Global Business Strategy: A Strategic Audit and Analysis of Marks & Spencer

This report discusses the importance of global business strategy and its planning and development for efficient performance in the global market. It includes a strategic audit and analysis of Marks & Spencer, a British multinational retailing organisation. The report covers various strategic actions, strategic audit and analysis of strategic actions that are taken by the organisation. Along with that reflection on management report and recommendations are explained.

Global business
strategy

Contents
Executive summary:........................................................................................................................3
INTRODUCTION...........................................................................................................................5
TASK...............................................................................................................................................5
Strategic audit..............................................................................................................................5
Justification of strategic actions...................................................................................................6
Reflection...................................................................................................................................11
Recommendations......................................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

Executive summary:
Global business strategy is considered as the planning and developing business strategic actions
that taken by organisation to perform efficiently in global market place. It is important for
business to analyse the different situation than develop effective strategies that lead overall
operations in right direction and facilitates to attain determined goals and objectives. Strategic
management is defined as the management of business resources in order to accomplish business
goals on time with efficiency. It includes establishing business objectives, analyse competitive
environment, evaluate strategies as well as ensure that management is rolled out defined
strategies across the organisation. In this report Marks & Spencer is taken into consideration.
Last 3 years organisation faces various issues and problems due to the economic conditions and
pandemic that affected overall business performance and efficiency. To deal with these issues
and maintaining business performance it is important to implement effective strategic actions in
business operations that lead business towards growth and development. Strategic actions must
be perspective, future-oriented and decisions are taken on the bases of evidence that lead
business operations and employee efforts in right direction (Anokhina, Maksimov, and Seredina,,
2019). It is important for the Marks & Spencer to implement principles of strategic management
that helps business to execute strategies in appropriate manner. Organisation need to implement
various strategic management tools and methods that help it to develop effective strategies to
gain competitive advantages. Along with that Marks & Spencer need to analyse organisational
conditions than develop effective business strategy that enable business to attain determined
goals and objectives on time.
As there are various business strategies such as cost leadership strategy, differentiation
strategies, focused strategy that help business to attain higher market share and customers. In
current competitive business environment, it is important for the business to analyse the
environmental conditions and scan it properly before taking strategic decisions that differentiate
organisation from other competitors. Organisational need to access internal and external business
environment that enable business to future goals, targets as well help to develop strategies to
attain these targets in efficient way.

INTRODUCTION
Global business strategy is defined as the strategy that is developed by the organisation for
expand business in international market place. Development of effective strategies helps business
to maintain global reach and attain the objective of higher sales and profitability. Strategy
consists clear set of plans, actions and goals as well as methods to achieve these objectives in
best possible manner on time with efficiency and effectiveness. In this report chosen organisation
is Marks & Spencer which is British multinational retaining organisation headquarter situated in
London, England, UK. Organisation is established in the year of 1884 by Michael Marks and
Thomas Spencer. Marks & Spencer deals in clothing, home and food products. Organisation
could not perform as successfully as planned over 3 years. This report covers various strategic
actions, strategic audit and analysis of strategic actions that are taken by the organisation. Along
with that reflection on management report and recommendations are explained.
TASK
Strategic audit
Strategic audit is defined as an objective review as well as evaluation of strategic plan in order to
meet determined future objective in best possible manner. Strategic audit is conducted by the
senior leaders and key stakeholders who have all knowledge and understanding of organisational
strategic objectives and actions that are implemented to achieve them in determined time frame.
Evaluating organisational resources and competencies is considered as the important part of
business strategy. As external environment of business consists opportunities as well as threats
that impact business performance so, it is important for business to ensure that resources and
capabilities are placed at right place so they can be utilised at certain situation. Marks & Spencer
conducts various stages to complete its strategic audit such as resource audit in which business
identifies its current and required resources (Barney, 2020). Then conduct value chain analysis to
analyse primary and secondary activities that helps to attain determined objectives. After that
business conducts core competencies analysis, performance analysis, portfolio analysis and swot
analysis to access that its strategies are implemented in appropriate manner. Revenue of Marks &
Spencer in last three years 2019, 2020, 2021 are continuously 13,623, 12,945 and 11,978 million
dollar that is declining continuously. As the pandemic of Covid-19 organisational sales and
performance is affected negatively because customers are not preferring to purchase high priced

cloths and other products. Organisation uses e-commerce and online shopping that somehow
help Marks & Spencer to maintain sales level. As respected organisation concentrates on
providing high quality and designer products to its customers so it charges higher price for them
that impacts overall sales of business in past 3 years. Furthermore, organisation conducts various
marketing campaigns to spread awareness of customers regarding organisational products and
services that plays important role in maintain business situation or overcome the situation in
appropriate manner.
Justification of strategic actions
It is important for the organisation to take effective and efficient strategic actions that lead
business towards the direction of attaining determined goals and objectives. There are various
factors are identified by the Marks & Spencer before developing strategies. Respective
organisation ensures the implementation of strategic management approach that helps business to
establish goals, process and objectives with the objective of enhancing competitiveness of
business among all competitors (Bryson, and George, 2020). It enables business to manage staff
and resources at all hierarchical level of organisation to accomplish determined goals on time.
Some strategic actions that are taken by the Marks & Spencer to improve business overall
performance and efficiency are explained below:
Strategic management principles: Marks & Spencer implements organisational various
strategic management principles in business operations that helps business to perform defined
operations in appropriate manner and lead business towards growth and success. Some principles
that are executed by the organisation are explained below:
 Focus on the most important: Establishing priorities is considered as the most important
stage in attaining business strategic objectives on time. Marks & Spencer priorities all
work and communicate them all employees that help business to achieve its goals with
greater effectiveness.
 Leverage strengths: It is important for the organisation to analyse all strengths and
competitiveness than develop policies accordingly that lead business towards growth and
success (Buckley, 2018). Marks & Spencer assess all capabilities and strengthen factors
that help it to attain various market opportunities.
 Communication: Marks & Spencer ensures effective communication at all level of
organisation and include employees in decisions that encourage them because they feel

that they are the important part of process and success. Organisation need to keep
employees informed and invite them to comment and question that make them feel that
strategic plans are beneficial for all.
 Remain flexible: As the approach of strategic management is continuous and dynamic
process so it is important for Marks & Spencer to become flexible to make adjustment in
business strategies according to competitors, customers and economic conditions.
Implementation of all these principles of strategic management helps business to run its
strategies in appropriate manner that lead business operations in right direction to attain
determined goals and objectives. Through adopting this strategic action of implementing
strategic management principles business can run execute its strategies properly and leverage its
strengths to attain business objectives (Cescon, Costantini, and Grassetti2019). These principles
facilitate business to priorities its actions and perform them accordingly to attain various market
opportunities.
Strategic management tools and models: Strategic management tool and methods are defined
the techniques that are undertake by the organisation to analyse that factors that help in
developing business strategies. Marks & Spencer uses it as the strategic action that help business
to create and implement effective and suitable strategies that enable business to accomplish its
defined goals and objectives. Some strategic management tools are mentioned below:
Swot analysis: SWOT analysis is defined as the strategic framework that is used by the
organisation to analyse determined all internal strengths, weaknesses and external opportunities
and threats. All these factors are used by Marks & Spencer to develop effective strategic
planning that led business towards growth and success. Factors of swot analysis in the context of
Marks & Spencer are explained below:
 Strengths: Strengths are the internal capabilities of business that provides competitive
advantages to organisation over others. Marks & Spencer is the multinational
organisation that has number of online and offline store that enhances its market share
and customer base. It deals in variety of products that enhances organisational customers.
Marks & Spencer is the famous designer brand in which large number of famous
designers are provides their clothing that differentiate organisation from others (Elbanna,
Al Katheeri, and Colak, 2020). Respected organisation has strong reputation in market
because it provides quality products to its customers in market.

 Weaknesses: Weakness are the internal in capabilities that impact organisational working
and performance. Marks & Spencer relies on manual operations that creates problems for
it because it is costly and time-consuming process. Organisational sales is declining due
to the inefficient supply chain system as well as unavailability of products. It enables
business to meet market demand that impacts on business image in current market place.
 Opportunities: Marks & Spencer has global expansion and it have its number of stores in
various countries that will help business to attain higher market share and customer base.
Organisation has various online store and it adopted e-commerce that enable it to provide
products to customers as per their convenience. Marks & Spencer has effective customer
segmentation strategies and policies that will help business to target potential customers
and retain them with organisation.
 Threats: There is intense competition in the retailing sector across the UK. Major
competitors of Marks & Spencer are Tesco, ASDA, Morrisons and other that impacts on
overall functionality and performance of business. It become important for the
organisation to analyse the actions and strategies of competitors than develop strategies
accordingly to attain goals and objectives.
Analysation business internal and external capabilities and in capabilities enables business to
develop strategic planning accordingly. Through assessing these aspects business come to know
areas of improvement that help business to enhance overall competitiveness (Georgiev, 2017). It
facilitates Marks & Spencer understand threats that can impact business performance and
develop effective planning that enable to overcome these threats in efficient manner that lead
business towards growth and success.
PESTLE analysis:
Political factors: Free trade policies provide benefits to the Marks & Spencer because it
run almost 1500 plus overseas stores in different countries on the other hand, Brexit impacts
overall performance and efficiency of organisation. It may lead business towards higher
production cost that enhances prices of organisational products that causes losing customer.
Along with that, taxation and other aspects need to be considered by organisation in planning and
strategy formulation.
Economic factors: Economic factors such as customers purchasing power, income and
age distribution impact on business performance and efficiency. Prices of product is the biggest

factor in retailing industry, but in last few decades budget retailing stores are opened in UK that
steal market share from Marks & Spencer. It is important for organisation to analyse economic
growth rate, exchange rates and others than take decisions accordingly.
Social factors: Social factors are related to the cultural, demographic and trends of
society. Consumer behaviour and social norms are the factors that need to be considered by
Marks & Spencer in decision-making process.
Technological factors: In current business environment, retailing stores changing and
adopting latest technologies in business operations. Marks & Spencer introduced the self-
checkout stores aa well as planning to use artificial intelligence based on checkout in future
(Ioannis, and Belias, 2020). Along with that Marks & Spencer uses e-commerce that is effective
decision in UK and enhances organisational sales and profitability.
Legal factors: There are various legal legislations such as employment laws, safety and
security laws and others that need to be considered by organisation in planning. Marks &
Spencer has included in various disputes that impacted negatively on organisational image and
reputation.
Environmental factors: Marks & Spencer is hugely concerned about the environmental
affects that brand leaves. Organisation also promotes the concepts of sustainability through
adopting waste management and corporate social responsibility concepts in production process.
Marks & Spencer emphasis on producing environment friendly products that maintains
organisational differentiates image.
Though adopting these strategic management tool Marks & Spencer analyse the factors of
internal and external business environment that help business to develop effective strategies that
provides competitive advantages over other competitors. This strategic action of business leads it
towards growth and development.
Analysation of business strategies: Business strategy is defined as the course of action that
includes set of decisions that provides direction to business to attain determined goals and
objectives in efficient manner. It is the combination of competitive moves and actions that are
used by business to attract customers, strengthen business performance and determined that hoe
business operations should be carried to reach desired outcomes (Lasserre, 2017). It is developed
by the top management of organisation to exploit beneficial opportunities and meet potential
threats. Marks & Spencer take this strategic action that help business to attain develop effective

business strategy that lead business towards growth and objective. Marks & Spencer develops
strategies for different level of organisation that are mentioned below:
Corporate level: Corporate level strategies are developed by the top management of
organisation. in this strategy, organisational vision, mission statements are included that affect
long-term performance of business. These strategies guide Marks & Spencer to take decisions
regarding business growth, diversification and investment.
Business level: These strategies are corporates into corporate vision but concentrated on specific
business. Vision and missions are turned into strategies that determines how business operations
are performed in specific market place. It is developed by the general manager of organisation.
Business strategy is the blue print for overall organisation and lead it in right direction to attain
determined goals and objectives (Lynch, 2018). There are various business strategies that need to
be considered by the Marks & Spencer for gaining competitive advantages in current business
environment. These strategies are explained below:
 Cost-leadership strategy: In cost leadership strategy, organisation offer its products and
services at comparatively lower price with compromising quality. Lower prices attract
larger number of customers and enhances organisational profitability ratio. To apply this
strategy, business need to invest in efficient logistics and optimum utilisation of
resources. It facilitates business to increase profits through reducing cost, while charging
industry average price and increasing market share through charging lower price of
products than other competitors.
 Differentiation: Differentiation strategy is related to offering unique features and quality
as well as exclusive products to customers that attract them towards organisational
offering than the products of other competitors. It requires effective research and
development, innovation and ability to serve high quality products (Makadok, Burton,
and Barney, 2018). Effective marketing plays important role because it spread awareness
regarding benefits of unique products. It is important for the organisation to adopt
flexible approach that enables it to adopt changes quickly.
 Focus strategy: In this strategy, business concentrates on specific niche market to offer
their products and services. It includes cost focus and differentiation focus strategies. In
cost focus strategy, organisation offer products and services in niche market at lowest

prices on the other hand in differentiation focus strategy provide unique featured products
to specific niche market.
Marks & Spencer need to adopt differentiation strategy because in current environment customer
are quality and features oriented instead of price conscious. This strategy helps business to attract
large number of customers through provide them innovative and differentiated products and
services. It maintains differentiated image of business than other competitors. Through analysing
all business strategies, business can take effective decisions regarding selecting effective
strategy.
Functional level: Functional level strategies are developed to perform operations of different
functional level departments such as marketing, HR, finance and others with efficiency and
effectiveness. It is developed by the first line manager of organisation (Rascão, 2020). It enables
Marks & Spencer to run its functional operations in appropriate manner that lead business
towards growth and success.
Marks & Spencer analyse all business strategies in efficient manner and adopt the best one that
helps business to attain determined goals and objectives in best possible manner. This strategic
action of business enables it to perform efficiently. Respective organisation adopts differentiation
business strategy that maintains organisational differentiated positioning in market over other
competitors.
Reflection
In the process of completing this management report, I have learned various skills and
competencies such as communication skill, decision-making skill, problem solving skills, time
management and adoptability that helps me to attain my personal and professional goals and
objectives with efficiency and effectiveness. Throughout the management project, I have gained
knowledge regarding the management concepts, tools and models that enhances my capability to
manage critical situation and perform better to attain determined outcome on time. Along with
that, I have gained knowledge and understanding of organisational internal and external
environment factors and their impact on business performance and activities (Schilling, and
Shankar, 2019). There are various issues and problem are raised during the project that helped
me to enhance the capability of analysing the situation and take decisions accordingly that lead
all efforts in right direction. I prefer various online and offline sources to gain knowledge

regarding the management topics that enhances my in-depth understanding and research skill. It
also helped me in my academic work and perform better in examinations.
I have managed all activities as per determined time that help me to complete the assignment
before deadline with efficiency and effectiveness. All these skills and competencies will help met
my future to attain professional goals properly. Furthermore, I have understood concept and
implementation of different business strategy that will help me to perform better in corporate
world and take efficient decisions that lead business towards success and development. I have
learned about the different strategic actions that are taken by organisation to perform their
determined operations in appropriate manner (Siegel, and Leih, 2018). My teachers and
colleagues also supported me during the project that enhances team sprit that led my actions
towards right direction.
Recommendations
There are various issues and problems are faced by the Marks & Spencer that impacts its overall
performance and functioning. It is important for business to concentrate of its strategic
management policies that help it to manage all business operations in efficient manner and lead
business towards growth and development. Some recommendations are explained below:
 It is recommended Marks & Spencer to evaluate the strategic options in efficient manner
than selects the most suitable one that matches organisational priorities. It is suggested to
organisation to evaluate different challenges and opportunities than develop effective
strategies that helps to attain competitive advantaged and fulfil organisational goals and
objectives.
 It is suggested Marks & Spencer to address all strategic issues in order to avoid turning
business strategic planning into tactical working sessions. It is important for organisation
to develop strategic planning to overcome and conceptualise the issues that impact on
organisational performance and efficiency.
 It is advised Marks & Spencer to concentrate on growth opportunities through creating
effective and efficient strategic planning. Organisation should take potential decisions
regarding how to best pursue the opportunities that helps business to maintain
differentiate image in market than other competitors (Tonelli, and Cristoni, 2018).
 It is recommended Marks & Spencer to analyse and assess internal as well as external
business environment factors than develop strategies accordingly that help business to

handle critical situations with efficiency. Organisation should produce strategic plan that
consists all determined goals, mission, challenges and strategies to attain these goals and
overcome challenges. Organisational need to align management with strategy as well as
ensure that strategies are properly communicated to the all department of organisation so
employees can perform their operations accordingly.
 Marks & Spencer need to monitor the actions and performance of all departments to
ensure that are attaining their determined goals and objective in efficient manner.
Develop the measure of success during the planning process that help business to attain
determined goals and objectives with greater efficiency and effectiveness.
 It is suggested Marks & Spencer to includes organisational stakeholder in planning and
strategy formulation process (Voinea, and Van Kranenburg, 2017). It enables business to
gain potential ideas, views that enhances overall efficiency of planning and enhance their
morale to contribute in business success.
 Marks & Spencer should analyse all business strategies than take decision to adopt the
best one that help organisation to attain determined goals and objectives. It suggested that
differentiation strategies in appropriate for business through which business provide
better quality and feature products to customers that retain them with organisation for
longer period of time.
CONCLUSION
As per the above report, it can be concluded that it is important for the business to develop
effective strategies because it provides guidance to perform determined actions in best possible
manner. Strategic management helps business to manage all its activities properly and coordinate
actions to accomplish goals and objectives on time. To perform business operations at global
level, business need to analyse internal and external business environment factors that helps
business to develop planning and strategies accordingly. Effective strategies provide competitive
advantages to business and enable business to run operation in efficient manner. It is concluded
that reflection helps an individual to express their feeling, experiences and learning to others in
understandable manner.

REFERENCES
Books and Journals
Anokhina, M.E., Maksimov, M.I. and Seredina, N.S., 2019. A guide to contemporary strategic
analysis.
Barney, J.B., 2020. Measuring firm performance in a way that is consistent with strategic
management theory. Academy of Management Discoveries, 6(1), pp.5-7.
Bryson, J. and George, B., 2020. Strategic management in public administration. In Oxford
Research Encyclopedia of Politics.
Buckley, P.J., 2018. How theory can inform strategic management education and
learning. Academy of Management Learning & Education, 17(3), pp.339-358.
Cescon, F., Costantini, A. and Grassetti, L., 2019. Strategic choices and strategic management
accounting in large manufacturing firms. Journal of Management and
Governance, 23(3), pp.605-636.
Elbanna, S., Al Katheeri, B. and Colak, M., 2020. The harder firms practice strategic
management, the better they are. Strategic Change, 29(5), pp.561-569.
Georgiev, M., 2017. The Role of the Balanced Scorecard as a tool of strategic management and
control. Journal of Innovations and Sustainability, 3(2), pp.31-63.
Ioannis, R. and Belias, D., 2020. Combining strategic management with knowledge
management: Trends and international perspectives. International Review of
Management and Marketing, 10(3), p.39.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Lynch, R., 2018. Strategic management. Pearson UK.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management. Strategic Management Journal, 39(6), pp.1530-1545.
Rascão, J.P., 2020. Strategic Management and Entrepreneurship. International Journal of
Strategic Decision Sciences (IJSDS), 11(1), pp.35-55.
Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Siegel, D.S. and Leih, S., 2018. Strategic management theory and universities: An overview of
the Special Issue. Strategic Organization, 16(1), pp.6-11.
Tonelli, M. and Cristoni, N., 2018. Strategic management and the circular economy. Routledge.

Voinea, C.L. and Van Kranenburg, H., 2017. Nonmarket strategic management. Routledge.