Strategic Management of Marks and Spencer Company

This report discusses the strategic direction of Marks and Spencer Company in the retail sector, including industry structure, market position, and innovation. It also emphasizes CSR operations and governance and ethics associated with the company.

Strategic Management

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Strategic Management.......................................................................................................................3
Relevant sources for the task.............................................................................................................4
Judgement and recommendations......................................................................................................6
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................8
INTRODUCTION.................................................................................................................................9
INTRODUCTION
Strategic management is defined as providing the strategic direction to organisation so
that company can achieve all its different objectives behind the business. This report is based

on the case study of Marks and Spencer Company in respect to its strategic direction.
Company is a United Kingdom based retail organisation. In this report strategic direction of
Marks and Spencer Company will be discussed. Henceforth, report will emphasis on industry
structure, market position, market size and also the brief background about the company. This
report would also emphasis on innovation and strategic innovation in respect to the company.
This report would also emphasis on CSR operations related to the Marks and Spencer
Company. Governance and ethics associated with company would also brief in this report.
MAIN BODY
Strategic Management
Industry Structure
Retail sector is among the vast market sector in business environment. Structure of
retail industry is well diversified as it comprises with multiple products such as food
products, home products and clothing line. From the initial time retail sector is among the
leading market sector associated with business environment. As the sector comprises with
basic products requires to live as a human product demand is always huge in this sector.
Customers need day to day products to meet all its needs. As per many reports it can be
projected that retail industry comprises with the largest market size involve $350 billion as its
size across the globe (Altukhova and Semko, 2018). Over the priod of time retail sector has
entertained immense growth which has also allowed the sector to serve the systematic
structural form in industry. The industry structure denotes that foreign retailer comprises with
approximately 51% of the total market. It is also denoted that the top five retail sector
organisation also comprises with only 2% of total market position. As the sector consist the
immense growth opportunity it can be projected that competition becomes very aggressive in
the industry and every day new competitors are entering in the market which also further
expand the market competition in the sector. Many times due to small retailer the structure of
the industry get affected as they run their business in their own practices which also many
times affect the basic nature of industry on which entire business operate.
Market Position
Marks and Spencer Company is one of the leading brand associated with the retail
sector across the globe. Company has initiated its business from United Kingdom and

company ended up reached the local level of business base. In current time company has
operated business from approximately 14000 business locations across the globe. On the
basis of the positioning of company it is stated that company covers the market share of
approximately 10.78% in its clothing line. In food sector company consist up with
approximately 5% of market share. Company is growing at the rate of 6% that indicate that
company is gaining a positive response as a part of its business operations (Bergh and et.al.,
2016). Company is also engaged in online trading that also growing at the rate of
approximately 10% in the previous financial year. Company consist up with strong brand
position that denote from the market presence of company across the globe in retail sector.
Apart from aggressive level of market competition from brands like Tesco, Big Bazar, Asda,
Wall Mart and many other brands company has achieved this massive success and position in
market. Company is aggressively active over both mode online and offline mode of trading
that denote that Marks and Spencer Company carry the strong position as a brand in market.
Company’s Background
Marks and Spencer Company is based in United Kingdom. Company initiated its
business in the year 1884 and due to massive growth company is currently becomes one of
global leader in retail sector. Approximately 14000 business locations company is currently
serving as a part of its business portfolio (Cescon, Costantini and Grassetti, 2019). Company
currently carry the huge strengths like massive brand value at global level, customer loyalty
across the globe, innovation, online retailing, strong supply chain management system and
various other key factors that project the company’s strong position at global level. Company
also consist up with some weaknesses like limited resources, slow process of dealing with
customer grievance and many other factors.
Relevant sources for the task
As per the view of Drnevich, Mahoney and Schendel, (2020) it is interpreted that
Marks and Spencer Company is also associated with various issues that create challenges for
the company. Issues like high employee turnover as compare to other competitors like Tesco,
Asda, Wall Mart, Big Bazar at a global level. Employees are key resources associated with
the organisation. Due t high employee turnover company faces issues in serving the best
quality of operations; Inexperience in human resources restricts company in achieving the
best level of operational efficiencies and proficiencies against the operations company has
undertaken. Company carry a strong supply chain management system across the globe that

has also supported company in achieving the best level of operational efficiencies and market
performance. Currently company i involved in approximately 14000 business locations
across the globe. Supply chain management system of Marks and Spencer is much stronger
as compare to other competitors like Tesco, Wall Mart and many other competitors at global
level. This is the key strength of company as it consist the strong supply chain management
system which allows company to serve all the latest trendy products to its customers.
As illustrated by Konovalova and et.al., (2018) retail sector is currently facing many
issues due to COVID19 crisis. This pandemic has restricts the market growth of the sector.
Many peoples in society needed to lose their jobs and many employees could face the serious
pay cut during the lockdown. This entire situation has enabled company to entertain low sales
turnover in the current financial year at all across the globe. This crisis situation is not for the
Marks and Spencer Company but along with the company other competitors across the globe
are facing the same situation that has reduced the growth of the organisation. Marks and
Spencer Company carry the huge strength due to its online retailing or ecommerce trade
across the globe. Company is aggressively involved in ecommerce trade as it allows the
services ti customers to order from home over company’s websites. In the lockdown situation
and post lockdown company has entertained huge increment in its ecommerce trade. It has
boosted the ecommerce trade of company across the globe as compare to other competitors
like Asda, Teco who are also engaged in selling products over internet company has received
more demand in market.
At a global level companies are dealing with different issues. Koseoglu, (2016) has
projected inflation as among the big issues companies are facing at a global level. In all major
economics inflation becomes an issue that restricts the buying capacity of customers across
the globe. Inflation directly creates negative impact over thr purchasing power of customers
in market. It restricts the purchasing capacity of customers which directly influence
negatively the sales of company. Inflation reduces the value of currency that reduces the sales
of company as customers not able to buy the maximum products which earlier was possible
due to the buying power of customers. Marks and Spencer Company has also involved
inflation in its strategic planning and company also provide quality discounts over its
products to improve the purchasing power of customers. This strategic planning of company
has given a huge boost to the sales of company. For example Marks and Spencer Company
has provided discounts over online booking of different retail products, company also give

discounts to give benefits to customers. All these strategies used by company has directly
improved the buying power of target customers in market.
Marks and Spence Company has been involved in innovation and development.
Company always involved in research to channelizes some kind of innovation that can
support the growth and development of company in market. Innovation has always supported
company in expanding the growth rate and profitability in market. Due to innovation and
technological advancement company could enter in e-commerce trade that has completely
boosted the sales and growth rate of company. Today e-commerce trade has received an
effective growth rate of 10% across the globe (Vishnevskiy, Karasev and Meissner, 2016).
This is an improvise figure which denote that company got the opportunity to boost the
growth in market. Business environment at global level support innovation and technological
development to boost the growth rate of companies in market. Other competitors across the
globe of Marks and Spencer like Tesco, Asda, Wall Mart and many other competitors also
involve in innovation and technological development which has complete supported company
in boosting its growth rate.
Judgement and recommendations
On the basis of the above analysis it can be interpreted that Marks and Spencer can
give emphasis over e-commerce trade to boost its growth rate. It is recommended that Marks
and Spencer Company has already a huge presence in e-commerce trade across the globe.
Company can give huge emphasis over promotions to improve the e-commerce trade of
company. It is recommended that company can prioritise innovation in company. Innovation
in different practices of operations (Leskaj, 2017). Company can use innovation in its
marketing and promotions so that more customers in market can attract towards buying
company’s products. It is also recommended that company can also involve in various
corporate social responsibilities all across the globe. This function will allow company to get
in touch with all different potential customers that probably not an existing customer of
company. Management of Marks and Spencer Company can involve customers in these
corporate social responsibilities that will allow company to communicate with all such people
across the globe about the brand and its objectives and also about the social responsibility
company has undertaken.
The corporate social responsibility operation would allow company to spread the
awareness in people about the social responsibility and in case of company handling

successful social responsibility operation company will be able to boost its brand value across
the globe. Company should also give priority over strategic innovation rather than only
focusing over innovation. Strategic innovation is a strategic process of conducting innovation
in favour of the organisation. Strategic innovation is a systematic approach to conduct
innovation in favour of the organisation. On the basis of the available resources of Marks and
Spencer Company innovation will be implemented in company.
Marks and Spencer Company must cope up with the corporate governance principles
and codes in order to channelize different business operations. Corporate governance is a
code of conducts company can use to channelize business operations. This is the
responsibility and accountability of the company to deal with all the professional code of
conducts mention in the corporate governance. Financial governance is also an integral part
of the corporate governance function. This would support company in achieving all its
business objectives in the most professional manner (Parakhina and et.al., 2017). Company
must also come up with ethics in its business practices. Ethics play a huge role in expanding
long term growth opportunities in favour of the organisation. It is recommended that ethical
practices would support the organisation to establish its huge dominance across the globe in
retail market. Both the ethical practices and corporate governance would allow company to
achieve all its business objectives at a global level. This would also support company in
expanding the business scale at more locations across the globe.
CONCLUSION
This report has projected different aspects related to market dominance of the
company. Retail sector is among the fastest growing market sector across the globe. Various
factors will also play a huge role for the company involved in retail sector business like
innovation, strategic innovation, ethical practices, corporate governance and other associated
aspects. Innovation also supports company in boosting long term growth rate of company.
This allows company to boost its growth rate in both business practice and sales of company.

REFERENCES
Books and Journals
Altukhova, L. A. and Semko, I. A., 2018. Strategic management of competitive agribusiness
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Bergh, D. D. and et.al., 2016. Using meta‐analytic structural equation modeling to advance
strategic management research: Guidelines and an empirical illustration via the
strategic leadership‐performance relationship. Strategic Management Journal. 37(3).
pp.477-497.
Cescon, F., Costantini, A. and Grassetti, L., 2019. Strategic choices and strategic
management accounting in large manufacturing firms. Journal of Management and
Governance. 23(3). pp.605-636.
Drnevich, P. L., Mahoney, J. T. and Schendel, D., 2020. Has strategic management research
lost its way. Strategic Management Review. 1(1). pp.1119-1127.

Konovalova, E. E. and et.al., 2018. Forming approaches to strategic management and
development of tourism and hospitality industry in the regions. Journal of
Environmental Management & Tourism. 9(2 (26)). pp.241-247.
Koseoglu, M. A., 2016. Growth and structure of authorship and co-authorship network in the
strategic management realm: Evidence from the Strategic Management
Journal. BRQ Business Research Quarterly. 19(3). pp.153-170.
Leskaj, E., 2017. The challenges faced by the strategic management of public
organizations. Revista» Administratie si Management Public «(RAMP). (29).
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Parakhina, V. and et.al., 2017. Strategic management in universities as a factor of their global
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Vishnevskiy, K., Karasev, O. and Meissner, D., 2016. Integrated roadmaps for strategic
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INTRODUCTION