Strategy and the Global Competitive Environment

Strategy and the
Global Competitive
Environment

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................3
4 scenarios for future of retail industry........................................................................................3
Pestle Analysis.............................................................................................................................3
Porter five Force..........................................................................................................................5
SWOT analysis............................................................................................................................6
Ansoff Matrix..............................................................................................................................7
Bowman Strategic clock..............................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Organisation make various strategies and plan in advanced in order to face different
challenges of global competitive market so that it can sustain and grow its business operation.
Companies while operating internationally have to understand views, ideas of each individual
that live in society in order to provided products and services as per their requirements so that
overall objectives of firm can be achieved. This report is about Marks and Spencer that operates
in retail industry providing personal, home care and clothing products to its large number of
customers to earn maximum amount of profitability. It have discussed analysis external
environment that affects operation of Marks and Spencer in UK by use of several model such as
Swot, pestle, porter five forces. Ansoff Matrix and Bowman’s clock are used to formulated
effective strategies that can be used by company to gain competitive advantages in future.
4 scenarios for future of retail industry
There are four scenarios that need to be considered by companies
that operate in retail industry such as digital transformation that is Artificial
intelligence, sustainability or optimum utilisation of resources, ethical work
practice, Brexit and organic food products so that customer’s requirements
can be meet. Companies that operate in retail industry have to ensure that it
makes specific changes in its organisational structure, operation and
technology to grow and sustain its business in future circumstances. Brexit
one of the uncertain policies of UK government that have reduce sales
volume of enterprises that operates in retail industry. COvid -19 have also
tremendously impacted sales volume and profitability of most of the retail
sectors enterprise. Therefore, various models are used to justify four recent
scenarios for future of organisation in retail sectors.
Pestle Analysis
External environment of business includes various factors such as political situation,
economic condition, needs and preference of individual or legal factors that impact or influence
on strategies of organisation (Bloom and et.al., 2019). Manager of different companies has

effective analysis all such factor so that firm can easily expand its business operation and attain
its specific objectives. Therefore Pestle analysis of retail industry can be illustrated as follows:
Political factors: There are numerous changes in policies of government that have adversely
impact on operation and profitability of organisation. Brexit is one of the recent policies that
have made by UK government which have adversely impacted overall sales volume and
profitability as before company can easily import and export good to member of EU. But now it
has to pay extra tariff and taxes for export that have increased overall cost so less number may
prefer products due to high cost. At the same time they have get benefit from free trade
regulation thus it can easily enter new market to earn more profitability and customers
satisfaction. On the other hand Organic food product strategy has helped M&S to improve its
market position and competitive advantages. Sustainable or optimum utilisation of resources
contributed in providing more values to customers thus satisfy their needs in best possible
manner.
Economic factors: It is another factor that has been considered by companies while formulating
different strategies in order to retain its market position. UK is facing recession since people
have voted for existence from EU as most of the trade of country is done with EU so it have
resulted in economic slowdown for temporary basis. Companies in retail sectors have planned to
trained employees to make optimum utilisation of available resources so that needs of individual
can be satisfied and they can be motivated to make purchased. For examples: Due to less
availability of employment opportunities and decreased in disposable income of people Marks
and Spencer sales have gone down as people are less likely to spend money on products (Al-
Khasawneh, 2020). It have also make use of ethical practices to retained talented employees
within organisation so that customers are delivered qualitative services.
Social factors: There are various factors that influence decision making of customers such as
social culture, technological or psychological that are understand by manager of different firm so
that it can expand its business operation. Manager of retail sectors have to provide good working
environment, equal opportunities to people to retain highly talented employees within
organisation. Most of the younger generation in UK and worldwide like to shop products and
services through online so company have increased its presence in social sites to meet customers’
requirements.