Strategic Management: Analysis of Marks & Spencer

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
Establish company profile which includes industry structure, market position, country market
and size and background of company. .......................................................................................3
Analysis of the extent the Marks & Spencer has succeeded in following areas : Innovation and
Strategic Innovation,
CSR, governance and ethics in comparison to its competitors..................................................5
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Strategic management refers to administration and management of all resources which
are used by organization to fulfil goals and objectives. It involves various things to be
implemented like setting objectives, evaluating competitive environment, evaluating internal
organisation as well as ensuring that all strategies which organisation has made are properly
managed by organisation (Ansoff and et. al., 2018). The below report is based on Marks and
Spencer. It is a British multinational retailer which deals in clothing, food products as well as
home products. It was founded in 1884 by Michael Marks and Thomas Spencer. The below
report involves industry structure, country market and size, market position and background of
company. It also involve the extent to which company has engaged with and whether achieved
success in comparison with competition that is innovation and strategic innovation, CSR,
governance and ethics.
Establish company profile which includes industry structure, market position, country market
and size and background of company. Industry structure:- It refers to a planning tool which helps managers to enhance their
competitive strategy in accordance with environment. The industry structure determines
rules of competition as well as strategies so that company can improve their position and
become a strong competitor. In context with Marks and Spencer, they made various
strategies so that their market share can be secured. The retail sector includes selling of
goods to people though in small quantities. In this products are sold directly to consumers
and use various channels to earn more profit. There are many things in retail industry
which were invented like in 1929, supermarkets were invented, in 1950 shopping malls
started, in 1974 barcodes got initiated. In retail industry almost all products comes from
manufacturer which is transferred to wholesaler and then to retailer and ultimately to
customer. In context with UK, customers spend a lot of money in shopping whether they
do online shopping or go to shops. According to research, in March 2015, UK customers
spent approx £34 billion and most of it was spent on retail shops. According to Marks
and Spencer, they followed a oligopoly structure (Lasserre,2017). There is a fact that the
organisation is among the top oligopolistic it is difficult for new competitors to penetrate
market as company already established brand loyalty for their customers.

 Market Position:- It means determining image as well as identity of company so that
customers can make their perceptions which is initiated by product, price, place and
promotion. In context with Marks and Spencer, it is one of the top retail company and is
operating in 30 countries across the world. It has reach to a position where it is
considered as a premium brand in whole supermarket industry and it is seen that
customers are ready to pay high prices also because of its top position. They applied
various strategies through which they improved customer experience. According to
toady's market position, the brand has the most effective loyalty. Their market position is
high because it works only on one objective that is provide customers good better and
best products (Wheelen and et. al.,2017). Country market and size:- As a British multinational retailer the brand has expanded its
growth across all the world. Apart from British market the brand expanded its market in
India also. According to today's market research, company has around 71 stores and is
still investing in market with good market share. According to research, company has
earned revenue of Rs. 908 cr and is still expanding its market growth. It has also invested
in other Asian markets like Sri Lanka, Bangladesh. The largest contributing cities for
brand is Delhi and Mumbai.
 Brief background of company:- Marks and Spencer is among the top and largest retailer
in UK which has around 300 stores in their home country only. The company deals in
clothing, food, footwear, gifts and they also provide some financial services which
includes credit cards, life insurance , loans, pension. The company started life around 125
years ago when Michael Marks came to England. He was a owner of a market stall in
Leeds and determined everything in Price but as concept of Penny arrived, he stopped
selling expensive items. As the business was expanding and growing he approached Top
Spencer. He was good in accounting section and invested around 300 pound. The
company invented to launch clothing products because demand for ready-made clothing
was increasing (Rothaermel, 2016). Due to world war II, their main focus was on selling
stylish clothes from new fabrics like Nylon, Orlon. In 2008, the company made a joint
venture with Reliance retail. The brand was selling its products with” St. Michael label”.
The company main focus was on quality of products and maintained a good reputation
among all other brands. The brand has its vision and mission. The brand vision is to be at