To analyze the impact of poor corporate strategy on financial performance of company

This research aims to analyze the impact of poor corporate strategy on the financial performance of a company, with a focus on Marks & Spencer. It explores the background of the company, research objectives, and ways to overcome the negative impact of poor corporate strategy. The research methodology includes primary and secondary data collection methods.

Research Project

Table of Contents
TITLE .............................................................................................................................................1
CHAPTER 1: INTRODUCTION ...................................................................................................1
Overview of the research ...........................................................................................................1
Background of Company............................................................................................................1
Research aim...............................................................................................................................1
Research objectives ....................................................................................................................2
Research questions .....................................................................................................................2
Importance of issue ....................................................................................................................2
CHAPTER 2: LITERATURE REVIEW ........................................................................................2
Understanding regarding the corporate strategy.........................................................................2
Impact of poor corporate strategy on financial performance of Marks & Spencer. ...................2
Ways through which impact of poor corporate strategy over financial performance of Marks
& Spencer can be overcome. ......................................................................................................3
CHAPTER 3: RESEARCH METHODOLOGY ............................................................................4
Primary method of data collection: ............................................................................................4
Secondary method of data collection: ........................................................................................4
Gantt Chart .................................................................................................................................4
REFERENCES ...............................................................................................................................6
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TITLE
“To analyze the impact of poor corporate strategy on financial performance of company”.
A study on Marks & Spencer.
CHAPTER 1: INTRODUCTION
Overview of the research
Corporate strategy encompasses an organisation's corporate action with the motive to
accomplish business objectives while attaining a competitive advantages. (Keyes, 2016). The
economic success of company is not only relies on innovation, quality management and
efficiency but also on acquiescence of corporate strategy principles. Along with this, proper
implementation of corporate strategy enhance financial performance of an enterprise as well as
impacts internal efficiency of an organisation in positive manner. For this report, Marks &
Spencer is chosen multinational organisation.
Background of Company
Marks & Spencer is a British multinational retailer in all over the world. It was founded
in 1884 by Michael Marks, Thomas Spencer and headquartered in London, United Kingdom. In
year 2010 the sales of company were up by 3.2% despite recessionary pressure. In addition, the
overall gross margin of business was around 41.2% with its sales revenue which is £9.3 billion.
Marks and Spencer significantly enhanced its cost by saving £145 million. They decreased its
cash outflow, capital expenditure and generated a cash inflow approximately £412m after tax
and dividend (Marks and Spencer Business and Financial Performance Analysis. 2019). Still,
the market share of organisation was slightly down or decrease from 4.3% to 3.9%. therefore,
average visit to Marks & Spencer store had been estimated approximately 21 million and average
mystery customer score was recovered to be stunning 89% in 2010. Apart from this, poor
corporate strategy at the management and executive level can track to bad decision in business,
which can lower down value of M&S and make it more challenging to meet its financial
obligations.
Research aim
Main aim of this research is “To analyze the impact of poor corporate strategy on
financial performance of company”. A study on Marks & Spencer.
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Research objectives
 To develop basic understanding regarding the corporate strategy.
 To identify impact of poor corporate strategy on financial performance of Marks &
Spencer.
 To analysis ways through which impact of poor corporate strategy over financial
performance of Marks & Spencer can be overcome.
Research questions
 Are you have knowledge regarding the corporate strategy.
 What are the impact of poor corporate strategy on financial performance of Marks &
Spencer.
 What are the ways through which impact of poor corporate strategy over financial
performance of Marks & Spencer can be overcome.
Importance of issue
Corporate strategy includes the decisions, actions and commitments needed for an
enterprise to accomplish strategic competitiveness as well as earn above average returns. As it
will helps an organisation by improving its financial performance within set time. Therefore,
effective corporate strategy is more important and essential for success and growth of an
organisation. It will also support M&S to improve their financial performance and gain better
outcomes within given time duration (Adamides, 2015).
CHAPTER 2: LITERATURE REVIEW
Understanding regarding the corporate strategy.
According to the Vicki A. Benge, 2017, Corporate strategy refers as a company plan to
select and create specific markets in which to compete while enhancing the different unites or
divisions of the enterprise. In addition, corporate strategy is the overall scope of company and
the way in which different operations of business work with each other to accomplish particular
goals and objective.
Impact of poor corporate strategy on financial performance of Marks & Spencer.
According to the Kevin Johnston, 2019, there are different drawbacks of poor corporate
strategy on financial performance of M&S. It includes, poor communication across stakeholders,
lack of a clear and defined direction, frequently missing deadline for deliverables, lack of
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delegation, high levels of bureaucracy and so on. These are major impact of having a poor
corporate strategy on financial performance of Marks & Spencer. It will be impacted on sales
and profitability of business in negative manner. This will further impact on M&S and its sales.
Ways through which impact of poor corporate strategy over financial performance of Marks &
Spencer can be overcome.
According to the Bruna Martinuzzi, 2013, there are different ways suggested to the
Marks & Spencer about how to overcome impact of poor corporate strategy on its financial
performance of M&S. Company must do proper research and identify needs of stakeholders. As
it will helps them to retain employees for long time and increase trust among customers about the
brand. Replace old corporate strategy with new ones, adopt motivational theories etc. are
consider more effective ways to reduce impact of poor corporate strategy on financial
performance of M&S. On the other side, there are various ways via which M&S can easily
improve its financial performance such as recover outstanding debt, use new marketing
techniques, offer additional payment options etc. Therefore, these are more effective ways for
improving business performance easily.
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CHAPTER 3: RESEARCH METHODOLOGY
There are basically two methods for collecting accurate information about the impact of
poor corporate strategy on financial performance of Marks & Spencer (Mollan and Tennent,
2015). Primary and secondary are consider two useful methods of data collection which will be
used by researcher.
Primary method of data collection:
Questionnaire is consider most essential and useful method for analysis primary data
regarding the impact of poor corporate strategy over financial performance of company. It is
most useful technique of data collection and helps investigator by providing reliable and valid
information about the current study. 60 respondents will be selected for analysing proper
information regarding the study (Kumar, 2019).
Secondary method of data collection:
Books, articles, magazines, publication research etc. are consider major sources for
collecting secondary information about the current study. As these sources helps researcher by
giving in-depth and detailed information about the negative impact of corporate strategy on
financial performance of business (Fletcher, 2017).
Ethical Consideration:
Ethical Consideration is identified as one of the most essential parts of the investigation.
 Participants of study should not be subjected to hurt in any kind.
 Respect for the dignity of participants within research must be prioritised.
 Full consent must be get from the respondents prior to the study.
Gantt Chart
It introduces as an effective tool which will be used by researcher for finding starting and
ending data of each activities. As this toll helps researcher to complete research within given
time duration. In this chart different activities have been included which are:
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REFERENCES
Books and Journals
Keyes, J., 2016. Implementing the IT balanced scorecard: Aligning IT with corporate strategy.
Auerbach Publications.
Adamides, E.D., 2015. Linking operations strategy to the corporate strategy process: a practice
perspective. Business Process Management Journal, 21(2), pp.267-287.
Mollan, S. and Tennent, K.D., 2015. International taxation and corporate strategy: evidence from
British overseas business, circa 1900–1965. Business History, 57(7), pp.1054-1081.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications
Limited.
Fletcher, A. J., 2017. Applying critical realism in qualitative research: methodology meets
method. International Journal of Social Research Methodology. 20(2). pp.181-194.
Online
Marks and Spencer Business and Financial Performance Analysis. 2019. [Online]. Available
through:<https://customwritings.co/marks-and-spencer-business-and-financial-
performance-analysis/>.
Vicki A. Benge, 2017. 2017. Definition of Corporate Strategy. [Online]. Available
through:<https://bizfluent.com/info-7746270-definition-corporate-strategy.html>.
Kevin Johnston. 2019. Impact of Poor Strategy Execution. [Online]. Available
through:<https://www.achieveit.com/resources/blog/7-signs-poor-strategy-execution>.
Bruna Martinuzzi. 2013. Ways to Overcome the Obstacles That Kill Businesses. [Online].
Available through:<https://www.americanexpress.com/en-us/business/trends-and-
insights/articles/8-ways-to-overcome-the-obstacles-that-kill-businesses/>.
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