Analyzing Business Strategy of Mark and Spencer

This report analyzes the business strategy of Mark and Spencer, including PESTEL analysis, Ansoff Matrix, stakeholder analysis, VRIO model, and Porter's Five Force Model. It also evaluates the impact of macro environment on the organization and its strategies, and analyzes the internal environment and capabilities of the organization.

Business Strategy

Table of Contents
INTRDUCTION..............................................................................................................................4
TASK...............................................................................................................................................4
Applying appropriate frameworks and analyse the impact and influence of the macro
environment on an given organization and its strategies............................................................4
Analyse the internal environment and capabilities of a given organization using appropriate
frame works.................................................................................................................................8
Applying porters five forces model evaluate the competitive forces of a given market sector
for an organization....................................................................................................................10
Applying range of theories, concepts and models, interpret and device strategic planning for a
given organization.....................................................................................................................11
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRDUCTION
Business strategy is defined as the group of actions which is utilized by the organization
for increasing the productivity in their business activities. These actions are also essential for
achieving the company's vision, mission and objectives in short duration. Due to the effective
use of marketing strategies, reputation of organization are easily sustained in market for long
time. The chosen company is Mark and Spencer for evaluating the business strategies effectively
(Chen and Hsieh, 2021). The company was established in 1884 and is headquartered in United
Kingdom. This company is specialized in various products which includes home appliances,
food products, fashionable cloths and others. This report will cover appropriate framework and
analyse the impact and influence of the macro environment on a given organization and its
strategies, analyse the internal environment and capabilities of a given organization using
appropriate frameworks.
TASK
Applying appropriate frameworks and analyse the impact and influence of the macro
environment on an given organization and its strategies
PESTEL Analysis -
It is tool which is used by the organization for analysing the macro external factors
effectively. PESTEL stands for political, economic, social, technological, environmental and
legal which are described below -
 Political – It refer to those elements which impact the organization in political manner
which includes government rules and regulation, policies and others (Cosenz and Bivona,
2021). In context to Mark and Spencer, management must use some specific policies
which includes trade, safety and insurance policies of UK government in proper manner.
Policies includes inquiry and complaint policy, insurance policy, safety and security
policy and others. But out of these safety and security policy is the highly effective policy
for organization. It leads to increase the employees productivity level at large scale in the
workplace area.
 Economical – It is concerned with those factors which effects the productivity and
performance of organization economically. It includes interest rate, inflation, salary of
employees and others. In context to Mark and Spencer, currency fluctuations in various

countries effects the performance of organizations and due to this the prices of their
products are very high. Due to this company are able to maintain stability in their profit
margin and performance level for long time. But in negative aspect due to increasing
prices in their product only limited customers are able to buy their product which leads to
decrease their productivity easily.
 Social – It is connected with those elements which influence the attitude and behaviour of
customers which effects the organization socially (Hafsir, Brasit and Kadir, 2021). It
includes culture and subculture, social class, family and others. In context to Mark and
Spencer, management must facilitate wide range of unique products to their customers
according to their desires and wants.
 Technological – It basically refer to the use of advanced technology and updated
equipment by the organisation. In context to Mark and Spencer, management must use
advanced AI technology, latest software, and various apps for increasing the convenience
of customers for buying their product. In this way the sale of the product are easily
increased at large extent in various locations. With help of using these software, apps and
other technologies satisfaction level of customers are highly increased regarding their
product and services in long term.
 Environmental – It is concerned with those factors which effects the organizations
productivity and performance natural manner. It includes temperature, population
density, pollution, food etc (Hartwell and Devinney, 2021). In context to Mark and
Spencer, management must green policy plan for reducing the waste in their workplace
area and also for increasing the use of eco-friendly products. Due to using this plan
employees are able to put their full effort in their job role which leads to sustain the
company's vision, mission and objectives in long term.
 Legal – It basically refer to the legal norms and rules and regulation of government
which effects the performance and productivity of organization in legal manner. In aspect
of Mark and Spencer it is necessary for management that they sincerely follow the
different types norms and regulation for maintaining transparency in their activities.
Because when firm maintained transparency in their functions then definitely
management easily maintain positive relation with stakeholders such as suppliers,
customers and government for long time.

Ansoff Matrix -
It is a tool which is used by management of Mark and Spencer for developing the future
and success growth of organization (Irawan, Aminda and Arsyati, 2021). Here company used
some specific strategies for increasing the goodwill of company which are explained below –
 Market penetration – It refers to successful selling of a services and product in existing
market. In relation to Mark and Spencer, authority must apply different types of strategies
to increase the popularity and sale of their products at wide range. Strategies includes
facilitating beneficial schemes, providing valuable price and others. With help of using
these type of strategies customers are easily attracted in large number for buying their
product.
 Market development – Here company are focusing on increasing their market share or
profit with help of existing product (Liu and Murphy, 2021). Therefore, it is necessary for
the management of Mark and Spencer, that they must utilize some specific strategies for
enhancing the reach of their services and products to their consumers globally. It includes
effective use of AI technology, online portals and other digital platforms. With help of
these facilities convenience of consumers is highly increased through online mode for
buying their products from any location.
 Product development - Here company are mainly focusing on developing new and best
quality product with unique and creativity. In relation to Mark and Spencer, for
developing that type of product management must made huge amount of investment in
their R&D department. Due to facilitating quality product to customers their profit are
easily sustained at maximum level for long duration.
 Diversification – In this stage management are focusing on both developing new market
and launching new product. In respect of Mark and Spencer, they must increase the
availability of their product at wide range in different locations in both offline and online
mode. In this way the expansion and goodwill of company are easily enhanced at various
location in fast manner.
Stakeholder analysis -
It is defined as a process where different types of data are gathered and analysed
systematically (Pett, Francis and Veatch, 2021). This analysis is mainly divided into four stages
which are described below -

 High interest, high power – In context to Mark and Spencer, CEOs, board of directors
and other senior employees are comes under this category . Due to their presence
company are always run in smooth manner. Because they have the full power for taking
any type of final decision. Due to taking such type of decisions risk are highly reduced in
business activities at large scale.
 Low interest, high power – In relation to Mark and Spencer, investors are comes under
this category because only they have low interest and high power to control the business
and increase the revenue. Because for organization investors for sustaining their profit
effectively. For maintaining good relations with investors company always focused on
maintaining standard and quality in their operational activities and services which leads
to increase positive relation with investors for long duration.
 High interest, low power – In context to Mark and Spencer, only customers are comes
under this category (Primasari, 2022). Because consumer is one of the stakeholder who
only have the power for buying the company's product in desired quantity. During the
time of buying the product they did not have power to conduct interference in business
activities .
 Low interest, low power – In context to Mark and Spencer, lower level workers are
comes in this category. Because they are only stakeholder who are not able to utilize
their full interest and power. They only have the right to follow the orders of top level
management. Due to facing this problem they face lot of stress in their job which is
given by senior officers.
Analyse the internal environment and capabilities of a given organization using appropriate
frame works
VRIO Model
It is a technique which is utilized by organization for identifying their competitive
advantage and potential in market. The factors which are important for analysing the
organization systematically are -
Ability and Valuable Rare Imitable Organised

Resources
Workers Yes Yes No Yes
Financial
Resource
Yes Yes Yes Yes
Patents Yes No No Yes
Effective global
presence
Yes Yes Yes
No
 Valuable – It refer to those factors which is highly valuable for Mark and Spencer which
includes financial resource, worldwide presence, workers and patents. With help of these
factors organization are able to run their services and operational activities smoothly. Due
to this company strong relationship are easily sustained between customers for long time.
 Rare – In relation to Mark and Spencer, authority is highly focused on those factors
which is essential for gaining competitive advantage in market (Rodrigues, Ruivo and
Oliveira, 2021). It includes workers, financial resources and worldwide presence. With
help of these elements the queries and complaints of the customers regarding the
company product in time. It leads to increase company profit easily.
 Imitable – It is basically refer to engaging the business activities or functions with help
of considering different types of factors. It includes workers and worldwide presence and
due to due to engaging employees in their functions company are able to sustain their
vision, mission and objectives in long run.
 Organized – It is the final stage of this model and in this stage Mark and Spencer is fully
focused on whole organizational functions. It means for running the whole company
smoothly management must consider some specific factors which includes patents and
workers.
Mckensy's Model -
It is a tool which is utilized by company for enhancing the productivity, performance and
work efficiency of company in long term. In this model mainly seven stages are involved which
are described below -

 Structure – Here, structure refers to overall infrastructure of organization which is
highly essential for increasing the productivity of employees (Shah, N. and Soomro,
2021). Overall infrastructure refer to the proper coordination between all departments for
doing the work systematically and also for facilitating effective service to customers. Due
to maintaining effective infrastructure responsibilities and roles of the workers are
systematically distributed and task are easily finished in time.
 Skills – In aspect of skills Mark and Spencer must use talented or skilled employees in
their workplace area. Here skills refers to analytical skills, communication skills and
others. Due to the use of these type of skills effectively by their talented workers
resources of the organization are properly utilized for long period.
 Style – In relation to Mark and Spencer manager or authorities must utilize suitable styles
for managing employees within organization effectively (Shah and Soomro, 2021). Due
to effective management styles which includes participative, authoritarian, transactional
and other styles communication between all levels of employees are developed
effectively for long time.
 Strategy – In context to Mark and Spencer, authorities must use various types of
strategies for run the functions of the organization smoothly. Due to the use of effective
strategies popularity of their product and brand image are easily spread internationally
within short duration.
 Shared values – It is basically refers to the belief of organization which helps to
facilitate best quality product to consumers (Simbolon and Hasibuan, 2021). In context to
Mark and Spencer, their value, vision and objective helps the employees to finish a
common purpose.
 Systems – It is basically refers to the advanced technology or equipments which is
utilized by Mark and Spencer for analysing the problems of workers. Due to effective
analysis organization easily understand the real problems of their employees.
 Staff – Here staff refer to all categories of employees who are working in Mark and
Spencer. In respect of above mentioned company workers are highly responsible for
increasing the productivity of organization at maximum level.
Resource based review -

Resource is basically connected with materials or equipments which is used by
organization for sustaining their good performance level in long term (Van Zeebroeck,
Kretschmer and Bughin, 2021). In context to Mark and Spencer resources are mainly distributed
in two parts, first is tangible resources and other one is intangible resources. Tangible resources
are connected with those resources which is utilized by company in tangible manner which
includes cash, machinery and others. But in context to intangible resources it is connected with
resources which are not able to see and touch only able to feel. It includes intellectual property,
goodwill, brand recognition and others.
Applying porters five forces model evaluate the competitive forces of a given market sector for
an organization
Porters Five Force Model -
It is a method which is used by Mark and Spencer for analysing their present position in
the retail market or sector and between other retail competitors. In relation to this company,
management are mainly dealing with fashionable cloths, food and home products and due to
facilitating these products to customers. This model is basically divided into five stages which
are described below -
 Threat of new entrants – It refer to bringing new innovative and attractive product for
gaining high market share which create high threat for organization. In context to Mark
and Spencer and it is low because their brand value and reputation are already well
established in market or between customers. Because this is one of the company who
always facilitates best quality product and services to customers in time. Due to having
good reputation company are always loyal towards company for long time.
 Threat of substitute - It refer to increasing threat for the firms by the competitors with
introducing similar products at low price (Verbeke and Yuan, 2021). In context to Mark
and Spencer it is high because they facilitates value proposition in their substitutes in
their product and services which is totally different offerings from the industry.
 Bargaining power of suppliers – It refer to in which extent power and control a
company's supplier has over the potential to raise its prices or to decrease quality of
purchased goods and services. In context to Mark and Spencer, it is low because in
consumer service sector suppliers utilize their negotiating powers effectively for
extracting higher prices from the company in retail field.

 Bargaining power of buyers – It refer to in which extent consumer are able to put the
organization under pressure which impact the customer sensitivity to price change
(Wibowo, Putranta and Purnomo, 2021). In context to Mark and Spencer, the small
powerful customer base is the higher bargaining power of customers. Due to this the
ability of the organization is easily increased at higher rate to seek increasing offers and
discounts.
 Rivalry among existing competitors – It is the last force of this model and in this force
intensity of current competition is described in market. In context to Mark and Spencer, it
is high because authority face lot of competition in the market for selling their product.
Because other brands are also providing the same products in all segments for example
TESCO, Sainsbury and others.
Applying range of theories, concepts and models, interpret and device strategic planning for a
given organization
Porters generic strategy -
It is the another type of method which comes under the category of porters model and this
model was developed by Michael Porter in 1980. The stages involved in this strategy are
described below -
 Cost leadership – Here company are focusing on providing best quality product and
services to customers with low cost and average price. Due to maintaining flexible price
in their products customers easily attracted in large number and also sustained positive
relationship between consumer and company in long term. In context to Mark and
Spencer, management must use this method for increasing the sale of their product at
higher rate.
 Differentiation – It means providing quality and unique products to consumers at wide
range which is totally unique from other competitors’ brand (Yang, 2021). In context to
Mark and Spencer, management must diversify their product at wide range with fixing
different prices. In aspect of differentiation management must facilitate cloths to
customers with unique designs and colours which is totally different from other
competitors. In this ways consumers are easily attracted in effective manner for buying
their products at large quantity.

 Cost focus – It refer to organization focusing on the choices of narrow competitive scope
or the particular area for enhancing the sale of their product at higher rate. The other
important point is that this strategy is highly effective in comparison with others. In this
strategy company are also able to develop strong communication with consumers in long
term.
Bowman's strategy clock -
This model is developed by Cliff Bowman and David Faulkner in 1997 and it is also
known as competitive strategy. In this model management mostly focused on those factors which
is essential for increasing the revenue of organization in short duration which are described
below -
 Low price and low value added – It refers to facilitate value in their product to
customers with help of maintaining low and average price in their products by
organization. In context to Mark and Spencer, that they must utilize thismethod for
decreasing competition in market. Due to keeping flexible price revenue of the firm are
easily increased at maximum level in long term.
 Differentiation – In this stage unique and new product are sold by the organization
which is totally different from others competitors’ products (Wibowo, Putranta and
Purnomo, 2021). When the new product is introduced and sold by the management in
market effectively with help of highlighting the product specifications and features users
are easily attracted in large number. In context to Mark and Spencer, management must
facilitate unique features in their product which leads to increase the wants and desires of
customers at maximum level.
 Focused differentiation – It basically refer to focusing on Nish market and in this
market management are targeting particular area and specific customers for increasing
the sale of products. In context to Mark and Spencer, management are mainly focused on
women customer segments . Because the women products of this company are highly
popular and due to this their products are easily sold in large quantity easily in small
market.
 Monopoly pricing – Here management are mostly focusing on facilitating their services
and products without facing any type of difficulty. Because in this stage zero competitors
are there in front of company. In context to Mark and Spencer it is the largest

supermarket in UK and due to this their productivity are easily sustained for long in
market. Due to maintaining well established infrastructure the coordination between all
level of employees are effectively maintained and task are also finished in time.
 Risky high margin – In context to Marks and Spencer it is high because they always
facilitates their product to customers at high price or premium range. Due to maintaining
high price in their product at wide range chances are easily increased for decreasing the
customer loyalty towards company at higher rate.
 Loss of market share – In context to Mark and Spencer it is low because their goodwill
or brand reputation are already well maintained in market or between customers (Zhang
and Yao, 2021). Because they always facilitates best quality product to customers which
leads to increase their market share easily at maximum level.
 Hybrid - Here the management of Mark and Spencer always tried to sustain their good
position in market or between other competitors effectively. Due to maintaining positive
brand image in customers mind the sale of their product are highly increased within short
period.
Strategic Planning of a Mark and Spencer -
Summary of the products -
The organization is going to launch unique and new product in market and the name of
this product is ethnic wears which is designed for all categories of customers. The mission of
this organization of this organization is to facilitate good quality products to their new and
existing customers for enhancing satisfaction level of customers in long term. But the vision of
this company is to sustain standards in their product and services in long run.
Objectives -
 It also to increase the profit of organization in short time.
 Effective business strategy helps to increase the reach of their products to customers in
every location.
Tactics
Marketing mix 4 P's -

It refers to the set of actions which is utilized by the organization for enhancing their
revenue and market share in long term. Marketing mix is basically divided in to 4 parts which are
explained below -
 Product – In relation to Mark and Spencer, they are going to launch new product in
various locations which is called ethnic wears.
 Price – In this stage management need to premium price in their product with help of
including various schemes and offers to customers. Due to fixing premium price their
revenue are easily increased at maximum level in short duration.
 Place – It refer to identify suitable locations which is essential for organization for run
their activities smoothly. In aspect of pace Mark and Spencer used digital platform,
various apps and advanced equipments for deliver their product to customer in fast
manner.
 Promotion – In context to Mark and Spencer, Management must use various
promotional strategies which includes online advertising, email marketing, personal
selling and others. Due to use of these promotional tools customers are easily attracted in
large number towards the company product.
Controlling and Monitoring -
For evaluating the performance of worker’s management must apply this technique and
the name of this technique is Key Performance Indicator. Due to using this technique functions
of the company are done in fast manner and target of employees are finished in time.

CONCLUSION
From the evaluation of above data it is concluded that effective strategic plan and
business strategy is essential to company for achieving their success, vision, mission and
objectives in short duration. With help of effective strategies organization are able to decrease
the risk in their service and departmental activities at maximum level. In the process of business
strategy organization are also able to facilitate reliable and accurate information to customers
within low time regarding their product and services. Due to facilitating meaningful information
the trust of the consumers are easily sustained towards company for long time.

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