Strategic Management: Innovation, CSR, Ethics, and Governance

This report focuses on the strategic management of Marks and Spencer's, a major British multinational retailer. It discusses the company's industry structure, market position, country markets, and size. It also explores the company's CSR, ethics, innovation, and governance strategies.

Strategic Management

Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Company profile..........................................................................................................................2
Discussion about Innovation, CSR, ethics and governance........................................................3
Innovation and strategic innovation.............................................................................................4
Governance and ethics.................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
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INTRODUCTION
Strategic management can be defined as process related to planning, monitoring and
analysing and arrangement of all necessary activities in order to meet out goal and set target of
organisation. This process assists an organisation in gaining competitive advantage.
Implementing better strategies also assist firm in taking better decision which is really necessary
for their growth. Present report will lay emphasis on Marks and Spencer’s. It is major British
multinational retailers who are headquartered in London, United Kingdom. Report will lay
emphasis on Industry(s) structure, Market Position, Country markets and size, A brief
background of the company. It will also provide details on company’s CSR, ethics, innovation
and governance strategy.
MAIN BODY
Company profile
Industry(s) structure and Market Position: This can be understood by making use of Porters
five framework. This model assists in knowing about company’s position in market. Marks and
Spencer’s will be able to know about their threats and various opportunities which can be
grabbed by them in future. It includes the following:
 Threat of substitute: This can be considered as high in global market as there are so
many other products of same quality and affordable range are available in international
areas. On the other hand, threat of substitute in home country is low as there is no other
competition related to home appliances and food products. Further for international
market, M&S needs to be involved in implementing better innovative products (Durand,
Grant and Madsen, 2017).
 Threat of new entrants: It is low as large amount of investment is required to set up a
company which has better brand name and value than M&S. This is because all major
retailers in international market too has established a strong brand name, so these
companies can be involved in enjoying their customer loyalty.
 Bargaining power of buyers: This is high as consumers are provided with so many
options with other products and services like in India and China, so there they can dictate
their taste and services. For this Marks and Spencer’s can lower down their prices of
food.
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 Bargaining power of suppliers: It is low, because M&S is a listed company and all the
suppliers wants to deal with company with high brand name. This is beneficial and also
an opportunity for organisation to grow as they can implement more innovative products
at lower prices which is really necessary for being productive.
 Rivalry among competitors: It is high as global market also have other positioned
company, which can be preferred by consumers. In order to make sure that they are better
than their competitors, company is also being involved in providing high quality of
products and services all over the world. This will help them in competitive edge and also
assist them in building up their brand value as well as reputation.
Country markets and size: Marks and Spencer’s are a retail store which have 1380
stores all over the world. The Company is the holding company of the Marks & Spencer Group
of companies. They serve around 1416 locations as reports published in 2019. Company also
have more than 80,000 employees working with them. Firm has a strong brand position. They
are also engaged in providing consumers with products according to their needs and preferences
which has assisted company in gaining competitive edge.
A brief background of the company: It is a British multinational company
headquartered in London, England. Company has a specialisation in selling clothing and home
appliances. They have been marked as one of the best retailers in country. Marks and Spencer’s
have also been listed in London stock exchange. They provide their products and services
globally (Altukhova and Semko, 2018). Online services are also provided by them in niche
markets. In November 2011, company has announced to open 80 more stores worldwide in order
to become largest international retail sellers. They have made sure to provide high quality
products in order to gain competitive advantage over other brands. They have opened various
stores in India too and also in Netherlands they have opened a super market. Company is trying
hard to establish their global presence in order to grow and achieve their set target.
Discussion about Innovation, CSR, ethics and governance
Corporate social responsibility: There plan is to build a sustainable future while being in
business, this can assist them in having positive impact on well-being of consumers. Various
measures have been taken by company globally. The stores, offices and ware-houses of M&S are
carbon entrant, they are making sure that carbon emission produce by them is low. Working
towards controlling of green house effects all over the world. As stated by () they have also been
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involved in lowering down operational and green house value chain related to gas emissions.
Marks and Spencer’s are also being engaged in empowering women by making sure that
positions all around world in their company is hold by women. They are engaged in
implementing women leadership (Lynch, 2018). While dealing with all the stakeholders there is
a high-end use of plastics in packaging of food and clothes, store has ensured to motivate their
stakeholders to lower down use for same. In all over world company is being involved in
donating food and doing charities. They are engaged in giving work-placement to those who are
dis-advantaged in community. It is basically being done to help out those people who are
suffering. Company is making sure to have 100% recycled packaging in United Kingdom till the
coming year 2022. Emerging leaders training programme is being given to employees globally
and wherever the company has expanded their business.
Innovation and strategic innovation
Innovation
Innovation is referred as something new or change made to the existing product, field or
idea. Innovation is complex and companywide endeavour that requires cross cutting practices
and the processes for structuring, encouraging and organising. Innovation is very essential for the
growth and success of the business (Zhao and et.al., 2017). In this competitive world of
competition companies are required to compete with the different companies who are
continuously bringing innovative products and services in the market. Continuous innovation is
essential in the products and processes to meet the demand and needs of customer in the best
manner. Innovation aims at making the work of people faster and quicker. Marks and Spencer
are considered as giant in the retail multinational companies. It has brought various innovation in
the products and processes that had helped it compete to in the market successfully. It is required
to further innovate for increasing the sales and revenues. It could be seen that the growth of
company is showing downward movement as it is lacking innovation from few years. Company
has made sure to develop new and innovative products related to problems which is being faced
by consumers. This has assisted them in creating loyalty of consumers. They have also being
able to retain consumers through this, which is necessary for their growth.
Strategic innovation
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Strategic innovation refers to process of redesigning or reinventing the corporate strategy
for driving the growth of business for generating the value for company and the customers and
creating competitive advantage for the firm. This innovation types is essential for the
organisation to adapt to speed of the technological changes. Companies who employ the strategic
innovation are not necessarily required to change the goods or services they provide neither to
the customers nor to technologies supporting the products for becoming successful. The strategic
innovation mainly refers to the innovation projects which occur at management and executive
level.
The innovation of corporate strategies includes considerations such as identifying the
products and services that are required to be developed or reinvented, the market in which to
compete, business models to be developed and how the business processes could be optimized.
They are also required to consider about how they could expand customer base, position the
brand in relation to the target customers, making effective value chain and supply chain and
other marketing strategies. All these things are required to be considered while planning for
strategic innovation in the organisation. Companies nowadays are focusing towards the strategic
innovation as innovation of the products is complex and difficult process. All the companies
might not be successful in innovation but they are required to compete in the market for
surviving.
Marks and Spencer along with considering the importance of innovation for the business
has also considered the importance of strategic innovation. It had adopted the strategic
innovation and has redesigned the internal processes (Trigeorgis and Reuer, 2017). The
redesigning of processes has made the company to compete with other big multinational
retailers. It had also increased the marketing frontiers and increased the brand awareness. This
has enabled the company to increase the sales and revenues to considerable level. The strategic
innovation has helped the company to achieve the goals and objectives and strengthen its roots in
different markets around the globe. They have made sure to have better supply chain
management and for the adequate management of their employees, company has also started
making use of AI. This has made work easier of workers and they have also been able to be more
productive and creative. Manual work of employees in Marks and Spencer’s has been reduced as
they have started making use of automation. This has assisted company in growing.
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Governance and ethics
Marks and Spencer’s are being involved in following corporate governance and ethical
structure. All the decisions world wide has been taken by considering needs and demands of all
stakeholders. It is a combination of laws, rules and regulations which was to be followed by
company. They are also making sure to carry out all their transactions ethically. Ethics and
sustainability have affected their decision making. Main aim of company’s board is to develop a
better business by implementing accountability to stakeholders. Chairman has made sure that
there is being fair division of responsibilities (Hitt and Duane Ireland, 2017). They have
committed to provide high quality of products to their consumers and also made sure to be
honest with them. All key directors in Marks and Spencer’s directors have access to all the
information related to company’s matter so that better decisions can be taken by them. Company
has made sure to follow the ethical code of conduct in order to build their brand value and
reputation all over the world. This has assisted them in achieving their set target as well as
mission. The board of 2020 has also reviewed areas where further improvement is required and
firm is working towards it. Marks and Spencer’s have made sure that honesty and integrity is
being followed by them in all transactions. They are trying to provide consumer better value.
This has assisted firm in growing and also achieving set targets and objectives which is really
necessary for their growth.
CONCLUSION
From the above study it has been summarised that company has been involved in making
use of innovative strategies. Globally they have been doing well and various corporate social
responsibilities have been undertaken by them. This has assisted firm in gaining competitive
advantage. It has also supported them in achieving their set target as well as mission and vision.
Firm has also been involved working towards bringing out goods and services according to needs
and demands of consumers so that their brand reputation can also be increased. It has also been
analysed that threats of substitute products are high for the company as globally lots of
organisation sale these kinds of products. They have opened various stores in India too and also
in Netherlands they have opened a super market. Company is trying hard to establish their global
presence in order to grow and achieve their set target. It has also been analysed that better
training programme are also being given to emerging leaders and they are also being involved in
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supporting women all over the world to be better leaders. All these strategies have been adopted
by organisation.
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REFERENCES
Books and Journals
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.
Zhao, E.Y. and et.al., 2017. Optimal distinctiveness: Broadening the interface between
institutional theory and strategic management. Strategic Management Journal, 38(1),
pp.93-113.
Durand, R., Grant, R.M. and Madsen, T.L., 2017. The expanding domain of strategic
management research and the quest for integration. Strategic Management
Journal, 38(1), pp.4-16.
Altukhova, L.A. and Semko, I.A., 2018. Strategic management of competitive agribusiness
organizations model. International Journal of Advanced Studies, 8(2), pp.9-21.
Lynch, R., 2018. Strategic management. Pearson UK.
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