Report on Developing Business Strategies - Marks and Spencer

Business Strategy

TABLE OF CONTENTS
INTRODUCTION:.........................................................................................................................1
TASK 1............................................................................................................................................1
P 1 PESTEL analysis of Marks and Spencer..............................................................................1
M 1 Macro environment and strategic management decisions...................................................4
TASK 2............................................................................................................................................4
P 2 Internal environment of Marks and Spencer.........................................................................4
M 2 Accessing the strengths and weakness of Marks and Spencer...........................................6
TASK 3............................................................................................................................................7
P 3 Porters five force model for Marks and Spencer..................................................................7
M 3 Strategies to improve competitive edge and market position..............................................9
TASK 4............................................................................................................................................9
P 4 Strategic planning for Marks and Spencer............................................................................9
M 4 Management plan with strategic objectives.......................................................................13
CONCLUSION:.............................................................................................................................13
REFERENCES:.............................................................................................................................14

INTRODUCTION:
. The growth and development of every business entity is entirely dependent on
formulating and implementing of strategies. Business strategies plays a crucial role in survival
and long term success of organisations. These strategies affect the internal and external
environment of overall business. This report shows the external environment and its influence in
developing strategies of the business. Further, internal environment that includes strengths and
weakness of organisation is shown.. The porter five force model and its effect market is shown.
In the end the models and strategies that are used to take strategic decisions are described.
For undertaking this the present organisation is selected is Marks and Spencer. The cited
firm belongs to retail sector and operates globally. The existence of the company on such a great
level requires effective business strategies. Thus, this report will help in developing a relevant
one for the cited establishment.
TASK 1
P 1 PESTEL analysis of Marks and Spencer
PESTEL is a mnemonic which denotes P for political, E for economical, S for social, T
for technological, E for environmental and L for legal. Every business is affected by the external
business environment in which they operate. It is due to the various factors which influence the
business decisions that are to be taken. It is a concept which defines the marketing principles.
The business like marks and Spencer will analyse these factors while taking decisions. The
explanation of these factors are given below:

Political factors- They are those factors which are controlled by government. Sectors which
involves government anticipation are trade policy, trade restrictions, political stability, etc.
decision regarding what kind and quantity of goods or services will enter or go out of country is
taken by government. Other than these rules and regulations such as safety, health, risk control
has to be abide by every company. These factors influence the business to a great extent. Marks
and Spencer interact with government in order to protect their interest and develop policies. It is
one of the most powerful company in retail sector so it is difficult to compete with them. Factors
which affect marks and Spencer are political stability and VAT of different countries. Increase in
taxes and VAT forces them to increase their prices that leads to decrease in sales volume
(Prajogo,., 2016.)
Economic factors- It determines the performance of economy of the nation which directly
impacts the long term run of business. It included factors like inflation rate, GDP, etc. foreign
exchange rate and economic growth helps in defining the economy. To control the inflation
fiscal and monetary policies are properly managed by government. Marks and Spencer consider
issues like interest rates, GDP to ensure sustainability for long run. The clothing sector
contributes their in GDP as gives employment to many people. A healthy economy will be good
Illustration 1: PESTEL analysis