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SWOT and PEST

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Introduction

Introduction In this task I am going to look at SWOT and PEST analytical techniques used by M&S A SWOT stands for strengths, weaknesses, opportunities and threats of a certain aspects of the organisation. This method is used by organisations to analyse themselves and their position, and also compare themselves to other companies. The internal factors are the strengths and weaknesses of which business has control over. Also there are non controllable factors which are external in nature which are opportunities and threats. A SWOT can really help the business to understand how they can improve, how well they have done, analyse the product, what they can do next, and how can resolve the problems failed Strengths are an internal factors which help the M&S to see all the positive and good things about their business. Strength look at, many things such as: * USP (unique selling point) * Price * Value & quality * Capabilities * Competitive advantages A weakness is an internal factor which is a disadvantage for a company. This method looks at many things such as: * Lack of competitive strength * Pressure * Reputation For example: when Sony Play Station 3 was launched it had many weaknesses, because also in those days Nintendo was launched. ...read more.

Middle

M&S has grown largely over recent years Weaknesses (Internal) * This price is too much for several types of customers such as: working class. * M&S sales have been small compared to other selected products such as smart price foods. * The lack of expertise in different departments in M&S can have effect on their business because they haven't got enough expertise. * Since M&S sell products in many areas such as clothing, food, home ware and kitchen ware, it may not have the flexibility of some of its more focused competitors. Opportunities (external) * During the Christmas period the government reduce the VAT to 15% from 17.5% * M&S can develop their websites * They can move to new markets segment that offers improved profit * To take over, join together or to plan deals with other global retailers, to focus on exact markets such as Europe or Greater China Region. * There are many opportunities for future business in expanding consumer markets such as China and India Threat (External) * Due to low sales in the store shareholders can have the power to take it off the market. * Pricing maybe needs to be lowered if the product is not going to be sold. ...read more.

Conclusion

For example: at M&S, clothing prices were cut by 6% before Christmas, this generated 5% more transactions - the biggest increase in items sold for six years - but the value of total sales still decreased. Near to Christmas last year the VAT went down to 15% from 17.5% Inflation could affect the pricing of garments also other economic factors can be like the government; therefore M&S will have to put their prices up. Social Factors. The social and cultural influences on business differ from country to country. It is very important that such factors are considered. For example, certain social factors for M&S would be that as for its Christmas coming up this will impact on young women to buy lowered price of clothes from January sales. After a period of celebration, consumers need to feel better about themselves. Because of fashion trends and seasonal M&S have to sell the old stock so that they can bring new stock in M&S. Technological Factors Technology is very important for competitive advantage, and is a main driver of globalisation. Consider the following points. For example: technological factors, they use a technology to make fashionable new clothes for each season by using factory materials, M&S use computer for new designs, also, they use machinery because with this they can produce their products more quickly. ?? ?? ?? ?? P4 1 ...read more.

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