Business Strategy for Mark and Spencer: Impact of Macro Environment, Internal Capabilities, Porter's Five Force Model

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1Frameworks to analyse the impact and influence of macro environment and strategies........3
TASK 2............................................................................................................................................5
P2 Internal environment and capabilities of an organisation......................................................5
TASK 3............................................................................................................................................8
P3 Porter’s five force model.......................................................................................................8
TASK 4............................................................................................................................................9
P4 Theories and models to implement a strategic plan...............................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is defined as a long term plan that is implemented for a company in
order to reach desired goals and objectives. In context with strategic management, it is involved
with the preparation and execution of all targets and certain initiatives on the behalf of
stakeholders. As the competition gets increased, the importance of business strategy got more
enhanced and led to the increment in the types of business strategies. In context with strategic
management plan, it refers to a document which is used to interact in concern with setting up
priorities, strengthen operations and assuring that all stakeholders are working towards common
goals (Ahmad and Krishnan, 2017). The report is based on Mark and Spencer which is a British
multinational retailer with headquarters in London. The company specialises in providing
clothing, food or home products. The report involves impact and influence of the macro
environment on organisation, analysation of internal environment and capabilities, Porter's five
forces model and usage of theories and models and interpretation of strategic planning.
TASK 1
P1Frameworks to analyse the impact and influence of macro environment and strategies
Mark and Spencer is a British multinational corporation which has around 900 stores
within entire United Kingdom and has a turnover of around 41 billion. The company is organised
within three divisions which are home care; clothing and food products.
 Vision: - The vision of Mark and Spencer has always been to provide a standard against
which their competitors may be measured and to take care of entire working environment
for employees.
 Mission: - The mission of Mark and Spencer is to make efficient and desired quality
accessible to everyone throughout the range of products.
 Core values: - The values are associated with quality, innovation and trust.
PESTLE Analysis: - It refers to a model of macro-environmental elements which are
used in the entire scanning element of strategic management. In context with the chosen
organisation, it is described below: -
 Political factors: - These factors are involved with the relation between both government
and business organisation (Alberti and Garrido, 2017). There are several political factors
like security control, legislation around employment, political stability and many more. In

context with Mark and Spencer, the government set up certain regulations for their
organisation like in the form of health and safety British standards and risk control. The
company always believed that it is significant for them to work closely with the
government and communicate with them in order to protect all their legitimate interests.
The two political factors which created on impact on their company was taxes and
political stability. If government increases taxes at a point of time, then the prices of
company products also get increased which created a negative impact on their business.
 Economic factors: - It refers to those factors which create an impact on the economy and
includes wages, interest rates and certain governmental activities also. In context with
Mark and Spencer, they made a strategy to provide best quality products to all the
customers but company got affected by financial crisis due to which they faced a
decrease in the demand for all their high quality goods and the main reason behind this
was the low income of consumers.
 Social factors: - These factors are involved with cultural standards, career attitudes,
population growth rates and many more. These factors are helpful for business
organisations to make better and efficient plans concerned with marketing analytics.
Consumer purchases are always influenced by social and psychological changes taking
place in the market. In present scenario, maximum number of people prefers to do the
payment with the help of credit cards. So, Mark and Spencer took the advantage and
allowed all their customers to do the payment from credit cards.
 Technological factors: - It refers to the variables which are in relation with the
development of technology. These factors includes internet connectivity, automation and
so on. In present scenario, it is very significant for a business organisation to adopt new
technologies in order to attract maximum number of customers (Buller and McEvoy,
2016). In context with Mark and Spencer, they introduced new and multiple check out
stores and also established an e-commerce store which is considered effective within
entire United Kingdom.
 Legal factors: - It refers to the legal forces which describes about what a business can do
or cannot do. These factors are involved with employment laws, intellectual property
laws, civil rights laws and many more. In relation with Mark and Spencer, they have been
involved with many legal disputes which became difficult for them to maintain their