Business Strategy for Marks and Spencer: PESTEL, SWOT, Porter's Five Forces, and Bowman's Strategy Clock Analysis

This report provides an in-depth analysis of the business strategy of Marks and Spencer, including PESTEL and SWOT analysis, Porter's Five Forces model, and Bowman's Strategy Clock analysis. It also includes valid strategies and tactical objectives for the attainment of overall strategic objectives. The report evaluates the competitive environment and identifies existing and potential competitive advantages. It also critically evaluates different types of strategic directions available to the organization.

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
PART A.......................................................................................................................................3
1. PESTEL and SWOT analysis of organisation for evaluation of resource and capability of
company .....................................................................................................................................3
2. Competitive environment analysis with using porter's five forces model .............................6
3. Identification and justification of existing and potential competitive advantage ...................7
4. Valid strategies and tactical objectives for attainment of overall strategic objectives ...........8
PART B............................................................................................................................................9
1. Critical evaluation of different types of strategic direction available to organisation ...........9
2. Justification and recommendation of growth platform and strategies .................................10
3. Evaluation of different ways and means for purpose of monitoring strategies to get success
...................................................................................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business strategies can be described as set of different types of competitive moves as well as
action which is used by business for purpose of attracting customers, strengthening customers,
competing in market successfully and attainment of goals of business. It is a tactics which helps
business to reach to reach to their desired goals (Adizov, 2020). This project report includes
Marks and Spencer which is UK based organisation. It is a multinational organisation which is
providing their products and service in different countries and was introduced by Michel Marks
and Thomas Spencer in the year 1884 in UK. In this report, discussion is made out for
application of framework analysis of impact and influence of macro environment in a specific
organisation and its strategies. Analysation of internal environment as well as capability of
organisation with use of different framework. It apply Porter's five forces model for purpose of
evaluation of competitive forces present in market. Moreover, it apply different range of theories
and models for interpret and device different types of strategic planning.
MAIN BODY
PART A
1. PESTEL and SWOT analysis of organisation for evaluation of resource and capability of
company
PESTEL analysis: It is a macro environment analysis which identify factors present
outside business environment (Agwu, 2018). It is one of component that is present outside
business environment and create serious impact over business of Marks and Spencer. PESTEL
analysis in context of company is mentioned below:
Political factors: Political factors are those factors which are related to government rules
an regulation. These factors create influence over business of Marks and Spencer as it is a
multinational organisation for this reason their business is affected with political factor of
different country (Amason and Ward, 2020). Due to Brexit and Covid- 19 situation, government
of many countries is making changes in rules and regulation which create negative impact over
business of Marks and Spencer. But at same time, government is providing support to business
by ensuring free trade in their countries.
Economic factors: Economic factors create impact over cost of company which are
related to interest rate, wages rate, inflation rate and other components. Due to covid-19 factors,

economy of many countries is facing recession which can create impact over business. As due to
impact of it, purchasing power of people is also decrease which does not allow them to purchase
products of Marks and Spencer. There are various competitors which are offering same products
like Marks and Spencer at lower prices which also results in loss for company.
Social Factors: Social factors are those factors which are related to social norms, values
and belief. Marks and Spencer is operating in market since 1800s due to which it is considered as
less trendy store in UK (Ansoff, Kipley and Ansoff, 2018). People in today's time are more
focusing on trendy clothes and more aware about fashionable clothes. In last years, demand of
ready meals has increased in market which provide opportunity for food stores of Marks and
Spencer.
Technology factors: Technology factors are another important factors which provide
benefits of improved efficiency and differentiation to a business. Marks and Spencer is adopting
new technologies like different payment method, self check out method which helps them to
reduce payment time. These components are important in order to enhance experience of
customers.
Environmental factors: Environmental analysis can be described as analysis that is
related to weather, climate condition, pollution. There is increasing environmental analysis
among people of UK which create opportunity for company as they are making initiative for
contribution of environmental safety. But at same time, it results in increasing cost of company
which reduce its profit in market.
Legal Factors: Legal factors are related to law and regulation imposed in a legal
structure of a country (Chen, Zuo and Ni, 2020). There are different types of employment laws,
food safety laws, health and safety at workplace laws which all are adopted by Marks and
Spencer in their organisation that provide them support from government and also creating
positive image of company in minds of customers.
SWOT analysis
SWOT analysis refers to a framework which is used by the company for evaluating its
competitive position as well as develop an strategic plan in order to improve and maintain them
in effective manner. SWOT analysis is used by the company in order to identify its strengths,
weaknesses, opportunities and threats. In context of Marks and Spencer, its strengths,
weaknesses, opportunities and threats are described below:

Strengths- Strengths refers to those factors which makes a company more strong and
competitive in order to survive in market in effective manner (Chofreh, Goni and Zeinalnezhad,
2021). In respect of Marks and Spencer, its strengths are it is a multinational company and
recognised brand which make them more stronger from other company. Its well experienced
staff and variety of brands are also make them more competitive.
Weaknesses- Weaknesses are refers to those factors which may create problems for the
company in its long survival in the market. In regards of Marks and Spencer, its weaknesses are
its declining sales, high cost due to manual processes and perception of public can leads to them
in loss. Its inability to penetrate successfully in international market and supply chain scalability
are also affects them in order to survive in the market in effective manner.
Opportunities- Opportunities are refers to those factors which create a chance for the company
in order to become more competitive in future. In case of Marks and Spencer, its opportunities
are online stores, global expansion and market segmentation can provide various benefits to them
and make them more competitive in the market.
Threats- Threats are refers to those factors of company which harms them in order to survive in
the market. In accordance with Marks and Spencer, its main threat is high competition in the
market. Its strong competitors are Tesco, Amazon, ASDA, Sainsbury, GAP and Next.
VRIO analysis
VRIO analysis is an internal analysis tool used by managers of Marks and Spencer which
is used for purpose of evaluation of resources that provide them competitive advantage (Gallo
and Tomčíková, 2019). It helps business to finding out competitive advantage and application of
this model in context of Marks and Spencer is mentioned below:
Resources and
Capability
Valuable Rare Imitable Organised
Employees Yes No No No
Financial
Resource
Yes Yes No No
Patents Yes Yes Yes No

Distribution
Channels
Yes Yes Yes Yes
Valuable resources: It includes resources which is providing creating values for
organisation and allow them to get various opportunities present in market. Marks and Spencer
has various valuable resources like employees. Patents, distribution channel as well as financial
resources.
Rare resources: It includes those resources which are not possessed by other competitors
present in market. These resources provide competitive advantage to an organisation and allow
them to capture market share (Keding, 2021). Marks and Spencer has various rate resources like
financial resources, distribution channel and patents.
Inimitable resources: It includes those resources which cannot be easily imitate or
copies by competitors. These resources cannot be easily acquired by competitors and provide
competitive advantage to business. Marks and Spencer has inimitable distribution network and
patent resources.
Organisation: It is another component in which resources of company can be organised
in well manner that create competitive advantage for business. Marks and Spencer has organised
distribution resources which provide them opportunity.
2. Competitive environment analysis with using porter's five forces model
Porters' five forces model:
It is one of model that was introduced by Michael E Porter in the year 1979 that provide
framework for purpose of assessment and evaluation of competitive strength. It is a model that is
based on determination of intensity and attractiveness of market (Mahadevan, 2020). It is one of
useful tool for business of Marks and Spencer for purpose of analysation of business situation.
Explanation of these model in context of Marks and Spencer is mentioned below:
Supplier power: Supplier power can be defined as power for easily driving up prices
which can be affected with numbers of supplier present in market, uniqueness of products and
service, strength of suppliers, cost of switching and other things. Marks and Spencer has lesser
threat from this factors as there are numbers of suppliers present in market which are of different
country. This organisation is not depended on a single supplier for purpose of delivery of
products and service.

Buyer power: Buyer power can be defined as power of customers to drive prices down.
It can be impact with numbers of buyer present in market and their importance, cost of switching
from one to another. Marks and Spencer is targeting large market share which reduce bargaining
power of customers as one buyer cannot create impact over sales of company.
Competition rivalry: Competition rivalry is another important factors that create impact
over attractiveness of industry. Increasing numbers of competitors in industry does not allow
company to increase their profit and marketing share (Mongkol, 2021). There is increasing
numbers of competition in market of UK which create impact over business of Marks and
Spacer. There is high threat of this factors on business of Marks and Spencer.
Threat of substitute: Substitute are products with can be easily replace with products
offered by company. Increasing substitute in market decrease uniqueness of products in market.
There are lesser numbers of substitute in market which create moderate threat for business of
Marks and Spencer.
Threat of new entry: In order to establish industry in retail sector and operating business
at large level, huge investment is required. It contain high risk in market as there are increasing
competitors in market, so it is not easier for new marketing player to enter in this industry and
compete with Marks and Spencer.
3. Identification and justification of existing and potential competitive advantage
Value chain analysis: Value chain analysis is one of analysis to be adopted by companies to
purpose of evaluation of different types of activities of values chain of company that provide
understanding for opportunity. In this, managers of Marks and Spencer can get competitive
advantage in market with two strategies which are mentioned below:
Cost Reduction: It is one of strategy in which company is focusing on reducing cost of
business with developing different activities for make their values chain less expensive and
making it more efficient (Morrison and Misener, 2020). It provide competitive advantage to
business as company can sell their products at less price in compare to their competitors which
provide them opportunity to attract more customers towards them.
Product Differentiation: Product differentiation is another strategy which allow
company to get competitive advantage in which managers of Marks and Spencer needs to invest
their more and more time on research activities, designing and marketing activities. It allow them
to attract customers and make them unique on basis of their innovation adopted in business.

In this focus on company is basically on two types of activities like primary activities and
secondary activities. Primary activities includes those which can be directly inked with creation
of products as well as execution of service. It includes various activities which in context of
Marks and Spencer is mentioned below:
 Inbound logistics
 Operation
 After sales service
 Marketing and sales
Secondary activities are those activities which are contributing for primary activities to be
more efficient and develop competitive advantage for them (O’Brien, Parent and Gowthorp,
2019). These activities in context of Marks and Spencer includes following:
 Procurement
 Technological Development
 Infrastructure
 Human Resources Management
4. Valid strategies and tactical objectives for attainment of overall strategic objectives
There are different types of strategies to be required by managers for company for
attainment of their strategies objectives. These strategies helps them for purpose of overcome of
various challenges occur in business and also helps them to improve their efficiency. These
strategies adopted by managers of Marks and Spencer for attainment of goals and objectives of
company is mentioned below:
Customer relation management: It is an effective strategies to be adopted by managers
of Marks and Spencer which allow them to develop effective relationship with their customers.
In this competitive business environment, it is essential for business to develop strong customer
relationship (Randrup and Jansson, 2020). It allow them to retain more and more customers with
company and maintain their loyalty with company.
Motivation strategies: Managers of Marks and Spencer is also adopting motivational
strategies in their organisation which allow them yo create urge, willingness to complete a work.
It helps them for purpose of work willingly for attainment of goals and objectives of company
that is important in order to get success and growth in market.

Effective leadership: Leadership is another important component which is important for
managers of Marks and Spencer. On basis of it, company can guide behaviour of people working
in organisation and also provide shape to their efforts which helps them for attainment of goals
and objectives of company.
PART B
1. Critical evaluation of different types of strategic direction available to organisation
There are different type of strategies to be adopted by companies for purpose of
overcome of issues and problems occur in their organisation. For this, managers of Marks and
Spencer is adopting strategic model like Bowman's strategy clock.
Bowman's strategy clock
It is one of model that was introduced by economist like Cliff Bowman as well as David
Faulkner. It is focusing on increasing awareness of company's position in compare to
competitors (Rascão, 2020). It is based on two main dimension of company like price of
products and perceived values of product. There around 8 position in Bowman Strategy clock
which in context of Marks and Spencer is mentioned below:
Low price and low added values: Adoption of this strategy in Marks and Spencer allow
them to keep the prices of products at low which aloe them to compete in contemporaries market
but its also create lower values for customer in market. It does not provide competitive position
for company in Bowman's strategy clock.
Low price: It is another strategy which can be followed by Marks and Spencer that allow
managers of company to produce large numbers of quantities for products and service. It is
another strategies which allow company and allow them to offer products and service at lower
prices.
Hybrid: It is another strategy which can be adopted by managers of Marks and Spencer
and can be an effective strategy that is adding values on products on a consistent basis.
Differentiation: It is another strategy that can be implemented in Marks and Spencer in
which managers are making efforts by offering innovative products and creating more values for
customers in order to develop distinct identity in market (Stoyanova, 2019).
Focused differentiation: It is another strategy which is to be adopted by managers of
Marks and Spencer that focus on exclusive as well as luxury products that are of higher quality

and can be sold on higher prices. In this, in order to get more profit, business managers are
focusing on different strategies like promotion segmentation and distribution and other strategies.
Risk High Margins: Adoption of this strategy in Marks and Spencer can allow them to
charge higher prices of products and allow customers to perceive higher values. It is a risky
strategy in which can be failed in long term.
Monopoly pricing: In this strategy, company can develop monopoly position in market
which they are the one who is offering that product in market (Trofimova, 2020). In this, Marks
and Spencer is not facing competition in market and company can themselves determine prices
of products.
Loss of Market Share: It is another stage in which company is not capable for offering
products that can create values for customers.
2. Justification and recommendation of growth platform and strategies
From above mentioned discussion of Bowman strategies, managers of Marks and
Spencer is adopting focused differentiation which can provide them competitive advantage to
business. In focused differentiation, managers are identifying new method of innovation through
research and development activities, asking for new ideas in business. These techniques allow
business managers for developing innovation in business that is important in order to overcome
of competition. Marks and Spencer can adopt differentiation through improving customers
service, quality of products and increasingly using technology.
3. Evaluation of different ways and means for purpose of monitoring strategies to get success
Strategic management plan
Background: Marks and Spencer is facing problems related to decreasing sales of company
constantly along with its profitability level. It does not allow company to compete in market and
also decreasing their market share (Valeri, 2021). In order to overcome of this problems,
company is preparing a strategies management plan that allow them to overcome of this problem
and increase their sales.
Organisation Structure:
Organisation structure play important role in business as it decide roles and responsibility
of different members with clarity of who is responsible to whom. In order to effectively manage
things in organisation, managers of Marks and Spencer is adopting Divisional organisation

structure. It is a types of organisation structure which allow company to get advantage of
specialisation.
Vision:
Vision of Marks and Spencer is to create standards for customers which enhance their
satisfaction. It is increasingly focusing on innovation in organisation that allow them to
differentiate their products and service from their competitors and also enhancing experience of
customers.
Mission:
Mission of Marks and Spencer is to develop aspirational quality that can be accessible to
customers. These quality is helps them for getting and attracting more customers and allow them
to be loyal for business of company (Wehde, 2018).
Marketing Mix:
Marketing mix is another tool which is adopted by managers of Marks and Spencer. It is
a tool that include combination of different P's like product, price, place, promotion. Explanation
of these factors in context of Marks and Spencer is mentioned below:
Product: Marks and Spencer is offering different types of products and service to their
customers. It is offering clothing home product, food product to their customers.
Price: Marks and Spencer is offering premium prices for their products and service in
market. It is one of organisation which is offering higher quality of products and service to their
customers and in exchange, they are charging premium prices.
Place: Marks and Spencer is offering their products and service in their exclusive store.
These stores can be easily accessible for their customers. This organisation is also providing their
products and service at online stores which increase products and service of company.
Promotion: Marks and Spencer is also different types of promotional strategies for
purpose of increasing awareness of their products and service. It is adopting digital method for
promotion of their products and service like social media marketing.
Strategy formulation:
Marks and Spencer is facing problems related to decreasing sales in their organisation. In
order to overcome of this problem, managers are adopting differentiation strategy. For this,
company is adopting innovation and focusing more on online platforms. Online platform are

providing more benefit to business of a company. With this, managers of Marks and Spencer is
focusing on online sales of company and more emphasising on digital marketing.
Implementation:
It is not enough for managers to develop strategies for company, it is also essential for
them to implement these strategies in organisation. In order to actually implement strategies,
managers needs to adopt effective leadership strategies and communicate with different members
in order to get their contribution in business.
Evaluation:
In this, managers are carefully monitoring strategies and identifying problems. Main goal
of this stage is to identifying problems and finding solution to overcome of problems occur in
business. It also allow company for developing improvement in existing strategies.
CONCLUSION
From above mentioned project report, it can be concluded that strategic plan is important
for business to overcome of problems and implementation of new strategies in business. In order
to develop a strategic plan, business managers needs to identify problems occur in business. For
this, they are using different types of model occur in business. These models includes PESTEL
analysis which is a macro environment analysis tool. SWOT analysis is another internal external
analysis which helps them for purpose of identification of strength, weakness, opportunity and
threat. In order to analyse competitiveness of industry managers are using porters five forces
model that includes competition, bargaining power of supplier and customers, threat of
substitute, new entry. For purpose of analysation of resources and capability of organisation,
business managers are using VRIO analysis. For effectively solving problems managers are
developing various strategies and in order to implement it in effective manner, they are using
strategic management plan.

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