Effective Business Strategy and Sustainability

This assignment is focused on the importance of effective business strategy in achieving long-term sustainability and profitability. It emphasizes the need for companies to formulate well-effective business strategies to gain more profitability and ensure long-term sustainability. The report covers SWOT and PESTLE analysis to identify strengths, weaknesses, opportunities, and threats, providing a comprehensive understanding of company macro-environmental factors. The assignment draws on various sources, including books and journals, to provide a detailed understanding of the topic.

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Business Strategy

INTRODUCTION...........................................................................................................................1
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..........................................................1
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks.............................................................................................................................3
P3 Applying Porter's Five Forces model as to evaluate the competitive forces of a given
market sector of an organisation.............................................................................................6
P4 Applying a range of theories, concept and models, interpret and devise strategic planning
for a given organisation..........................................................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals...............................................................................................................10

INTRODUCTION
In this modern dynamic scenario organisations are facing more exciting and challenges,
for this there is an extensive requirement for companies to have proper business strategy in order
to become strategically competitive (Brewster, 2017). Sustainable and continuous competitive
advantage of a strategy occurs when an organisation implement a business strategy which
becomes hard for other competitive companies to duplicate the benefits. An effectively business
strategy include, actions, commitments and decisions which is required by a firm in order attain
more strategic competitiveness and returns. Present report has been conducted on, Marks and
Spencer.. Company perform their operations in British retailing sector and engage in the process
of offering wide range of products including, furniture, clothing, watches, cosmetics and food. In
this report formative discussions have been made on, PESTLE analysis which will effectively aid
in gaining knowledge of macro environment factors. In addition to this, report covers SWOT and
VRIO which helps in taking proper insight of organisational capabilities. In addition to this,
Porter's Five Force along with Ansoff matrix is effectively described in this report with the help
of which devising of strategic management plan can be effectively done.
P1 Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organisation and its strategies
In order to perform business operations in a successful and effective manner it is essential
for an organisation to access and evaluate overall macro environmental factors which will help
them to analyse impact of external factors on the organisation functioning. Marks and Spencer
has effectively conducted PESTEL analyses in order to evaluate macro environment factor:
PESTEL Analysis
PESTEL analyses is a technical strategy which help a company to evaluate the impact of
external factors as develop strategies so to accomplish goals and objectives of company in well
defined manner. This analysis consist different types of factors such as, Economic, Social,
Political, Legal, Technical and Environmental. Mentioned below PESTEL analysis of Marks and
Spencer is defined:
Political: Company has decided to offer their business services in the marketplace of
United Kingdom which an integral part of European Union. Market condition in Europe is
limited that helps an organisation to enter with an ease and perform business operations. This
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lead towards increase in competition for M&S. For this, UK government provide relation in
capitation tax rates from 33% to 29% which aid organisations to gain more profitability form a
marketplace. Thus, it is essential for Marks and Spencer to frame formative strategies as per
according to government rules and regulation which will further benefit them to perform their
functions with more ease.
Economical: After the condition of Brexit economic system of UK face recession which
impact on interest rate as they face heavy fluctuations. In order to cope up with this situation it is
essential for companies operating their functions in retailing sector to provide their products and
services to customer at a comparative low rate (John Lewis PESTEL Analysis. 2019). This
situation also affects M&S business operations for which is required for company to cut down
their rate base of their products and service in order to attract more customer with their new
pricing scheme. But this affect manager as it is they may face complications to frame new
strategies accordingly.
Social: Cultural aspects of society are dynamically changing that benefits business
organisations to gain more opportunities as to grab attention of large base of customer towards
their products and services (Jeston, 2014). In context with, Marks and Spencer introduces their
new product line of fashionable products in a market place in order to catch attention of new
base of customers. It will benefit M&S to gain more profitability. It can also bring further threat
for company as they are require to frame strategies and policies as per according to their existing
competitors in order to restrain their consumers to move towards other organisation. Thus, M&S
is effectively developing new set of product and service range accordingly to demand of society.
Technological: In this factor concept and usage of technology is considered. In context
with this, Marks and Spencer effectively encourages online way of shopping in order to reduce
wastage of paper and making environment paper less. Company keeps on finding different
alternative ways as to facilitate online shopping to their customer. In this company offer their
products and services form different location at any time and place. Along with this M&S is
effectively taking advantage of different types of innovative tools and techniques in order to
effectively manage their business operations, this will benefit them to take advantage of different
types of innovative technical measures and perform their business operations in best effective
way. But adoption of new technological measure required large investment of funds.
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Environmental: Nowadays, environmental factors are effectively taken care in such a way
to build a healthy and clean environment (Chen and Jermias, 2014). In context with Marks and
Spencer, Company have inherited many effective strategies and machineries in order to reduce
their carbon footprint usage. In addition with this, company is recently taking advantage of
biodegradable papers as to reduce environment contamination form environment. By doing this,
company strengthen its capacity to produce more environment friendly products as draw
attention of customers in a positive way. But to accomplish this process in a best effective
manner M&S is required to take usage of more funds.
Legal: This factor in PESTEL analysis consist rules, regulations and legislations that have
been framed by government. In context with this, Marks and Spencer effectively ensure that all
the required and necessary regulations framed by government is duly obliged. In this company
abide health and safety regulation for both employees and consumers. Along with this company
effectively adopted renewable resources in their product process of clothing range. By doing this
M&S effectively able to make sure that health of their employees are not compromised in any
way and proper safety measures and other necessary requirements in adopted by organisation.
This will effectively aid M&S to perform their organisational functions in best way. But some
modifications in legal factors may influence decision making process of company.
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
frameworks
In order to effectively evaluate internal environmental structure of Marks and Spencer,
company conducted SWOT and VRIO analysis. It will guide and assist organisation to know
their effectiveness and capabilities in a well-organized manner:
SWOT Analysis:
STRENGTH WEAKNESSES
 Marks and Spencer have strong
competitive brand image within a
marketplace which helps in attracting
and encouraging customers towards
company products and services.
 Marks and Spencer hold well-built
 Marks and Spencer lacks in
understanding and knowledge of
international business functioning.
 Company also face problems in
successful marketing strategies.
 Organisation is lacking in taking
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existence in online marketing segment
by offering eye-catching and attractive
trending designs.
 Company effectively encourage
sustainable employee retention in order
to retain them for long time (Wheelen,
2017).
 Marks and Spencer offer attractive
range of products and services to their
customers by analysing current market
trends and fashion.
competitive advantages at a
marketplace.
OPPORTUNITIES THREATS
 Marks and Spencer can increase their
efficiency by introducing new range of
products and services.
 Company can effectively grow their
demand in a marketplace by
introducing their personal labels in
better effective suitable manner.
 Market and Spencer can gain more
market opportunities by widening the
scope of their strategies.
 Marks and Spencer can increase their
existence in international market by
expanding their functionality.
 With the implication of new rules and
regulations company may face adverse
negative impact on their internal and
external operational functioning.
 Major threat of Marks and Spencer is
there market competitors like, John
Lewis, TESCO, ASDA and more.
 Marks and Spencer may face serious
threat of collapsing if they expand their
business functioning as per according
to current diverse culture.
VRIO MODEL:
In order to effectively identify organisation capabilities, VRIO Model has been adopted
in the context of Marks and Spencer:
Factors Valuable Rarity Inimitable Organized What is the result?
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Global
Presence
Global
Presence
- - - Competitive Disadvantage
Products Products Products - - Partially competitive
Networking Networking Networking Networking - Competitive advantage for
temporary basis
Employees Employees Employees Employees Employees Competitive advantage
In order to effective identification of Marks and Spencer, consideration of four major
resources has been taken that include, employees, networking, products and global presence:
Rarity: In this aspect, those elements of company which is mainly rare and render high range of
competitive advantages to company in a marketplace is considers (Scholes, 2015). In context
with Marks and Spencer, global presence is not considered as rare as there are many
organisations those who perform their operations at global scale.
Products: Products offered by M&S is as per according to current prevailing trend in a
marketplace that is hard to be duplicate.
Network: Strong networking system is used by M&S in order to maintain proper record
and data of their customers in order to perform organisation functions in best effective way.
Employee: Workforce base including staff members of Marks and Spencer effectively
perform their functions in such a way that aid assistance to company in order to accomplish
predetermined targets in a stipulated period of time frame
Imitable: This factor includes those resources of a company which is hard to be copied by other
existing rivals.
Network: Networking system that is being used by Marks and Spencer are as per
according to current need of company which is hard to duplicate.
Employees: M&S provide effective technical skills and knowledge to their staff members
in order to increase both of their personal and professional traits which are hard for their rivals to
copy.
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Organized: This factor consists those basic elements which is required to be organized in such a
manner as to accomplish goals and objectives in a best effective manner (Peng, 2017). In Marks
and Spencer organisational structure company is required to update their networking system at a
regular period of time.
Employees: It is required for staff members of a company to effectively organized only
when there a certain change takes up in an organisation structure such as, training conduction of
employees.
P3 Applying Porter's Five Forces model as to evaluate the competitive forces of a given market
sector of an organisation
Porter's five forces model acts as a one of the most effective tool with the help of which
business organisations can effectively able to determine their present competition in a
marketplace. In relation with Marks and Spencer manager of company adopted porters five force
model to effectively evaluate their actual present competitive forces. This will aid them to
execute their internal and external operative techniques in best effective way. Mentioned below
porter five forces is described in brief:
Threat of new entry: This type of condition showcase a situation in which an
organisation can easily enter into a specific industry. In relation with Marks and Spencer, it has
been evaluated that threat of new entrants is comparatively low for this company as if any
organisation wants to establish their business in this industry it is important for them to make
high investment which is not possible for a newly entered company to secure high position in
short span of time. Along with this, rules, regulations, laws, legislations that has been framed by
government authorities seems to be difficult to be effectively implement by new companies
which create many obstacles for newly established companies to gain market stability.
Threat of substitutes: For Marks and Spencer threat of substitutes is much high as there
are numerous leading retailing companies effectively performing their activities by offering
substitutes products as to gain more competitive advantage. In context with this, it is required for
Marks and Spencer to take care of their customer’s core needs. It will effectively help to attract
attention of customers towards their company for long duration of time. As a result, it benefits
them to ensure their sustainability and profitability in a well-developed way.
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Bargaining power of customers: It is a fact that customer buying power is always at high
as they are the only major source who offer companies an effective opportunity to sustain their
position in a market for long time (Goffee and Scase, 2015). In relation with Marks and Spencer
buying power of consumers is high as there are many other companies performing in same
industry offer extensive range of services to customers. Thus, if any kind of mishappening
occurred it will definitely lead consumers to move towards other company brand. Therefore, it is
required for M&S to offer best and qualitative products and services to their customers at a very
feasible price range. It will effectively help them to ensure their sustainability at a market place
for long time.
Bargaining power of suppliers: Suppliers are those individual who provide resources like
raw materials to an organisation which will effectively aid companies to perform their
manufacturing functions. In context with Marks and Spencer, suppliers bargaining power is
comparatively low as M&S is a large scale companies performing their functions in different
geographical location. Thus, they have numerous set of suppliers those who effectively provide
them best range of raw material at a comparative low price. Therefore, company have more
options to switch their supplier’s base in order to attain raw materials at a low price.
Competitive rivalry: In this element of Porter’s five force model it has been effectively
described, competitiveness among companies those who are conducting their business operations
in the same industry. It is certain that intense competition automatically affects performance and
profitability of organisations. In context with Marks and Spencer, in order to gain high
competitive advantages company is required to effectively develop their sustainable differences.
It will definitely benefit M&S to gain huge profitability ratio in a best effective manner.
As per the basis of above described Porter’s five force model, this can be evaluated that it
will effectively benefit leaders and manager of Marks and Spencer to frame best effective
strategies along with formative market plan. This helps them to gain more competitive
advantages along with ensuring long term sustainability in a marketplace.
P4 Applying a range of theories, concept and models, interpret and devise strategic planning for
a given organisation
Ansoff Matrix is a strategic tool that helps in guiding management in a well effective way
in order to adopt best strategy for their business to attain more growth. In context with Marks and
Spencer, managers have framed strategies and policies with the help of matrix in order to
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effectively identify best possible strategy for their long term growth. In context with this,
strategies of matrix are elaborated below:
Market Penetration:
Growth strategy effectively aims towards providing already existing product in existing
marketplace. In relation with, Marks & Spencer manager can effectively take advantage of this
strategy by proving their products in untouched marketplace. It will automatically benefit
company to increase its profitability in a marketplace.
Market expansion:
This factor in matrix strategy is also known as market development. According to this
strategy main focus is on providing existing products and services in a new market segment. This
will effectively aid Marks and Spencer to gain approach of customers in a new market zone and
increase their profitability by reaching out in additional geographical areas.
Product Expansion: In this factor, organisations mainly focus on providing new range of
product and services in existing market. In relation with Marks and Spencer, it is evaluated that
by adoption of this strategy company will effectively able to offer new products and services to
their consumer base. In context with this, Marks and Spencer can effectively increase their
clothing range within the marketplace of United Kingdom and can effectively able to gain more
attention form their consumers.
Diversification: This factor in matrix strategy emphasis on offering company new
product range in a different geographical region (Cavusgil, 2014 ). This is one of the most risk
element as it is not certain that product of a company will get as expected acceptance by
customers. If Marks and Spencer implement this strategy, then it will become more costly
process for company as in this it is a requirement to adopt different marketing strategy. This
directly impacts on company profitability as they have high expense rate as compared to their
revenue.
As per the above discussion of ansoff matrix, it is evaluated that Marks and Spencer is
required to adopt market penetration strategy for their effective growth. It will effectively able to
help them in increasing its market stability in existing marketplace. Along with this, with the
help of this strategy company can effectively able to satisfy their customer base by raising their
sales ratio and strengthening its loyal consumer base.
Strategic Marketing plan
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Mentioned below there is a strategic management plan that has been framed by
management of Marks and Spencer:
Aim: To increase company operational scale within marketplace.
Vision: To emerge as a global leader of retailing industry.
Mission Statement: Company have mission to provide best quality of products and services to
their consumer in order to gain attraction of more customer base.
Goals and objectives: Management of Marks and Spencer have short term goal of effective
pricing strategy and long term objective of entering into developing marketplace.
Strategies: Marks and Spencer take advantage of market penetration strategies in order to attract
customer attraction and gain more competitive advantage.
Tactics: Management of Marks and Spencer implemented a tactic of launching their products of
high quality along with reasonable price base in order to influence consumer buying behaviour.
CONCLUSION
As per the above mentioned report, it has been concluded that strategic planning acts as a
most important part within a company structure in order to effective accomplishment of goals
and objectives. Along with this, in order to gain more profitability and ensuring long term
sustainability it is essential for a company to formulate well effective business strategy. In
addition to this, report covers SWOT and PESTLE analysis in order to effective identification of
their strength and weaknesses. It will help them to demonstrate company macro-environmental
factors and gain more opportunities. This will lead towards long term sustainability and
profitability of company.
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REFERENCES
Books and Journals
Brewster, C., 2017. The integration of human resource management and corporate strategy.
In Policy and practice in European human resource management (pp. 22-35). Routledge.
Cavusgil, S. T. and et. al., 2014. International business. Pearson Australia.
Chang, J. F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Chen, Y. and Jermias, J., 2014. Business strategy, executive compensation and firm
performance. Accounting & Finance. 54(1). pp.113-134.
Goffee, R. and Scase, R., 2015. The Real World of the Small Business Owner (Routledge
Revivals). Routledge.
Jeston, J., 2014. Business process management. Routledge.
Jocovic, M. and et. al., 2014. Modern business strategy Customer Relationship Management in
the area of civil engineering. Applied Mechanics & Materials, (678).
Klettner, A., Clarke, T. and Boersma, M., 2014. The governance of corporate sustainability:
Empirical insights into the development, leadership and implementation of responsible
business strategy. Journal of Business Ethics. 122(1). pp.145-165.
Laudon, K. C. and Traver, C. G., 2016. E-commerce: business, technology, society.
Lawton, T. C., 2017. Cleared for take-off: structure and strategy in the low fare airline business.
Routledge.
Peng, M. W., 2017. Cultures, institutions, and strategic choices: Toward an institutional
perspective on business strategy. The Blackwell handbook of cross
‐cultural management,
pp.52-66.
Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
Spender, J. C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise.
Oxford University Press.
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Veit, D. and et. al., 2014. Business models. Business & Information Systems Engineering. 6(1).
pp.45-53.
Wheelen, T. L. and et. al., 2017. Strategic management and business policy. Pearson.
Online
John Lewis PESTEL Analysis. 2019. [Online]. Available
Through:<https://businessteacher.org.uk/pestel/john-lewis.php>.
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