Business Strategy for Marks and Spencer: SWOT, PESTEL, Porter's Five Forces Analysis and Strategic Management Plan

This report analyses the business strategy of Marks and Spencer through SWOT, PESTEL, Porter's Five Forces analysis and strategic management plan. It also evaluates different types of strategic directions available to the organization.

Business strategy

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................4

INTRODUCTION
Business strategy refers to set of plans and actions that are essential to be identified for
the present and future working of business. Also, development of good strategy allow firm to
compete in various markets and helps in knowing various areas of improvement so that
maximum efficiency is assured. Furthermore, the present report is based on Marks and Spencer
that is well-known retail sector in UK for selling variety of products to large number of
customers. Also, the study will analyse impact of various environmental factors through
conducting PESTLE and SWOT analysis that is essential for sustaining the market and attracting
more customers towards the business in the future. Moreover, report will present Porter’s Five
Forces model so that best strategy for future conduct of various activities might be planned.
Lastly, study will explain in detail about the importance of range of theories, concepts and
models in devising the best strategic planning for future conduct of business.
PART- A
1. SWOT and PESTEL Analysis Of Marks And Spencer
SWOT analysis of Mark and Spencers
Strength
Marks and Spencer was founded in 1884 and has a thriving global presence with more
than 1463 stores in Asia, Europe and the Middle East. In the list of Global 2000 companies in
2020, it secured 1944th position. With a diversified product range it specializes in selling
clothing, beauty, home products and food products. Marks and Spencer is as old as around 137
years of experience and have survived through depression and economic recessions.
Weakness
According to the past few year's data, the company's clothing sale has significantly dropped and
over 100 stores will be closed because of fallen sales. The company offers few choices for the
young ones as it provides limited clothes range (Frank and Hope Eric. 2020).
Opportunities
Marks and Spencer plans to open up more than 100 new stores in countries like Brazil, Russia,
India, Indonesia and Poland. They have strong retail base and now it's time to explore the online
world for expansion of the company.
Threats

Marks and Spencer faced controversies when they introduced a uniform Hijab in the UK and was
accused by customers. With rising growth of John Lewis, Gap, wallmart and Amazon, Marks
and Spencer's market position can be threatened.
PESTEL Analysis Of Marks And Spencer
Political Factors
Marks and Spencer is hugely benefited by the fair trade policy wherein they import foreign
products for sale in their stores at reasonable prices which allows them to maintain a high profit
margins. But with the Brexit hanging clause, many of these policies has triggered a wave of
uncertainty for operating businesses in UK and Europe. The sale of its product will be heavily
impacted if the government increases taxes (Nandonde, 2019).
Economic Factors
According to the current market trend in UK, a noticeable shift has been seen from a big retail
stores to small ones as these retailer provide a lower market price. These lower priced and local
stores are a direct risk for brands like Marks and Spencer. Factors like interest rate, inflation,
unemployment has a direct impact on company and its profitability.
Social Factors
Social Factors depends on the consumer needs and wants in a society which majorly include
education, culture, lifestyle changes. Because of less of research about the market, it has become
the less trendy brand among the young ones.
Technological Factors
The company understands the role of technology and has already entered the online shopping
world. Not limiting themselves to e-commerce, the company has installed self-checkout-based
retail stores and plan to increase more in near future (Corejova, Rostasova and Valicova, 2020).
Environmental Factors
Environmental factors emerges from the environment. The company is concerned about the
environment as a result promoting the idea of Re use of materials, using less of water in their
production
Legal Factors
The change in the trade law has affected the brand hugely. This is something which cannot be
forecasted by any business strategy. In past few years, their name has been associated in many
disputes which has hammered the companies image

Porter’s Five Forces model
It is the model that helps in identifying and analysing the competitive forces that
influence the industry and its working. Also, this model helps in analysing the strengths and
weakness of organization so based on that better plans and strategies might be developed in the
future. Furthermore, through using this model Marks and Spencer would be able to identify the
new areas where it would be able to expand its operations in the future in the most efficient
manner. Thus, this model consists of various elements that are been described as follows:
Competition in the industry: Marks and Spencer is the international brand that sells
variety of products across various regions. Furthermore, the company has been successful
because it has been able to analyze the competitors closely and in right manner. Also, it can be
said that this factor is currently low for the firm because it has been established brand over the
years and even if new entrants enter into the market than they would find difficulties in giving
the tough competition to such big brand like this (Lahtinen, Kuusela and Yrjölä, 2018). Thus,
even though there is enough competition in the market it won't affect the working of the firm as
it has established brand image in various regions. However, if these factors are overlooked than
it would cause serious threat to the firm in the long run.
Threat of new entrants: In every industry big or small there is always entrance of the
new competitors in the market. Furthermore, these entrants have to be closely analyzed by the
marks and Spencer on regular basis so that there is no wastage of human efforts and losses to the
firm (How Porter’s Five Forces Can Help Small Businesses Analyze the Competition, 2022).
Thus, this factor is also very low for marks and Spencer as even though new entrants come up
with new ideas and attributes, won't be able to compete with cited firm as the company has the
best plans and policies developed that make target customer loyal towards the brand over the
years without much impacting the sales of the business.
Power of suppliers: There are lot of the suppliers that are available within the industry
that are ready to supply useful goods and services to the brand. Moreover, these suppliers are
also ever ready to establish efficient distribution channels that would supply the goods of the
company across various regions. Thus, this factor is very low for the firm as it has lot of
suppliers that are ready to sell the goods of the company at low cost rather than switching to
other brands that are little higher priced.

Power of customers: This factor is quite high for the company as there are lot of
consumers that are available in the market that have different choices and preferences.
Furthermore, to meet such choices it is very essential that the company conduct the regular
market research so that their choices are identified in well-defined way. Thus, this would help in
maintaining the greater level of customer loyalty and satisfaction that is necessary for ensuring
continuous growth and success over the years.
Threat of substitute products: There are various products in the market that seems to be
similar to that of marks and Spencer. However, these products that seems to be substituted of the
cited company are not the same as cited firm has higher quality products that could not be easily
replicated by other small companies at lower prices (Latifah and et.al., 2020). Thus, the company
is able to maintain the brand position against some competitors in well effective manner in
various regions.
Justification of organization existing or potential competitive advantage
From above analysis and using the porter model it can be said that maintaining the
competitive advantage is very much required so that the firm is able to maximize the use of the
existing resources. Furthermore, through porter model Marks and Spencer would be able to plan
the routine activities in the most efficient manner and also would be able to assign the best roles
and responsibility to each individual employee that is working within the firm (Liu and et.al.,
2020). Also, in the current era where large amount of global activities are conducted by most of
the industries and hence it is very impotent for marks and Spencer to analyse the current position
in the market so that maximum revenues are generated in due course of time. Furthermore,
through potential advantage the company would conquer new areas and increase the sales of the
business.
Producing strategic management plan
It is type of plan that helps the management in achieving certain goals, set priorities and
communicate with the organization in well-defined manner. Furthermore, this management plan
would help in analyzing the potential threats and maximizing the current strengths in achieving
certain long term goals.Moreover, the detail plan for Marks and Spencer had been described as
follows:

Background: Marks and Spencer is one that is British retailer company that is offering
the great value products to millions of customer around the world. Moreover, company is
offering range of financial services that help the firm to establish the brand image in the market.
Organization structure: The current structure that is been followed within the firm is
centralized system where all the duties are been assigned by the top management to all the lower
levels of employees that needs to be carried out in the specified time-frame and according to the
specific levels of efficiency (Peters and Simaens, 2020.).
Vision: The company wish to set standards in the market through which others
companies are measured. Also, the company believes in delivering the high quality, service and
innovation to rest others that are operating in the target markets.
Mission: Major aim is to deliver the high quality products that are easily accessible and
have the ability to develop the trust among the others.
Marketing mix:
Product
It sells range of products in the market that
covers essential items of women, men and
kids. Furthermore, the company sells the
products according to the current needs of the
customer.
Price
Competitive pricing strategy is been
used by the firm where all the goods are
sold according to the competitors prices
and market strategy so that the company
is able to maintain the competitive
advantage
Place
The company sold the goods through both
online and offline medium. Furthermore,
online is sold through website and offline is
through its various stores that are located in
various regions.(Phan, 2021)
Promotion
The firm uses various promotional
techniques such as marketing
campaigns, posters, leaflets etc. that
helps in attracting more customers
towards the business.
Strategy formulation:
This would be done through establishing the right strategy so that firm is able to reach
greater height of success. Furthermore, this would be done through conducting the VRIO

analysis that helps in maintaining the highest level position within the target markets. For the
cited company below is the detailed analysis that is been conducted.
Resource Valuable Rare Imitable Organized
Finance
Right Right wrong Right
machinery
Right wrong Right Moderate
Present Staff
Right Right wrong Right
Brand position
Right wrong Right moderate
Speciality in
dinning / lunch
wrong wrong Right wrong
Implementation: Thus, the above strategy would be implemented best through making
sure that all the resources are made timely available and further the employees are qualified
enough to deliver the best of results in the end. Moreover, implementation would ensure that
maximum benefits are been provided to all the firm in terms of increased revenues and markets
share (Rogmans and Abaza, 2019.). Furthermore, through successful implementation there
would be increased in efficiency and effectiveness of the company employee's and its operations
Evaluation: The strategy been implemented need to be reviewed on regular manner so
that it will ensure that all the work is carried out systemically and in well-defined manner.
Furthermore, through evaluation certain modification that are required could also be made so that
employees and whole management team is able to move in the right direction (Tanriverdi and
Du, 2020). Moreover, evaluation would also allow the firm to identify the areas of improvement

so that corrective actions if required any might be taken on the right time and in appropriate
manner.
PART- B
1. Critical evaluation of the different types of strategic directions available to the
organisation
Porter Generic strategies tool is used to determine the direction of the company so that it can
achieve overall growth of the organization in better ways. Along with this, if company choose
the right direction than it will be easier for the organization to beat competition. There are three
strategies like cost leadership, differentiation and focus.
Cost leadership: In this tactic company select the large market area and offer the lowest
possible price in order to attract more customers. There are generally two option within cost
leadership strategy as company can opt for costs as low possible or grab large market share with
average price (Katila and et.al., 2019). Although it has been identified that organization has to
keep the costs as lower rate. If M&S will apply this strategy in effective (way) than it will have
better substantial investment capital and low cost when it comes to materials and labour.
However, pricing strategy of company is moderate it keeps the price level at lower compare to
compositor in order to increase their sales.
Differentiation:
In this large market area has been targeted but product and services need to be unique and with
this strategy items of the company need to look more attractive as compared to offered
competition. Along with this, using this strategy mainly required good research and
development, innovation and ability so that higher quality of services can be provided to
customer. In this tactic effective marketing techniques can be used in order to understand the
benefit of new product (Hassel, Palier and Avlijaš, 2020). However, M&S has to adapt with
dynamic market area and be flexible in order to deal with the current trend. Thus, it need to focus
on outside world and make use of creative approach.
Cost focus:
In this type of tactic business target niche market in which competition is low so that company
can offer the lowest possible price. Taste and preferences of customer is identified, and they
are segmented on that basis. Business tries to full fill the needs with consumer while keeping the

cost rate low. M&S do not make use of this strategy as it have good range of audience and it
does not provide cheap services and products to customer.
Differentiation Focus:
This strategy is mainly used to build strong brand loyalty among customer and in this niche
market area is selected as well as to attract consumer products with unique features are sold.
Along with this, in this tactic it is important to ensure that products remain innovative so that
company can stay head in competition. However, while choosing this technique it is important
for organization to identify their strength and make use of it to deal with business threats.
Justification:
Marks and Spencer can make use of differentiation strategy in order to reduce their
competition and to enhance their overall growth rate. Along with this, it is currently dealing with
fashion and home décor products as well as cover large market at international level. In order to
be innovative it can come up with modified furniture for office and home in order to increase
their performance level (bdolshah, Moghimi and Khatibi, 2018). In addition to this, M&S can
expand their market area in Asian countries as these fashion industry mainly follow their
traditional clothing. Thus, M &S can introduce their western products in such area and it will be
unique idea too which can give better outcomes.
2. Justification and recommendation of the most appropriate growth platform/and strategies.
A growth strategy is known as plan of action that allow company in achieving higher
level of market share and performance level. Moreover, growth tactics are used for long term
purpose so that right outcomes can be generated. It needs to be communicated throughout the
organization so that each functional unit have an idea about their plan and strategy. It is to be
recommended to Marks and Spencer that it need to make use of diversification strategy in order
to grow their business. In this tactic company need to enter into new market area instead of
expanding in existing market by introducing new services or products (Greckhamer and Gur,
2021). However, M&S can enter into Asian market area in which it will sell customized
furniture for home and office. In this innovative idea firm will ask their customer to come up
with their idea and make changes according to it. In addition to this, it is one of the riskiest
strategy with huge rewards that helps success of organization. This is beneficial for M&S
because it will allow in attracting new customer base and helps in earning good profit. While
using this strategy company will be focusing on taste and preferences of customer as well as

market trend so that right product is provided to customer. Although one of the disadvantage of
this market development strategy is high expenses and risk of competition.
Moreover, It can make use of digital technology in order to increase the overall growth and sales
in positive way. Social media tools can be used to in order to share product and services in
better ways as well as consumer are awareness are increased. This way marketing helps in
identifying new trends in the market area as well as helps in making the products according to
the needs of customer demands and services (Firoz Suleman and et.al.,2019.). Thus, making use
of all theses' strategy will help M &S to enhance their market area as well as productivity level
in positive way.
It is to be recommended to company that it can make use of training and development in order to
enhance their employees skills so that it can deal with changes of business.
Evaluate ways and means by which the chosen strategies can be monitored in order to
ensure success.
There are different type of ways by which performance of the organizations can be
measure so that it help to provide the benefit for achieving the success accordingly.
Balance score card- This is strategic management score are which are help to provide the
criteria of identifying the performance of the organization as well as it is necessary to improve
internal operations and external outcomes. Also, on the basis of measuring past performance data
in order to get feedback from outsides so that it help for makings better decision for future. There
are different types of perspective of balance score card on the basis of financial performance,
customer, learning& growth, internal process etc (Leinonen, Glenk and Rees, 2019).
Benchmarking- This is process of measuring the key business matrices and practices and
comparing them also it helps to provide the information from competitors. The main aspect of
that kind of activities are related to business process as well as it is help for providing the best
quality of product and services so that it help to attract large number of customers. This is one of
the common matrix use by M&S in order to operate business effectively as well as it help to
provide the confirmation of connecting the customer with the firm. On the customer perspective
it can be said that it can help to focus more on availability of products and services. In this
process its us necessary to identify the current position of the company and where it is expecting
to go for further result. When the goal or objective is achieved it can be said that the benchmarks

sets by organization is achieved and it proves the success of the company (Foster, Spencer and
Joseph, 2020).
Customer satisfaction- For the retail company it is necessary to satisfy employee so that
it help to measure the performance of organization as well as it help to provide the idea of
collecting feedback from customers so that it helps for developing knowledge for how can they
improve performance of the organization. Chosen company has uses that kind of key
performance indicator in order to identify the effort of the employee as well as it is necessary for
improving quality of product and services so that it increases the productivity and efficiency
(Franklin, Childers and Franklin, 2022).
CONCLUSION
It has been concluded that strategy played important role for success of any company also
it help to provide the benefit of outlining the action and decision of organization in order to plan
the activity which help to reach goals as well as it is necessary for achieving objectives and
goals. Present report has discussed SWOT, PESTLE analysis and porter five forces of Mark and
Spencer in order to evaluate the capabilities in order to justify the competitive advantages.
Further, it has been recommended different types of strategic directions available for company as
well as there are different types of ways by which chosen company can measure success.

REFERENCES
Books and journals
Abdolshah, M., Moghimi, M. and Khatibi, S. A., 2018. Investigating competitive advantage in
banking industry based on Porter's Generic strategies: IRANs newly-established private
banks. International Journal of Applied Management Sciences and Engineering
(IJAMSE).5(1). pp.52-62.
Corejova, T., Rostasova, M. and Valicova, A., 2020. REMARKS ON THE EVALUATION OF
THE STRATEGIC FOCUS OF THE SOCIAL NETWORK. Economic and Social
Development: Book of Proceedings, pp.304-311.
Firoz Suleman, M. and et.al.,2019. The applicability of Porter's generic strategies in pure online
firms: A case study approach. Strategic Change. 28(3). pp.167-176.
Foster, M., Spencer, J. and Joseph, J., 2020. Heart failure dashboard design and validation to
improve care of veterans. Applied clinical informatics, 11(01), pp.153-159.
Frank and Hope Eric. 2020 "Utilizing Mckinsey 7s model, SWOT analysis, PESTLE and
Balance Scorecard to foster efficient implementation of organizational strategy. Evidence
from the community hospital group-Ghana Limited." International Journal of Research in
Business, Economics and Management 2, no. 3 (2018): 94-113.
Frank and Hope Eric. 2020Nandonde, 2019Corejova, Rostasova and Valicova, 2020Leinonen,
Glenk and Rees, 2019Foster, Spencer and Joseph, 2020Franklin, Childers and Franklin,
2022
Franklin, A., Childers, L. and Franklin, C., 2022, April. Holistic BOP Management Through
Integrated Technologies. In Offshore Technology Conference. OnePetro.
Greckhamer, T. and Gur, F. A., 2021. Disentangling combinations and contingencies of generic
strategies: A set-theoretic configurational approach. Long Range Planning. 54(2).
p.101951.
Hassel, A., Palier, B. and Avlijaš, S., 2020. The pursuit of growth. Growth regimes, growth
strategies and welfare reforms in advanced capitalist economies. Stato e mercato.40(1).
pp.41-77.
Katila, J. and et.al., 2019. Defining and quantifying the sea-based economy to support regional
blue growth strategies–Case Gulf of Bothnia. Marine Policy.100. pp.215-225.
Lahtinen, S., Kuusela, H. and Yrjölä, M., 2018. The company in society: when corporate
responsibility transforms strategy. Journal of Business Strategy.
Latifah, L. and et.al., 2020. Business strategy–MSMEs' performance relationship: innovation and
accounting information system as mediators. Journal of Small Business and Enterprise
Development.
Leinonen, I., Glenk, K. and Rees, R.M., 2019. Comparative analysis of farm-based carbon audits.
Liu, C. H. and et.al., 2020. Co-competition, learning, and business strategy for new service
development. The Service Industries Journal. 40(7-8). pp.585-609.
Nandonde, F.A., 2019. A PESTLE analysis of international retailing in the East African
Community. Global Business and Organizational Excellence, 38(4), pp.54-61.
Peters, J. and Simaens, A., 2020. Integrating sustainability into corporate strategy: A case study
of the textile and clothing industry. Sustainability. 12(15). p.6125.
Phan, S., 2021. The effect of pestle factors on development of e-commerce. International
Journal of Data and Network Science. 5(1). pp.37-42.

Rogmans, T. and Abaza, W., 2019. The impact of international business strategy simulation
games on student engagement. Simulation & Gaming. 50(3). pp.393-407.
Tanriverdi, H. and Du, K., 2020. Corporate Strategy Changes and Information Technology
Control Effectiveness in Multibusiness Firms. MIS Quarterly. 44(4).
Online
How Porter’s Five Forces Can Help Small Businesses Analyze the Competition. 2022. [Online].
Available through: <https://www.businessnewsdaily.com/5446-porters-five-forces.html>