Strategic Management Analysis of Marks & Spencer

The report analyses the strategic position of Marks & Spencer in the fashion retail industry of UK. The report includes PESTEL and Porter's Five Forces analysis, SWOT analysis, and recommendations for achieving competitiveness.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT
Executive Summary
The report is based on the analysis of strategic position of an organization in the industry.
The company that has been taken into consideration for this analysis is Marks & Spencer,
which is a fashion retail based organization with its origin in the United Kingdom. The
strategic position of the company has been analysed in the report. The external environment
of the company has been analysed with the help of PESTEL framework and the industry has
been analysed with the help Porter’s Framework. Strategic capabilities of the company have
been analysed in the report based on which the strategic direction is decided. The success and
failures of the company has also been an important part of the report.

2STRATEGIC MANAGEMENT
Table of Contents
Introduction....................................................................................................................3
Corporate Strategy.........................................................................................................4
Goals and Objectives..................................................................................................4
Mission and Vision....................................................................................................4
Strategy of the firm....................................................................................................5
Analysis of the strategic position of Marks & Spencer..................................................7
Analysis of external environment using PESTEL.....................................................8
Analysis of the fashion industry of UK....................................................................10
Strategic capability of Marks & Spencer.................................................................12
Competency Framework..............................................................................................13
Strategic group analysis...............................................................................................14
Critical review of the strategic direction of Marks & Spencer....................................15
Progress to be made by the company in a period of six years.................................16
Critical discussion of successes and failures of Marks & Spencer..............................18
Strategic Objective Plan...............................................................................................19
Recommendations to achieve competitiveness........................................................20
Conclusion....................................................................................................................21
References....................................................................................................................22

3STRATEGIC MANAGEMENT
Introduction
Marks & Spencer plc which is also known as M & S is fashion retail organization of
the British origin which has its operations all over the world. The organization is listed in the
London Stock Exchange. Marks & Spencer mainly specialises in the sales of products based
on clothing, food based products and home products as well. The company was established in
the year 1884 by Thomas Spencer and Michael Marks. It began the sales of branded products
in the year 2008.
Marks & Spencer currently has more than 900 stores all over the United Kingdom.
The company went on to become the first retailer of British origin to register a pre-tax profit
of more than 1 billion dollars (Marksandspencer.com. 2018). The organization had seen
sudden loss after the year 1998 which was quite surprising for the shareholders and the
customers of the organization as well.
The clothing-based sales of the organization has decreased in the recent years due to
the economic issues in UK. The sales of the company based on the food products has
however increased in the recent times. The report will be mainly based on the analysis of the
environment in which Marks & Spencer has its operations. The external environment will be
analysed with the help of PESTEL framework. The industry will be analysed in an effective
manner with the implementation of the Porter’s Five Forces Model.
The analysis of external environment will thereby be helpful for the discussion of the
ways by which the organization can develop strategies which be helpful for its operations in
the future. The recommendation based on successful operations in the future will also be
provided in the report. The sustainable operation of Marks & Spencer is thereby dependent
on the ways by which the company is able to operate with the proper usage of its resources
for different purposes (Marksandspencer.com. 2018).

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Corporate Strategy
Goals and Objectives
The goals as well as objectives of an organization form the base of it and thereby
makes it crucial that the company is headed towards a certain achievement level. The goals
and objectives of Marks and Spencer’s can be stated to be as follows:
1. The Marks and Spencer’s organization aims to improve its employee positioning as
present in the firm and aims to ensure that the firm is successfully able to manage the
different employees as present in the workplace and see to it that this staff is
successfully able to fulfil the goals of the company at large. Hence, Marks and
Spencer’s aims to ensure that the firm will successfully be able decrease the employee
turnover rate by 20% by the year 2020.
2. Other than this, Marks and Spencer’s aims to ensure that it is successfully able to
manage the different operations of the business and that it is able to regain its
leadership with respect to which it has been losing out. Moreover, Marks and
Spencer’s wants to translate this scale and ensure that it is able to make goods of
superior quality, value as well as appeal of the goods. With this, Marks and Spencer’s
would like to increase its market share by 20% by the year 2021.
3. Lastly, the Marks and Spencer’s can greatly improve upon the sales of the firm and
make more room for the sales per foot. The sales per foot can be taken to be as a good
objective of the company and the firm thereby aims to ensure that , it is able to
increases its sales percentage per square foot by 10% in the next one year.
Mission and Vision
The mission of the Marks and Spencer Company is to provide the different customers
with the different new quality products in areas of food, financial services along with cloths.

5STRATEGIC MANAGEMENT
Furthermore, the other aspect is to deliver high quality foods which will be beneficial for the
gaining competitive advantage in the entire market. The products are being sold to the
customers at an affordable rate and which are being received by the different customers and
they will be good value for the money as well. The mission of the organization is being
achieved by the organization through providing inspirational quality to the customers as this
will be beneficial for the overall success of the organization in an efficient manner (David
and David 2017).
On the other hand, the vision statement of Marks and Spencer is to become the
standard against which the other competitors are being measured. Furthermore, as per the
vision statement of the respective organization, this can be analysed that organizational goals
can be achieved by the companies which will increase the sales along with market share in
the retailing business effectively. Additionally, the vision of the company is mainly into
continuing differentiation strategy which will help them in delivering proper services and
become the largest sustainable quality of goods and services to the customers effectively.
Strategy of the firm
The generic strategies can be rightfully described as those strategies which are
generally followed by the organization in order to ensure that the firm is successfully able to
achieve its objectives at large. The different generic strategies which are available to the
Marks and Spencer’s are as follows:
1. Low cost retailer: In the given type of the strategy, the organization can provide goods
to the different customers at the lowest price as available in the market, so that the
firm is successfully able to gain a leader position in the market (Serrador and Turner
2015). However, this requires economies of scales and the fact that the technology
needs to be applied in the production procedure at large.

6STRATEGIC MANAGEMENT
2. Differentiation strategy: The differentiation strategy aims to ensure that the products
of the company are quite different from that of the different competitors such that the
product can be sold at a premium price as well.
3. Focus strategy- On the other hand, the focus strategy aims to concentrate on the one
particular niche market of the firm (Furrer 2016).
Out of these strategies, the company, Marks and Spencer’s uses the focus generic
strategy whereby the company aims to concentrate on a particular target market base which
can be defined as the executive crowd and thereby provides high end products which are
fresh in stock (Islam 2016). Moreover, the firm also offers attempts to make use of the
differentiation strategy which tends to differentiate it from Tesco, ASDA and top shop.

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Analysis of the strategic position of Marks & Spencer
Strengths
 The brand image is clear in nature as
they have tried in positioning
themselves in the premium brand
products which are being sold by the
company in the entire market
 Multichannel Presence is the other
strength wherein they have
different options for franchising
and this has helped the company
in managing their activities
effectively
Weaknesses
 There is low level of satisfaction
among the different customers in the
market which can be negative for the
entire organization. There are no
such return policies which are being
not provided to the customers
 There is huge inability to penetrate
successfully ion the overall foreign
countries and this can create
negative impact on the different
kinds on the purchases of customers
Opportunities
 There is inclusion of different new
segments which will be beneficial
for the overall success of the firm in
comparison to the other competitors
in the market
Threats
 There are different major
competitors in the market which can
create negative impact on M&S such
as Zara and UCB which can be
competitive in nature

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From the SWOT analysis, this can be analysed that there are different kinds of
strengths of the company such as the premium brand image which can be competitive in
nature for them to become more user friendly in the entire market. The company has tried to
position themselves as the most premium brands in comparison to the other competitors in
the entire market. As per the present scenario, this can be analysed that more than 80% of the
operating goods and this will be beneficial for the overall success of the firm in the
competitive market. Additionally, in the present scenario, this has been noticed that M&S has
been trying to utilize the organic clothes and this has helped them in increasing and
improving the effectiveness of the energy
Analysis of external environment using PESTEL
Political factors – The political factors are mainly based on regulations that are
formed by the government in order to conduct the business operations in a successful manner.
The running position of the retail organizations are thereby affected by political activities.
The trends that are applicable in the shopping and retailing based activities can play an
important part in the ways by which organizations operate. The retail industry thereby has to
face some major challenges that can affect their profitability in an adverse manner (Barros,
Hernangómez and Martin-Cruz 2016).
Economic factors – The strength of the economic situation within a country is an
important factor that is able to affect the operations of retail business. The economic situation
thereby has a direct impact on the successful operations of retail organizations. The change
which takes place in the economic situation of country is an important factor that is able to
affect the operating processes of the organizations. The foreign exchange rate in the country
is also able to affect different operations of the organization in a positive or a negative
manner (Daspit et al. 2017).

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Social factors – The current lifestyle and social change that takes place in the external
environment is an important factor that is able to influence the sales of retail organizations.
The wants and attitudes of the clients are also important factors which play a major role in the
ways by which organizations are able to operate in the environment. The customers have
become much more aware of the products and their demands are changing with a rapid pace.
The organizations thereby need to provide products that can match the desires of customers
(Demir, Wennberg and McKelvie 2017).
Technological factors – The current business environment has gone through many
technological changes and advancements. This has led to the changes in the latest
technologies that have been implemented by these organizations in the industry. The new
technologies have been able to create a special position in the market and in all the spheres of
life as well. The online shopping platforms thereby play a major part in the ways by which
the organizations are able to reach the customers with the help of their products. The new
products and services can be introduced to the customers with the help of online platforms
and this is also able to increase the reach of company as well (Durand, Grant and Madsen
2017).
Legal factors – The legal factors are able affect the retail industry of UK in such a
manner which can lead to the formulation of different policies. The legal implications that
have been implemented by the UK government is thereby important for decreasing the illegal
trafficking based processes. Consumer protection based laws need to be followed by the
organization so that they are able to provide the best levels of services (Dyer et al. 2015).
Environmental factors – Different forms of energy which are used by the retailers in
UK can cause many environmental concerns. The products that are offered in retail shops are
mainly prepared or grown in the environment and it is affected by the changes that have

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occurred in the trends. The government has also imposed ban on different kinds of the gases
or sprays so that the effect of operations of these retail stores on the environment can be
reduced (Engert, Rauter and Baumgartner 2016).
Analysis of the fashion industry of UK
Threats of the new entrants – The new entrants in UK fashion retail industry are
able to introduce new and innovative products and services. This has put immense pressure
on the low pricing based strategy that has been formulated by Marks & Spencer. The
challenges that are faced by the organization due to the entry of new organizations thereby
need to be faced by Marks & Spencer in an efficient manner. Increasing the levels of
innovation and introducing new services and products can play an important role in facing the
new entries in the industry. The company thereby needs to build effective levels of barriers
which can help in creating a competitive position in the retail industry (Dobbs 2014).
Bargaining power of the suppliers – Raw materials that are required by the fashion
retail organization of UK are acquired by Marks & Spencer from huge number of suppliers.
The suppliers are however in a dominant position in the industry and they are able to decrease
the margins based in different products that are offered by the organization. The power of
suppliers can be reduced by the organization with the creation of an efficient supply chain
which consists of multiple number of suppliers. The company can also experiment with the
designs of products in order to increase its margins. The formation of an efficient supply
chain and huge number of suppliers will be an effective step in decreasing the effect of
suppliers and their power to affect the prices of raw materials (Ethiraj, Gambardella and
Helfat 2018).
Bargaining power of the buyers – The buyers in the fashion retail industry are
highly demanding in nature and they tend to get the best offers at lowest prices. This has

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increased the pressure on Marks & Spencer based on the ways by which the company is able
to operate in the external environment. The rapid innovation of new products is also an
important part of the ways by which the company can aim at developing the customer base.
High number of buyers of the organization will be helpful in decreasing their power of
bargaining in an effective way. The development of a huge customer base can be an effective
part of the successful operations of the organization in the competitive retail industry of UK
(Dobbs 2014).
Threats from the substitute products – The retail industry consists of many
organizations of similar types which are able to provide highest levels of products and
services to the customers. The substitutes of the products that are offered by the organizations
are easily available in retail market. This threat can be reduced by the company by making
the operations service oriented in nature rather than operating only in a product oriented
manner. This will help Marks & Spencer to create a profitable position in the market within a
short period of time. Marks & Spencer can effectively create a competitive advantage in the
market with the help of innovative services that can be provided to the customers (Frynas and
Mellahi 2015).
Rivalry among the existing players – The retail industry of UK is highly
competitive in nature and this has increased the levels of rivalry among the organizations
which operate in the environment. The rivalry levels are thereby able to decrease the prices of
products and profitability levels as well. The organization can mitigate this threat with the
help of a sustainable differentiation which can be developed for the purpose of competing in
an effective manner. The levels of collaboration that is created with the other organizations in
the industry can also play an important role in the reduction of rivalry levels among different
organizations. The levels of rivalry among the organizations which operate in the retail

12STRATEGIC MANAGEMENT
industry of UK can be reduced with the help of different and unique products or services that
can be offered to the customers (Hill, Jones and Schilling 2014).
Strategic capability of Marks & Spencer
The development of proper and authentic strategies is based on the ways by which the
company is able to analyse the external environment in an effective manner. Proper business
strategy thereby plays an important role in the formation of an effective structure of the
organization. The major strategy that has been implemented by Marks & Spencer in its
operations can be termed as the value price strategy. The organization is mainly known in the
market for serving the middle class customers. The supplier base of the company is mainly in
Britain where Marks & Spencer has been able to create an efficient supply for providing
effective service to the customers within the stipulated time (Hitt and Duane Ireland 2017).
From the resource-based perspective, this can be identified that this is one of the most
strategic choices which has helped the company in becoming more appropriate in their
approach. Firstly, this is essential in nature for M&S that building of the different capabilities
is not possible in vacuum and this is inclusive of the external and internal environmental
analysis which is essential in managing the different operations effectively. Marks & Spencer
has been highly profitable in the different kinds of aspects and this has helped the
organization in becoming more effective in the different kinds of operations in the
competitive business environment and this will become one of the major opportunities for
Marks and Spencer organization which is operating in the overall competitive environment
(Hill, Jones and Schilling 2017).
Albers et al. (2017), have commented that there are unique kinds of resources and
capabilities which are being maintained by M&S in which the brand reputation plays a major

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role in managing the various activities efficiently. The loyalty of the employees is being
taken into consideration which is essential and efficient in nature in managing the effective
kind of management structure in the organization which is combined with the effective
system of the management. With the help of the SWOT analysis, this can be analysed that
there are various types of the higher quality and low-cost products which are being sold to the
customers in the market (Yorio, Willmer and Moore 2017).
Marks & Spencer has been able to form a group of manufacturers who are able to
adhere to the quality-based levels that have been set by the management. The company has
also been able to maintain effective relationships with the suppliers in order to provide the
lower prices to customers. The inspirational standards that are promoted by the organization
are based on service, products, price and quality. The main part of the strategy that has been
developed by the company is related to the lower prices of products that are affordable for all
types customers. The organizational culture of Marks & Spencer has been developed with the
help of its effective business strategy which is mainly a reflection of the taken for granted
style that has been developed by the employees (Hubbard, Rice and Galvin 2014).
Competency Framework
The core competencies that have been created by an organization play a major role in
the existence of Marks & Spencer. The major core competencies of Marks & Spencer mainly
include, reliability, quality, high value and the trust of customers. These core competencies
have been able to provide a profitable position in the retail industry. The changes that have
been made by Marks & Spencer in the prices of products has played a major role in creating
its competitive advantage in the retail market. The efficient marketing and sales strategy that
has been implemented by Marks & Spencer is important for the company to operate in the
industry (Karadag 2015). Along with this the core competency as possessed by the firm will

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be made use of by using the Hudson Competency Framework model which has been given as
follows:
Competency Relevance to Marks and Spencer’s
Information Management The competencies relate to that of
processing of information and data which
are as follows:
Capability to process information
Able to make use of the data available
Formulation of strategies
Task Management These competencies refer to the competency
of managing the task flow.
Organized
Role oriented
People management These refer to the management of people in
the firm and in this case the organization
needs to be consistent, considerate, trust
worthy and accurate (Murray 2014).
Interpersonal management The relationship between the different
employees need to be strong enough and
thus the organization must successfully be
able to manage the relationship between the
different departments
Personal management Lastly, this can be described as the
competency to manage oneself which
analyses the ability of the firm to manage
itself on the whole.
Strategic group analysis
As commented by Karadag (2015), this can be analysed and identified that the
strategic group analysis is being performed by the different organizations as this will assist
them in understanding their position in the entire competitive market. The different analysis
of the underlying factors is required to be analysed and identified in order to determine the
profitability of the organizations along with analysis of the competitive dynamics of the
industry in an appropriate manner as well. Additionally, the strategic groups can be created
which are based on various kinds of direction which are as follows:
 Specialization

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 Technological Position
 Vertical Integration
 Government Relationship
 Services
 Position in terms of cost
 Quality of the product
From the above, this can be analysed that there are different kinds of factors which are
essential and responsible for the growth of the M&S and this will be helpful in maintaining
competitive position in the entire competitive market. The vertical integration can play a
major role in M&S which will be helpful in gaining control over the suppliers which will be
suitable for increase the power of the firm in marketplace and reduce the distribution channel
costs effectively as well.
Additionally, the product quality along with service plays a major role in managing
and increasing the overall satisfaction of the different customers who are the target and major
customer base in the M&S (Karadag 2015). This respective strategy is essential in nature
which will be beneficial for the company in becoming more cost effective in nature in
comparison to the different competitors in the overall competitive marketing environment as
well.
Critical review of the strategic direction of Marks & Spencer
The goals and strategic direction that have been set by Marks & Spencer has been
mainly an effect of the understanding of the company based on the value that is provided by
the customers. The opportunities and challenges that have been offered by the organization
has created an important support system in community. The strategy which has been
implemented by the organization in different departments has provided effective support to

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increase the profitability and revenues of the company (Kasemsap 2014). The company
thereby aims to increase its revenues in the market with the implementation of better
strategies in its operations. The franchise partners of Marks & Spencer are able to provide an
effective position in the retail industry. The business operations of the fashion retail
organization can be increased effectively with the help of proper levels of support that is
provided by the franchise owners (Meyer, Neck and Meeks 2017). The major support based
services that are provided to franchise owners to the management include,
 Relationships that are created by the company with the help of its franchise
owners can help in increasing its operations.
 The company further provides guidance to the franchise based on the ways by
which they can have maximum levels of impact on the organizational
operations.
 The organization can provide appropriate merchandise to the franchise owners
in order to stock up in the stores and offer them to the customers.
 The operations of franchise owners are also supported by the organization in
an effective manner in order to increase its presence in the industry (Michael,
Storey and Thomas 2017).
The strategic direction of Marks & Spencer is thereby defined by three major values
which are, value, quality and services. The company has been coming up with new and
innovative strategies in order to improve its position in the retail industry.
Progress to be made by the company in a period of six years
The strategic goals of an organization can be set in an effective manner with the help
of analysis of the external environment and industry in which it operates. The analysis of
Marks & Spencer based on the external environment, that is, the retail industry has proved

17STRATEGIC MANAGEMENT
that the organization needs to develop some goals and objectives which can help in increasing
the profitability and revenues (Morschett, Schramm-Klein and Zentes 2015). The strategic
aim that can be set by Marks & Spencer is based on the improvement of the customer
satisfaction levels and sales of products. Technological advancement that has taken place in
the environment has been an important part of the ways by which the company can gain
leadership in food and clothing based industry in the United Kingdom. Introduction of new
and innovative products in the industry and improvement of quality is also a part of the
objective that has been set by M&S for improvement (Sakas, Vlachos and Nasiopoulos
2014). The development of strategic plan thereby plays an important role in the successful
achievement of the goals.
 Vision statement of the organization can be set as the standard against which
the goals can be measured. This also involves the development of better
quality of services and goods.
 Mission statement is the opportunity which helps in conveying difference
which the organization aims at making in the industry. The stakeholders
thereby need to be involved in the process of mission statement formation.
The strategic plan aims at increasing the sharpness of the mission statement
that has been set earlier (Michael, Storey and Thomas 2017). The two main
dimensions that can be used for the purpose of creating the mission statement
include, making the aspirational quality which is linked with ensuring the high
quality of services and goods provided to customers. Increasing the
accessibility to high quality of services and goods by all types of people
(Simon, Fischbach and Schoder 2014).
 The core values based on operations of the organization are related to the
development of various factors which include, the quality of products, value

18STRATEGIC MANAGEMENT
that is provided to the customers, the levels of innovation and trust. The
highest standards of services that are to be provided to the customers is a part
of the core values of M&S (Hubbard, Rice and Galvin 2014).
 The goals that can be set by Marks & Spencer for the next six years are mainly
based on the proper implementation of the objectives that have been set. Major
goals are based on the ways by which the organization can increase the levels
of profitability in fashion retail industry (Steinbach et al. 2017).
The needs of stakeholders need to be balanced in an effective manner so that a large
organization like M&S to operate in the competitive retail industry. The stakeholders can
play an important role in the ways by which Marks & Spencer can achieve the goals in the
next six years. The different stakeholders in the organization are managed in different which
further depends on the position and status of Marks & Spencer in the retail industry
(Trigeorgis and Reuer 2017).
Critical discussion of successes and failures of Marks & Spencer
The success history of Marks & Spencer is mainly dependent on the ways by which
the organization has creates its position in the fashion retail industry of United Kingdom. The
company has been a pioneer in the textile and food technology based applications in the
operations. In the year 1934, Marks & Spencer had set up the research laboratory which has
helped the company to improve its operations in fashion retail sector. The innovations which
were made by the organization have thereby been an important part of the transformation of
high street and the customers were provided with new types of textures (Wheelen et al.
2017).
The clothing based operations of Marks & Spencer had suffered a lot since the year
2008. The CEO of the company has decreased the reliance of sales on the high levels of

19STRATEGIC MANAGEMENT
discounts that can be provided to the customers. The fall that has been experienced in sales of
clothing items is around 8.9%. The clothing prices of M&S has been increased by the CEO
due to which the customers have been lost. Greater than 40% of the total clothing items of the
organization had been sold with the help of promotion and discounts (Simon, Fischbach and
Schoder 2014). The CEO thereby aimed at breaking the cycle of the sales by decreasing the
levels of discount. This new strategy which had been implemented by the CEO of the
organization has reduced the levels of profitability and revenues of the clothing department of
M&S. The shares of the organization have also reduced in the recent environment due to the
lack of sales of clothing items. The collapse which has been experienced in the retail industry
of UK after implementation of Brexit has proved to be an important part of the operations of
M&S (Morschett, Schramm-Klein and Zentes 2015).
Strategic Objective Plan
The strategic Evaluation objective plan of the company can be stated to be as follows.
It will help in the analysis of the performance of the company and ensure that all its
objectives are achieved successfully (Purce 2014).
1 2 3
Objectives To decrease the
employee turnover
rate by 20% by the
year 2020.
To increase its market
share by 20% by the
year 2021.
To increase its
sales percentage
per square foot
by 10% in the
next one year.
Area Goals To increase employee
satisfaction
To ensure that the
employees contribute
towards the
objectives of the firm
at large.
To ensure that the
employees are well
trained and are able to
successfully able to
manage the different
As the second
objective comprises
of ensuring that the
firm will be
successfully able to
improve its market
share, it needs to
ensure that the
following Area Goals
stand at large:
To improve the brand
image of the firm
To ensure that
the company is
successfully able
to improve its
store appearance.
To ensure that
the offerings as
made by the firm
are adequate in
nature such that
the attractiveness

20STRATEGIC MANAGEMENT
customers. To improve the
strategic positioning
of the organization
To ensure that there
exists considerable
offers of the firm.
To ensure that the
pricing policy of the
firm is consistent to
the market standards
of the firm
increases.
To ensure that
the staff is
capable enough
to make the
sales.
Key actions required
to Complete
Training of the
employees
Motivating them
Rewards and
Recognition
Keeping standard
prices
Improving brand
image
Stocking sufficiently
Ensuring better
stocks
Ensuring good
discounts are
being provided.
Ensuring
successful
appearance of
the stores.
Key Performance
Indicators
Employee satisfaction
index
Turnover rate
Market share and size
Sales incurred
Popularity of the firm.
Sales per square
foot
Net revenue
Profits being
made
Responsibility Senior managers
HR Manager
Marketing Manager
Senior manager
Marketing
manager
Store managers
Timeline 2 years 3 years 1 year
Budget $10000 $15000 $5000
Recommendations to achieve competitiveness
Marks & Spencer needs to be provided with recommendations that the company can
use for the purpose of increasing its profitability in the clothing items. The recommendations
are as follows,
The company needs to implement the strategy of heavy discounting on
clothing related products in order to increase its profitability.
The clothing items need to be provided to the employees in such a manner
which will help in increasing the customer base of the company.

21STRATEGIC MANAGEMENT
The CEO of the company needs to implement the strategy of cost leadership
or differentiation in such a manner which can help in increasing the
profitability of Marks & Spencer.
Marks & Spencer needs to implement the strategy which had helped the
company to create a position in the retail industry in the previous times. The
organization will be able to achieve the goals in the next six years with the
help of effective cost leadership strategy.
The organization needs to increase the customer base by increasing the levels
of communication so that it is able to understand their needs and demands.
Marks & Spencer can also increase its presence on the different online
platforms so that the reach can be increased in an effective manner. The online
sales play an important role in the ways by which the company can increase its
sales and profitability in the modern business environment.
Conclusion
The report can be concluded by stating that Marks & Spencer has been successful in
its operations since its inception. The major strength of the company has been based on the
ways by which the customers are attracted with the help of lowest prices of products and
services. The products and services of the company were provided to the organization in such
a manner which have increased the customer base. The appointment of new CEO of Marks &
Spencer had caused changes in the profitability levels of the company. The clothing business
of the organization had been affected in an adverse manner due to the reduction of discount
based pricing. This had been a major cause of failure for the organization in the fashion retail
industry. The strategic plan that has been devised in the report can be helpful in achievement
of profitability and goals of the organization in the fashion retail industry.

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23STRATEGIC MANAGEMENT
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