Analyzing Macro Environment and Internal Capabilities of M&S

BUSINESS
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
P1 Application of appropriate frameworks for analysing the macro environment ...............4
M1: Critically analyse the macro environment to determine and inform strategic management
decisions.................................................................................................................................8
TASK 2............................................................................................................................................8
P2 Evaluate the capabilities and internal environment of a company by using appropriate
frameworks.............................................................................................................................8
M2 Critically analyse the internal environment to asses strengths and weaknesses of an
organization’s internal capabilities structure and skill set....................................................13
TASK 3..........................................................................................................................................14
P3 Implement porter's five forces to evaluate competitive forces of a market sector for a firm
..............................................................................................................................................14
M3: Devising of proper strategies to improve competitive edge and market position based on
the outcomes.........................................................................................................................15
TASK 4..........................................................................................................................................15
P4 Apply different models and concepts to explain strategic planning...............................15
M4 : Strategic management plan including different strategic priorities & objective.........18
D1: Critique and interpret information by application of environmental & competitive
analysis for producing a valid strategic directions objectives & tactical actions................20
CONCLUSION..............................................................................................................................21
REFERNCES.................................................................................................................................22

INTRODUCTION
Forming a competitive business Strategy is very important for a business organisation in
for their survival. Present report is based on M&S that is a leading retail brands of UK. They are
offering high quality of products and deal on product segments like food, clothing and home
based products. Present report is based on the discussion of making a macro environment
analysis by use of PETSLE analysis as a macro environment framework and tools like SWOT
analysis, VRIO analysis is used for the purpose of developing a detail overview of internal
strength and weakness that is part of a organisation (Anwar and Hasnu, 2016). Further there is
use of porters five forces analysis for the purpose of understanding external forces that can
posses a influence on functioning of a business organisation. With help of analysis made from all
these frameworks there is development of a strategic management plan that has to be achieved in
long run by a business organisation.

TASK 1
P1 Application of appropriate frameworks for analysing the macro environment
Mission statement:
Mission statement of M&S is to make inspirational quality available to their customers.
Vision statement:
Vision of M&S is to accomplish their future goals and create a platform to lay down behaviour
guidelines that is reflecting in their value statement to offer high quality commodities.
PESTLE Analysis:
This is a macro environment tool that is applied of developing a detailed perception of
various perspectives that are part of external environment and can generate opportunities &
threats for a business organisation:
Illustration 1: PESTLE analysis

Political: These factors are related to the rules and norms set up by the government of a
organisation. Recently Brexit has resulted into huge impact on the functioning of retail brands in
UK.
Positive : When all the rules and regulation are timely followed by a organisation then it leads to
positive impact on their overall brand image.
Negative: Brexit impact might result into loss of certain policies with the European suppliers
and can lead to higher cost for consumers that might impact the present level of sales for M & S.
Economic: There are certain economic factors that is affecting organisations of UK.
Positive: There is a positive impact of economic conditions flourishing in a country such as
decision of M & D to switch to use of foreign suppliers have fuelled these competitors
(Whitehead, 2017).
Negative: Many new competitors in the retail industry are part of UK now and this is affecting in
form of new competitors are leading to loss of market from retail brands such as M&S by
encouraging their customers to have related type of products at low prices.
Socio cultural: This factor is associated with preferences and taste of customers who are part of
society.
Positive: M & S has been able to set up a brand image in all these years that has helped them in
creation of a image for their customers that has resulted into high sales of all products that are
being launched.
Negative: Trendy chains are popping up and is affecting the reputation of M & S as they are
becoming a less updated and trendy brand because of these new entrants (Zhao, Nie, and Shao,
2017).
Technological:
This factor is having relation with use of upgraded technology by a organisation.
Positive: M & S has adopted the latest technology that is part of modern day retail business in
food stores and retail brands like self checkout. This is helping their customers in having a self
checkout experience.

Negative: Timely up-gradation requires high amount of financial investments that lead to a huge
impact on regular course of functioning of a organisation.
Legal:
Legal factors are having relation with legal laws and regulations of a organisation.
Positive: Marks and Spencer is engaged in carrying out training activities and all the updations
that are required to ensure their legal protection.
Negative: Large number of changing rules affect the functioning of organisation and also lead to
higher resistance on part of employees if changes are implemented very frequently.
Environmental:
This is a factor is having relation with the factors that are part of external environment and are
continuously affecting functioning of a business organisation (Lubis, Absah,. and Lubis, 2019).
Positive: M & S is continuous engaged in establishment of policies in form of “Plan A” and
“Plan B” that is affecting their brand image in positive way. They have also announced a 100
point plan for five year so that they are able to re engineer themselves and become a carbon
neutral organisation.
Negative: There is a lot of pressure ion rte retail industry that us to make continuous change sin
their policies of sustainable sourcing and health promotion type of businesses ( Prashar,, 2018).
From the above discussed PESTEL analysis it can be said that each factors is associated with
development of certain opportunities and threats for a business organisation.
Ansoff's matrix
It is a growth vector matrix that can be defined as a strategic tool that can be adopted by
manager of a organisation for the purpose of selecting the best suitable strategy according to
detail analysis. In relation to M & S this framework is mentioned below: