(PDF) Business Strategy Assignment Solutions
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Added on 2020-11-12
(PDF) Business Strategy Assignment Solutions
Added on 2020-11-12
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Business Strategy (Unit 32)
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P1) Analyse the impact and influence of the macro environment on Marks and Spencer and itsstrategies.................................................................................................................................1M1) Critical analysis of macro factors ..................................................................................4TASK 2............................................................................................................................................4P 2) Internal environment of M&S and capabilities-.............................................................4TASK 3............................................................................................................................................8P 3) Porter’s Five Forces model to evaluate the competitive forces......................................8M 3) Strategies to improve competitive edge- ....................................................................13TASK 4..........................................................................................................................................13P 4 & M 4) Models, theories and concepts to understand interpretation of strategic-.........13CONCLUSION..............................................................................................................................16REFERENCES .............................................................................................................................17
INTRODUCTIONBusiness strategy is the company's working plan for achieve its vision, prioritizingobjectives, accomplish successfully or accomplish financial performance through businessmodel. Cost leadership, differentiation and focus are the basic strategies (Boyd and et.al., 2017).Business model is a management template for developing new or documenting existing methods.It's a big chart with components describing organization value proposition, infra, consumers andfinances. Marks & Spencer Group Plc is a British multinational retailer firm, whichheadquartered in the City of Westminster, London. It is listed on the Stock Exchange. Thecompany expert in selling of clothing, domestic products or luxury foods. Report includeexplanation about impact of macro environment on M&S Plc., Ansoff Growth matrix, internalculture of organization and capabilities etc. It describes outcomes through Porter's five forcesmodels, theories, concepts theories of strategic planning.Mission and VisionMarks and Spencer has a specific mission statement is to build a brand on core values ofquality, service, trust, value and innovation. The company's vision is to use natural resources inthe best way possible. M&S Plc focus on eliminating any wastage in their organisationalfunctions, the company also manage and maintain high employee turnover to sustain itsproductivity. Organisation needs to increase earnings from 10% to 15% because other shopsclosed such as House of Fraser. TASK 1P1) Analyse the impact and influence of the macro environment on Marks and Spencer and itsstrategiesMacro environment consist of all factors which are uncontrollable and it has direct impacton the decision making process of business. Elements like social, political affects overall growthand productivity of Marks and Spencer company. Economic cycle like inflation and deflationaffect the customer's purchasing power. In order to achieve target organisation critically evaluatethe impact of Macro Environment and accordingly develops business strategies to deliver qualityproducts and services to customers.Impact macro environment on Marks and Spencer1
Political and Legal factor: It is mandatory for business to follow all rules and regulationas prescribe by the government. One of the government policy is to considerenvironmental surroundings before developing business plan which is followed by Marksand Spencer. UK government has introduced policy like climate change levy and greentax which are to be strictly followed by organisation to maintain sustainability. Marks andSpencer has taken initiative to minimise consumption of energy by 5 % at their store.Political factor has effect on cited organization business policies, planning etc. Changesin law like employment legislation have an impact on human resources managementpractices. Marks and Spencer needs to consider policies related to general taxation, Valueadded tax on income as they are very fluctuating. Changes in apolitical parties andgovernment highly influence these policies which affect functions of M&S Plc. Brexit isone the most significant example of political factor influencing UK businesses. Economic factor: It keeps focus on expansion of activities to earn profit. There wasexperienced change in purchasing power of customers because of economic crisis inNorth America and other countries. Marks and Spencer has closed it's all operationswhich were running in losses and sold the business to North America. On the other hand,when an economy face downward fall this will force business to lower down their pricesin order to maintain balance of sale (Dayan, Heisig and Matos, 2017). Economic factorslike exports law affect the import and export of raw material and finished products. Thisfactor makes significant impact on cited company financial strategies and has directeffect on annual turnover of the organization. This factor also include currency of thenation, pound is world's 3rd most essential currency in the world. The value of currencyplays an important in the functioning of each and every business, if the value of pounddecreases importing cost of goods will raise and vice versa. Social factor: It includes change in taste and preferences of customers, in current worldpeople prefer having more fashionable and luxurious items. In order to satisfy need oftheir potential buyers M&S have developed product using attractive colours and latestpattern of clothing. Business has to produce those products and services which areenvironmental friendly in nature. In social factors such as customer requirements hasdirect as well as significant impact on firms operational planning and manufacturingsystem. Another example of social factor includes pre-prepared food which is a2
increasing demand in the society. Development of wide range of pre-prepared food itemscan help an organisation to attract more customers. Technological factor: It was observed rapid change in technology, companies havestarted designing official websites for convince of potential buyers. Marks and Spencercollect all point of view of clients about the product using feedback option which isavailable on their websites. Company invest large sum of money in technologicaladvancement in order to satisfy needs and requirement customers. The improvement ofwebsite and interface can positively affect the company's profitability in the market, theonline portal can also include various features such as option for submitting feedback,cash on delivery method etc. People generally prefer buying products and services using credit card, M&S hasaccepted credit cards payment. Above mentioned strategies has helped in improving tradetransaction. Moreover, it has improved its efficiency by rewarding customers with the help ofelectronic points of sale. However, it was observed that EPOS were not working effectivelybecause points were not added automatically, due to this customer were not satisfied with theservices.Ansoff Growth matrix This is a marketing planning model which is essential in context of identifying the growthof a particular product in market. It provides business with various suggestions to expand theiroperations by evaluating macro environment (Elmes and Barry, 2017). Some of growth strategieswhich is applied by Marks and Spencer are given below.Market penetration: This a technique used by used to increase sales of the existingproducts and services by combining of two pricing strategies. Market penetration is essential forMarks and Spencer to increase market share with already targeted customer segment. Companyemphasis on targeting new customers by providing them with quality service at minimum cost.Market development: It is a strategy used by business to sale existing products in newsegment to targeted customer. Marks and Spencer consider geographical boundaries beforedeciding to export products to the other countries. Moreover, they can select new distributionchannel according to the customers' requirement. For example, M&S sell products online ontheir official websites and they collect feedback regarding the services provided by organisation.On the basis of above observation, they modify or change existing products.3
Product development: This technique is essential for launching of new merchandise, inorder to perform this process, it is significant to identify need and requirements of potentialbuyers. Marks and Spencer use this process to stay competitive by differentiating products formthe other brand. Company critically analyse business environment and they develop or innovatethe services to satisfy customers. Joint ownership with other company play crucial role inreaching the target segments because they have access to new distribution channels.Diversification: This technique is implemented by business to promote new product andidentify new targeted segment. It is termed as risky situation because organisation is moving in acompletely new phase with minimum experience (Evans and et.al., 2017). Marks and Spenceruse diversification strategy because they have unique idea about maintaining the balancebetween rewards and risk within the business. According to this strategy the company can growits market share by inventing new offerings at initial stages of marketing.M1) Critical analysis of macro factors Macro environment make impact on not only production but also it influences strategicmanagement decisions. They take decision according to current situation of external factors. Itmay be positive like increase productivity and negative such decrease customers numbers due tohigh market competition. This environmental factors are generally made negative impact on theorganization because it not easy to adopt all things at the same time. The macro environmentalelements therefore have both positive and negative impact on M&S such as low taxation policyby a new new government can be beneficial for the company as it leads to low cost and increasedmargin. On the other hand high taxes can result in low profitability for the organisation. TASK 2P 2) Internal environment of M&S and capabilities-Internal environment- An organization internal environment is composed of thetools within the company, involving current employees, management, corporate culture whichrelated to workers’ behaviour. Few elements have direct impact on whole business and otheraffects only managers. Strategic capabilities- It refers to a business ability to successfully employ competitivestrategies which allow organization to survive and increase value with time. While strategiescapability take responsibility of M&S services, this keep focus on cited company's assets,4
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