Strategic Planning for Competitive Advantage in Marks and Spencer

This report discusses the strategic planning process and its significance in achieving competitive advantage for Marks and Spencer. It highlights the importance of focusing on product quality rather than price and explores the use of Porter's generic competitive strategies and Ansoff's growth matrix. The report also emphasizes the dynamic nature of the business environment and the impact of strategic planning on organizational activities.

Strategic Management 1

Table of Contents
INTRODUCTION...........................................................................................................................1
PART A (1)......................................................................................................................................1
PART A (2)......................................................................................................................................2
PART B............................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic planning is refers to the important process that used by company in order to
identify its strategy, proper direction and make decision on allocating its resources to attain their
set targets. One of the main purpose of strategic planning is to create or implement strategy that
contributes in attaining all the long term goals and objectives in an effective manner (Bryson,
2018). Thus, it is crucial for business organisation to set their priorities and at the same time also
focus on energy and resources to accomplished their predetermined targets. In addition to this,
strategic planning is also consider as an important tool that provide assistance to company in
taking day to day decision and also evaluate their actual progress in market place. This will
directly contributes in attaining competitive advantage from its competitors. Current report is
based on Marks and Spencer, is a famous multinational company that operate their business in
different countries in order to generate larger profitability level. Report is going to describe
strategic plan for attaining competitive advantage in market place.
PART A (1)
In a dynamic business environment, every business organisation wants to enhance their
competitive image so that hey can easily sustain in market place for longer period of time. This is
the reason that business organisation analysis their competitive strength, market position and all
the necessary area that required to be improved. This can be beneficial in attaining all the set
strategic goals and objectives in an effective manner. In relation to Marks and Spencer,
company focus in establishing their competitive image by serving best quality products to its
target customers as per their needs and wants. This can be beneficial in generating larger
profitability level and at the same time also increase their market share. In addition to this, Mark
and Spencer needs to improve their their product quality with the aim of improving customers
experience. Improvement in product line may aid in in inviting more and more consumers that
contributes in increasing strong customers base (Wolf and Floyd, 2017). Along with this,
company should includes diversified product line in which company serve wide rage of products
to its customers through which company easily capture larger marker share from its competitors
at market place. Furthermore, Marks and Spencer is one of the UK's leading retailers of clothing,
home-ware, foods and financial services that boasting customers base at market place. Company
has around 300 UK stores to serve quality and wide range of products. M&S also operate in
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around 30 countries worldwide that directly support in increasing profitability level of company
at market place. For keeping their competitive position in market place, Marks and Spencer
needs to focus on customers requirements that change as per dynamic nature of market place. By
understand customers taste company can easily improve their customers base and at the same
time also make consumers satisfied with its offerings (Cassidy, 2016). In addition to this,
company should focus on quality of product not its price in which firm avoid the temptation to
get dragged down its products price and also ensure about its stand out on quality. This could be
a hit to margin in profitability by increasing its product sale. Marks and Spence get IT, online
activities that provide change to invite a more youthful customers and at the same time also keep
all the potential and existing customers more happy. With the assistance of this, company can
easily expand their market share and also improve their competitive market position.
In order to attain competitive success, Marks and Spencer is also responsible for improve
their value chain as it provide opportunities to make customers base more strong. For attaining
the same company improve its manufacturing process of products that includes smart packaging
technologies. It may enable to preserve the quality and safety of the food products. It make brand
image more competitive and famous in market place (Kerzner, 2019). In addition to this, M&S
also offers many of high impact promotions that help in increasing awareness in market place.
Promotional campaign also provides greater value to the customers and that support in gaining
competitiveness against its competitors.
PART A (2)
An effective strategic plan is refers to the appropriate document that used to
communicate with the company about its goals, actions that required to attain all the goals in an
effective way. In context to Marks and Spencer, company also develop an appropriate strategic
plan that provide them proper guidelines and framework to attain their set targets in a stipulated
time frame. One of the main advantage of implementing strategic plan is to gain opportunities to
to attain competitive success at market place (Kemp, 2018). Along with this, analysing market
and business environment company use various aspects and models as it show the area that
required to be improved at competitive market area.
For attaining competitive advantage, Marks and Spencer develop an effective strategic
plan in which company set their objectives. In this, company focus on improving its product
quality not product price. It may provide opportunities to invite more and more customers
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towards its diversified products line. With the assistance of this, business organisation capture
huge market opportunities to enhance their positive brand image as compare to its competitors.
Mainly, company use appropriate tools and models with the aim of attaining its strategic plan
(Channon and Jalland, 2016). By using effective models, business organisation may analysis
competitiveness in market that support in improving positive image and at the same time also
assist in achieving competitive advantage from its rivals.
Porter's generic competitive strategies: It is consider as an important model that
determine potential niche in which company can gain competitive advantage in industry from its
competitors. From these strategies, Marks and Spencer can use an appropriate strategy to attain
competitive edge:
 Cost leadership: Under this type of competitive strategy, company become the low cost
producer within the industry. In this, sources of cost advantage is based on the overall
structure of the industry. Although, company will aim to eliminate any kind of unwanted
cost and overheads that provide assistance in increasing profitability level. The main
focus of business organisation is to offer quality products at lower cost to its customers.
As a result profit can be easily maximised and at the same time also increase high level of
productivity at market place.
 Differentiation: It is also consider as an effective strategy in which company make their
products different and more attractive than its competitors in order to capture customers
attention. In this, company also target larger market and also focus in differentiation
within their product line. With the assistance of this, organisation can improve its
customers base and make brand image more competitive at market place. If company use
this type of strategy that strong research, development and innovation is required because
it can beneficial in increasing sales and profitability (Nickols, 2016). The main advantage
using this type of strategy is to develop strong market share by encouraging more and
more customers towards the specified products offers by company in market place.
 Cost focus: Under this, company on narrow competitive scope within the industry in
which company select a segment and group of segments that serve better services along
with lower cost as compare to its competitors. Along with this, company seeks a cost
advantage in its target segment that change the buying behaviour of customers towards
the company offerings.
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In order to attain competitive advantage, Marks and Spencer use differentiation strategy
in which the main focus of business is on product quality not product price. As cost of the
products is low as compare to its rivals so that large number of customers get easily influenced
or attracted. The main advantage of offering low cost products is to increase the sales scale of
company that contributes developing competitive brand image at market place (Hübner And et.
al., 2016). In addition to this, Marks and Spencer also offer diversified products along with
quality features to its customers as it is beneficial in providing better satisfaction to it target
customers. This will assist in enhancing the possibilities of attaining competitive advantage from
its competitors.
Ansoff growth matrix: It is refers to the strategic planning tool that provide an
appropriate framework to business organisation in implementing strategies for attaining future
growth. Along with this, it also define the strategic direction to Marks and Spencer that provide
assistance in developing its positive brand image in competitive market place. By using this
strategy, company can analyse the biggest opportunities for attainment of growth in a dynamic
and challenging market.
 Market penetration: It is on of the effective growth strategy for business organisation in
which company offer existing products into existing market. The main purpose of using
this strategy is to increase its market share because it is relatively less risky and at the
same time also provide growth opportunities in market place. In addition to this,
company also focus on improving its products quality so that customers get attracted and
influenced towards the same.
 Market development: This type of strategy focus in developing new market with existing
products. In this, company offer its existing products into new market with the aim of
inviting new customers towards its services. It help business organisation in improving its
positive brand image in new market.
 Product development: It is refers to the effective strategy in which company produce new
products and offer it into existing market (McLean, 2018). This can be beneficial in
generating huge profitability level because market is already known to the company. By
using this type of strategy company can expand their product range in market place and
also capture larger market share from its competitors.
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 Diversification: This type of strategy used by start-ups company who serve innovative
and new products in new market with the aim of generating larger profitability level. It
provide greatest potential for growth but at the same time it is also the greatest risks to
failure.
From the mentioned strategy, Marks and Spencer use market penetration strategy to
attain competitive advantage from its competitors (Feng, Govindan and Li, 2017). In this,
company offer higher quality products to its existing customers in order to improve their
satisfaction level. With the help of this type of strategy, Marks and Spencer can increase its
market share and also improve its competitive performance level.
PART B
This reflection is based on the module of business environment through which I have
learnt that the environment of business is dynamic in nature as various changes are occur easily.
All the changes directly influence the business activities. Mainly, business environment includes
two factors including internal and external that affect the entire business activities in both
positive and negative manner. Under this module I have improved my skills related with
different business activities, condition, nature of business and many more. These are helped me
in analysing business environment of companies. In addition to this, there are certain legislations
that are differ from every country. Through this module, I have evaluate that at the time of
undertaking business, implementation of all the legislations is crucial because it provide a clear
structure to the company for operating in market. With the assistance of this, I can easily enhance
my professional career that support me in improving my analytical skills, communication skills,
decision making skills and many more. This may directly support me in developing my
knowledge strong towards the business environment and how it affect the organisational
activities.
CONCLUSION
From the above mentioned report it has been evaluated that strategic planning is one of
the important activity for business organisation as it help in proving direction and guideline to
accomplish their competitive image. In addition to this, company also analysis market activities,
its position and competitive strength in order to evaluate the necessary improvement. By
analysing the same, company develop a strategic plan which focus on product quality not on its
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price. It is beneficial in increasing profitability level at market place. Along with this, various
tools including Ansoff growth strategy and porter's generic model that support in analysing
competitive advantage attained by company.
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REFERENCES
Books and journals
Bryson, J.M., 2018. Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
Wolf, C. and Floyd, S.W., 2017. Strategic planning research: Toward a theory-driven
agenda. Journal of Management. 43(6). pp.1754-1788.
Cassidy, A., 2016. A practical guide to information systems strategic planning. CRC press.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. John Wiley & Sons.
Kemp, R.L., 2018. Strategic planning in local government. Routledge.
Channon, D.F. and Jalland, M., 2016. Multinational strategic planning. Springer.
Nickols, F., 2016. Strategy, strategic management, strategic planning and strategic
thinking. Management Journal. 1(1). pp.4-7.
Hübner, A.H. And et. al., 2016. Last mile fulfilment and distribution in omni-channel grocery
retailing: a strategic planning framework. International Journal of Retail & Distribution
Management.
McLean, M., 2018. Understanding your economy: Using analysis to guide local strategic
planning. Routledge.
Feng, L., Govindan, K. and Li, C., 2017. Strategic planning: Design and coordination for dual-
recycling channel reverse supply chain considering consumer behavior. European
Journal of Operational Research. 260(2). pp.601-612.
Alam, K. and et. al., 2018. Assessing regional digital competence: Digital futures and strategic
planning implications. Journal of rural studies. 60. pp.60-69.
David, M. E., David, F. R. and David, F. R., 2017. The quantitative strategic planning matrix: a
new marketing tool. Journal of strategic Marketing. 25(4). pp.342-352.
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