Strategic Analysis of Marks and Spencer: A Comprehensive Study

STRATEGIC ANALYSIS
MARKS AND SPENCER

STRATEGIC ANALYSIS
Table of Contents
1.0 INTRODUCTION.................................................................................................................................................. 2
1.1 OVERVIEW OF COMPANY......................................................................................................................... 2
1.2 MISSION AND VISION OF SAINSBURY.................................................................................................3
1.3 COMPETITIVE ANALYSIS OF ENVIRONMENT.................................................................................4
2.0 STRATEGIC APPROACHES............................................................................................................................. 5
2.1 PORTER’S FIVE FORCE ANALYSIS.........................................................................................................5
2.1.1 THREATS OF NEW ENTRANTS.......................................................................................................5
2.1.2 THREAT OF SUBSTITUTE PRODUCTS.........................................................................................5
2.1.3 BARGAINING POWER OF BUYERS................................................................................................6
2.1.4 BARGAINING POWER OF SUPPLIERS..........................................................................................7
2.1.5 INTENSITY OF COMPETITIVE RIVALRY....................................................................................7
3.0 STRATEGIC ANALYSIS OF ENVIRONMENTAL CONDITIONS OF M&S........................................8
3.1 PORTER’S GENERIC MODEL.....................................................................................................................8
3.1.1 DIFFERENTIATION STRATEGY......................................................................................................8
3.1.2 DIVERSIFICATION STRATEGY........................................................................................................9
3.2 CURRENT ENVIRONMENTAL PRACTICES OF MARKS AND SPENCER...............................10
3.2.1 PESTEL ANALYSIS OF M&S........................................................................................................... 10
3.2.2 SWOT ANALYSIS................................................................................................................................ 12
4.0 DISCUSSION AND FINDINGS...................................................................................................................... 13
5.0 CONCLUSION AND RECOMMENDATION..............................................................................................15
6.0 REFERENCES..................................................................................................................................................... 16
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STRATEGIC ANALYSIS
1.0 INTRODUCTION
The study presents the strategic analysis of the Marks and Spencer Plc. - an iconic brand in
the UK. They are leading retailers of the UK from past several years. A general overview of
the strategic analysis of the business environment of Marks and Spencer has been assessed
in the study (Mckeown, 2012). A discussion of firm’s competitiveness and market
positioning has been portrayed in the study. In addition, the market presence of the Marks
and Spencer on the international and global level can be analysed with the help of strategic
thinking perspectives.
1.1 OVERVIEW OF COMPANY
Marks and Spencer PLC is one of the leading retailers in the UK. The company was
established in the year 1884 in Leeds by Michael Marks. The organisation has 1382 stores
among which 468 stores are in Eurasia and the Middle East. The Company has expanded
their business in the UK and other regions. It covers 914 stores in the UK- among them, 222
owned and 349 franchises (Lee, et al. 2012). The overall revenue generated by the
organisation is around £5.2 billion and £ 4.0 billion in food and Merchandise division
respectively.
The company had suffered a major financial loss in the year 2008. However, during the
years of the financial crisis, Marks and Spencer tried to continue their strong brand image
with an effective premium pricing of investment. The slight decline in the sales and share
prices has marked them to take a risk and work hard to reverse the grip as competitive
retailers (Perdana, et al. 2012). The Plan A, an environmental and ethical measure of the
governmental policies has helped them to regain their brand positioning. Through Plan A,
Marks and Spencer have centred on responsible sourcing, community and waste reduction.
The purpose of the report is to understand the strategic analysis of the retailing
organisation. It is associated with organizational forces in fine-tuning the business factors
of achieving high competitiveness in the business market.
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STRATEGIC ANALYSIS
1.2 MISSION AND VISION OF SAINSBURY
The mission statement of the Marks and Spencer reflect upon the inspirational quality
accessible to others. The key purpose of the business has underpinned the policies,
objectives and procedures through which the quality, innovation, services and trust are
valued. The main objective of the Marks and Spencer is to regain their positioning in the
clothing and food market (Nandakumar, et al. 2011). Further, to represent a revolutionary
change in the business with working class at affordable prices.
For this Marks and Spencer require support from the employees within the organisation.
Marks and Spencer look forward to the staff with high calibre and who can transform their
business into deliverable improved performance. The major foot on the sales objectives of
the organisation has been evident. The support required in improving key operational
objectives of Marks and Spencer can be transfigured with the help of generating sales. The
vision of the organisation is to set the level of quality for the M&S which will be remarkable
for the competitors (Ogutu and Nyatichi, 2012). The competitors may develop similar
strategy and quality of service level for the people in the market to accomplish a profitable
attainment of the aspiration.
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