Business Strategy for Marks and Spencer: Analysis and Direction

This report discusses the business strategy for Marks and Spencer, including PESTLE analysis, SWOT analysis, Ansoff's matrix, McKinsey's 7S model, and VRIO framework. It also provides an evaluation of the plan and direction for the business.

Business strategy
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INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Introduction..................................................................................................................................3
Business situation analysis:.........................................................................................................4
3. Strategic Positions...................................................................................................................7
4. Analysis and Direction for Business........................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Marketing strategy is based upon various perspectives related to development of business
process within an organization. It allows organization concentrating limited resource over
greatest opportunities which increases sales over sustainable development with competitive
advantage. These are based over decisions and tactics required to be taken regarding various
business operations related to product with development in market. Such strategy leads over
making goals and objectives accomplished in more effective way. This is based over defining
master plan required to be made over business person helps upon attaining business growth.
Selected organization for this project is Marks and Spencer which is a multinational retail
company dealing in providing clothing based products to different customers. In this project
includes impact of external environment upon business operations. In this report Porter's five
forces analysis is also performed in order to understand internal capabilities of the business. This
report also includes various models and concepts that are effective in facilitating strategic actions
of a company.
MAIN BODY
Introduction
Marks and Spencer is an British multinational organization which has been operating
within London and England. It has specialized within selling of cloths and food products. It has
been formed in the year 1884. The vision of the organizations is to raise global standards over
measuring performance. Its mission is to created quality upon accessibility of other helping in
increasing customers base over high profit gains. In case of M&S objective of organization is to
attain leadership within clothing and food sector(Salehi, and Arianpoor, 2021).
Strategy of business is based over action taken by managers of firm for making
organizational goals achieved in more effective way. Through this goals and objectives is taken
by manager of an organization helping in making organizations growth done in more effective
manner. They are helpful for M&S as strategies implemented lead over making organization
grow in rights direction making success achieved over wider scale in both national and
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international market. Through these strategies an organization is able to segment, target and
positioning. It has been discussed with the help of STP model as follows:
Segmentation: This is based upon demographic and geographical outlook that has been
presented by an organization. As per such perspective an organization is able to develop its
market as per geographical condition which are analysed more effectively.
Targeting: It an important perspective which is used in order to analyse customers present
within market(Rehman, and Anwar, 2019). This is one of the most effective perspective helping
an organization target customers in more effective way.
Positioning: It is based over occupying brand and supporting targetted customers with the help
of goods and services differentiated from other consumers. Under it two physical components are
included over functional attributes and capability offered by brand in communication over
customers in market place.
These are three elements which is based over making an organization like M&S deal with
various perspectives present within market. It helps over making organization perform better
within other market as per its conditions.
Current business operating structure of M&S is self developed business model which is
used for making organization growth in terms of its production, sales and profit required to be
generated.
Business situation analysis:
PESTLE analysis
PESTLE framework are those strategic tool which has been used by business
organization which helps over developing acknowledgement over external business environment
and market in effective way. In relation to M&S PESTLE analysis is explained as follows:
 Political factors: These are the factors which is based over tariff rates, tax regulation
with stability of central government(Oldman, and Tomkins, 2018). UK holds political
stability and tax rate for business organization making operations done with benefit for
M&S.
 Economic factors: These are those factors included growth rate, GDP, interest rate and
inflation rate with purchasing power of people within UK. Also growth rate within UK is
high and makes people earn disposable income due to which people are capable to buy
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products. Inflation rate enhanced as great repossession took place impacting in negative
manner.
 Social factors: There are different kind of social aspect based over preferences of
customers in an organization. UK is having broader society where people uses advance
products. An organization like M&S provides high quality and advance products over
customer sales and revenue is high. Also by understanding social factors an organization
is able to fulfil customers needs.
 Technological factors: UK is technologically advanced where people uses internet and
digital media over performing daily activities. In this M&S is needed for updating
technology and distribution process in relation to market requirement maintained wit
products of an organization. Also M&S is able to perform better over products in more
effective way.
 Legal factors: These are macro factors is which includes legal rules and norms that is
introduced by UK government for securing welfare of customers or employees form
various business organizations . Manager of an organization requires to follow legal
procedures so as to pay heavy penalties related over not following law.
 Environmental factors: These factors are linked with protecting ecology and
environment from hazardous activities of business firms. Following environmental laws
will benefit the company in sustaining a positive image within marketplaces where M&S
is operating. Due to this, sales and profits of company will be high
SWOT framework
SWOT analysis is that tool which is used for acknowledging strength and weakness in
detail manner so that they carry requirements with modifications. Also various opportunities and
threats identified over impacting business in effective manner. In relation to M&S SWOT has
been discussed below:
Strengths Weaknesses
 Brand is based over M&D which is
high due to high quality of products and
services(Moktadir, Kumar, and Rezaei,
2020).
 Company has wider product line which
is based upon variety of food outlets,
 Population within UK is religious
believed that M&S having non trendy
store for adults and youths in case of
clothing.
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home products and clothing for men
and women.
 Company is an older methods which is
used for producing their products
making high rate to be offered by rival
of organizations.
Opportunities Threats
 The organization makes expansion
done within African and Asian
countries over large availability of
potential customers.
 Organization is able to make
investment done over activities so that
more number of people get to know
about products offered.
 Changing political environment is
because of global business operations
acting over hindering effectiveness of a
n organization.
 Rival organisations such as Zara, H&M
is giving tough competition to M&S
which can be a big threat for the
organisation.
Porters five forces analysis
The Porter's five forces analysis is considered as major tool which helps in development
of a major approach in analysing different market forces. It is important for a company to focus
on application of Porter's five forces in order to achieve desired growth at the marketplace. The
Porter's five analysis is mentioned below:
 Threat of new entrants: Threat of new entrants is high as M&S renowned by an
organization making operations done at global level. This is not possible over new
organization investing much M&S has been investing while performing business
operations and activities(McAdam, Bititci, and Galbraith, 2017).
 Bargaining power of suppliers: There are many big scale businesses which might be
dealing in retail quarter specially meals and clothing.. If different companies pays
providers excessive, they'll now no longer be capable of supply M&S all of the required
substances and sources because of which enterprise of M&S will now no longer be
capable of earn excessive profits & revenues.
 Bargaining power of buyers: In case of bargaining power of buyers, it's miles excessive
in case of M&S as opposition in retail quarter may be very excessive. If organization will
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price excessive fees from their clients with out giving best product then they could shift
their choices toward the goods on the way to be provided via way of means of rivals.
 Threat of substitutes: This is possibility over clothes and food and threat formed with
substituted over products is less in case of M&S. It offers about products which is not
good over buying and offering of firm.
 Rivalry among existing competitors: There various retail organization that operate
within UK at global level which are H&M, Zara etc. Threat of competitors is high in
relation over M&S making organization opportunities to be outlined in relation to rival
firms which improved customers base. This is one of the most effective perspective
which makes customers base improved in more effective way.
3. Strategic Positions
Ansoff's matrix
Ansoff's boom matrix has been described as making plans that is utilized by supervisor of
company for making proper method for affecting boom to be achieved. In relation to M&S
framework has been defined as follows:
 Product development: As in step with the method an organisation added new product in
marketplace for present capability patron over shopping for huge amount over income of
M&S uplifted with excessive sales attained.
 Market development: Under it method of an organisation enables over enhancing
marketplace stocks with the aid of using imparting right help over present product inside
marketplace(Madhushree, Kumar, and Aithal, 2018). As in step with this boom method
over present merchandise of an organisation presented new clients for growing patron
base of M&S. This makes organisation income and income uplifted.
 Market penetration: In this method reduces charge with the aid of using imparting
complementary provider to clients with marketplace stocks improve upon excessive
sales. In relation to new clients new merchandise M&S gain excessive income and sales.
 Diversification:. This is primarily based totally upon danger method all new
merchandise presented to clients inside new marketplace of an organisation. The
organisation falls over beautiful clients with the aid of using merchandise upon massive
loss over sales of an organisation.
McKinsey's 7S model
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McKinsey's framework way gear used for analysing layout of company through making
identity with seven inner components. They are wished for making powerful and right enterprise
enterprise like M&S capable of broaden desires and goals that are mentioned as follows:
• Strategy: As in line with the plan formulated through an enterprise enterprise aggressive
area is attained with gain in order that competitors are capable of compete in powerful
manner. If M&S will now no longer have approach then enterprise will face problem
over lowering client bases and sales.
• Structure: It depicts the way wherein enterprise gadgets and divisions are organised and
proportion records with every other. If M&S may have irrelevant shape then it's going to
lessen the effectiveness of employer because of which competitors organizations will
advantage gain.
• Systems: This is the system of employer that goals to depict the every day foundation
sports and selection making of a employer. Maintaining suitable structures will
advantages a enterprise supervisor in imposing organisational extrade properly (Yoffie
and Cusumano, 2015).
• Skills: It includes competences and competencies of personnel in M&S at the same time
as acting organisational work. Capable team of workers of M&S will permit them in
handling complicated conditions in powerful way.
• Style: This represents the way wherein a company is controlled through control and
pinnacle degree managers and the manner wherein they have interaction with their
personnel. In M&S, participative fashion is used in which opinion of personnel are given
considerations.
• Staff: This detail is associated with the sort and wide variety of personnel that are running
in M&S. It includes the way wherein required personnel hired, trained, rewarded and
motivated.
 Shared values: It is the center of McKinsey's 7s version because it includes the
requirements and norms which courses the movements of companies like M&S and
behavior of personnel in a right way.
4. Analysis and Direction for Business
In accordance with above mentioned strategies, supervisor in M&S is usually
recommended to undertake marketplace penetration wherein present merchandise with gives and
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reductions might be given to clients of present markets in order that excessive sales may be
earned(Fraser, 2019). This will blessings the organization in growing their sales and stocks with
out introducing new merchandise or with out concentrated on any new marketplace. It is
important for enterprise businesses including M&S to control their present sources in an gold
standard manner. If sources and substances of a organization will now no longer be utilized in
systematic way, it'll effects in superior fee of organization. This will lessen sales for organization
because of which competing in opposition to competitors will have become a hard task. Different
sources on this context are employees, suppliers, traders and stakeholders of organization. It is
critical for the corporation to put into effect the plan so formulated for which they want to
allocate their sources. M&S can allocate their price range with the assist of advertising budget.
While to manipulate the overall performance numerous measures may be followed through the
corporation including inner audit of the tactics so one can assist them to examine real and
budgeted overall performance. Also key overall performance signs may be used to measures and
enhance the overall performance.
Evaluation : Evaluation is concerned with collecting the information and the follow up of how
well the plan is going on and what are the hurdles that affects their performance(Farrukh, Meng,
and Nawaz, 2020).
. While developing the market M&S will analyse and compare their actual performance of
marketing team and the performance required in marketing plan.
VRIO framework
VRIO evaluation is abbreviated as value, rarity, imitability and organization. It is a strategical
device this is utilized by groups to perceive their to be had assets and inner capabilities. This will
assist them in accomplishing excessive aggressive benefit over opponents. In context with M&S,
VRIO evaluation is cited below:
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• Valuable: It is critical for the supervisor in M&S to nicely utilise their treasured assets in order
that difficult opposition to opponents may be given in a right way. If an organization posses a
few treasured assets, they are able to earn excessive income from it. For ex, treasured aid for
M&S is their employees, distribution and delivers chain management.
• Rareness: these element blessings a organization in expertise if the product which is ready
with the aid of using them is uncommon or now no longer. Rare merchandise presented with the
aid of using M&S will assist them in gaining purchaser loyalty because of which their income
and sales will growth in a sizeable manner. Rare merchandise of agency are their production and
manufacturing machines. M&S believes in offering specific and revolutionary merchandise to
their clients because of which organization rareness (Lehmann, 2016).
• Imitable: M&S is needed to provide the ones merchandise which cannot be copied with the aid
of using rival organizations(Bayo-Moriones, Galdon-Sanchez, and Martinez-de-Morentin, 2020)
. If merchandise presented with the aid of using M&S might be copied then opponents can
bought them in much less quantity because of which human beings will now no longer opt for to
shop for the ones offerings of merchandise which might be presented with the aid of using M&S.
Raw fabric for generating meals object and garments are imitable assets for agency.
• Organisation: It is important for commercial enterprise organizations consisting of M&S to
manipulate their present assets in an top of the line manner. If assets and substances of a agency
will now no longer be utilized in systematic way, it's going to outcomes in stronger fee of
agency. This will lessen sales for agency because of which competing in opposition to opponents
will have become a tough task. Different assets on this context are employees, suppliers, traders
and stakeholders of agency.
CONCLUSION
As in step with above summarised report, it is able to be concluded that with out adopting
suitable commercial enterprise strategies, it isn't always viable for a commercial enterprise
business enterprise to obtain favored achievement and outcomes. Analysis along with PESTLE,
stakeholders analysis, SWOT, Ansoff's matrix blessings a organization in acknowledging outside
commercial enterprise surroundings in a deep manner. With the assist of VRIO framework,
organisational abilities may be identified. By the usage of Porter's 5 forces, a employer can well
known their aggressive aspect in market. By the usage of one of a kind theories, frameworks and
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fashions like Bowman strategy, porter's usual strategy, a employer can put into effect proper
strategic making plans for themselves.
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REFERENCES
Books and Journal
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strategy, performance appraisal and organizational results. Personnel Review.
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environment research: A bibliometric analysis. Business Strategy and the
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performance measurement and dynamic capability perspective. International Journal of
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Research, 29(2), pp.63-86.
Oldman, A. and Tomkins, C., 2018. Cost management and its interplay with business strategy
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Rehman, A.U. and Anwar, M., 2019. Mediating role of enterprise risk management practices
between business strategy and SME performance. Small Enterprise Research, 26(2),
pp.207-227.
Salehi, M. and Arianpoor, A., 2021. The relationship between business strategy and management
entrenchment. International Journal of Productivity and Performance Management.
Yuan, Y., Lu, L.Y., and Yu, Y., 2020. Business strategy and corporate social
responsibility. Journal of Business Ethics, 162(2), pp.359-377.
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