Business Strategy: Internal and External Analysis of Marks and Spencer

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Unit Title and Number: Business Strategy (Unit 32)
Project title Business Strategy Project
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BUSINESS STRATEGY
(UNIT 32)

EXECUTIVE SUMMARY
Business strategy can be set of activities which are used by organisation in relation to
achieving its business objectives by managing resources. In relation to formulation of effective
business stagy it is important for organisation to identify internal and external environment. For
this purpose organisation can use frameworks like SWOT, VRIO and Pestle. These all are
helpful in identification of factors which impact organisation internally and externally. Along
with this, it is also essential for firm to use appropriate frameworks which helps in identification
of current market in achieving competitive advantage in business function. For this firm can use
Porter's five force model which will use to identify the factors which can impact organisation
while working in market. Organisation like M&S can use its goals, mission and objectives to
formulates effective stagy and chose one strategy from Ansoff matrix to achieve profitability and
productivity in target market.

BUSINESS STRATEGY (UNIT 32)
Table of Contents
Table of contents. .......................................................................................1
Introduction.................................................................................................2
Applying approptiate frameworks analyse the impact and influence of the macro
environment ................................................................................................3
Analyse the internal environment and capabilities of a given organisation using appropriate
framework....................................................................................6
Porter Five Force model to evalute competitive forces of market...........................11
Strategic planning for organisation..................................................................12
Conclusion................................................................................................17
References................................................................................................18
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BUSINESS STRATEGY (UNIT 32)
INTRODUCTION
Business strategy can be defined as set of activities which has to be use by organisation
relation to achieving its business objectives. This is useful for organisation in achieving its
business objective by defining the goals and path to achieve these goals. The major roles of
business strategy in organisation is to manage resources and improving functioning of firm to
achieve business objectives. In relation to current project, a study is done on M&S, which is a
British multinational retail company and operates business at global level (Johnstone, 2016).
Under this report, there discussion about internal and external factors which are impacting
organisation and are important in relation to decision making process. There is also discussion
about Porters five force model which will help organisation in identification of competitive
advantage in market. In end, there is use of Ansoff matrix along with strategic management plan
to achieve business objectives.
Applying appropriate frameworks analyse the impact and influence of the macro
environment
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BUSINESS STRATEGY (UNIT 32)
Today, business environment consists various outside factors which can impact on
performance and decision making ability of organisation. This is because its dynamic in nature
which includes various complex and rigid tasks, that possess challenges on firms related to
respond towards changing government policies, economic fluctuations and many more. For this
purpose, in order to respond towards such factors and run business sustainably, it is essential for
firms to adopt concept of external environment scanning. In context of Marks and Spencer,
management in organization is using PESTLE analysis. This include external environment which
can be define as environment that impact from outside. This is a framework which can be use by
organisation in relation to scanning the external factors which are impacting on performance of
firm in current and future time. It includes scanning of different factors to develop better
strategies ad discussed below:
Political: It include those factors which are related to political environment of area where
organisation is working. In relation to M&S, it is operating at global level where its is essential
for organisation to formulate appropriate strategy. The major political factors which impact
M&S arise due to BREXIT, open market polices of government and many more. M&S is
operating in global market in various nations where there is political stability. This helpful to
organisation in making polices according to it. BREXIT is that political factor which impacting
M&S the most. This is because due to this, Britain government is focusing on easing polices to
business. This will increase competition to M&S because of easy business polices. This has
create negative impact on its functioning, until the firm would not avail appropriate cost cutting
strategy. Changes regarding policies lead to market disbursement and fluctuation in the money
flow of the economy. This will also impact on retail function of organisation because it has to
change its polices and use more price effective strategy in firm ( Li, 2019).
Economical: It includes those factors that are related with economic condition of a
market, where a company operates its business. These are growth rate of economy, employment
rate and various other factor which impact directly on performance of organization. In relation to
recent period, where most of the nations are facing problems related to economic slowdown,
arise due to vast pandemic attack of COVID-19. In context with M&S, as it operates retail
business in global market, so restrictions in trading, movement of resources across nations and
more, results in arising a high financial loss. In relation to M&S organization use those products
which are currently in demand. These are sanitizers, PPE kits, face masks. With these efforts,
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