Demonstrate understanding of business issues and decision making and analysis methods through the use of academic theories and concepts from a variety of disciplines.

Sample Answer

Analysing Business Issues and Decision-Making Strategies in Marks & Spencer

Introduction

Modern businesses operate in highly competitive and unpredictable environments where decision-making plays a critical role in organisational success. Companies must continuously adapt to changing consumer expectations, technological developments, economic uncertainty, and market competition. Effective business analysis allows organisations to identify operational problems, improve strategic planning, and maintain long-term competitiveness.

This report analyses key business issues affecting Marks & Spencer (M&S), one of the UK’s largest retail organisations. The report evaluates major challenges facing the company using relevant business theories and analytical frameworks. Particular attention is given to digital transformation, competitive pressures, and customer behaviour changes within the retail sector. Recommendations are then proposed to improve organisational performance and strengthen the company’s market position.

Company Background

Marks & Spencer was founded in 1884 and has developed into one of the UK’s most recognised retail brands. The company operates across clothing, home products, and food retailing. Historically, M&S built its reputation on quality products and strong customer trust. However, in recent years the organisation has experienced increasing pressure from online retailers, changing shopping habits, and fast-fashion competitors.

The retail industry has changed significantly due to digitalisation and evolving customer expectations. Businesses that fail to innovate risk losing market share and customer loyalty. As a result, M&S has been required to reassess its business strategies and operational approach.

Analysis of Key Business Issues

Changing Consumer Behaviour

One major issue affecting M&S is the rapid change in consumer purchasing behaviour. Customers increasingly prefer online shopping due to convenience, speed, and product variety. Younger consumers are particularly influenced by mobile technology, social media, and personalised digital experiences.

Traditional retailers such as M&S initially relied heavily on physical stores, which reduced their ability to compete effectively against digital-first businesses. Competitors including online fashion retailers offer faster product turnover, lower prices, and highly targeted digital marketing strategies.

Consumer expectations have also changed regarding sustainability and ethical sourcing. Modern customers increasingly expect companies to demonstrate environmental and social responsibility. Failure to respond to these expectations can damage brand image and reduce customer trust.

Application of Theory: PESTLE Analysis

A PESTLE framework helps identify external environmental influences affecting M&S.

Political Factors

Brexit created uncertainty regarding supply chains, import costs, and labour availability. Trade regulations and taxation changes also affected operational expenses.

Economic Factors

Economic instability and inflation reduce consumer spending power. During difficult economic periods, customers become more price-sensitive and may switch to cheaper competitors.

Social Factors

Consumers now prioritise convenience, sustainability, and digital accessibility. Younger demographics often prefer trend-focused and socially responsible brands.

Technological Factors

Technological advancement has transformed retail operations through e-commerce, AI-driven marketing, and digital payment systems. Businesses without strong digital infrastructure struggle to remain competitive.

Legal Factors

Retail businesses must comply with employment laws, consumer protection regulations, and data privacy legislation.

Environmental Factors

Pressure for environmentally sustainable packaging and ethical sourcing continues to increase across the retail industry.

The PESTLE analysis demonstrates that M&S operates within a complex external environment requiring constant strategic adaptation.