Strategic Approaches for Market Profitability
Added on 2020-07-23
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Strategic Analysis
ContentsINTRODUCTION...........................................................................................................................1STRATEGIC ISSUES OF MARK AND SPENSER..................................................................1RESOURCES AND KEY CAPABILITIES THAT ASSIST ORGANISATION IN GAININGCOMPETITIVE EDGE...............................................................................................................3INFLUENCE OF ORGANISATIONS COMPETITIVE STRATEGY ON STRATIGIC ISSUES.........................................................................................................................................................6CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONOrganisations that are operating in market have a certain vision regarding what they will beworking for to achieve. They prepare a strong long term plan that will assist these organisationsin moving forwards and growing at the same time. Strategy is basically, considered to be a planof action that assist organisation in achieving their goals and objectives in a set period of time(Al-Turki, 2011). The managers are tasked with the responsibility of conducting strategicanalysis so that company is able to tackle all the issues in an appropriate manner. The chosenorganisation for this report is MARK AND SPENSER, which is a multinational retailer and isranks in one of the top 10 organisations. There are more than 1500 hundred stores that are therein different country. It is considered to be luxurious brand when it comes to its primary offeringthat is clothing. This assignment will basically discuss three prime issues at large where thereimpact upon organisation will be analysed. Also, how these can allow company in gainingcompetitive advantage will be covered in this project. The role of competitive strategy in relationto strategic issues is going to be stated in this file in a brief manner.STRATEGIC ISSUES OF MARK AND SPENSERIf the company is not working as per the plans, then it is impossible for them to attain any ofthe target in a desired frame of time. they need to state a path that can be followed for makingsure that their strategic tools are used in a way which leads to gaining competitive edge inmarket. There are multiple issues which are faced by companies in the environment. most of theproblems are of day to day in nature (Capaldi, 2013). These can be resolved by using strategicapproaches and stated methods to sort these issues out. In the beaning of industrial revolution,most of the organisations were not focusing on the strategic aspect and hence in long term a lotof them failed. But today, companies like MARK AND SPENSER are specially putting theirresources in the departments which will assist them in achieving higher level of effectiveness. The definition of strategic planning is to prepare a plan of action that will set a path fororganisation which will allow its employees in achieving all the objectives and goals (Díaz andPuente, 2012). There are certain issues which are faced by MARK AND SPENSER in operationswhich are strategic in nature. If they are not sorted in a proper manner than there will be higherlevel of losses to company. Recently, it has seen drop in its sales and profitability which is due tothe issue. Problems associated with MARK AND SPENSER are stated below:1
Suppliers issues: There are various strategic issues out of which suppliers concern isfirst. The company is known to be fair with them but recently there has been shake-up’swhich can impact organisation and its capabilities. MARK AND SPENSER suppliershave lower level of bargaining power with them, as there is huge level of competitionwithin the system (Gallagher, 2012). The company is basically taking advantage of thissituation which has caused troubles with various associations. they did so for enhancingtheir profitability while serving consumers at a discounted rate. Today, due to thissituation supplier have formed associations which is now having higher level ofbargaining power. But this is not a new issue for the company, they have this problemsince the beginning of 21st century and because of their temporary approach they havefailed in achieving any sort of target. Why it is strategic:MARK AND SPENSER basically thought that they could exploit the advantage ofhaving suppliers who have lower level bargaining. But due to constant rough behaviour and non-transferring of profits, the supplier has formed association which has now improved theirbargaining power. Also, the company is facing a lot of resistance in developing nations too as ittried to exploit weak supplier base. This can impact organisation profitability and marketeffectiveness to a higher level of extent. Financial management: There has been a lot of news about MARK AND SPENSERand its financial management. All of them had a negative perspective with them and thisled to issues in the organisation. the company was involved in an accounting scandal in2014 where it overestimated its profits and presented them as real figures to shareholdersand other parties (Grinblatt and Titman, 2016). This was done to hide the real conditionof organisation from them. also, they invested a lot of resources in overseas expansionwhich resulted in losses as these markets did not provide expected results to the users.MARK AND SPENSER is one of the most valued brand in UK.Why it is Strategic:The company was trying to ensure that its main sources of funds stay unaware of realfinancial condition was not good and overstated their profits. This basically boosted organisationmarket for certain period of time. But lately at the time of audit, it was found out and causedcrash in the market value of company. Basically, if there is a good financial management then2
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