Strategic Management: Process, Models, and Tools

This document provides an overview of strategic management, including the process, models, and tools used. It focuses on the case of Marks & Spencer and examines their strategy determination process. The document also discusses the importance of change management in strategic decision-making.

Strategic Management
MODULE GUIDE
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Table of Contents
1 INTRODCUTION TO STRATEGIC MANAGEMENT.........................................................3
2 To Examine the process used by the Marks & Spencer to determine their strategy................3
3 Evaluation of the critical models as well as tools used by the organization to determine the
strategy.........................................................................................................................................4
4 An application of tools to a real organization .........................................................................5
Porter's generic strategies are also mentioned below...................................................................7
5 Importance of change management.........................................................................................8
CONCLUSION ...............................................................................................................................8
REFERENCES..............................................................................................................................10
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1 INTRODCUTION TO STRATEGIC MANAGEMENT
Strategic management is considered as the management of an organization's resources to
accomplish its goals as well as objectives. It includes setting objectives, evaluating the
competitive environment, evaluating internal organization and strategies. It engages the
invention and implementation of the major goals decided upon by the to level management of a
company. In other way it is the amount total of each the bright decision talking by the bosses
across the group at dissimilar points of period for the benefit and hit or achievement of the group
and it is done mainly on the base of swot analysis . Strategic Management is recognition and
design of the strategies that management applies in order to achieve excellent financial marks or
calculations for their group, particularly, in contrast to the competition in the same business.
It also assures that management roles out the strategies across the Firms. With the help of the
strategic management it extends to the internal as well as external communication practices and
tracking that assures that the firms meet its goals. Present report lay emphasis on the Marks &
Spencer Group plc is a major British M.N.C and it headquarter is in Westminster, London.
Report focuses on the Process used through Marks & Spencer to describe their strategy. It also
focusses on the evaluation of the models as well as tools that can be used by Marks & Spencer to
determine their strategy. Furthermore, it focuses on the application of these tools of Marks &
Spencer. It appraises the significance of change management based on the complexity of the
transformation process, its risks, its sustainability and its cost (Hitt. and Duane Ireland,2017).
2 To Examine the process used by the Marks & Spencer to determine their strategy.
The strategic planning process have some steps such as direction of the organization,
success and results from the strategic plans, staff surveys, environment scans.
Pestle analysis-Outside the business there are various factors affects such as political, economic,
technological, social, legal that the business operates (Ansoff.and et.al., 2018).
Swot with the strategic management process there is also evaluation of the internal situation and
process that affect the future of the organization in terms of weakness and strengths. There are
various factors that affect the business of the Marks & Spencer such as opportunity and threats
(GHitt. and Duane Ireland,2017).
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Step 2 Strategic Planning -Vision
There is crucial thing to mention in the vision that is to have a clear vision regarding future, such
as blueprint to a company.
A company has its own profit, loss, growing, startups. Spending time to get alignment as well as
agreement regarding this future is considered as the key.
Measurable- It assists to achieve a lot regarding specificity. It is unable to exclude the qualitative
goal setting, also it defines how to measures qualitative indicators.
Realistic- Realism as well as achievability are related closely with each other. Such as company
needs to look what their plans are regarding the future references (Trigeorgis,and Reuer, 2017)
.
Step 3 Mission
The purpose, existence, aim and future.
There is also an opportunity to highlights energy on a set of stakeholders such as customers,
staff, shareholders.
Step 4 Values
Values are created a set of behaviors that each and everybody within the organization. Can count
on as well as expect.
3 Evaluation of the critical models as well as tools used by the organization to determine the
strategy.
Mission of Marks and Spencer- Mission statement of the company clearly defines about the
objectives as well as goals of the company .The mission of the M&S is divided within the three
parts as well as reads. (Trigeorgis,and Reuer, 2017)
Mission Statement- To make a quality which is accessible values and all ,such as in terms of
service, Quality, innovation, trust, value.
As M&S is a British retailer that owns more than 800 stores location within the United
kingdom . In addition to the mission statement Firm also founding within the late century in the
late 1800s as Firm implemented various initiatives such as Plan A that involves the commitment
of the company to climate, waste, fair partnership, climate ,sustainability ,health and also the
notes the Marks & Spencer websites.
Vision- As a part of the Plan A they pledged to safeguard natural habitats, protect natural
resources and supports the raw material's replenishment. Their aim to assure that 100% paper
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and wood used through M&S is sustainable: either FSC- certified ,recycled from the sources that
protect communities and forest. They also developed last category through working closely
within the Rain forest alliance that assist them to build a framework based on assessment called
risk assessment. They are doing good progress as 75% if the woods they use is now considers
as sustainable. According to them their commitment covered everything sources through M&S
not only the products as well as packaging but also the paper and woods that are used within the
construction as well as running of stores as well as officers and also all the communication as
well as marketing materials. (Morschett, Schramm-Klein. and Zentes, 2015)
VRIO- It is considered as the acronym for a framework of four questions. They are the four
components that approached within the style of a decision tree.
Value- To offer a resource that able to adds the values for the consumers. If the resource added
a value by allowing a company to exploit opportunities or able to defend threats. If the answer is
yes ten the resources is more consider valuable.
Rare- Resources that are only acquired through the one firm or very few firms are considered as
the rare one.
Costly to imitate- A resource is considered as costly to be imitated as if the firm does not buy it
or have the substitute. Vrio method which you can talk about value, Rarity, Imitating,
Organizational support advantage.
Organized capture- The resources itself do not confer any kind of advantage for a firm as it it is
not organized to capture its values. They can organize its process policies, management systems,
culture, organizational structure that is bale to realize potential to it rare, costly,valuable as well
as resources and capacities.
4 An application of tools to a real organization
Pestle and Swot analysis of Marks & Spencer
Political factors – There are two factors dubbed Brexit, Here the decision of the Britain to leave
the European union has hugely impact on the Marks & Spencer operations. It is very unclear
from the United Kingdom in terms of the trade and regulations as well as tariffs. But there are
various possible outcomes are less ideal regarding the U.K retailers. Such as United Kingdom
leave the European union called Hard Brexit. It resulted within the loss of the various free
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policies within European suppliers, outcomes within in a higher cost of product and services
regarding end costumers (Ansoff and et.al., 2018).
Free trade- It is considered as one of the most positive aspects of modern day to day politics that
has been established among the multitude of the nations. Marks & Spencer majorly operates
within the United Kingdom. It has established its locations abroad benefit a lot from this. Just
because of the Free Trademarks & Spencer import its foreign products for the sales within their
stores at cheaper prices as well as healthy profit margin (David. and David, 2019).
Economic- Price has considered as the major factor within retail industry but regarding the last
few decades it has various budget retailers within the United Kingdom. Such as from budgeting
clothes to the budgeting market there are various new competitors are stealing away market share
(Hitt. and Duane Ireland,2017). It has established its locations abroad benefit a lot from this. Just
because of the Free Trademarks & Spencer import its foreign products for the sales within their
stores at cheaper prices as well as healthy profit margin
Economic- Price has considered as the major factor within retail industry but regarding the last
few decades it has various budget retailers within the United Kingdom. Such as from budgeting
clothes to the budgeting market there are various new competitors are stealing away market share
Socio cultural
Non-Trendy
Marks & Spencer is a major retailer within the United Kingdom. Having from the 1980, retailer
chain is considered as the household name in front of the youth and everyone. Here Marks &
Spencer becomes its reputation less trendy brand for the consumers. Thus, longstanding
reputations has sometimes become the unfortunate consequences (lasserre, 2017).
Marks & Spencer
Within the few year's society develops their taste and this increases the wide scale consumption
of the meals. This is because ready meals are more palatable. In this case Marks & Spencer
becomes dominate within industry. Here there is a huge opportunity for food stores. It is also
unclear that how it captures a large share of market. Thus Marks & Spencer becomes the United
states ready meal distributors at the top ten level (Meyer, Neck, and Meeks, 2017).
Technological
There are factors of technological impact given below
Online shopping
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Nowadays online shopping becomes a big trend. As it is expected M&S has established a strong
e-commerce presence. As they offer almost all their goods from clothing to all the home products
as they take a traditional approach regarding the online shopping such as clothing items, delivery
of the products to the consumers. Thus, it appears that M&S unable to deliver the food products,
unlike some if the major food stores within the United Kingdom (Morschett, Schramm-Klein.
and Zentes, 2015).
Environmental
M&S maintain their image as a luxury brand as it has pledged to become a retailer which is more
sustainable retailer on the various occasions. It is the first retailer of the U.K to provide the fresh
milk ensured by the dairy farms. The RSPCA ensured logo on each M&S packaging of the milk
as well as it assures that milk can be sold in M&S procured from the farms that has achieved the
highest animal welfare standards. These are the kinds of the standard that assures compliance
within areas of cow welfare such as calf rearing, health planning, accommodation and grazing
(Trigeorgis, and Reuer, 2017).
Sustainable and environment friendly products- Due to the change in the climate and
environment change nowadays environment friendly products are more popular such as youth
are more aware about the environmentally friendly products as well as sustainability is also
crucial. M&S has launched a product which are able to uses less energy, water within the
manufacturing process like a new menswear range. Also, the company goal by 2019 is it source
all its cotton (Michael, Storey. and Thomas, H., 2017).
Porter's generic strategies are also mentioned below
Here it can achieve a lot of the attention. Some of them say that it is a strategic direction within a
company as well follow very well (Hitt. and Duane Ireland,2017).
As per the porter’s, companies must select one of the strategic directions.
Cost leadership – To offer the best prices makes attracts the customers. Thus, to imply the cost
leadership there is a need of careful consideration. As products and the services must be still
profitable. Simultaneously, quality must be maintained up to a good level to encourage
customers to purchase that what can be offered by the company.
Differentiation- Instead of being the cheapest the aim of the company is to do best. This could be
precluded cost leadership. For example, designer clothes of a brand. As they aren't considered as
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the cheapest, but they are making them differ from no name brand as well as box store through
the quality as well as brand image (Ansoff.and et.al., 2018).
Innovation strategies can also fall under the heading of the differentiation. In this case there is an
improvement regarding product as well as services within creative ways.
Focus- It can identify as well as target markets. By definition niche market is smaller but in
actual they a hugely profitable for those who serves them. They able to allow targeting marketing
to a very specified. Such as a company makes their customers to easily reach. It able to provide
lots of leadership and cost or differentiation that is sure to get supported regarding its products
(David. and David, 2019).
5 Importance of change management
Change management is crucial as it lowers the chances to failure the project . As this
management also assist to reduces the chances of confusion. It also benefits to makes the
changes faster as change is at the project level or the company level ,careful change
management helps to assure that efficiently change is implemented. Due to the help of the
change management there is enhances the communication among the team members as it
reduces the level of confusion as all the team members of the company needs to be
communicated as it is profitable for the company and team members both ( Meyer, Neck, and
Meeks, 2017)
Transformation process- It is considered as the process within any group or activity that takes
more than one transforms, inputs and also provides the outputs for clients or consumers. Here
when the inputs consider to be raw materials as it easy to recognizes the transformation
involved. Such as hospital can transformed ill patients to the healthy one.
Cost of change management- Change is not considered as the healthy one but at the same time
also it is vital for the success. Majority of the change management relates to :
Communication- It explains openly as well as frequently the reasons regarding the changes
some cases formal public relations strategy also assist the customers, employees as well as
suppliers informed.
CONCLUSION
from the above Report it had been concluded that change management is a complex
process that analysis the internal as well as external environment .It focused on the people side
and also requires actions as well as involvement through leaders as well as managers. As it
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enhances the communication among the team members as it reduces the level of confusion as all
the team members of the company. M&S established its locations abroad benefit a lot from this.
Just because of the Free Trademarks & Spencer import its foreign products for the sales within
their stores at cheaper prices as well as healthy profit margin
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REFERENCES
Books and journals
Ansoff, H.I.and et.al., 2018. Implanting strategic management. Springer.
David, F.R. and David, F.R., 2019. Strategic management: A competitive advantage approach,
concepts and cases. Pearson.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship.pp.45-63.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health care
organizations. John Wiley & Sons.
Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship‐strategic management
interface. Strategic entrepreneurship: Creating a new mindset.pp.17-44.
Morschett, D., Schramm-Klein, H. and Zentes, J., 2015. Strategic international management (pp.
978-3658078836). Springer.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal.38(1). pp.42-63.
Michael, S., Storey, D. and Thomas, H., 2017. Discovery and coordination in strategic
management and entrepreneurship. Strategic entrepreneurship: Creating a new mindset.
pp.45-65.
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