Navigating Challenges and Capitalizing on Opportunities

1. Pestle and SWOT analysis for chosen company

The chosen company for pestle analysis is Marks and Spencer’s. Two of the political factors that affect Marks and Spencer and these are:

Political

Free trade

The positive aspect of modern politics is free trade which establishes connections between different countries, a significant consideration for business dissertation help. Marks and Spencer’s operate mostly from the United Kingdom. Several locations are there which are identified to be operating from abroad. Free trading allows the company to import different foreign products for sale at a cheaper price (marksandspencer.com, 2021). Free trade has been taken into consideration for quite some time. Leaving the European trade union by the UK leaves an impact on this.

Brexit

Brexit is identified as one of the major aspects of leaving an impact on Marks and Spencer's operation. M&S operations are being hugely impacted since it is unclear where the United Kingdom will stand following the Brexit laws. Mark and Spencer's operations were ideally processed through engaging in operations of UK retailers. Hard Brexit is becoming a reason for losing operations and customers are encouraged to enjoy similar products at lower prices. The decision of 1999 taken for switching to using foreign suppliers is fueled by its competitors (Sánchez-Cambronero, González-Cancelas, and Serrano, 2020). The United Kingdom will stand following Brexit, especially in terms of trade regulations and tariffs.

Economical

Providing discounts on the market range

Affordability in terms of discounts given on market range is identified to be economical and amidst these budget clothing stores and budget retailers, the customers are given chances to switch to foreign suppliers and fuel the competitors. A low-cost competitive strategy is something that withholds the values within a wider market share. M&S invests more into its stores and immunes a specific set of people to ensure management of market profile.

Social

Non-trendy

This organization is identified as an age-old name in the market of the United Kingdom. While the youth and elderly are having adequate information on the brand name. A long-standing reputation has been observed for unfortunate consequences. It is however possible that Mark and Spencer's trade is becoming less popular among people and needs to incorporate fashionable designers.

Spreading across the meal sector

Society has shown a wide-scale increase in the consumption of ready meals. It is found out that ready meals are more palatable and with an increase in food technology there is massive encouragement given upon ordering food online and satisfying the taste buds. "Marks and Spencer has long sought to dominate this industry, while it's unclear just how large a market share the name captures, it's reportedly one of the UK's top ten ready meal distributors (Sánchez-Cambronero, González-Cancelas, and Serrano, 2020)"

Technological

Self-check out

Self-checkout is identified to be the most important trend in modern-day retails. In food stores, self-checkout is identified to be important while retailers can save money which will be spent upon cashiers otherwise. Several self-service checkout systems across the stores have been observed. Self-encouragement within the pledge of UK-based retailing services has been observed.

Online Shopping

One of the major trends in the retail sector is identified to be online shopping experiences. A strong eCommerce presence offered to maximum goods including food and clothing sectors is helping the buyers to get their stuff directly from buyers. Unlike other food stores, these qualities largely impact the sustainability and market presence of the organization.

Environmental

Product Sustainability

M&S is identified as a part of the maintenance of its image as a luxury brand. It has pledged to become a sustainable retailer on several occasions. A multitude of environmental factors is presented within the acquisition of food and clothing. Corporate social responsibility can be managed by controlling the emissions of carbon into the air. It is also observed that UK retailers are having a pledge of supplying goods and items at affordable costs and contribute to the stoppage of deforestation and farming. Moreover, reducing the packaging cost and wastage management should be identified as an important part of work.

Fair trading system

A fair trade system is generated for giving better compensation to foreign producers. It is also associated with the management of the environment. As a part of environmental benefit, it has to indulge in fair pricing and understanding the benefits of the organization.

Legal

They follow up on legal policies that affect the business and improve components. Political stability and importance of the retail sector within the economy of the country (Islam, 2017). The level of corruption is important as the consumer service sector heavily depends on the government. Legal factors associated with M&S are zoning laws, civil rights laws, and health and safety laws along intellectual property laws. High quality and great value clothing and home products are essential for greater income components.

SWOT analysis

2. Evaluation of the changes encouraged by the pestle factors and critical analysis on the strengths?

The company is having a complete STP setup that encourages companionship and focuses on cost-conscious groups as a part of segmentation. In the current market environment, Brexit laws are applied. Discounts are given on numerous actions and upon extensive free trade policies. A trend of moving towards ready meals and focusing on eco-friendly products and brands is being revolutionized (Santoro et al. 2019). The pestle factors encourage setting up a sustainable environment to work. Several financial issues have been observed over the recent years while managing a large customer base. Pestle factor has encouraged different business components such as:

Political factor management and understanding whether the Brexit laws have become important or not is encouraged

Free trade policies have left a remarkable impact on managing 1500 overseas stores

Brexit is followed by a certain heightened product cost on M&S and all retail brands hence the fair price policy has to be maintained to manage the shutdown or increase in prices to prevent loss of customers

Economic factors offering current market trends in the UK for shifting towards smaller retail stores.

Different stores are providing lower markup prices to retain a complete and premium status

A means of combating the threat is identified within the management of Marks and Spencer target market components for managing long-standing existence while a brand or the youth is encouraged to follow up the customer engagement and fueling the technology (Akram et al. 2021)

All fair trade products are incurring less production cost and enable environment-friendly production methods

“UK has been dropping significantly during the past few years as a result of the recent financial crisis where disposable income growth in the UK". Hence, it becomes an important factor to adapt to the changes and focus on the suitability of traditional items that sell out quickly.

“M & S to venture into the mobile payment methods for its clothing, gifts and food sectors” as a part of managing the trend in the company's business growth and creating a trendy approach to look through customers' minds on understanding their thoughts (Saiz-Alvarez, 2021).

The buyer power of M&S consumers is identified to be low since they do not provide enough positioning to bargain and decide on whether they want to purchase the product or not. Rivalry is observed within existing competitors which is quite common

Reducing the competition on grabbing customers is possible by focusing on the opportunity to create websites and manage global operations.

A strong supplier base of 2000 people across the world is providing the best quality products at lower prices for managing strategic partnerships. Financial issues are observed in between many people that become a target of market collapse. M&S needs to capitalize on the economic growth where the expansion of operations is done for generating better results. One of the major strength strategies that could be undertaken by the company is cheap sourcing due to trade policy. Reduction in consumer income manages the exchange rate losses and global politics (Eisenberg, 2019). The risk of economies getting slowed down is observed as a part of mobile money and transforming the wireless paradigm. It is observed that the trading companies include a certain amount of beneficiary attributes which are to be limiting business opportunities of M&S trading.

Trade policies of government agencies are under the development index of the organization and allow the UK to provide subsidiaries within a transfer of profit to the headquarters without any extra cost incurring. Developing a relationship between different countries and communities that are associated within the supply base and management of diplomatic decisions are essential. An alternative price range of suppliers is imported to manage major sourcing and focus on performance engagement. Due to a certain crisis in Ireland, Greece, and Spain the trade strategies need to be adjusted accordingly (Madhani, 2020). Making more money from existing business units is essential. In this case, an important criterion is, to ensure complete operations to be emerged from potential customers and ensuring a growth curve in the consumer business. "During the past few years as a result of the recent financial crisis where the disposable income growth in the UK has fallen from 3.2% in 2001-2002 to 0.3% in 2008-2010 time periods indicating that the purchasing power of consumers has been stagnant during the last few years (Google.com).”

As a global company exchange rates have left an impact upon the performances of M&S. Being capable of predicting the future exchange rates is essential since socio-cultural aspects of the company need to be maintained. Adopting suitable strategies to gain success while maintaining cultural and religious values can be effective in clothing fashion. M&S is identified to ensure a standardized product range in India. Country to country wise development index and consumer association are needed (marksandspencer.com, 2021). As an example in India, competition and cultural beliefs are important. While spreading across Islamic religious components and delivering food items it is essential to contribute to the customization and meeting market needs.

3. Recommendation of suitable leadership style from Daniel Goleman’s leadership styles

There are six different styles of leadership observed that come from Daniel Goleman's leadership styles. Emotional intelligence is embracing the compatibility assisted within Goleman and success factors of the career are impacted. Self-awareness, self-management, social awareness, and relationship management as part of emotional intelligence (Goleman, 2000). Different styles are identified in terms of commanding leadership styles, visionary leadership styles, democratic leadership styles, coaching leadership styles, affiliative leadership, and pacesetting style. In the case of Marks and Spencer’s, the visionary leadership style is applicable. It is referred to as the authoritative leadership style. While long-term organizational goals are associated, emotional competency is managed. Powerful communications skills show a strong correlation between flexibility, commitment, rewards, and managing team climate.

A genuine good leadership style like visionary helps in a strategic vision to adjust onto the compatibility and customer satisfaction components. No option should be given to the customers and suppliers to pinpoint the questions of feedback, recognition, and leadership competency. Providing reports on accountability and management creates a team harmony and process on prioritized resonance. Affiliation of leadership components focus on the team climate of organizing common data and empathy management. The right level of leadership competency allows generating participative and cooperative alignment of records (Vasilescu, 2019). The vision is associated with the incorporation of fast decision-making and excelling at own field of work. An absolute no blame culture organizes the advantage of becoming a good visionary leader in Marks and Spencer’s actively managing the delivery of a variety of products at affordable costs. "A great visionary leader manages to communicate and market the vision so that members of the organization feel inspired and understand how they will benefit from its realization". In this case, the achievements of executive components are misconstrued. Flexibility, commitment, and reward systems need to comply with team climate delivery and ensure that the organization fulfills long-term goals to encourage satisfaction. Pros of the identified style are:

Having a clear idea on overall goals that everyone looks forward

Team’s energy on fetching the records that associates on goals are legit

The risk-reward trade work is clear since the organization is pushed forward to find out common goals (Karasneh, and Al‐Momani, 2020)

Inspiration on unity and getting everyone on the same page is focused

The risk-reward trade-off is clear and they are unafraid of the risks that push the organization to the overall goal

Some potential cons of the team's leadership are found out as:

Team members are not always held responsible

No follow-through is observed which might lead to miserable conditions

“Vision may be lost if it’s too intertwined with the personality of the leader and proper succession planning”

Steps included in the visionary statement with a detailed plan of action are:

Making a compact vision statement and describing the unique proposition that the company will be providing

Realistic visions are presented while core values of the organization are encouraged

Examples of this styles are:

Nelson Mandela's leadership style focuses on the country's specific requirement to become a superpower. Mandela was once the face and leader of the Anti-Apartheid Movement, and this person relentlessly fought against racial discrimination to encourage an equal and free future for all (Boyle et al. 2018).

Another example of the same style is “Fidel Castro leadership”. “Castro is one of the two faces of the Cuban Revolution in 1953 and went on to become the country’s president and prime minister.” These revolutionary attempts are important to be recognized.

Visionary leadership is most needed since employees need to focus on the planning of immediate requirements. Always being compatible towards the credibility and positive entitlement of the visionary plan throughput (Drzewiecka, and Roczniewska, 2018). A good communication skill is something pretty important for visionary leaders and team members who need to focus on organizational and personal goals. A justification brings every possible action together to integrate actions into the real world. 92% of the improvements are allowed to encourage effective leadership and grow an interest in customers' minds to encourage economic gain. An independent and realistic person is associated with the incorporation of visionary thoughts.

4. Critical analysis of CSR in the leadership process

Four corporate social responsibilities encourage environmental, philanthropic, ethical, and economic responsibility. Creativity in business is optimized as small or large businesses need to contribute to their development of CSR strategy (Cirella, 2020). Working conditions, human rights, corruption prevention, corporate governance, and consumer interests are taken into account for the management of business functions. The company is often observed to be donating the returned clothing to orphanages and surplus them to make more money. Donations of clothing are sent to refugee camps and charity partners to support the homeless people. Great commitments are made on becoming sustainable as a part of making commitments. 100% responsibility sourced organic cotton is observed for the process (Ilyashenko, 2021). M&A is working effectively with customers and suppliers to focus on waste reduction, using raw material, and trading ethically for allowing customers to lead a healthier lifestyle. Steve Rowe is effectively working with its people to provide quality services and the business under him is growing to outlast a decade. A job listing on the profile of this person associates professionalism and community building services (Goleman, 2000). The business is looking forward to a reduction of packaging wastage and contributing to a greener society. Focusing on green and biodegradable bags other than using plastics has been identified as an important aspect of positioning the factors of the company.

M&S has always been in partnership with customers, employees, and partners. The local communities are doing business in such a responsible way that quality, service, and innovation are cherished. Donations to charitable organizations are done through locally sourced components of M&S stores. Helping the main challenges facing businesses allows them to contribute to the planet and future of this organization. "The organization has started a science-based target to reduce greenhouse gas emissions generated from its operations and supply chain to meet up the targets (Sughra, 2019)". Premium quality product engagement is providing value for money and giving importance to the food value. It is identified as one of the on-trend patterns and luxury brands that is contributing to the environment to ensure a combination of comfort and style.

The protective strategies on the other competitor groups help in the management of retail components while the organization is focusing on CSR. Profit before tax is identified to be 50.5% and the UK-based clothing range has become improvised for the lowering of essential items and making more money through a five-year social and environmental program to contribute to nature and gain competitive advantages (Cirella, 2020). Subsequent CSR performances are allowed to resource the right materials from the suppliers of South Asia. Responsible consumption, reuse, and recycling in the supply chain activities help in contributing towards the environment largely.

References

Journals

Akram, U., Fülöp, M.T., Tiron-Tudor, A., Topor, D.I. and Căpușneanu, S., 2021. Impact of Digitalization on Customers’ Well-Being in the Pandemic Period: Challenges and Opportunities for the Retail Industry. International Journal of Environmental Research and Public Health, 18(14), p.7533.

Boyle, C.J., Gonyeau, M., Flowers, S.K., Hritcko, P., Taheri, R. and Prabhu, S., 2018. Adapting leadership styles to reflect generational differences in the academy. American journal of pharmaceutical education, 82(6).

Cirella, G.T., 2020. Corporate Social Responsibility Practices in the United Kingdom. ЗМІСТ| CONTENT| СОДЕРЖАНИЕ, p.8.

Drzewiecka, M. and Roczniewska, M., 2018. The relationship between perceived leadership styles and organisational constraints: An empirical study in Goleman's typology. European review of applied psychology, 68(4-5), pp.161-169.

Eisenberg, P., 2019. Financial Analysis of Marks and Spencers. with regard to a Stock Exchange Floatation (IPO). International Journal of Management, 7(1), pp.91-112.

Goleman, D, “Leadership that gets results”, Harvard Business Review, March-April2000 p 82-83

Ilyashenko, A., 2021. Social objectives of corporate social responsibility (CSR) of transnational corporations (Doctoral dissertation, National aviation university).

Islam, M.A., 2017. SWOT Mix and PESTEL Analysis: Effective Tools of Risk Management of Leasing Companies. The Millennium University Journal, 2(1), pp.1-18.

Karasneh, A.A.F. and Al‐Momani, E.A., 2020. The influence of emotional intelligence on leadership styles: A profile of executives in ASEZA organization. Journal of Public Affairs, 20(3), p.e2069.

Madhani, P.M., 2020. Lean Six Sigma Deployment in Retail Industry: Enhancing Competitive Advantages. IUP Journal of Business Strategy, 17(3).

Saiz-Alvarez, J.M., 2021. Entrepreneurship in the Fashion Industry: The Case of Carolina Herrera. In Entrepreneurial Innovation for Securing Long-Term Growth in a Short-Term Economy (pp. 90-110). IGI Global.

Sánchez-Cambronero, A., González-Cancelas, N. and Serrano, B.M., 2020. Analysis of port sustainability using the PPSC methodology (PESTEL, Porter, SWOT, CAME). World Scientific News, 146, pp.121-138.

Santoro, G., Fiano, F., Bertoldi, B. and Ciampi, F., 2019. Big data for business management in the retail industry. Management Decision.

Sughra, G., 2019. A Study Investigating Corporate Social Responsibility (CSR) and Financial Performance of Retail Industry in the UK (Doctoral dissertation, Cardiff Metropolitan University).

Vasilescu, M., 2019. Leadership styles and theories in an effective management activity. Annals-Economy Series, 4, pp.47-52.

Website

marksandspencer.com, 2021. Available at: < https://www.marksandspencer.com/> [Accessed on 18/10/2021]

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