Business Strategy Assignment Solution - Marks and Spencer

Business Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................1
TASK 1............................................................................................................................................1
P1Applying appropriate frameworks to analyse the impact and influence of the macro
environment on a given organisation and its strategies..............................................................1
M1- Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................4
TASK 2............................................................................................................................................4
P2- Analyse the internal environment and capabilities of a given organisation using
appropriate frameworks..............................................................................................................4
M2- Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set..........................................................6
TASK 3............................................................................................................................................6
P3- Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation............................................................................................................6
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes................................................................................................................................8
TASK 4............................................................................................................................................8
P4- Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation...............................................................................................................8
M4 - Produce a strategic management plan that has tangible and tactical strategic priorities
and objectives..............................................................................................................................9
D1 - Critique and interpret information and data applying environmental and competitive
analysis to produce a set of valid strategic directions, objectives and tactical actions. .............9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Business strategy refers to the firm's working plan which helps in achieving vision and
objective of the firm and meet the expectation of its customers. It also helps in optimising the
financial position of the firm with its business model. Strategies are made by keeping in mind
firm's strengths, opportunities, resources, competitors and its market. Strategies helps to
strengthen the performance of the business. The present report is based on Marks and Spencer, a
multinational retail company which was founded in 1884. Its headquarter is situated in London.
Marks and Spencer is famous for clothing, luxury food products and home products and financial
services. It has 800 stores all over the world. This report will cover, the impact and influence of
the macro environment, the internal environment and capabilities, the competitive force of
market sector and the range of theories, concept and models.
TASK 1
P1Applying appropriate frameworks to analyse the impact and influence of the macro
environment on a given organisation and its strategies
Pestle for environmental analysis :
Political factor :
The change in the government policy and taxation policy influence the trading of Marks &
Spencer. The government has set regulation, if company do not follow then it might get close. If
government has increased the duties it will directly impact on the sale of the company and
products will get costlier but company can cover its cost from the customers (Matt, Hess and
Benlian, 2015). The most important factor which can impact the growth of the company is
financial regulation of any country, as every nation does not have the similar mindset on
business. There may be chances that where the organisation want to expand the enterprise is not
open to foreign direct investment.
Economical factor :
The company's retail sale got affected as people do not have extra money to buy luxury goods.
At the time of recession the purchasing power of the customer reduced which have directly
impact on the sale but company can overcome by giving discounts, offers. Also, the conflict
between the small retailers over the rise in the price of the product affects the sale but company
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can collaborate with them (Eaton and Kilby, 2015). The status of economic activities in any
country also have a severe impact on how organisation is going to perform over there. Recession
in any region can affect the sales of Marks and Spencer while it can also lower down the
purchasing power of the consumer. It might happen the revenue of the organisation is also been
down.
Social factor :
The firm will look after the proper management of social conditions and activities that will help
in effective rise in capabilities. This will involve the proper management of work force and their
needs and demands. Keen analysis should be made by company on cultural aspects of the people
where they are going to spend the business. Product should be designed on the basis of that and
organisation must not be involved in creating commodities that hurt the religious sentiments of
people. Market researches on taste, preferences, values of the consumers should be done by
company in order to gain competitive advantage.
Technological factor :
Technology plays a very important role. Changes need to be brought out according to the needs
of the customer and the latest technology otherwise the costumers will not buy. Innovation and
creativity is necessary to attract the customers (Spender, 2014). Use of all new techniques should
be made by company with advancing time. Like for example they can sell their product online
with the help of internet. It will attract more consumers, also it will make more easy for them to
purchase any product.
Legal factor :
The legal regulations keep on changing. The company needs to keep up to date with new laws
and regulations to survive in the competitive market. The changing laws of the country can lay
impact on the growth of Marks and Spencer. Like for example alteration in taxes or rules related
to export and import of clothes can hamper the business of the company.
Environmental factors : Company should also take care of the environment, where they are
performing business. They should lay emphasis on sustainability and also investment must be
done in CSR activities. For example Marks and Spencer is also involved in paper bags instead of
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