Strategic Factors Affecting SWOT Analysis of Marks and Spencer

This report discusses the strategic factors affecting the SWOT analysis of Marks and Spencer, including strengths, weaknesses, opportunities, and threats. It also explores the key drivers impacting the operational analysis of the company in the global business environment.

BM461 Global Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
Strategic factors affecting the Swot analysis..............................................................................3
Key drivers impacting operational analysis of chosen company................................................4
CONCLUSION ...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Strengths and weaknesses are the internal factors of an organisation that not only help
them in protecting the market share in existing industry but also penetrate into new market
industry when required. Based on the PESTLE Analysis , Marks and Spencer have been a
successful company with good capital and resources. In this present report discussion about
SWOT analysis along with its impact on operations is covered.
Strategic factors affecting the Swot analysis
SWOT analysis
Strengths - Expansion of new projects requires good resources and strong cash flows.
Marks and Spencer have successful record of new product innovations, also has been integrated
to various technology companies for streamlining its operations and building a strong supply
chain.
A strong brand image made organisation expand its portfolio into new categories of
products such as automation activities enhancing product quality and enabling the firm in scaling
up and down demand conditions in the market economy (Hajizadeh, 2019). Marks and Spencer
have been executing many new projects that resulted in good returns on the organisation's capital
expenditure opening up new streams of revenue generation. These internal strategic factors
discussed above became a strength to the chosen company in diversification of economic risk
cycle and building of new revenue streams.
Weaknesses- Some areas the selected company can improve upon can help in strategic
positioning and add up as a competitive advantage to the organisation. As per the vision of the
company, marks and Spencer should invest more into new technologies for proper integration of
processes carried on. Facing difficulty in merging firms having distinct work culture is a
challenge and weakness at the same time (Jahani, Rostami and Shabanzadeh 2016). Financial
planning of Marks & Spencer is also said to be improper needs more efficiency. It includes
analysis of company's current asset ratio, liquid asset ratio for using cash appropriately in future.
Since the chosen entity is facing difficult challenges with new entrants entering the market
leading to loss in market shares in niche categories.
The other two factors affecting the market are the external components that impact the
functioning of chosen company in various ways are mentioned in following points:

Opportunities: Procurement of products by state and federal government contractors
have been made possible through green drive is a great opportunity for Marks & Spencer.
Introduction of new technologies is one way of maintaining customers loyalty with effective
services and attracting new customers too. If transportation costs can be minimized, it will help
the company in bringing down the cost of its products which eventually result in both customers
gain and long term profitability in business. Low inflation rate is also an opportunity for Marks
& Spencer of luring new customers and rise inn market share as it increases the spending
capacity of consumers having lower interest rate at credit they take (Phadermrod, Crowder and
Wills, 2019).
Threats: Different laws of different countries has its own policies which can be a threat
to chosen company being a global company, if exposed to new liability claims and change in
policies. Also product standards of every country vary from each other can become a new
challenge for company, if not able to meet up quality measures of emerging markets. Rise of
local distributors can become a threat as they both may have access to similar raw material
giving a competitive edge to the company.
Key drivers impacting operational analysis of chosen company
Marks & Spencer, a global retailer company has impacted the industry economy in
marketing and human resource departments on a broad level discussed below as follows:
Marketing Management: The company has adopted an educative business strategy for
its marketing and presence among the consumer market. (Leiber, Stensaker and Harvey, 2018). It
included segmentation of market implementation, promoting its presence online and many more.
With the help of proper swot analysis, Marks & Spencer come up with in line new offerings
according to the latest trends appearing in Industry such as healthy food delivery concept for
consumers.
There was a strong coordination among all stores of Marks & Spencer who successfully
help marketing campaigns with editorial features like Adventures of Wonderland, showcasing
vibrant way of new product range. The company has also done wonders in building e-commerce
structure spreading its reach world-wide. This multi-channel retailer company have invested
heavily in systems, logistics and IT sectors reaching maximum customers through online stores,
website and mobile devices etc. (Brka, Al-Abdeli and Kothapalli 2016)Marketing of the firm
depends on the expected sales driven by its availability, price and services factor. Corporate

social responsibility is also a part of companies marketing and goodwill generation that benefits
needs of all seller, buyer and the society as a whole.
Human Resource management: The brand value of the company is highly recognized
by various professionals and fresher talent who are willing to become a part of the organisation
and its future technological strategies. With the company's wide variety of products there are a
large number of outlets around the world. Thus these stores provides good opportunity of
employment to huge numbers capable of showcasing required skills. Being a leading retailer of
food, clothing ,home ware and financial services requires good human resource planning for
recruitment an selection of new employees in the organisation.(Vlados, 2019)
Marks & Spencer focuses on investing in human resources by applying Guest's Model of
HRM for taking appropriate decisions for company workforce. The model introduced by David
Guest includes three components that are HRM strategies, practices and outcomes helping the
firm to take strategic decisions.
Managing employees requires a proper strategy that includes motivation to workers,
evaluation methods used for motivating employees, equality and fairness in the organisation.
HRM practices involve training provided to employees, application of performance appraisal
techniques and healthy relationship building among all staff members working. Positive
outcomes form all strategies made and practices applied is important.
CONCLUSION
From above discussed it has been concluded Marks and Spencer have a flexible working
environment for employees so that they can focus together as a team on the goals , objectives and
productivity of business. With the company's wide variety of products there are a large number
of outlets around the world. Outcomes therefore can be based on factors that are performance,
financial and behavioural outcomes. The distinctive approach adopted by Marks and Spencer
help them get a competitive edge over others through strategic deployment of its human
resources.

REFERENCES
Books and journals
Brka, A., Al-Abdeli, Y. M. and Kothapalli, G., 2016. Predictive power management strategies
for stand-alone hydrogen systems: Operational impact. International Journal of Hydrogen
Energy. 41(16). pp.6685-6698.
Hajizadeh, Y., 2019. Machine learning in oil and gas; a SWOT analysis approach. Journal of
Petroleum Science and Engineering. 176. pp.661-663.
Jahani, A., Rostami, V. and Shabanzadeh, M., 2016. The Impact of management duty duration
on the Operational Cycle duration of the Companies Listed in Tehran Stock
Exchange. Journal of Social Sciences and Humanities Research. 4(01). pp.16-25.
Leiber, T., Stensaker, B. and Harvey, L. C., 2018. Bridging theory and practice of impact
evaluation of quality management in higher education institutions: a SWOT
analysis. European Journal of Higher Education. 8(3). pp.351-365.
Phadermrod, B., Crowder, R. M. and Wills, G. B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management. 44. pp.194-203.
Vlados, C., 2019. On a correlative and evolutionary SWOT analysis. Journal of Strategy and
Management.