Case Study: Marks and Spencer

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Case Study: Marks and Spencer Introduction Marks and Spencer was found by Michael Marks in 1880s and become the biggest clothing retailer in UK with more than 700 retail stores. In additional, the group also has 300 shops in more than 40 countries (Your M&S 2013). In its long development journey, M&S went through many stages from a stall to a multinational enterprise. This essay will critically evaluate M&S through the key framework when doing globe business especially by the eternal environment, internal environment and the strategies choice. External Analysis Macro Analysis---- PESTEL Analysis of Marks and Spencer PESTEL can be used to identify changes of macro-environments and investigate oversea markets. Market potentiality and size, cultural distance and acceptance of the entering business are crucial factors during internationalization (Morschett, Schramm-Klein, Swoboda, 2010). * Political Factors: Marks and Spencer doing business mainly in UK decides that all businesses must under UK’s healthy and safety regulation and laws. In 2011, M&S against the UK’s healthy regulation and was fined £1m due to its failing to protect customers and staffs from over asbestos refurbishment (NEWS BERKSHIRE2011), on the other hand, the relatively stable political situation in the United Kingdom is conducive to the development of the Marks and Spencer. * Economic Factors: In November of 1998, M&S announced its first-half profit dropped off 23% and lead to a sharply falling down in its share price. Greenbury who was the M&S’s chairman and CEO said that M&S lose the competition with other competitors from top and bottom brands companies in retail market. M&S was blamed about its no longer reached customers’ needs with its competitors. * Sociological factors: Market demand has changed with the movement of society in last few

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