Strategic Management: Competitive Analysis and External Factors

STRATEGIC
MANAGEMENT

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Compare theory and practice.......................................................................................................3
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
For the company to be able to achieve their goals and objectives in the market the
company needs to have a formed strategy for themselves which is known as strategic
management. This can make the company be able to meet the demands of the customers and
satisfy them further. Marks & Spencer was established in 1884 which means 136 years back and
the company is currently having its headquarters in London, United Kingdom. The company is
currently having more than 80,000 of workforce and the founders of the organization are Thomas
Spencer and Michael Marks. The report is going to discuss the competitive analysis of the
organization which is going to make the organization be able to compete in the market
effectively. There is also a good understanding by analyzing the external factors of the
organization to have further planning and decision making be able to take place in the
organization.
MAIN BODY
Compare theory and practice
There are a lot of tools and measures which are present for a business in the market like
competitive analysis, comparative analysis positions and business environment which is going to
help an organization be able to develop and achieve their targets and goals in the market. The
demands and needs of the customers are changing therefore businesses in the market have to use
these factors to be able to maintain their reputation in the market.
Business environment analysis
The business environment of an organization will affect the decision making in the future
if this factor is not understood well. There are already a lot of changes which M&S is having for
them and without the right framework the organization will not be able to operate effectively in
the market (Barney, 2017). There has to be good collection of information about the market only
then the organization will be able to gain competitive advantage for a long run.
PESTLE Analysis

For making an organization is able to operate effectively and efficiently in the market there
has to be good understanding of the external factors which are present for the company in
market. PESTLE analysis standards for political, social, economic, technological, legal and
environmental factors which are going to have an influence on the working of M&S in the
market. There is a standard and expectation which the organization has developed for themselves
in the market and the company will have to standard to them so that they have a higher brand
image and recognition globally.
 Political factors
The policies and laws are the same in the country which is because the stability in the
political power is same in United Kingdom making the company have good advantage. The
company is using the same strategies and measures which is providing the organization with a
better sense of direction. The company understands the trading and taxations laws and have the
right measures for implementing them in the organization as well which is due to the experience
which the organization is having in market (David and David, 2016). There are changes in a lot
of factors after Brexit like in culture, religions, etc which the company will have to get in the
organization to have higher functioning. After Brexit there are also a lot of restrictions which
M&S is having for them to be able to operate effectively and controlling them is very important
for the reputation of the business.
 Economic factors
There is a lot of investment which M&S is making for themselves to have a stable economic
factor and find a good balance as well in the market. There are right strategies and measures
which the organization is taking for themselves which is going to make the organization have
higher profitability in the market (Berisha Qehaja, Kutllovci and Shiroka Pula, 2017). M&S has
long term goals and for that there has to be good planning which the company is having due to
their experience in the market. The currency value is changing which is impacting the pricing of
the products and services of M&S in different countries due to inflation in the country. The
company is reducing the unemployment rates but there have to be better decisions for the
economic stability which the company will have to take for the future.
 Social factors