Global Strategic Management: Analysis, Recommendations, and Contemporary Issues

This report provides an analysis of the existing strategy used by Marks and Spencer in global strategic management, along with recommendations for making the company more successful in the current market. It also discusses contemporary strategic issues and evaluates them using Porter's five forces model.

GLOBAL STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Explaining the Existing strategy used by the company by analysing its internal and external...3
environment also Stating its pros and cons..................................................................................3
Recommendation for the strategies and plans that make the company more successful in the. .6
market place in the current environment.....................................................................................6
Contemporary strategic issues.....................................................................................................8
Recommendations......................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES................................................................................................................................1

INTRODUCTION
Global strategy is mainly defining about the strategy which helps in expanding the
company into global market (Benzaghta, and et.al., 2021). Global strategic management is
mainly defining about the achieving the competitive advantage for the businesses by
establishing the business into global locations for attracting large target market. With creating
the global strategy mainly helps in diversifying the business risk and attaining its profits. The
strategic management at the global level mainly aims in specifying and developing the strategy
which helps in ever-increasing the sales at the global level by including the standardisation.
Marks and Spencer, the company is mainly serving by establishing its large tires including its
services and products mainly ranging from the food, clothing, beauty, home appliances. It
mainly recognised as the multinational retailer for Selling the wide range of products for
attracting and maintaining the global target market. This report provide details about examining
the existing strategy used by the company by understanding the internal and external
environment. Further critically analysing the improvements for recommending the changes.
Lastly critically analysing and evaluating the different issues with applying the porter five
forces and blue ocean models.
MAIN BODY
Explaining the Existing strategy used by the company by analysing its internal and external
environment also Stating its pros and cons
SWOT analysis
Marks and Spencer is using SWOT analysis for its internal environment so its market
development strategy can be applied properly with full efficiency and effectively. This company
will use its internal strength and opportunities to convert its strategy into action for fulfilling all
the needs or market development for earning huge profits.
Strengths
By establishing the good brand image helps in
attaining the competitive advantage.
With adopting the innovation helps in
Weakness
The poor financial performance of the
company hinders in achieving more profits
(Abdullah, and et.al., 2022).

attracting large number of target audience for
purchasing the new products with the new
ideas and Working with the creative spirit
(Singh, and et.al., 2019).
Frequently changing the products results in
loss of the company and decreases profits.
With only relying on the UK markets hinders
in targetting and retaining the loyal consumers
for increasing the sale of products.
opportunities
By investing and entering into the more
emerging markets helps in grasping the large
market shares and globally expanding into
growing economy.
Boosting the online presence with adopting
new digital technologies.
Threats
Highly competitive markets hinders in
achieving profits and aid in reducing the loyal
consumers.
The rule and regulations established by the
government while operating into wide global
market hinders in attaining profits and earning
more revenues.
The changing trends and preference of the
consumer mainly aid in changing and reducing
the profits by ever-increasing the cost if the
company.
PESTEL analysis
Marks and Spencer is using PESTEL analysis for determining its external environment
before implementing the strategies of marketing so that each pros and cons can be find out for
executing the strategies. This analysis helps in evaluating all the external environmental factors
which affects the business environment and which has to be forecasted for executing all the
future strategies. Political factor: This are the factors which affects the marketing strategies of the
companies and has to be consider carefully before implementing the strategies in by the
companies. These are the factors which is the impact of the Government like laws,
taxation policy, monetary policies, fiscal policies etc which affects the working of the
market and business environment of the companies dealing in international market
(Barnish, and et.al., 2018). Marks and Spencer planning for market development

strategies and all the political factors are taken into consideration before implementing it.
If the taxation policies are in favourable of this company then it can expand and develop
its market in that country and vice versa. Economic factor: The economic conditions have huge effect on the working of the
company worldwide. Marks and Spencer has to check the economic environment and its
affects in future on the plan and the strategies on the business environment of the
company (Keeler, and et.al., 2019). The economic factors are economic growth, inflation
rates, unemployment rates, consumers spending any change in any factor will affect the
demand of the products of the company. Social factor: There are various social factors which affects the company’s environment
like demographic peoples in the market like different types and cultural peoples,
religions, different taste and preferences of the consumers, size of family, education level
etc affects the buying towards the products by the consumers (Truelove, and et.al., 2021).
The strategy which this company have to execute will first have to check various factors
and choices of the buyer and then execute those strategy for achieving goals smoothly. Technological factor: Increasing use of latest technology and innovation in the field of
research and development has increase huge competition in the market (Qiu, 2020).
Marks and Spencer have to develop time to time latest technology of producing the goods
with low cost that it can remain competitive in the future market. Increasing innovation
or technologies the rivals companies are producing the same product and services with
more featured and innovative products with same price and low cost which is a danger
for the company to survive in the future. All this factors will have to be consider before
implementing the strategies. Environmental factor: Environmental and sustainable growth is compulsion of every
company to grow in future. The companies according to the environmental protection act
will have to produce the products which are safe for the health of the company and raw
materials in production of this products does not affect the environment like saving water,
electricity, cutting down trees etc (Li, and et.al., 2020). The market development
strategies of this company should be according to the need of the environment and should
according to the the sustainable growth in the future.

 Legal factor: Legal factors are the laws regarding to the government which has to be
followed for operating the company in the market. Marks and Spencer has international
operation so it has to check its each market legal laws related to environment, labour
protection, health and safety law, trading laws etc (Voronkov, S.S., 2018). This company
has to evaluate the each market before implementing its strategies so that precautions can
be taken against each action that can be taken by the company for achieving its future
goals in the global world.
Marks and Spencer will have to check both its internal and external environment before
executing its strategies and plan its strategies and action according to the prevailing market
condition after deciding all the pros and cons of the market then can affect the working or
business environment of the firm.
Recommendation for the strategies and plans that make the company more successful in the
market place in the current environment
The current strategy of Marks and Spencer is Market development strategy there are
various ways through which company can speed up its goal of market development. Firstly, it is
recommended for the company to build a sales funnel. This will help the company to make its
business automate. Doping this will make the company to increase its scale of production and
experience growth in effective and efficient manner. It is recommended for the company to try
various sales funnel before deciding the one that suits best to the needs of the company.
It is recommended to the company to make use of its customer management system.
Manual tracking of transactions is not advisable to the company as it consumes a lot of time and
efforts of the company (15 Strategies for Quickly Expanding Your Business, 2022). The aim of
the company is to make its scale higher at a higher phase so the suggestion keeping in view this
aim of the company is to use a system that manages its customers. Some of the systems that can
help company are QuickBooks for the purpose of accounting. Sale and marketing function by the
company can be done effectively by using the system named as Infusion Soft.
Another recommendation for the company to expand their market reach is researching its
competitors closely. For the purpose of researching the company can make use of software also

to ease the task. Keeping a close track over the competitors of the company will allow the
company to know about the upcoming strategies of the company. With prior information of the
strategy of the company it will be easy for the company to make their moves in the market
accordingly. Companies with good market research can rule the entire industry at a flouring
ways.
Other recommendation for the company is to create a program that increases the loyalty
of the customers. For good market standing it is necessary for company to have loyal customers.
Loyalty programs will help the company to increase its sales at an increasing rate. Company can
retain its customers and attract various new or potential customers by doing so. Identification of
opportunities is next recommendation for Marks and Spencer (AYBEK, 2020). This can be done
by company by analysing its demographics. Better understanding of demographics will enable
the company to know the opportunities that can be grabbed by the company.
Next way following which the market can be developed by the company is through
building up of an email list. Email list is a list of the emails that customers send to the company.
Email list is the list of all the customers of the company that wants to stay updated about the
recent offers or discounts that company comes up with. Building up of email list is essential for
the company to get the leads of the company’s prospect sales. Also company gets the feedback
from its customers. Addressing of these feedbacks will increase the level of satisfaction in
customers.
Furthermore, Mark and Spencer can use new technologies and upgraded systems with the
help of Artificial intelligence to make its products more advanced and attractive so that the sales
can be increased with low cost of productions to remain competitive in the market. Rapid
changes in the taste and preferences of the customers has made it compulsory for every company
to remain competitive in the present world. The company should buy new technologies with its
research team so that the products can be produced with more advanced features and with more
different design and pattern to attract the customers.
This company also can plan its strategy according to the long term goals so that the firm can
earn profits in the long run by planning for the future. The market development planning can be
of diversification and expansion of products in the market for long run so that new customers can
be attracted and sales and revenue can be increased. Satisfying the existing customers and
involving in advertisements for increasing the customers like social media advertisements, using

television, websites and blog post etc so that more new customers will be influenced to by the
products of this company. Mark and Spencer will have to provide or improve its customer
service like after sale services so that the consumers does not give negative feedbacks to others
and will not hesitate in buying the products and services of this company.
Researching the market properly with experts team is necessary before executing the
strategies to know all the internal and external environment and that can affects the business
performances of the company. Mark and Spencer should gather each and every information from
all the market in which it has its operation and measure all its pros and cons like which
technique, strategy and plan should be suitable to increase the sale and revenue of the company
in long run with its expert team like managers, CEO which has more knowledge and
experiences. Estimation for the external environment will be accurate if proper information and
data are gather and measure accurately.
Lastly, This company should carefully invest in those areas and market which has increasing
demand and developed so that loss of money and funds can be secured. The investments should
result in good debt equity ratio so that profits will be more and cost of production will be less.
Contemporary strategic issues
Presently the companies are facing contemporary issues due to globalisation the
competition in the world has increased and the companies which are not having essential
techniques and funds or manpower is facing huge problems in survival. Mark and Spencer are
also facing problems in recruiting talented employees with skilled knowledge which is necessary
in the present competitive world. For achieving the strategic goals they must be communicated to
all members in the society and company so that they feel motivated and work with clear
instructions but due to negligence of managers and leaders the coordination and cooperation in
the company cannot be maintained due to various cultural and behaviour diversity. The most
common issue faced by all the people in the management is the uncertainty of future due this the
prediction and forecasting process for the companies becomes difficult. The strategies are made
according to the individual assumptions about the future they cannot be 100% accurate due to
which the chances of losses always remain there.
Mark and Spencer is using various theories for reducing the affects of contemporary issues
in the market which are becoming hurdles in the process of achieving the goals.

Porter’s five forces Competitive rivalry: This force used by the Mark and Spencer to identify all the
competitive forces prevailing in the market. Due to globalisation and international market
the competition is increasing on a rapid growth so this company has to check all its
rivalry strategies and techniques carefully and planned its strategies and techniques for
giving tough competition. If the rivals are using strategy that will have less price then the
customers will switch to that products due to less prices so this company has to reduce its
cost of production to remain more competitive in the present market (Garnett, J., 2021). Supplier power: If the market has less supplier and more customers then they have
complete monopoly in the market due to less number of substitutes and supplier of that
products and the supplier can charge high prices due to customers have no option to
switch to others. If the supplier power is low that means more substitutes are available to
the market and the supplier supply raw materials at low rates to the company for
production.
 Buyer power: If the consumers are educated and have full knowledge about the product
then the buyer power is high. The consumers can influence the price because of more
substitutes to the products and full knowledge and it will directly decrease the profits
earning of the customers. Mark and Spencer will have to make the products in a way that
in which customers have no choice of buying another products for earning huge profits. Threats of substitution: Marks and Spencer should develop those products which has less
substitutes so that it can change its price according to the needs of the market and earn
huge profits. If the company has more substitutes available in the market then it will
become difficult for the company to earn huge profits because the customers will switch
to substitute products which has less price. So the company need to develop those
products which has more advanced features and have less substitutes in the market
(Khurram, 2020). Threat of new entry: This is the threat for each company dealing in the world of
globalisation because each new company will come up with more new ideas and
strategies with more advanced products and technology which will attract more number
of customers and it is a threat to the existing customers. Mark and Spencer will have to

update all its plan and strategy time to time to remain updated about the market demands
and needs for future success.
Blue oceans
Blue ocean is a strategy in which a company enters or expand in a market which has no
competition and difficulties in doing a business (Gregg, J., 2021). Mark and Spencer should
search a new market in which there is less competition and no competition and the cost of
production of product is low. This type of market will give this company more competitive
advantages due to no substitutes or no competition in the market or less cost of products results
in higher profits. According to this model a company can use strategy like completely launching
new products and services which has no substitutes available in the market. The products should
totally different from every products with more advanced features and services so that customers
will have no options to think about other products. The company can also expand its business in
a market which has no competition so that cost of production can be decreased and profits can be
increased for example opening a new branch in a market which is underdeveloped and has no
substitutes available.
Recommendations
Mark and Spencer will use this techniques or models for identifying its competition, threat
and substitutes in the market so that more relevant information can be found out. The company
should develop its strategy and plans according to marketing conditions with use of porter’s five
forces and blue ocean strategy can be used because it will give more competitive advantage to
the company then other strategy.

CONCLUSION
From the above report it can be concluded that, the global strategic management is
mainly used for maintaining the strategy used for maintaining the business by establishing the
global business operations. Marks and Spencer is mainly recognized for Working and achieving
its revenues by establishing and using the market development strategy as for earning more
profits and increasing the sales of products. With using the swot and pestle analysis helps in
defining the internal and external environment of the company. Also with recommending the
ways for improving the strategy used by the business. Furthermore with using the porter and blue
ocean model helped in analysing the company strategic issue faced while operating into global
environment.

REFERENCES
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Disaster Events Based on Macro Domain PESTEL Analysis: Case Study of Malaysia
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Barnish, and et.al., 2018. How much evidence is there that political factors are related to
population health outcomes? An internationally comparative systematic review. BMJ
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Keeler, and et.al., 2019. Social-ecological and technological factors moderate the value of urban
nature. Nature Sustainability, 2(1), pp.29-38.
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metabolites in medicinal plants. Plant Physiology and Biochemistry, 148, pp.80-89.
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within Import Substitution and Resource-saving Programs (on the Example of St.
Petersburg). Administrative Consulting, 1(7), pp.127-138.
Garnett, J., 2021. Strategic studies and its assumptions. In Contemporary strategy (pp. 3-21).
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Khurram, and Khurram, S., 2020. Revisiting Porter five forces model: Influence of non-
governmental organizations on competitive rivalry in various economic sectors. Pakistan
Social Sciences Review, 4(1), pp.1-15.
Gregg, J., 2021. Blue Oceans and Greenfields in Space. In The Cosmos Economy (pp. 25-32).
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