Business Contexts and its Management - Strategic Planning for Marks and Spencer

This report discusses the impact of COVID-19 on the high-end retail industry and how Marks and Spencer can adapt to the changes. It includes an external and internal environment analysis, the VRIO framework, Lewin's change management model, Handy's model of organizational culture, and the PDCA cycle for strategic planning. The report also includes stakeholder mapping and recommendations for Marks and Spencer to attain profitability after the pandemic.

Business
Context and
its
management
1

Contents
PART 1............................................................................................................................................3
2.1 INTRODUCTION.....................................................................................................................3
2.2 External environment analysis.........................................................................................3
2.3 Internal environment competence analysis......................................................................4
2.4 Impact and influence of change and culture.....................................................................6
PART 2............................................................................................................................................8
2.5 Strategic planning.............................................................................................................8
3 CONCLUSION.............................................................................................................................9
REFRENCES.................................................................................................................................11
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PART 1
2.1 INTRODUCTION
The high-end retail industry is continuously changing and COVID-19 has accelerated changes
occurring in the high-end retail industry. Marks and Spencer is the elected organisation for this
report which is one of the most successful high-end British retailor. Marks and Spencer was
founded in the year 1884 and is expanded 200 countries reaching millions of consumers. This
report includes an industry trends analysis using appropriate tools along with recommended
strategic planning for Marks and Spencer to attain profitability after pandemic.
2.2 External environment analysis
The high-end retail industry is facing different changes simultaneously as COVID-19 has
disrupted the entire retail sector (Chen, Eshleman and Soileau, 2017). The main component
which affects the external environment of Marks and Spencer is the increase in digital shopping
and online retail bought about by COVID-19. Consumers have shifted to online retail instead of
physically shopping at retail outlets because of COVID-19 restrictions. This means that Marks
and Spencer need to focus on growth in online retail in order to adapt to consumer shift towards
digital shopping.
Another component which affects the external environment of high-end retail is the
rising consumer demand of no contact shopping. No contact shopping trend has also increased
because of the pandemic as it supports safety and reduces the spread of virus. Finally the UK end
retail sector has to deal with largely uncontrollable pandemic and Brexit caused complications
through supply chain. This has created difficulties in maintaining quick delivery experience for
high end retailers such as Marks and Spencer.
Market Opportunities for Marks and Spencer
There are different strategies which can help Marks and Spencer exploit market
opportunities in the high-end retail industry. The Blue Ocean and red ocean strategies can be
used to analyse the high-end retail industry and identify market opportunities for Marks and
Spencer. The red Ocean strategy focuses on industries which have existed for a long time period
and have intense level of competition (Evans and et. al., 2017).
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In context of Marks and Spencer, the company is currently operating in a red ocean
industry as the high-end retail industry have existed for a long time period with intense
competition from physical retailers as well as E-commerce organisations.
Covid-19 pandemic has increased this competition in the high-end retail industry as
international E-commerce companies such as Amazon are also offering high end retail products
Marks and Spencer need to move on from the reduction industry of high-end retail as there are
very low market expansion and development opportunities in this industry.
Identification of demand, which is not existing and expanding industry boundaries is the
focus of blue ocean strategy, which helps the company develop growth in uncontested markets
instead of fighting with existing companies in the red ocean industry (González-Rodríguez and
et. al., 2018). The rise in ecommerce shopping for high end retail products In the high intensity
of the competition in traditional high end retail industry, it is important that Marks and Spencer
adopt the Blue Ocean strategy by expanding industry. Marks and Spencer can expand industry
bold leaders of the high-end retail sector by offering differentiated consumer service through e-
commerce retail and innovative product portfolio, which meets the constantly changing
consumer requirements.
This can be done by improving delivery services and creating a strong supply chain so
that consumers are able to gain option of trying the apparel products before purchasing. In
addition to this investment in virtual reality and augmented reality trial rooms can also help the
company provide consumer services which help them try their products before purchasing. This
can, reinvent the whole high-end streets to shopping experience for consumers and deliver them
innovative value (Grayson and Hodges, 2017). Marks and Spencer will be able to create a blue
ocean market with the help of Innovative technology and better supply chain management.
2.3 Internal environment competence analysis
VRIO framework
Resource Valuable Rare Imitable Organized
Distribution
system
Yes No No No
Human
resources
Yes Yes No No
Product Yes Yes Yes No
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Portfolio
Brand image Yes Yes Yes Yes
Valuable: The international distribution system of Marks and Spencer, is a valuable internal
strength of the company as it helps the company timely deliver products to consumers all across
the globe. This internal strength the company supports the firm in dealing with E-commerce
competition such as Amazon. Marks and Spencer has created a global workforce of 78,000
employees who are highly skilled and trained in providing consumers effective consumer
service. This internal competency helps Marks and Spencer deliver the high-end retail
experience to consumers through online or offline channels (Fontana, Atifand Heuer, 2022) . The
diverse product portfolio offered by Marks and Spencer is valuable which includes groceries
clothing and personal care products which makes it one stop shop for various high quality retail
products. Finally, Marks and Spencer also has the internal strains of international brand
recognition and positive brand image which is valued for supporting international growth.
Rare: The large global workforce of Marks and Spencer, which is trained for providing
consumers exceptional experience is a rare internal competency as constructing a talented
workforce in different international market requires time, financial investment and knowledge in
handling cross-cultural issues. Marks and spencer has been able to build loyal consumer base
with the help of high-quality consumer experience delivered by the company in different
international markets. Product portfolio of Marks and Spencer includes essential products such
as daily use groceries as well as innovative products such as vegan meal range. The strong
product portfolio of Marks and Spencer is rare as it not only requires financial investment but
also perform market research to identify the innovative products which can attract consumers.
The brand image of Marks and Spencer is associated with its longstanding history in UK high-
end retail industry which makes it rare.
Imitable: The product portfolio of Marks and Spencer cannot be easily imitated Because
businesses need to invest in creating a strong local supply chain and. Investment in research and
development. In order to create a product portfolio which is able to target different consumer
segments (Esoimeme, 2020). Marks and Spencer is able to update its clothing lines quickly to
offer consumers trending products which makes it harder to imitate the product portfolio of
Marks and Spencer. Businesses need to become highly responsive to change sin small market
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trends specifically in clothing industry in order to replicate the strong product portfolio of Marks
and Spencer in a viable manner. Marks and Spencer has been active in the UK high injected
industry since 1800s and has adapted its branding to changing circumstances over the year,
which has made its brand image difficult to imitate. It is essential to invest in long-term survival
in order to gain such positive brand recognition and brand image like marks and Spencer.
Organized: the brand image of Marks and Spencer is organised as it I supported the company in
effectively adapting to changing external circumstances of the high end retail industry and.
Entered foreign markets with less difficulty. The respective business firm has been successful in
creating a brand image which is synonymous to high quality and better consumer experience
which has helped the company attract foreign consumers and effectively shift its consumers to
online retail. Success of own brand retail products offered by Max and Spencer can also be
attributed to the positive brand image of the company.
2.4 Impact and influence of change and culture
Lewin’s change management model
Lewin's change management model provides a simplistic structure towards managing this change
as it can be completed in three easy stages (Holotiuk and Beimborn, 2017). Marks and Spencer
can apply the living senior management model in the company to introduce, change and
implement new strategies for increasing profits after the COVID-19 pandemic. The application
of Lewin’s change management model is provided below:
 Unfreezing: The first stage of the Lewin's change management model, focuses on
preparing the organisation for the impending change. It is important that present behaviours
and practises adopted at the company are analysed and examined so that employees are able
to accept changes and contribute to effective change management. Marks and Spencer needs
to inform employees about the plans related to the change so that they are motivated towards
participating in the change management process. Managers at the company need to
communicate individually with each employee so that they are able to understand the
significance of change and lower the resistance towards the change management process.
 Changing: The focus of the second stage of fluency in management process is the actual
process of implementing change (Johnson, 2016). This is a crucial stage of change
management as tangible change take place in this stage and plans and strategies are executed
for successfully achieving change. Leaders and managers at Marks and Spencer need to
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continuously communicate with employees so that they gain a support system during change
execution.
 Refreezing: in the final Stage of the winds change management model, the changes
institutionalized, and becomes a part of organisational culture. It will change. It will change
institutionalisation can be attained by Marks and Spencer through enforcement programmes
and taking employee feedback. In addition to this, providing employees rewards in exchange
of successful implementation of change in organisational culture is also an effective way of
making Change a part of organisation culture at Marks and Spencer.
Handy’s model of organizational culture
 Power Culture: In this type of culture power is centralized to a single body or individual
and decision making is connected by the individual with central power in the company
(Leonidou and et. al., 2017). The impact of power culture on Marks and Spencer
management decision making is that opinions and views of employees will not be considered
in management decision-making. This can reduce employee morale.
 Task Culture; The focus of task culture is on achieving targets under a specific time.
Managerial decision-making it Marks and Spencer will be affected. But this type of culture
Actions will be taken to achieve targets and specific internal and external goals under
deadlines.
 Role culture: Employees are divided into specialised departments and the aim is to
achieve business objectives Department specific rules and responsibilities. This will make
managerial decisions more departmental as each department will have certain amount of
autonomy.
 Person culture: In the final type of organisation culture, the focus of the company is on
Interest of employees and benefits of the workforce (Linder and Williander, 2017). The focus
of person culture is on Maximising employee interest in benefits, even if it Hinders the
interest of other stakeholders such as investors. Manager decision-making at Marks and
Spencer will move towards improving employee satisfaction due to this type of
organisational culture. This can distract the company for achieving business goal and long
term survival.
Effectiveness of operational functions
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Six Sigma is a widely used approach of project management which is based on improvement of
quality of project (Madhushree, Kumar and Aithal, 2018). Under this, a lot of techniques are
used in order to maintain overall quality throughout the production. Marks and Spencer can
apply different six sigma methodologies to attain improve various operational functions such as
inventory management and enhance product quality while reducing waste.
Stakeholders Mapping
LEVEL OF INFLUENCE
LEVEL OF
POWER
HIGH LOW
HIGH Shareholders, Workforce Government
LOW Consumers Suppliers
Stakeholder map is funding the identifying the main stakeholders of the company and
dividing them in different grids according to their influence and power on the company (Moseley
2017). In context of Marks and Spencer, the shareholders and workforce of the company have
higher influence and power over the company because Shareholders have influence over the
financial aspect for company and also power over decision-making. Employees At Marks and
Spencer add responsible for giving exceptional customer service and ensuring smooth
functioning of the company, which increases their power influence over the company.
The government has low level of influence but high level of power over Marks and
Spencer as the company has to comply with the legislations approved by the government in
different countries. Consumers have low level of power over Marks and Spencer as they cannot
directly impact the making at the company. However, Marks and Spencer consumers can
influence Introduction of the company is the goal of the company is to ensure consumer
satisfaction. Suppliers of Marks and Spencer have low power and low influence over the
company as there are many different suppliers offering same quality of products and Marks and
Spencer can easily switch to different supplier without affecting supply chain functioning.
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PART 2
2.5 Strategic planning
Strategic planning is important for businesses as it helps the company determine specific goals
and time periods along with immediate actions which can be taken to make improvements in
various areas (Ransbotham and et. al., 2017).
PDCA Cycle
The PDCA cycle is proposed as a framework for constant improvements in different business
areas, which can help the company make progress. The PDCA cycle is rooted in quality
management and improvement, along with statistical analysis. Marks and Spencer can
implement this cycle in order to make improvement in different areas of the business so that
profitability can be improved after the COVID-19 pandemic.
Plan
The focus of first stage of the cycle is on planning the project size and picking small steps
towards determining a comprehensive plan Words improvement in different functional areas of
the company. Marks and Spencer needs to determine the core problem which has affected the
company and stops thee firm from effectively adopting the Blue Ocean strategy. This core
problem can be used to create a comprehensive and precise plan for improvement. Marks and
Spencer needs to determine the best solutions according to the current resources available at the
company.
Do
Executing the decided plan is the second part of the PDCA cycle. In this stage Marks and
Spencer needs to determine the problems and values which can. Affect effective execution of the
plan. the respective organisation needs to assign clear roles and responsibilities and develop
standardisation policies so that the plan is implemented smoothly.
Check
The third stage of the cycle helps clarify the planning process and stop mistakes from
hindering successful completion of the plan (Raut and et. al., 2019). Marks and Spencer needs to
audit execution and determine the viability of the initial plan. In addition to, this company also
needs to determine the problematic aspects of the plan and eliminate them as soon as possible so
that the risk of Adopting a blue ocean strategy is reduced.
Act
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In the final stage of the cycle the focus is on implementing the plan in an effective manner. And
create a standard baseline for strategic planning. Marks Thanks Spencer, needs to ensure that.
Team goes through all the steps of the PDCA cycle in order to make improvements in different
areas.
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3 CONCLUSION
From the above report it is determined that. External environment of the organisation is
constantly changing as new opportunities are being created and new market changes are being
introduced. Different strategies can be adopted by the company in order to realise new
possibilities in the market and exploit uncontested fields of the industry. Blue ocean and red
ocean strategy are an important framework which can help the company determine uncontested
market space and expand industry boundaries. In order to adopt a specific strategy for achieving
growth, it is in central to determine internal capabilities of the company. This can be done with
the help of VRIO framework. Change in culture have a huge impact on daily activities of the
company along with decision-making. Organisations in the high end retail industry need to adopt
suitable operational functional tools such as Six Sigma in order to increase operational
effectiveness and competitive advantage. Company decisions need to be made according to the
interest of different stakeholders and priority of different stakeholders which can be completed
by stakeholder mapping. Strategic planning is essential for achieving long term growth in
industry and PDCA cycle helps businesses create repetitive, instantly strategy for achieving
continuous growth.
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