Global Strategic Management: Analysis of Marks and Spencer

This report on Global Strategic Management provides an analysis of UK based company Marks and Spencer's strategies, internal and external environment, and suggestions for improvement. It covers Porter's Generic Strategies, PESTEL analysis, SWOT analysis, and improvement steps such as planning for the future, having the right people at the right place, monitoring performance, improving customer experience, and reducing cost.

Global Strategic
Management

INTRODUCTION
Strategic management is concerned with the discovery and description of strategies that
managers might employ in order to enhance effectiveness and gain a competitive edge for their
firm. If an organization's profitability exceeds the average profitability of all enterprises in its
industry, it is considered to have a competitive advantage. Strategic management is nothing more
than preparing for both expected and unforeseeable scenarios. It applies to both small and large
firms since even the smallest organizations confront competition and may achieve a sustained
competitive advantage by developing and implementing effective strategies. In the mentioned
report, analysis of the UK based company Marks and Spencer which is in dealing in various
types of products such as home care, food and clothing, footwear etc. Marks and Spencer was
established in the year 1884 by Thomas Spencer and Michael Marks and now has a worldwide
market. The report here consists of various strategies followed by the company with due
consideration of internal and external environment. It also gives suggestions on how businesses
might enhance their various methods. Furthermore, it encompasses the analysis and appraisal of
many contemporary concerns.
MAIN BODY
TASK 1
Existing strategy
The UK company Marks and Spencer provides services in different fields such as clothing,
footwear, homecare products and food for their customers. There are various strategies used by
the company for attaining the goals and objectives of the company with full optimisation of their
valuable resources. It is one of the biggest firm which adopts various strategies in their
organisation. The used strategies which assist the firm in its international market are described
below:
Porter’s Generic Strategies:
The strategy is helpful for company in pursuing competitive advantage around its target market.
The generic strategy reflects the decisions taken in terms of both the type and extent of
competitive advantage. Few strategies which are adopted by Marks and Spencer are described
below:

Focus strategy: Companies that uses focus strategy emphasize on certain niche markets and, by
studying the dynamics of that market and the unique demands of customers inside it, build
exceptionally low-cost or well-specified products for the market. With the adoption of innovative
ideas and technologies, the company Marks and Spencer is choosing the strategy with an aspect
of low prices of the products(Akhtar and Sushil, 2018).
Cost leadership: It is a technique that assists firms in attaining a competitive edge in the market.
To get a competitive edge, it is critical for a company like Marks & Spencer to focus on cost
reduction in the business. It will enable the organization to reduce its overall costs while
increasing its earnings. Marks and Spencer may target a big segment of customers by offering
discounted merchandise.
Differentiation: Differentiation entails making your products or services distinct from and more
appealing than those of your rivals. Large firms that want to differentiate themselves must keep
their new product development processes nimble. Here, the firm Marks and Spencer are using
self-checkout and other advanced technologies to differentiate their products and services from
their rivals(Amuda, 2020).
External Environment:
The external environment plays an important role for the success of a company which consists of
various factors in surroundings with a major impact on the business. For identifying the factors, a
firm needs to analyse through PESTEL analysis. The analysis helps the business to evaluate the
following factors such as government regulations, innovation in technology, economic
conditions, political factors in different states, laws and legislations, dynamic market. The
following factors which have a major impact over the firm Marks and Spencer are given below:
Political factors: This factor composed of government laws and regulations that have an
influence on business(Baporikar and Fotolela, 2021). Brexit has created a number of policy
uncertainties in the United Kingdom. As a result, businesses must implement modifications in
their operations. Marks and Spencer must implement several organizational adjustments. Marks
and Spencer is having commercial challenges due to the transportation of their items outside of
England. As a result, the company's costs have risen, and the company must lose consumers.
Economic factors: The economic factors refer to the condition of the economy for a company.
The UK's economic situation is favourable, creating chances for company. Marks and Spencer

are one of the big retailers selling their products and services in the present UK market, yet there
is a tendency in the UK toward small retail outlets.
Social factors: The company’s name is similar to household name, yet because of its longevity, it
is not considered a young brand. However, the company has been able to counteract this problem
by conquering the packaged food business. Marks and Spencer is now one of the leading
providers of ready meals in the United Kingdom(Cristofaro, Melina and Reina, 2020). The
majority of the public links the brand with the past, and without a complete overhaul of the
corporate persona, Marks & Spencer is expected to lose the bulk of consumers from the most
recent generations.
Technological factors: Nowadays, the retail stores and businesses are adaptable to new
technology. The development of self-checkout-based retail and food establishments has had a
significant impact on the existing sector. Marks and Spencer has opened a number of such self-
service outlets and plans to expand its use of AI-based checkout in the future. And also the
availability of goods and services on its website makes it more reachable and saves time of the
consumers.
Environmental factors: Marks and Spencer promotes itself as a premium brand, and as such, they
are concerned about the environmental impact of the business(Crossan, Vera, and Pathak, 2021).
They have often advocated the notion of a sustainable retail business and have pledged to be
cautious about their manufacturing procedures. These enable smaller retail enterprises to incur
lower production costs, allowing for more ecologically friendly manufacturing practices.
Legal factors: Laws are constantly altering. Every year, Marks and Spencer conducts re-training
and updates to follow up with new regulations or legislation, and when it comes to Health and
Safety, they also ensure that their legal protection is up to date. Marks & Spencer encourages
company changes, tax reforms, and product modifications, among several other things, for re-
training.
Internal Environment:
Internal environment refers to the inside atmosphere prevailing in the business organisation
having an impact on the day-to-day workings of the firm. There are various factors which plays
an important role in the internal environment and also have different aspects for their processes.
For evaluating the various factors, company needs to consider the SWOT analysis. These are

following factors on the basis of which internal environment of the Marks and Spencer is
considered:
Strength
 Marks and Spencer has followed the
latest trends with a wider range of
offerings.
 The infrastructure of the company has
maintained a powerful e-
commerce(Dowsett, 2020).
 For maintaining good market value,
Marks and Spencer has preserving the
highly effective corporate social
responsibility.
 It has a strong focus on enhancing the
experience of the customers through a
variety of products in line.
Weakness
 Due to dynamic market and
preferences, the financial performance
of the company is poor.
 Due to uncertainties in the market of
China, the future of the M&S has gone
for a toss.
 Dependency on UK market makes it
sensitive to domestic market
circumstances.
 The confidence of the customer suffers
as a result of frequent product recalls.
Opportunity
 There is a lot of opportunities for
Marks and Spencer as it is planning to
invest in Indian markets as well.
 Online platform plays an important role
in bolstering the market presence of the
company in different ways by targeting
the desirable consumers.
 The company focuses on reshaping its
clothing segment with consideration of
new trends and preferences of the
customers.
 Marks and Spencer has gained
opportunities by simplifying their
operational model.
Threat
 As this has the threat as with the
discounted price in the retiling store has
made an change and this has also
reduced the profit level of business.
 As this is an global retailer and this is
also exposing the various factors of the
business and this can also be impacted
by various factors(Ghlichlee, Ezzati
and Rahmati, 2020).
 All the government policies has made
the change in the business and this has
also impacted in the changing rules and
regulations all over the world.

TASK 2
Improvement in strategies
Strategies are the main part of the business as with this development it can help the business in
better growth and expansion of the business and this can help the business in gaining competitive
advantage in the business. This is done for attaining better benefits in the business s and this also
helps in attaining organisational aims an objectives effectively. As strategies are also developed
as per the size of the business and this also creates an basic foundation for business and this can
also help the business in gaining afros benefits and this also develops sustainability in business.
Strategies also help in developing the better cultural environment(Haldorai, Ramu and Murugan,
2018). This also gives flexibility in the business and this also gives better success and market
growth of the business. Strategy helps the business in the long term planning of the business and
this can also give many innovative changes in business and this can also develops the
competitive advantages for the better analysation of the external and internal factors and this can
help the business in increasing the revenue growth of the business. As Mark & Spencer has
goodwill in the business and this also allows better advantage in the business and this can also
help in the effective planning(Ibrahim and Abou Naem, 2019) Strategies also help the business
in the better collection of the resources and cost of the business and this is required to be
improvise in the business effectively. As strategies also help the business in establishing in the
new market and this can make the product dynamic and this can also fulfil the targeted market of
the business sand this also helps in effective decision making in the business. This also helps in
making an positive environment in the business and this can help the business in gaining various
advantages in business. This also helps in increasing better profit in business and this is
optimised effectively in an business and this also develops various different marketing and
communication channels in the business with the better management in the business and this also
helps in gaining various aims and objectives in the business and this also help in the effective use
of resources in the busyness and this also lead in reducing the cost of business. Strategies can be
improved by using various steps in the business and this can also lead in better change in the
business are described below(Jumle and Bhattacharyya, 2020).

Planning for future
As with the existing strategy it is important in the business to focus on the future planning as this
can make the organisation mission and vision of the business. As technologies remain changing
with the time and organisation is required to change for the effective management and this can
also increase the level of profit in the business. As this can also be done by the designing and
planning the different business models and this can make the performance effective and this can
also reduce the competition of the business and this can benefit Marks & Spencer(Kartal, 2019)
As this can help in determining all the priorities of business as for the business sit it import to set
the goals in the business effectively as this can benefit the business in dealing with the external
and internal factors of business and this can also help in improving the emilites and the business
performance and this can help the business for gaining an business environment.
Right people at right place
AS in an business human resource is important as in an business employees are the best asset of
the business and this is required to have effective employees in the business who is highly skilled
and knowledgeable and this can also make the increment in the business performance and this
can also increase the level of productivity in business. As this can also done by the effective
teamwork in the business and this can be enhanced by gaining the better advantage in the
business as this can also increase the teamwork in the business. In an business human resource
management is an essential department of the business and this can be combined together ti gain
an better advantage in the business and this can increase the performance and confidence of
employees effectively(Morcillo-Bellido, 2019).
Monitoring the performance
In an business monitoring of the organisation and employee performance eis important as this
can impact in the better changes in the business and this can also build better innovation in the
market. This can also be done by setting the rules of the business as this can be used by use of
strategies tools and techniques of the business and this can also help in building the better
performance management in the business. As this can be done by using process models in the
business and this can lead In attaining high rate of profit in business. This also helps in aligning
the tasks and the training and development program for the effective development of business
and this can also make the improvement effective(Päivölä, 2021).
Improvement in customer experience

By developing the customer experience in the business will help the business in building the
better engagement and this can also lead in increasing the benefits in the business and this can
also make the better analysation of the customer requirement and needs as this can help the
business in making effective and innovative change in business and this can benefit the business
for increasing the level of productivity of the business and this can be give better success in
business. Customer experience can be analysed by using various tools as this are surveys and the
social media platforms and this can also meet up with the customer requirement and this can also
make the business operations and functions effectively(Tetik, 2020) Customer experience and
there requirements matter in the business. This can also engage in the business process and this
can also make the business sustainable.
Reducing cost
As in an business is the operational process and this can help the business in reducing the cost of
business and this is also happening by reducing the functional cost of the business and this can
make the business operations effective and this can also support to business and this make the
business sustainable. As this also builds the transparency in the business and this can improve the
business and this can also make the business effective. This also increases the effectiveness and
efficiency of the business. This can also increase the competitive advantage of the business and
this can also benefit the business and can improve the products and services of the business. This
also leads in improving the resource activity and this can also make the level of productivity of
business and this can improve the better strategies of the business and this can also impact in
gaining the better advantage in the business.
Improving customer loyalty
As this can improve the customer of the business and this can also develop the better
understanding of the business process and this can help the business in gaining an customer
value and this can aligning the business requirements. This can also help the business in the
better alignment and this can build the customer loyalty and this can improve the business
performance and this can also grow the business and this can develop the better contribution in
the business. This also develops the better revenue growth of the business and this can make the
sales increased.

TASK 3
Porter’s five force
Threat of new entrant
As this organisation has high goodwill and the image in the business and this can also benefit the
business. As no new organisation can build the similar goodwill and image and can gain the
market share and market growth of the business. As this organisation has large customer base
and this can Laos hep the business in gaining high rate of revenue on the business as in new
business there is huge capital and resources are required and this is not possible to spend a huge
amount in starting. As this has the low risk of high entrant and this can also help the business in
increasing the rate of revenue and this has also increased the supply chain management of
business.
Threat of substitute
As this organisation has high rate of substitute in the business and his can also impact in lower
cost of the business as the low cost and the high quality can make the customers switch to there
alternatives and this can also make he business effective and this can be done by increasing the
power of business as this business has high market share and this is not reducing the profit of
business.
Bargaining power of customers
As this organisation is having high bargaining power of the customers and this can make the
customer swich to the other brand for the low cost as this can also reduce the customer base of
the business. As Mark & Spencer can introduce various discounts and offer in the business which
can change the business and this also has various alternative offers in the business as this can
attract the customer base and this can impact in the business growth(Wang, 2021)..
Bargaining power of suppliers
As this organisation is having low bargaining power of suppliers as in the industry there are
various suppliers form which this organisation can buy the products and this can be supplied
from all over the world and at the lower cost and this will also increase the profit margin of the
business. This can benefit in reducing the cost of business and this also lead in increasing the
level of profitability.
Competitive rivalry

As this organisation has high competition in the market and therefor Mark & Spencer is using
various innovative strategies in business as this can benefit the business in gaining an
competitive advantage ad this will lead better value for money and this can impact in the
business objectives and can also make the low cost strategy for gaining better benefit in the
business.
CONCLUSION
This report has concluded that in an business strategies management is important for the better
profit level of the business as this can also increase the competitive advantage I the bsuienss.
This report has also concluded that strategies can be developed effectively with the various
strategies for making the better change in the business and this can be done by analysing the
external and internal factors of the business effectively.

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