Marks and Spencer is a British chain of stores. It is indeed the most symbolic of the United Kingdom since it creation until our days.
The products of Marks and Spencer can be divided into three business sectors: the general merchandise, the food, and the financial services. The general merchandise includes a large scale as clothes, underwear, handbags, shoes, articles for the house, the toys for children, books and cosmetics. The food industry offers a vast range of prepared foods, ethnic food, meats, alcoholic and not alcoholic drinks. The company also sells financial services, in particular, credit card in store, personal loans, plans of personal equity, trusts of investment to unitarian participation and a life insurance. Marks & Spencer was founded in 1884 by Michael Marks and Thomas Spencer in Leeds. M&S currently has 979 stores across the U.K including 615 that only sell food products. But also as 454 international stores; 58 stores in India, 48 stores in Turkey, 37 in Russia, 27 in Greece, 17 in Ireland, 14 in France, 11 in Poland, 6 in Hungary and Finland and 5 in Spain. In recent years its clothing sales have fallen whilst food sales have increased.
The success of Marks and Spencer is a good example, indeed for years, the marketing philosophy of Marks and Spencer was clearly: produce products of high quality under a popular brand, recognized by affordable prizes. However, during the last years, the company began to lose its competitive position. What caused a new philosophy of marketing: to remain competitive, Marks and Spencer had to change target market during the last years. A big part of their marketing strategies aims now at specific markets.
The first concern for a company’s business is to understand and deal with all the external factors that could affect the company’s future performance. It is worth saying that all possible external factors are not under control of the company, this means that the firm must monitor them and change its strategy accordingly (Baines, Fill and Page, 2013).
PESTLE analysis describes a framework of macro-environmental factors used in the environmental scanning component of strategic management. It is part of the external analysis which gives an overview of the different macro-environmental factors that the company has to take into consideration in order to achieve its goals. Moreover, this concept is used as a tool by companies to track the environment they’re operating in or are planning to launch a new project/product/service etc.
Let’s talk about the different factors of the PESTLE environment for Marks & Spencer:
Political: The European agreements of integration and free trade opened markets for the British and other companies to be invested in Europe. So, M&A will fight hard to maintain its market share. As a general rule, any business is authorized in the United Kingdom provided that it does not oppose the public policy, the law and order, or any existing law in the country. But for Marks and Spencer, the most annoying political elements which they have to face deal with the question of the labor law and with the industrial relations.