Business Strategy: Evaluating Macro Environment and Internal Capabilities of Marks & Spencer

Business Strategy

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Evaluate the effectiveness business strategies theories of macro environment in terms of
organisation perspective.........................................................................................................1
M1 Critically evaluated the macro environment analysis in the context of organisation......3
TASK 2............................................................................................................................................4
P2 Analysing the internal environment and capabilities of Marks & Spencer.......................4
M2 Critical evaluation of internal strengths and weaknesses of Marks & Spencer...............8
TASK 3............................................................................................................................................8
P3 Applying Porter’s five forces model and evaluating the competitive forces of Marks &
Spencer...................................................................................................................................8
M3 Devising strategies to improve the competitive edge and market environment of Marks &
Spencer...................................................................................................................................9
TASK 4..........................................................................................................................................10
P4/M4 Applying models and theories for devising a strategic plan for Marks & Spencer..10
D4 Critique and interpret the information for applying on the environment and competitive
analysis with the help of valid strategic direction................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy refers to the action plan in which an organisation run its operation in order to
achieve all organisational objectives and profit units. Business strategy also refers to set of
competitive actions, moves and tactics that a business uses in order to attract customers, compete
successfully in the marketplace, strengthen its performances and attain organisational goals.
Business strategy basically outlines the manner how a business should be carried out for reaching
to desired end or outcomes. This project Marks & Spencer is major British multinational retailer
mainly dealing in fashion and home accessories. Marks and Spencer was founded in 1884 by
Michael marks and Thomas Spencer. The company serves to worldwide customers through their
multi-storey stores but headquartered in London, UK. This report is developed for Marks and
Spencer considering the impact of BREXIT. The report covers analysis of macro environment
off Marks and Spencer with the help of PESTLE analysis (Park, Y. and Mithas, S., 2020). Along
with internal and external capabilities of company by using SWOT and VRIO framework. More
over porter's five forces model is also applied in order to seek knowledge about the competitive
edge of company for developing a thorough business plan. At the end with the help of evaluation
and assessment of Marks and Spencer a business plan is formulated by applying specific models
and tactics.
TASK 1
P1 Evaluate the effectiveness business strategies theories of macro environment in
terms of organisation perspective.
PESTLE ANALYSIS.
The Pestle analysis is the framework of determination about the external factor of micro
environment information provides to the organisation that how it can influences from political,
Environmental, Social, Technological, economical and legal factors which impact of marks and
spencer’s company. So, there is following Pestle analysation in context of Marks and Spencer’s
which can influence the growth, consumers, goodwill as well as brand value etc.
 Political: This factor is determine the regulation and rules which are constructed by
government and compliance framework that can influence in the business strategies, it is
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not always be the government policies are against towards the organisation growth
sometimes it provides the benefits and also instructed to pursue the Tarde as per the
government norms which includes political rules, policies, stability and unsustainability.
Similarly for Mark and spencer’s as it is retailer top most priorities company by
consumers where the political factor is determine the dynamic benefits towards the
economy, it will secure from the military invasion and other which covers in army
offenses, the Brexit entrant having impactful consequences where it stats about the
workforce where the European workers are not allowed in United kingdom business
firms, where it will destructed the brand value as well as the productivity. So, the political
factor can solve these impactful circumstances (Balon, V. and et. al., 2019).
 Economical: The economical segments are influences the economy performances which
directly and indirectly impact on company’s overview performance. The factors which
influences can be inflation, and economic growth, recession according the lack of of
investments etc which can affect the organisation. The Marks and spencer’s group
company having economic factor as inflation, growth rate and other segments, exchange
rates can be benefitable to the company perspective, these factor are favourable for marks
and spencer’s where the plenty of financial investors have invested the capital to promote
the retailer business, it improvise the infrastructure quality in retail industry.
 Social: This social factor comprises the characteristics of demographic like mission,
vison and norms which indicates the core values as well the trading of products classified
into age, gender, religion, attitudes and behaviour. All these factors are determining the
marketers when they dealing the product into targeted customers these factors helps to
provide the guidance them. Mark and Spencer’s are having a good potential of dealing
their products into demographic populations which includes the Class structure, hierarchy
and power of the society. Cultural and norms can be impulsive in terms of cosumers core
values with attitudes and behaviour are more considerable into health, self-consciousness.
The retail industry always targeted to all consumers preferences with objective to fulfil
the requirement of consumers (Jaiswal, S., 2019).
 Technology: This factor is considered about the utilisation of technological resources by
the environment as well as organisation which gives a lead towards the development
innovations, incentives and advanced automation which can influence the market trend
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