Business Strategy for Marks & Spencer

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
P1 Discuss appropriate frameworks and determine the impact and influence of the macro
environment in the context of chosen business organisation and its supported strategies..........3
P2 Address the internal environment and capabilities of the chosen organisation using
appropriate frameworks...............................................................................................................6
P3 With the implication of Porter’s Five Forces model analyse the competitive forces of the
chosen market sector for an organisation....................................................................................8
P4 With the implication a range of theories, concepts and models, interpret and devise
strategic planning for the chosen organisation..........................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business environment consist of different factors of influence that affects the business
decision-making and the performance. These factors of influence might be internal as well as
external, thus, a business needs to identify such factors of influence and formulate effective
strategic planning in order to make flexible changes irrespective of different challenges and
opportunities in the business environment. This report is in the context of Marks & Spencer
which is a British global organisation famously known for delivering its varieties of market
offerings to its global prospects. Marks & Spencer is a UK-based organisation, headquartered in
London, UK and founded in the year 1884 by Michael Marks and Thomas Spencer. The variety
of products and services offered by Marks & Spencer includes banking services, food services,
beauty products, apparels and home improvement tools. Marks & Spencer as the chosen business
organisation this report covers analysing the impact influence of the macro environment on the
business performance which supported theory and models, internal environment analysis and
capabilities in context has chosen business organisation, analysing the competitive positioning of
the business in the market please and adding range of theories concept and model in order to
evaluate the strategic planning of the business organisation (Adamides, 2015).
MAIN BODY
P1 Discuss appropriate frameworks and determine the impact and influence of the macro
environment in the context of chosen business organisation and its supported strategies.
Pestle analysis helps to define the external macro environmental factors and its impact
on the business performance (Basu, 2017). With the help of Pestle environmental analysis,
businesses can also formulate suitable strategies in order to make flexible amendments in the
business functioning. Pestle analysis is a framework of different factors such as political,
economic, social, technological, legal and environmental factors. Further, Pestle analysis on
Marks and Spencer is conducted as per:
Political factors
Free trade

Free trade in UK supports Association in order to promote foreign trade with the suppliers. Free
trade helps Marks & Spencer in order to import products at cheaper prices which positively
impacts profitability of the business.
Brexit
With implication of Brexit, there can be seen many negative impact on the business such as
increased prices of raw materials, freezed employment, restrictions of foreign trade and others.
Economic factors
Economic factors include the inflation rates, foreign exchange rates, the economic growth of a
specific country and related economic activity in a country. United Kingdom is listed under the
largest economies in the world. The policies such as fiscal and monetary are properly
implemented and the country have a strong financial position in the market place. All such
factors positively affect Marks & Spencer in a way by enhancing profitability and sales margin
of the business (Brewster, 2017).
Social factors
Social factors determined by the cultural value and the social believe of people living in a
country. As per the cheap market industry where people prefer less expensive and cheap
products at similar qualities that popular brand offers, such activities negatively affects the
business activities of the association such dropping of sales and market share. There is also a
market trend where more than 10% of people prefer paying through credit cards for purchasing
products and services. Looking at the changing market trend Marks and spencer also introduced
payment through credit cards in order to enhance the sales margin of the business. Marks &
Spencer is one of the oldest retailer in UK. This brand identity of the oldest retailer often
perceives in the minds of the customers and further damages the brand reputation of the business
as listing among the retailer of non-trendy products (Chen and et.al., 2019).
Ready meal sector
With the rising demand of ready-made sector businesses, Marks & Spencer has successfully able
to develop the brand identity of being listed under the U.K.’s top 10 ready meal distributors. This
ready meal initiative of the business has drawn business towards success and profitability.