Business Strategy of Marks and Spencer

UNIT 32

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
1. Presenting the external and internal analysis of the Marks and Spencer.................................3
2. Analysis and evaluation of the competitive environment.......................................................8
3. Justification of organization existing competitive advantage..................................................9
4. Presenting the strategies and to achieve overall strategic objectives....................................10
PART B..........................................................................................................................................10
1. Presenting different types of strategic decisions available to the organization,....................10
2. Evaluating the most appropriate strategy in Marks and Spencer..........................................12
3. Analysing the ways in which differentiation strategy can be monitored for Marks and
Spencer,......................................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
In this modern era, most of the businesses are implementing different strategies in order to
gain high competitive advantage. Thus, business strategy refers to the set of plan, action and
goals that helps an organization to operate effectively. The current report will shed a light upon
different theories and concepts used regarding businesses strategy. The present report is based on
Marks and Spencer (M&S) who deals in retail industry and offering range of products which
includes home products, clothing, food products etc. Further, the study will identify the micro
and macro factors that affect the business performance by using relevant models. Along with
this, the study also analyse the internal environment and capabilities of quoted business.
Moreover, the study will critically evaluate competitive environment by using Porter five forces.
Lastly, it will identify different types of strategic directions for the chosen firm and then
recommend the same for its future growth.
PART A
1. Presenting the external and internal analysis of the Marks and Spencer
PESTLE ANALYSIS:
Political Factors
This includes the factors such as political stability, taxes, trade policies etc. In the current
situation, if the government increases the taxes due to political instability the prices of the quoted
firm would be increased which will have negative impact on the sales of the product (Marks and
Spencer Pestle analysis,2019). Also, due to free trade policy goods can be travelled easily from
one place to another but with the implementation of the Brexit reforms in UK market, Marks and
Spencer would face difficulty in importing foreign goods at cheaper prices at the store which will
result in higher product cost for the customers.
Economic factors
Economic factors such as inflation rates, foreign exchange rates, economic patterns etc.
affects the business either positive or negative. Further, low inflation in UK has proved to be
positive for marks and Spencer as it has allowed to sell quality products to its customers.
Moreover, rise in the employment level in the country due to the pandemic, customers are ready
to spend more which will help in increasing the sales of the product.
Social Factors

Societal norms, demographic trends, gender composition etc. are the factors which come
under the social factors. To stay ahead in the competition Marks and Spencer needs to focus on
the changing fashion trends in younger generation and hence improve its clothing line in various
regions as they cover the large part of the market internationally. Further, Marks and Spencer has
availed the opportunity to increase its market share by selling more of ready meals as the demand
for such foods have currently increased because of its ready availability and good taste.
Technological factor
With the present era of social media, the quoted firm should focus on increasing its
revenue through online shopping as products are made easily available at one click. Moreover,
Marks and Spencer currently aims in introducing the best technology and so it has introduced a
full self-checkout stores to save time and labour costs. Also, it has installed big screens at the
store where customers can search the products and can place orders at the same time. Such
innovative ideas help the firm to remain competitive in the market. Technology can help in
savings huge costs needed for promotion and selling.
Legal factors
This includes securities laws, employment laws, health and safety laws etc. laid down by
the government which every firm has to follow. Marks and Spencer, conducts training sessions
on health related areas to remain updated every year with the current laws. Moreover, legal
disputes can create problems for the firms to operate smoothly therefore there must be
transparency in work and decision-making activities. This will further help in creating loyalty as
well as brand image among the customers. Besides this, ensuring the correct wage system is also
major responsibility as well as challenge for the firm.
Environmental factors
Using sustainable methods is the major concern in today economy as people now are
more concerned in protecting the environment. The quoted firm is adopting sustainability by
limiting the carbon emissions, recycling the waste products, improving energy efficiency through
solar panels and much more (Mukhtar, Williams and Shaw, 2018). Also, it is investing in
projects that develops parks, gardens and play areas for children. Moreover, market share can be
increased by developing eco-friendly products that cause less harm to the environment.
Therefore, organizing and involving employees in the CSR activities helps in future growth and
job satisfaction.