Business Strategy Assignment : Mark & Spencer

Business Strategy

INTRODUCTION
Business strategy is a framework which help company to identify its potentiality to adopt
challenges or threat as well as the current market stability so as to bring company ahead than
their rivals. In other words, business strategy outline the tactics, methods and pathways attained
by an organisation in order to accomplish future goal (Aithal, 2016). An appropriate strategy
recognises where position of business has attained and how it create cohesion within an
organisation to achieve target goals. It exist in two types i.e. generic or general and competitive
strategies. However it plays as a vital role as it enable company to do future projection for
growth or activity by considering past performance and fundamental values. In relation to Mark
& Spencer, one of the famous multinational retailer which is commenced in the year of 1884. It's
headquarter in London, UK and it offer wide range of products like clothing, home ware, food
products etc. This report covers application of PESTLE to analyse impact and influence of macro
environment on company and its business strategy, implication of SWOT and VRIO analysis yo
assess organisational internal environment and capabilities. Usage of Porter's five force model to
evaluate competitive forces of company, applying theories, concept, models to understand
business position among market and develop strategic plan for an organisation.
TASK 1
P1
Business strategy refers to an activity or plan consisting of managing and utilising
different kinds of resources such as human, physical resources etc. with an objective of achieving
organisational goals and objectives within pre-determined time period. It is an integral
component of company as it help organisation to identify or analyse internal and external
environment, evaluate current strategies, develop and analyse most productive alternate
strategies. Every business environment is a combination of internal and external or micro and
macro factor which impact company's profitability positively and negatively (Aithal, Shailashree
and Kumar, 2016). Thus in order to evaluate the macro factor, there is a tool which help firm to
understand challenges or opportunities i.e. PESTLE. It is a tool which is used to identify macro
(external) factors facing by an organisation as it help company to examine external forces which
impact business operations and productivity. In relation to Marks and Spencer, a famous retailer
in UK which deals into clothing, home ware , foods products etc. They have great influence of

external environment but Mark and Spencer is flexible in nature as they do optimum utilisation
of available business opportunity in order to maximise profits effectively. Therefore, to gain
more competitive advantage among market, Mark and Spencer apply PESTLE analysis which is
described below:
Political Factor: This factor determine the extent to which government and its policy may
impact on an organisation like taxation policies, regulation, rules etc. Recently, UK government
modified the safety regulation of food segment for providing better quality and healthy product
which negatively affect Mark and Spencer business operation (Mark and Spencer PESTLE
analysis essay, 2019). However, to reduce this negative affect Mark and Spencer reduce salt and
fat in food products which enable them to gain competitive advantage.
Economic Factor: This factor determinants economy performance that directly impact company
long term goal or objective as it includes inflation rate, interest rate, economic growth patterns
etc. . In current scenario of UK there is a conflict with small retailers over product price rise due
to currency impact of Brexit which negatively impact Mark and Spencer and its productivity.
However, UK has open economy and it rank among the fourth largest in world and its interest
rate is low to moderate which signifies as healthy economy. Thus, Mark and Spencer
concentrated more in clothing area and reduced the price of clothes which attracts more
customers towards company and it enhance their productivity.
Social Factor: These factors focus on social environment and identify emerging trends as well as
help marketer to understand customer's needs and wants (Akter and et. al., 2016). In present
scenario of UK , there is huge demand of different trends and fashion regarding clothing among
middle aged group customer i.e. classic collection, limited collection etc. which influence Mark
and Spencer productivity negatively. However, to tackle this negative effect Mark and Spencer
offered trendy clothes for 40 to 55 aged group people which enrich their profitability effectively.
Technological Factor: Under this factor, this is mainly determine the technological advancement
which can drive business to achieve competitive advantage in global market. It include changes
in digital or mobile technology, automation, research and development etc. In UK, there is
demand of online trading or shopping among customers which impact negatively on Mark and
Spencer's profit maximisation. Therefore, in order to tackle this negative impact Mark and
Spencer introduced innovative technology i.e. provided online shopping facility to UK customer