Critical Issues in Globalisation Essay Example | Topics and Well Written Essays - 1750 words

Critical Issues in Globalisation - Essay Example Through evaluating its existing business situation, Marks and Spencer needs to review its market segmentation, share out its products to diverse target markets, and serve its clients efficaciously. Introduction Marks and Spencer is a worldwide company that spreads throughout Europe, Asia and North America. It sells footwear, clothing, food, house appliances and gifts. This paper will comprise three sections. Principally, it will evaluate the micro and macro environment of Marks and Spencer. Secondly, the paper will employ SWOT to evaluate the four facets of its business. Lastly, the paper will a draw an inference concerning the whole evaluation and provide the necessary recommendations. PEST Analysis The extensive external factors, which indirectly affect a company, comprise legal, political, social, economic and technological aspects. These frameworks will show how the macro environment influences M&S in formulating its marketing decisions. Legal and Political Environment It is very crucial for firms to adhere to government policies and global organisation structures such as the World Health Organisation, when formulating their marketing policies. Governments, particularly in the advanced countries, pay attention to the human and ecological environment life. Governments devise policies and systems to monitor companies and their products, for instance, energy saving strategies and genetically modified foodstuff regulation. The United Kingdom government has initiated energy saving policies such as climate change duty and Green Tariff on energy usage to reduce carbon dioxide and supplied subsidisations to enhance its policies. Marks and Spencer has instituted an incentive scheme in which stores can retain a 10% value of every savings they generate in its budget (Marks & Spencer 2012). This scheme aids Marks and Spencer in saving around 5 per cent of M&S energy. In current years, the gene technology has increased significantly. Some of the technology has been util ised to manufacture food. Nonetheless, some of the technology can bring about environmental pollution and jeopardise human health. Marks and Spencer declared that it would be stocking non-GM foods upon its shelves. Economic Economic aspects affect firms to either develop or retrench their business, for instance, loss-generating operations and their non-primary business operations. For example, the 9/11 misfortune in United States caused numerous firms to encounter depressions within Europe and North American countries. The 9/11 mishap in United States caused consumers to alter their purchasing habits and sales decreased tremendously. In fact, M&S lost about 8.6m pound worth of profits in 2001-2002 from its worldwide retailers. However, M&S has shut its deficit-generating operations within Continental Europe and sold out its non-core business within North America (Marks & Spencer 2012). Social Factors Buyers’ needs change incessantly. People desire to feel modern, special, and well situated. Therefore, people buy fashionable apparel and spend credit cards to fulfil their needs. M&S keeps up with the newest colour and style. Though it has high-ranking quality goods, M&S co. does not take into account the customers’ needs, particularly in clothing market (Marks & Spencer 2012). Technological Factors In the current era, information technology has be