Strategic Management: Clear Purpose, Vision, Mission, and Objectives

This document provides an overview of strategic management, focusing on the value of clear purpose, vision, mission, and objectives in setting the strategic direction of an organization. It discusses the competitive advantage using the VRIO framework, analyzes the external environment using the PESTLE framework, and explores Porter's five models. The document also includes a review of an organizational strategy.

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................1
Critically evaluation of the value of clear purpose, vision, mission and objectives in setting the
organisational strategic direction................................................................................................1
The competitive advantage using VRIO framework .................................................................2
Analysis of external environment using PESTLE framework..................................................4
Porter's five models.....................................................................................................................5
A review of an organisational strategy .....................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic management defined as it is the administration of an organisation resources to
acquire its aims and objectives. It involves the setting objectives, analysing the competitive
environment, identifying the internal organisation, evaluating the strategies, and assuring that
administration acts out of the plan of action around the organisation. Strategic management
divided into various studies, approaches, outline, how strategy must be developed, although a
descriptive approach looking forward and focus, how strategy put into practice. In this all threats
and opportunities are accounted one or more like major guiding principles to be implemented.
Strategic management plays important role in business culture in term of skills, competencies of
the personnel as well as organisational structure. All important factors are convince how an
organisation can acquire its stated objectives. This report include the clear purpose mission,
vision, objective of the Mark and Spencer organisation along with the strategic direction with
suitable example. It also include the VIRO framework and PESTEL framework analysis external
environment of the enterprise of the Mark and Spencer. It involves the porter's five model, in last
give the review of the organisation strategy. What is the advantage or disadvantage(Ansoff and
et.al, 2018).
Critically evaluation of the value of clear purpose, vision, mission and objectives in setting the
organisational strategic direction
Organisation strategy occur the some collection of the plan of action in which company
intended to take a achievement aims and objectives along with the goals of the organisation. It is
a mixture of the vision and mission of the organisation which gives support in ethical manner in
terms of better growth, longer sustanibility, encourage towards the excellence which include the
success of the organisation(Velikorossov and et.al, 2020). The major reason to make the plan of
actions is to assure the business can run effectively and efficiently of the operation of the
company as well as profitability ratio. It helps to make best working culture and climate of the
organisation with a positive atmosphere to workforce so that they are able to give significant
productivity to the company.
Mission: It is a nominal statement which states that is why an company is exist, it occur
to an overall goal of the organisation, mission statement of Mark and Spencer is looking forward
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to make the value of the customer, to gain or earn their loyalty for the whole time. This thing
make the brand value as well as image of the organisation for lifetime. Organisation insure that
consumer are given best availability of the goods and services from the Mark and Spencer
employee. This development of an atmosphere where each and everyone will tend and able to
acquire their potentials and do the contribution in the continuation growth of the
company(Schilling and Shankar, 2019).
Vision: Organisation occur the mental overview of an liable along with desire able
upcoming state and position. It describes the ambition for the future along with the destination of
an organisation. The vision line or statement of Mark and Spencer which shows the highly
valued for the consumers which they are looking forward to serve their products and the
communities which they operates the production.
Objective: it occur to the something which specified the particular target which
necessary to fulfil the nominal period of time to acquire the reasonable aims and objectives.
There are various objectives of Mark and Spencer.
 To expand the business, increase the sales along with the high profit.
 Decrease their prices, and the objective is to create the shopping cheaper and worth
able for the average households.
 To give the introduction about health eating product in the vast range of groceries
which provide to the customers.
 To create a large online shopping site, Mark and Spencer objectives gives an
groceries items, electronic and clothing along along with the number of offerings
and services through shops and E commerce sites.
Purpose: The purpose of the Mark and Spencer is to be Champion for the consumers for
support them to enjoy the better quality product along with the best services, with an healthy and
lavish lifestyle. A consumer is looking forward for great quality products with affordable price.
This thing gives the great value which they can simply in which Mark and Spencer focused on
delivery their goods and services in the best possible way(Pfarrer and et.al, 2019).
A proper cleared overview of the vision, mission and purpose along with the objectives
add on the value in decision making method of the plan of action which is used through the
organisation in order to acquire the desired goal.
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The competitive advantage using VRIO framework
VRIO defined as to analyse the frame work of the business which is used for
implementation for the organisation which is uncover and protect the resources along with the
capabilities that gives long term tactics and competitive advantage to the company. This is also
elaborate the nominal process of strategy which starts with the vision statement and the circular
way with the objectives internal and external environment analysis. Building of strategy and
implementation which is given below of the perception VRIO analysis in addition of Mark and
Spencer(Ginter, Duncan and Swayne, 2018).
Basis Valuable Imitable Rare Organised
Human
resources
YES NO NO NO
Brand image YES NO YES NO
Technology YES YES YES NO
Supply chain YES YES YES YES
Valuable resources: This thing occur to an resources that add on the value by facultative
the organisation in the exploiting opportunities and give to support in to argue against the
difficulties. Valuable resources are help to organisation to enhance the sensed competition. In
the addition of Mark and Spencer organisation which is most value able function is human
resources. They are mandatory to keep support or help the organisation to accomplish the plan
into the strategies by organisation able to generate the revenue and acquire the higher
profitability, along with the supply chain, technology, brand image and human resources of the
Mark and Spencer. The vital role of the success and longer sustanability of the organisation.
Mark and Spencer having a wonderful image in the market place that help to enhancing the sales
revenue, technology which is used the operation of an organisation which help to maintain the
Quality of goods and services and supply chain is the essential aspects in distributing the
products to the customers(Makadok, Burton and Barney, 2018).
Rare resources: This resources is looking forward to acquire through one or few
organisations, it is considered to be rare, in the addition of Mark and Spencer organisation. It is a
rare resources are brand image, technology and supply chain. This is multinational organisation
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as well as strong brand recognition around the global nation. In which it stands for another
retailing organisation. Technology is used through the organisation is also rare that help to keep
stand in various terms of the quality of goods and services.
Imitable resources: This resources which can be easily imitate through the other
organisations. If resources is expensive to imitate, then it is difficult for others companies. The
concern organisation, supply chain and technology can be purchase implement by any
organisation, supply chain occur the process that follow while distribution of the product and
services. Which is copy the other organisations(Moutinho and Vargas-Sanchez, 2018).
Organized resources: This resource will not give any benefit to the organisation, till they are
unable to organised in ethical manner. In the relation of Mark and Spencer they are able to well
defined and organised the resources which gives positive results and help in the success of the
organisation. Mark and Spencer is multinational retailer in which supply chain is the most
organised resources.
Analysis of external environment using PESTLE framework
PESTEL analysis occur the framework which is used through the organisation to evaluate
the external and macro atmosphere in which organisation operates on direct affect on the
performance and productivity of an organisation. This analysis help in giving the better
penetration of the external factor which played a vital role in making the plan of action decisions
for the long term tactics and success of the organisation. Method of the PESTEL analysis which
is given below in the addition of Mark and Spencer(Dzwigol, 2020).
Political Factor: In this Factor rules and regulation made by government, which
involves the political stability that means there is a few changers in the terms and condition. This
factor could be give the advantage to the brand and also organisation is well recognised in the
UK, so the political factor have the less impact on the organisation. However, on the other side
of Mark & Spencer could face the difficulties and uncertainty in the trading of goods and
services in the outside territory boundaries due to the BREXIT.
Economical factor: This factor depend upon the economic conditions and performance
of an country which affects the profitability of the company. This factor includes the inflation
rate, exchange rate, interest rate, disposable income and customer confidence which spending on
specific commodity. UK has well developed country and has a great economic conditions along
with the advantage for the Mark and Spencer to enhance the better growth and expansion of
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business. There are various factors which have negative affect on the result of the company.
Legal factor: The terms and condition made by the government which can convinced the
decision making of the organisation. This involves the maternity and paternity leave and some
other rights which is protected legally. In UK there are different rules and laws for the retailing
organisation and fore the multinational trading which affect on the business of Mark and
Spencer, which focus on the excellent and proper regulations of the enterprise plan of action
which provide support in the growth of longer sustanibility of the organisation(Teece, 2019).
Environmental factor: This factor involve the sound, light, food, water, pollutants and
natural misfortune that convince the living being and physical environment. The government of
UK consists the various terms and condition in relation to environment and gives the subsidy
along with the compensation to the organisation. Which are following ECO friendly process in
their production. This is an benefits for the Mark and Spencer looking towards for attracting the
customers as well as reduction in the cost efficiency. Including all these factors, it shows the
overview of the organisation which encourage towards the improvement and implement new
strategies.
Porter's five models
It is a business model which helps an organisation to analyse why industries and
organisations are able to continue different profitability levels. There are five forces which
defines the attractiveness of market as well as gives shape to its competition. The five forces
include threat of new entrants, threat of substitute products, power of suppliers, power of
customers and industry rivalry. The porter model of Mark and Spencer is explained as below:- Threat of new entrants:- When a new organisation comes in the market it becomes a
threat for the existing organisation as it affects organisation in terms of profitability as
well as competition gets increased. In context with Mark and Spencer, there were new
entrants in retail sector which put pressure on organisation as new company used
different methods of doing things and adopt low pricing strategy due to which their
customers were more interested in purchasing products from mew competitors. So,
company faced various challenges which created many obstacles and affected their
success. Mark and Spencer has many competitors like Zara, primary which led to a
negative impact on their success. So, to tackle all those challenges and barriers they made
certain strategies enhancing economies of scale as well as innovating new and different
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products. The threat of new entrants is faced by every organisation and in retail sector
new entrants are the major threat(Okumus and et.al, 2019). Threat of substitute products:- It means when competitor is offering different, attractive
product at low price and fulfilling all needs of them. For every organisation the threat of
substitutes is there so in case of Mark and Spencer the threat of substitute is high. Mark
and Spencer clothing business faced high threat because it is very simple and requires no
effort in copying designs by competitor. So, other organisation easily copy all clothing
designs and were selling it at a low price. So, they made many strategies in innovating
their product so that customers can get attracted and their brand position still remain at
top. They made strategy like focusing on needs of customers instead of just focusing on
what products they are purchasing. There are many substitutes for Mark and Spencer like
Tesco, Next and so on which were offering similar products at low price. They tackled
these challenges by understanding needs of customers effectively(Konovalova and et.al,
2018). Bargaining power of suppliers:- When there are many suppliers present in the market
then their power remains low but if there are limited number of suppliers then their
bargaining power is with only. In context with Mark and Spencer, the bargaining power
of suppliers is low as they were not relying only on one supplier but focused on all
suppliers around the globe. As bargaining power of suppliers in case of Mark and
Spencer is low through which they faced mass purchase. Earlier they had only British
suppliers whose cost was very high but they started dealing with other suppliers also for
lowering the cost(Carayannis, 2018). Bargaining power of buyers:- It means when customers puts pressure ob organizations
that they want effective services, high quality products as well as low price. The
bargaining power of buyers can be high if there are many competitors available in the
market who are offering similar products but it can be low if there are not much
suppliers. In case of Mark and Spencer the bargaining power is high because there are
many competitors in the market and customers can purchase similar product at a low
price from another company. As customers demand gets increased due to which company
profitability as well as success was getting affected because all customers want to pay
least possible price. Due to this they faced high bargaining power of buyers because they
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had many competitors like Zara which are offering high quality products. The company
can make effective strategies to deal with challenges like innovating new products quicly
and customers ask for discounts so if there will be new products, new clothing designs
then their focus will be on purchasing new products.
 Rivalry among existing competitors:- In the market there are many competitors present
who have equal power which lead to high competition due to which buyer power also
increases because they get many choices in purchasing product. There is always high
competition in retail sector especially in clothing as well as food and beverage industry.
The major competition for organisation is online shopping where customers get products
at low price and they don't need to go any where. In case of Mark and Spencer, their
faced high rivalry among competitors. There are many competitors who implemented
different practices to achieve success and it affected the organisation operations as well
as its profitability. Due to high rivalry they had to set low prices which was decreasing
their profit. The company made many strategies to tackle their competition like building
economies of scale so that they can beat their competitors more effectively and also
increasing market size. The company used strategy of membership cards but it was also
used by competitors(Wang, and et.al, 2020).
A review of an organisational strategy
The concern company is the largest retailer company in the global nation. Which stands
the second position in the universe measure through the gross revenue with providing the best
quality of goods and services, organisation has maintained its growth in the market place.
Organisation has been use different kinds of organisational strategy which gives the support in
long term tactics and success of the organisation. The mission and vision of the Mark and
Spencer it shows the better understanding of the aims and objective which give the more value
growth in the enterprises. Company looking forward on new innovation and technology which
help to giving excellent quality of goods and services as well as holding of the
consumer(Ketchen Jr and Craighead, 2020).
As per the above evaluation organisation is VRIO analysis help the organisation in the
better implementation as well as better understanding in the relation of different strength and
qualities which gives the support in developing the competitive advantage with in the
organisation. According to PESTEL analysis organisation is able to determine there are different
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external factors which have the direct affect on the organisation outcomes and decision making
process, which deal with in the organisation along with the different plan of actions. In which it
helps for growth of the business along with the expansion and it defensive against the threat. In
relation to porter five models it helps to organisation to analyse the competitive benefits and
threats in which organisation build enterprise more effective. Although Mark and Spencer
enhanced its development and growth through building the effective consumers relationship and
massive customer base or high footfall of the consumer which accomplish their need and
demand. If organisation come with new innovation, customer will enhanced and they are willing
to pay. This thing gives the advantage to the company in terms of profitability(Khosiev and et.al,
2019).
CONCLUSION
From the above analysis it is concluded that organizations must set a proper vision,
purpose an should have clear objectives so that they can set strategies effectively to achieve
success. It is necessary for an organisation to earn competitive advantage because it lead to
produce goods and services in more effective way as well as at low prices. If a organisation has
achieved its competitive advantage then they will not be affected by their competitors. As there
are many competitors present in the market so for some organisations it becomes a threat also
they use similar strategies as well as offer same products at low price which affects profitability
of organisation because all customer wants high quality products and want to pay less. Due to
more competitors the power of buyers also increases as they get many choices to purchase
products. So, an organisation should also make changes in their strategies if another organization
is using more effective strategies so that they can become a successful organization.
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REFERENCES
Books and Journals
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Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Ketchen Jr, D.J. and Craighead, C.W., 2020. Research at the intersection of entrepreneurship,
supply chain management, and strategic management: Opportunities highlighted by
COVID-19. Journal of Management, 46(8), pp.1330-1341.
Khosiev, B.N., and et.al, 2019. Strategic management and zootechnical control in pig-breeding
enterprises: development of its information base. Research Journal of Pharmaceutical,
Biological and Chemical Sciences, 10(1), pp.1267-1279.
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Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
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