PESTLE

PESTLE Analysis



PESTLE Analysis

Introduction

Strategic management is an essential aspect of modern business management, which involves the formation of goals and instituting programs that fulfil these goals. Environmental monitoring is a component of strategic management, where managers studying various economic, political and social factors that may affect the business (Khan et al., 2011). Environmental monitoring can help small businesses identify untapped markets and avoid costly mistakes. SWOT and PESTLE analysis are two common strategic management tools that can help managers to discuss and organize ideas during the process of environmental scanning. This report will demonstrate the PESTLE analysis of M&S for the U.K. market.

PESTLE Analysis

PESTLE is an acronym for “political, economic, social, technological, legal and environmental.” The goal of a PESTLE analysis is to identify all the various external political, economic, social, technological, legal and environmental factors that can affect a business. Managers then assess the risks posed by factors identified and use this knowledge to decisions. For example, a new restaurant may find that local laws impose severe penalties on companies that give alcohol to minors, as a result of a pestle analysis, which can lead the company to institute a policy of checking identification at all customers who order alcohol (Phillips & Storey, 2010).

The results of a PESTLE analysis can help inform managers in conducting a SWOT analysis. All political, economic, social, technological, legal and environmental identified by a PESTLE can be classified as opportunities and threats in a SWOT analysis. Conducting PESTLE Analysis is to inform the SWOT analysis may result in the recognition of more opportunities and threats, which can translate into better decisions (Cadle et al., P.2010).

Marks & Spencer

Marks and Spencer is one of the largest retailers in UK, which had emerged as a small stall in the year 1884. This stall was owned by Michael Marks in a small town of UK, whose main focus was on providing value to the customers providing quality products in low prices. Later on, the stall changed into a retailer and Michael got a business partner, Spencer. Then the name of the company changed into Marks and Spencer, and became a well known retailer in the country.

Marks and Spencer is one of the leading retailers in the country, which provides quality products to its customers. The company has four main divisions including furniture, technology, textiles, and food. The company focuses on providing high quality, hygienic, stylish, and advanced products and services to their customers. The mission of Marks and Spencer is to grow the company changing it into a world class retailer. The retailers also focus on providing its customers with a happening and amazing shopping environment in their stores.

PESTLE Analysis of M&S

In order to operate successfully, an organization needs to be aware of the factors that surround it. To know about the factors surrounding an organization, it needs to do a PEST analysis. A PEST analysis tells the organization about the Political, Economical, Social and Technological factors that are surrounding ...