Strategic Management: Analysis of Marks and Spencer

Strategic Management
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
A critical evaluation of the value of clear purpose, vision, mission and objectives in setting the
strategic direction of organizations using examples from selected organisation........................3
Assess the competitive advantage of the selected company, using the VRIO framework..........4
Using PESTLE framework analysing the external environment of the selected business..........6
Application of the Porter’s Five Forces Model for the selected organisation.............................8
A review of the selected organisation’s strategy.........................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11
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INTRODUCTION
Strategic management is referred as an area of Management that includes development and
execution of goals and initiatives which are taken by top managers of organisation by
considering the sources and analysing external as well as internal environment within which the
business run its operations. As the business environment is dynamic, management of
organisation needs to constantly analyse their strategies in order to gain success in market
(Aguinis, Edwards, and Bradley, 2017). This report is based on Marks and Spencer which is the
multinational retailer of Britain and its headquarters is located in London, United Kingdom. The
company was founded in year 1884, around 136 years ago and is offer customers with home
products, food products and clothing which are of high quality. This report covers critical
evaluation of clear purpose, mission, vision and objectives of organisation in setting strategic
direction. For analysing the competitive advantage of company, VRIO framework is included.
Apart from this, it also includes pestle analysis in order to analyse the external environment of
firm and for determining attractiveness of industry, porter's five force model is included. At last,
on the basis of analysis the strategies of organisation are reviewed and a brief conclusion is
provided based on the entire report.
MAIN BODY
A critical evaluation of the value of clear purpose, vision, mission and objectives in setting the
strategic direction of organizations using examples from selected organisation
Strategic management is characterized as the constant process of analysis, development of
strategy, its execution and monitoring. It is utilized by companies with the purpose of
accomplishing and maintaining competitive advantage in market. The main purpose of strategic
management is to integrate the energy of functional areas of organisation into single focused
effort in order to accomplish the superior performance (Audretsch, 2015). Effective strategic
management in organisation is the foundation of crucial decisions of company. It helps Marks
and Spencer to mitigate its objectives and outlines the actions as well as decisions which enables
the company to accomplish its goals. The purpose, mission, vision and objectives of company
must be clear so that employees are directed towards right direction and able to accomplish its
objectives effectively.
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Marks and Spencer is one of the well-known British multinational retailer that offers high
quality products and services to customers. The main purpose of the companies to provide
customers with excellent in store experience and serve them with high quality goods that satisfy
their needs (Baumgartner, and Rauter, 2017).
Mission statement of Marks and Spencer:
This is statement of Marks and Spencer depicts about the business of the organisation and
its key purpose. The mission statement of business entity is "to make aspirational quality
accessible to each individual, by the depth and range of its goods". It is a leading retailer that
bringing great value food, quality homeware and clothing to millions of consumers all around the
world.
Vision statement of company:
The vision statement of Marks and Spencer assist in working in goal congruence. The
vision of companies to become a leading retailer worldwide by offering exceptional quality
products to customers with great innovation. The vision statement of Marks and Spencer is
measured against the set standard (Certo, and et. al., 2016).
Objective of Marks and Spencer:
The main objective of company is to develop sustainable business by consistent and
profitable growth and ensure that it act responsibly in mitigating its accountability towards wider
stakeholders as well as shareholders.
Values of Marks & Spencer:
The main values of company on which it emphasizes the most includes quality, innovation,
service and trust. The company generates revenue as well as delivers value for its shareholders
by a family of accountable business. The company focuses on providing quality products to
customers and bringing constant innovation in its products that mitigates needs of customers and
satisfy them. It also aims to provide excellent services to consumers and develop their trust on
the brand (Cosenz and Noto, 2016).
Assess the competitive advantage of the selected company, using the VRIO framework
VRIO analysis of framework that helps in evaluating resources of the company and
therefore, competitive advantage. The company assets are resources and capabilities on the basis
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