Analysis of Business Strategy for Mark & Spencer

Business strategy

Indexes and Table
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1. Define analysis on organisation capabilities with use of PESTLE and SWOT techniques. ...3
SWOT ANALYSIS- .......................................................................................................................5
Competitive environment by using Porter's 5 forces model........................................................7
PART B ...........................................................................................................................................9
Strategic Plan on the environmental analysis..............................................................................9
Strategic management plan........................................................................................................11
Ansoff Matrix Model ................................................................................................................12
Stakeholder Analysis.................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business strategy is defined as core management function that aids to undertake effective
plan of action that guarantees the success to enterprise (Sari, Afifah and Sueb, 2019). Creation of
strategy assist to undertake business activities effectively. In addition to this, business strategy is
the working plan of the entity that aids to accomplish the business vision, aids to prioritise the
objectives, competing successfully and this also make the effective contribution to make the
performance of business appropriate.
The present study is based on the business activities of the Mark & Spencer, this is
private limited enterprise engaged as grocery retailer within UK. It is headquartered in
Westminster, London and mainly this firm engaged in to sell high quality clothing.
Furthermore, this report will undertake internal and external analyse with use of PESTLE
and SWOT techniques. Also, the study will outline analysis of competitive environment with
use of Porter's five forces model. Additionally, strategic plan needs to be undertaken with use of
environment analysis and findings. Moreover, evaluation will be undertaken on different
strategic direction of the enterprise. Lastly, strategic management plan will be formulated with
number of strategies, objectives and tactics that leads to improve business performance.
PART 1
1. Define analysis on organisation capabilities with use of PESTLE and SWOT techniques.
PESTLE analysis is termed out as the framework and tool that helps to monitor the
performance of the enterprise (Bocken, Smeke Morales and Lehner, 2020). This is strategic
management tool that helps to identify, organize, analyse the external factors of the enterprise. It
is the tool that leads to define the impact on the organisation now and in the future course of
action. Thus, outlined as following context as-:
Political- This is defined as those components that has huge impact on the working of the
enterprise. These are the components that shows the level of anticipation by the legal authorities
within the different trades and businesses. The one of the massive political advancement to the

chosen enterprise is free trade policies (Panda, 2019). Due to the Brexit, there are number of the
policies that cannot be applied to the firm. Also, quoted entity is well known for the CSR
initiatives but ineffective clarity of the United Kingdom legal authorities has negative impacts.
Political factors involve in all decision-making process of the company as it involves
government policies related to the corporate sector like taxation policies of company, foreign
policy and all associated policies that influence over company's decision-making process and
growth potential.
Economic- There are number of the factors that directly affects the economy
performance and also have long term effects. Enhancement in rate of inflation can have huge
impact on the way firm price their products and services. This can have the huge impact over the
purchasing power of the customers. Economic factors mainly inclusive with rate of inflation,
interest rate, growth pattern of economic and foreign exchange rate etc. The economy condition
of the UK has fourth ranked (Sulich and Grudziński, 2019). So, this is crucial to put the major
consideration over the state of economy in the short term and long term. Also, current economy
situation within the UK is quite favourable due to low to moderate rate of interest and this can be
termed out as the health sign of the economy. Therefore, it has also been found out that there are
majority of the population within the UK that mainly prefers local retail store rather than
premium commodities of the chosen enterprise (Cubas‐Díaz and Martinez Sedano, 2018). Thus,
store that provide budgeted product and services to the customer’s is the wider threat to chosen
entity. Thus, it can be stated that increased food and prices of fuel has an effect on disposable
income of consumer that leads to weaker demand for non-food products. Also, chosen entity
responding to it by cutting prices and thus have serious effect on sales.
Social- This is termed out as fundamentals that cannot be directly impact the business
and market strategies. Changes in preferences of customers has huge on working of enterprise.
However, the trends in social components can impact the demand of commodities and services.
Sulich and Grudziński, 2019). In addition to this, purchase of the customer can be influenced by
the cultural, social and number of psychological changes within the market. Henceforth, there is
enhancement in trade of more than 10% after credit cards came into the market. Thus, this entity
took the advantage of the opportunities and this allowed customers to pay through credit cards
and this can lead to further increase the sale. Thus, one of major concern of buyer is also
dependent on price, quality and style that attract the customer and also aids to ensure the