Major Strategic Decisions in Marks and Spencer

This report discusses the major strategic decisions made by Marks and Spencer, focusing on the department of food production. It evaluates the impact of these decisions on the company's financial conditions and market position over a period of 6 years. The report also explores six supporting strategies, management models, and tools used by the company to underpin its strategic approach.

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
1. Outline and evaluate the major strategic decisions made during the BSG simulation...........3
2 Evaluating six supporting strategies, management models and tools to underpin the strategic
approach......................................................................................................................................5

INTRODUCTION
Simulation in the business education, analysis and training aspect it is very important
because this will help the student's to enhance the skills of decision-making in situations where
there is limited time and information in hand. One can obtain from this stimulation that it will be
problem solving, market analysis, leadership, teamwork, financial analysis and strategic
thinking. It is very important to have balance in work and that will make any organization work
efficiently.
The company which will be discussed in the further report would be Marks and Spencer.
Marks and Spencer is a very well-established company and is having products which are being
produced by themselves and that is a very important factor for them. The food production of the
company is unique and reaching the objectives of satisfying the customers needs and wants.
The topics the report will be covering are the major strategic decisions in the company
and six supporting strategies and management models, concepts and ideas.
TASK
1. Outline and evaluate the major strategic decisions made during the BSG simulation.
Marks and Spencer has taken a lot of decisions in the company so that they can gain a
market advantage for the department of food production. The decisions the company has taken
are on financial conditions, branded production, branded operations and label operations. The
changes have been taken up by the company very well and the employees are in favor of the
changes which have taken place so that the food production of the company can be expanded just
like the supermarket of the company has. It is very important for the company to have a
competitive advantage in the market because there are a lot of competitions which are coming up
in the market (Bratton and Gold, 2017). The decisions which have been taken by the company
can be seen in the report and the impact it has had in the company over the 6 years (Strategy,
2017). The stock price of the company has increased from $30.00 to $258.69 in just 6 years
which is great progress for the food production department of the company. Food department has
not been focused on by the company and Marks and Spencer has made sure that they are
focusing on all the aspects of the company so that they can expand and penetrate deeper into the
market. The total financial change which can be seen over the 6 years time is 432,646 to
1,148,515. There is a lot of fluctuation which can be observed in the financial conditions of the
company but there is a gain by the end of the 6 years. The decisions were made but it is not

always that the changes are accepted by the employees all of a sudden and it takes time to adapt
to the changes and so did Marks and Spencer took its own time to get use to the changes which
took place in the company. The image rating of the financial conditions of the company has also
fluctuated but it is better than the company already had before the decision of BSG was taken up.
Company is further moving froward by rendering the high quality products and services
to their customers so that they can satisfy their customers with quality service at affordable price.
For regaining the lost market share they can implement a market research so that further they can
work upon the needs and demands of consumer (Olson and et.al.,2018). They are now mainly
consumer oriented. They should started to take feedback from their customers so that they could
let to know whether their customers are satisfied or not with their products and services in the
supermarket. The online shopping of the company is to be also improved so that they can reduce
their costing which is helpful for company in raising their sales and for being competitive with
their rivals. Along with that they have an opportunity for advertising their products on internet so
that wide range of consumers can be attract toward the stores. Marks and Spencer will now
enhance their marketing and promotional activities as this company is very old and thus the
younger generation will be attracted towards the company's stores. They could develop the
attractive promotional strategies which is helpful for them in gaining the consumers interest
towards the company's product and services. They could use the hoarding and poster for
advertising their supermarket as there is much competition among the food and beverage
industry. The another tool will be used is the digital marketing tool so that they can attract the
consumers in wide range and thus the sales of company can be increased (Akter and et.al.,2016).
They can improve their franchising in the foreign market so tat their business can be expanded
and could compete with other global brands and supermarkets.
Marks and Spencer now will mainly focus on rendering the high quality products and
services to their consumer with the low pricing so that they can gain huge consumer attraction
and more and more customer are attracted toward the company. They can also compete with
their rivals easily and gain a huge market position so tat they can retain in the market for long
term. The company can further develop many strategies for attracting the consumer and the
retention of customer's to the products and service is low so they should mainly focus on the
strategies and decision which is helpful for company in gaining and attracting consumer back to
their supermarket. For all this company will select to have an expertise decision making and

analytical decision making is being done by the company for which they will rely on the experts
and competencies in the areas (Thompson, Strickland and Gamble, 2015). They will also concern
with their employees and management team that further this all decision must be taken by their
company or not. This will be helpful for the in gaining their employees and managements review
and select the best appropriate option out of it this will be the key success to company in raising
their supermarkets sales and profits. They can use organic food in the store which is helpful for
them in attracting wide range of consumer to the store as the consumer nowadays more health
conscious so they want to have a nutrition and health food for their diet which is helpful for them
in keeping them fit and healthy. It is the strategy so that the company can again huge consumer's
attraction towards the company's supermarkets and thus the sell of the company will also be
raised directly with that. They must mainly focus of brand loyalty among the consumer the focus
of company is on rendering high quality products and services to their consumers which is
helpful for em in maintaining the loyalty of brand and its product for the consumer (Johnson,
2016). Thus, existing and new customers will directly come and visit to the supermarket for
purchasing the product from the store. They must mainly focus on having the online transaction
as nowadays consumer needs all things at their step so that they couldn't have to visit the store
and buy all this from their phone's one click and the all thing will e delivered to the at their
home. This all strategic decision is helpful for company in gaining huge customer's attraction
toward the supermarkets.
2 Evaluating six supporting strategies, management models and tools to underpin the strategic
approach
PESTEL analysis of M&S
Political factor
Marks & Spenser company has been favored UK government through the EC's free trade
agreement and this company have led to the decreased their sourcing cost for the trade. M&S
company have disadvantages from the higher cost in the global market (Bratton and Gold, 2017).
This company is known for the CRS initiative, but they do not aware and lack of clarity of
United Kingdom government on energy efficiency sachems which effect the company
negatively.
Economic factor

product price always plays important role in the retail industry, But in the last fewer
decades has seen that many budget retailers come up in the UK. From budget5 clothing sores to
the supermarkets, the small competitors are stilling place from the premium brands such as
M&S. They are giving and encouraging customers to enjoy a simmiler food product in much
less process (Bryson, 2018). In 1999 M&S company decided to switch using the supplier from
the Foreign market. And this was probably fulled by those discounts competitors.
Social factor
Within the 10 years, Society has seen wide scale increase in a consumption of the ready
meals, Because people can easily carry this. This has created a massive opportunity for the food
stores and M&S has long sought to dominate this food industry; while this is unclear just how
large market share the name captures, they are reportedly 1 of the UK's top 10 ready meal
distributor.
Technological Factor
Marks & Spenser company is selling their food product on the online stores which
increase their probability, and they gain customers locality.
Environmental Factor
This company wanting to maintain their name as a luxury brand, and they provide better
pacing for the customers so their food does not effect the climatic conditions.
Legal Factor
They are having all the legal rights to run their business in the UK and other countries.
They also provide legal rights to their employees who are working in the company.
SWOT analysis of M&S
Strengths
 Marks & Spenser company is one of the powerful and famous retailer in the UK
(Cameron and Green, 2019).
 They are providing quality services and product to the customers in the low prices which
helps this company to gain customers locality.
 M&S have their own labels of brands.
 One of they oldest retailer brand in the UK, and they are having huge good will in the
market.

 M&S selling their product to the all over the world, and they are having more than 1400
offline stores.
 They also provide online facility which has increase their business more.
Weakness
 They are having limited shares in the market, and they are also getting strong competition
from the new and existing competitors.
 They are expanding their business in some market where they are getting loss.
 They are one of the popular brand in the worldwide, and they should protect their brand
from the misuse of fake imitation products.
 Company do not having marketing strategies for the market trends
 Mangers and leaders do not have strategies to increase their brand name more.
Opportunities
 Marks & Spenser company should develop their website, so they can expand their
business more in the online market (Hislop, Bosua and Helms, 2018).
 Company can introduce their new market segment this will offer them more profit.
 They are having good opportunities in the India and china market because they this 2
countries are developing, and they are having huge population and labors cost in not that
much high. This 2 counties are good opportunities for the Marks & Spenser company.
Threats
 Other retail stores in the UK are threats for the Marks & Spenser company because they
are selling their product in the discount prices.
 M&S being a global retailer means they are exposed to different political facts in
countries they work in.
 new government polices are also threats for the Marks & Spenser company because they
have to make new strategies for this and this take too much time and investment.
 New competitors ion the market with the similar product features.
Porter's 5 forces on the Marks & Spenser company
Threat of new entrants
There are many high barriers and capital investment to enter the Retailer industry. To
achieve the cost efficiency and economies of scale that relaters such as Marks & Spenser has
world be hard to achieve for the new Entrant.

Threat of substitute products
It is impotent for the Marks & Spenser company to develop their product continuation
and bring innovation in the workplace because of the customer's satisfaction there are many
retailer company in the market who sell similar product like M&S so it is impotent for company
to develop their product (Kurucz and et.al., 2017).
Bargaining power of Buyers
customers bargaining power is satisfaction. M&S company is providing quality product
in less price to satisfy demand of the customers. They are also using pricing screams for the
customers to gain their locality.
Bargaining power of supplier
most of the resource supplier of the company is British but competitive pressure force
them to outsource their resources, so they can purchase their resources in the less price, and they
can gain competitive advantages.
Intensity of competitive rivalry
there is too much competition on the retail sector from the other supermarkets chains for
its home wear, clothing and fashion product as for food products. There are many competitors in
the market who are providing their product in less price this effect the company, and they also
decrease their product prices. This effect their probability and market reputation.
Marketing Mix of M&S
Product
M&S company is selling g their product in the 5 different categories and every category
serves different and separate product line. There are different types of varies in the product so
customers can choose to accord to their needs and demand.
Price
Marks & Spenser is providing quality food product in the low price range so customers
can afford their food in affordable price and satisfy their demand.
Place
This company is selling their product through the different channels of the marketing. In
the fist channel they sell their product directly to the customer on the online stores and other
channel is offline stores of the Marks & Spenser company (Kurucz and et.al., 2017).
Promotion

` they are promoting their product through the advertisement on the T.V and newspaper.
Marks & Spenser company also using digital marketing tools, so they can attract customers to
buy their product, social media platform is one of them.
People
company is providing quality customers services to the buyer of the product they can
discuss their problem with the company customers care depart where they solve every kind of
quarry and provide customers quality services.
Process
Marks & Spenser company is providing online delivery process n where order of the
customers received on the computer system and according to order, relevant product deliver to
their home.
Physical Evidence
M&S sell their product in the distinct color packing which is easily identifiable on the
retail shelves.
Handy’s Organizational Culture
Power culture
Marks & Spenser superiors have all the powers in the company who take decisions and
provide directio to the employees (Roome and Louche, 2016). If they will use their power to
provide helps and solve problem with the employees then it will effect their performance, and
they will give their best. If superiors of the Marks & Spenser company use their power in The
wrong way then if will affect the company's probability.
Role culture
Manager of the company provide role to the employees according to their performance
and skills. People who are giving well in the company. They give them opportunities like
promotion where they can use their skills and knowledge to achieve objectives of the business.
Task culture
mangers of the Marks & Spenser company provide group activity in the workplace so
employees of the company understand each other culture, and they can decrease conflicts on the
workplace.
Person culture

Superiors of the Marks & Spenser company are very friendly with their employees and
employees can tell their problem related to their work.
TQM for Marks & Spenser company
Six sigma approach
Six Sigma is a disciplined, data-driven approach and methodology for eliminating
defects (driving toward six standard deviations between the mean and the nearest specification
limit) in any process– from manufacturing to transaction and from product to service(Slack and
Brandon-Jones, 2018). This will effect the quality of the product and Marks & Spenser company
provide better quality product to their customers. This will also make their manufacturing
process better, and they can develop their product.
Lean manufacturing
Lean manufacturing is the process to minimize the waste prom the product which can be
helpful for the Marks & Spenser company to make their product in quality, and they can sell it
will low price range to the customer. Marks & Spenser company can save their resources, and
they can use it to make their product with more quality which can help to satisfy customers
demand.
CONCLUSION
From the above study it is concluded that he company can gain huge consumer attraction
towards the supermarket of Marks and Spencer. For this step the company needs to develop the
business strategy so that they can raise their profits and revenue. Business strategy is very useful
for every business for its successful implementation in the marketplace. By developing the
business strategy company can have different plans and strategies under it so that they can gain
consumer to the supermarkets. The strategic decision which can be taken by the company so that
they can develop the major plan which is fruitful for the company in further growth and
development. With the help of marketing research they can get the complete consumer data
which is helpful for them in satisfy the consumer by rendering the products according to the
needs and demands of consumer in the market. They can also have a business strategy in which
they can provide the high quality products and services to their customers. Marks and Spencer
could implement these strategy to compete with the rivals in the market place and let know the
current trend in the market so that they can implement their product and service according to that
which is further helpful for company in attracting the wide range of consumers to the

supermarket. The organic foods can also be used by the company in their stores as consumers are
more aware about their health so further they are encouraged to visit the store and purchase the
food items from that store.

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