Business Strategy: Analysis and Planning for Marks and Spencer

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 : Macro-environment factors .................................................................................................4
P2 Analysing the internal environment and capabilities using frameworks................................5
P3 : Porter's five forces model ....................................................................................................7
P4 Preparing strategic plan and understanding of theories..........................................................8
CONCLUSIONS ...........................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Every company have different objectives and to achieve those objectives or goals
business makes strategies. Business strategies is the combination of both decisions and actions
which is taken by the company to gain the market share. Marks and Spenser is the multinational
company dealing in retail sector. The company is having its headquarters in England. It deals in
clothing, food products, shoes, home products etc. it is listed on London stock exchange. This
report will discuss the frameworks which analyse the impact of macro environment have on the
organization and strategies. Further, analyse the internal environment and capabilities using
appropriate models. Analysing porters five forces model for the evaluation of competitive forces.
This study will also analyse the theories and concepts to make strategic planning for the
organization.
MAIN BODY
P1 : Macro-environment factors
This factor can affect profit margin of any company or organization because these are hard to
control, by the management of any company and these directly affect the working of the
company (Künle, 2020). These factors are political, technological, environmental, social, and
legal which impacts the day to day working of the company.
Political
This factor has impacted the business of Mark and Spencer in such a way which help the
company to grow further. As it is multinational retailer it sells the products all over the globe. So
the modern government of UK has made a policy of free trade facility among various countries.
This new rule has benefited the company. This free trade facility acknowledge the M&S to
import its product at fewer prices or on sale in their stores of different countries. The UK
government also reduces the tariff charges and taxes, now the product of M&S can willingly
travel in their different stores of different countries. This factor helps the company a lot and
M&S also believes that they should work closely with the government.
Economical
As it is a British company and operates majorly in UK, the government of UK has properly
developed the Fiscal and monetary policies to avoid the situations of inflation and lower GDP so
here the company survives easily but it has operated in different countries also where the covid

has impacted the market and the preference of people are buying necessity goods instead of
luxurious so the company has to bear loss in most of the countries (Ikiseh, 2020).
Social
M&S has put an eye in the market trends and conditions it always focuses on the preference and
choices, demands and needs of the customer like what kind of product customer want. By
analysing this M&S got to know that competitors are providing cheap products specially in the
clothing segment and people are buying so this factor hits the profit margin of M&S in
unfavourable way.
Technological
M&S decided to use modern technology to enhance the customer experience. It has launched
their online store in their website so that those who are not able to visit the store can puchase
from their. Thus, it has increased the profit as well.
Legal
The laws, standard and regulations of every countries get changed every year so it becomes
necessary that the management and worker should know it for that it provides proper training to
educate the employees about various health and safety rules (Isabelle, 2020).
Environmental
M&S always work to protect the environment there for they have developed the green plan
policy. They work with Better Cotton Initiative for the procurement of cotton and they reduce the
use of cotton in their clothes as well. They work to save the energy also along with they have
decided to use less plastic and paper in their packagings.
P2 Analysing the internal environment and capabilities using frameworks
Internal environment deals with components which are present inside of the business which can
affect the business. SWOT and VRIO is used to analyse this.
SWOT
Strength:
Marks and Spencer have the strong cash flow which provide resources to the company so that the
company can expand in innovative projects (Gilligan and Lowe, 2018). They have strong track
records system. Company has created strong brand portfolio. Good brand portfolio is helpful for
the company when they are planning into expansion or launching new products. Adoption of
advanced technology is very helpful for the company in meeting the market demands. The