Global Strategic Management for Marks and Spencer

This report analyzes the existing strategy of Marks and Spencer, its pros and cons, and suggests ways to improve it. It also evaluates contemporary strategic issues and applies relevant theories like Porter’s Five Forces and Blue Oceans.

Global Strategic Management

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Commenting on the existing strategy, taking into account the External and Internal
environments................................................................................................................................3
State the pros and cons of their current strategy..........................................................................5
Critically analysing how the company or organization could improve on their strategy............6
What changes would you recommend that they make to their strategies and plans that could
make them more successful in the marketplace in the current environment...............................8
Critically analysing and evaluating the different contemporary strategic issues and applying
relevant theories like Porter’s Five Forces and Blue Oceans in the formulating the task...........8
Blue Oceans Strategy of M&S...................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12

INTRODUCTION
A strategy which is required to be obtained by the organization to grow and develop their
business into the global market surrounding and can easily increase their sales across the world.
This global strategic management is the important activity to be considered by the business fields
as it enables the business to capitalize on competitive opportunities all over the world (Bonsu,
2019). Choosing an organization named Marks and Spencer who wants to expand their business
worldwide where they have to understand the importance of the global strategic management
field.
The current report will illustrate the concept of global strategic management in brief
manner along with commenting on the existing strategy of the chosen company in regard with
external and internal environmental areas (Suriyankietkaew and Petison, 2019). Also, it will
include the pros and cons of the existing strategy the company is utilizing and critically analyse
the different ways from where they could improve on their strategic level. In addition, some
recommendation will be mentioned to plan and make the strategy successful in the marketplace
whereas it will lastly involve the different contemporary strategic issues while applying relevant
strategic theories.
MAIN BODY
Commenting on the existing strategy, taking into account the External and Internal environments
The company named Marks and Spencer is a multinational organization who deals in
clothing apparels, accessories, food products and even home products where the company is
headquartered at London, United Kingdom. Currently, the company M&S has approximately
959 stores across the UK where it also includes the 630 stores who focus more on selling the
food products through the television and advertising channels. M&S have the amazing and very
comfortable pricing structure of their products and services where they keep the prices of the
goods and services according to the lower to higher and uxorious ranges which helps the
company to grow efficiently (D’Cruz, 2018). The company named M&S has keep their focus on
the internal and external both areas of the company where the internal environment cover up the
strategy named as Swot analysis and external environment refers to pestle analysis which helps
and supports the company to obtain the effective outcome (Kurbanov, 2020). Here, mentioning
these both strategies which will ensure and allow an individual person to understand the
environmental areas of the company accordingly.

Swot analysis
Strength The company Marks and Spencer have a strong focus on enhancing the
consumers by their effective strategies like comfortable pricing structure
which allow them to approach the wider number of customers. Also, the
company follows the CSR activities which enable them to increase their
brand and company reputation (Regent, Glinkina, Ganina and et.al.,
2019).
Weakness M&S is not having an effective and clear marketing strategies where
they lack on advertising their products and services which is refers as a
quite weak point for the organization (Petera, Wagner and Šoljaková,
2020). Also, due to high range of customer the company do not able to
solve and communicate their customer in effective manner and met to
provide poor customer services.
Opportunity Today, the rapid changes in technologies provides an opportunity to the
company to deal with the competition effectively. However, the Indian
market is quite good and delivers a great opportunity to M&S to build
their business in increasing manner (Kurbanov, 2020).
Threat People or a consumer always looks for new trends and the fashion
industry changes the trends on regular basis where the company can get
a threat of not fulfilling the demands of the consumers which will lead
them to obtain difficulties to emerge the business growth (Fitriyah,
2019).
Pestle analysis
Political The political factor includes the government policies and regulation
which the company needs to follow to do not get impacted on wider
basis. The European Committee has allowed to do the free trade under
the foreign trade regulations where the M&S competitors took a great
advantage of the higher cost structure (Drnevich, Mahoney and

Schendel, 2020).
Economical The economical factor includes the areas such as inflation and deflation
rates where the M&S competitors are expertized in niche market where
they more focus on customer satisfaction. They import their products
from foreign for saving the costs where the M&S obtain the
disadvantages.
Social Social factor includes the age, sex, population, religion and such more
where the M&S considers providing the high and better quality of the
products and services. (Godina, Maksimenko, Ushvitsky and et.al.,
2018)
Technological Technology plays an important role in the company Marks and Spencer
where advertising and promoting of their products and services is done
by the different technological channels and sources. Using the
technology like television, digitalization help and supports the company
M&S to perform the effective marketing and advertising activities
which creates an awareness among people in relation to the particular
goods and services (Fuchs, Raulino, Conceição and et.al., 2020).
Legal Legal factor includes the legal laws and taxation areas which the
company adapt to grow and develop their business according to the
legislation and proper regulations. The company offers the high
qualitative products to the customers by performing the laws
appropriately to meet the essential requirements.
Environmental M&S company follows the CSR activities and trends where it helps
them to grow and develop their business accordingly. Following this
activity, it also helps the company to approach the maximum number of
consumers respectively (Kostin, 2018).
State the pros and cons of their current strategy
The company's existing strategies refers to excellent pricing structure which allow them
to approach the wider number of consumers and can improve their productivity effectively. The

pricing structure of the company is very beneficial and kept by taking the appropriate decision
where the consumers can be able to acquire the fruitful outcome and result efficiently. Also, the
company utilizes the swot and pestle analysis which helps them to understand the internal and
external surrounding of the organization and enable the to obtain effective result and outcome
respectively (Safonov, Marichereda and Bazhenkov, 2021). Thus, the M&S have obtained the
benefits of using the effective pricing structure strategy whereas they also obtained some cons
which should be understood in definite manner. Here, mentioning the pros and cos of the current
strategies used by the company M&S to acknowledge the effectiveness.
Advantages
1. The company M&S is obtaining the advantage with their pricing structure where they are
able to approach and attract the wider range of consumers at their place.
2. It also benefits them to improve and increase their organizational performance and offers
the excellent productivity (Makedon, Kostyshyna, Tuzhylkina and Stepanova, 2019).
3. M&S acquire the good result and outcome and able to deal with the competitor in
effective manner due to affordable pricing structure.
4. Putting the pricing strategies also satisfy the customer needs and requirements and fulfil
them in definite order where it holds the consumers to shop and buy the products from
their organization only (Loginovskiy, Dranko and Hollay, 2018).
Disadvantages
1. The company Marks and Spencer obtains the difficulties in geographical pricing structure
where it adds the extra layers of bookkeeping because they are required to keep the track
of different prices in different places.
2. A competitor based pricing changes the pricing functioning of the company where they
do not able to completely change the pricing in marketing strategy where they are
required to focus on different market segmentation (Schilling and Shankar, 2019).
3. Keeping the pricing structure referring to the market demands where they kept the
highest prices of the products by the company whereas they also enable to put short range
of lower ranges products than higher and luxury goods because it creates a difficulty for
the company to approach the middle class group of people to buy their company products
on regular basis (Păun and Pînzaru, 2021).

Critically analysing how the company or organization could improve on their strategy
The above mentioned organization named Marks and Spencer is applying and following
the different kinds of strategies to make their organizational environment positive and accurate
where the employee can in definite manner (Lak, Gheitasi and Timothy, 2020). The company
follows the luxurious pricing range structure with regard to the demand of the M&S products
which is increasing day by day. Thus, the company decided to put the prices high so that they
will obtain the profitable and high revenue. Keeping the prices high allow the high class people
to afford the products in definite manner but M&S looses the lower and middle class people to
buy the products of their company which creates a disturbance in emerging the company at
successful level effectively (Cui, Allan, and Lin, 2019). The company M&S have to implement
some actions and decision in regard to improve their existing pricing strategy so that they can
easily approach the maximum number of consumer more efficiently.
The company Marks and Spencer uses the pricing strategy where they only offers the
highly range products and services to the customers where it is not essentially important that
each individual is able to afford and buy the products. M&S can keep their pricing structure in
effective and affordable manner where they can offer the products and services in low-priced
ranges as well which will allow them to attract and approach the peak number of customers in
broad way. The company can adopt and follow the different types of pricing structure at their
organization along with marketing strategies and organizational behaviour (Sanito, You, Chang
and Wang, 2020). Looking at the pricing strategy of the M&S they can improve it by developing
their knowledge and understanding in effective manner where it includes the market penetration,
price skimming and adopting the premium pricing structure can be followed and implemented by
the M&S which will allow them to obtain the effectiveness and able to approach the maximum
number of consumers. However, the company M&S also requires to improve their marketing
areas also as it will also provide the definite amount of outcome and result.
The mentioned company can use the different sources and channels for the marketing and
advertising their brand, products and organization from which they can expand their business in
global market efficiently. Improving these strategies will make the company to grow and develop
in definite manner and can maintain their growth effectively (Momanyi, 2020). For improving
the marketing strategies the company can follow adopt the process where the company M&S has
to segment and target the particular group of people where they are required to keep their focus

on so that the consumers are able to fulfil their needs and requirements and also the productivity
of the company can be increased (Kanyarusoke, 2020). In addition, it has been evaluated that the
company M&S should organize a training and development sessions at their workplace where
the employee and staff members of the company can learn and enhance their knowledge and skill
which will help them to improve their working performance and result into higher amount of
productivity level. However, the M&S company has required to keep their focus on their existing
strategies where it should be modified and change as per the requirements and should implement
some new and strategic ideologies and models which can deliver the effective amount of result
and outcome along with higher productivity level.
What changes would you recommend that they make to their strategies and plans that could
make them more successful in the marketplace in the current environment
The company Marks and Spencer is required to implements some strategies from where
they can grow and develop at effective level. The company can use the technological activities
where they can obtain the appropriate amount of profit and outcome and can increase the
productivity of the organization. For the marketing and promotional activities, the company
should use the digital areas like television, social media platform, radios and such more things
from where they can easily promote their products and services along with their company
reputation and image in definite manner (Blum, 2020). It has been recommanded that the
company M&S should take the decision in regard to plan and implement the successful strategies
at the marketplace which will ensure the company to understand the current environment of the
company and can create an awareness among people as well in relation to increase their
marketing strategic level. Also, it has been recommanded that the M&S company should keep
their focus on the pricing structure of the goods and services from which they can approach and
attract the broad number of consumers effectively.
Critically analysing and evaluating the different contemporary strategic issues and applying
relevant theories like Porter’s Five Forces and Blue Oceans in the formulating the task
To run any kind of business, the management is responsible for adopting and
implementing the strategic level of strategies and methods from where the employee of the
company can be retailed successfully and also can receive the effective amount of result and
outcome. The company Marks and Spencer is an international organization who uses the
different types o strategies their workplace where they are still facing the strategic issues at their

business level which is required to be solved effectively. The contemporary issue includes the
communication areas, limitation of resources, conflicts at workplace, increasing of competition
in market financial limitation, supply chain disruption and much more (Nyanga, Pansiri and
Chatibura, 2019). Thus, the company M&S also faces such kinds of issues at their organization
which leads them to obtain difficulties and improper outcome.
However, it has been evaluated and identified that the company Marks and Spencer is
required to apply some relevant strategies at their workplace from where they can improve their
growth and development of the company in wider and effective manner. Also, it has been
evaluated that the company also facing the issue in the implementation of the polices and
regulation which should be modified as per the employee and customer needs and requirement so
that they can retain both partied in definite manner (Kim, 2018). The model named Porter five
forces will help the company M&S to understand and analyse the competitive environment
which will aware the company prior any risk occurs. Here, mentioning the porter five force
model as it will support the company to identify their competition in the global market areas.
Competitive Rivalry: Today, the fashion industry is developing on daily basis and emerging or
increasing the economy of the country at definite level. The company M&S is a global operating
organization who have been famous for clothing apparels and beauty products. Thus, the M&S
company has the high competition in the retail industry where the companies like Zara and H&M
where the competition is increasing day by day in highly manner (Malhotra and Aggarwal,
2019).
Threat of new entrants: The company M&S is an international clothing apparel and food
products organization who has approximately 1000 stores over the world. The market of the
clothing and fashion industry is increasing day by day, where they are required to update them
according to the trends and fashion demands by the consumers (Stamevski, Stamevska and
Stankovska, 2018). The newly launch organization brings the innovation and new trends in the
market by applying different strategies which can makes difficulties for the M&S organization to
deal and compete with them. For competing with newly launch and new entrant's company,
M&S has to bring the innovative trends on regular basis to retain the customer and market
accordingly.
Bargaining power of supplier: As, it has been already known by an individual that the
company named Marks and Spencer is a globally operating firm with a presence of multiple

number of countries with different and numerous brand entity. The company believes in not
buying the finished goods directly and purchases the raw materials where the lower margin on
the goods they can achieve. Purchasing the goods or raw materials in high demand bring to
spend lower margin and provides the profit (Shams and Belyaeva, 2018). Also, the M&S
company can supply and put the prices high as per the market demands as the company delivers
the unique products which are not available at any other store from where the consumers are
bounded to take that particular product from the company M&S where this act is called as
bargaining power of supplier.
Bargaining power of consumer: The bargaining power of consumer is also a huge factor which
the company M&S has to face where it can be easily understood by when the consumer bargains
from the seller and seller refuse to sell the particular item or good on the price consumer
negotiated then the consumer have other so many choices and options to buy the product from
another company and a store (Hutorov, Yermolenko, Lupenko, and Dorokhov, 2018).
Threat of substitution: Today, the fashion industry is growing and developing in highly manner
where the M&S company has a threat of being substituted by the any other company (Shukor,
2020). The Marks and Spencer always maintained and considers their major focus on
differentiating themselves from others where they have to put more and more efforts in bringing
the innovation and trends accordingly. M&S has many competitors from whom the risk of
getting substitution can increase and risen up where performing and adopting the effective
strategies can deal and reduce such threat areas.
Blue Oceans Strategy of M&S
Blue ocean strategy is a business term where companies have an escape route from the
competition over the same market space. The blue ocean strategy is kind of framework where it
rejects the tradition business techniques and strategies and there must be a trade off between the
cost and value areas (Mamatova and Pavliuk, 2020). It is all depends on the company M&S
where they are able to provide the greater value for their customer but as higher cost and can
provide lesser as a reasonable value to their consumers but save on expenditures. However, M&S
company has to identify their potential and key competition in the market and should adopt some
factors to compete over.

CONCLUSION
The above mentioned report has concluded the concept of the global strategic
management where the company has required to understand the existing strategies of the
mentioned organization and also understand the pros and cos of the current strategies the
company utilizes. Also, the report has included the strategies which company should improve
and implement some new strategies as well which will provide a great benefit and advantages to
the organization. At last, the report has performed two strategies or a framework which will help
the company to improve and develop their growth definitely.

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