Strategic Management of Marks and Spencer

Strategic Management

Table of Contents
1.0 INTRODUCTION.....................................................................................................................1
2.0 MAIN BODY.............................................................................................................................1
2.1 Overview of the company................................................................................................1
2.2 Porter’s Five forces model................................................................................................2
2.3 PESTEL Analysis.............................................................................................................4
2.4 SWOT analysis.................................................................................................................6
3.0 Main Findings............................................................................................................................8
4.0 CONCLUSION..........................................................................................................................9
5.0 RECOMMENDATION...........................................................................................................10
REFERENCES..............................................................................................................................10

1.0 INTRODUCTION
Strategic management is basically associated with management of all available resources
of an organization in order to achieve its desired goals and objectives. Thus, Strategic
management is a vital process that involves setting of objectives, analyzing the current situation
of competitive environment along with evaluation of internal organization, its strategies, and
ensuring a effective management of all available resources to accomplish the set objectives and
desired goals (Ansoff and et. al., 2018). The orgnisation selected for assignment is Marks and
Spencer which is a well known major British multinational retailer having its main headquarter
in London, England, UK. The current assignment is based on analysis of strategic management
strategies of Marks and Spencer ad consists of evaluation of its mission, vision and objectives.
Further, to evaluate the complexity of the relationships between the organisation and its
competitive environment use of Porter’s Five forces model is made. Further, a discussion about
the internal and external environment of marks and Spencer is also there with the help of
PESTEL and SWOT analysis.
2.0 MAIN BODY
2.1 Overview of the company
Marks and Spencer has taken out as one of the most popular brand and top British Retailer
the main headquarter of which is situated at London, England, UK. Marks and Spencer basically
deals in selling cloths, food products and other home products that consists of Blazers,
Cardigans, Jeans, shirt, boots, sandals, casual shoes, home accessories, furniture, etc. through
more than 959 stores across the various locations of UK and many other reasons of world like
Turkey, Spain, France, Ireland, Hungary, Finland etc (Moutinho and Vargas-Sanchez, 2018).
The main mission, vision and objectives of Marks and Spencer consists of the mission statement
of Marks and Spencer that is based on key purpose to make inspirational quality accessible to
others through the depth and range of its products that consist of best quality product that are
superior than other competitors.
Beside this, the vision of Marks and Spencer is to make higher money for its shareholders
through improving its profit margins wherever possible. The main objectives of Marks and
Spencer consists of designing more appealing and innovating products for its customers products
along with selling theses products at prices that their customers are prepared to pay (Newburry,
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Deephouse and Gardberg, 2019). Further, the main focus of Marks and Spencer is on
strengthening its internal competencies and skills to come up with more better and superior
products and services that cater the needs of customers and fulfils their expectations along with
leading better competitive strength and business position in the external environment. Thus, the
main values of Marks and Spencer are based on quality, services, innovation, trust and
commitment in customers to achieve its set targets and desired objectives.
Use of various strategic management theory and tools are made by an organisation to
achieve its set targets and desired gaols in order to have better analysis of complexities of its
business environment along with internal strength and competencies (Hitt and Duane Ireland,
2017). A discussion and comparison between the various strategic management theories and
approaches that are used by Marks and Spencer to set a balance between its internal resources
and current environmental situation in order to achieve desired objectives are provided below:
2.2 Porter’s Five forces model
Michael Porter’s competitive forces model or model of competition support is used by an
orgnisation for analyzing its competitive environment. Every business industry comprises of
many organisations and firms that are dealing in somehow similar products and are close
substitutes of each other thus, this gives rises to competitions and trade war between them as
they are mainly targeting a common range of customers (Meyer, Neck and Meeks, 2017). Thus,
use of Porter’s Five force model is made by Marks and Spencer as it yield help and set a
framework for identifying and analysing the five main competitive forces that exists in
environment of organisation and shape the operations and resources of an organisation through
determining the weakness and strengths of an industry. The main elements of Porter’s Five
forces model in context of Marks and Spencer are explained below:
2.2.1. Threat of Competitive Rivalry
The retail industry of UK is fiercely competitive where a cut throat competition exists
between big retail market consists of huge brands like Tesco, Debenhams, Macy's, John Lewis
Partnership, Aldi UK, Asda, etc. Thus, a high level of competitive rivalry is faced by Marks and
Spencer that is not good for its productivity and profit margin (Newburry, Deephouse and
Gardberg, 2019). The main reason for high competitive rivalry consists of the fact that many
other companies like Next plc and other orgnisation had enter into its market with similar quality
goods along with affordable price and up-to-date fashion that has lead huge issues for Marks and
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