Global Strategic Management Individual Report

This report analyzes the existing strategy of Marks and Spencer, including its internal and external environment, and suggests ways to improve it. It also evaluates different contemporary issues faced by the company.

Global Strategic
Management

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
TASK 1............................................................................................................................................1
TASK 2............................................................................................................................................5
TASK 3............................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management can be described as an ongoing process planning, analysis, monitoring as
well as assessment of different requirement and necessities of business in order to meet goals and
objectives of business. There are different changes occur in business environment due to which
business needs to assess different types of strategies that provide them success in the marketplace
(Adamova, Khabib and Teplyakova, 2020). This project report includes analysation of Marks
and Spencer which is UK based organisation that provide different types of clothing, food and
home care products to its customers. It is a business that is providing its services in different
countries and was established in the year 1884 by Michael Marks and Thomas Spencer. This
project report includes analysation of existing strategy of business with taking into consideration
of the internal and external environment. It also includes ways in which companies can improve
different strategies. Moreover, it includes analysation and evaluation of different contemporary
issues.
MAIN BODY
TASK 1
Existing strategy
Marks and Spencer is one of the organisation which is offering different types of products and
services like clothing, food and home care products to its customers. It is one of the large
organisation that is adopting different types of strategies in their organisation. Adoption of these
strategies helps business for purpose of attain different types of goals and objectives (Akyuz and
Gursoy, 2020). Some of these strategies helps business in international market are mentioned
below:
Porter’s generic strategies:
It is a model which is adopted by businesses in order to gain a competitive advantage. There are
different types of strategies to be implemented by businesses that assist them to gain a
competitive advantage. Some of these strategies adopted by Marks and Spencer are mentioned
below:
Cost Leadership: It is a strategy that helps businesses to get a competitive advantage in the
marketplace. In order to get a competitive advantage, it is essential for an organisation like
Marks and Spencer to focus on the reduction of costs in the business. It will allow the business to
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decrease the total cost of the company and also increase its profitability level. Offering products
at discount allow Marks and Spencer to target a large customer segment.
Differentiation: It is another strategy that assists businesses for purpose of adopting something
new in business which allows them to differentiate the product and service of the company from
those of competitors. Marks and Spencer are differentiating their products by using advanced
technology in their organisation like self-checkout and others.
Focus strategy: It is another strategy in which the focus of business is on a specific niche market
through differentiation and cost focus. Marks and Spencer is adopting this strategy by offering
products at lower prices along with the adoption of innovation and technology in their
organisation (Andreeva and et. al., 2019).
External environment:
The external environment consists of those factors which are present outside the business and
also create a serious impact on the business. In order to identify factors in external environment,
business needs consider PESTEL analysis. On basis of this tool, business needs to identify
factors which create influence over business. Some of these factors identified by business
includes regulation of government, economic condition, cultural awareness, advancement of
technology, laws and legislation. Explanation of some of these factors that create impact over the
business of Marks and Spencer are mentioned below:
Political factors: It is a factor that consists of rules and regulations of the government that create
an impact over the business. In the UK, due to Brexit, various policy uncertainties occur. Due to
this, business needs to adopt changes in their organisation. It is essential for Marks and Spencer
to adopt different changes in their organisation (Bénet, Deville and Naro, 2019). Marks and
Spencer is facing problems for business in context to shipping of their products out of England.
Due to this, the cost of the company has also increased and the business needs to lose its
customers.
Economic factors: It consists of factors that are in context to the economic condition of a
company. The economic condition of the UK is in a good position which creates opportunities
for business. Marks and Spencer is one of the large retailers that is offering its products and
service in the current market of the UK but there is a shift in trend in the UK towards small retail
stores. These stores offers to products to customers at lower prices and Marks and spencer is
offering its products at a premium price. As a result, sales of the company has declined.
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Therefore, these budget stores present in the UK create a threat for the business of Marks and
Spencer.
Social factors: These are one of the important factors which are related to cultural awareness,
demographic factors and other things. All these factors are considered by Marks and Spencer
while operating in the UK as it helps businesses for purpose of understand the needs and
requirements of customers (Bonsu, 2019). Marks and Spencer has long existence in the market of
UK and it is not consider as youth brand. Due to this, there is less demand of this brand among
young customers. Marks and Spencer is recovering this factors on basis of selling ready meals in
marketplace within the industry.
Technological factors: It is another important component for business that consists of
development and advancement of technology. It creates an impact on the capabilities of
businesses to compete in the marketplace. Marks and Spencer have adopted the latest technology
in their stores for purpose of convenience of customers. As this business has adopted a self-
checkout system in their organisation and also food joints are also considered by businesses in
their current organisations. Marks and Spence is also planning to invest on increasing usage of
AI-based checks out in their organisation in the future period of time.
Environmental factors: Environmental factors are those which are related to the protection of
the environment in business. Marks and Spencer are one of the premium brands and due to this,
they need to promote environmental awareness among people. They are also focusing on
avoiding negative impacts on the environment with their operation (Chofreh and et. al., 2020). It
promotes a sustainable retail industry for different reasons and also needs to be careful with the
production process. There is increasing environmental awareness among people of the UK due to
which managers of Marks and Spencer needs to consider these factors in business.
Legal factors: It is also a factor that consists of different laws and legislation in business. Marks
and Spencer have been involved in different types of legal disputes. Due to these legal disputes,
the image of business occurs can also be impacted in the marketplace. Marks and Spencer also
update their organisation with current laws and legislation which will helps businesses for
purpose of adopting all laws and legislation.
Internal environment:
Internal environments are those which are present inside the organisation and also create an
impact on the performance of the company. There are different components to be included in the
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internal environment of the company and also create capabilities of the company. In order to
identify internal factors business needs to consider SWOT analysis. Explanation of different
factors of business of Marks and Spencer are mentioned below:
Strength Weakness
Marks and Spencer have a clear brand image in
the marketplace as it is providing high-end
values products to its customers.
It is selling different premium brands in its
stores along with its own brand. It is also
selling brands of private labels (Colla and
Afonso, 2019).
Marks and Spencer is one of the organisation
which is also adopting innovation in their
organisation. Innovations are also important
for a business in order to differentiate its
product from those of competitors. On basis of
this innovation, businesses can adopt creativity
in their organisation.
Marks and Spencer are facing difficulties in
ensuring customer satisfaction. It can be the
result of issues in the return policy of the firm
and also with in-store experience of customers.
It also results in poor brand loyalty of
customers in business.
Marks and Spencer have not expanded its
business in the foreign marketplace
successfully. It is getting problems in
expansion in Asia and Middle East countries as
it is only using western design not the
traditional.
Opportunity Threat
Marks and Spencer is one of the organisation
which can get opportunities in the marketplace
by entering the new market segment. In Asia,
there is high demand in the marketplace which
creates opportunities for the business of Marks
and Spencer.
Marks and Spencer can also open their own
website which allows them to gain marketing
opportunities.
There is increasing competition in the
marketplace that creates a threat for the
business of Marks and Spencer. These
competitors include Zara, Tommy Hilfiger and
United Colors of Benetton (D’Cruz, 2018).
Increasing numbers of retail stores in the
marketplace create a threat for the business of
Marks and Spencer as these stores are offering
their products at discounted prices.
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TASK 2
There are different ways in which a business can improve their strategies as it allows them to
overcome of current problems faced by them. It is essential for business managers to ensure
continuous improvement in their organisation with time. Some of the steps to be taken by
managers of Marks and Spencer in order to improve its business strategies are mentioned below:
Assessment of situation: It is one of the first stages in which Marks and Spencer needs to
understand different factors that create influence over the success of the business. These factors
includes market trends, current practices of business, environment in which the business is
operating (Drobyazko and et. al., 2019). For this, this organisation considers different tools like
market research, webinars, trend analysis, benchmarking, SWOT analysis and others.
Set clear goals: It is another stage in which a business needs to set clear goals for the business. It
provides guidance to business managers of Marks and Spencer on where the business wants to be
in the future. These goals should be SMART. Some of these goals of Marks and Spencer are
mentioned below:
 To increase the profitability of the firm by 10% in the upcoming 3 months.
 To increase marketing share of the company by 12% in next 5 months.
 To increase sales in next 6 months with 15%.
Identification of strategies for attainment of goals: In this, the focus of business is over
reviewing of goals of company and also helps them to made list of different factors to be
attainment by company which his created by them according to current situation of business.
there are different strategies to be adopted by firms according to their goals which will assist
them for purpose of improving the present situation of the business (Kumar, Pandey and
Mukherjee, 2021). Like business managers of Marks and Spencer can open discounted stores
which will assist them to overcome of competition present in the market. Business managers of
Marks and Spencer can also focus on developing new marketing campaigns which will boost the
image of the company and allow them to produce according to new designs and trends.
Develop a plan for implementing strategies: For the attainment of the goals of the business, it
is important for them to understand how to implement strategies in an effective manner.
Strategies include actions to be taken by the firm for the attainment of the goals of the
organisation. For the implementation of strategies, Marks and Spencer include time frame,
desired outcomes, responsibilities, actions and resources.
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Measure the result: It is another stage in which the focus of business is on the measurement of
results that occur after the implementation of the plan. It can be done by checking of competition
of activity. There are different measurement processes like increasing profit, and increase the
number of clients in business. These measures to be adopted by business of Marks and Spencer
in their organisation for purpose of measuring the result of the implementation of the strategy.
Recommending change:
On basis of above discussion, there are different changes to be recommended to the business of
Marks and Spencer. These changes to be adopted by the business are mentioned below:
Opening of the discounted store: It is recommended to the business of Marks and Spencer to
open discounted stores of them in the marketplace (Meral, 2019). It will allow businesses to sell
their products at lower prices which allows them to compete in the marketplace.
Developing a new marketing campaign: It is advised to marketing managers of Marks and
Spencer to develop a new marketing campaign for the firm and also focus on developing new
positioning in the marketplace. It is important for business managers of company as Marks and
Spencer is not consider as youth brand among customers and in order to overcome of this,
business needs to focus on developing new positioning.
Adopting marketing trends: It is also important for the business of Marks and Spencer to adopt
new fashion trends in their clothing brand (Ogbechie, 2018). It is important in order to increase
the demand of products among customers. It is also important for businesses as it allows them to
bring more customers to their products and service.
TASK 3
Strategic issues can be described as issues which are unsolved and need decisions in business in
order to clarify issues in future period of time. It also create impact over the direction and course
of business. There are different types of strategic issues faced by Marks and Spencer in order to
carry out its operation. Some of these issues faced by the company are resource limitation, e-
commerce products, strategic focus, culture change, strategic competencies and others. In order
to identify some of these strategic issues in the context of Marks and Spencer, business managers
can adopt Porter’s five forces model which is mentioned below:
Porter’s five forces model: It is one of the tool which is used by businesses for purpose of
analysation of competitive environment of the company. It helps businesses to identify factors
like competitors present in the market, threats for substitutes and new entrants, and threat of the
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bargaining power of suppliers and buyers. An explanation of this model in the context of Marks
and Spencer can be described below:
Competition within the industry: Competition is one of the threats for business that create a
negative impact over the performance of the business. There are a number of competitors present
in the marketplace of Marks and Spencer which can create an impact on the profitability and
marketing share of the business (Rudaya, 2019). Therefore, there is a high threat of this factor to
the business of Marks and Spencer and it is essential for them to control the impact of this factor.
Threat of substitute produced: Substitutes are those products that can be used in place of
produce and offering of the company. These are the products that create threats to businesses as
any increase in process can influence customers to switch to substitute products. Marks and
Spencer is providing clothing and food products to its competitors in the marketplace. There is
not substitute available of these products but customer can substitute it with other band.
Therefore, there is high threat of this factor for business of Marks and Spencer.
Threat of new entrants: New entrants also create impact over business as they came with new
ideas and also capturing more marketing share. Any business can enter in clothing and good
industry but Marks and Spencer is one of large and well established organisation. In order to
compere with this organisation, business needs to have proper knowledge and skills. Therefore,
there is a moderate threat of these factors in the business of Marks and Spencer.
Power of suppliers: Suppliers are those businesses and people who provide raw materials and
supporting products that are required by a business in order to produce final products. There are
number of suppliers from which Marks and spencer are taking produce in the marketplace (Wan,
and et. al., 2019). It will decrease the bargaining power of suppliers to reduce the prices of their
products and service. Therefore, there is less threat of this factor to the business of Marks and
Spencer.
Power of buyers: Marks and spencer is providing premium products to its customers and
therefore targeting a small size of the target market. This business is offering a higher quality of
products and services to its customers that will reduce capability of businesses to reduced prices
of offering of the firm. Therefore, there is less threat of this factor for the business of Marks and
Spencer.
Blue ocean theory:
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It is one of the theories that focus on adopting differentiation and lower-cost strategy in business
in order to open up new spaces in the marketplace and also for creating new demand. It is
focusing on capturing and creating contested market space where competition is not important
for business (Westney, 2021). It provides a view in which industry structure and market
boundaries are not given to businesses and they need to reconstruct them through their belief and
actions. It is one of theories in which demand is created by the business in order to compete. It
provide an opportunity to business of Marks and spencer to get growth. It is a business in which
competition is not required by business and also focusing on creating potential in the
marketplace.
CONCLUSION
From above mentioned project report, it can be concluded that strategic management is one of
the important component for business which assist business in order to identify different factors
that create negative impact over business. In order to identify these factors business includes
internal environment analysis and external environment analysis. In order to overcome of
negative impact of these factors, business needs to adopt different strategies.
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REFERENCES
Books and Journals
Adamova, G.A., Khabib, M.D. and Teplyakova, M.Y., 2020. The problems with information
support of strategic management. In Complex Systems: Innovation and Sustainability in
the Digital Age (pp. 33-41). Springer, Cham.
Akyuz, G.A. and Gursoy, G., 2020. Strategic management perspectives on supply
chain. Management Review Quarterly, 70(2), pp.213-241.
Andreeva, T., and et. al., 2019. Integration of the quality management and strategic management
systems into unified management system of enterprises. Calitatea, 20(171), pp.3-8.
Bénet, N., Deville, A. and Naro, G., 2019. BSC inside a strategic management control
package. Journal of applied accounting research.
Bonsu, S., 2019. Strategic management: The concept of competing with self. Journal of
Marketing and Management, 10(2), pp.20-44.
Chofreh, A.G., and et. al., 2020. Analysis of Economic for Global Energy Strategic
Management. Chemical Engineering Transactions, 81, pp.1369-1374.
Colla, J. and Afonso, P., 2019, July. Towards the Integration of the Production Function in
Strategic Management of Industrial Organizations to Avoid the Efficiency Trap.
In International Joint conference on Industrial Engineering and Operations
Management (pp. 133-142). Springer, Cham.
D’Cruz, J.R., 2018. Strategic Management of Subsidiaries 1. In Managing the multinational
subsidiary (pp. 75-89). Routledge.
Drobyazko, S., and et. al., 2019. Factors of influence on the sustainable development in the
strategy management of corporations. Academy of Strategic Management Journal, 18,
pp.1-5.
Kumar, S., Pandey, N. and Mukherjee, D., 2021. Cross Cultural and Strategic Management: a
retrospective overview using bibliometric analysis. Cross Cultural & Strategic
Management.
Meral, Y., 2019. Strategic Management to Prevent Money Laundering: The Role of Effective
Communication. In Handbook of Research on Global Issues in Financial
Communication and Investment Decision Making (pp. 28-49). IGI Global.
Ogbechie, C., 2018. Strategic management practices in Africa. In Indigenous Management
Practices in Africa. Emerald Publishing Limited.
Rudaya, I., 2019. Issues of strategic management of Russian innovative organizations’
intellectual property. UPRAVLENIE/MANAGEMENT (Russia), 7(1), pp.50-59.
Wan, W.M.K.F.B., and et. al., 2019. Strategic management in fatwa-making process. Academy of
Strategic Management Journal, 18(4), pp.1-6.
Westney, D.E., 2021. MNCs and cross‐border strategic management. Strategic management:
State of the field and its future, pp.301-318.
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