Analyzing Macro and Internal Environment for Mark and Spencer

This report provides an in-depth analysis of the macro and internal environment of Mark and Spencer, including the use of frameworks such as PESTLE analysis, SWOT analysis, and Porter's five forces. It examines the political, economic, socio-cultural, technological, legal, and environmental factors affecting the organization, as well as its strengths, weaknesses, opportunities, and threats. The report also evaluates the competitive forces in the industry and suggests appropriate strategies for improving market position.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1) Use of suitable framework to examine macro environment for Mark and Spencer.............3
M1 Critically analysis of macro environment for determining and informing strategic
management decisions................................................................................................................5
TASK 2............................................................................................................................................6
P2 Appropriate framework for analyse of internal environment................................................6
M2 Critical evaluation of internal environment to assess strength and weaknesses of
organisation.................................................................................................................................7
TASK 3............................................................................................................................................8
P3 Apply of Porter's five forces for evaluating competitive forces............................................8
M3 Appropriate strategies for improving competitive edge and market position......................9
TASK 4............................................................................................................................................9
P4 Different theories, concepts and model for effective strategic planning...............................9
M4 Formulation of strategic management plan........................................................................11
D1 Implement of information to provide valid directions and strategic actions ......................12
CONCLUSION..............................................................................................................................12
REFERENCES................................................................................................................................1

INTRODUCTION
Business strategy refers to as set of tactics adopted by management in order to achieve
set goals and objectives in the set time duration. Effective business strategy helps the
organization to be in the leading position. It is a roadmap through which competitive advantages
against rivalry can be gained. Tactics are framed by scanning the external environment in order
to gain productive results. Mark and Spencer is a British international retailer whose headquarter
is in Westminster. This firm is specialized in selling home products, high quality clothing and
food products. This report includes Pestle analysis so as to examine macro environment. SWOT
analysis and VRIO model is studied in order to assess the internal environment capabilities of the
firm. On the other hand Porter's five Force model is measured deeply to better understand the
competitive forces influencing the organization activities (Austin and Pinkleton, 2015).
Additionally, numerous models, theories and concepts are highlighted so as to device strategic
planning for a company.
TASK 1
P1) Use of suitable framework to examine macro environment for Mark and Spencer
Background of the mark and Spencer
Mark and Spencer is a leading organisation who is successfully serving it's goods and
services across the globe. The mission of the organization is “To provide everyone aspirational
quality product and services”. Management works day and night to meet the emerging needs of
the customers regarding home and food product. On the other hand vision statement is build
brand on core values of quality, trust and innovation. By scanning the external environment
strategies are framed so that tough challenges can be created for rivalry prevailing in the open
market place. Whereas, objectives is to accomplish the same position and leadership in clothing
and food (Auzair, 2011). To attain the the desire objectives skilled and capable employees are
recruited for the vacant place.

Illustration 1: Source()https://www.pinterest.com/pin/448811919110292994/
Macro environment is explained as set of external forces such as, political, social,
technological, economical and many more which directly or indirectly affect the companies
growth and development in both positive and negative way. In the dynamic environment macro
factors are uncontrollable in nature. So PESTLE analysis in the context of M&S is as follow: Political factor- One of the most crucial aspect for each organisation is to complete
whole functions and operations according to government rules and regulations.
Moreover, political factor influence business size of organisation through generating
positive results such as free trade and low tax rates due to positive relations between
country. Similarly, political aspects also impacts on companies which are operating their
business this refers if negative situation raised between countries than business operations
are directly impacted due to inappropriate decisions making (Chen and et. al., 2018). Economical factor- Price and monetary aspects all are essential part for organisation
which impacts on retail industry. Companies and residents who are settled in UK are well
economically developed. In context of M&S, they are largest retailers which offers
attractive discount to its customer's. Due to this it influence more number of customer's

for purchasing products from M&S. On the other side, Brexit impacts on operations of
M&S operations due to its budget clothing directly impact on discount competitors. Socio-cultural- Social factors impacts on all trade activities which are performed by
management it includes social, cultural, belief and value that are followed by residents of
society. Retail chain and industry refers to those aspects which are followed by
management as per roles and responsibilities for completing work as per society. Trends
and nature which are followed by UK impact on products of M&S. So to influence
positive more number of customer's management offer those products which are positive
for organisation (Dong-Hun, 2010). Technological- One of the largest trend in retail industry refers to technological aspects
which are followed by all retail organisation. In context of M&S it majorly impact on
their retail stores that impact on wide basis to save money by recording all transactions
with accurate software. Technology impact positively on business methods as in UK it is
available at affordable prices. Moreover, to influence more number of customer's
technology positively influence customer's through online shopping and self-checkout. Legal factor- All rules, regulations, laws and legislations which are formulated by
government and industry must be considered by Marks & Spencer as it is mandatory for
management to follow all rules. This leads management to complete their functions and
operations with positive impacts in country. On other side, it also influence operations of
M&S by improving their brand image in market such as by ensuring better results from
operations of organisation.
 Environmental factor- From the last few years, organisation is facing too many
challenges from environment perspective. This refers that there are various challenges are
faced by management from environment perspective such as non-renewable items, use of
natural items for production of products etc. Marks & Spencer produce their goods with
sustainable technique such as to produce products as per carbon emission standards.
Stakeholder analysis
According to strategy of stakeholders analysis it is identified that it is a task which is
based on group matters. All individuals who relates with project and functions of Marks &
Spencer must participate in operations for completing work as per management steps (Drnevich
and Croson, 2013). This are as follow:

Step 1- In the first step involvement of stakeholder will be identified that relates with
project like supplier, government and customer's.
Step 2- Under this stage, stakeholders will be categorised according to their impact and
influence power. Some steps of these stage is as follow: High power, high interest- This types of individuals are highly engaged in project so
they utilise their power for completing whole project successfully. High power, low interest- Second types of individuals are less interested but they utilise
their power for satisfying project in proper manner. Low power, high interest- Individuals are highly interested in project but it is complex
for them to influence project functions.
 Low power, low interest- These type of persons are not interested in project not they
influence its functions.
Step 3- In the last by analysing all strategies, goals and objectives of organisation will be
communicated for completing project in effective manner.
M1 Critically analysis of macro environment for determining and informing strategic
management decisions
Macro environment and its factors demonstrate those aspects which are beyond the
control of organisation. So with strategic decision-making it is easy to deal with dynamic
environmental factors due to which goals and objectives of organisation are accomplished within
specified time period. Marks & Spencer consider PESTLE analyse for developing effective
strategies that leads management to overcome from Brexit aspects as well as to improve
economic conditions of country.
TASK 2
P2 Appropriate framework for analyse of internal environment
Internal environment refers to those components which are present in organisation and
relates with strategy and decisions of Marks & Spencer. The main aim to monitor internal
environment is to develop those strategy which provide competitive edge in market to M&S by
focusing on strength due to which all operations of business are completed effectively (Hahn,
Kolk and Winn, 2010). Along with this internal environment consists framework and structure of

M&S, value system, employee's, physical resources etc. In context of M&S analyse of micro
environment and capability is analysed as follow:
SWOT Analysis- With the implement of SWOT tool it is easy to analyse strength,
weaknesses, opportunities and threats of organisation. So with the proper analysis of internal
environment it is easy to deal with dynamic environment conditions of market. SWOT analysis
in context of M&S is as follow:
Strength
 Marks & Spencer offers high quality
products with latest trends in market
which is major strength for
organisation.
 Online and offline structure of M&S
retail stores is highly advanced and
strong. This represent major strength to
cover market area.
 Organisation is highly focused towards
enhancing better customer experience
which also leads company to increase
its strength effectively.
Weakness
 Financial performance of Marks &
Spencer is too weak due to its
expansion and other variable expenses.
 Major sale of the M&S products will be
gained from UK market. So its major
reliance depend on local sale.
 It is complex to manage and monitor
demand of products on constant basis.
Due to this some times products will be
recall it results to decrease in
customer's trust.
Opportunities
 Developing countries are the major
market untouched area so M&S will
gain business opportunity to invest in
new areas.
 By replacing operational model and
develop them according to
globalisation. It is easy for management
to accomplish more market area.
Threats
 Due to Brexit there are regular changes
in market environment will be
monitored. So it is complex for M&S to
deal with all threats.
 Due to high competition in food and
clothing industry the price factor of
organisation is highly impacted (Hsieh
and Chen, 2011).
VRIO model is the another tool which is used by management of Marks & Spencer to
analyse value, rare and other factors in same retail industry. Marks & Spencer implement various

new features which enhance its position in market. Therefore, VRIO analysis for the respective
organisation is mention as follow: Valuable- Marks & Spencer plc demonstrate that financial strength and infrastructure of
company is too strong. So it helps management to invest easily in existing opportunities
of market. Moreover, due to such valuable resources management of M&S will easily
overcome from threats of organisation. Rare- Infrastructure and framework which is developed by management of M&S to
manage their retail stores on online and offline basis is rare products for firm. This also
determines that there are various task are performed by management due to which it will
lead to gain competitive edge in market by its unique features (Köseoglu and et. al.,
2013). Imitable- In the present scenario, local food products and financial aspects of Marks &
Spencer are complex to follow. This determines it is difficult for other organisation to
formulate products similar to other organisation. Along with this it is also complex for
competitive companies to invest similar amount to offer good range of products.
 Organisation- By using right products at right time it is easy for management to capture
and identify better products that provides to become a good source of income. The main
motive of overall organisation products and services of M&S is to minimum utilisation of
resources and to earn high amount of profits from them.
M2 Critical evaluation of internal environment to assess strength and weaknesses of organisation
By analysing internal environment it is easy to enhance strength of organisation as well
as to adopt those methods that helps to overcome from weakness factor by changing strategy as
per organisational goals and decisions. Moreover, with proactive decisions it is also easy for
management to deal with threats of organisation due to which more value will be generated in
services and products of M&S. Further, due to low imitate process and policy it is also easy for
management to gain competitive advantage in market. This increases sustainability and
profitability of organisation in long run which provide better benefits to organisation.

TASK 3
P3 Apply of Porter's five forces for evaluating competitive forces
Porter's five forces is an effective tool which is utilised by business for analysing the
degree of competitiveness in market. This will be done by the help of five forces that helps to
recognise better planning as well as to recognise effective strategies that increases potential
market share of Marks & Spencer (Martinez-Simarro, Devece and Llopis-Albert, 2015). This is
also beneficial for planning and implementing strategies according to business and market
conditions. Porter's five forces in context of M&S is as follow: Level of competition- Retail industry is growing with rapid speed due to which
competition among companies is also increased. It determines competition level is high
under retail industry. This problem also diversify into all fields of retail business which
add number of problems due to more competition in retail industry is monitored. Marks
& Spencer deal with issue of competition by offering good quality products to its
customer's in order to capture more market share. Threat of substitutes- The power of substitute products refers to those products that are
similarly available in market. It determines that there are various challenges will be faced
by management that impacts on overall productivity of profitability of Marks & Spencer
products (Moseley, 2017). Further, the approach of substitute products is high in market
as food and clothes products are easily offered by rival companies. Example- John lewis
provides good quality cloth segment products due to this substitute power is high in
market. Threat of new entrants- In the context of UK retail industry most of the organisation
required high amount of investment to successfully establish in the country. This refers
that threat of new entrants is low in market due to high amount of finance. On the other
side, UK market is mature so consumer demand good of products and services. This
governs it complex for new organisation to first invest huge amount of finance and then
to deliver better quality products as they are high in price (Noe and et. al., 2017). Bargaining power of buyers- In context of buyers, the existing market scenario
demonstrate that customer's are the king of market. Most of them requires good quality
products at low prices. So the bargain power of customer's is high in market it also refers
that many companies are present in market that offers products and services to consumer

in better way to enhance loyal customer's base for products. Moreover, Marks and
Spencer also focuses on customer's needs rather than price competition.
 Bargaining power of supplier- Marks and Spencer is operating their business at global
level. Therefore, the bargain power of supplier is low as numerous supplier are also
focused to trade with Marks & Spencer because management will buy products in bulk.
This enhances the profit margin of products of supplier. Along with this with developing
countries also provides better quality of products at low prices so supplier power is too
low in market.
M3 Appropriate strategies for improving competitive edge and market position
Strategy offers an effective roadmap that must be followed by organisation for taking
appropriate decisions. The major concern of strategy is to take right action and activities for
achieving goals and objectives of company. With Porter's five forces it is also easy for
management to analyse their strength and weakness that deal with challenges in micro and macro
environment of organisation by utilising appropriate strategies. This refers proactive actions and
decisions help management to gain competitive advantage in market.
TASK 4
P4 Different theories, concepts and model for effective strategic planning
The term strategic planning refers to an organisational activity which is used for defining
right strategy and direction in order to allocate all resources within appropriate manner (Oltra
and Luisa Flor, 2010). The main motive of strategic planning is to define realistic goals and
objectives of management that are directly relates with mission and vision of objectives. On the
other side, strategic planning also leads Marks & Spencer and its workforce to utilise all
resources in effective manner by using all resources as on priorities basis. On the other side, with
proper strategic plans company also develop some benchmark that improves quality of products
in appropriate manner. On the other side, theories and models perform crucial role in
development of strategic plan by focusing on organisational culture and environment which are
followed by management of Marks & Spencer.
Ansoff Matrix is recognised as the strategic plans that is developed by Igor Ansoff to
offer an effectively framework that devise better strategies for upcoming future. Moreover, with
Ansoff matrix it is also easy for management to make those strategies that provides future

growth to business. From the perspective of Ansoff Matrix there are four different strategy are
utilised by M&S which are mention as follow:
Illustration 2: Source(https://slideplayer.com/slide/7791712/)
 Market Penetration-In the present scenario market of Marks & Spencer is present at
international level. This defines that there are various task are performed by management
to satisfy needs as well as wants of customer's. Therefore, it is mandatory for Marks &
Spencer to implement right strategy at right time. Existing market area for market
penetration refers to development of products as per UK retail business. So this strategy
help organisation for gain short term profits only.
 Product development- According to this, product development refers to introduce new
product in existing market. Marks and Spencer recognised as an international retail brand
among overall world. With product development strategy management of M&S will
focus on developing new products by utilising technology and better raw-materials for
formulation of products (Schrader, Freimann and Seuring, 2012).
 Market development- With the market development strategy and its implementation in
the operations of Marks & Spencer it is easy for management to enter into new segment,

areas and territories that are present in world. Moreover, there are different ways will be
present in market such as to offer franchise in market. So more persons will invest in
operations of Marks & Spencer for increasing more number of stores. Example- the
recent plan of respective company is to enter among the market of developing countries
such as Asian market.
 Diversification- Diversification strategy is one of the most risky aspect of organisation
which is impacting on business and its size. This refers that Marks & Spencer will
required more amount of investment to enter into new products line as well as to enter
into market area also. This refers by implementing diversify strategy in proper manner it
is easy to earn better amount of profits.
So by understanding Ansoff's matrix the management of M&S must focus on
diversification strategy as it enhances number of products and market area for organisation. Due
to which sale and profit of Marks & Spencer both will increase in upcoming market.
Porters generic strategies- With Porter's generic model an organisation determines
those factors through which management is able to gain competitive in market by using existing
resources. Cost leadership- According to cost leadership customer's are able to influence customer's
by prices of products. This refers with right and affordable prices it is easy for
management to increase their sales easily. Differentiation- With differentiation strategy management offers new as well as unique
feature in existing products. This governs management increase sale of products by
providing new product to customer's.
 Focus strategy- With focus strategy an organisation will focus on cost as well as
differentiation strategy. Marks and Spencer is providing better products through which
Marks & Spencer offer good quality products at right prices to its customer's. This refers
customer's are attracted by management at large scale (Sirén and Kohtamäki, 2016).
Marks and Spencer utilise market development strategy to grow in market that is untapped as it
increases products to solve them in effective manner. Moreover, with development strategy it is
easy for Tesla to utilise innovative and new technology through which products are offered with
unique approach. Food and clothing products always keep in trends that measure and evaluate
performance of organisation in effective manner.

M4 Formulation of strategic management plan
With appropriate strategic management plan it is easy for management to formulate right
vision and mission. Due to this all task are performed by management according to internal and
external environment perspective. This results organisation will achieve its goals as per strategic
plans. Upcoming plan of Marks & Spencer is mention as follow:
Vision- To gain the top position in retail industry by utilising new and innovative
techniques in its operations.
Mission- For generating major changes in the world by performing and directing all
operations as per sustainability.
Strategies- Market development strategy is used by M&S to increase their market size
and customer's base by introducing all existing products into new market.
Objectives- Increase in customer base with 30% within a period of 90 days.
Tactics- M&S offer and deliver their products through E-commerce structure and offline
retail stores to increase their customer's base for enhancing sale of products.
Implementation/Control (Resource Allocation and Control measures):
This is essential for the organisation to implement new plans as well as to allocate better
products to its customer's for completing all task in effective manner (hompson, Strickland and
Gamble, 2015). This refers with proper management it is easy to execute and reduce waste for
minimising results that invest to bring profitable outcome for improving and enhancing skills of
workforce and teams.
D1 Implement of information to provide valid directions and strategic actions
It is essential for each company and organisation to analyse the detail impact by
considering internal and external environment factors which relates with growth and

development strategies. With such proper analysis it is easy for organisation to formulate
strategy through which vision and mission are accomplished by management at minimum cost.
VRIO, PESTLE and SWOT are some effective tools which provide detail information about
environmental aspect and internal capabilities of company. Due to in-depth and accurate
information it is easy for management and authorities to make right strategy for future plans and
actions.
CONCLUSION
In the last by the above report some effective conclusion are developed by organisation
that will be evaluated from the perspective of environment. This are various task will be
performed by management through considering external and internal environment. This refers to
analyse and formulate strategies to deal with several challenges and to achieve organisational
goals in decided time-frame. Moreover, to formulate right strategy the organisation will also
focus to prioritize those resources through which key components leads management to achieve
all goals in an appropriate manner.

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