Understanding the Macro and Micro Environmental Factors for Marks and Spencer
Marks and Spencer is one of the top six retailers within the United Kingdom. The group was started way back in 1884. Then a small stall opened by Michael Marks. This stall grew to become Marks and Spencer Ltd Corporation by 1903 and has seen continuous growth since. Today Mark and Spencer are one of the leading retail stores in the United Kingdom with over 21 million visitors visiting the stores each week. The company now operated out of almost 600 stores in the UK and abroad and expanding international business. The company provides high quality, excellent value clothing, and home products along with a wide variety of outstanding quality food globally (MS, 2008). The company has reported revenues of almost £9,022 million as of 29 March 2008, which shows an increase of almost 5.1% over the revenues of March 2007 – £8,588.1 million (MS – Financial Highlights, 2008). It is essential to understand that all the strategies set by organizations are concerned with a number of different aspects like its own activities with the external environment, its resources, long term goals, and the values, expectations, and goals of those influencing strategies.The PESTLE analysis help understand the external environment the company operates within. The PESTLE analysis is a tool that assists organizations to make the strategies by helping the organizations focus on the external environment in which they operate at present or will in the future (Renewal Associates, 2003).Political Factors: Political factors can affect not only the present situation of the company but also the coming future. Marks and Spencer have been faced with a political change – the removal of the textile quotas by the European Union in January 2005, according to the Agreement on Textile and Clothing (ATC) by the WTO (Nordas, 2004).Economic Factors: The economic factor like the recession in the East was a strong factor that helped the company.