Business Strategies for Emerging Markets

This assignment delves into the realm of business strategies specifically tailored for emerging market economies. It utilizes Renault Romania as a compelling case study to illustrate these strategic approaches. The analysis encompasses key elements such as PESTLE analysis, which evaluates political, economic, social, technological, legal, and environmental factors, alongside stakeholder mapping to identify and analyze relevant stakeholders involved in the company's operations.

Business Strategy

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Business mission, vision, goals and objectives as well as the core competencies................2
1.2 Factors that have to be considered when formulating a strategic plan..................................3
1.3 Techniques used when developing strategic business plans..................................................3
TASK 2............................................................................................................................................4
2.1 Current strategic positioning of Mark and Spencer...............................................................4
2.2 Environmental audit of Mark and Spencer............................................................................5
2.3 Significance of stakeholder analysis when formulating a new strategy................................6
2.4 New strategy for Mark and Spencer......................................................................................7
TASK 3............................................................................................................................................7
3.1 Alternative strategies related to market entry, substantive growth, limited..........................7
3.2 Analysis of the appropriateness of alternative strategies.......................................................8
TASK 4............................................................................................................................................8
4.1 Roles and responsibilities of personnel in charge of implementing the strategy..................8
4.2 Estimated resource requirements to implement the new strategy.........................................9
4.3 Contribution of SMART targets to the achievement of the strategy implementation...........9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Companies around the world focus on gaining maximum profit. It requires to understand
the need and requirement of customers and to deliver them accordingly. Further, there are
strategies applied so with respect to price, quality, quantity, etc. that enables to develop positive
perception within the mind of service users (Bharadwaj, El Sawy and Venkatraman, 2013). It is
important that management of the firm have proper support from the side of employees so they
will be able to enact the strategies in effective manner. To carry out the report, Mark and Spencer
is taken into consideration. Cited firm aims at delivering their customers with high quality
services. For this purpose, they conducted market research so that they can understand the
requirement of customers and take up appropriate steps with the help of which the rate of
performance level can be improved (Bran, Balu and Ioan, 2015). It was founded in the year 1884
and it is a British multinational retail that is headquartered in London. It is found that there are
about 979 stores across UK and it also includes 615 stores that are only focused on delivering
food products. Main focus of the firm is to deliver clothing, house products and luxury food
products. However, their initial start up was on clothing, then slowly they expanded their product
line to house and food products. Further, the organization has also international operations
around different countries and they are focusing on expanding their businesses to countries that
they have not reached. More specifically, there are about 454 stores that are operated
internationally.
With time there are many changes that are applied so that they are able to attract more
and more customers. It is identified that the taste and preference of customers changes frequently
and Mark and Spencer has aimed at understand the requirements and in delivering services
accordingly (Burger and Weinmann, 2012). Further, there are many effective sources that are
adopted by cited firm so that they are able to promote their products and services. In this context,
they make use of social media to provide information about their good. Further, there are online
services also delivered so that customers are able to reach their products. There are certain set of
issues that are also faced by them in which it becomes difficult to operate in effective manner. In
this context, one of the main cause is in relation with competition. There are many firms around
the world that deliver their customers with similar type of products and services. All these firm
under retail make use of strategies so that strong customer’s base can be developed (Chun and
Lee, 2013). However, the quality products delivered and the trust that they have formed enables
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to maintain their sales and profitability. Further, the prices that are taken by them for their
products are comparatively but the goodwill that they have developed has helped them attract
customers in positive manner. Present report covers, analysis of factors that have to be
considered when formulating strategic plan. Further, it covers significance of stakeholder
analysis when formulating new strategy. Lastly, it also includes analysis of estimated resources
that are required for implementation of new strategy for Mark and Spencer.
TASK 1
1.1 Business mission, vision, goals and objectives as well as the core competencies
All the companies develop their own set of goals and objectives so that they are able to
direct workers towards the development of growth. In this accordance with Mark and Spencer,
below given are the Mission, vision, goals and objectives and their core competencies:
Mission: This is helpful enough to reflect on the type of business they are willing to
deliver. In this context, mission of Mark and Spencer is to deliver high quality services to their
customers.
Vision: This is helpful enough to determine the goals in effective manner. As per the
visions that are set by Mark and Spencer, they focus on development of future. Further they take
up strategic decision so that growth can be enhanced (Kumar and Anand, 2013). They focus on
to be the most desirable brands on which people can trust and rely.
Goals: Goals are set for short period of time, it enables to workers to develop path on
which they will be able attain them. They aim at raising their sales and profitability. This is done
by understanding the requirement of customers and taking up appropriate steps so that sale can
be raised.
Objectives: Main objective of the cited firm is to regain their leadership in clothing and
speciality food (Lipitakis and Lipitakis, 2012). Further, they have set training and development
so that areas in which employees lack can be developed. Moreover, monitor their employees so
that they are able to determine the areas in which improvement is required and appropriate steps
are taken with the help of which they can improve their skills and capabilities.
Core competencies: They understand the need of customers and deliver those services
and products accordingly. Research and survey are conduced so that areas of improvement are
identified.
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1.2 Factors that have to be considered when formulating a strategic plan
There is different type of factors that has to be considered so that strategic plan can be
implemented. As per the firm selected that is Mark and Spencer, it is can be stated that they
should follow below given considerations:
Communication: To implement or to form any type of strategic plan, it is important that
all the departments working within cited firm should have proper interaction with each other,
each any person have their own set of preferences and way of thinking (Matt, Hess and Benlian,
2015). When management is able to convey information for the strategic plan, then they can
determine the perceptions that are carried out by each of the person.
Leadership: It is important to consider key person who will control and provide
directions to other employees. This way, it becomes favourable enough to reduce the rate of
confusions.
Engagement: All the employees need to have proper support so that they will be able to
make proper analysis of the roles and responsibilities that has to be played by each of the
workers. Mark and Spencer should select key individuals who will be able to guide other for the
plan that are developed.
Systematic plan: All the workers involved should know step by step plan that has to be
followed. When they understand the goal that has to be attained, then they are able to develop
path on which they reach them.
Financial support: For development of strategic plan, there are many different type of
activities that has to be set (McCormick, Mitullah and Ommeh, 2015). In this context, there are
cost incurred and it requires to make sure that proper planning is made so that all the activities
planned are completed.
1.3 Techniques used when developing strategic business plans
There are many different type of techniques that are helpful enough to make sure that
strategic plan is formed. In this context, mark and Spencer should follow the below given
techniques for the formation of strategic business plan:
BCG matrix: This is a type of technique that is based on the observation in which the
firm can divide their business units in 4 different categories depending upon the market share
and its growth.
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Star: This represents fast growing industry, Mark and Spencer has large market share.
However, it is important to have huge investment to be made (Saebi and Foss, 2015).
Cash cow: It is a type of industry that is slow and mature. This requires the cited firm to
invest little and then they can generate cash.
Question marks: This represents that there are low market share. Firm can make use of
expansion strategy to raise their market share.
Dogs: It has low market growth and low market share. Further, it does not have ways to
generate cash and they also do not require huge amount.
SPACE: This is can be determined to be the management tool that is helpful to make
analysis of the firm like Mark and Spencer. It has four different type of quadrants and they are as
follows:
Aggressive: This is focused on determining the requirement or areas in which
improvement needs to be made (Saeed, Khan and Ahmad, 2013).
Conservative: It is the situation in which there are requirement of financial support so that
implementation of plan possible.
Defensive: They aim at determining the risk that can occur when strategies are to be
adopted.
Competitive: New strategic plan is formed so that they are able to improvement
performance level.
TASK 2
2.1 Current strategic positioning of Mark and Spencer
In order to evaluate the strategic position of the firm, there are different types of tools that
can be used. In this context, below given are the SWOT and Ansoff matric conducted for Mark
and Spencer:
Strength:
 This is determine to be one of the powerful retails and holds majority of shares. This way,
it can be stated that the type of perception that are carried out by customers are positive.
 The type of products that are delivered by the firm perceives value for money because of
the quality that is delivered (Verbeke, 2013).
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 There are about more than 1000 stores around the work and so it can be stated that the
rate of customer reach is high.
 Further, to operate in these stores there are about more than 80000 workers as their
workforce globally.
Weakness:
 The rate of competition for other retails is high.
 It is important for the form to protect themselves from fake products so that brand value
may not get affected.
Opportunities:
 They have the opportunities to develop their own website.
 New or innovative market segment can be introduced. This will enable to attract more
customers.
 There are many other countries in which they can expand their business like China.
Threats:
 The rate of high competition is threat for the firm
 Different countries have diverse type of polices and it is important proper steps are taken
so that they operate their business in effective manner (Blackburn, Hart and Wainwright,
2013).
 Firm is exposed to different political facts when they operate in different counties.
Ansoff matrix: It focuses on the potential of market and products. These consist of four different
type of growth strategies and they are as follows:
Market penetration: They focus on improving their existing products and services.
Market development: They aim at expanding their business to new market segment.
Product development: New product is developed for existing market segment.
Diversification: New business is formed for new market.
2.2 Environmental audit of Mark and Spencer
In order to carry out the research in effective manner, there are different types of tools
that are helpful enough to carry out the environmental audit. Cited firm is planning to expand
their business at China. In this context, below given are the method and tools:
PESTLE: This is helpful sources that enable to make proper evaluation of the business in
effective manner.
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Political: Different countries have diverse type of fiscal and monitory policies that are
followed. When the rates of these policies are high, then it has negative impact on the firm as
they have to make changes in the price (Klettner, Clarke and Boersma, 2014). For example,
when fiscal policy is high at Australia, then Mark and Spencer needs to charge higher from
customers and this is done by raising the price of their products.
Economic: There are conditions like recession or inflation due to which it becomes
difficult for the business to operate in efficiently. The purchasing power of customers gets
negatively affected during the condition of inflation or recession.
Social: Taste and preference of customer’s changes frequently and it is important that
appropriate steps are taken so that they are able to develop their products and services
accordingly (PESTLE analysis, 2014).
Technology: With time, there are changes identified and it is important that firm make
use of updated or new technology.
Environment: The country in which the business operated should not be harmed
appropriate steps should be taken so that environment is protected.
Porter’s five forces: It is an effective tool that enables to understand the competitiveness of the
firm. There are five aspects that are included and they are as follows:
Competitive rivalry: This focus on the number of competitors that Mark and Spencer
have at China. The rate of competition at China is high (Leonidou, Fotiadis and Katsikeas,
2015).
Supplier’s power: The supplier’s power at China is also high. There are many suppliers
who can deliver materials for the business.
Buyer power: The rate of power for buyer is also high.
Threat of substitution: There are many other likely products that can be used by
customers as substitute.
2.3 Significance of stakeholder analysis when formulating a new strategy
Stakeholders can be determined to be the one who affects the business operations and are
involved in the business activities. There are many stakeholders who are involved in this process
and they are as follows:
Employees: They are the face of organization as they have direct interaction with
customers (Bharadwaj, El Sawy and Venkatraman, 2013). They are the one who present the
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products and services to customers. It is important for the cited firm to have supportive
employees so they will be helpful enough to achieve the required goals and objectives.
Figure 1: Stakeholders Matrix
(Source: Stakeholder matrix - key matrices for stakeholder analysis, 2015)
In accordance with the above diagram, it can be stated that influence power of
stakeholders and interest of stakeholders have high impact over the business. There are four
aspects that have to be met by Mark and Spencer, these are meeting their requirements, key
players, least important and showing considerations.
Suppliers: They are the one who provide the raw materials to the firm. When
management have strong relation with suppliers, then they are able to meet the demand of
customers.
Government: There are many type of policies and procedures that are applied by the
government. It is important that firm has close relation with customers so that they are able to
perform their business in effective manner (Bran, Balu and Ioan, 2015).
Investors: They provide financial support so that all the activities that are set can be
attained in effective manner.
2.4 New strategy for Mark and Spencer
In accordance with the audit that was carried out, it can be stated that there are certain set
of areas that has to be considered so that cited firm is able to focus on the sales and profitability.
In this context, below given are the plans that are formed:
Business expansion: As per the audit carried out, it can be started that there are many
countries around the world in which business needs to be expanded. In this context, China is an
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appropriate and suitable market in which the business can be expanded (Burger and Weinmann,
2012). The economic and political factors are preferable for the business and they will be able to
make their business expansion. Further, firm will be able to develop strong customers. However,
it is important that proper research is conducted so that the taste and preference of customers are
identified and services are delivered accordingly.
Low price: From the audit has helped in identifying the price of products and services
delivered by the firm is high (Chun and Lee, 2013). It is important that proper steps are taken so
that the rate of can be reduces. This is effective enough to attract more and more customers.
TASK 3
3.1 Alternative strategies related to market entry, substantive growth, limited
For each of the plan that are developed consist of different type of alternative strategies
that can be applied by the business so that the rate of performance can be improved.
Market entry: In accordance with this strategy the firm can select a country in which
business can be expanded (Kumar and Anand, 2013). In this context, for expansion of business
China is selected as it is an appropriate market for expansion.
Sustainable growth: Sustainable growth is possible when the firm take appropriate steps
with the help of which the rate of wastage is reduced. In this context, it is important that are
implementation of new or updated technology so that wastage can be reduced and profitability is
raised.
Limited growth: In accordance with this strategy, the firm aims at focus improving the
quality of services (Lipitakis and Lipitakis, 2012). This way, it becomes favourable enough
attract more and more customers.
3.2 Analysis of the appropriateness of alternative strategies
In accordance with the alternative strategies that are applied, there are different aspects
that are considered. These are helpful enough to make sure that the goals and objectives that are
set by the business are attained. In this context, below given are the alternative strategies that will
be applied:
Market entry: Mark and Spencer have many opportunities that they have in order to
expand their business. They do not have a proper website and so that firm can develop their
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business operation effectively and efficiently (Matt, Hess and Benlian, 2015). Further, they can
also improve their application in which customers can perform online business. This way, the
organization can improve the performance level in positive manner.
Improving service quality: This is determine to be another aspect that has to be
considered in which the firm has to focus on the services that are delivered. In this context, for
all the activities it includes involvement of employees (McCormick, Mitullah and Ommeh,
2015). When they are not able to perform their set of roles in effective manner, then it becomes
issue for the firm. Workers should be provided with proper training and development so that
skills and capabilities can be improved.
TASK 4
4.1 Roles and responsibilities of personnel in charge of implementing the strategy
In order to make the plan implement in effective manner, it is important to make sure that
appropriate steps are taken and the responsibilities are divided in effective manner. There are
many departments that work together within business operations of Mark and Spencer so that the
strategy that has to implement can be enacted in effective manner (Saebi and Foss, 2015). Below
given are the role and responsibilities of each department:
Finance department: They are the one to make sure that for all the activities there are
appropriate financial support so that all the activities can be completed in effective manner.
Further, it also requires to have proper planning so that the strategies can be completed.
HR department: For the all the set activities, it is important to have proper support from,
the side of employees who will be able to enact the business strategies in effective manner
(Saeed, Khan and Ahmad, 2013). In order to expand the business in new market, it requires to
have proper recruitment and selection process to be carried out so that skilled workers can be
identified.
Marketing department: Main role of marketing department is to make sure that all
customers are provided with the information for the strategies that are being adopted. They are
responsible to clarify all the doubts that they have in relation with the products and services.
4.2 Estimated resource requirements to implement the new strategy
There are many set of requirements that are needed so that the new strategy can be
implemented in effective manner. In this context, management need to make sure that they have
proper financial support so that all the plan that is formed can be achieved (Verbeke, 2013).
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Further, it also required to have human resource so that all the planned activities can be
performed in effective manner. In addition to this, time has to be properly scheduled so that the
set strategy can be completed within speculated time period. More specifically, there are many
aspects that are required so as to attain the objectives set. Few of them are as follows:
Lands: To make business expansion, it is important to make sure that appropriate area or
land is decided. Customers should be able to reach out physical store and make use of the
products and services delivered by cited firm.
Raw materials: Mark and Spencer delivers clothing and other products to their customers
and so to make their business expand, it requires to have appropriate use of materials so that they
can meet requirement of customers.
Technology: Changes in technology that place frequently and it is important for the
business to use new or updated technology so that high quality service can be delivered.
Finance: In all the activities that Mark and Spencer are willing to use need to have
appropriate support of finance so that that can attain their goals and objectives.
Human resource: For undertaking activities, it important that human resource are
available who put on their full efforts to support the firm to grow.
4.3 Contribution of SMART targets to the achievement of the strategy implementation
SMART objectives are formed so that the strategies by Mark and Spencer can be
implemented in effective manner. Main focus of the firm is to raise their profitability by the end
of 2020. In this context, below given are the objectives that are set:
 To increase market share by 20% by the end of 2018.
 To increase employees performance level by 10% by the year 2018.
 To increase sales by 25% by the end of 2019.
By following this objectives, the firm will be able to perform their rate of performance in
effective manner. It is important that all the information is conveyed to workers so that they are
able to put on their full efforts.
CONCLUSION
In order to implement any strategy, it is required to have proper research to be conducted
so that they are able to understand the need and requirement of customers. This way, it is
favourable enough to attain the goals and objectives that are set by the business. Workers should
be properly monitored so that the areas in which improvement is required can be identified. As
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per the findings, proper training should be provided so that they are able to develop or enhance
their skills.
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REFERENCES
Books and Journals
Bharadwaj, A., El Sawy, O. A. and Venkatraman, N. V., 2013. Digital business strategy: toward
a next generation of insights. Mis Quarterly. 37(2). pp.471-482.
Blackburn, R. A., Hart, M. and Wainwright, T., 2013. Small business performance: business,
strategy and owner-manager characteristics. Journal of small business and enterprise
development, 20(1), pp.8-27.
Bran, F., Balu, F. O. and Ioan, I., 2015. Successful business strategies for emerging countries.
Case study: renault romania. Calitatea. 16(S1). pp.413.
Burger, C. and Weinmann, J., 2012. The decentralized energy revolution: business strategies for
a new paradigm. Springer.
Chun, Y. Y. and Lee, K. M., 2013. Life cycle-based generic business strategies for sustainable
business models. Journal of Sustainable Development. 6(8). pp.1.
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics, 122(1), pp.145-165.
Kumar, P. K. and Anand, B., 2013. Green Marketing: Theory, Practice, and Strategies. Indian
Journal of Marketing. 43(1). pp.54-56.
Leonidou, L. C., Fotiadis, T. A. and Katsikeas, C. S., 2015. Environmentally friendly export
business strategy: Its determinants and effects on competitive advantage and
performance. International Business Review, 24(5), pp.798-811.
Lipitakis, A. and Lipitakis, E. A., 2012. On the evaluation of certain e-business strategies on firm
performance by adaptive algorithmic modeling: An alternative strategic managerial
approach. Computer Technology and Application. 3. pp.38-46.
Matt, C., Hess, T. and Benlian, A., 2015. Digital transformation strategies.Business &
Information Systems Engineering. 57(5). pp.339-343.
McCormick, D., Mitullah, W. and Ommeh, M., 2015. Matatu business strategies in Nairobi.
Paratransit in African Cities: Operations, Regulation and Reform. pp.125.
Saebi, T. and Foss, N. J., 2015. Business models for open innovation: Matching heterogeneous
open innovation strategies with business model dimensions. European Management
Journal. 33(3). pp.201-213.
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Saeed, S., Khan, M. A. and Ahmad, R., 2013. Business Strategies and Approaches for Effective
Engineering Management.
Verbeke, A., 2013. International business strategy. Cambridge University Press.
Online
PESTLE analysis. 2014. [Online]. Available through:
<https://www.cipd.co.uk/knowledge/strategy/organisational-development/pestle-analysis-
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Stakeholder matrix - key matrices for stakeholder analysis. 2015. [Online]. Available through: <
https://www.stakeholdermap.com/stakeholder-matrix.html>.
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