Pestel Analysis of Marks and Spencer
PESTEL Analysis of Marks and Spencer
Political Factors
The government sets regulations for companies to abide by such as Health & Safety British Standards, planning for hazard identification, risk assessment and risk control. Marks & Spencer did not abide by the British Standards and they were fined £1million in September 2011 for risking the health of their employees in the Reading store by exposing them to asbestos.
BBC News reported back in 2006 that Marks & Spencer would be the first major retailer to go down the Fair-trade route on both clothing and food. The fair-trade policy, which they have launched will include, cut salt and fat in M&S foods, recycled packaging and animal welfare protection. Marks & Spencer Chief Stuart Rose stated, “Customers want good value, but they care more than ever how food and clothing products are made”. They are now acknowledged as the lead environmentally responsible retailer.
Economical Factors
Currently the economic outlook is very uncertain and this is more than likely to affect retail sales, as people do not have the spare cash to spend on luxury items such as clothing and food luxuries. Marks & Spencer have been hit by this and have recently closed a number of stores and have had to make job cuts of 2% of their 70,000 staff. Marks & Spencer have had to change the way they market themselves so that they can try and stay ahead of the recession.
UK Retail sales are up 0.6%; showing consumers are willing to spend a little more.
Sociological factors
In 2001, Marks and Spencer expanded into France using their British store format but pulled out in the same year. Ten years after it quit amid stern criticism from trade unions and politicians, Marks and Spencer Chief Executive Marc Bolland announced that it would open a shop on Pariss most famous boulevard before Christmas 2011.