Business Strategy for Desklib - Analyzing Macro Environmental Factors, Internal and External Capabilities, and Porters Five Forces

This report analyzes the business strategy for Desklib, an online library for study material. It covers PESTLE analysis, SWOT analysis, Ansoff model, VRIO analysis, McKinsey's 7s model, and stakeholder analysis. It also explains the impact of macro environmental factors on the management, internal and external capabilities of the company, and Porters Five Forces.

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Analyse the affect of macro environmental factors on the management...............................1
Pestle analysis -......................................................................................................................1
Swot analysis - .......................................................................................................................2
Ansoff model - ......................................................................................................................3
Internal and external capabilities of company. ....................................................................4
Explain porters five forces in order to M&S. .......................................................................7
Applying the theories, concepts and models that communicate the strategic planning for the
management?..........................................................................................................................8
M4 Strategic management plan..............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
The term business is the activity which consist a exchange of monetary funds in return
of goods. The companies can be profitable and non profitable both like multinational companies
and charity groups and many others enterprises. The organisation can be differentiated on the
basis of size, income and capital invested. It can be run by single person or can be owned by
directors. It plays a huge role in trends and society as it contributes in increasing growth scale
of the company by providing job opportunity and many other ways. They also assist in
making creativity and create technological improvement. All business entity have common
goal of making profit (Ganeshan, and et., al., 2018). In this report considering company Mark
and Spencer, the company well recognised in UK it was founded in 1942 by Thomas mark
and Michael Spencer. It deals in home based grocery product , clothing and many more. The
report will cover the pestle analysis, swot, stakeholders and ansoff model. Resource based view
and vrio model or McKinsey 7's model. In part 3 it will cover porters five forces. In part 4
porters generic and bowmen models in brief.
MAIN BODY
While running a business company needs a theories to run a company in a systematic manner,
so that work can be done efficiently. The business theories makes the operations more easy
and impactful for person. The models are described in below.
Analyse the affect of macro environmental factors on the management.
Pestle analysis -
It is a framework that helps in understanding the external factors of the company. This
consist a factors that aids in improving the productivity in order to achieve an institutional
goals. The further discussed more in below.
 Political factors - This component of the theory explains the rules and governance
laws of the particular region or country. It includes taxation , policies and government
control. In order to mark and Spencer, the company is top leading company in
worldwide. The company has a huge business labour from EU but after the movement
of Brexit the company faces a issues like weak supply chain network and reduction in
man power that gives a negative impact in company.
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 Economical factors - This components includes inflation rates, foreign exchange
rate and economic growth. In extent of M&S, the country has the largest economy in
the world and also is an open economy. The monetary policy of UK are properly
controlled as the authorities has powerful funds and has successfully controlled a
minimum charge of deflation. Thus the company always provides a quality goods to
their consumers.
 social factors - this factor of framework considers a trends and taste of the users . In
relation of M&S, the company as taste and preferences changes as per the trends the
company constantly changes their designs and modify their goods and products by
understanding the taste of consumer so that they can expand their concern more.
 Technological factors - This factor considers a technology and automations that
impact the organisation. In case of M&S, the company has launched automation
transformation scheme that would able the institute to be an digital first and deliver
a diversified consumer experience.
 Legal factors - The components that includes a laws and policies that impact the
business in various aspects. In relation of M&S, the laws are changing at every
regions and they changes rapidly as per the conditions. The outlet of the trade in wide
street was getting being renovated at the time when ceiling tiles consisting the
cancer causing material, eventually this issue gives them a huge loss in business.
 Environmental factors - it consist a surrounding and social values of the company.
The considered company has launched their own green policy through this they want
to reduce the wastage that cause a bad effect on the atmosphere.
Swot analysis -
It is model which is helpful in analysing the internal components as it get to know the
strength and opportunities for the company on the other hand it help in improving the
weaknesses and threats of the company so that they can have a good competing power with
the rivals.
Strength
 The company has wide range of the
products and the brand is well
recognised in the global market.
Weaknesses
 Strong competition with other retailers
has reduce the equity market of the
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 The business serves services in
worldwide areas that increases the
brand value.
concern.
 As they are well recognised brand,
they have to save themselves from
misuse of their trade name.
Opportunity
 Development of the company websites
can create an effective brand value in
the mindset of the consumers.
 The company can establish new
market segment that can offers more
profit.
Threat
 The rivals are the big threat for a
company a s they reduce the cost of
goods that attract the customers.
 Governing policies that effect the
retail stores and their business.
Ansoff model -
It is a marketing principle that change to determine growth chance for the arrangement to
increase in longer time period. It supports the enforcement, senior manager and marketers to
develop the tactics for the future development. It covers four basic principles that are as follows:
 Market Penetration - It is a strategy utilised in the company when it has
capability to grow the equity in the current institution. It includes sales approach
in the current surroundings. M&S, uses this strategy when they are launching
improved goods in the existing market.
 Market development - In this strategy the company introduce exist product to new
market it requires a huge investment. In case of Mark and Spencer the company uses
this method when they are introducing a existing good in their new market segment.
 Product development - it concentrate on introducing new commodity in existing
market. The considered company utilise this technique to introduce their goods and
brand in their market to satisfy the needs and wants of the users.
 Diversification - This strategy explains the condition where organisation introduce
their trade name with new product in new market place. In relation of M&S, the
company requires a huge amount to invest and proper research so that they can invest at
right place.
Stakeholder analysis :
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It is a procedure of general collection and analysing qualitative details to examine whose
involvement would be taken into account when improving or executing a scheme. It can be
both internal and external both that effect on the business. This consist a model named power
interest grid which helps in understanding the role and duties of the stakeholders more
explained in below.
 High power – high interest - these bodies are the stakeholders the makes decisions
and have the biggest effect on the project success on the company. It includes CFO,
chief executive and top directors.
 High power – low interest - stakeholders of the consider company to keep in loop
due to they required to satisfy whereas they want or not. It includes employees, staff,
it managers and many more.
 Low power – high interest - stakeholders of the M&S, requires a proper details
that no leading issues are rising. These are the lower level worker and provider of
the company.
 Low power - low interest - M&S, supervisor these kind of stakeholders and do not
entertain them by communicate too much by them. This involve a local community
users of M&S.
Internal and external capabilities of company.
Vrio analysis -
it is framework that determines the internal factors and capability having institution
sustainability in long run. It assist the establishment in maximising income, company
enhancement and surety that the industry is getting a competing power. It consist a four
points which is listed in below.
 Value - It identify that the value of the resources that are valuables, as they support the
management to maximise the sense of consumer value. The individual should eventually
look into the value of the resources by which the management will accomplish
sustainable development of industry. In context to the Marks and Spencer, resources are
valuable for the management as they have to produce revenue that lead to profitability.
Hence, by utilising that capital management can decrease their threat and finance in new
opportunities to maximise their turnover.
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 Rare - The resources that could only be adapted by one management are termed as rare
resources. On the other side, the conditions when more than one management can
generate their sections that related to goods in the similar manner that lead to the
competitive rivalry. In relation to the Marks and Spencer, the valuable resource that are
created by the management are high priced. If such goods are hardly found it might be
easier for the competitors and new management to move challenger.
 imitate - Origin are difficult to re-develop, yet they are high priced for another
institution to adapt them. Its not easy to create if there secure term that are judicial
implementation such as patent and hallmark. In conception to Marks and Spencer,
management start to maintain the issues as they are advanced cost merchandise. It can be
happened if transportation of trade products and challengers that come up with the
secondary terms of the goods with down price.
 Organised - Sources are maintained to hold value only if it is backed up the procedures
structures and trends of the institution. The forces itself do not discuss any benefit for
their section that are managed the operation and the values from them. In context to the
Marks and Spencer, managerial supply chain is well-defined that such products will
gives their products to the stores and consumers. (Garcia, and et., al., 2021).
McKinsey's 7s model -
The model is an organizational instrument that assess the well being and up coming
success of a company. It consist a seven internal components of an enterprise as a mode
of examination where as a institution has the structure support to be achievable. The factors
are listed in below.
 Strategy - in this organisation improves a plan in regards to achieve a competitive
benefits. It is helpful fr the institute to compare successfully with in the market place.
M&S, adapts the varied planning to assures a sustainable business surroundings.
 Structure - It is the enterprise condition where the management is set up in an effective
manner. Institution is developed by the series of unit and firm planning that design that
how a organisation features interlink structured and ensures the firm governing.
 System - It is the institute procedure that regulate the actions of the management and
how they develop their decision-making procedure. It recognise that how the manner of
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the management is completed. M&S, concentrate on organic coffee and utilises
techniques to maintain their stock list value.
 Shared values - it is a core of structure involving benchmarking and values of the
institute that lead the management actions and workers attitudes. The management
ensure their employees engagement to satisfy the users by reducing gap between needs
and expectations.
 Skills - these includes the activity and expertise of the person that is well perform by
the person in order to M&S, they concentrate on demonstrating leadership style in
order to organised its operation as per the literacy level.
 Staff - these includes a manpower of the organisation. They required a skilled
workforce that can make a work more effective and effective . The management on the
interpersonal abilities, effectiveness, functions as according the knowledge and others
to enhance their workers.
 Style - it presents the manner in which institute actions and control by the higher level
executives. It shows that what sort of activities the organisation utilise as their sign
term. In order to M&S, they are relates to the administration and leading way on the
individuals orientated and assignment oriented formulation. It can be utilised to
determine the likely impacts of future modification in the company (Jezowski, and
et., al., 2018).
Resource based view :
It is an organisational structure that are used to examine the strategic point of the
management that can exploit to accomplish the sustainable competing advantages. The theory
was formed in 1930. it helps in examine the factors available with in the concern into
concentration with the ability of the concern in a silent mode. It is advised that the resources
that are valuable , rare, hard to imitate, and non substitutable with suitable condition of
involving to the longer term of achievement. Such sort of the strategic resources can give the
relation to improve concern ability that might tend to maintain their aspects. M&S, uses this
strategy to analyse the planning that can give competing advantage and it have two factors
that are tangible and intangible assets.
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 Tangible assets - this kind of structure includes a things that can be touch and feel
like land, office property and many more. The company M&S, utilise the product that
are of good quality and they always try to produce that goods that can not be copied.
 Intangible assets - Such resources are maintained by a enterprise themselves and
such have no physical occurrence. It involves goodwill, patents and many others. The
company has good image in the market and they are counted in top competitor
companies in world wide.
Explain porters five forces in order to M&S.
Porters five forces – It is easy but powerful instrument that company can use to determine
the main sources of completion in the industry. Porters five is the structure of measuring the
challenge in the business and to maintain that how the management are performing at diverse
section of the profit.
 Competitive rivalry - this is the first force of the model it refers to the competition
and their capability to reduce with in the enterprise. In case of M&S, huge number of
competitors along with the amount of equivalent products and services company
offers. The lesser the ability of a institution.
 Threats of new entry - a company also get impact by the new entry in the market
place. It requires a less cost for rivals to enter in a market and be an effective
competitors. In relation of M&S, this pressure in retail brings innovation new methods
of creating things and puts stress on the company by reducing the cost and giving
new offers in the market (Kowalska-Pyzalska, and et., al., 2020).
 Power of supplier - the another component of the of the model is ability of the
supplier, it is effected by the amount of providers of product and goods and how
good their inputs are and how much it would value a institution to switch to another
provider. As well as the supplier has more power and can drive up input values and
push for another benefits in business. In case of M&S has more power than the
providers as they can bargain with them in a effective manner.
 Power of buyers - the ability of the purchaser have to drive cost lower level of
power is one of the five forces. It is effectual by how much buyers or users or
consumers a company has how significant each consumers and their preferences of
buying products. In case of M&S, the company profitability is in long run and the
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power of the consumers is high their ability as they have gives offers and reduce the
cost.
 Threats of substitutes - the last and fifth force of the model on alternatives.
Substitutes wares and offers that can be utilised in a place of the branded goods or
services which imposes a threat. Institutes that produce goods or services for which
there are no close alternative will have a ability to maximise a cost of the goods. In
extent of M&S, the company constantly keeps their products improving and maintain
quality of the goods so that consumer can not move to other substitute (Marzi, S., and et.,
al., 2019).
Applying the theories, concepts and models that communicate the strategic planning for the
management?
Porters generic model - This model is used by the concern in command to measure the best
scheme within the arrangement.
Cost leadership- This plan of action concentrate on the conformity the low evaluation of
the merchandise or employment which has the high perimeter with selling at the median
marketplace. This scheme is used to impress buyers. It can be adoptive by the M&S in order to
attract users and also to addition they sale of the enterprise (Nunes, B.C., and et., al., 2021.).
Focus strategy- The management that utilise the focus strategy that will focuses on the
niche market and also by knowing the mechanics of that certain field of the marketplace and the
requirements of the consumers. The management concentrates on the low cost and as well as
well particular goods. The New London cafe can adapt such tactics by presenting the new
techniques in their field of management so that the consumers are influenced with lower value
and unique goods or facilities in their management.
Differentiation strategy- The main motive of this scheme is to make the ware unique
from its rival. This distinction wholly count on the quality of the manufacture. The M&S
requires to follow this scheme in magnitude to addition its income however to be assorted in the
business (Prévot, , 2020.).
Bowman's strategy clock -
It is a comprehensive and easy to utilise as it offers options for positioning with in a
market based as around to the value and price. It is commonly that are utilised in a concurrence
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with instruments like the ansoff matrix that and can be seen as an alternative or expansion to
porters generics. It consist a different factors that are listed in below.
 Low price and low value added - this policy concentrate on the lower cost with
lower value added goods and facilities. The purchaser get very less worth if the
management adapts such methods. M&S, can execute this method in regards to attract
buyers.
 Low price - the company can adopt this to very little value if the concern
implements this method. M&S, can execute this method in command to encourage
the buyers with the reasonable cost.
 Hybrid - This is an efficient tactics as an enterprise management effectively articular
added value with providing their products at the consistent quality on daily basis.
M&S, executes to attract the users attention of its users by giving them high
discount and quality goods (Oztekin, 2018).
 Differentiation - the fundamental aim of this tactics is to offers consumers with
higher proposed stage. It boost the brand awareness between the users. The M&S, can
execute such methods in regards to create unique products so that they can have
varied rivals and it will influence consumers for the institute.
 Loss of market share - This way includes the goods with lower sensed amount
but disparity high costing. For M&S, it cannot be an effective tactics as it can face
issues and have a big loss in market.
 Monopoly pricing - in this firm in the market place that offers the products or
facilities. The M&S, cannot implement this way as it is not only one enterprise and
it will have an impact on their sales if the institution executes such methods.
M4 Strategic management plan
 Summary - M&S can develop a new product such as organic ready to eat food by
keeping health in mind, after covid 19. the prefrences has modifies the mind set of
the users and the buying and consuming the healthy food items. This influence
users (Sanito, and et., al., 2020).
 Vision - the company motives to attract consumers with adapting the various plans
so that it could reach to the rising of the management.
 Mission- To influence the consumers by supplying the organic foods.
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 Objective - The main verifiable of the concern undertaking is to furnish the best choice
of commodity and work in order t maximise earnings (.WAHUA, 2020).
 Strategy - the company can implement the goods improvement strategy in order to
Impress consumers and also it can maximise more revenue through such planning.
 Tactics - the marketing mix of the new goods that will be the new goods that are
presented in the organic food ready to eat. The costing will be lower with the suitble
quality. The place is the active customised and the publicity can be through the advertise
and message the discounts.
 Evaluations - The business arrangement can measure its scheme finished standard in
order to accomplish non stop betterment its concern endeavour (Widodo, 2019).
CONCLUSION
From the above report it is concluded that an organisation need to hold more knowledge
about the marketplace and their challengers in terms to make it more efficient tactics. In this
condition the analysis of business environment is very assisting for the company to examine
those factors which can effect their executions in a progressive way. By using marketing
theories the institute can find many of opportunity and valuable components. It makes the
business smooth functioning and effective.
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