Effectiveness and Position of Marks and Spencer in Strategic Innovation, CSR, and Ethics

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Company profile..........................................................................................................................1
Effectiveness and position of Marks and Spencer in strategic innovation, CSR and ethics.......2
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Assessment task 2............................................................................................................................8
PART A (1)......................................................................................................................................8
PART A (2)......................................................................................................................................8
PART B.........................................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic management refers an ongoing planning, monitoring and analysis of all
resources and necessities of company that can help it out in meeting pre determined goals
(Lynch, 2018). This present study is based on Marks and Spencer that is British multinational
retailer. This study is going to show effectiveness of this retailer that can make it able to take
competitive advantages and becoming the market leader. It shows its market position in huge
industry size. Further, it will discuss all those areas in which this retailer is effective and has
engaged itself for taking competitive advantages. Some areas which this study will discuss in
which Marks and Spencer is effective include: innovation, CSR, governance and ethics.
Company profile
Marks and Spencer is a major British multinational retailer having headquartered is in
London, England. It was founded in the year of 1884 by Michael Marks. It is mainly famous and
specializes in selling clothing, home products and food products. Because of its qualitative food
and clothing products in the year of 1998 it became the first British retailer. But slowly it went
into a slump. In the year of 2018 it announced that by the year of 202 it will close around its over
100 stores and recently it announced that due to some environmental factors like climate change
and changing needs of customers and closing down of some stores it will cut around 7000 jobs.
But it is also found that now it is focusing on regaining image and taking its position in the
market that he had before. For taking competitive advantages it identified its own strengths and
found that it has several strengths.
Industry size: It operates in retail industry and as of 2020; there were around 1038 stores located
in the UK and other 481 stores situated around the world. From number of stores it can be said
that it has large market areas. It employs around 75 thousand people from different cultures. It
promotes diversity at workplace that helps it out in attracting and retaining skilled workforce
(Marks and Spencer: Statistics and Facts, 2020)
Competitive strength: There are several strengths that this retailer has and all these strengths
help it out in taking competitive advantages. Some competitive strength of this company
includes:
 Ability of managing brand in an effective manner.
 Closely manage suppliers’ relations.
 It has excellent customers’ services.
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 It provides excellent working condition to its employees.
 Empowers suppliers and manufacturers with design responsibility.
 It has an effective communication skills that helps it out in performing marketing
functions in an effective manner and attracting customers’ to the great extent.
 Corporate structure and effective culture is other main competitive strength of this retailer
(Marks and Spencer Resources, Capabilities and Competitive Advantages, 2018).
There are several players in this market such as: Aldi, Waitrose, Tesco and others but by making
use of all these skills it makes it able to take competitive advantages and becoming the market
leader as well.
Challenges: Retail industry is facing several challenges and it is found that marks and Spencer
operate globally so, it faces several problems. Customers changing needs as they are shifting to
online shopping, customers of different cultures have different tastes, rising overheads,
competition etc. For solving all these problems it requires focusing on innovation and creativity.
Market position: Marks and Spencer positioned itself as a premium brand in this supermarket
industry. Customers are willing to pay premium price if they get qualitative products and
services. It also helps this retailer in increasing sales and profit margin. It is beneficial for it and
this can make it able to have effective position in the market and also taking advantages of
competition.
At the time of global recession it has done considerably better than other retailers. So, on
the basis of this it can clearly be said that it has growth potential, especially in those areas which
can attract low sales volume.
Effectiveness and position of Marks and Spencer in strategic innovation, CSR and ethics
It can be said that on the basis of above company background that in this huge retailer size,
marks and Spencer has its own effective position. There are several retailers that are increasing
competition as they are also providing same features and qualitative products to customers. It is
putting pressure on Marks and Spencer to focus on some areas that can help it out in providing
competitive advantages. For becoming successful as compared to its competitors it requires
attracting customers to the great extent and retaining them. For that it will require making people
trust in its brand and it is possible when it fulfils its promises.
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