Report On Marks & Spencer - Innovation Strategy

Strategic innovation
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TABLE OF CONTENTS
Table of Contents..................................................................................................................................2
INTRODUCTION ...............................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Critically analysis of external environment of M&S ................................................................3
1.2 Discussing Macro and Micro business environment.................................................................4
1.3 Identifying implications of external forces on the business of company..................................4
1.4 Identification of innovation strategy and challenges associated with that strategy...................5
Task 2....................................................................................................................................................5
2.1 Evaluation of internal environment of organisation..................................................................5
2.2 Vision and mission of Marks&Spencer.....................................................................................6
2.3 Different nature of innovation strategy......................................................................................7
2.4 Implications of innovation strategy on strategic position of business.......................................7
TASK 3 ................................................................................................................................................8
3.1 Understanding existing innovation strategy of the company.....................................................8
3.2 Determining future innovation strategy of firm.........................................................................8
3.3 Describing innovation and sustainable competitive advantage.................................................9
3.4 Interrelationship between innovation and sustainable competitive advantage..........................9
Task 4....................................................................................................................................................9
4.1 Develop new competitive advantage for organization...............................................................9
4.2 Define strategic innovation......................................................................................................10
4.3 Explain advantages of innovation opportunities......................................................................10
4.4 Strategic recommendations......................................................................................................10
4.5 Identify the role of key stakeholders........................................................................................10
4.6 Implications of stakeholders on the business of Marks&Spencer...........................................11
CONCLUSION ..................................................................................................................................11
REFERENCES...................................................................................................................................12
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INTRODUCTION
Strategic innovation is a multi-functional approach which brings together all the creative
assets, capabilities and disciplines of Marks and Spencer. Innovative and creative strategies help the
organization to market all its products and services to its wide range of customers. It is the
instrument which helps in enhancing the value of business by reaching vast number of customers.
Further, it helps in achieving high level of customer satisfaction. Marks and Spencer has been
selected for this project report. This project report states different aspects of business which can be
benefited as well as affected by using innovation strategy. It also emphasizes on innovation which is
important for an enterprise to beat the existing competition and build competitive advantage in the
market. Strategic innovation is confined to strategically designing of strategies and business
operations but extends focusing on the major social cause that is sustainability. As it is one of the
part of Corporate social responsibilities Marks&Spencer has unveiled the latest step towards its
goal of becoming world's most sustainable retailer who provides all natural products. The main aim
of the company today's diet conscious society and that society which is fully surrounded by the
highly dangerous diseases. The newly released plan with a goal plan of achieving their target most
probably by 2020 which consists of 100 new, revised and existing commitments to its society.
TASK 1
1.1 Critically analysis of external environment of M&S
M&S is the UK's leading retailers of clothes, food, home products and financial services
(Kim and Shin 2016). It is famous for its success as well as profitability since its establishment with
well known brand reputation for its innovative and quality products and most important factor
affordable pricing of all the products. The external environment scanning is mainly concerned with
the forces and factors which can affect the business of the firm. It helps in analyzing the external
forces which will assist M&S in identifying its needs and expectations. The external environment
is monitored by using one of the important methods or tool known as Porter's five forces model that
is used to identify the competition in the market. It is that method which is used to analyse the
impact of external forces and competition is one of the strongest factor of external environment.
Marks&Spencer needs to analyse the impact of external environment in terms of competition by
increasing their competencies.
 Bargaining power of suppliers(LOW)- The supplier of the firm are mostly 90% of British
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(Hustad 2016). The bargaining power of supplier is quite low when it has concentrated
purchasers. It involves identification of potential power of its suppliers as the business of
Marks&Spencer is of grocery items and other clothing garments which is totally dependent
on the supplier for getting raw materials. Due to the massive turnover of the company
business want goods on the retailer shelves to attract large base of the customers.
 Bargaining power of customer(High)- The Buyer’s bargaining power is high due to
excessive competition in the market and the customers are price sensitive. When customer
has wide variety and can affect the business in return can play a significant role. The power
of buyers is slows down in 2008 and slightly goes upward in 2009 and year to year the ratio
goes upward and the present condition is an evidence of increment.
 Threat of New entrant(Low)- ASDA with its own brands name George and Matalan is
posing competition for M&S. The competitors of marks&Spencer in the same field poses
serious and dangerous risks to the company. Due to the introduction of new policies the
company will decreases the impact of new comers effect on their business.
 Threat of substitute- Customers generally pay for high quality products with lower price
which creates problem for the company. TESCO and ALDI imitate all the products and
services adopted by the company to influence more customers towards their shops.
 Rivalry among current players- M&S operates in a competitive environment which is
always covered with internal competition among other brands offering the same kinds of
products.
1.2 Discussing Macro and Micro business environment
M&S is rated as a successful multinational corporation which has created its large number
of loyal customer base. This has been made because of quality, price, good service, comfortable
shopping environment and convenient access to different outlets and products. Due to immense
competition in the market, M&S offers wide range of products by revising its market segmentation
approach periodically (Caiazza and Stanton 2016). Following are the different elements of Macro as
well as Micro business environment:
Micro environment
Customers- The king of every market whose needs and demands should be fulfilled to
achieve its desired goals and objectives.
Organization- It refers to a group of individuals playing different duties in an organisation
and whose decisions affect the operations of the company, for example: owners, board of directors
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