This report discusses the challenges faced by a company in the external environment of the UK, analyzes its internal business situation and resources, examines the competitive environment, and explores strategic options for future growth.
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Organisational Strategy
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Table of Contents Contents INTRODUCTION...........................................................................................................................1 TASK 1............................................................................................................................................1 Key challenges that company is facing in the external environment of UK..........................1 TASK 2............................................................................................................................................3 Analyse the internal business situation and resources in the market of UK..........................3 TASK 1............................................................................................................................................4 Analyse the competitive environment for the company in UK..............................................4 TASK3.............................................................................................................................................5 CONCLUSION................................................................................................................................8 REFERENCES................................................................................................................................9
INTRODUCTION Organizational strategy creates vision and direction to the whole organization that helps in understanding the internal and external factors of the market. It is very important for the people working within an organization to now the goals and objectives of the organization that have to achieve. A business strategy provides vision and let people know what they have to do in order to fulfil those visions of the company. This report includes information about M&S, company severs 13 million people every year across the UK. The company deals with food, clothing & home and other retail business that are focused on developing products and services in their target market. In this report various topics to be covered such as, external factors that become challenge for the company, internal business situation and resources of the company. Furthermore, competitive analysis in the environment of UK for the company. at last the strategic options and direction company can pursue for the future growth of the company. TASK 1 Key challenges that company is facing in the external environment of UK. The external factors refers to the all the elements of the markets that have an impact on the performance of the company. There are various factors that can be a challenge for the company to understand these factors the PESTEL analysis of M&S is explained below. Political factors:These factors refers to the all the changes of government or their policy that have an impact on the business and decision making of the firm. In the context of M&S, the company facing many challenges due to the Brexit, where the government of UK decides to leave the European Union these situation might affect the business of respective company. UK is also facing the COVID situation and because of the pandemic situation there is huge loss for the market that also an impact the business of the respective company. Thus there are many challenges for the M&S because of political changes and the COVID situation in the UK. Economical factors:This includes all the changes in the market and the economy of the country that have an impact on the business of particular industry. In the terms of M&S, the company is facing the huge competition from the other brands. The change in the economy and trends in the market that is affecting the business of the company, there is various change in the trends in the UK so it is very difficult for the M&S to maintain the 1
all changes in the trends. Thus, there are many external economical factors that have an impact on the business of the firm. To deal with these challenges they needs of make new marketing strategies for the market. Social factors:This factors refers to the different culture and belief of the people in UK. This factors has huge impact on the business and industry of UK. In the context of M&S companiesfacinghugechallengeinUKbecauseofdifferentculturefollowby individuals in the country. M&S is facing non trendy challenge in among the young consumer of the UK that have a trendy choice and preference in food and clothes. That can become a challenge for the market of M&S. The company is facing social challenges in UK because of becoming less trendy among the youngsters of UK. To deal with this challenge company should follow choice and preference of their target market so that they can attract more customers towards the brand. Technological factors:This factor refers to the changes and innovation in the technology of competitors that can impact the business of particular industry or a company. technological changes can affect the business and its productivity. in the context of M&S there are various changes in the food and cloths industry because of Technology using buy their competitive brands in UK. There is a self checkout services in various stores that attracts customers towards the stores. It can be a challenge for M&S to become innovative and follow all the technology trends in the market. it will affect the cost of production. Customer nowadays focusing on online shopping rather than going for a super market or shop to purchase clothes or home materials. it could affect the business of M&S. it is a big challenge for the company to improve its technology and deal with all technological changes in the market. Legal factors: it includes all the government, policiesand regulations over the particular business or Industry that can impact their business. there are variouslegal factors that can affect a particular business by their rules and regulations. in the context of M&S there are many legalization for their food and cloth industry in the UK. That can be a huge challenge for the company. there is also pandemic situation in the overall world and because of this situation government change its rules and regulations for many industries. 2
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Environmental factor:these factors refer to the rules and regulations of the Government of UK for protecting the environment. In the context of M&S there are various rules and regulations of the government. In the context of food and cloth industries that can be if you selling for the company to deal with regulations to deal with these challenges companies producing sustainable produce products and making brand image in the market by their clothing food home products and become sustainable retailer in the market of UK. TASK 2 Analyse the internal business situation and resources in the market of UK. Internalanalysisofbusinesssituationandresourcesreferstotheallthefactorsofthe organisation that have impact by the internal sources of the company. to analyse the internal business situation and resources of M&S below is The detailed examination of SWOT analysis that can explain the internal factors of the respective company SWOT analysis: It refers to the all the factors of internal resources of a company that can impact the business are helps business to go in the market. Strength: in the context of M&Scompany is well known and well established in the market that is the biggest strength of the company. that helps its business to grow in the market. Company is also offering line with the latest industry Trends that helps to enhance its business. there are also stronger e commerce infrastructure that is beneficial for the growth of the company is also focusing on Highly Effective corporate social responsibility. that helps its business to grow in the market they are also focused on enhancing their consumer experience so that they can increase their customer base UK. From this strategies company is making use impact on that market and its brand images also non compatible for their competitors. Weakness:In the terms of M&S company is facing manychallenges in the market. that could be a weakness for the company’s performance can we use weakness for the company is too much relay on the market of UK. that could be a loss for the company 3
due to the covid situation countries facing low market and low economy and it could be weakness for the company to rely on the market of UK. Company also using frequent product recalls that could be lead them to loss in consumer confidence for their brand and it will decrease the brand identity of the company. Opportunities:in the context of M&S there are very is opportunities for the company in the market of UK. The company is planning to invest in other countries and expand its business as well. It could be a great opportunity for the company to make presence in other countries also. they are also willing to make online presence to boost its market position and brand identity. they are also reshaping their clothing segment in order to gain more profit and increase their customer base in industry of UK. Threats:in the context of M&S there are various threats for the company in the market of UK. such as because of high competition level in the market of UK in food sectors that could affect the business of the company. there are also changing trends in clothing space for youngsters it is also a threat for the company. TASK 1 Analyse the competitive environment for the company in UK. There are competition for market of clothes and food in UK. in the context of MS there are many competitors in the market of Food Industry and clothes industry that gives a use competition to the respective company in UK there are many brands that have impact on the use competition of respective company such as asda, Tesco, next waitrose and partners. MS is multinational retail which operates in various retail stores but there are many e competitor that can affect the business due to the pandemic situation in our all world there are many consequences that could be faced by the workers and employees of MS because MS announced that it was bring forward to plan cut jobs due to the pandemic situation that could impact the people and the industry as well so there is also situation of COVID make a huge challenge for the company to run its business perfectly and make a growth in the market so that to deal with this competitions company can use various marketing strategies that can help them to make a perfect marketing strategy to maintain the balance of covid-19 competitors in the market. 4
TASK3 The strategic options and directions that company can choose for the future growth both in the UK or international market. To understand the options and directions company can choose for the future growth and success of its growth in the market of UK and also inbelow is ansoff matrix is used to understand the situation this matrix is a tool used by the company to analyse and plan their future strategies what the growth of its company this matrix shows for strategies that can be used to help a firm to grow and also analyse risk associated with each strategy is described below Market penetration:this strategy hasthe business enterprise to produce new product in existing market. the aim of this strategy is to expand the market share and increase the growth of company in the context of M&S company can use this strategy by decreasing the prices of their pre-existing products in order to attract new customers and gain more customer base. They can also increase promotion and distribution efforts of company for their particular product or service. so that they can give more information to customers about their offerings. company is also can acquire competitors in the same Marketplace so that they can gain competitive edges in market of UK. Also expand its business on multinationallevelsothattheycanimprovetheirbrandidentityininternational businesses also. Product development:in this strategy company produce a new product or make a innovation increase existing product and services that helps them to increase profit and growth in the market. in the context of M&S company can develop new products into their existing market so that they can attract more customers and make more profit for the brand. company can also expand its business on multinational level and introduce new product and services to other countries so that they can increase their customer base and make a growth in international level. in UK company can analyse the product and services offered by competitors and make a new product that is better meets the needs of existing market and give a satisfaction level to the customer and increase their customer loyalty. Market development:in this strategy firm enters in a new market with pre existing product and services that help them to expand their business in new markets and help 5
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them to grow and have a stable growth. in the context of M&S company can come into International market with their product and services. and increase their customer base in those countries also so create different customer segment in market so that they can analyse the needs of pre-existing customers in the market for their International growth they can enter into foreign market for better profitability. Diversification:in this situation company enters in New Market with the new product and service that attracts customers and helps the business to grow. but in this situation company also face high level of risk of becoming new marketer with new product and service.inthecontextofMStheycanmakeapotentialstrategiesformarket segmentation where they can analyse needs and wants of customer and to make a product according to those needs and fulfil them it will help company to grow in the market. MScanchoosemarketdevelopmentstrategiesforbettergrowthinNationaland international markets. 6
CONCLUSION From the above given information it can be conclude that the organization strategies helps the business to analyse both internal and external factors and provide the vision to the firm. In this report the PESTEL analysis of the company helps in analysing all the external challenges. And the internal analysis helps in making the resources effective for the organization. Ansoff matrix helps in development of the new strategy for the company so that they can grow in the national and international market. 7
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