Strategic Management Plan for Marks & Spencer

This document provides a strategic management plan for Marks & Spencer, a well-established retail organization. It includes an analysis of the impact of macro environment on the organization, internal environment and capabilities analysis, application of Porter's five forces model, and more. The document also discusses the company's mission, vision, and overview.

Strategic Management
plan

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................4
P1) Apply suitable framework to analyze impact of macro environment on organization and its
strategies..................................................................................................................................................4
TASK 2.......................................................................................................................................................5
P2) Analyze internal environment and capabilities of organization with suitable framework.................5
TASK 3.......................................................................................................................................................8
P3) Apply porters five forces model for evaluating the competitive forces for market sector of
organization.............................................................................................................................................8
TASK 4.....................................................................................................................................................10
P4) Apply different theories, concepts and also interpret strategic plan of organization.......................10
CONCLUSION.........................................................................................................................................13
REFRENCES............................................................................................................................................14

INTRODUCTION
Strategic management plan is a document which is prepared in order to facilitate
communication within organization, achieve desired goals and strengthen the future position of
company. Under this, a lot of strategies and plans are prepared so that organization can attain
predefined goals and objectives within stipulated period of time. Strategic planning helps in
preparing plans, define vales and create a vision in order to provide an appropriate direction.
Strategic management planning is a future oriented process which allows manager to prepare
appropriate set of actions in order to meet with future circumstances in best possible way (David,
David and David, 2016). In the current report, Marks & Spencer is taken into consideration
which is well established retail organization that deals in fashion accessories and clothes. It
offers a wide range of products for all segments of customers. It was established by Marks &
Thomas Spencer in the year of 1884 and headquartered in London UK. The present report is
based on strategic management and plans of organization. It includes suitable framework for
analyzing external environment. Apart from this, tools of internal analysis such as VRIO and
SWOT analysis are also covered in the report along with the Porter’s five forces model for
analyzing competitive position of organization. At end, it included necessary theories, models for
future betterment and enlargement of organization.
Overview of Company: Marks and Spencer is British multinational organization which
deals in varieties of products like clothes, home products and more. It was established by Marks
& Thomas Spencer in the year of 1884 and headquartered in London UK. The company sales
most of its products with own brand label (von Flüe, 2017). However, it has started business in
UK but now significantly expanded the business in different countries across the globe. Majority
of customers of organization belongs from premium segment. In addition to this, Marks and
Spencer has strong brand image among target segment which allows organization to charge
premium price.
Mission: “The mission of organization is to provide higher quality products to customers
for strengthening the market position at global level”
Vision: “The vision of Marks and Spencer is to become a leading company in fashion
industry to earn potential amount of profit margin”.

TASK 1
P1) Apply suitable framework to analyze impact of macro environment on organization and its
strategies
Macro environment comprise various elements which are related to external conditions in
which a business is being operated. There are a lot of factors are included in macro environment
that put profound impact over company. For running a business significantly, it is imperative to
analyze macro environment and its impact. Apart from this, there is also requirement to prepare
suitable strategies in order to face the uncertainties associated with macro environment. However
external environment affect business operations, but it can be controlled by managers. There are
certain models have been evolved for analyzing macro environment. PESTLE is a widely used
framework for the purpose of getting insights of external environment. In this regards, elements
of PESTLE analysis are mentioned below:
Political Factors: Under this, elements related to government policies, regulations are
included. It is analyzed that change in current political framework also bring changes in existing
policies and rules which further affect business entities (Chiwawa, Fox and Wissink, 2020). In
reference of Marks and Spencer, majority of its sales comes from European Countries which is
not longer possible due to the implication of Brexit. The political event Brexit hamper
relationship of UK and European countries which adversely affect sales & profit margin of
organization.
Economic Factors: It is concern with economic elements such as interest rate, disposbel
income, cost and more. In context of Marks and Spencer, it is working within different countries
so affected with economic conditions such as inflation, downfall. It is stated that now people of
UK are more inclined towards local and small retail shops due to reduce down in purchasing
power. However, it allows organization to enjoy the premium status but also bring a downfall in
current customer base.
Social Factors: Social factors are associated with perception, personality, attitude,
behavior and other such elements. In context of Marks & Spencer, it is a well known and old
brand due to which it is not longer able to attract youth segment (Shin, Park and Lee, 2016).
Most of the individuals associated with brand are senior and old age people thus organization is

losing its grip on latest generation. Therefore, company needs to rejuvenate brand for gaining
attention of young generation.
Technological Factors: In current challenging world, technological factors is something
which need to consider by each and every organization for sustaining in such a challenging and
competitive environment for longer run. In reference of Marks and Spencer, they make sure to
adopt latest technology for updating the business practices. For this purpose, company ensure
significant presence over digital platform and also looking forward to embark artificial
intelligence in future period of time.
Legal Factors: Legal elements are concern with rules, regulations, compliances which
are formulated so that company can operate business in systematic way. In context of Marks and
Spencer, they have faced a lot of disputes and legal allegation due to negligence of legal
elements. Due to Brexit, there are huge changes have been introduced in existing laws which will
put tremendous impact over company and its operations as well.
Environmental Factors: In present time, people are highly concern about environment so
it has become imperative for companies to assess the impact of their operations over
environment (Bolland, 2017). Mark and Spencer is a prestigious brand so they are required to put
efforts for environmental well being and sustainability. For this purpose, organization is
promoting the concept of sustainable retail industry and also implies appropriate techniques for
environmental protection.
TASK 2
P2) Analyze internal environment and capabilities of organization with suitable framework
Internal environment is made with resources and competencies which differentiate an
organization from others. There are ample of resources such as employees, knowledge, finance
and more included in internal analysis. Internal environment is important in order to gain
competitive edge and it makes an organization familiar with its core competencies. Each and
every company has some different capabilities through which it is easy to sustain in competitive
market place for longer duration.
VRIO analysis:

It is a strategic tool which is developed for protecting resources and capabilities of
organization that is crucial for getting an edge over competitors. Under this, resources are
evaluated in order to examine the internal performance of company (Anyakoha, 2019). These
resources are employees, finance, know-how and so on. By applying this framework,
organization can easily prepare effective strategies for getting an upper hand over rivals. It is
based on four dimensions such as value, rare, inimitability & organization.
Resources Value Rareness Imitability Organization
Successful
implementation
of digital
strategy
Yes No Yes Yes
Supply chain
network
Yes Yes No Yes
Quality of goods Yes Yes Yes No
Brand
reputation
Yes Yes Yes Yes
Value: It comprises resources which are valuable for organization and play a great role in
enhancing the brand reputation. As per above analysis, all resources such as implementation of
digital strategy, brand reputation, quality of goods and supply chain all are highly valuable for
Marks and Spencer.
Rare: It is the other component of VRIO analysis as per which resources need to be rare
so that it provide an edge to company over rivals (Gunawan, 2019). In current scenario, supply
chain network, quality, brand reputation of organization is rare which will help in sustaining in
competitive market place for longer period of time.
Inimitability: According to this component, resources need to be inimitable which cannot
be copied by others easily. It is important to bring the uniqueness. In current scenario, quality of

goods, brand reputation are some rare such resources which are inimitable and cannot be easily
duplicate by competitors.
Organization: It is the last element as per which resources need to be organized in an
effective way so that it is east to make optimum use of those resources (Hodgkinson and Healey,
2018). In context of Marks and Spencer, resources are highly organized which will help
organization in order to get growth and success in future period of time.
SWOT analysis
It is a tool which is specifically used for the purpose of internal analysis as it provided
significant information about strengths and weakness of company through which, suitable
strategies are prepared for further betterment. Along with this, SWOT analysis also enables
company in order to identify the opportunities and threats which influence business in an
efficient manner.
Strengths Weaknesses
 Marks and Spencer has strong
ecommerce infrastructure which allows
company in order to target huge
segment of customers at global level
(Fenwick, Vermeulen and Corrales,
2018).
 It focuses over providing positive
experience to customers for
maintaining positive reputation of
brand in market place.
 Brand reputation of Marks and Spencer
is really high which differentiate
company from competitors.
 Financial performance of Marks and
Spencer is not remarkable from past
several years.
 The company is highly depended on
UK market which affects its market
position in other countries.
 Marks and Spencer has been faced a lot
of legal allegations of not obeying law
in prescribed manner which affected its
brand value in adverse manner.
Opportunities Threats
 Offering new range of products and
reshaping the cloth segment might
 Increasing competition and entry of
new players is a threat for organization

provide positive response to company.
 There is opportunity to expand business
in emerging countries for earning
substantial amount of profit margin.
which will affect its current positioning
in market place (Dandagi and et. al.,
2016).
 Brexit is also a threat for Marks and
Spencer as it has been affected its
position across the European market.
Internal capabilities:
It is analyzed that Marks and Spencer is a well known name in retail industry as the
company has been made its significant presence in market over the period of time. Marks and
Spencer focuses over quality of products and customer experience which allows company to
enjoy strong and positive brand positioning (Tumidei, Alexiou and Bourne, 2020). It is stated
that customers of organization are loyal and have the trust over brand. With this strong brand
image, it is easy for Marks & Spencer to face and sustain in competition for longer period of
time. In addition to this, they also focus on adoption of new and evolving technologies for
providing better experience to customers. These internal capabilities provide an edge to Marks
and Spencer over its competitors which is important to stay in market place for longer period of
time.
TASK 3
P3) Apply porters five forces model for evaluating the competitive forces for market sector of
organization
Competition has become a part of business in current time. In each and every sector,
there is extensive competition where all the business owners want to gain success. It is
imperative to analyze the level of competition present in market place as it further assist in order
to prepare suitable strategies for success. Market is made with several parties such as buyers,
suppliers, competitors and more. For this purpose a model called Porter’s five forces is applied
by managers. This model signifies level of competition, attractiveness, profitability within an
industry or market place. In addition to this, it also provides insight about new entrants,

substitutes and more. It makes marketers enable to prepare effective strategies for further growth.
In context of Marks & Spencer, five forces of respective model are mentioned as under:
Industry competition: This force signifies the level of competition within industry which
further guide marketer for preparing effective strategies accordingly (Bayiley and Hailegiyorgis
Behaylu, 2020). In UK, retain industry includes extensive competition due to presence of a lot of
providers of similar products and services. For Marks and Spencer, competition in existing
market place is really high as there are a lot of rivals such as H& M, Zara and more are present in
market. Due to the extensive competition customers can switch between the brands which is a
huge threat for organization.
Threat of new entrants: It depicts the possibility of entrance of new firms within
industry. Entrance of new players is depends over present barriers within industry. Higher
barriers make it difficult for new companies to enter and sustain in existing market (Haight and
et. al., 2019). In case of Marks and Spencer, threat of new entrants is lower as it has build strong
image among target segment over the period of time. It is not easy for a new player to challenge
to hamper the existing position of company in the mind of customers.
Bargaining power of Suppliers: Vendors are crucial part of business as they provide
necessary raw material in order to meet with requirements of business effectively. Bargaining
power of suppliers depict the power of vendors and their impact over business. All the necessary
equipments, tools, resources to run business are provided by suppliers. If, there are huge number
of vendors present in market place then their power will be lower otherwise vice-versa. In
reference of Marks and Spencer, bargaining power of supplier is higher as there is limited
number of suppliers with which company deals to purchase necessary resources. Due to this,
suppliers have the power and they can negotiate with organization to charge higher price. For
this purpose, organization is required to maintain positive relationships with vendors.
Bargaining power of buyers: Customers are the only source of income for organization
so it is imperative to maintain positive relationships with them. Customers tend to look for
quality products at reasonable price. If, they found it somewhere else they can easily switch the
brand. Although, loyal customer stick with the brand but it is really challenging to develop
loyalty and trust among customer segment (Augier and Marshall, 2017). In retail industry,

customers are really price conscious thus can easily switch brands. In reference of Marks and
Spencer, bargaining power of buyers is higher as there are several other companies present in
market that are also dealing in same category of products . So, it is easy for customers to
purchase products from where they find it at affordable price.
Threat of substitute: Substitute products and services can be used as replacement of
products of company. If, there are lower substitute present in market then it makes easy for a
company to operate business. However, it is challenging to manage profit while higher numbers
of substitutes are present in market. Substitutes provide options to customers for switching one
brand to another. In reference of Marks and Spencer, threats of substitutes is higher as there are a
lot of rival firms like Zara, H & M and more from where customers can also buy products. In
addition to this, local shops and retailers are also providing competition to company as they offer
substitutes at reasonable price. Therefore, it is required to prepare appropriate strategies in order
to deal with substitute products in an efficient manner.
The above discussion states that there is extensive competition present within retail
industry which makes it necessary to prepare appropriate strategies for sustaining in such
competitive environment for longer period of time. It is analyzed that there are a lot of
substitutes; competition is present in market place to face this, it is imperative to prepare
significant strategies. With this, organization can ensure long terms growth and sustainability in
market place.
TASK 4
P4) Apply different theories, concepts and also interpret strategic plan of organization
Marks and Spencer is a global brand which is currently working retail sector and offers a
range of products for meeting with requirements of customers in best possible way. It is currently
operating business in 29 countries across the globe. The company has been started with an outlet
in London and now it has more than 1500 outlets across the globe and also presence has online
presence within 33 markets. It is only possible due to the strategic plan of organization which
differentiates it from other competitors at market place.
Porter’s generic model:

This model is used for gaining competitive edge in market place. Under this, company
first analyzes external environment conditions and then prepares suitable strategy to get the
desired outcomes within stipulated period of time. Here, different factors of respective model are
mentioned as under:
Cost leadership: It is a crucial strategy under which organization focuses to keep control
over price in order to gain the attention of more number of buyers. It is analyzed that lower cots
attracts more number of customers (Edwards, 2018). Apart from this, it also helps in terms of
gaining an edge over competitors. Marks and Spencer can also adopt this framework by offering
discounts and other such benefits to customers.
Differentiation strategy: It is one of the crucial strategies in current challenging and
competitive environment. Here, main focus is over differentiating products from competitors for
making unique identity. Differentiation really helps in setting strong image of company in the
mind of target group. In context of Marks and Spencer, they also need to create differentiation
which can be in form of new range of products and more.
Cost focus strategy: Under this, organization offers services and products to niche market
at relatively lower price. However, they also need to maintain quality with lower price. In case of
Marks and Spencer, customers are really price sensitive so that they can modify price for gaining
attention of target group.
Differentiation focus strategy: In thus, company needs to offer different products and service to
niche market. Here, they are required to analyze market conditions, product availability in
market and then prepare appropriate strategies based on requirement of target segment
(Sukhobokov, Galimov and Zolotov, 2018). For Marks and Spencer, they can also differentiate
products by adding unique features in existing product and innovate something new. It will help
in meeting with requirements of customers in an effective manner.
Ansoff Matrix
It is a strategic took which is applied in order to identify growth potential in current
market. Different strategies which are used under this matrix are mentioned as under:

Market penetration: It is related to work with existing product in existing market place.
Marks and Spencer can operate business in current market and also enhance current customer
base through providing higher amount of discounts to customers. It will help to attract more
number of buyers in an efficient manner.
Product development: Under this, new products and services are developed for meeting
with market requirements. In context of Marks and Spencer, they can offer new range of
products in order to expand business in significant manner.
Market development: In present Marks and Spencer is offering products to premium
segment. They can also expand business in other markets. Here, company can also target to
medium and lower income group people by offering products at affordable price. In addition to
this, they can also expand business in more countries and locations for enhancing current sales
profitability.
Diversification: It is the widely used strategy under which product and market both are
new (Todorov and Akbar, 2018). In case of Marks and Spencer, they can diversify in different
business by entering into product category. Company is working in diversify area such as
clothes, home products and local foods. However, it can also enter in some new business for
enlarging business at wide level.
Recommendations:
With above discussion, it is analyzed that Marks and Spencer is required to make
improvements in current business practices in order to drive positive outcomes. For this purpose,
some necessary recommendations are given as under:
 It is suggested to company to focus over cost minimization as it will help to target more
number of customers which will significantly enlarge the business.
 There is requirement to be different by offering unique products and services and make
improvements in existing ones. Differentiation will help Marks and Spencer to sustain
and grow in current market place for longer period of time.
 It is recommended to company that it can expand business by applying appropriate
strategy which is market development. Through this, they can target new segment of

customers with existing products which will help in earning more amount of sales and
profit margin.
CONCLUSION
It is assessed with above mentioned information that strategic management planning is a
crucial concept which is related with preparing significant strategies and policies for future
growth and success. There is requirement to analyze macro environment by applying appropriate
framework such as PESTLE so that suitable strategies can prepared for future betterment.
Internal environment can capabilities of company have been assessed with the help of SWOT
and VRIO framework. Discussion has been carried out regarding porter’s five force for
analyzing industry and competitive position in market. Moreover, different tools such as Porters
generic model and Ansoff matrix are applied for providing suitable suggestions to organization
for enlarging business in future period of time.

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