Strategic Management of Marks and Spencer: A Comprehensive Analysis

[STRATEGIC MANAGMENT]
MARKS AND SPENCER
2018

STRATEGIC MANAGMENT
ABSTRACT
Strategic management is the term used to define the bundle of decisions and acts which are
undertaken to enhance firm’s performance (Rothaermel, 2015). The manager of an
organisation must have a thorough knowledge of the competitive market and
organisational environment which help in taking right decisions. It is necessary to conduct
a SWOT analysis in order to minimise the organisational weakness and makes use of
opportunities from the business. The strategic management gives a broader perspective to
the employees in order to deal with their competitive environment.
The study focuses on the strategic management of Marks and Spencer, as it is one of the
finest and most famous luxurious fashion company and supermarket store in the world.
The research will explain the current strategies of the chosen company and will identify the
suitable data to fill up the gaps in the Human resource department and marketing
department of the M&S.
As a conclusion outcome will be tested by utilising different tools such as Porters five force
model, VRIO model and TOWS matric to analyse the factors influencing the organisation's
environment. The value chain model can derive the strategic capabilities of the
organisation. Bowman’s strategic clock and strategic evaluation through SAF can be
identified in order to provide a feasible solution.
The research provides the findings and also provides some recommendation in order to
carry strategic mapping of the services. The implementation of the “Plan A” in the business
has helped in understanding the problems within the organisation and leads to further
investigation. Thus, it will help in approaching the business to the desired platform with
the support of business strategy.
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Table of Contents
ABSTRACT.................................................................................................................................................................... 1
CHAPTER 1................................................................................................................................................................... 4
1.0 INTRODUCTION.................................................................................................................................................. 4
1.1 MISSION, VISION, GOALS AND OBJECTIVES..........................................................................................4
1.1.1 MISSION STATEMENT.............................................................................................................................4
1.2 VISION STATEMENT.................................................................................................................................... 5
1.3 FUNDAMENTAL GOALS..............................................................................................................................5
1.4 OBJECTIVE STATEMENTS......................................................................................................................... 6
CHAPTER 2................................................................................................................................................................... 7
2.0 MACRO AND MICROENVIRONMENT ANALYSIS..................................................................................7
2.1 MACRO- PESTEL ANALYSIS......................................................................................................................7
2.1.1 POLITICAL FACTOR............................................................................................................................. 7
2.1.2 ECONOMIC FACTOR............................................................................................................................ 8
2.1.3 SOCIO-CULTURAL FACTORS........................................................................................................... 8
2.1.4 TECHNOLOGICAL FACTORS............................................................................................................ 8
2.1.5 ENVIRONMENTAL FACTORS.......................................................................................................... 9
2.1.6 LEGAL FACTORS................................................................................................................................... 9
2.1.1 KEY DRIVERS THAT AFFECT THE RETAILING INDUSTRY ARE AS FOLLOWS:..........10
2.2 MICRO- INDUSTRY ANALYSIS – NEW 8 FORCE MODEL...........................................................14
2.2.1 THREAT OF NEW ENTRANTS...................................................................................................... 14
2.2.2 THREAT OF SUBSTITUTE PRODUCTS......................................................................................14
2.2.3 BARGAINING POWER OF SUPPLIERS.......................................................................................15
2.2.4 BARGAINING POWER OF BUYERS.............................................................................................15
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2.2.5 INTENSITY OF COMPETITIVE RIVALRY..................................................................................16
2.2.6 DIGITALISATION................................................................................................................................16
2.2.7 GLOBALISATION................................................................................................................................ 17
2.2.8 DEREGULATION................................................................................................................................. 17
2.3 ANALYSIS OF OPPORTUNITIES AND THREATS OF THE M&S...............................................18
REFERENCES............................................................................................................................................................ 20
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CHAPTER 1
1.0 INTRODUCTION
Marks and Spencer Group Plc. is a Multinational retail organisation. They majorly deal in
the selling of clothes, luxury food products and home products. The company was
headquartered in 1884 by Thomas Spencer and Michael Marks in Leeds. The net revenue
generation of the organisation is around £10.622 billion by the year 2017 (Grundy, 2017).
The number of the employees working for the organisation is around 84,339. The business
leapt and by the year 2008, the company suffered a major financial crisis with an extended
version. To overcome such issue M&S has recognised the Plan A which helped to enhance
their business performance and store them often.
1.1 MISSION, VISION, GOALS AND OBJECTIVES
1.1.1 MISSION STATEMENT
Marks and Spencer attempt to identify their roles and responsibilities with respect to the
environmental conditions. This can investigate the economic, global and social
environmental process. The investigation of the environmental practices and market
conditions has been conducted by the organisation (Aguirregabiria, et al. 2016). This has
significantly explored the international trade and business dimension of M&S in the UK.
The mission of the M&S is to:
 Deliver high-end products
 Offer products at affordable prices
 Receiving customers good value for money
 The social revolution of the service through working in the clothes and food
department
 Providing new products in the different areas such as clothes, home, food and
financial services
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Interpretation: From existing mission statement of Marks and Spencer it has been
observed that they require an effective strategic plan through which the organisation can
provide specified services at the affordable price. Marks and Spencer actually targets a
niche market that offers the premium price to the quality products. This can be associated
with their reputation and brand value (Qaim, 2017s). The financial crisis of Marks and
Spencer has led them to a position of dealing with the internal and external both
challenges. The employees were facing the retention measures and external market
conditions such as share of the business were drastically dropping to the least variable.
This has marked them to propose a new mission statement.
PROPOSED NEW MISSION STATEMENT
The Marks and Spencer were set up in Leeds in 1894 to provide a quality product at
premium prices. This organisation has to produce goods with recognised services and
distribution network (Alizadeh, et al. 2016). The mission of the company is to maintain
their reputation in the market and increase the sale of the product and develop the
businesses which remain relevant to ever involving market and consumer tastes.
1.2 VISION STATEMENT
The aim of the organisation is to be the standard against the measured organisation. This
can set a benchmark with the companies and implement the same or similar strategy in
order to gain a competitive edge. The aspiration level of the M&S provides an increase in
sales and market share in retailing, become world's most sustainable major retailer by
2015. This can be continued with differentiation in the strategy and delivering freshness,
innovation and quality (Rothaermel, 2015).
1.3 FUNDAMENTAL GOALS
The fundamental goal is to become a standard pillar for the Plan A. This involves the fair
partnership with the organisation for health and well-being of the customer. The goal to
reduce the amount of waste generated from the factories and stores of the Marks and
Spencer. This can naturally help in protecting the resources of the earth. It can also help in
promoting principles of Fairtrade and accessing on the healthy lifestyles (Moutinho and
Vargas-Sanchez, 2018). By doing the right things, they can create new job opportunities for
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