Influencing Online Retail Sales by 10% within Next Two Years

The assignment highlights the importance of considering new market entry as a future strategy for Marks and Spencer. It emphasizes the role of vision, mission, and SWOT analysis in shaping corporate strategies. The report concludes that effective management of human, financial, and other resources is crucial for achieving long-term objectives. Additionally, it stresses the significance of SMART goals in measuring progress towards strategic objectives.

Business Strategy
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................5
1.1 Analyzing mission, vision, objectives, goals and core competence of Marks and Spencer. .5
1.2 Assessing key factors that have to be considered when formulating a strategic plan of
Marks and Spencer.......................................................................................................................6
1.3 Evaluating two different planning techniques which could be applied in Marks and
Spencer.........................................................................................................................................7
TASK 2............................................................................................................................................7
2.1 Conducting SWOT analysis and its strategic positioning .....................................................7
2.2 Conducting external environmental audit of Marks and Spencer through PESTLE analysis
......................................................................................................................................................9
2.3 Explaining significance of stakeholder analysis .................................................................10
2.4 Designing a new strategy for Marks and Spencer with respect future goals ......................10
TASK 3 ....................................................................................................................................11
3.1 Analysing and evaluating four strategic options are available for M&S to consider as
future strategy of company .......................................................................................................11
3.2 Justifying the selection of appropriate future strategy for Vodafone..................................11
TASK 4..........................................................................................................................................12
4.1 Comparing roles and responsibilities needed to implement future strategic plan of Marks
and Spencer................................................................................................................................12
4.2 Identifying resource required to implement new strategic plan of M&S............................13
4.3 Evaluating the contribution of SMART targets to the achievement of the strategy
implementation..........................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCE ................................................................................................................................15
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INTRODUCTION
Business strategy is determined as organizational plans and procedures that assists
management for handling of various business operations as per the vision and goals of company.
It is a set of certain rules, regulations and policies which are played important role in order to
control every operation of firm. The success of an organization is greatly depending on its
efficiency of business strategies for attainment of different corporate goals (Busenitz and et.al.,
2013). By developing an efficient business strategy, management is able to manage the business
as per the different corporate goals such as expansion of business in new emerging market,
increase goodwill, facilitation of variety of goods and services. The primary objective of the
organizational strategy is to maintain proper balance between business objectives and other
organizational practices.
This report is going to discuss various aspects of business strategy with reference to
business operations of Marks and Spencer. It is one of the leading British retailer organization
which is operating different businesses that include clothing, home furniture, food products, etc.
The company was found Michael Marks and Thomas Spencer in 1884. The company is listed in
the London Stock Market and is a constituent of the FTSE 100 Index. M&S was the first British
retailer to reach a profit of £ 1 billion but after some time, organization is facing significant up
and downs as per the market trends (THE ROBINSON GROUP - MARKS & SPENCER, 2015).
Business entity is well known for its high quality products and services. Organization has faced
significant up-downs in growth and profitability of business as per market trends. This report is
going to evaluate mission and vision statement of M&S that plays important role in formulation
of wide range of business strategies. It explains various strategic issues faced by management in
strategic planning. Apart from that, this report also uses different tools such as SWOT and
PESTLE analysis in order to evaluate business environment and efficiency of organization that
plays important role in future business strategy. As per the corporate business strategies, this
report also carries out stakeholder analysis for evaluation of their role and interest in strategy
formulation process. It describes roles and responsibilities of company with reference to long
term strategic plan. In addition to that a systematic resource analysis provides an opportunities to
business for identification and utilization of appropriate resources as per the requirement of new
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business strategies that could be related to business expansion, increase in satisfaction of
consumers, increase in sales of business entity.
TASK 1
1.1 Analyzing mission, vision, objectives, goals and core competence of Marks and Spencer
Marks and Spencer is one the most popular retail sector organization. The management of
M&S formulate various business strategies on the basis of vision, mission and long term goals of
business entity.
Vision and Mission:
The vision of Marks and Spencer is to become a uniquely inspirational 21st century retail
organization within different market place where business entity is operating different business
operations. As per the vision, business entity has developed a distinct mission in which business
entity is tired to provide a best retail experience which plays important role to meet customers'
expectations in terms of customer service, product range, quality and value (THE ROBINSON
GROUP - MARKS & SPENCER, 2015). In addition to that business entity business provides
adequate reward to its employees that help management in order to influences satisfaction of
consumers. As per the mission, organization is tried to generate a satisfactory return for
shareholders by developing wide range of strategic plans as per the corporate goals.
Goals and Objectives:
By considering the mission and vision, the management of Marks and Spencer has
formulated different objectives and goals. First of all, business entity aims to strengthened
capabilities and determination of priorities for the both in the UK and international. This
objective plays important role in order to accelerate company's food growth and delivery of best
experience to consumers with different products of business entity. The another objective of
Marks and Spencer is to develop a world class talent pool, further growing our skills in key
strategic areas. In addition to that organization is going to expand its retail outlet network (Huan,
Sheoran and Wang, 2004). For managing high competition within Clothing and Home market,
business entity is going to deliver growth by focusing on stylish design, quality and newness,
with better availability and more choice.
Core competence of Marks and Spencer
 M&S core competencies are mainly associated with the development of a strong brand,
excellent quality control and good customer service. As per the core competence,
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business is tired to develop an appropriate combination of business capabilities such as
advanced technologies and superior management skills which plays important role for
providing a firm with a leadership position in the development of core products (Porter,
2008). In addition to that a flexible management structure has found very effective for
managing different business operations as per the current market trends.
1.2 Assessing key factors that have to be considered when formulating a strategic plan of Marks
and Spencer
An organization develop wide range of strategic plan as per corporate goals of business.
In the context of Marks and Spencer, manager considers below mentioned factor while
developing of different strategic plans: Financial factor: It is one of the most common and important factor that plays
significance role in developing of different strategic plans associated with the expansion
of business and development of infrastructure of new services (Uliwick, 2005).
Therefore, the management of M&S has to develop appropriate strategies and identify
appropriate sources through which organization is able to manage needs of funds for
several management practices. In evaluation financial factors, assessment of cost of
different financial resources plays most important role. Stakeholder: The success of an organization is greatly depending on its relationship with
stakeholders such as government, consumers, employees, investors, lenders and
suppliers (Kruger and Mama, 2012). M&S is operating wide range of businesses so as
company has to manage appropriate balance between organization's goals and
expectations of stakeholder while developing of wide range of strategic plans such as
expansion of business, improvement in quality of products etc.
 Competition level: There is huge business rivalry identified within retail industry of UK.
This thing influences price wars and different companies apply wide range of creative
marketing as per the corporate objectives. In this regards, M&S carries out detail
assessment of change in perception of consumers, emergencies of new companies etc
(Marren, 2007). that helps management while developing of different strategic plans
associated with sales growth, business expansion, increase in market share etc.
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1.3 Evaluating two different planning techniques which could be applied in Marks and Spencer
In strategic planning process, an organization uses different tactics as per the distinct
business requirement. In this regards, some most important strategies are explained below: BCG matrix: In the context of retail sector, this approach has found a very useful
approach in business planning. This tool helps management of Marks and Spencer for
analysis market position of several products offered by company. It supports manager for
research and development of new products as per the current market trends. This concept
determines market share of different products in four segments (Feranado, 2011). Cash
cows are identified as those products and services which are having huge market share
along with slow growth. Dogs includes such products and services that are having low
market share and very slow growth. Question mark is evaluated as high growth rate with
less market share. Stars are determined the product categories that have high market share
and fast-growing. This kind of information provides an opportunity to manage for
improving effectiveness of strategic plan.
 Ansoff matrix: This technique evaluates four aspects such as market penetration, product
development, market development and diversification that provide significance assistance
in strategic planning process within M&S (EStrategic Planning Tools, 2014). In the
process of business expansion, market penetration determines the impact of pricing on
demand of products and services. Market development supports organization
identification of target consumers in new market. Another element is product
development through M&S is able to determine features and quality of different products.
Diversification strategy helps managers in development of new products as per the
present market conditions.
TASK 2
2.1 Conducting SWOT analysis and its strategic positioning
In the process of organizational auditing, SWOT analysis helps managers in evaluating of
strength and weakness of business entity through which business entity is able to develop
appropriate business strategies to attain business objectives:
 Strengths:
◦ It is identified as one of the most powerful retail brand in UK.
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◦ M&S’s products are considered as “value for money” product due to quality,
convenience and huge product range.
◦ A variety of brand and product range (Ebaid, 2011)
◦ Business entity has over 1000+ stores present across 40 countries
◦ More than 80,000 employees working in M&S
 Weakness:
◦ Strong competition from other retail brands that reduces market share of company
◦ Business entity needs to protect their brand from misuse of fake imitation products
 Opportunities:
◦ M&S is expanding business on online platforms
◦ Business can introduce new market segments that offer more profit
◦ Future opportunities for business expansion into China & India.
 Threats:
◦ Other retail stores are acting as a threats for company due to their discounted prices
◦ M&S being a global retailer means they are exposed to different political fact while
managing different business operations in different companies (Rendtorff, 2011).
◦ Change in govt policies for retail stores
Product Positioning:
It is most aspect of every business. Product positioning is a marketing technique which is
used by Marks and Spencer intended to present products in the best possible light to different
target audiences. It has significant impact on sales and profitability of business entity.
Positioning involves symbol and message manipulation which are applied on displays and
packaging of products that are offered by company (Palepu, 2010). In the context of Marks and
Spencer, management has disclosed all the information about the quality and features of different
product in packaging that plays important role to increase awareness about different products and
services of company.
2.2 Conducting external environmental audit of Marks and Spencer through PESTLE analysis
External environmental auditing is identified as most crucial aspect of strategic planning
process that has significant impact on success of business plan. Different elements of PESTLE
analysis are explained below:
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 Political: Marks and Spencer is managing business practices in distinct countries of
world therefor top managers require to consider various political aspects and regulations
while developing different strategic plans as per the long term and short term goals
(Jones, 2008). It is mainly UK based organization so as management has to consider
change in tax rates, trade relation with other nation, political culture etc. of UK. This is
because change in tax rates has significant impact on profitability of firm, Economic: It plays important role in growth and development of business entity.
Therefore, managers evaluate present business and economic conditions such as interest
rates, monetary and fiscal policy of government (D'Angelo, 2009). In the context of UK,
country has faced economic down turn that has led negative impact on growth and
development of M&S. But, economic recovery phase is influencing sales of firm. Social: The success of an organization associated with industry is greatly depending on
its ability for facilitating different kinds of products and services according to needs and
interest citizens. Marks and Spencer also takes regular feedback and suggestion of
consumer through which business entity is able to provide best products. Technology: The emergence of online retail business has created significant impact on
sales and market share of Marks and Spencer. In this regard, company is also offering
its all products on different online platforms. In addition to that social media and other
online tools provide new tactics to promote wide range of goods and services within less
cost. Legal: In the section of business planning, manager organizes a detail study about legal
legislation that influences organizational practices with consumer, government and
employees (Alkhafaji and Nelson, 2013). For example: Labor act influences human
resource management activities of Marks and Spencer.
 Environmental: In the process of strategic planning, the administration of M&S
examines change in environment norms such as carbon emission standards etc. In this
regard, business entity uses latest equipment and tactics to reduce energy consumption
in different outlets. This approach provides an opportunity to business for enhancing
brand value.
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2.3 Explaining significance of stakeholder analysis
Stakeholder is termed as individual or a group that has interest in operations and activities
of an organization and its different projects. The major stakeholders of Marks and Spencer
includes consumers, citizen, public authority, suppliers, shareholders and lenders. In the process
stakeholder analysis, business entity tires to assess distinct monetary and non-monetary needs of
different stakeholders like dividend for shareholders, good quality product for consumers, proper
taxation for government and etc (Busenitz and et.al., 2013). By developing long term relation
with the stakeholders, business entity is able to attain business objectives in which management
needs to develop proper balance between goals of company and expectations of stakeholders.
Importance of stakeholder analysis:
 It assists manage in conflict resolution with staff members and consumers on different
issues.
 This thing enhances understanding between managers and stakeholders.
 Good relations with consumers increase sales of company.
 It enhances effectiveness of management decisions as per the long term goals of company
2.4 Designing a new strategy for Marks and Spencer with respect future goals
A strategy is termed as combination of several business activities or management
practices that will be carried out by manager for attainment of long and short term goals (Huan,
Sheoran and Wang, 2004). For attainment of future objectives such as increase in consumer base,
profitability and market share along with handling of market fluctuation of domestic markets,
administration of Marks and Spencer needs to expand its business in new emerging market with
the help of latest and innovative products and services. In this, company is able to offer a wide
range through different online and offline medium in new emerging market of world such as
India and China with reference to needs and lifestyle of people (Porter, 2008). By facilitating
high quality products with unique design and features, organization is able to attract new
consumers. Furthermore, Organization needs to apply proactive marketing tactics that will
present good image of company and encourage consumers.
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TASK 3
3.1 Analysing and evaluating four strategic options are available for M&S to consider as future
strategy of company
As per the business goals, different strategies as strategic options are explained below: Market entry: Vodafone could adopt new market entry to achieve long term business
goals. In this process, management should have to carry out detail assessment of various
government rules and regulations of domestic along with international government
(Uliwick, 2005). A systematic market research will provide significant benefit in strategy
implementation process. Substantive growth: This strategy could support M&S for improving operational
efficiency of business entity. In order to gain future wealth, business entity should
evaluate current business position of competitors and market trends. Limited growth: The primary purpose of this element is to achieve organization target
related to growth in volume and turnover (Kruger and Mama, 2012). Management
evaluates market penetration and market development elements along with improvement
in service quality, marketing operations etc.
 Retrenchment: This strategy has found very effective in adverse market condition.
Therefore, top management of retail could adopt different plan related to disinvestment,
liquidation and etc. This concept prevents business entity from market conditions like
recession, failure of expansion project and etc.
3.2 Justifying the selection of appropriate future strategy for Vodafone
On the basis of above assessment of various alternative strategies, managers of Vodafone
should consider new market entry as a strategic plan for attainment of long term profitability and
sales goals. This plan will provide competitive edge to M&S over other companies in new
emerging markets if company introduces some new product and services (Marren, 2007). This
plan will support management of Marks and Spencer for managing market fluctuations of
existing or domestic market that lead negative impact on sales and profit of retail organization.
This strategy will increase market share and profitability of organization by adding new
consumers. This strategy plays important role to maintain profitability of M&S. This is because
company is able recover loss of one market from profit of other market.
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TASK 4
4.1 Comparing roles and responsibilities needed to implement future strategic plan of Marks and
Spencer
The management of M&S applies various strategies for implement ion of plan related to
new market entry.
Activities needed to implement new future plan of M&S:
 Identification of target market
 Evaluation of business environment of new market
 Assessment of culture and preference of consumer
 Evaluation of market share of competitors
 Examination of government legislation
 Preparation of legal documentation
 Development of joint ventures and partnership contracts
 Implementation of plan
 Review and evaluation
Comparing role and responsibilities of staff: Responsibilities of legal and operational staff: If management of Marks and Spencer
wants to enter in new market then business entity has to allocates different tasks to
operational and legal staff associated with increasing the understanding of different laws
and licensing policies of local government (Feranado, 2011). This process helps manager
in documentation related formalities associated with registration of firm and development
of joint venture contracts
 Role of marketing employees: This department of M&S formulates wide range of
promotion and marketing that would support organization for increasing awareness of
different products and services offered by company in new market (Ebaid, 2011) .
Therefore, marketers are responsible to carry out market research for assessment of
potential consumers and their interests. This information helps in selection effective
advertising tools.
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4.2 Identifying resource required to implement new strategic plan of M&S
For implementation of new future strategy related to new market entry, some important
resources are evaluated below: Financial resources: For ensuring success in expansion project, the proper identification
and allocation of different monetary resources helps management in handling various
investment related strategies. Therefore, Top manager makes efforts to assess different
sources such as investors, international joint ventures and form bank lending from
particular market (Rendtorff, 2011). These resources helps business entity for acquisition
of workers, development of infrastructure etc. Human resources: Highly qualified employees plays important role for influencing the
efficiency and effectiveness of business operation related as per the future objectives.
Therefore, Marks and Spencer has implemented various tactics for training and
development of staff members (D'Angelo, 2009). Managers also identifies various new
sources staff for acquisition of highly skilled workers.
 Physical wealth: It contains all machineries and equipments which are used to develop an
online and offline infrastructure for retail organization. In order to acquire different kinds
of physical resources, top management conducts a detail market research to identify
various suppliers that will provide material within less price.
4.3 Evaluating the contribution of SMART targets to the achievement of the strategy
implementation
The SMART objective of M&S new market entry plan:
 To increase sales of M&S in Indian market by 15% within next two years
 To enhance market share in Indian market by 2% within next two years
 To influence online retail sales of company by 10% within next two years.
The SMART objectives has played important in the strategy implementation process. On
the basis of SMART goals, organization is able to develop appropriate strategies for completion
of different task as per the predetermined time period (Jones, 2008). It provides such goals that
can be evaluated while implementation of different strategies such as new market entry. The
evaluation is carried on the basis of different terms such as achievement, time period etc.
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CONCLUSION
On the basis of above assessment, this report has concluded that vision and mission of
company provides a basis for formulation of various strategies. It has found that SWOT and
PESTLE analysis develop basis for formation of various future strategies of firm. This report has
addressed new market entry is best future plan of corporate strategy for Marks and Spencer
because it will increase consumer base profitability of firm. It concludes that management has to
manage human, financial and other resources for success of long term objectives of company.
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REFERENCE
Journals and Books
Alkhafaji, A. and Nelson, A. R., 2013. Strategic Management: Formulation, Implementation,
and Control in a Dynamic Environment.Routledge.
Busenitz, L. W. and et.al., 2003. Entrepreneurship research in emergence: Past trends and future
directions. Journal of management. 9. pp. 285-308.
D'Angelo, J., 2009. Business Strategies: A Plan for Success. Cengage Learning.
Ebaid, E. I., 2011. Internal audit function: an exploratory study from Egyptian listed firms.
International Journal of Law and Management. 53(2). pp.108 – 128.
Feranado, C. A., 2011. Business Environment. Pearson Education India.
Huan, S. H., Sheoran, S. K. and Wang, G., 2004. A review and analysis of supply chain
operations reference (SCOR) model. Supply Chain Management: An International
Journal. 22. pp. 23-29.
Jones, G., 2008. Essentials of Strategic Management. Cengage Learning.
Kruger, C. and Mama, M., 2012. Incorporating business strategy formulation with identity
management strategy formulation. Information Management & Computer Security. 20(3).
pp.152–169.
Marren, P., 2007. High-functioning business strategy. Journal of Business Strategy. 28(6). pp.37-
39.
Palepu, K., 2010. Winning in Emerging Markets: A Road Map for Strategy and Execution.
Harvard Business Press.
Porter, E. M., 2008. Competitive Strategy: Techniques for Analyzing Industries and Competitors.
Simon and Schuster.
Rendtorff, . J., 2011. Stakeholders. Journal of Society and Business Review. 6(1). pp.99 – 100.
Uliwick, W. A., 2005. Business Strategy Formulation: Theory,Process and the Intellectual
Revolution. IAP.
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Online
Strategic PlanningTools. 2014. [Online]. Available through:<http://www.simply-strategic-
planning.com/strategic-planning-tools.html>. [Access on 26th November 2015].
THE ROBINSON GROUP - MARKS & SPENCER. 2015. [Online]. Available
through:<http://www.marksandspencer.com.sg/aboutus.php> [Access on 26th November
2015].
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