Global Strategic Management for Marks and Spencer

This report discusses the SWOT analysis, PESTLE analysis, VRIO analysis, McKinsey 7's model, Porter's Five Forces Model, and Blue Ocean Model in the context of Marks and Spencer. It recommends changes required by the organization within the market place and explains the risk strategies by applying Porter's Five Forces and Blue Ocean Model.

Global Strategic
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Explain the internal and external environment of the business organisation ........................1
Recommend some changes which is required by the organisation within the market place? 4
Explain the risk strategies by applying porters five forces and blue ocean model ? .............6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In today's world it is very important for every business organisation to manage its
functions in an effective and efficient manner. The global strategic management is related to the
different aspect in which the company needs to be aware of internal and external environment in
order to conduct business functions. It is very important for the business organisation to focus on
the different strategies in order to expand its business operations. It is very important that the
company focus on the global strategy in order to expand its market and achieve success and
growth. This is the report which is based on the company Marks and Spencer which is the
multinational retailer brand. The company is headquartered in London, England. It was founded
in 1884 by Michael Marks and Thomas Spencer. It has 959 stores across United Kingdom. This
report will include various topic such as swot analysis, pestle analysis, VRIO analysis, McKinsey
model, porters five forces and at last blue ocean strategy.
MAIN BODY
Explain the internal and external environment of the business organisation
In order to identify the internal and external environment of the business organisation
there are various models which can be considered. It is very important for the organisation to
identify the internal environment by analysing SWOT analysis.
SWOT Analysis
This is the framework which is used in order to identify the strength and weakness of the
organisation. Further it also helps in identifying how the strength can be used in order to adopt
the opportunities and how it control over their threats. The SWOT analysis in context of Marks
and Spencer is discussed below:
Strengths
 The company is well established in the market since past 136 years. The company is one
of the leading business in United Kingdom. The company was able to make big
partnerships over the years across the world. The company Marks and Spencer is multinational brand which not only have online
stores but it also has a offline physical store in Europe, Asia and middle East. It has been
identified that the company has 1465 outlets across the world.(Shaulska,and et.al. 2021)
Weaknesses
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 It was identified that the company was facing the issue of decline of sales in some of the
stores because of the poor supply chain system and non availability of the products. It has also identified that one of the major weakness of the company is that high cost of
products because the company is heavily dependent on the manual process
Opportunities
 As it is identified that the company has its global expansion and is spread over all the
countries. Now the organisation need to focus on developing business in the other
countries. The company ned to pay an active role by increasing its branches. As the company has its online store but the organisation need to focus on developing the
different strategies in order to promote products over the online it is very important for
the organisation to grab the opportunity of expanding business over the E- commerce
platform (Kuchta and et.al., 2019)
Threats
 As it is identified that the retail sector in United Kingdom has high competition. The
some of the main competitors of Marks and Spencer are ASDA, ZARA etc.
PESTLE Analysis
This is the framework which is used by the business organisation in order to identify the
external environment. There are various factors which can impact the organisation in numerous
ways. It is very important for the organisation to identify the external factors which can influence
over the business operations and its activities. The several factors are discussed below in context
of Marks and Spencer :
 Political- This is the factor which is related to the extent to which government policies
may interfere within the organisation. There are various elements included in this factor
such as tariffs, trade polices etc. it has been identified that there is the impact of the
political factor over the company where the Brexit move has highly impacted Marks and
Spencer and its operational activities. As in the United Kingdom the company has lost of
free trade policies which has impacted in the suppliers for the organization.
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 Economical- This is the factor which is related to the performance of the world has a
direct impact over the business operations. Such factors include taxes, inflation rate etc. it
has been identified that the price of the products is the major factor which impact the
organisation in retail industry. The rise in the inflation rate has impacted the organisation
in negative way. As the customers are aware of the prices and the high inflation rate has
declines the sales for the Marks and Spencer in United Kingdom. (Stepnov, and
Kovalchuk, 2018).
 Social- This is the factor which is related to the current trend in the market which has a
impact on the organisations and its operations. Such factors include the lifestyle, attitude ,
behaviour. It is very important for the marketer of the organisation to identify the current
trend and preferences of customers in order to meet their demand and expectations. This
is the factor which highly impacts the success and growth of the organisation. It has been
identified that in United Kingdom the people are more concerned with the lifestyle which
need to be focused by the business organisation.
 Technological- This is the factor which is related to the innovations and development
which is around the world has a interference within the business operations. Such factors
include digitalisation. Research and development, artificial intelligence etc. it is very
important for Marks and Spencer to adopt to the latest technologies in order to attract
customers. The company can focus on the self check in and out system in its offline
stores in order to manage the task effectively. Also it is very essential for the marks and
spencer to develop its online presence in its effective way.
 Legal- This is the factor which is related to certain laws within the country which ned to
be followed by the organizational and has the government interruptions. Such factors
include employment law, safety law etc. it is very important that the organisation need to
follow the employment safety law for the staff members. There should be facilities of the
employees as they are working with the organisation. Also this will help in avoiding the
risk of the government interference within the business operations. As in United
Kingdom there are certain laws which need to be followed by the organisation
 Environmental- This is the factor which is related to the surroundings of the
environment which has a influence over the organisation. Such elements include climatic
conditions. Weather conditions, sustainable development etc. As in the United Kingdom
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it is very important for the organisation to maintain sustainable development in order to
practice effectively.
VRIO Analysis
This is the framework which helps the organisation in order to identify the advantages
and resources which give them competitive edge. There are various elements in this model which
is discussed below:
Resources Value Rarity Imitability Organized
Financial resources    
Food products  
Patents  
Employees   
 Valuable- There are various resources winch are valuable for Marks and Spencer. Such
resources are financial resources, management of operations. These resources are
considered as the few for the completive advantage for the business organisation.
 Rare- It is very important that the company focus on the rare resources which means that
the competitors are not able to copy it. The rare resources of the Marks and Spencer are
the patent of the Marks and Spencer which is rare and cannot be taken over by the
competitors. (Stephen, H., 2018)
 Imitable- These are the resources where the company has its replica. It is very important
for Marks and Spencer to have such resources in order t be profitable. Such resources are
financial resources of the organisation.
 Organised- this is defined as the recurses which are organised within the company.
These are the employees of the organisation which is considered as the organised
resources.
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Recommend some changes which is required by the organisation within the market place?
It is very important for the organisation to adopt to the new strategies which can help the
organisation to achieve success and growth. This is most important aspect for the companies in
order to develop the different strategies within the organisation. The McKinsey 7's model can be
considered in order to identify the different strategies which need to be focused by the business
organisation. This is the model which explains of the the various element which need to be
focused in order to manage the different business functions. The various element are explained
below in context of marks and spencer: Structure- This is defined the way in which an organisation is organised where there is
chain of command in order to for a relationship between the managers and employees. It
is very important for the organisation to have the right form of structure in order to
perform the different task. Strategy- This is defined as a well defined way in which the company adopts to plan an
faction of the objectives and goals of the business organisation. It is very important for
the Marks and spencer to follow the right strategy in order to have a competitive
advantage and ca hive its goals and objectives effectively. System- The system of the organisation is defined as the technical infrastructure of the
business organisation which establishes the workflow and the chain of decision making.
It is very important that the Marks and Spencer focus on the right system in order to work
in an effective manner. (He, and Brahmasrene, 2019) Skill- This is defined as the capabilities of the organisation and its employees in order to
achieve the goals and objectives in an effective and efficient manner. It is very important
for the Marks and Spencer to develop the skills of its employees so that they can ca hive
the objectives in effectuate way. Style- This is related to the leadership style which need to be adopted by the organisation.
it is very important that the organisation adopt the right leadership style in order in order
to motivate its employees and have an effective working within the organisation. Staff- The staff are the employees of the organisation who are involved in the various
activities in order to achieve the goals ad objectives of the business organisation. It is
very important for the Marks and Spencer to focus on the trainings and development of
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its staff members so that they can increase their productivity n order to achieve growth
and success. (Gursel, and et.al., 2019)
 Shared values- this is defined as the core values of the organisation which is important
for the members to maintain the norms in order to e effective. There are various values,
missions and vision of the company which need to be followed by the employees in order
to achieve goals and objectives of the business enterprise.
Explain the risk strategies by applying porters five forces and blue ocean model ?
Porters five forces model-
This is the model which is used by the business organisation in order to identify the
different forces which can impact the organisation. There are various forces which can impact
the organisation in various ways. It is very important for the organisation to identify the impact
of external forces. The various forces in this model is discussed below in context of Marks and
Spencer::
 Bargaining [power of customers- This is the power or ability of customers to bargain for
the products or services with the organisation. It is identified that the bargaining power of
customers is high in retail industry because there are several other alternatives for the
customers. In this type of industry the customers are price sensitive. As well as there are
variety of competitors which can take over the marks for the Marks and Spencer. It is
very important for the company to regularise its prices according to customers in order to
attract them.(Loonam, and O'Regan, 2022) Bargaining power of suppliers- The suppliers are the one from which marks and spencer
procures the input materials. It is identified that as there are number of suppliers for the
company and it is operating across world. The suppliers power is low as they cannot
bargain with the company. The company has its brand name and is known for the quality
of products it is maintaining. Due to multiple suppliers the Marks and Spencer can easily
shift to another suppliers. Threat to new entrants-This is the factor which is explained as the threat of new entrants
within the retail industry. It has been identified that as Marks and Spencer has its
presence and has brand name in the retail sector. The company provides with the variety
of products such as food, clothing in order to attract Custer. It can be said that there is
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there is high level of the threat of new entrants for the company because now a days the
more knowledge and experience need to be followed by the organisation. Th new
technologies can take over the market by the new organisations. Threat of substitutes- This is related to the alternative options which is available for the
customers. It is identified that there is the high threat of substitutes as the customers have
several other options variable in the market. In the retail industry this is the threat which
has a major impact over the organisation.
 Competitive rivalry- It is identified that there is high competition in the retail industry as
there are various players in the market and where customers are price sensitive. It has
been also identified that there are wide range of alternatives for the customers in the
market. it is very important for Marks and Spencer to consider this factor as there is
competitive rivalry in the market. Terre are several other brand winch can take over the
market of the company. It is very important for the organisation to be competitive in
order to attract customers. (Nerantzidis,and et.al., 2021)
Blue ocean model
This is the model where it is identified that it is very important for the business
organisations to develop the blue ocean strategy in the sequence of buyer utility, price , cost and
adoption. This helps the organisation to build a viable business model and also ensures about
making the profitable blue ocean strategy in order to have the growth and success within the
business organisation. This is the model which can be considered by Marks and Spencer in order
to produce for the products or services which are no competition in the market. It is very
important for the organisation to have a monopolistic market so that it can have a profitable
business.
This is the strategy which can helps the business organisation to grow faster and achieve
success. In context of Marks and Spencer the company can focus on developing its products and
minimising the cost and differentiating its products from its competitors in order to attract
customers. (Vora, and Kainzbauer, 2020)
Recommendations
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there are various recommendations which are suggested for the Marks and Spencer in order to
have a profitable business. The various suggestions are given below:
 it is very important for the organisation to consider the various external factors in order to
prevent the risk and avoid any govern implications in order to expand its market.
 It is very important that the organization have a a structure and system in order to
perform the task in effective way.
 It is suggested that the organisation need to adopt to the various new technologies so that
it is able to attract customers.
 Marks and Spencer can make its online presence in more effective way so that it can
attract customers. It is very important that the company includes the various strategies
and discounts offers within the online presence. (Šilhánková, and Maštálka, 2022)
CONCLUSION
From the above report it has been concluded that it is very important for the organisation
to analyse the various external and internal environment in order to be effective and efficient.
There are various factors which can have a influence over the organisation which need to be
considered by the Marks and Spencer. From the porters five forces it has been analysed that there
are various forces which can impact the organisation. There are several recommendations given
o the company so that the company can be effective and efficient.
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REFERENCES
Books and Journals
Rudaya, I., 2019. Issues of strategic management of Russian innovative organizations’
intellectual property. UPRAVLENIE/MANAGEMENT (Russia), 7(1), pp.50-59.
Shaulska,and et.al. 2021. Strategic enterprise competitiveness management under global
challenges. Academy of Strategic Management Journal, 20(4), pp.1-7.
Kuchta and et.al., 2019. The use of the multiple knapsack problem in strategic management of a
private Polish university: Case study. International Journal of Educational
Management.
Stepnov, I.M. and Kovalchuk, Y.A., 2018. Value Chain Modeling in Digital Strategic
Management. Accounting. Analysis. Auditing, 5(5), pp.6-23.
Stephen, H., 2018. Changing Planes: A Strategic Management Perspective on an Industry in
Transition: Strategic Choice, Implementation, and Outcome. Routledge.
He, W. and Brahmasrene, T., 2019. Examining strategic group membership and firm
performance in the global hotel industry. International Journal of Services, Economics
and Management, 10(3), pp.208-228.
Gursel, F., BUSATLIĆ, S., Ketin, S. and PLOJOVIĆ, S., 2019. The Strategic Management as a
Factor of Customer Satisfaction in the Foodservice Industry in Sarajevo
Canton. Management (18544223), 14(3).
Loonam, J. and O'Regan, N., 2022. Global value chains and digital platforms: Implications for
strategy. Strategic Change, 31(1), pp.161-177.
Nerantzidis,and et.al., 2021. Mapping the Intersection Between Corporate Governance and
(Strategic) Management. In New Approaches to CSR, Sustainability and Accountability,
Volume II (pp. 39-52). Springer, Singapore.
Vora, D. and Kainzbauer, A., 2020. Humanistic leadership in Thailand: a mix of indigenous and
global aspects using a cross-cultural perspective. Cross Cultural & Strategic
Management.
Šilhánková, V. and Maštálka, M., 2022. Municipality Strategic Prospects in the Post-COVID
Time. In Innovative Strategic Planning and International Collaboration for the
Mitigation of Global Crises (pp. 249-260). IGI Global.
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