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Business Strategy Assignment Sample: Marks & Spencer

   

Added on  2021-01-01

16 Pages5724 Words446 Views
BUSINESS STRATEGY

Table of ContentsINTRODUCTION................................................................................................................................3LO1.......................................................................................................................................................3P1 Macro Environment Impact And Influence On Marks And Spencer(PESTLE)........................3LO2.......................................................................................................................................................5P2 Analysis Of Internal Environment And Frame Work Of Marks And Spencer(SWOT Analysis).........................................................................................................................................................5LO3.......................................................................................................................................................7P3 Porter's Five Force Model To Evaluate The Competitive Force Of Marks And Spencer.........7LO4.......................................................................................................................................................9P4 Porter's Generic Strategy and Bowman's Extended model of strategy:....................................9CONCLUSION..................................................................................................................................13REFERENCE.....................................................................................................................................13

INTRODUCTIONEvery organization's process of achieving desired objectives and it's success is basedcompletely on planning and strategy. It's basically an outline or set of planning which when used byan organization can attract consumers, compete in the market by taking effective actions ordecisions. This report will discuss about the business strategy of Marks & Spencer- It is amultinational retailer industry, which was founded in 1884 by Michael Marks & Thomas Spencer.M&S is mainly known for clothing product, but they also have quality food products and homeproducts. Mission of Marks and Spencer is to make aspirational quality accessible to all and theirvision statement is to be a standard against which others are measured. This project report will layemphasis on macro environmental analysis using PESTLE model, analysis internal environmentand framework of Marks and Spencer Company using SWOT analysis,Porter's Five Forces modelwhich will be used to evaluate competitive forces of Marks and Spencer and at last Bowman'sextended model.LO1P1 Macro Environment Impact And Influence On Marks And Spencer(PESTLE)Marks and Spencer is one of the largest UK based retailer headquartered in London with3000 plus employees. They have their presence globally in more than 40 countries and have morethan 1300 stores. It is the largest retailer selling home products, clothings and food products. Inrecent years it is trying to expand in other departments also such as furnitures, technology etc. Itwas the first UK based organization who made pre-tax profit of more than 1 billion pounds but laterdue to credit crunch, company had a drastic effect(Zalengera and et.al., 2014). Mission of Marksand Spencer is to make aspirational quality accessible to all and their vision statement is to be astandard against which others are measured. Number one competitor of Marks and Spencer isPrimark and Adsa where Primark has almost 14% market share and Adsa has approximately 17%market share and Marks and Spencer has almost 13% market share. Now detailed macro analysis(PESTLE) of Marks and Spencer is explained below:Political: Political factors are about how a government acts in accordance to avoid differentfactors such as health and hazards etc. for the companies. British government has set somestandards like health and safety for the companies such as hazard identification planning,risk control and risk assessment. If companies like Marks and Spencer do not follow these

standards then they are fined or even in some cases they are asked to close down. Marks andSpencer were fined heavily as they did not follow the standards and were fined for ignoringhealth and safety after an incident happened with an employee (a door fell on him) becausethey completely ignored door repair request from other employees. Due to high coststructure of Marks and Spencer they faced disadvantage in international market. Because ofchanging government and taxation policy like free trade policy they had to reduce sourcingcost.These political factor also had some positive effect on the company as free trade policyreduced their sourcing cost which has helped company.Economical: Economic factors have a huge effect on the organization that how they dobusiness, these factors can be exchange rates, economic growth, interest rate and so on.M&S were affected and had a huge conflict with competition given by small retailers bydiscounting their prices and their high prices(Oraman, 2014). At that time people did nothave extra money to be spend on luxurious items such as clothes or food because of thisthey had to close many stores and needed to cut of job by at least 2 %. Due to this recessionthey had to change their marketing way to survive and stay ahead the recession.After BrexitUK and EU's economies has been disturbed which has helped many organizations includingMarks and Spencer as interest rates are low to moderate.Social: Social factors are also called social culture factors where attitude or shared belief ofpeople affects the company. Factors like age distribution, population growth,healthconsequences etc. In past few years' environment and society around has changed a lot andthis change has affected marks and Spencer a lot. To expand their business they started tosell food online which helped to best their business but there were also so some negativeeffects of these social changes as there were many products such as baby bloomers whichwere no longer used had to be recalled which affected their financial conditions. They werenot able to step up to the current trend and received name of non-trendy store. But for agedpeople Marks and Spencer is one of the best brands present in Europe.Technological: It is known by every one that how technology changes and how it affects theproduct marketing. So new ways are to be found for producing, distributing goods orproducts and communicating to the latest market. Since Marks and Spencer had a hugeonline and social media presence, so they weren't affected in technological factors. They hadtaken full advantage of this factor for their business infant they gained huge profit becauseof its online presence. But there was also a factor which had affected many retailers i.e.cyber breech or hacking. Marks and Spencer after being affected by cyber crimes theypartnership with SureCloud, to manage its all infrastructures weather it is external or

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