Business Strategy: Analysis of Marks and Spencer Company

This report analyzes the strategic formation of Marks and Spencer Company, including mission, vision, objectives, stakeholders, PESTEL analysis, SWOT analysis, strategic capabilities, and internal environment.

Business Strategy
Table of Contents

INTRODUCTION.................................................................................................................................3
LO1.......................................................................................................................................................3
The strategic context..........................................................................................................................3
M1 Macro environment factors.........................................................................................................5
LO2.......................................................................................................................................................7
Organisation integral environment....................................................................................................7
M2. Internal environment of company............................................................................................10
LO3.....................................................................................................................................................11
Analytical tool and model of analysis..............................................................................................11
M3. Appropriate strategies for competitive edge.............................................................................12
LO4.....................................................................................................................................................13
Strategic choices and direction........................................................................................................13
Part B...................................................................................................................................................15
M4. Strategic management plan......................................................................................................15
CONCLUSION...................................................................................................................................16
REFERENCES....................................................................................................................................17

INTRODUCTION
Business strategies are defined as all such policies that are formed to enhance the
growth of company. This report is based on the case study of Marks and Spencer Company in
respect to its business strategy. The organisation was formed in the year 1884 by the Michael
Marks and Thomas Spencer. Headquarter of the company is located in United Kingdom.
Company has been keen towards selling high quality clothing, food products and home
products. This report would analysis the strategic formation of the Marks and Spencer
Company. Henceforth, report will emphasis on mission, vision and objectives of the
company. Stakeholders matrix and stakeholder analysis will define in this project. PESTEL
Analysis and Porter Five Forces would define in this project. Strategic capabilities and key
components associated with the strategic capabilities of company will be discussed in this
project. McKinney 7 S model will be discussed and VRIO Analysis tool will also be
discussed in this project. Analysis tool such as balance score card, porter five forces model,
stakeholder analysis and ansoff growth matrix will be discussed in this project. Porter generic
strategies in context to the organisation will also be discussed in this project.
LO1
The strategic context
Mission and vision
To serve the best level of retail products to all the customers associated with the
Marks and Spencer Company. The main aim behind the businesss operations is to serve the
quality retail products at the best prices possible.
Strategy is defined as the tactic to achieve the objectives behind the business
functions. Strategies play the crucial role in attracting the potential customers associated with
the organisation (Amran and et.al., 2016). It plays a role in allowing the customers to buy the
products offer by Marks and Spencer Company. Strategic intent is the element that company
should channelizes in order to attract the potential customers towards buying company’s

products and services. Strategic planning technique is a key fundamental that are used to
form the suitable strategy for achieving the business objectives of the organisation. This is the
key strategic direction that is channelizes by the organisation to achieve the business
objectives.
Stakeholder matrix
Stakeholder matrix used by Marks and Spencer Company is power intent. In this
stakeholder matrix stakeholders are segregated into four types keep satisfied, manage closely,
monitor and keep informed.
Keep satisfied: Keep satisfied are the stakeholder group that needed to be satisfied in any
circumstances. They are the stakeholders that needed to be satisfied by the company
(Chelliah and Swamy, 2018). These stakeholders are denoted as customers, shareholders,
owners and other such stakeholders.
Manage closely: Manage closely are the stakeholders that needed to be managed closely by
the company. Stakeholders such as employees are associated with this category.
Monitor: Monitor is the stakeholders that need to be monitored closely. These stakeholders
are employees of the company.
Keep informed: Shareholders are part of this category. They need to inform every single
time about the services and products of company, plains of organisation and other such
aspects.
Stakeholder mapping
Stakeholder mapping is associated with the following fundamentals that can be
projected in the following points.
Building a product: This involves customers of company. Suppliers of the company.
Investors are also a part of this stakeholder mapping. All these stakeholders are associated
with the company.
Penetrating a product: This involves new customers, old customers and new retailers
associated with the sector. Retail sector is a huge market sector and these stakeholders play a
key role for the company in achieving the best level of growth in market.

Internal stakeholders: Internal stakeholders are denoted as CEO, Product owner, Product
manager, Designer and Developer. All these stakeholders are the internal stakeholder
associated with the company. They play the direct role in the business operations of
organisation.
External stakeholders: External stakeholders of company are involved with customers,
government and all other external entities associated with the organisation.
The above mentioned stakeholders are the key entities that are associated with the
organisation.
M1 Macro environment factors
PESTEL Analysis
PESTEL Analysis is an external business environment analysis tool. Factors such as
political, economical, social, technological, environment and legal factors part of these
analytical tools.
Political factor: Political factor involve all policies and strategies formed by the government.
This is a key external business environment factor that influences the business operations of
the organisation. Government in United Kingdom and all across the globe has given a huge
emphasis to the growth and development of the retail sector (Chi, Zhao and Li, 2016). As the
sector comprises with the basic nature products require for living as a human which further
increases the significance of this sector. This is a key external business environment factor
that influences directly all business operations of Marks and Spencer Company. All strategies
company formed are based o the policies government has formed in order to grow and
develop the entire retail market.
Economic factor: Economic factor is a key business environment factor influences the
business operations of Marks and Spencer Company. This involve economic condition of
United Kingdom, per capita income of people in UK, foreign policy of government and
several other elements that directly influence the business operations of Marks and Spencer
Company. Inflation in the economy is a key economic factor that influence over the pricing
strategies formed by the Marks and Spencer Company. Inflation restricts the purchasing
power of the potential customers associated with the Marks and Spencer Company which
directly restricts the buying power of the potential level of customers associated with the
Marks and Spencer Company.

Social factor: Social factor is another key factor that influences the policy of the Marks and
Spencer Company. This involves the social background such as education of people, thinking
of people and many other elements. Fashion and trends are the key social elements which
directly influence the business operations of Marks and Spencer Company. All different
social factors put a direct impact over the business operations of Marks and Spencer
Company.
Technological factor: Technological factor involve all types of technological advancement
and development associated with the United Kingdom. Government in United Kingdom has
given a huge emphasis to the technological up gradation and advancement in United
Kingdom which has given a huge motivation to the Marks and Spencer Company to improve
its technological use (Ciasullo, Cardinali and Cosimato, 2017). Today company conduct all
its research to for better strategies based on the technology and all other factors. Social media
and digital channels are used to implement the strategy of company.
Environment factor: Environment factor is another key external business environment
factor that influences the business operations of Marks And Spencer Company. Company
also involved in various social responsibilities as a part of corporate social responsibility
under economic factor. CSR operations allow company to interact with the potential
customers of company along with conducting the social responsibility campaign.
Legal factor: Legal factor comprises with all different laws and legal regulations associated
with the Marks and Spencer Company. In order to conduct the business operations company
need to cope up with the laws such as equality act, anti discrimination act and many such
legal regulations.
The above mentioned factors are the key external business environment factors
influence the business operations of Marks and Spencer Company.
SWOT Analysis
Strength of Marks and Spencer Company
 Diversified products of company.
 Affordable pricing strategy.
 Strong supply chain network

 Low cost products of company.
Weakness of Marks and Spencer
 Less focus over innovation
 Slow business expansion
 Less focus over technological advancement
Opportunity of Marks and Spencer Company
 Business expansion opportunity.
 Product improvement opportunity.
 Digital promotions.
Threat of Marks and Spencer Company
 Competition is a huge threat for company.
LO2
Organisation integral environment
Strategic capabilities
Strategic capability is denoted as the potential of the Marks and Spencer Company to
form the successful strategies that can attract new heights in respect to company’s growth.
Different models are used by company such as McKinsey 7 S Model, Ansoff Growth model
and different others to enhance the strategic capabilities of the organisation.
McKinsey 7 S Model
This model consumes seven s strategic tools to analysis about the internal capacity
and potential of the organisation. Elements such as strategy, structure, systems, shared value,
style, staff and skills.
Strategy: Marks and Spencer Company follow the strategies such as digital strategies and
traditional strategies to conduct the business operations. All strategies company formed are
based on the potential customers of Marks and Spencer Company (Gumusluoglu and Acur,
2016). Strategy supports the organisation in meeting its business objectives.

Structure: Marks and Spencer Company organisation structure is more divisional in nature.
As the company contain the global level business operations this structure is the best suitable
structure associated with the company.
Systems: Marks and Spencer Company follow the decentralised system for its operations. As
the company contain multiple branches which is convenient for the organization to use this
system to manage all its operations.
Style: Marks and Spencer Company adopted the progressive style of leadership in the
organisation. This leadership style has supported the organisation to achieve the best level of
competitive advantages in the business (Hsieh, Ma and Novoselov, 2018). Progressive style
of leadership has guided the management to conduct different training campaigns of
employees which supported the maximum level of work efficiency of the organisation.
Progressive leadership style has also guided the organisation to focus over innovation and
technology development in the organisation. This is another crucial factor that could improve
the growth potential of the organisation.
Staff: In Marks and Spencer Company management focuses over improving the capabilities
and work efficiency of the employee’s part of the organisation. This is an important
functional area that needed to grow and develop by the marketers (Hsieh, Ma and Novoselov,
2019). Training and development of employees play an important role in order to enhance the
overall work efficiencies of such human resources associated with the organisation.
Management at the Marks and Spencer Company provide a suitable environment and
atmosphere so that company can achieve the best level of growth in the target market.
Skills: Skills are denoted as the actual skill and capabilities of company’s employee.
Management of the Marks and Spencer Company conduct different employee training and
development campaign with the support of human resource department in order to improve
the overall growth and development of employees. These training and development campaign
allow organisation to cherish the skills of the employees part of the organisation.
The above mentioned elements are the part of the McKinney 7 S model. These entire
seven S are projected about different organisational aspects of the company.
VRIO Framework

VRIO Framework is a key framework associated with the organisation. This model
comprises with elements like valuable, rare, inimitable and organised. All these four different
factors allow companies to polish the brand value in market. All these elements associated
with the VRIO Analysis framework denote different strategic capabilities of the Marks and
Spencer Company which allow the organisation to take competitive advantages in the market.
Valuable: Marks and Spencer Company contain high brand value. This is an element which
always caters certain amount of value to the organisation. Due to high brand value company
generate heavy sales turnover in both its business models e-commerce model of business and
other offline mode of trading (Iamratanakul, 2018). Marks and Spencer Company is one of
the leading brands in both the trading segments e-commerce trade and offline mode of
trading. Company also approach its corporate social responsibility practices in such a way
that organisation get to involve normal people to conduct such social responsibility
operations. This is a valuable strategy company has used as it allowed the organisation to
improve the brand value of the company.
Rare: Marks and Spencer Company is among the leading and most friendly brand. Company
management has given a huge emphasis over achieving the best level of customer
satisfaction. This is rare in case of big companies and brands as they already sustain huge
customer base which allow them to achieve the profitability even in worst market situation.
This is rare that company still follow the process of achieving the best level of customer
satisfaction to satisfy every single customer of the organisation.
Inimitable: Business model of the Marks and Spencer is based on the ideology that company
is trying to serve the best quality of retail products at the best price possible (Johansson and
Kask, 2017). The product offer by company are affordable for all types of customer base.
This segment is rating that target customer base of the Marks and Spencer Company is every
economic background customer base.
Organised: All operations of the Marks and Spencer Company are well organised.
Management could effectively manage both its trading modes e-commerce mode and offline
mode of business.
The above mentioned analytical reviw is about the VRIO Analysis framework of the
company.

M2. Internal environment of company
Benchmarking strategic capability and value chain analysis
Marks and Spencer Company give huge emphasis over forming benchmarking
strategies to achieve the business objectives in the best way possible (Kueng, Li and Yang,
2016). Strategies like social media marketing, digital promotions, search engine optimisation,
low cost products, no cost emi and many such strategies are associated with the
benchmarking strategies of company which has allowed the company to take competitive
advantages in the market.
Value chain analysis
To assess the internal capabilities and potential of the company value chain analysis is
the strategic tool that supports the organisation in the best way possible to achieve the
business objectives of company (Marx, 2016). This model comprises with factors like
inbound logistic, operations, outbound logistic, marketing & sales and service. All these
elements denote different areas of the internal capabilities of the company.
Inbound logistic: Inbound logistic is a supply chain system in which company collect
products from different brands associated with the retail market. Marks and Spencer
Company is a retail company and it does not produce any such product which it engaged in
selling. Company sale product of other brands in its stores. Inbound logistic involve
collecting products from such brands.
Operations: Operations involve processing such products collected to send to the stores of
the company. This is a crucial process which is inherent in the operation structure of the
company.
Outbound logistic: Once the products are stores in the company after the inbound logistic is
done they sent to the outlets of company (Moseley III, 2017). This entire process of sending
the products to all different stores of company is denoted as outbound logistic.
Marketing and sales: Marketing is an important functional area of the company. Marketing
team of the company usage strategies such as social media, digital tools and many other
techniques to promote company’s products. Sales involve selling the products from the stores
of Marks and Spencer.
Service: This is the services which are served to customers post sales or during the sale.

Cost benefit analysis
Company conduct different strategies such as discount and many other strategies to
provide the cost benefit analysis to customers. Company carry the entire system which
consumes limited time to send the products to all different stores of company. This entire
process makes the overall cost limited which further improves the overall profitability of
company.
LO3
Analytical tool and model of analysis
Balance score card
Balance score card is an internal analytical model used to improve different internal
functional areas and the overall outcome associated with such functional area. This involves
various characteristics to measure such internal aspects of company which involves learning
and growth, business process, customer perspectives and financial data. All these four
element support the company to assess the efficiencies of the internal operations and overall
outcomes against the internal operations company has undertaken (Parnell, 2016). All these
are the four critical aspects of the business growth and success. In order to form the proper
strategies company require assessing all these four aspects of business. These four elements
of the balance score card make the organisation capable of understanding as to whether the
company is capable of achieving its business objectives, mission and vision.
Porter Five Forces Model
Porter Five Forces Model is the competitive analysis model used to assess the
strategic competitiveness of the company. This model involves different forces which allow
the company to achieve the competitive advantages in the market.
Competition in industry (High): Competition in industry is high. Retail sector contain huge
demand of products all across the globe as it involve basic products requires for living. Due
to involvement of basic need of the human being the demand of the sector is always high. All
these elements could attract to plenty of stakeholders and investors to come and earn heavy
returns against the investment. All these aspects could improve the level of competition in the
industry.

Potential of new entrants to industry (High): This force is also high. As the retail sector
contain heavy growth rate and profitability. All these factors create heavy chances of new
entrants to come and explore the competitive advantages of the market (Peris-Ortiz and
Ferreira, 2017). This force is high as every years plenty of new entrants come and join the
market.
Power of supplier (Medium): This force is medium in nature for the big brands like Marks
and Spencer. Due to aggressive presence of company in market organisation always carry
choices of the suppliers that can available products at all different stores of company.
Dependency of supplier is more over company which makes this force to be medium in
nature.
Power of customers (High): Customers carry the huge power in the market. Customers play
role in both sustainability and growth of the company. Due to the immense involvement of
customer in business this force is high.
Threat of substitute product (Medium): This force is medium in nature. Retail sector has
been much explored sector of business environment. Due to this aspect of the sector there is
medium possibility of substitute products available in the market.
Stakeholder Analysis
Different stakeholders associated with the Marks and Spencer Company.
Management: Management is among the key stakeholders associated with the company.
They play role in making crucial decision in favour of the organisation (Sanden, 2016).
Customers: Customers are the key stakeholder associated with the company. They carry role
in sustainability and growth of the company.
Employees: Employees are the key stakeholder associated with the company. They carry role
in every single functional area of the company.
Shareholders: Shareholders are the key stakeholder associated with the company. They are
the owner of the company.
M3. Appropriate strategies for competitive edge
Ansoff Matrix

Ansoff growth matrix is the strategic tool associated with the company. This involves
different growth opportunities.
Market penetration: Market penetration involve increasing sales with the support of
existing products of company in existing market. Company give discounts offer and different
other cost cutting schemes which attract customers to buy such products.
Product development: In this Company can introduce new product in the existing dealing
market.
Market development: In this strategy company enter in the new market with the existing
products.
Diversification: In this strategy company introduce new product in the new market.
Marks and Spencer Company can use market penetration and product development
strategy to enhance the growth potential of company.
LO4
Strategic choices and direction
Porter generic strategy
Porter generic strategy contains the following choices.
Cost and price leadership: Cost and price leadership is a key strategic choice associated
with the porter generic strategy method. In this strategic choice company set the dominance
through offering the best price possible to the customers. Company try to take competitive
advantage through this strategic choice. Price leadership is one of the key tool used to achieve
the dominance in the market.
Differentiation strategy: In this strategic choice company try to create its own image in the
different manner. This is the most effective strategy that allows the company to take
competitive advantages in the market. This strategy is all about creating a different image in
the target market. On the basis of the potential customer base company create this strategy.
Focus strategy: In this strategic choice company try to either create a unique image in
market or it try to create dominance with the support of price. This strategy allows company
to focus over the specific customers on the basis of the prices offer by company.

Company can follow the cost and price leadership strategy to take competitive
advantages in the market.
Hybrid strategy: Hybrid strategy focuses over low pricing and making different image in the
market that can allow the company to take competitive advantage in the market (Wardoyo,
Iriani and Kautsar, 2018). This is a key strategic choice available with the company in market
which allow the company to make competitive advantage in the market.
Diversification: In this strategy company try to create a unique image in the market. In this
strategy company can focus over innovation and product development areas.
Vertical / Horizontal integration: In this strategy company can make strategic alliance with
other competitors to achieve the dominance in market.
Marks and Spencer Company can follow the hybrid strategy to achieve the
competitive advantages in the market.
Bowman strategy clock
Following are the points projected different elements associated with the Bowman
strategy clock.
Low price and low added value: Company should emphasis over the low prices and the low
added values. This would allow the company to attract more number of potential customers
towards buying company’s products along with sustaining the existing customer base.
Low price: This would allow company to sale its products at the mass leel. Company can
enhance the overall sale with the support of low pricing strategy inform of discount sale and
other such strategies.
Hybrid: Company can channelize this strategy to improve the scale of business operations.
Company will be able to deliver and serve to more number of potential customers all across
the globe.
Differentiation: This strategy would allow the organisation to create a unique image in the
market. This is a key strategic tool that would allow the company to achieve the objectives of
company in the best way possible. Differentiation allows company to take competitive
advantage in the market.

Focused differentiation: This is a key strategic tool associated with this model. In this
company channelizes differentiation strategy on the basis of its target customer base.
Risky high margins: This is a key strategic tool that can be utilises by the organisation. In
this company improve its overall sale price over some specific products that contain heavy
demand in market.
Monopoly pricing: All such products that only offered by Marks and Spencer Company can
utilise this strategy. Company can charge heavy prices over such products to improve the
profitability.
Loss of market share: This is the final aspect about the model. In this company cut down its
prices over such products that contain low sales volume.
Part B
M4. Strategic management plan
Aim
 To increase the market share by 30%.
Objectives
 To attract new customers in market.
 To improve the customer satisfaction level.
 To improve the scale of business
Prioritise
The main priortise in this plan is over attracting new customers along with sustaining
the existing customers of company.
Tangible and tactical strategies
Cost leadership strategy: Company will reduce its cost so that new customers can attract by
company. This strategy would support the company in improving the sales of company.
Product development strategy: Product development strategy supported by the Ansoff
Matrix model will be implemented. In this company will introduce new products in its
existing stores.
Improve value chain: Company has formed strategic alliances with different stakeholders in
this aspect.
Social media marketing: Company will promote its products over all social media
marketing platforms.

Tactics
 Company has formed a team to meet all these objectives.
 This team will control all its strategies and its related growth.
 On the basis of the performance necessary medication will also entertain to improve
the growth of company.
Analysing the plan
The team of professional will analysis entire planning of this strategic direction. This
team comprises with experts of all fields to achieve the best level of objectives of company.
CONCLUSION
Competitive advantage is a strategic dimension which allows company to create its
own dominance in the market. Different strategic choices are available with the company
such as diversification, cost leadership and different other strategic choices associated with
the company. Market penetration and product development can also be utilised as the
strategic choices for the company to achieve the growth in the market. Hybrid strategy can
also support the company for improving the strategic competitiveness of the company in
market.

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