Write in paragraphs to Explain the external factors that influence Marks and Spencer trading internationally using the structure/points below:

Introduction:
• Starter sentence explaining that you will be looking at external factors that influence Marks and Spencer trading internationally.
• State which two countries you will be investigating; you must explain why you have chosen those 2 countries.
• Define the term PESTLE analysis
• Explain the purpose of a PESTEL analysis

• SAMPLE STRUCTURE: In this part of the assignment I will explain the external factors that influence Marks and Spencer trading internationally.

TIP:
Examples of PESTEL of different countries – you can use these if you want but you need a lot more detail than these and after each factor you need to explain the effect of this factor on your chosen business:
• http://pestleanalysis.com/japan-pestle-analysis/
• https://prezi.com/teyt546ismka/pestle-analysis-of-three-different-countries/
• http://pestleanalysis.com/pestle-analysis-of-singapore/

PESTLE Country 1: China
Political - Political influence of the government of a country.
EXAMPLE: Trading with China is more challenging than with other countries because they are communist states.

Find out information about the political situation in your first selected country and how it can influence your chosen business

Questions to help you:
1. When is the country’s next local, state, or national election? How could this change government or regional policy?
2. Who are the most likely contenders for power?
3. What are their views on business policy, and on other policies that affect your organization?
4. Depending on the country, how well developed are property rights and the rule of law?
5. how widespread are corruption and organized crime?
6. How are these situations likely to change?
7. how is this likely to affect you?
8. Could any pending legislation or taxation changes affect your business, either positively or negatively?
9. How will business regulation, along with any planned changes to it, affect your business?
10. is there a trend towards regulation or deregulation?
11. How does government approach corporate policy, corporate social responsibility, environmental issues, and customer protection legislation?
12. What impact does this have?
13. is it likely to change?
14. What is the likely timescale of proposed legislative changes?
15. Are there any other political factors that are likely to change?

Economic - Economic conditions of a country.
EXAMPLES:
1. Level of taxation - This includes corporation tax and VAT.

Find out about the economic situation in your first selected country, this should include:
Corporation tax rate, VAT rate, interest rates, inflation rate, GDP, unemployment and other economic variables that could influence your business

Questions to help you:
1. How stable is the current economy?
2. Is it growing, stagnating, or declining?
3. Are key exchange rates stable
4. Do they tend to vary significantly?
5. Are customers’ levels of disposable income rising or falling?
6. How is this likely to change in the next few years?
7. What is the unemployment rate?
8. Will it be easy to build a skilled workforce?
9. Will it be expensive to hire skilled labor?
10. Do consumers and businesses have easy access to credit? If not, how will this affect your organization?
11. How is globalization affecting the economic environment?
12. Are there any other economic factors that you should consider?

Social - Social influences on businesses are affected by the general population of a country and are influenced by:
• The level of education and attitude towards education
• Lifestyle habits
• Religion or beliefs
• Environmental attitudes
• Population decline or growth
• Approach to immigration/emigration
• Family sizes
• Disposable income

Carry out extensive research for your first selected country and explain how these factors could influence your business.

Questions to help you:
1. What is the population’s growth rate and age profile?
2. How is this likely to change?
3. Are generational shifts in attitude likely to affect what you’re doing?
4. What are your society’s levels of health, education, and social mobility?
5. How are these changing, and what impact does this have?
6. What employment patterns, job market trends, and attitudes toward work can you observe?
7. Are these different for different age groups?
8. What social attitudes and social taboos could affect your business?
9. Have there been recent socio-cultural changes that might affect this?
10. How do religious beliefs and lifestyle choices affect the population?
11. Are any other socio-cultural factors likely to drive change for your business?

Technological - The use of internet, online communications and social media is increasing the ability to communicate.

Find out the pros and cons of technology and the level of technological development in your first selected country and the impact it has on your chosen business.

Questions to help you:
1. Are there any new technologies that you could be using?
2. Are there any new technologies on the horizon that could radically affect your work or your industry?
3. Do any of your competitors have access to new technologies that could redefine their products?
4. In which areas do governments and educational institutions focus their research?
5. Is there anything you can do to take advantage of this?
6. How have infrastructure changes affected work patterns (for example, levels of remote working)?
7. Are there existing technological hubs that you could work with or learn from?
8. Are there any other technological factors that you should consider?

Legal and regulatory - Law and regulatory frameworks cover many different areas of international business, including business law, employment law, contract law and criminal law. Countries around the world operate using different legal systems.

EXAMPLE:
• Countries such as UK, USA and INDIA use common law.
• Other countries such as France and Germany use a civil system.
• Some countries such as Saudi Arabia and Pakistan follow Sharia Law.

Identify the legal system used in your first selected country and analyse the impact of different legal systems on international businesses.

Environmental and ethical - International businesses are affected by and have an impact on the environment in many ways. Ethics are the moral principles that govern a person’s countries behaviour this can affect the way international businesses operate.

Environmental Examples:
• Acid rain
• Global warming
• Smog
• Deforestation
• Carbon dioxide
• Pollution
• Waste

Explain the environmental factors in your first selected country and analyse how environmental factors will impact the business when expanding to this market.

Ethics examples: employees’ treatment, working conditions, pay rates, etc.

Ethical situations that could be considered acceptable in one country but in other countries could be seen as a bad decision.
• Situation 1 - A new legal company has just set up in Hemsworth. They are going to specialise in accident compensation claims. Business is slow to begin with, so as a way to promote themselves, they produce some advertising flyers and display them in the Accident and Emergency waiting room at the local hospital
• Situation 2 - As part of a shock media campaign United Colours of Benetton produce a poster campaign which shows images such as ‘nearly nude’ models and images of people with Aids being ‘branded’ similar to that of how Jewish people were marked during the 2nd world war
• Situation 3 - Marks & Spencer has moved its manufacturing base to the third world, where it can source child labour for the production line
• Situation 4 - In order to always have the best possible products available on the shelf, Tesco PLC throw a large proportion of their food away and dump it in land fill sites

Your task: Explain ethical situations that could affect your business in your first selected country

Overall, …………………

Your task: Once you’ve identified the changes that are taking place in your business environment, it’s time to look at each change, and brainstorm the opportunities that this could open up for your business. For example, could it help your chosen business develop new products, open up new markets, or help them make processes more efficient?

It’s also important to think about how these changes could undermine your business. If the business understands this early enough, they may be able to avoid these problems, or minimize their impact. For example, if a core part of your businesses market is in demographic decline could the business open up other areas of the market? Or if technology is threatening a key product, can the business master that technology and improve the product?

PESTLE Country 2: Spain
Political - Political influence of the government of a country.
EXAMPLE: Trading with Spain is more challenging than with other countries 

Find out information about the political situation in your second selected country and how it can influence your chosen business

Questions to help you:
1. When is the country’s next local, state, or national election?
2. How could this change government or regional policy?
3. Who are the most likely contenders for power?
4. What are their views on business policy, and on other policies that affect your organization?
5. Depending on the country, how well developed are property rights and the rule of law, and how widespread are corruption and organized crime?
6. How are these situations likely to change, and how is this likely to affect you?
7. Could any pending legislation or taxation changes affect your business, either positively or negatively?
8. How will business regulation, along with any planned changes to it, affect your business? And is there a trend towards regulation or deregulation?
9. How does government approach corporate policy, corporate social responsibility, environmental issues, and customer protection legislation?
10. What impact does this have, and is it likely to change?
11. What is the likely timescale of proposed legislative changes?
12. Are there any other political factors that are likely to change?

Economic - Economic conditions of a country.
EXAMPLES:
1. Level of taxation - This includes corporation tax and VAT.

Find out about the economic situation in your second selected country, this should include:
Corporation tax rate, VAT rate, interest rates, inflation rate, GDP, unemployment and other economic variables that could influence your business

Questions to help you:
1. How stable is the current economy?
a. Is it growing, stagnating, or declining?
2. Are key exchange rates stable, or do they tend to vary significantly?
3. Are customers’ levels of disposable income rising or falling?
a. How is this likely to change in the next few years?
4. What is the unemployment rate?
5. Will it be easy to build a skilled workforce? Or will it be expensive to hire skilled labor?
6. Do consumers and businesses have easy access to credit?
a. If not, how will this affect your organization?
7. How is globalization affecting the economic environment?
8. Are there any other economic factors that you should consider?


Social - Social influences on businesses are affected by the general population of a country and are influenced by:
• The level of education and attitude towards education
• Lifestyle habits
• Religion or beliefs
• Environmental attitudes
• Population decline or growth
• Approach to immigration/emigration
• Family sizes
• Disposable income

Carry out extensive research for your second selected country and explain how these factors could influence your business.

Questions to help you:
1. What is the population’s growth rate and age profile?
2. How is this likely to change?
3. Are generational shifts in attitude likely to affect what you’re doing?
4. What are your society’s levels of health, education, and social mobility?
5. How are these changing, and what impact does this have?
6. What employment patterns, job market trends, and attitudes toward work can you observe?
7. Are these different for different age groups?
8. What social attitudes and social taboos could affect your business?
9. Have there been recent socio-cultural changes that might affect this?
10. How do religious beliefs and lifestyle choices affect the population?
11. Are any other socio-cultural factors likely to drive change for your business?

Technological - The use of internet, online communications and social media is increasing the ability to communicate.

Find out the pros and cons of technology and the level of technological development in your second selected country and the impact it has on your chosen business.

Questions to help you:
1. Are there any new technologies that you could be using?
2. Are there any new technologies on the horizon that could radically affect your work or your industry?
3. Do any of your competitors have access to new technologies that could redefine their products?
4. In which areas do governments and educational institutions focus their research?
5. Is there anything you can do to take advantage of this?
6. How have infrastructure changes affected work patterns (for example, levels of remote working)?
7. Are there existing technological hubs that you could work with or learn from?
8. Are there any other technological factors that you should consider?

Legal and regulatory - Law and regulatory frameworks cover many different areas of international business, including business law, employment law, contract law and criminal law. Countries around the world operate using different legal systems.

EXAMPLE:
Countries such as UK, USA and INDIA use common law.
Other countries such as France and Germany use a civil system.
Some countries such as Saudi Arabia and Pakistan follow Sharia Law.

Identify the legal system used in your second selected country and analyse the impact of different legal systems on international businesses.

Environmental and ethical - International businesses are affected by and have an impact on the environment in many ways. Ethics are the moral principles that govern a person’s countries behaviour this can affect the way international businesses operate.

Environmental Examples:
• Acid rain
• Global warming
• Smog
• Deforestation
• Carbon dioxide
• Pollution
• Waste

Explain the environmental factors in your second selected country and analyse how environmental factors will impact the business when expanding to this market.

Ethics examples: employees’ treatment, working conditions, pay rates, etc.

Ethical situations that could be considered acceptable in one country but in other countries could be seen as a bad decision.
• Situation 1 - A new legal company has just set up in Hemsworth. They are going to specialise in accident compensation claims. Business is slow to begin with, so as a way to promote themselves, they produce some advertising flyers and display them in the Accident and Emergency waiting room at the local hospital
• Situation 2 - As part of a shock media campaign United Colours of Benetton produce a poster campaign which shows images such as ‘nearly nude’ models and images of people with Aids being ‘branded’ similar to that of how Jewish people were marked during the 2nd world war
• Situation 3 - Marks & Spencer has moved its manufacturing base to the third world, where it can source child labour for the production line
• Situation 4 - In order to always have the best possible products available on the shelf, Tesco PLC throw a large proportion of their food away and dump it in land fill sites

Your task: Explain ethical situations that could affect your business in your second selected country

Overall, ……………………………

Your task: Once you’ve identified the changes that are taking place in your business environment, it’s time to look at each change, and brainstorm the opportunities that this could open up for your business. For example, could it help your chosen business develop new products, open up new markets, or help them make processes more efficient?

It’s also important to think about how these changes could undermine your business. If the business understands this early enough, they may be able to avoid these problems, or minimize their impact. For example, if a core part of your businesses market is in demographic decline could the business open up other areas of the market? Or if technology is threatening a key product, can the business master that technology and improve the product?