Strategic Management - Strategy Evaluation for Marks & Spencer

This report evaluates the strategic management processes used by Marks & Spencer, including purpose, mission, vision, and objectives. It also assesses critical models and tools used by the company, such as VRIO framework and PESTEL analysis, and applies Porter's five forces model to the company. The report concludes with an appraisal of the importance of change management based on the complexity of the transformation process, its costs, risks, and sustainability.

Strategic
Management.

Table of Contents
Introduction......................................................................................................................................3
Main body........................................................................................................................................3
Critical assessment processes used by the organisation to determine their strategy...................3
An evaluation of the critical models and tools used by organisation to determine their
strategy........................................................................................................................................4
An application of these tools to a real organisation....................................................................7
Critically appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability...........................................................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

Introduction
Strategic management helps an organisation in order to create plans for the tasks of the
company so that the company will be able to achieve the goals and objectives. Strategies plays
an important role in the management of an organisation. It is important for the company to make
sure that they are working according to the planning done by the management in order to avoid
any contingency (Emeagwali and Aljuhamni., 2019.). It is important for the company to make
strategy regarding tasks so that the employees of the company can understand the workings
which are expected from them. It makes the work easier as well as more efficient and effective.
In case of Marks & Spencer, the company is a British multinational retailers which are dealing in
clothing, home appliances and food products sector. The company is headquartered in London,
England and was incorporated in the year 1884. the company was founded by Michael Marks &
Thomas Spencer. The worldwide presence of the company makes the brand one of the most
trusted and reliable brand in the world. In this report, an understanding about strategic
management as well as about the processes and procedures will be provided. An understanding
and importance of change management as well as transformation process will also be provided.
Main body
Critical assessment processes used by the organisation to determine their strategy.
Strategy helps the company in providing steps which can be taken by the company in
order to complete the tasks effectively and efficiently (Rees and Smith eds., 2021. ). It is
important for the company to make planning for the tasks ahead of time in order to avoid any
contingency and in order to make sure that the company and employees have a roadmap
following which they will be able to complete the task.
 Purpose: The purpose of the company is the motive because of which the company is
incorporated. It tells the stakeholders about the long term planning of the company
(Bhattacharyya., 2020.). If the company is not deciding any purpose for the organisation
they will not be able to survive in the long run as they will not be able to determine their
goals and objectives. In case of Marks & Spencer, the main purpose of the company is to
enhance lives , every day. The company wants to provide best in class product and

services to their customers who are visiting their stores and want to help customers in
choosing best suitable product for them.
 Mission: The mission statement of the company helps in describing the current position
of the company and will also explain the major goals and objectives of the company
(O'brien., 2019.). It is short term in nature and help the organisation in outlining the
primary goals of the company. In case of Marks and Spencer, the mission statement of
the company states that the company wants to make and provide inspirational quality
goods to their customers. They want to create a customer base on the basis of the high
quality of their products.
 Vision: It is a statement which helps the company in describing the future expected state
of the company which means what the organisation wants to achieve in the future with
the help of completing their goals and objectives (Andersen, Torp and Linder., 2019.). It
helps the company in communicating the purpose of the company to the stakeholders of
the company. In case of Marks and Spencer, the company wants to create a benchmark in
the market with the help of its products and services. They want to create a quality
benchmark which is impossible for the competitors to achieve.
 Objectives: Objectives helps the company in converting the vision of the company into a
measurable target and in a clear cut action plan. It helps the employees in getting
knowledge about what is expected from them. It is a guiding light for the management
and employees of the company towards the path way through which they will be able to
achieve the goals of the company. In case of Marks and Spencer, the key objective of the
company is employee orientation. The company attracts, hire, motivate and assist
employees with high calibre. They want to improve the performance of the employees
and want to have leadership in the clothing and food segment in the market.
An evaluation of the critical models and tools used by organisation to determine their
strategy.
VRIO framework is a strategic tool which helps the company in assessing and evaluating
the resources of the company along with the strengths of the company which can provide them
competitor advantage in the market.
Valuable Rare

The company has a unique brand image and
has a high brand integrity. The brand image of
the company has developed due to the high
quality products provided by the company to
its consumers and the trust that the customers
have developed over a long period of time
(Hansen., 2020.). The company has a strong
position in the market and captures a large
segment of the market. The company enjoys
high brand recognition which has a direct
impact on the sales and for the value of the
company. The company has efficient and
effective distribution system which makes the
availability of company's products in extremely
accessible countries.
The company has global presence and has a
wide range of consumer base which helps the
company in its growth. The loyal customer
base of the company helps in achieving
competitors advantage in the market and help
the company in capturing a large market
segment of the industry (Frølund and Riedel
eds., 2018.). The company promote creativity
and innovation in the management and process
of the company because of which the company
is able to provide best in class products and
services to its customers. The management of
the company shows high adaptability of
different cultures and societal norms with the
help of marketing and engagement in local
activities.
Imitable Organized
The quality of the products offered by Marks
and Spencer is of high quality and the
company has global presence which makes the
reach of the company wider and the company
is able to attract potential customers from all
around the world (Dhir., 2019.). The unique
and innovative marketing strategies of the
company helps the company in reaching out to
customers and will also make sure that the
company is able to communicate with the
customers effectively and efficiently. It helps
the company in gaining a competitors
advantage in the market and will also make
The resources that are developed by the
company uniquely and cannot be used by other
companies or competitors of the company are
as follows. The most important factors that
provide benefits to the company is the brand
strength and the financial strength of the
company. It helps the company in innovation
and particularly in capturing internal and
external opportunities. Another aspect is the
technological advancement of the company.
This development helps the company in having
competitors advantage in the market. It creates
efficiency and effectiveness in the management

sure that the company is function in a manner
which helps the company in saving cost.
and processes of the company also it helps the
company in increasing their capacity.
PESTEL analysis
It refers to the analysis of the external factors of the company which can have an impact
on the workings of the company (Chanchitpricha, Swangjang and Morrison-Saunders., 2021.). It
includes factors which helps the company in determining the effects of external environment on
the internal management of the company. The analysis is beneficial specially when a company is
going to enter a new market. The analysis includes some of the factors which are given below:
Political factors: It refers to the factors that helps the company in determining the degree
up to which the government can intervene in free market or in the workings of the company. In
case of Marks & Spencer, the company has a strong presence in various countries and the
company believes that it is important to work closely with government in order to protect the
company and its legitimate interests. The company enjoys the market of EU without much
restrictions and with the help of EU trade agreement, the company is enjoying a decrease in
sourcing cost as well.
Economic factors: It refers to the factors that tell the company about the economic
performance of a specific country. It includes inflation rates, disposable income of customers,
exchange rates, etc (Varshavsky., 2019.). In case of Marks & Spencer, the new policy of Brexit
has affected the economic performance of the industry. Also due to the pandemic, the disposable
income of consumers are low which is having a sever impact on the sales of the company.
Social factors: It refers to the norms and culture of the society in which the company is
operating. In order to have a smooth functioning, it is important for the company to work
according to the norms of the society. In case of Marks & Spencer, the company believes that
customer purchases are based on the cultural, social and personal changes in the market. It is
important for the company to understand those preferences and provide products accordingly.
Technological factors: It refers to the updated version of technology that is prevailing in
the market. It is important for the company to make sure that they are aware of the technology
that is prevailing in the market or the technology that the competitors of the company posses in
order to have competitors advantage in the market (Church and et. al., 2019.). In case of Marks
& Spencer, the company has announced Technology Transformation Programme, which will

help the company in providing diversified customer experience. The company is currently
focussing on simplifying and consolidating the supplier base of the company.
Environmental factors: These are the factors that creates an impact on the environment.
With the growing concern about the environment, it is important for the company to make sure
that their activities are not impacting the environment in a negative way. The company works
closely with Better Cotton Initiative which support sustainable practices for processing and
procurement of cotton. The company has also launched their own green policy which is also
known as Plan A which is an initiative by the company in order to create a positive impact on the
environment, communities and on the planet.
Legal factors: These are the rules and regulations of a particular country in which the
company is operating. It is important for the company to comply with these rules and regulations
in order to avoid any penalty (Piccarreta., 2018.). In case of Marks & Spencer, the company has
faced severe aligation when they were accused of failing to protect their employees from
potential risk of exposure to asbestos. The company has fined by the government and the amount
of fine was 5,00,000 pounds.
An application of these tools to a real organisation
Porter's five forces model for Marks & Spencer.
The framework not only helps the company in analysing the competition in the market
but will also help the company in a making strategies. In case of Marks & Spencer, with the help
of the framework the company is able to build a sustainable competitive advantage in the
industry. The strategies also help the company in analysing opportunities in whole of consumer
service sectors which is extremely beneficial for the company.
 Threats of new entrants: It is important for the company to make sure that the industry
has barriers of entry so that new companies cannot enter the market easily. As a new
company enters in to the market they capture some of the market share in the industry
which is not good for the growth and sales of existing companies(Büyüközkan and
Ilıcak., 2019.). In case of Marks & Spencer, new entrants put pressure on the company by
lowering their prices or bringing new trends in the market which put challenges for the
company.
 Bargaining power of suppliers: Most of the companies buy their raw material from
various suppliers and will maintain an efficient supply chain so that the workings of the

companies does not get interrupted. It is important for the company to make sure that the
suppliers of the company are not in dominating position as it will decrease the margin of
the company. In case f Marks & Spencer the company has a good reputation in suppliers
market and suppliers wants to work with the company and because of this reason the
company is in a dominating position.
 Bargaining power of buyers: It refers to the powers of the consumers to fluctuate the
prices of the company's products (Janoske McLean and Vibber., 2021.). It is important
for the company to build a large loyal customers base which not only help them in
increasing sales but ill also make sure that the company is in the dominating position. In
case of Marks & Spencer, the company limits the bargaining power of customers by
creating innovative and creative products so that the customers of the company can enjoy
new products and are willing to pay prices demanded by the company.
 Threat from substitute product: It refers to the presence of similar product in the
market which are equally able to fulfil the needs and wants of the customers. It is
important for the company to make sure that they have unique products so that they can
attract the customers and provide higher value to the customers of the company
(Mahadevan., 2020.). In case of Marks & Spencer, the company limits the threat of
substitute by focussing equally on products as well as services. The company also make
sure that the switching cost for the customers are high which helps them in retaining their
existing customers.
 Rivalry among existing players: If the rivalry in the market is strong then it can
decrease the profitability of the company as it will drive down the prices of the offerings
of both the companies in order to attract more and more potential customers. In case of
Marks & Spencer, the company believes in creating sustainable differentiation so that
they can have a unique feature in the market. In order to avoid intense rivalry in the
market, the company can also collaborate with the competitors so that they can increase
their market share.
Critically appraise the importance of change management based on the complexity of the
transformation process, its costs, risks and sustainability.
Change is an important factor in the company's processes and management as the
environment of the industry is dynamic and in order to survive in the market it is important for

the company to bring continuous changes which are according to the taste and preferences of the
customers (Bastani and et. al., 2021.). It is important for the company to make sure that the
workings and offerings of the company are according to the market trends in order to cope with
the competitions and get competitors advantage in the market. In case of Marks & Spencer, the
company is dealing in clothing sector which is one of the most dynamic industry and the trends
can change overnight in this industry. It is important for the company to make sure that they have
effective change management system as it will help the company in implementing change
efficiently and effectively. Their are several barriers to change which are needed to be addressed
by the company in order to implement the change according to the expectations. These barriers
can have a negative impact on the change strategy of the company. The employees of the
company plays an important role in change management of the company. The employees may
resist from change and may protest against the change. It is important for the company to address
those issues first and clear all the doubts of the employees so that their is no resistance to change.
Cost: Implementation of change in any organisation involved high amount of costs as the
company have to change their management in order to bring the change and if the change is in
technological sector then the company may have to invest high amounts in the new and
innovative technology.
Risk: The change may or may not be successful. Sometimes the strategy for change is
correct but a slight mistake in the implementation of change can incur huge losses for the
company (Köseoglu, Yazici and Okumus., 2018.). The risk factor is always their even after the
implementation of strategy.
Sustainability: Innovation is done by a company in order to create sustainability. It is
important for the company to make sure that they are working in order to create more an more
sustainability which is not only good for the company but also for the market and industry.
In order to implement change successfully the company can take advantage of various
models such as Lewin's change model. The model will help the company in implementing
change effectively and will also make sure that there is no barrier to change in the organisation.
The change model consist of three steps which is unfreeze, change and refreeze. The steps in the
model will help the organisation in analysing what are the factors that are resisting change and
will also help in implementing change effectively and efficiently (Haraj and Hameed., 2019.).
The company will be able to identify the solutions against the restricting forces.

The company will have to keep a close eye on the workings of the company after the
implementation of change as it will help the organisation in identifying what is working for the
company and what are the factor that needs further changes.
Conclusion
From the above report it is concluded that in order to have an effective management of
the company it is important to make strategies first. Strategies will help the employees of the
company in getting a clear picture of the task and about the steps through which they can
complete their tasks. The purpose, mission and vision of the company makes sure that the
company is in the right direction and will also give a proper knowledge about the goals and
objectives of the company to stakeholders. In order to have a competitors advantage in the
market it is important for the company to make sure that they are using appropriate frameworks
which can help them in analysing external as well as internal factors of the company.

References
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