Entrepreneurial Strategy

This article discusses the importance of strategic capabilities for businesses and how it affects company capabilities. It includes a case study of Marks & Spencer company, exploring strategic models like PESTEL, SWOT, Porter's Five Force, Porter's Genetic strategy, and change management models.

Entrepreneurial Strategy

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Company Overview....................................................................................................................3
Importance of strategic capabilities for business .......................................................................3
Internal Factors which affect company capabilities...................................................................4
Change management model........................................................................................................6
Lewin change model...................................................................................................................6
Pestle Analysis of the Marks & Spencer company....................................................................8
Competitive analysis (Porter's five force )................................................................................10
CONSLUION ...............................................................................................................................11
REFERENCE.................................................................................................................................12

INTRODUCTION
Business compete with the other competitors for the customers, market shares
and making profit for them (Hao and Song., 2016). They employ tactics according to the
deliberate strategies and put them into the action is the responsibility of the companies leaders.
Strategic capacities refers to the all the company's strength which are their employees
capabilities, resources and skills which provide them a competitive advantages.
This report will cover case study of Marks and specters company which is British
multinational company and having huge expansion in the UK market and other market as well.
It will cover the strategic models like PESTEL, SWOT, Porter's Five force, Porter's Genetic
strategy and change management models to find the strategic capabilities of the M&S.
MAIN BODY
Company Overview
M&S is the major British multinational retailer company who are having huge reputation
in this industry. Their headquarter is in London, and they are selling the products like
clothing, Home products and food products. This company was listed in the London stock
exchange and it was the first company make the pre-tax profit which is around 1 billion. This
company was established in 1884 by the two partners Michael Marks and Thomas Spencer.
There are more than 80000 employees are are currently working for this company and
they are having more than 1400 location in all around the world which show their presence in
the international market.
Importance of strategic capabilities for business
A Strategic capabilities are the ability of the business to mange their resources, such as
their employees who is help to gain competitive advantages in the market, and they make the
company successful in their industry (Huikkola and Kohtamäki., 2017). The companies strategic
capabilities must focus on the business abilities to meet the demand and the needs of the
customers. Additional strategic capability of the Marks & Spencer must be unique to the
organization to prevent replication by competitors. Organizational capabilities are anything a
company does well that improves business and differentiates the business in the market.
Developing and cultivating organizational capabilities can help small business owners gain an
advantage in a competitive environment by focusing on the areas where they Excel.

Improve customers relationship- A good relation and attachment with the customers
helps to ensure the competitiveness in the markets. The relations between the company and
customers are also can capabilities of the Marks & Spencer
Competitive advantages - Strategic capabilities provide competitive advantages to the
Marks & Spencer when the company continue to make the new capabilities an developed
existing ones. It will maintain the competitive over the competitors of the M&S.
Knowledgeable workforce - The skills and knowledge of a company's workforce allow
the organization to direct those skills to achieve the business's goals. Training programs,
education assistance and effective recruiting and hiring programs are organizational capabilities
that ensure a knowledgeable workforce (Chang and Hu., 2020).
Improve customers relationship- good relationship with the customers in the market
helps Marks & Spencer company to ensure competitiveness in the market. This is also an
capability of the company to create good relationship with the customers.
Internal Factors which affect company capabilities.
Swot analysis is used to identify strength and weakness of the company. This can be
useful for the company to find their weakness and convert into the opportunities for the
company. Marks & Spencer company can use this model to take competitive advantages in
market and create strategic capabilities by improving their weakness. The Swot model has
explained how internal factors play an important technical paradigm for gaining on
advancement, keen synergy of innovative marketing and global business scenario where M&S
needs to actively work onto weaknesses, treats for developing new opportunities and work onto
utilization of strengths.
SWOT Analysis
Strength
 M&S has high goodwill among retail industry for producing high quality factors among
all products, services through which it has generated viable positio0n of technical
functional ethics among consumers (Shaikh, 2020). Brand also posses high capital
within internal management which will add to investment potentialities to generate
higher viable position services and has wide strength of dynamically working avenues
within development factors through which external competition paradigms can be
improvised.

 Employees of the Marks & Spencer company have effective skills which is marketing
this company to take comparative advantages. They get regular training for their
improvement .
 M&S has further opportunities to expand into international countries, where the brand
has not entered recently by developing strategic planning and innovative marketing
fundamentals to promote itself as higher competitive retail industry demands (Martínez,
Galván and Alam., 2017). The employees training and development also holds various
opportunities for pertaining onto wider scale customer services within online and offline
marketing concepts which will develop innovative business and also enhance goodwill
further among consumers to be one of the most fashionable retail company (Dargahi and
Zalvand, 2019). Globalization and digital marketing space has given wide opportunities
for brand to bring on expansion within new marketing segments and yield diversity
among business avenues pertaining onto new rational working parameters.
Weakness
 Customers satisfactions- they are not able to prove satisfaction to their customers
because of their return polices which need to be improved
 Supply chain- this is one of the biggest weakness f the Marks & Spencer company
where they need improvement. This company has poor scalability of their supply chain
management through the Marks & Spencer has been trying to offer global access to
their merchandise through their online stores they have been enabled to scale to their
management to deliver in the global locations.
 Company is using old technology for the production and manufacturing. They need to
improve their technology.
 M&S internal structure weakness can be assessed onto various aspects where brand is not
able to produce innovative fashionable clothings within its competitive levels where retail
industry is facing boom along with customers changing demands. The brand has less
innovation and use of old technology is also decreasing fundamental scope to gain higher
revenue from varying customers demands. Company needs to work on these weaknesses
factors for developing wider scope of marketing and strengthen its production synergy as
per competitive marketing demands within retail industry.
Opportunities

 Innovation in the companies' technology will increase their production and company
will able to take compaititive advnatges in the market wghere they are opaertaing their
busienss.
 New Segments:Fashion is an evolving business and new segments come up on a regular
basis. In Asia, there is a huge Demand for ethnic and traditional wear which currently
Marks & Spencer has been unable to capitalize on (Bahari, Leksono and Ismiyah., 2018).
This is one area which can show a lot of promise to the retailer.
 M&S has further opportunities to expand into international countries, where the brand
has not entered recently by developing strategic planning and innovative marketing
fundamentals to promote itself as higher competitive retail industry demands.
Threats
 The new external brand coming up within global scenario into retail industry with wide
companies, brands having wide rational services onto digital marketing where customers
are also looking for high innovative technology usage where they can easily shop clothes
and services. There is higher threat of rising raw materials prices and currencies
fluctuations among countries where the climate changes has also given an important
threat for company to source all raw materials for clothing. There is also threat of rising
turnover within management, due to which brand may face decreased effective
production and less goodwill among consumers market share where employees skills
play an important factor to generate higher synergy of creative efficiency.
Change management model
Lewin change model
The lewin change model is one of the most developed change model functionally
programming to bring on changes within fixed paradigms pertaining onto more rational working
progression, through which keen synergy of technical viable metrics can be developed. M&
S with dynamic changes coming onto world business scenario pertaining onto wider metrics
need to innovative further for bringing higher developed synergy of creative functional ethics
have to bring on changes onto management which will proclaim new developed marketing and
business standards. Lewin change model has 3 steps and phases which enables to bring on more
effective changes which will enable M&S to analyse changes as per requirements, keenly bring

on new technical development and yield onto new determinants through which profitably can be
doubled along with goodwill among consumers market share (Tang, 2019 Unfreezing: At this phase the focus shall be built on the factors where technology is old
into production departments, and marketing parameters where change is needed
effectively to program out major factors through which it can also be factored onto new
paradigms. Unfreezing will keenly bring on new segments where efficiency is lacking
currently at M&S, factors where technical advancement needs to develop with new
paradigms and how to functionally bring on keen synergy of innovation onto various
heights. Unfreezing will remove all technology units and paradigms where at present
company needs to invest time and more capital for bringing on further dynamic
movements. companies plan to collaborate with the Ocado retail company which has 15
percent of the online UK retail market will create opportunities for the Marks & Spencer
to exapnd their business in the onli9ne market. Freezing: At this phase management will work onto bringing new factors of change and
train all employees working within various departments to develop long term synergy of
innovation and plan onto further investment as per viable position metrics. Freezing will
develop the best rational potential steps within management and to radically improvise
various new changes for long term viability and determinants where goodwill among
consumers and revenue will be increased competitively (Desmond and Wilson,
2019).High Reorganization of the brand - Marks & Spencer company popular among
the people in UK where they are providing the quality products in the less prices which
is improving their image. The brand value of the MS& is higher, so they refer to buy
their product from their stores or do shopping. Varieties of products - This company has
varieties of the products in their psychical stores which provide their customers options
to choose best for themselves. The changes will enable to generate strong fundamental
scope for bringing on new synergy of innovation, technical development pertaining onto
wider scope within retail industry. M&S shall be able to proclaim new efficiency within
internal management, keenly use the strengths and opportunities for leveraging onto new
demands of profitable working paradigms. (Zhou, He, and Ren, 2019).
 Refreezing: The refreezing being the large phase will check that all steps and changes
developed within company where old technology is changed, innovation brought up

pertaining onto large demands are implemented properly or not. M&S refreezing phase
will keenly monitor all new steps and rational working segments where the company
aims to work with higher innovation, continuous functional ethics and generate
determinants for bringing on new rational synergy of effective business development.
Refreezing will keenly work on the long term viable metrics where company targets to be
advance with changing viable various competitive benchmarks set by brand. At this
phase leaders and marketers of M&S will also develop check on various new changes
made within business avenues pertaining onto wider rational demands among consumers
market share, gain their feedbacks and functionally be ethically responsive for keeping all
changes intact (Archer, Fuller. and Swearingen, 2019).
Pestle Analysis of the Marks & Spencer company
There are some factors within a business environment which has huge impact on the
Marks & Spencer company (Ortega And et,al., 2019). It is necessary for the leaders of the
company to understand the impotence of those factors because they can be aware about the
factors which are affecting their business and opportunities as well which will improve their
strategic Capabilities and company will able to take competitive advantages in the market where
they are operating their business.
Political factors
political factors have huge impact on the M&S. One positive aspect of the today's'
politics is the free trade agreements between the country where they do not have to pay any
taxes to the government for the import and export of the product. Marks & Spencer are getting
the benefits of that because they are Importing the products in less prices and selling it to the
customers in higher prices and it s not only benefits for them but customers also get the product
in lower prices.
Political factor has negative impact and company huge affect from the Brexit
memorandum because they were getting the quality raw material from the EU countries bout
after this memorandum they are not able to but their raw material.
Economical factors
Economic factors like demand and supplier due to the inflation in the country affect the
profitability of the company because when demand in the economy increases then they can
earn better profit but when it decreases then company earn less profit, so they also decrease

the prices. Marks & Spencer company have location in all around the world This is an
comment factor from because every country economy have different conditions in their
economy.
Social factor
Socially the Brexit memorandum saw an rise in the aggression following the voting
decisions. Attracts which are related to the race, realign were reported commonly on the
popular social media websites like Twitter and Facebook news globally exploded ion this
information (Cameron, and Green., 2019). Later, many of the reports were proven to be false
built this skill impacted how the world saw the Brexit. The referendum showed the 51 percent
voted Eu leave and 49 percent to stay additionally buying behavior of the customers change and
it also affect Marks & Spencer companies product selling.
Technological factor
Technology provides competitive advantages to the Marks & Spencer company where
but company need to change their technology because they are using the older technology at
their workplace so the others can overtakes them and take competitive advantages in the
market. New technology will help them to show their presence in the market and they will able
to gain customer satisfaction which will make them stay in the compaition. The employees
training and development also holds various opportunities for pertaining onto wider scale
customer services within online and offline marketing concepts which will develop innovative
business and also enhance goodwill further among consumers to be one of the most fashionable
retail company (Dargahi and Zalvand, 2019).Globalization and digital marketing space has given
wide opportunities for brand to bring on expansion within new marketing segments and yield
diversity among business avenues pertaining onto new rational working parameters.
Environmental factors
Environmental factors has huge impact on the company because It is necessary for the
company to give their support toward the environment ad make the sustainable product for their
customers it will increase their reputation in the market. This is also an pert of the CSR activity
which make business successful and every company have to understand their corporate social
responsibility and look for the welfare of the society and make the environment proper for the
living.
legal Factors

Over the years Marks and Spencer has been involved in multiple legal disputes. These
Legal Disputes have made it hard for the brand to hold its image at a constant stature through its
century long existence. The recent legal dispute with Frascati landlord was one such dispute. The
change in Britain’s trade laws post Brexit will be another legal factor that will affect the brand
hugely.
Competitive analysis (Porter's five force )
Porter's five Forces
It is an Holistic strategy in that took strategic decision away from the analyzing the
presence conditions This strategy focus on how Marks and Spencer can take competitive
advantage sin the market This is not only for the company to develop the strategic capability
in the market for the M&S but they can also take profitable opportunities and show their
spareness as a emerging brand (Varelas and Georgopoulos., 2017).
Threat of new entreats
Its every hard for the new entrant to take entry in the retail industry because they will
need high finance, and they can also face huge comparative force from the other brands who
have good name in the market. To overcome this threat Marks and Spencer company need to
improve their product and services, so they can block the entry to steal their place from the
market.
Bargain power of the suppliers
All most all the companies in the Retail industry buy their raw material from numerous
suppliers. Suppliers in dominant position can decrease the margins Marks And Spencer Group
Plc can earn in the market.
Bringing power of the buyers
This is very high force for the M&S company because customers have more position to
choose the other companies product because most of the products are similar but company can
attract and decease their force by creating differences in the product show they can show to
the customers that their product is more better as compare to the other brands (Wellner and
Lakotta., 2020).
Threat of Substitute
Most of the product are substitute so it has high force in the M&S company. They can
overcome from this force by being the service oriented rather than just product oriented. This

strategy will be helpful for the m&S company, and they can take competitive advantages in the
market.
Rivalry among the Existing competitors
Competition revelry has high force on the M&. There are many competitors of the M&s
such as TESCO company. IKEA and mare other discount stores. They are selling their product
in the less prices which is also putting pressure of the MS& to decrease their process as well to
strategy in the competition.
CONSLUION
As per the report has been cover case study of Marks and specters company which is
British multinational company and having huge expansion in the UK market and other market
as well. This report has been analyzed the strategic models like PESTEL, Swot which helps to
know strength and weakness of the company, Porter's Five force has been provided the
information about companies position in the market and their competitive advantages in the
market. In the end of this report has been implemented change management models to find the
strategic capabilities of the M&S.

REFERENCE
Books and journal
Hao, S. and Song, M., 2016. Technology-driven strategy and firm performance: Are strategic
capabilities missing links?. Journal of Business Research.69(2). pp.751-759.
Huikkola, T. and Kohtamäki, M., 2017. Solution providers’ strategic capabilities. Journal of
Business & Industrial Marketing.
Chang, Y. and Hu, J., 2020. Analysis on the Mode of Multinational Retail Enterprises Entering
Chinese Market—Take Walmart, Carrefour and Metro as Examples. Modern
Economy.11(01). p.17.
Martínez, A. B., Galván, R. S. and Alam, S., 2017. Financial Analysis of Retail Business
Organization: A Case of Wal-Mart Stores, Inc. Nile Journal of Business and
Economics.3(5). pp.67-89.
Bahari, H., Leksono, E. B. and Ismiyah, E., 2018. Pendekatan risk management & analisis
SWOT untuk mengantisipasi penurunan laba di Ecos Minimart Gresik. MATRIK.
Ortega, R. G. And et,al., 2019. Pestel analysis based on neutrosophic cognitive maps and
neutrosophic numbers for the sinos river basin management. Infinite Study.
Cameron, E. and Green, M., 2019. Making sense of change management: A complete guide to
the models, tools and techniques of organizational change. Kogan Page Publishers.
Varelas, S. and Georgopoulos, N., 2017. Porter’s competitive forces in the modern globalized
hospitality sector–the case of a Greek tourism destination. J Tour Res.18. pp.121-131.
Wellner, S. and Lakotta, J., 2020. Porter's Five Forces in the German railway industry. Journal
of Rail Transport Planning & Management, p.100181.