Strategic Planning for Marks and Spencer

This report discusses the strategic aims and objectives of Marks and Spencer, alternative strategic options, stakeholder expectations, and risk assessment. It also includes a strategic plan for the organization.

Strategic Planning

Table of Contents
INTRODUCTION ..........................................................................................................................3
Task 1...............................................................................................................................................4
a) Critically analyse and identify the organisation’s strategic aims and objectives including the
approach adopted to strategic planning. .....................................................................................4
b)Determine alternative strategic options available and the implications for the organization..5
c) Critically evaluate the impact of stakeholder expectations on a strategic plan and the
planning horizon. .......................................................................................................................6
Task 2 ..............................................................................................................................................7
a) Critically evaluate the strategic options available to the organisation over the existing
planning horizon and factoring in wider context market and competitor impacts......................7
b) Assess and determine the priorities and feasibility of alternative options over the existing
planning horizon. .......................................................................................................................8
c) Carry out a risk assessment of the preferred strategy and alternatives...................................8
d) Identify, justify and articulate the selected strategies within the plan and address any
potential problems.......................................................................................................................9
e) Produce a strategic plan and its components to achieve the selected strategic direction. ......9
Task 3 ............................................................................................................................................11
a) Critically review the organisational and market factors to be considered in the
implementation of the strategic plan ........................................................................................11
b) Determine and apply a range of tools and concepts to monitor and review the strategic plan
...................................................................................................................................................12
c) Determine the impact of the strategic plan on the organisation’s direction and achievement
of the organisation’s objectives.................................................................................................15

CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16
INTRODUCTION
Strategic planning is defined as an organisational process that defines its strategy,
direction or undertaking decisions for the allocation of company resources to execute this
strategy. This procedure is an organisational management activity through which focus,
priorities, resources are effectively set with an aim to strength operations while assuring that
employees and other stakeholders are operating their roles and responsibilities towards entity
common goal (Albrechts, 2015). With the assistance of this systematic long-term planning
activity organisation can underline or fix its priorities towards effective accomplishment of
goals.
Present report has been made on Marks and Spencer, which is operating its organisational
operations in retailing sector as a leading organisation. With having specialises in clothing, food
products, home products this company ensures satisfaction of consumers. In this report is divided
in three tasks which is inclusive of questions related to organisation's aims, objectives along with
the impact of stakeholders expectations on the planning horizon and strategic plan. Along with
this report also include available strategic options over the existing planning horizon in wider
context market and competitor impacts. In addition to this, risk assessment, strategic plan and
different tools and concepts to effectively monitoring strategic plan is also being discussed in this
report.

Task 1
a) Critically analyse and identify the organisation’s strategic aims and objectives including the
approach adopted to strategic planning.
Marks and Spencer operate its business functioning as the largest retailer with having
stores across 40 countries, company is having speciality is offering home furnishings, clothing
and food. Entity is offering high quality products and services to consumers according to their
needs and demands (Moutinho and Vargas-Sanchez, 2018). In addition to this, it has been
evaluated that company is operating their business services as the lowest-cost retailers
organisation. Further it has been evaluated that in order to assure more competitive
advancements and higher profitability in the aggressive retailing segment management of Marks
and Spencer have developed some certain form of aims and objectives which is being defined
below along with the approach that has been adopted to strategic planning:
Organisational Aim:
It is one of the most essential component of an organisation that effectively guide them
towards moving in a right direct to effectively fulfil business aim in a well defined manner. This
is also being defined as an end goal that organisation desired to fulfil in time effective manner. In
context with Marks and Spencer it has been determined that company is aiming towards having
more competency in retail industrial segment as compared to other competitors. For this M&S
devised an aim in which they planned to provide products with latest trends with standard design
in reasonable or affordable price range. Along with this company also aim towards offering their
products with high quality with efficient reliability.
Organisational Objectives
It is defined as as the short-term and medium term goals that a company seeks to fulfil in
order to reach towards its strategic goals. In term with Marks and Spencer it has been determined

that company have an objective to maintaining its leading positioning in retailing sector. For this
management of entity have formulated certain objectives which is being elaborated below:
Marks and Spencer objectives:
Objectives of M&S includes building present reputation for service quality, team spirit,
reliability, dedication to transparency and strong consumer focus. In addition to this, it has been
evaluated that Marks and Spencer is engaged in the process of offering high quality merchandise
to consumer at value for money prices. However, M&S is also having significant objectives to
maximise profitability by 20% by 2021, making reduction in the bad debtors by 25%, enhance in
cash flow by 2021 and introduce a new product in 2021.
Approach adopted to strategic planning
Strategies are defined as those set of process as well as activities that duly been
undertaken by entity in order to fulfil pre-determined goals as well as objectives in efficient way.
It has been evaluated that in order to assure more competence and growth Marks and Spencer is
planning to shift its current strategical perspective towards implementation change in continuous
manner. In addition to this, as to effectively fulfil underlined objectives company have
undertaken strategy related to renewing their stores while maximising their offline and online
operations efficiency. Along with this, in order to offer high quality products and services to
customers with best fabric M&S is planning to bring appropriate transformation in their clothing
line in order to ensure higher sales and profitability.
b)Determine alternative strategic options available and the implications for the organization.
There are number of strategic options available for company through which they can
effectively assure high growth as well as sustainability in a well define and effective manner.
Mentioned below there are some certain form of strategic options is being given:
Diversification: This option will allow management of Marks and Spencer to link with
other businesses in order to make significant maximisation in their bottom line. With the
assistance of this approach Marks and Spencer can effectively link up with small business stores
in order increase company sales and profitability.
Product Development: Company by taking advantage of this option can satisfy
customers with new product or service offering. With the help of this strategy Marks and
Spencer can increase its competitiveness in market segment in a well define and effective
manner.

c) Critically evaluate the impact of stakeholder expectations on a strategic plan and the planning
horizon.
Stakeholders are defined as those individuals who are having interest within organization
and are having tendency to affect or get affected by organization decisions and operations. They
are most important element for an entity which makes organist to effectively meet stakeholders
expectations in order to ensure smooth operations while positive goodwill. In context with Marks
and Spencer mentioned below there is the evaluation of stakeholder expectation impact upon
planning horizon and strategic plan of entity:
Employees:
Employees are most important asset for any organization irrespective of its size, scope
and functioning. They perform different types of roles and responsibilities and contribute their
handwork and commitment in entity objectives. It has been evaluated that employees also acts
primary stakeholders of company and have expectation to have positive and healthy workplace
environment in which their hard work get effectively appreciated. For this, Marks and Spencer
management must assure that they make their employees work in a healthy and positive
environment while offering them support in their personal as well as professional growth. In
addition to this, entity is also required to have strong reward system through which they appraise
contribution of employees in effective manner while assuring their long term sustainability and
loyalty towards organization.
Customers:
They are the major source of revenue for company which is further get affected with the
entity decisions and practices. It has been evaluated that consumers plays crucial role for entity
long term survival. Customers are having expectations for Marks and Spencer in terms of having
high quality products and affordable price base. For this, it is respective is required to conduct
extensive research in order to analyse actual needs and demands of customers and further fulfil
them with efficient offerings (Papke-Shields and Boyer-Wright, 2017). This will allow M&S to
assure consumer loyalty towards organisation for long period of time.

Shareholders:
Shareholders are those individuals who make investment via financial assets with entity
and get influenced by organisation strategies as well as operations. In this, it is essential for
Marks and Spencer to make sure that shareholders needs are effectively considered while
drafting strategies in order to make them feel values and offer recognisable profitability to them
in efficient manner.
Task 2
a) Critically evaluate the strategic options available to the organisation over the existing planning
horizon and factoring in wider context market and competitor impacts.
It is essential for an entity to determine every strategic options that are prevailing in order
to select most appropriate path as to fulfill goals and objectives. Mentioned below there are some
certain form of strategic options available that can be consider by Marks & Spencer in Singapore
with the name of myCK, department store within organization.
Market Penetration:
In this entity will deal in their already existing products and services. In this, it has been
evaluated that there is low risk as within this entity must assure that they efficiently channel their
resources within marketplace in order to provide services and products in more effective manner.
Product Development:
Within this company is required to offer new products and services, this strategy allows
entity to ensure more market share growth. However, within this company is required to
effectively engage in market research as to enhance probability of their success.
Market Development:
In this myCK will provide already existing services and products in new marketplace.
This will allow them to have access of more geographical areas. It has been evaluated that due to
the presence of competitors company can face constant threat of competitors.
Diversification
Within this factor, company is required to offer new products within new market
segment. In this, there is high exposure of risk. In context with myCK entity by undertaking

advantage of their factor will offer new products within new market according to customers
needs and demand.
b) Assess and determine the priorities and feasibility of alternative options over the existing
planning horizon.
Organisation is required to review potential strategy among various options in order to
find out most effective one (Coates, 2016). There are some essential criteria which is essential
for company to consider:
Suitability:By evaluating all the strategical options it has been evaluated that
Diversification will prove significant for company growth and developed. In this organisation is
required to provide their services and products to large consumer base.
Acceptability: It has been analysed that diversification will allow employees to take advantage of
more growth and have access of new career opportunities. While on the other hand
diversification facilitate customers to have qualitative products in affordable price range. Lastly
stakeholders have access of more profitable return form new market.
Feasibility: Organisation is required to evaluate availability of resources from different sources
in order to assure success of strategy implementation. In this market penetration facilitate entity
to develop new product for which they are required to have new or advanced technical resources.
By evaluating above mentioned discussion it has been analysed that myCK by
undertaking advantage of employment diversification can have access of more opportunities and
profitability.
c) Carry out a risk assessment of the preferred strategy and alternatives
It is essential for an organization to evaluate risk in order to accomplish their
organizational objectives in effective manner (Smith, 2017). It has been evaluated that risk is
determined as the possibility of having number of possible outcomes that can be effectively
measured. In this it is important for an organization to undertake advantage of risk management
process that includes identification, analysis, prioritizing, response planning, resolution and
monitoring and reporting. It has been determine that Marks and Spencer management undertake
advantage of brainstorming in order to identify and discuss potential risks with the help of
strategic development team and other stakeholder. Along with this, M&S by undertaking use of

risk assessment matrix identified risk which is related to allocation of financial sources and
availability of raw material.
d) Identify, justify and articulate the selected strategies within the plan and address any potential
problems.
It has been evaluated that Marks and Spencer management have undertaken advantage of Jonson
and Scholes framework in order to effectively identify potential problems.
Suitability: It has been underlined that Marks and Spencer have selected strategy to offer
best quality products and services to customers while expanding their online and offline business
operations.
Feasibility: Marks and Spencer is having effectively resources to conduct requirements
of their strategies in a well defined and effective manner.
Acceptability: By evaluating strategic plan of M&S this has been analysed that
respective strategy of M&S is having effective tendency to increase stakeholders wealth.
e) Produce a strategic plan and its components to achieve the selected strategic direction.
As to assure more success it is important for an organization to develop strategic plan,
this will facilitate entity to ensure higher success and growth:
Defining Mission and Vision Statement
In this stage it is essential for M&S to underline Mission and Vision in order to
accomplish organizational goals.
Analysis of Position
In this entity is required to determine the current positioning that entity is having within market
segment and the place they are expecting to see themselves. In this, by implementing
diversification organization is must to determine its current industrial positioning along with
standards.
Communication to Stakeholders
By implementation diversification it is essential of entity to communicate every essential
information with stakeholders, this will facilitate entity to gain maximum support to implement
plan in effective manner.
Implementation of Strategy

It is the final stage, within which M&S management is required to effectively involve
human resources, technical resources within their strategy along with evaluating trends of needs
prevailing in market segment of Singapore.
Monitoring the Strategy
In this stage, entity must ensure that they monitor strategy with the assistance of
mentioned below points:
Key Performance Indicators:
With the assistance of this model entity is required to make sure that implemented
strategy is adopted in effective manner. Within this Marks and Spencer by taking advantage of
productivity and performance standard can monitor implemented strategy effective manner.
Benchmarking:
In this organisation can develop targets that can be further with the help of this company
can effectively able to monitor their business plan and can identify which benchmark is not
achieved

Task 3
a) Critically review the organisational and market factors to be considered in the
implementation of the strategic plan
There are wide range of factors that are prevailing in a business environment and are
having direct and indirect impact upon company growth and development. All these factors are
required to be effectively consider by organisation while undertaking the process of
implementation of strategic plan. Mentioned below there are some organisational and market
factors being defined below:
Political Factors:
This factor of pestle analysis include the extent of influence of political parties upon
business operations of an entity. It is one of the most important element that are required to be
consider by Marks and Spencer. For this it is essential for entity to abide all the political laws
that are being imposed by government of Singapore in order to identify the risk and further
develop strategies against them in order to assure effective government support.
Economical Factors:
In this elements related to economic influence upon business environment is included
such as rate of borrowing, interest rate and more (Channon and Jalland, 2016). It has been
evaluated that Singapore falls among countries who are having highest per capita income. Thus,
M&S is having significant opportunity in which entity by considering different economic factors
can invest in their R&D sector in order to satisfy customers with transformed product line.
Social Factors:
This has been evaluated that each and every individual, community or group is having
different values, beliefs, and perceptions which is having capability to influence strategic plan
and profitability of organisation. According to the evaluation it has been underlined that in
Singapore individuals are highly influenced by western markets. Thus, it creates opportunity for
Marks and Spencer to offer innovative organisational offerings according to consumer demand
and in profitability price base.
Technological Factors:
This factor involves rate of technological change undertakes within a country, according
to the evaluation it has been analysed that Singapore is going through fast changing

technological advancements. This factor is having high capability to affect strategical plan of
organisation. In this, it is essential for Marks and Spencer to undertake advantage of Artificial
Intelligence and automation and also enhance their business efficiency in both offline and online
market as to assure more growth and development.
Thus, according to the above mentioned analysis it has been evaluated that it is essential
for Marks and Spencer to effectively evaluate different types of factors that are pertaining in
business environment in order to identify its impact on implementation of strategic plan. This
will further allow company to identify risk at prior stage through which they can overcome their
weaknesses in time effective manner (Cassidy, 2016). With the help of this, M&S can assure
success of their strategic plan in a well define and effective manner.
b) Determine and apply a range of tools and concepts to monitor and review the strategic plan
There are wide range of tools available in business environment through which an
organisation can effectively monitor and review strategic plan in an effective manner. With this
they can review their plans, strategies and work and can further accomplish pre-determined goals
and objectives in effective manner. Mentioned below there are some tools through which M&S
management can review their strategic plan effectively:
SWOT Analysis:
It is a strategic frame work that allows an organisation to evaluate its strength,
weaknesses, threats and opportunities (Kerzner, 2019). With the help of this analysis
organisation can assure effectiveness of its business plan while determining strength and
weaknesses for particular strategy can can further develop strategies against them while
evaluating prevailing opportunities.
BASIS DESCRIPTION
*Strengths
 Marks and Spencer is having strength to conduct its business
operations with unique products portfolio through which they
attracts large base of consumer attraction.
 Company is having high brand image that acts as their major
strength for high profitability generation.
Weaknesses  Marks and Spencer offer wide range of diversified products and

services in marketplace, but it requires different marketing strategies
in which M&S lacks. This acts as their major weaknesses.
 Organisation make less investment in marketing and advertisement
segment comparatively to other rivals in respective industry.
Opportunities
 Marks and Spencer is having opportunity to undertake advantage of
high-tech technology like digital marketing and AI in order to
assure more competitiveness as compared to other rivals (Hübner
and Wollenburg, 2016).
 Company is having significant opportunity of growth by
undertaking use of different social media platforms platforms like
Facebook, Instagram and more.
Threats
 Marks and Spencer is facing threat from other rivals like Asda,
Sainsbury's and more.
 Threat of availability of raw material due to COVID-19 is also
affecting profit earning capability of company.
Porter's Five Forces Analysis:
This is essential tool through which business organisation can evaluate extent of
competition which is prevailing in respective industry. In addition to this, with this analytical
tool organisation can determine attractiveness which is prevailing in the market. With the help of
this analysis Marks and Spencer can evaluate its positioning in marketplace. Along with this, this
tool will also aid M&S to review their strategies according to the extent of competition which is
prevailing in market:
Buyer's bargaining power-
Marks and Spencer performs its business activities in clothing and retailing industrial
segment. This makes important for company to continuously monitor changes that are taking
place in industry. It has been evaluated that in this industry buyers are having high power as they
can easily switch the preferences towards other companies. This can affect strategies of M&S for
which company is required to mainly offer highly creative as well as innovative products to
consumers in order to make themselves distinct from other rivals.

Supplier's Bargaining Power-
It has been evaluated that suppliers facilitate smooth and continuous business operations
of entity (Bryson, 2018). In terms with retailing sector this is being determined that suppliers
wants to perform their business operations with leading entities like M&S. In this company is
having significant opportunity to negotiate prices of raw materials and conduct cost effective
operations while assuring higher profitability.
Threat of Substitutes-
Marks and Spencer is performing its business services in retail industrial sector in which
there is high level of substitution threat due to the presence of organisations who are offering
same of similar form of services and products to customers. Thus, in order to overcome this
threat entity required to offer unique services and products in highly competitive price base in
order to assure more competitiveness as compared to other rivals.
Threats of new entrance-
It has been evaluated that in order to enter in retailing segment new entrants needs high
capital investments and distinctive strategies in order to compete with leading entities like Marks
& Spencer. This indicates that threats of new entrants is low in retailing segment. In this M&S is
having an opportunity to attract and retain more customer base in order to expand area of their
services.
Competitive Rivalry-
It has been evaluated that Marks and Spencer is facing threat of high competitive rivalry
from organisations like Asda, Sainsbur, TESCO and more. These organisations are offering same
or similar form of products and services to customers. This is creating threat upon M&S profit
earning capabilities. To effectively overcome this, company is required to undertake advantage
of effective marketing strategies such as product or price differentiation in order to ensure more
competitiveness then other rivalries.
Thus, by evaluating above mentioned analysis it has been determined that, Marks and
Spencer by taking advantage of all the above mentioned tools can effectively review or monitor
their strategic plan in more effective manner and can further assure higher profitability and
productivity.

c) Determine the impact of the strategic plan on the organisation’s direction and achievement of
the organisation’s objectives
Strategic planning is having significant tendency to maximize organizational
performance in effective manner. Further it has been evaluated that, it benefits entity on run and
assures its long term sustainability in respective industry. According to the evaluation it has been
determined that strategic plan is having effective tendency to increase attractiveness and viability
of entity (Bryson, 2015). In addition to this, it has been evaluated that strategic planning is also
providing sense of direction of company through which entity can fulfill its measurable goals.
Along with this, according to the analysis it has been determined that with the assistance of
strategic planning Marks and Spencer can effectively undertake guidance of evaluating its day-
to-day decisions and can also evaluate progress as well as changing approaches wile moving
forward. Thus, according to the above mentioned analysis it has been determined that strategic
plan is having significant as well as positive impact upon organization direction. As with the help
of an effective strategic plan entity can achieve its objectives in more effective and efficient
manner.
CONCLUSION
According to the above mentioned analysis it has been evaluated that strategic planning
facilitate an organisation to implement effective strategies while determining risk. It is essential
for an organisation to formulate effectively aims and objectives by evaluating different factors
that are prevailing in environment. In this entity can undertake use of Porter's Five Force
analysis as well as SWOT and develop business plan. This will allow entity to assure more
profitability and long term sustainability.

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