Strategic Management in Marks & Spencer

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................4
Use an appropriate model of your choice to review the external environment of the company
................................................................................................................................................4
The probable industry scenarios facing the company within its existing market domains....5
TASK 2............................................................................................................................................6
Alignment of company's vision and mission with market demand........................................6
Strategic competencies and capabilities of the company.......................................................7
Rationale and core logic of how the company creates, delivers and captures value within its
industry/market to its clients..................................................................................................8
TASK 3..........................................................................................................................................10
Possible strategies that the company could follow to defend its core business....................10
CONCLUSION..............................................................................................................................12

INTRODUCTION
Strategic management is an aspect of organisation which deals in achieving objectives
and goals of the business with the help of setting goals and creating competitive environment.
Strategic management help the business in recognising their internal competencies so as to make
the business compatible to the market situation. Further strategic management help the business
to make and impose strategies so as to have future benefits in the organisation. This assists the
business in getting power over the market so as to have market competitive edge and to get
market dominance (Clinton and Whisnant, R, 2019). With the help of strategic management the
business gets the power to cop up with market changes and make appropriate strategies
accordingly so that to get business sustainability for the long term. The organisation taken for
this report is Marks & Spencer, which is a British Multinational company which is having
headquarter in London. M&S deals in providing stylish women and men cloths which are high in
fashion scale and designed for those class of people who are prone to wear designer clothes.
TASK 1
Use an appropriate model of your choice to review the external environment of the company
Business environment is complex in nature due to which companies are required to
perform PESTLE analysis so that to understand external environment and competencies. The
PESTLE analysis of M&S is examined as under:
Political factors: Political factors are associated with governmental intervention within a
business which includes political stability, tax policy, labour laws etc. As UK is a fair and stable
country due to which UK has made so many policies in order to have fair trade. So this free
trade gives M&S an opportunity that they can import products from other countries and keep
them in their store for sale purpose. Further due to Brexit UK has decided to exit EU due to
which it is uncertain that what will be the impact of this aspect. For example UK exits the EU
then the free trade policies will be vanished and operation cost will be increased due to which
profit of M&S will be lowered (David and David, 2016). At the present scenario UK is having
highest fluctuation in their political parameters due to which no business in any industry can
make rigid internal workings they are required to form flexible operations so that whatever be
the judgement of Brexit they may survive in the marketplace.

Economic factors: These factors include inflation rate of a country, GDP growth of a
country and per capita income within UK population. In the context of M&S has recently shut
down some of their stores and cut jobs by 2% due to recession faced by UK because of Brexit.
Further because of low per capita income people are moving towards budgeted clothing as
compared to luxurious clothing, which is influencing sales of M&S in an adverse manner. Along
with these fluctuations in foreign currency is also playing an essential role in operation of M&S,
with effect of this the inflation rate reached to its peak which is harmful to the company as they
have increased cost of productions. As due to high inflation rate M&S is targeting all their
marketing strategies towards a segment through which they will be able to position themselves in
the market no matter what the economic condition is.
Social factors: These factors involve taste and preferences of consumer and prevailing
market fashion. For M&S the company is trying to open up new retail shop with trendy interior
so that to attract customer and continuously they are upgrading their product range with
introducing stylish and fashionable clothes. Further M&S has introduced packaged food items
that are portable and can be used by those segment of people who are working and do not have
time to cook food(de Waal, van Nierop and Sloot, 2017). The new innovative feature of M&S
gave them an additional cover over the market which enables them to have high coverage over
the customer and power to capture more customers by their distinct product.
Technological factors: These factors include all those technological advancements
which are prevailing in the market and influence operation of a business. As in context of M&S,
they have lace their store with latest technology so as to give assistance and ease to their
customers. M&S has introduced self-checkout system this is saving time of public during billing
process. Further M&S has an online website through which customer can place their orders and
that will reach to them in a minimum delivery time. M&S is having strong online presence due to
which they are a market leader and with the help of adoption of high technology advancement
they are rendering the best services to their customers.
Legal factors: These factors include all those legal legislative laws which are required to
be followed by every business entity so as to manage their operations in a considerable manner.
In UK they have very strict labour and food safety laws so in context of M&S they are strictly
following Fair packaging and labelling Act which made them maintain transparency from their
customer. Further M&S is enforcing all labour and employment laws which are beneficial for