Unit 32 - Business Strategy: Analysis of Macro and Internal Environment, Porter's Five Forces Model, and Ansoff Matrix for Marks & Spencer

Unit 32- Business
Strategy

Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Analysis of the influence and impact which macro environment has on the company and its
business strategies........................................................................................................................3
Analysis of the internal environment and the capabilities of organization using relevant
frameworks..................................................................................................................................6
Apply Porter’s five forces model and to evaluate the competitive forces of a given market
sector for an organization............................................................................................................8
PART B...........................................................................................................................................9
Apply a range of theories, concepts & models, interpret & devise strategic planning for a
given organization.......................................................................................................................9
Strategic management plan........................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
The business strategy can be referred to as the outline of decisions and actions which the
company plans in order to reach the objectives and goals. It mainly defines as to what the
organization wants to do in order to reach the goals so that it help in guiding the enterprise for
the decision making process for resource allocation and hiring. It simply creates the direction and
vision for while company. It is essential that all the people in organization have clear goals and
are moving ahead towards the direction or the mission of it (Suoniemi and et. al., 2020). The
company chosen for this report is Marks & Spencer, a multinational organization which was
founded in the year 1884 and is headquartered in London, UK. This report will deal with analysis
of external environment and internal environment and capabilities. Further it will add outcome of
Porter’s five forces and concepts which can assist company in strategic decisions.
PART A
Analysis of the influence and impact which macro environment has on the company and its
business strategies.
It is very important for the company to identify its macro and micro factors which can
affect the performance of it. The macro environment places the direct impact on the functioning
of businesses so it is important to make analysis of it so that appropriate decisions are taken
beforehand (Murawski and et. al., 2018). For the purpose of this, the following frameworks are
used for Marks & Spencer-
PESTLE Analysis
It is a tool which is used to analyse the forces and influence of the external factors on the
performance of company. In relation to Marks & Spencer, it is illustrated below-
 Political: It is concerned with the political environment of the state wherein the
organization operates. As Marks & Spencer is a global enterprise, it functions all across
the world so it is essential for it to make sure that it expand its business in such place
which has political stability. Moreover, post Brexit, there are many changes being
expected in the rules and policies which can affect its working.
 Economic: These include the factors such as employability rate, inflation rate, etc. The
pandemic of covid-19 has affected the purchasing power of the people that have affected

the business of M&S. Moreover, the conflict with the small retailers on the price of
products which is high may affect the brand value of the company.
 Social: It is concerned with the socio-cultural factors such as demand, spending habits,
etc. M&S deals in the ready meals and is dominating in this industry so the rise in the
consumption of the ready meals enhances profitability of company (Thomas and et. al.,
2021).
 Technological: It relates to adaptation of the new technologies in business. nowadays,
there is adaptation of new technologies in the modern retail stores so M&S has also
introduced self-checkout system so that there is enhanced level of service in the company
which can help in retaining customers.
 Legal: It deals with the adherence to the law and rules in the organization. Over the past
years, M&S have been engaged in many legal disputes which have made it hard for the
company to hold its image at the constant stature. So the organization must make sure
that it complies with the law.
 Environmental: It is concerned with the factors which may affect the ecology. M&S
continuously engages in promoting the sustainable retail industry on many occasions
such as it uses environmentally friendly process of production in manufacturing the
offering.
SWOT analysis
It is a tool which is used to analyse the internal and external capabilities of the business
by way of analysing the strength and opportunities of organization so that threat and weakness
can be overcome. In context to M&S, it is discussed below-
Strength
 The biggest strength for M&S is that it
has strong infrastructure of e-commerce
which helps it to enhance sales by
attracting customers to make purchase
via online mode.
 Another strength is its strong products
and services with the latest trends of
industry which helps it to attract more
Weakness
 Its weakness is that it has more reliance
on the UK market which makes it
vulnerable to the market conditions in
local country.
 Another weakness is that that M&S
have frequent product recalls which
leads to the loss in the customer
confidence (Hallal, HajjHussein and