Business Strategy: Analyzing Macro Environment, Internal Capabilities, and Competitive Forces

BUSINESS
STRATEGY

TABLE OF CONTENT
INTRODUCTION.......................................................................................................................................3
LO 1............................................................................................................................................................ 3
P 1 Appropriate framework analyse of macro environment.....................................................................3
LO 2............................................................................................................................................................ 6
P 2 Internal environment and capabilities................................................................................................6
LO 3............................................................................................................................................................ 9
P 3 Porter’s five forces model and evaluate the competitive forces.........................................................9
LO 4..........................................................................................................................................................12
P 4 Range of theories, concepts and models, interpret and devise strategic planning............................12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Business strategy is a set of goals and objective for which there is a action plan designed
so that the business can smoothly achieve their objectives and goals. This can make the
organizations have clarity of work and the company will be able to get a competitive advantage
very quickly if there are better decisions and a course of plan for the business. Marks & Spencer
is a multinational organization which is a public organization in the market. There are more than
80,000 employees working in the company and the headquarters of the organization is in
London, United Kingdom.
The report would consist of the internal and external factors which can influence the
working of the company. To increase the competitive advantage which the company has in the
market, there are models and concepts which the organization uses so that they can have a better
market for themselves. Competition in the market is increasing which has to be considered while
making decisions for the company so that they can function effectively and efficiently.
LO 1
P 1 Appropriate framework analyse of macro environment
There are different techniques and methods which can be used by organizations to
understand the internal and external factors impacting on the organization which can be gotten
better by the organization (Sanaei and Sobhani, 2018).
SWOT
 Strengths
Marks & Spencer has a strong innovation team which is over 150 years in the market they
have changed the products according to the trends of the customers from time to time which is
why the company is having a strong base of customers. There is a strong and clear brand image
of the company in the market (Nan and Tanriverdi, 2017). The company has expanded
themselves in other departments as well which is a great strength for the company.
 Weaknesses

The company is not being able to have a success for themselves in the foreign market which
is a great disadvantage for the company. The designs of Marks & Spencer do not become a
success in countries like Asia and Middle East. The brand loyalty is low because the customers
are not satisfied with the products of the company completely and the customers switch very
quickly to other brands.
 Opportunities
The company has a great opportunity to expand themselves in other segmentation in the
countries by changing the designs according to the ethics and tradition of people. Understanding
the customers will make the company have a great market for themselves for a long run in
market (Kitsios and Kamariotou, 2019). Adapting to the technological changes in the company
is another opportunity which the company has which can make the company satisfy the
customers more and the productivity of the company can be maintained which is a great factor
for a long run in the market.
 Threats
The greatest threat for the company is the competition which is increasing in the market like
Zara, United Colors of Benetton, etc are few of the other companies which are coming up in the
market and targeting for the market share which Marks & Spencer has. Retailer stores in the area
can also be a great threat for the company because they have a lot of discounts on the products
which can attract a lot of customers to those stores.
PESTLE
 Political Factors
There are many countries which are having free trade policies which can be a great
advantage for the company after Brexit. Though the company has lost its shares in the European
countries but expanding in other countries is possible for the company which can be a great
advantage for the company (Pramanik, Maiti and Maiti, 2018).
 Economic Factors