Application of External Frameworks and Analysis on Marks & Spencer

BUSINESS
STRATEGY

Table of Contents

INTRODUCTION
Business strategy advert to the course of action or decisions which is helpful for
entrepreneurs in attaining the goals and objectives of an organisation. It is defined as the master
plan which is useful in securing the competitive position in market. In addition to this, business
strategy has three levels such as corporate, business and functional level and in business there is
always a need for various strategies at different levels because single strategy is not only worthy
but improper too (Johnson, 2016). It is the combination of proactive actions for the aim of
enhancing the market area and position of company. To achieve business objective without
strategy is only a dream and by considering the increased competition, business strategy is plays
an important role for success of company. This report is based on the frameworks analysis which
impacts the macro environment and also analyse the internal capabilities. Afterwards, porter's
five force is applied to determine the competitive forces and also develop strategic plan for
Marks & Spencer which is the British multinational retailer store deals in clothing, food, home
and other related products and situated in Westminster, London, UK.
TASK 1
P1. Application of suitable external frameworks and analyse their influence on Marks & Spencer
Marks and Spencer is the British retailer which deals in food, clothing and other home
products, they want to expand their business and enhance more market area. For this, company
conduct environmental analysis to determine various external factors to get better understanding
for their current and future market conditions (Chen, Eshleman and Soileau, 2017). This analysis
is useful in analysing the various environmental threats and opportunities which is helpful for
company in eliminating the risk factor and its components are as follows: Political: This factor include interference of government within the business activities
and also describe the stability of government in its policies and plans including foreign
trade policy, tax policies, restrictions and so on. For this, free trade positively influences
trading facilities of Marks and Spencer as company operates in UK and free trade allows
it to import its products for sale in their stores at low prices while maintaining profit
margin (Marks and Spencer PESTLE Analysis, 2019). But free trade is beneficial for
some period particularly for European brands and after that UK decide to leave the EU
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which is Brexit will negatively impacts the trade regulations and tariffs as it results in
loss of various free trade policies which are unfavourable for Marks & Spencer. Economical: This factor majorly influences the organisation and its profitability in
market as it include economic growth, interest rates, inflation, exchange rates and so on.
In terms of Marks & Spencer, discount factors put negative impact on the success of
company because from last few decades many retailers came existence in the market
sector of UK and price become the major competitive factor among themselves as they
provide discount on their products. By considering the fund wearable to supermarkets,
fresh rivals steal the industry stock from Marks & Spencer and local retailers encourage
customers to enjoy same products at low prices which negatively impacts the success rate
of company. Social: This factor includes the population growth, age distribution, health conscious and
so on. This factors defines the trends and fashion which company follow in its products
and services. By considering the current trend of company, it is analysed that company
has name and fame in market but currently it become non-trendy in serving its products
and services which put negative impact on the market area of company (Marks and
Spencer PESTLE Analysis, 2019). In addition to this, the reputation of company has
unfortunate consequence because new and trendy fashion chains arises every year and
they offer excellent quality products at cheap prices. Because of this, Marks & Spencer
become less trendy in market especially in youth. Technological: It includes the changes in technological landscape and their impact on
market and related products. It influences the market in producing and distributing goods
and also consider new ways in communicating new ways in target market. As company
deals in many sector and opting self checkout put positive impact on company especially
in food sector (Woerner and Wixom, 2015). For this, Marks & Spencer already
implemented self-checkout service in its stores which put positive impact on company as
because of this, wastage of time in being queue gets save and consumers are satisfied. In
addition to this, online presence of company in clothing, food and home products put
positive impact on company. Legal: This factor include healthy and safety, consumer rights, ethical and advertising
standards and many more. By considering the frequent changing rules and legislations,
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