(solved) Strategic Analysis Report
Added on 2020-10-05
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STRATEGIC ANALYSISREPORT
Table of ContentsINTRODUCTION...........................................................................................................................3TASK 1............................................................................................................................................31). Strategic issues facing by Mark and Spencer........................................................................32). Analyse resources and key capabilities to achieve competitive advantages of organisation43). Suggestions for improving strategic issues............................................................................8CONCLUSION..............................................................................................................................10REFRENCES.................................................................................................................................11
INTRODUCTIONStrategic analysis is defined as the process in which business strategies are to bedeveloped and implemented by undertaking research and environment where it operated. It isnecessary to maintain the strategies and its abilities for the purpose of achieving set goals orfuture outcomes with an effective manner. In other words, strategic analysis is the process toconduct research on business environment including internal and external in which firm runs oroperates for the purpose of formulating better strategies in an effective way (Lozano and et. al.,2012). This report is based on Mark and Spencer plc which is a British multinational retailer andits headquartered in Westminster, London. It deals in clothing, luxury food products and homeproducts etc. the assignment will define about key strategic issues that faced by an organisationand identify resources with key capabilities for achieving competitive advantages. It will assessthe organisation's competitive strategies with issues and provide suggestions for betterimprovements TASK 11). Strategic issues facing by Mark and SpencerIn Marks and Spencer, there are various issues which are facing by them regardingdifferent factors. The firm need to develop strategy that help in enhancing growth andprofitability in better manner. Also company manager require to analyse various issues orproblems which create bad on its reputation. There are three key strategic issues which aredescribed as under:Quality strategy – The M&S quality strategy main aim is to provide high quality basedproducts and services to their customers. They are innovate various unique goods such asclothes, home products and luxury items along with deliver quality which satisfying customersneeds and wants. In this, the major issue occurs is lack of skilled and experienced labour whohave not ability to produce quality based commodities (Beecham and et. al., 2013). Sometimeworkforce are repeating design of products which lose their customers and they bored with samedesigns. The quality issue is said to be “strategic” because the company policy is to developquality products for attracting new buyers but its price is high due to its quality. According to thePESTLE analysis “S” which is social factor that provide major impact on Marks & Spencer
quality because they are develop high quality based of food items so they gain more customersotherwise they lose their buyers. Price strategy – M&S is such an retail organisation which never fluctuate their pricesbecause they are offering best and unique products in market area. For example, if cost of anjeans is 4000 before one month and after 2 or 3 months later price of that product remain same. Itis their strategy to constant cost of their products and don't reduce because such this is an brandwhich offer high quality products with some unique features (Cottrell and et. al., 2014) .Although, in such kind of planning major issue is that it will reduce sales of M&S because ofexpensive goods and these are not affordable by everyone. Most of the people don't want toinvest their hard earned money on retail products. Moreover, according to PESTEL analysissocial factor gives major impact on Mark & Spenser price strategy because high cost goods andservices reflect luxury and social status in society. If an individual use M&S products in theirdaily life then they will easily gain high status in society from which is their belongings. Advance Technology – Mark & Spenser use high and advance technology for productionof their products and services. They believe that by utilising updated tools and equipment theycan produce unique and fine quality goods. But implementing such technology is expensivebecause it result in high cost. If production of clothes and accessories done through this then,cost of production will be high. Thus, such practices simply reflect on price of products and theseautomatically get high. Major problem raise because of this is high cost of production, expensivegoods & services, require more labour in operation department and many more. Although,advance technology give wide impact on working of M&S because they can manage their workon required time as well can produce fine quality of goods and services (Campbell and Rahman,2010). Technological factor of PESTEL gives wide impact on working of business because nowa days tools and getting more advance so that operation department of every company can workeasily. By modification in technological factor their will be several benefits to enterprise becausethey can offer good and fine quality of products to their customers. Apart from this, it will alsoassist in maintaining constant quality of offerings. Above mention are three strategies of Mark & Spenser which get affected throughelement of PESTEL and give wide impact on working of the same enterprise.
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