Analyzing the Impact of Macro and Internal Environment on Marks & Spencer's Strategies

Business Strategy
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Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..............................................................
M1 Critically analyse the macro environment to determine and inform strategic management
decisions.................................................................................................................................6
M2 Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s capability.......................................................................................................10
P3 Applying Porter’s Five Forces model evaluate the competitive forces of a given market
sector for an organisation.....................................................................................................10
M3 Devise appropriate strategies to improve competitive edge and market position based on
the outcomes.........................................................................................................................11
P4 Applying a range of theories, concepts and models, interpret and devise strategic planning
for a given organisation........................................................................................................11
M4 Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives..............................................................................................................................13
D1 Critically evaluate the global business environment, including the opportunities and
challenges faced by organisations .......................................................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Strategic planning is the process of creating a desired future for organisation. Strategic
planning involves assessment of where is company standing in current situation, and in which
environment firm operates (Kurpiela and Teuteberg, 2022). Marks & Spencer was founded by
Michael Marks and Thomas Spencer in year 1884. Marks & Spencer have more than 959 stores
across the UK. The firm is dealing in retail industry which delivers products and services related
to food, clothing and home ware appliances etc. In this report, different organisational strategies,
SWOT and PESTLE analysis of Marks & Spencer analysed compared to competitive world.
Moreover, it encompasses Porter's five model, strategic planning and application of different
theories, concepts and models expressed in context of given organisation and creation of
strategic management plan which has tangible strategic priorities and objectives.
MAIN BODY
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies.
Pestle analysis of Marks & Spencer
Pestle analysis of Marks & Spencer analyses the business scenarios. Pestle analysis
evaluates various kinds of external factors such as Political, economic, social, technological,
legal and environmental factors.
 Political Factors- Marks & Spencer have its business in various countries. The two main
factors which can affect company politically are political instability and tax rate. If
government increase tax rates, then it will increase the cost of the product and have
negative implication on total sales of the company.
 Economic factors- Increment in inflation rate will effect a company economically. This
factor includes inflation rate, Interest rate etc. UK has largest economy in the world.
Monetary policies of country are properly managed by government but financial crisis
can lead to low demand for high quality goods due to low income of consumer.
 Social factors- Buyer purchasing standard influenced by changing trend of products. In
global business environment changes took place rapidly. Therefore, company should
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ensure that with changing trends in market company should also modify its products as
per marketing trends and customers demand.
 Technological factors- M&S launched Technology Transformation Programme which
help firm in becoming a digital business deliver which provide customer a different
experience. This programme is designed to acknowledge faster and commercial
technology that will help in the growth of business. The company needs to focus on
simplifying M&S technology supplier base.
 Legal Factors- Legal factors are those which emerge due to changes in legal environment
such as consumer protection act, Food safety act etc. Marks & Spencer should follow The
Consumer Rights Act 2015 in order to save customer from unfair trading and should
follow The Food Safety Act 1990 in supply of good quality product to its customers.
 Environmental Factors- The issues related to climatic conditions included in
environmental factors. Marks & Spencer has built its own Green policy which will have a
positive impact on social surrounding and people on earth.
SWOT analysis of Marks & Spencer
SWOT analysis is taken into consideration so as to analyse and determine the current position of
the company in the concerned business environment (Stacchini, Guizzardi, Mariotti, 2022).
Strength
 Private label: - Marks & Spencer have their own private labels like other premium brands
Louis Vuitton, Vero mode and Versace. These private labels prove helpful in making
customers familiar with the company Marks & Spencer.
 Innovation:-Innovation in Marks & Spencer is also synonymous with creativity and
communication and people across levels are motivated and encouraged to think out of the
box and suggest new innovative ideas whenever they feel necessary. The spirit of
innovation and motivating employees for innovation is the biggest strength of Marks &
Spencer
 Diversity: - Marks & Spencer have 80,000 employees around the world who work in
their showrooms and offices. The company encourages diversity and thus have
employees from all castes, religion and genders. The company also ensures that there is
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