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Context of business
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Module leader: Guru Srinivasan
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Student name: Andrei-Valentin Lazurca

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ID: C100041441

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Contents
Introduction:.........................................................................................................................................2
SWOT analysis of Marks and Spencer:.................................................................................................2
PESTLE analysis of Marks and Spencer.................................................................................................2
Evaluating how the changes in PESTEL factors has influenced the Opportunities and Threats
business. Define the way that this company is addressing their Strengths to negate Threats and
Weakness affecting their Opportunities..............................................................................................3
Leadership style from Daniel Goleman (2000):....................................................................................4
The authoritative leadership style:...................................................................................................4
The coaching leadership style...........................................................................................................5
Affiliate leadership style...................................................................................................................5
Democratic leadership style:............................................................................................................5
Pacesetting leadership style:............................................................................................................5
Suitable leadership style for Marks and Spencer:................................................................................6
Corporate social responsibilities of Marks and Spencer......................................................................6
References:...........................................................................................................................................7
Introduction:
Business need to give more concern over their environmental analysis to make decision and
ensure further approaches. There are different internal and external factors having impact on
decision making process of the business. Leadership approaches also makes impact to the
business growth. This paper use the PESTLE and Swot analysis to determine the external and
internal factors does having impact on M&S. M&S is running their sustainable practice from
their beginning. CSR activities of this business also describes with this report. It is important
to define the suitable leadership’s style for this business too by analysing different leadership
theories. This report aims is to identify external and internal factors does having impact on
M&S, leadership style and CSR activities analysis on Marks and Spencer

SWOT analysis of Marks and Spencer:

Strengths Marks and Spencer is having strong brand image as they are one
of the giant in the UK’s retail chain business. This business is
having strong brand value with their sustainability and quality
of products and services. They are having more variety of
products in their product line. Marks and Spencer is having
large number of stores and outlets in the UK. Marks and
Spencer is one of the popular designer brand with their fashion
products. They are also having present in over 40 countries in
the world with large margin of employee engagement with this
business.
Weaknesses Marks and Spencer is having weakness as poor publicity as non-
trendy stores. They are also using large number of manual working
process that increase cost of their operation that reflects with higher
price. Limited market share is also a weakness for them
Opportunities Marks and Spencer need to make effective digital marketing. Marks
and Spencer need to make effective market segmentation and coming
up with new products and market extension process will help to
increase their customer interaction dn sales & profit margin of this
business.
Threats They are heavily depends on the UK market. Changes of external
issues in the UK market makes direct impact on their sales and profit
margin. Discounted pricing from competitors are giving there to
them. Large number of competition in all over the world does
existing

PESTLE analysis of Marks and Spencer

Political factors Globalization helps to make effective free trade operation for this
business in all over the world. They need to utilize this free trade
policy to make massive market expansion. But, Brexit already
 makes impact on this business to operate in EU countries. There is
a large number of supply does coming from EU, because of Brexit
now they need to pay extra tax margin to get supply from EU
countries. Also, political instability in different countries does
makes impact of this business market expansion policy.
government, Vat, Tax policy also having impact on their price and
sales margin

Economic Different economic factors makes direct impact on the business. Higher
factors inflation rate in the country’s economy shows less margin of disposal
income for the people. Also, less GDP growth shows the instable
economy where business cannot get success with their premium quality
and pricing. Due to Pandemic issue, large number of people loose their
job and also customers’ disposal income declines a lot too. So, it makes
impact on the sales margin of Marks and Spencer.
Social factors There are different social trends are changing. Due to Covid 19, people
become more conscious over health and safety issues that also changes
in their taste. Marks and Spencer need to understand these changes in
social term to set their products and services.
Technological In the current world, digitalization is the major progress for the business
factors as most of the business utilizing the modern technology to faster of
operation and getting strong interaction with their customers. Marks and
Spencer need to make more use of technology in their operation to
rescue the cost margin. they also should concert more over their digital
marketing approaches as due to Covid most of the people use social
media, email to make communication and Marks and Spencer should
use this platform to make direct communication with their customers by
showing their offers, products and services
Legal factors Due to Covid, different legal strands in the retail market has changes.
Marks and Spencer should strictly follow these. Also, they need to
concern over market expansion policy here each government rules and
regulations need to understand properly to make further progress of
their market extension
Environmental Marks and Spencer also need to concern over their environmental
factors factors as they are running plan A that shows their sustainability
practices. Also, it is effective for this business to utilize the
environmental practices that helps to ensure better growth. they need to
ensure fair trade products and also concern over the emission of Co2 in
their operation
Evaluating how the changes in PESTEL factors has influenced
the Opportunities and Threats business. Define the way that this
company is addressing their Strengths to negate Threats and
Weakness affecting their Opportunities.
There are different political decision does having impact on the business. It started with the
Brexit impact on Marks and Spencer. Before Brexit, Marks and Spencer run free trade
agreement with all the countries in EU. After Brexit, Marks and Spencer need to pay the tax
and tariffs to get supply from these EU countries. It makes adding up cost for this business on
their products and services. Also, Marks and Spencer is having stores in different EU
countries. These stores now fallen under hard tax embargos that will show the higher
production cost for these stores. So, ultimately, Marks and Spencer have to shut down or
increase the price on these stores product price while competitors will be stay in the normal
price so it will make decline of their sales any way on this business.
There are different economic issues also makes impact on Marks and Spencer. Due to Covid
19, declines of consumer disposal income and purchase ability that makes impact on this
business sales and growth. it is highly important for this business to utilize the market
expansion plan because due to Brexit and Covid the economic position of UK is not stable’s
o, it is high time for this business to make effective market expansion in different countries as
mostly they need to target India and Chain to make increase their store sand make solid
expansion of market. In the market extension plan, they also need to concern over the stable
economic country to make further market development.
Social factors is also having impact on the business. Changes of social trends make changes
of the demand of customers that is effective to understand by the business to set their
approaches. There are different scoop-cultural issues also need to understand by Marks and
Spencer that will help them to set their products and strategy according to the demand of the
culture. People are become busier in their daily life so ready meal is having more change to
make effective growth of their sales to reach higher growth.
Technologies also need to concern by Marks and Spencer as they need expand their market
with digital platform. They need to promote their offers and loyalty program by utilizing the
effective customer interaction. They also need to apply different technology to improve their
quality and also reduce cost and time introduction and operation to reach higher growth. It
will help them to make strong customer relation to reach higher growth. It will also help them
to cover large market. They are also running with effective environmental application that
increase their sustainable practices. They are running with recycle products and waste
management to reduce cost margin and ensure better growth of the business. It also helps
them to encounter the climate change challenges and make sustainable growth of the
business.

Leadership style from Daniel Goleman (2000):

Goleman leadership style sows 6 emotional leadership style that need to concern to ensure
better and healthy working environment. These style is not defines by this researcher but also
shows the effect of each style in the business. Visionary leadership style is effective to
mobilize people to reach the vision of the business. Also, coaching leadership style shows the
leaders need to develop skills and potentials of individual’s employees to get higher
performance from them. Affiliate leadership style shows creating emotional bonding with
workers to runt eh effective motivation to reach goals and objective so the business’s
democratic leadership style shows participation of employees in the decision making process.
It helps to make effective change management for the business. So, each of the leadership
style is having different impact on the business (Erin, 2018).
The authoritative leadership style:
This is the leadership style that is concerns over inspiring members of the team as people or
employees in the business to reach the common goal. Leaders need to give the solid
declaration and margin their employees understanding over the certain vision of the business.
They are leaving the strategy to the team members to set form their wont to reach the vision.
Empathy is more effective aspects in this leadership style. There are different business needs
to set a new vision. Leaders need to develop presentation skills to show the importance of the
vision. For the business to set the aggressive sales goals, they need to use this leadership style
to reach higher growth of the business where customer need to set the loyalty or reward
program to attach employees with the vision (Dulewiscz & Higgs, 2005)
The coaching leadership style
Coaching leadership style is effective one that shows leaders attach their employees with the
gaol of the business. Leaders are having the proper training and making her own participation
in the working process. It is more encouraging for the employees. It is more effective for the
business when leaders understand team members need to build long-term skills. Leaders are
provides right training to increase skill and ability of these team members with proper
direction and feedback to reach the higher growth of the work. Leaders need to attach with
informal coaching and mentoring that helps to make solid growth and provide right guidance
to their employees.
Affiliate leadership style
Affiliate leadership style is more effective for the business that shows leaders are creating
harmony and makes emotional bonding with employees to reach higher growth. They are
giving highest priority to the people as employees in the business. They try to make
relationship with all these employees and ensure better growth of the business. Leaders need
to concern over better and effective communication that will help o keep theory employees
motivating and ensure better understanding to reach gaols and objectives of the business
(Thomas, 2015)
Democratic leadership style:
Democratic leadership style is one of the most promising leadership style that Goleman
shows. It helps to make effective participation of employees into the decision making
process. Leader who run the Democratic leadership style, need to concern over employee
engagement. They need to share the common goal between employees into eh business. It is
also effective for them to provide the right direction and make the open space where all the
employees can share their ideas. It helps employees to give feedback over any issues and
margin collaboration decision margin. For making the changes in the business operation,
Democratic leadership style is effective style for making strong participation of employees to
make positive change in the business
Pacesetting leadership style:
Pacesetting leadership style is the leadership style that shows leaders set the higher standards
of performance. It is aggressive leadership where leaders sets their own pace that employees
need to run too. They need to concern over Th performance and meting the gaols. It is
important to have the higher performed in the team. So, leaders set the team with the higher
performance r and set the goal where all the other employees set their own pace to reach the
goal within the time frame. Six sigma and Kaizen is the best techniques that Pacesetting
leadership style is uses to ensure higher performance from their employees and reach the
goal. They also provide the right motivation to their employees to reach higher growth of
employee’s skills (Disk & Freedman, 2007)

Suitable leadership style for Marks and Spencer:

Democratic leadership style is suitable for M&S. democratic leadership style also known as
participative leadership style too. It shows leaders try to ensure effective engagement of
employee sin the decision making. It is more motivation based leadership style that makes
solid engagement of people as employees with this business. Democratic leadership style
shows leaders need to facilitate the conversation. They need to share infarction in open way
and increase knowledge between employees. It is also effective to encourage people to share
their ideas that helps to make effective change management. This leadership helps to make
effective engagement with people I the business and also make sharing of different
information to different sector. So, leaders can make the right decision by evaluating these
informational and collaborating with their employees. It is also helps to ensure better
communication between all the employees to the leaders and make decision for further
progress of the business (HRDQ, Staff, 2020).
Democratic leadership style increase team morale that every team member can share their
voice and ideas and play active role in the decision making strategy of the business’s it also
protons strong collaboration between all the employees and ensure better growth of the
business with improved communication (Goleman, 2000). It also helps to uncover creative
solutions of the business and coming up with innovative approaches. It helps to ensure
effective employee retention in the business to reach the higher growth

Corporate social responsibilities of Marks and Spencer

Marks and spencer believes in sustainable practices. They are running sustainability practices
with environment, social and governance issues (ESG) strategy. It helps them to build the
sustainability with their commitments to tackle different challenges in the business. They are
giving higher concern over the environmental issues as running the project A. they are having
plan to make zero carbon emission within 2040. They are running with the net zero that
shows zero carbon emission, zero wastage and use full recyclable products in their
packaging. This plan also shows that they will recue 34% of carbon emission reduction
within 2025 and net zero within 2035 to 2040. To do this, they are working altogether and
make development of their employee’s skills that provide right training and motivation
(M&S, 2021).
This business stated their plan A from 2007 that starts with the eco-factories. Then they give
more concern over the carbon neutral in 2012 that running with the zero waste to landfill.
They set their plan to carbon neutral in 2014 than they give concern to the 100% sustainable
palm oil in 2015. They also give concern over the committing to transparency with their
supply chain in 2016. They also make effective launched plant for kitchen range in 2019.
They were giving more corn over their packaging that they implement 87% packaging can be
easily recyclable in 2020. So, it shows their continuous progress in this environmental
friendly approaches with their plan A that shows potential CSR activities of this business to
reach their sustainable goal (M&S, 2021)
M&S is also having concern over their social issues. They are ethical with their trade and
human rights. They are also ethical with their supply chain management. They give the right
facility to their employees and also concern over the governance issues as paying right wages
to their employees. They are not allowing child labour into their business. They also ensure
health and safety issues in their working place. They give different rewards according to the
performance of their employees. They also offer different career development program to
their target employees. They give facility of working hour adjustment to their employees. It
shows effective employee management by this business where they are not doing any
discrimination n their recruitment procures and also in the reward management (M&S, 2021).
They are strongly connected with social feature so this business. They are making different
approaches for the community development. They are giving higher concern over community
development as they are providing different sponsorship on different community program
and events too. They are doing effective charity that also helps to make effective engagement
with their target customers and reach the higher growth of the business. this business make
concern over their CSR activities by ties up with the governance issues and fair practise with
the theme of working together to reach the higher success

References:
 Disk, V., & Freedman, J. (2007). Differentiating emotional intelligence in leadership.
Journal of Leadership Studies, 1(2), 8-20.
 Dulewiscz, V., & Higgs, M. (2005). Assessing leadership styles and organisational
context. Journal of Managerial Psychology, 20(2), 105-123.
 Erin, C (2018). The six styles of leadership. Intense Minimalism
 Goleman, D. (2000). Leadership that gets results. Harvard business review, 78(2), 4-
17.
 HRDQ Staff (2020). Participative management style advantages and disadvantages.
[Online]. Available from: https://hrdqstore.com/blogs/hrdq-blog/participative-
management-style-advantages-disadvantages available at [6th October 2021]
 M&S (2021). Plan A- Our Planet. [Online]. Available from:
https://corporate.marksandspencer.com/sustainability/plan-a-our-planet available at
[7th October 2021]
 Rahman, M (2020). SWOT analysis of Marks and Spencer. [Online]. Available from:
https://howandwhat.net/swot-analysis-marks-spencer-marks-spencer-swot-analysis/
available at [5th October 2021]
 Thomas, E. (2015). Emotional Intelligence in the Leadership Framework. Leadership
& Organizational Management Journal, 2015(2)
 Umar, F (2019). PESTLE analysis of Marks and Spencer. [Online]. Available from:
https://www.marketingtutor.net/pestle-analysis-of-marks-and-spencer/ available at [5th
October 2021]
 M&S (2021). Sustainability at M&S- Our Planet. [Online]. Available from: https:
https://corporate.marksandspencer.com/sustainability/sustainability-at-mands
available at [7th October 2021]