality products, the brand value is high store layout design are the same everywhere but sometimes there can be a little deferent depending on location and environment and its customer's lifestyle. M & S 1.5bn joint venture with Ocado allows M & S a full online food delivery service for the first time. M & S will go to buy a 50% share of Ocado’s UK retail business for up to £750 million. M & S is located in High Street and shopping malls. Its staff is hardworking and very friendly. M & S appointed Steve Rowe as its new CEO in April 2016. 

Weakness: Weaknesses: In 2017 Marks and Spencer experienced a disappointing Christmas when its sales of both food and clothing fell. This had a huge impact on the company. In January 2018, M & S announced its plan to close 14 stores across the UK (BBC 2018) Public perception.

Activity 2 (This Activity provides evidence for P2 and M2)

VRIO Analysis

VRIO is a framework that organizations use to analyze the company’s resources and its competitive advantage. It is a tool that organizations use to evaluate the company’s microenvironment, this include, finance resources, human resources, and material resources

Using VRIO helps the organization understand competitive advantages or weaknesses. The VRIO dimensions are

Value, M & S need to improve it customer care and the quality of the products in order for them to stand out in the market.

Rare, M & S need to make sure that the products they sell are rare to find in other retailers in order for them to remain competitive in the industry.

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