Strategic Management of M&S
Added on 2020-01-28
13 Pages4303 Words68 Views
|
|
|
STRATEGICMANAGEMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK ..............................................................................................................................................1Porter's five forces model ...........................................................................................................2Approaches of strategic management ......................................................................................4Problems faced by Marks and Spencer .....................................................................................5Recovery plan for Marks and Spencer........................................................................................7RECOMMENDATIONS ..............................................................................................................8CONCLUSION................................................................................................................................8REFERENCES .............................................................................................................................10
INTRODUCTIONStrategic management refers to initiatives taken by management for the formulation ofobjectives and goals by top management. It provides the direction to company for designingplans and policies to achieve pre-determined targets (David, 2011). There are steps by whichenterprise can formulate the policies and implement them to achieve the aim of organisation.Company selected for the particular report is Marks and Spencer which is the leading clothingand luxury food product company in UK. In this report, various aspects of strategic managementhave been discussed. Along with that, fundamental issues are highlighted in this report. Also,different theories and concepts are compared here related to strategic management. TASK Strategic management refers to the procedure by which company formulates plans andimplements the same in an effective manner so that firm’s set targets can be achieved on time.This is a continuous process and enterprise needs to work on it time to time. Large and smallcompanies both considered these factors(internal and external). So that enterprise can face theexternal factor forces. These strategies adopt for different reasons. Such as expanding thebusiness, increase the revenues, trained the employees and others (Barney, 2012). Following arethe steps that company should follow to implement strategic management: Goal setting: The first step is to set the goals, vision and mission of company that theywant to achieve within a stipulated time period. By setting the objectives manager cantake the business decisions. There are different goals for distinct companies like meetingthe sales target, higher revenues, expanding business, etc. For all these issues, companymake the plans and strategies. Analysis internal and external factors: By the strategic management, companyidentifies the strengths and weaknesses of enterprise. The company analyses its externaland internal factors to identify new technologies and new competition in the market. Theenterprise makes goals by which they gain strengths and ability to overcome theirweaknesses. By this, business unit can adopt the new technology that can improve theirproduction to attract more customers (Hill, Jones and Schilling, 2014). Strategy formation: Next step is develop the action which can help organisation toachieve their goals. Enterprise collects the information, then analyses it and after that,
data is prioritized. On the basis of same, and final decision regarding business is taken.Company can find a new way to increase its profitsand gain competitive advantages. Strategy implementation: Company put complete planning in a practical scenario. Inthis step, the firm arranges all resources which are required to implement the strategicplan. Enterprise meets the financial requirements by making the budget. For the successof implementation plan, it is very important that coordination is maintained in betweenthe managers and employees. Monitoring and controlling: After implementation, the enterprise needs to regularlycontrol and monitor the strategic plan made (Hitt, Ireland and Hoskisson, 2012). Thefirm needs to compare the standards set and actual performance to know the actualresults. After that, business unit evaluates the results and analyses the same if anychanges are required. This can help manager to understand the plan for changing needs.Along with that, manager can adopt different methods to evaluate the results. Mark andSpencer when formulating and business strategy they regular monitor those strategy sothat they can perform well in the market and whatever the steps they took it should beimplemented properly. sPorter’s five forces modelWhen any company enters in a new market, to analyse the environment is very important(Wheelen and Hunger, 2011). By analysing the environment, company can find the chance ofentering in a new market. The enterprise can comes to know about the the foreign competitorsin the market and their strength, weakness. t opportunities the firms have if they expand therebusiness in other countries. the enterprise can do the market anyasis using the five force portersmodel. This model considers five factor on which company’s profitability is based. Tounderstand the market, this model can help company a lot. This model states that the enterpriseshould be competitive enough so that they can beat other organisation in the market. Company’s profitability does not depend upon the goods and services that enterpriseproduces. It depend on the competitive advantage which organization has this can take theinstitution for the further success. This model helps business unit to decide whether firm invest inthe particular country or not (Swayne, Duncan and Ginter, 2012). The firm analysis the return oninvestment of the different projects Marks and Spencer is planning to expand its business in
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents