Global Business Management: Critical Analysis of Strategies Adopted by Marks and Spencer

This report provides a critical analysis of the strategies adopted by Marks and Spencer, including an environment analysis, current strategies, and recommendations for improvement. It also includes a discussion of the Ansoff Matrix as a tool for growth opportunities.

Global Business
Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK...............................................................................................................................................3
Environment analysis.......................................................................................................................3
External Environment.................................................................................................................3
Internal Environment..................................................................................................................5
Current Strategies and its pros and cons ....................................................................................6
Critical analysation of improvement in strategy of company.....................................................8
Recommendation of changes in strategy which helps to be successful in market....................10
Critical analysation and evaluation of different contemporary strategic issues and synthesising
between different levels of strategy..........................................................................................10
CONCLUSION .............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Global strategic management enable business to capitalise on competitive opportunities in
different parts of world. It helps business to compete and expand in global business environment.
It can be adopted by an organisation when they are planning to expand their business
internationally and helps them to get success in market. This report includes analysation of Mark
and Spencer which is a UK based multinational organisation and selling clothes, food products
and home products to their consumer. This organisation was established in the year 1884 by
Michael Marks and Thomas Spencer. This project report includes analysation of existing strategy
of company by taking into account internal and external environment. It consists the analysation
of how company can improve their strategy. It also includes critical analysation and evaluation
of different contemporary strategic issues in strategy and synthesising between different level of
strategy.
TASK
Environment analysis
Environment analysis refers to a strategic tool which is used to identify internal as well as
external factors in business that create impact on performance of organisation. The purpose of
this analysis is to monitor as well as study different factors which create potential impact on the
regular functions of the business. This analysis helps to analyse threat and opportunity which
occurs in the market and also evaluates its impact on the decision making process.
External Environment
External environment refers to the study of environment forces, competitors’ analysis and
industry analysis in growth of organisation. For conducting external environment analysis, firm
can use PESTEL analysis which helps to identify factors like political, economic, legal,
environment, technological and social factors. PESTEL analysis of Marks and Spencer is
mentioned below:
Political Factors: Political factors are those factors which are related to rules and regulation
impose by government on business. It includes interferences of government in business that
create impact on their operation. Government of UK allows free trade in their country which
provide opportunity for business of Marks and Spencer as they can sell their products and
services at global level. Brexit is another political factors due to which government has made

changes in their major policies, rules and regulation which create problems for business. These
changes are related to their employment laws, international business policy and many other
things. This political decision create impact on free trade policies of government which create
problems for retailing company.
Economic Factors: Economic factor are those which includes economic growth, inflation rate,
exchange rate, interest rate. These factors create impact on operation, cost and profitability of
business. Marks and Spencer is a large retailer which is providing clothing, home products and
food products to their customers. Current trends of UK market are moving towards smaller retail
stores as these small retailer stores are providing their products at lower prices. Therefore, it
provide opportunity for Marks and Spencer to sell their premium products at premium prices.
People in UK are buying products from preferred local stores which create threat for business of
Mark and Spencer as it reduces demand of their products.
Social Factors: Social factors are those which consist cultural aspects, age distribution, career
attitude, health consciousness and many more. Marks and Spencer is one of retail organisation
chain which has been providing their products and services in UK since 1884 (Kline and
Hutchins, 2017). It is known brand name for elders and youth as it has gain recognition in market
of UK. This organisation has long standing reputation in market which creates threat for them as
they are not providing new designs in market due to which consumer is considered this
organisation as less trendy. There is an increased demand in the market for trendy and new
design clothes every year which create threat for business of Mark and Spencer in market. In
order to overcome these factors, Marks and Spencer dominating ready meals industry as there is
increase in consumption of ready meals in UK. This organisation is top provider of ready meals
in UK which helps them to take opportunity for growth in market.
Technological factors: Technology factors consist automation, research and development
activities, incentives, technology changes and many more. Self-checkout is in the trend these
days especially in food sector. This self-checkout is designed to save money of retailers and also
helps to enhance experience of customers by making check out process faster. Marks and
Spencer has adopted this system in their stores which provide them opportunity to enhance
experience of their customers. Company is also adopting digital technologies in order to sell their
products at online platforms which helps them to reach most of their customers. These digital
technologies includes digital marketing, online payment systems and many other things.

Environmental Factor: Environmental factors are those which are related to environmental
aspects like climate change, weather, pollution and many more. In order to maintain image of
premium brands, Marks and Spencer is providing sustainable products. It is related to
environmental factors which are present in acquisition of home product, food and clothing. Mark
and Spencer is adopting fair trade practices in market which provide them various benefits as it
improves their image in market. It is not advertising false information related to their products
and also investing on developing new technologies which helps to reduce pollution factor in
market.
Legal Factor: Legal Factor are those which includes various laws like discrimination
employment, health and safety, consumer laws and many more. Marks and Spencer is an
organisation which is following laws like health and safety laws, equality act, minimum wages
act which create positive image of company in the minds of their consumer. Adoption of these
laws helps them to improve their image in market and develop products as per expectation of
customers.
Internal Environment
Internal factors refer to a tool which helps in examination of internal component of
company related to tangible and intangible components like resource, process and assets. This
analysis helps company to make decisions which helps to identify various area of growth to
development of business strategy. For internal analysis, managers of company can use VRIO
analysis.
VRIO analysis refers to a strategic tool which is designed to helps business for analysing
resources and capability to identify whether they have source of competitive advantage. VRIO
analysis of Marks and Spencer is an analysis which is offering opportunity to organisation to get
competitive advantage in comparison to their competitors.
Valuable: Resources of company adds values which allow business to exploit opportunities in
order to overcome of threats. Resources of company are valuable if it helps business to increase
perceived values of customers. Mark and Spencer has effective financial resources, human
resources, marketing position and leadership. Among these, leadership is most valuable resource
of company which provide them competitive advantage.
Rare: Some resources are acquired by only limited numbers of business which are consist as
rare. Valuable and rare resources provide competitive advantage to business on temporary basis.

Mark and Spencer is an organisation which has various resources like marketing position, human
resource, financial resources and leadership. Human resources of this organisation is rare as they
are hiring skilled employees from different countries which are ready to take challenges and
working with dedication in order to attain business goals.
Imitation: Resources are costly to imitate if other business cannot copy it or have it at
reasonable prices. Imitation in business can occur be occur in two ways like directly imitating
and substituting. Marks and Spencer has various resources and capability related to human
resources, financial resources, position of company in market and leadership. This organisation
has imitable financial resources which helps them to carry out their day to day operation
effectively.
Organisation: In order to get advantage of resources in company, it is important for them to
organise it effectively which provide values to them. It is important for business to organise their
management system, policies, process, culture and organisational structure which helps them to
realise their potential. Mark and Spencer has different resources among which marketing
position of company is more organised which pride them advantage in market.
Competence Valuable Rare Imitable Organised
Leadership ✔ - - -
Human resources ✔ ✔ - -
Financial
resources
✔ ✔ ✔ -
Marketing
position
✔ ✔ ✔ ✔
Current Strategies
Marks and Spencer is an organisation which is providing food products, clothing and home
products to their consumers. This organisation is using various current strategies which are as
follows:
Focusing on food sector: Marks and Spencer is an organisation which is shifting their focus
from clothing to food. This business is focusing on opening of larger chain and supermarket style

shops (Keivanpour, Ait Kadi and Mascle, 2017). These shops is concentrating on food in order to
made attempt towards appealing to families. Aim of company is to improve their image from a
store for couples and singles buying smaller basket food into consumer filling up trolleys. Marks
and Spencer is redesigning their clothing areas which helps them to transform it into grocery
stores with wide food selections.
 Advantage: Marks and Spencer is an organisation which is shifting their focus from
clothing to food sector which create opportunity for them to grow their business in food
sector (M&S supermarket strategy: Retailer shifts focus from fashion to food, 2019). It
allow them to get benefit of diversification and also provide opportunity to get profit in
both business. In this, they can provide services to families and attract more customers
towards their business.
 Disadvantage: Marks and Spencer is focusing on food sector which divert their
concentration from clothing to food sector. This create problems for business of clothing
as managers are not able to give proper attention to clothing sector. There are various
competitors in this clothing market which can occupy their marketing share. This create
needs of supervision and control on business activities to ensure profit in market and
compete with competitors effectively.
Technology: Marks and Spencer is adopting technology in their organisation in order to enhance
experience of customers and also to work in effective manner (Mendenhall and et. al., 2020).
This organisation is providing their products and service at online platform which make it easier
for them to reach to their target customers. They are also adopting self-checkout systems in their
business which helps them to saves money and also to make check out system faster. These
technology is helps them to increase satisfaction of customers and also enhance their experience.
Company is also using data of customers in order to improve their products and service and also
to enhance experience of customers.
 Advantage: Adoption of technology create opportunity for business of Marks and
Spencer as it helps them to enhance experience of customers and also increase
reachability of business. Technology provide competitive advantage to business which
helps them to compete with other market players.
 Disadvantage: Marks and Spencer is getting threat from this strategy using online
platform require strong security of their system. Business contain various personal

information of their customers and it is duty of them to protect this information from
access of third party. Implementation of strong security system in their organisation
increase cost of their business.
Sustainability in business: Sustainability is focusing on meeting needs of present requirement
without making any comprise in ability of future generation. Concept of sustainability includes
factors related to environment, economic and social. Marks and Spencer is adopting ethical
practices in their business in order to compete with other marketing players which helps them to
improve their image in market (Nisula and Pekkola, 2018). It also provides them opportunity to
earn profit in market and also fulfil their social needs.
Advantages: Marks and Spencer is adopting sustainability in their business which helps them to
improve their market image. It allows them to protect environment and also fulfil their social
responsibility. Marks and Spencer is using paper shopping bags instead of plastic in order ot
protect environment.
Disadvantage: This strategy is also creating threat for Marks and Spencer as it increases cost of
their company. For sustainability, business is adopting new technology which does not create
negative impact to environment and increase their cost. This strategy requires extensive planning
for which business needs to invest their time. Use of paper bags is also a pert of their
sustainability strategy which increase cost of company.
CRM: Customer relationship management is another strategy which is adopted by Marks and
Spencer that helps them to build good relation with their customers. CRM is a technology based
system which helps to manage relationship of company and customers (Nisula and Pekkola,
2018). It aims at improving business relationship and also helps companies to be connected with
customers. It provides benefit to the company in improving their profitability and streamline
process. Marks and Spencer is focusing on building good relationship which helps them to
increase satisfaction of customers and also create positive image of organisation in the minds of
their customers.
Advantage: CRM helps business of Marks and Spencer to consolidate customer data and
provide basis for consumer insights. It provides opportunity for company to increase productivity
of their organisation and decrease time cost. It also helps them to increase probability of sales
conversion and allow them to improve experience of their customers.

Disadvantage: Over reliance of staff members on system may create negative impact on
experience of customers as sometimes untrained employees are not dealing in effectively with
customers. Marks and Spencer is also facing issues related to data protection and security related
to centralise data which create impact on their relationship with customers (Omarova, Omarov
and Belyakova, 2021).
Critical analysation of improvement in strategy of company
Marks and Spencer is adopting various strategies in their organisation which helps them to
compete with other marketing players . It also helps them to enhance experience of customers
and also improve their image in marketplace. But at same time, it creates some problems for
business as their focus is shifted to only growth of one product. In order to improve strategy of
company, Marks and Spencer can adopt Ansoff Matrix. Description of this model in context of
Marks and Spencer is mentioned below:
Ansoff Matrix: Ansoff Matrix refers to a tool which is used by business for analysing
and planning strategies for the purpose of growth. This model was developed by H. Igor Ansoff
in the year 1957. This model includes various strategies which can be adopted by managers of
Marks and Spencer in their organisation.
Market penetration: Market penetration is a strategy through which a business can use
their products in existing market (Shageeva and et. al., 2017). In this, aim of business is to
increase their marketing share. Marks and Spencer can adopt this strategy by decreasing prices of
their products. They can also develop effective promotion strategy in order to increase their
marketing share.
Product development: Product development is a strategy through which an organisation
can develop new products in existing market. This strategy can be adopted by Marks and
Spencer through research and development. This helps business to expand their product range
which provide them diversification of risk in marketplace. It helps them to develop new products
to meet needs of customers.
Market development: Market development is a strategy in which company enter in a
new market with existing product. With adoption of this strategy, Marks and Spencer can expand
their business into new geographic region and customer segment. For adoption of this strategy,
Marks and Spencer needs to enter into different market segment. They can also expand their

business reach at international level. Managers of company needs to ensure that potential
consumer in potential market are profitable enough.
Diversification: Diversification is another strategy in which business can enter into new
market with new product (Wazurkar, Bhadoria, and Bajpai, 2017). This strategy includes risk as
in this both products and market is new. Adoption of this strategy in Marks and Spencer provide
them opportunity to increase their revenues. For development of new business products and
market, managers of company needs to conduct research.
Mark and Spencer is a multinational organisation which is providing food products,
clothing and home product to their consumer. For growth of business and improving existing
strategy of company, managers should adopt product development strategy in which they are
focus on innovation by investing on research and development.
Recommendation of changes in strategy which helps to be successful in market
 From above mentioned discussion, it can be recommended to business managers of
Marks and Spencer that they should focus on both food sector as well clothing products
as clothing is their core business. Business should focus on latest trends in market related
to clothing and also adopt effective marketing strategy which helps them to improve their
image in minds of their customers.
 It is also suggested to company provide proper training to their staff which helps them to
build good relation with their customers.
 Managers of Marks and Spencer should also focus on latest trend for their clothing
business which helps them to change their brand image. Customers has long standing
image in minds of their consumer as company is not providing trendy clothes to their
customers.
Critical analysation and evaluation of different contemporary strategic issues and synthesising
between different levels of strategy
There are different strategic issues in business which create problems for them. Strategic issues
in content of Marks and Spencer is mentioned below:
 Mark and Spencer is facing strategic issues in taking decision as which products is more
beneficial for company. Company is providing their products and services in more than
one sectors. In order to get growth in market they needs to understand which product is
more beneficial for them and which are not.

 Company is also facing issues in selection of one growth strategy as which strategy is
more beneficial for their organisation.
 Company is also dealing issues with implementation of strategy in company which is
beneficial for their requirement. As there are conflicts occur between employees which
shift their focus form productive activities to non productive.
Corporate level strategy: Corporate level strategy is one in which management of
business not only focus on competitive advantage on each line of business but also focusing on
which business should be at first place. This level deals with investment and divestment decision,
merger and acquisition. Mark and Spencer is an organisation which is dealing in food products,
clothing and home products. At this level of strategy, firm is facing issues as in which products
they need to invest more which helps them to gain competitive advantage in market.
Business level strategy: Business level strategy are those with which people are familiar
and it work as how to compete in market to gain competitive advantage in market. For this,
managers require understanding of business as well as its external environment. There are
different environmental analysis techniques which can be used by business in order to
understand components of environment. In this level, Marks and Spencer is facing strategic
issues like which growth strategies to be adopted in which that helps them to expand their market
share.
Functional level strategy: Functional level strategies is one which is concerned with
how to support strategy at business level within functional department like human resources
research and development and production. These strategy helps to improve effectiveness of
operation of company. There are conflict occur in organisation of Marks and Spencer which
create problems for them in order to implement new strategies at functional level.
CONCLUSION
From above mentioned project report, it can be concluded that global strategic management is
adopted by company when they are operating at international level and also focusing on
expansion of market share. For global strategic management, managers of company need to
analyse business environment. Business environment includes various internal and external
factors which create impact on operation and function of business. In order to identify external
factors, managers conduct PESTEL analysis which helps them to identify factors which create
threat and opportunity. These factors include political, technological, legal, social, environmental

and economical. In order to identify factors inside business, managers of company can use VRIO
analysis. This analysis helps to evaluate resources, capability of company in order to identify
competitive advantage for company. There are various strategies to be adopted by a business
which helps them to expand their profit share and compete in competitive environment. These
strategies include sustainability, adoption of technology, customer relationship management and
shift of focus on different sector. These strategies have their own advantage and disadvantage for
business. In order to improve these strategies, business needs to make some correction in their
organisation structure, policies.

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