Macro Environments Analysis of Marks and Spencer

This report analyzes the macro environments and its impact on Marks and Spencer. It includes PESTLE analysis, Ansoff's growth vector matrix, SWOT analysis, TOWS matrix, and VRIO analysis.

Business strategy
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Contents
INTRODUCTION...........................................................................................................................3
LO1..................................................................................................................................................3
P1 Macro environments analysis.................................................................................................3
LO2..................................................................................................................................................5
P2 Internal analysis......................................................................................................................5
SWOT..........................................................................................................................................6
TOWS matrix...............................................................................................................................8
VRIO analysis..................................................................................................................................8
LO3..................................................................................................................................................8
P3 Porter five force analysis........................................................................................................8
LO4................................................................................................................................................10
P4 Strategic plan......................................................................................................................10
RECOMMEDATION................................................................................................................12
Conclusion.....................................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Strategy is mainly referred as planning that always support for organization to accomplish
their goal and objective. Enterprise strategy is being as long term plan which always
implementing suitable action for organization. In order to achieve the desirable goal and
objective. In another way, an effective business strategy is generally framed by enterprise that
will lead to successful position in their market segment.
Mark and Spencer is one of the major British multinational retailer with headquarter in
London. This organization is specialises in selling the home items, clothing and other food
products. It is listed on the stock exchange and maintain their position in global marketplace.
M&S was founded in 1884 by Michael Marks and Thomas spencer.
The report will describe about the framework analyse the impact and influence macro
environment on the M&S and its current strategies (Islam, 2016). It will determine the internal
environment capabilities, applying porter’s five forces model evaluate the competitive force in
marketplace. At last, the assignment will discuss about various range of theories, models,
concepts and other devise strategic planning for organization.
LO1
P1 Macro environments analysis
Marks and spencer is one of leading UK based retailer of home items and other financial
services. It has been recorded the success and profitability since its establishment with well-
known reputation for its innovative marketplace. The external environment is basically scanning
with competitive force and their impact on M&S (Kuusela, 2019 ). However, it is analysing the
forces and factors that will assist M&S in identifying the environment change. PESTLE
framework is the best model of technique that use to determine and analyse problem of M&S.
External macro-environment
Pestle analysis is based on the framework that mainly used by M&S for identifying the
current business condition or situation. This tool will provide the better idea about the political,
social, economic and legal and environment factors (Saravanan, 2019). In order to identify the
change in the external environment that causes decline in overall performance of M&S.
Political Factor: in this factor, committee decision to permit free flow of trade among
other nations but require to follow trade regulation. In this way, Marks and Spencer use trade
regulation to import their product and service in global marketplace. the positive way to impact
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on the organization where it took competitors as advantage of higher cost structure. On the other
hand, the company tends to have the facing pf the issues due to the dubbed Brexit as the decision
of the European union have the left the significant impacts in the company operations. This have
the stating the terms of the trade regulations and tariff in terms of the achieving the possible level
of outcomes as they consider to be ideal level of UK retailer. On the other hand free trade have
the importing od foreign products for the sale in the stores as per the cheaper prices for
maintenance of healthy profit margin.
Economic Factor: this factor can be changing a lot at the time of lifetime by
differentiating with level of unemployment, international trade, inflation and economic growth.
Marks and spencer are generally specialized in the niche market while focus on the
demand of customer. In order to make them and provide better customer satisfaction. Sometimes,
potential client prefers to import their product from aboard for cost saving (Saravanan, 2019). In
this way, it directly impacts on the M&S in term of cost disadvantage for perceived better high
quality. On the other hand, as the eft of the recession, the firm have the closed the number of
stores along with the descriptive level of job cut of the 2% among there 70000 staff. On the
other hand, the company have the discount level of competitors as the prices is the big factor in
the retail industry. the firm is stealing there to have market share from the premium brands.
Social Factor: The demand and concept of customer in marketplace has changed. Many
people do not sense the product as high quality. In this way, there will be no such demand for
fashionable clothing. On the other hand, price sensitivity is majority of client that has
automatically leaving M&S in less competitive position. The people of the country are
considered be least interested in order to have the spending the cash in the luxury level of ides
such as to go down the Fair-trade route on both clothing and food.
Technological Factor: it is another important factor that plays major role of
communicating new fashion to customers. It has been established the communication to design
as well as produce better products. Technology has rapidly changing the business performance
and efficiency in global world. Therefore, it impacts on M&S to enhance overall business
production and sales in global world. Th film is more releasable to have re-introduction of the
biggest level of trends in order or help the retailers by offering the customer with the Severus
of customer experience
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Environmental Factor: This factor considers both consumers as well as government that
have impact on the environment. In this way, it is rewarded for positive impact on the business
growth and development. It is another factor when M&S selling products in different nations by
supplier. It is greater way to affect on the environment how items are used and disposed by
client. M&S is the biggest retailer that will use wide range of raw materials to produce better
goods (Saravanan, 2019). It is critical way to manage the use of materials in proper manner, they
can affects on natural bio-diversity.
Legal Factor: This factor is mainly involved in law their work in order to consider legal
element within political framework. Sometimes, it can affect on the M&S who will not act
positively. M&S uses the rules and regulation which always supports for managing business
operation effectively and efficiently. M&S offering high standard of quality item which are
essential to meet customer satisfaction level.
Ansoff’s growth vector matrix
By using Ansoff matrix, M&S is to analyses the overall enterprise portfolio. In order to
make an effective strategies, expanding the business in global marketplace.
Alternative growth strategy
M&S has adopted the growth strategies and always try to win large market share. Even it
also expense of short-term earning (Wilson, 2016.). Sometimes, it also classified into different
ways: market penetration, diversification, market development and product development.
Market development
M&S grows the business by using market development strategies. Generally, it has
focused on the high quality of product therefore, it easily maintain the reputation of business in
marketplace.
Market penetration strategies
M&S uses this strategy for considering existing enterprise. It help for M&S to remain
maintain the current position in global world. Sometimes, it also used the strategies such as
customer loyalty, value chain improvement.
LO2
P2 Internal analysis
The internal analysis as the company have been considered as the very level of senseless in the
terms if there technological, economic and social factors with their ever growing and changing
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trends are the key drivers are the changing tends and online purchasing doesn’t have the
control over it.
The company have the core values that is such as the quality, affordability and the services
which is needed to the attack form eth level of competitors. The company tries to have the to
have the move to more there frozen the foods and more level of readymade products. The firm is
facing the level of challenges as the business segments with it level of competing. But the
company have failed to make the descriptive level of changings in order to be the pat of
compositeness this have resulted in the losing the profits and the market share.
On the other hand, the company is trying to gains more level of markets share along with
dominance which is needed to be better level of invested (Bernon, 2018). The company have the
larger level of market share as the firm is still level of refusing there and sulfuring the level of
profits. This have the proper level of implying over the weakness as to have the rather level of
throat cut world in the retailing. This helping in providing the access level of the meeting up the
quality of foods and clothing sector by the all the vision of company. There is all level of
commitments in order to have the proper level of understanding in order to meet up the customer
needs in the consistent manner.
The company have the proper level of succession in the 90% of the revenue from the UK which
have the increase the level of food and fuels procedure having the clear impacts on the level of
disposable incomes of the customer. Hence the firm have their leading the weaker demand in the
terms of non-food products, M&S is responding to this trend of cutting prices this is having a
serious effect on their sales
SWOT
This model have the clear level of offering of the different factor which are influencing the
internal and external level of analysis the report will have he detailed level of covering of there
strength weakness , opportunities and threats in the order t have the pouting yp the customer at
the all hearts of business (Toda and Dawson, 2017). The firm have been identified as one holding
the 18% of the market shares in the respective clashing space.
There the m has the major level of releasing of the larger slice of revenues have been affected
way the Brexit affects and sterling currency level of depreciation.
Strength
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The company have been recognized as there many levels of strengths as the firm have the major
level of high brand recognitions by proving the best quality of products and gain more level of
customer loyalist in perfect manner.
On the other hand, the firm have wide area of markets with the inclusion for the virality of
product available at every store which have heled out the customer to have best of it. On the
other hand, the large number of outlets turned the firm to b giant of the UK with around 1000
stores all around the world.
Weakness
The firm have the more level of drawbacks in the bad publicity which is turning out be
fashioned and non-trendy. The customer has gaining more level of wrong assumptions which is
turning to be the busines is low direction. The company have the major level of issues in the
tracking the new customers.
On the other hand, the manuals level of working has increased the cost, so the film has the new
level of technologies in prevention of the mechanized material handling to have to various type
of alternative logistic operations (Chen, Chang and Chen, 2017). The firm have the weakens as
the increases the cost and redecreeing the work level of efficiency and increasing the cost of the
company.
Opportunities
Th firm is have the more level of stabilizing in the UK and the have the perfect level of
opportunity to have the global level of expansions and extended to have he over seas in perfect
manner.
On other hand, the firm should have the proper level of new identification of the evasion fashion
trends on the regular basis. There is the inclusion of the huge level in the team of the ethnic and
tractional wear in which is the firm have been unable to capitalize. This is the one of the areas
which is the promising for company.
Threat
The company have major level of threat from conflict among their shareholders and executives.
The firm have the major level of need to get the appointments f the top managements which have
the better fitting in culture in the perfect manner.
On the other hand, the from have threats due to the ineffective level of capsulitis an
implementing of the proposed strategies.
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TOWS matrix
Strength weakness
Opportunities High quality customer to high end
customers. Maturing the high level of
profitability in order with scope of
improvement in the marketing and
technology
The limited level of supplier can be
turned int opportunity by having the
new level od suppliers.
Poor customer service can be enhanced
by entering int the e business in an
effective way.
Threat The firm have bene identified as the
high level of street giant along with
the paying the major level of
emphasize of the long-term
relationship. but the higher level of
cost in the developing the line sales
will lead to threats to ne market.
The higher level of production cost of
the company have turned into the poor
level of marketing strategy in order to
have enter the better level of
technology. this have led to the intense
level of coalitions.
VRIO analysis
Valuable- the company financial positions of the highly valuable as combining to the external
opportunities along with the existing food products as the highly level of differentiation by
customers due to the differentiation in these products.
Rare – employee are the rare resources as toe have the inhabitation of the competitive
advantages. the employee has range trained and skills as comparative to other firm.
Imitable - The patents of Marks Spencer are very difficult to imitate as identified by the VRIO
Analysis of Marks Spencer (Hull. and Scott, 2020). This is because it is not legally allowed to
imitate a patented product
Organization - The distribution network of Marks Spencer is organised as identified by the VRIO
Analysis of Marks Spencer. Marks Spencer uses this network to reach out to its customers by
ensuring that products are available on all of its outlets
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LO3
P3 Porter five force analysis
The firm have been identified as the major level of retailer which have the key level of
optimizing in the state of UK as the reorganization of the high level of street departments and
the major level of fussing of the food and clothing business aspects. In order to have the analysis
of the competitive target of the company, there will be the implication of the porter five force
analysis.
Bargaining power of Supplier power – Weak
The firm have the historical level of enjoying of the strong effective level of influence over the
respective suppliers in which the scale has been developed in the actual manner. On the other
hand, the purchasing is the bulk, other the party have the proper level o negation in the supplier
parts to have the proper level of bargaining power.
Bargaining power of Buyer power – High
On the other hand, the firm have the direct level of the product to the respective consumers but
the firm is facing the level of consumption. This is due o the increase level of sale in the online
trends which have ruined to be major threat for company (Tomlin, 2018). The consumer tends to
have the major level of success to have the purchase options which is the running the change
level of online services.
Threat of new entrants – Medium – the company don has the posing of the immediate level of
threat fpm the M&S duo having the larger level of scales, but the growth of the significant level
of their online trends in tuning to be the threats of the company.
Threat of substitutes – Medium –
There is the high level of street formats which have the major level of deciding at the rapid level
de the significant level of pressure from the online retailers. The essentials product or services
which are should by the company have not any level of pressure for the substitutions, on the
other hand the business model average need to be overall level of substitution. The firm have ten
ed to have the scansion in the online efforts in order to have prepare level compensation in
perfect manner.
Internal rivalry – High –
As the firm have the major level of selling the wired range of the products have the wide range
of compositor. He firm has the notable level of pressure formed the different clothing stores,
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supermarkets ad the departmental stores, this have the effectively the various major of retailers
which have the positioning the high level of the quality in term of the brand trust and locality in
perfect manner.
LO4
P4 Strategic plan
Company over view
M&S and its strategies.
Marks and spencer is one of leading UK based retailer of home items and other financial
service recorded the success and profitability since its establishment with well-known reputation
for its innovative marketplace.
The company have the clear level vision and mission of the fir.
The firm have the statement is became the level of standards assigns there other firm by
proving the quality of products to the cumber is satisfaction.
On the other hand the company have the mission as to have the clear level of reselection
regarding the organizational experience the fir have the imprecision level of quality which are
accessible to the other (al Habibi, 2019).
Values of the company
This are considered to be the belief along with norms which have the underpinning the
respective policies, objectivities and procedure which have the acting as the anchor and the
reference of point by underpinning all level of activities such as the quality, services , innovation
and trust in the perfect manner.
Key objectives
He majors objective is the part of the employee orientation which tends to have the high
level of exasperation and contribution in the organization. As such developing a career path for
employees. Its part of Mark and Spencer to attract, motivate and retain high calibre workforce to
assist the transformation of the business and deliver improved performance.
The organization objectives in order to have he regaling the to have the leadership gaining
in the clothing and speciality in food. This is to have the achievement in more way of transiting
the scales and the authority int the superior quality by the value of appealing
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The sales objectives have the need to make the planet of improvement as per the sale as foot.
There is need to have the increasing the key operational objectives which s ned to be going
forward.
Differentiation
The marketing planning the model as the helps in the determinations the product and the market
strategy in the perfect manner. This have the caper level of suggest pans of the business have the
attesting the make the proper level of growing the major level of markets to make the existing
product s into the existing market. The market penetration have to be done in the product
development as their clothing with the lack of varsity along with if they can have developing
there to be competitive (Ahmed, 2016). This can have the proper level of achievement which UK
market in more controlling manner. with next t that’s the product development id tended to be
achieved by having the proper level of development of the brands with the inclusion of more IT
departments in order to make the promotion of the online shopping. In addition to that’s market
development can have the fair level of caveman by looking at new countries new customers and
can also consider entering new segment like children’s wear and teenagers to be competitive.
Marks and spencer can also diversify in food, beauty products and home appliance and get into
partnership with other retailers.
The firm have their enterprise have the try to became their cost leaders which can effectively
competes against the other forces. The application of the cost leadership strategy as this the
about there low operating cost and fees. The retail business have there main gaol in taking the
cost leadership strategy as to have the becoming there low cost firms which tends to have the low
level of economics of the scales, proprietors technology of commodities, lower level transactions
costs and effective management and other advantages. There firm have the lease the satellite
transmission, integrated global marketing data, the commodity management, logistics and
distribution, global procurement and data processing of all applications of advanced modern
information technology to significantly reduce the cost, annual savings of more than
competitors) 750 million of dollars in spending.
This will be having the following benefit to the company the cost analysis have the
identification the greatest impacts of their business cost, controlling the systematically cost.
Moving to the establishment of the alliances among the commercials enter, reducing the
procurement costs and the jointly developing the markets. This will be also benefiting the joint,
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merger, accusations, enhancing the implementers of the chain operations and the rapid level of
Esplin of operation scale. There will have helping their application of advanced technology with
proper business activities standardization, specialisation and centralization.
Acceptability
the company have the looking the current level of weakness which is due to the laces of
following the current market trends in the term of clothing line along with having no level of
customer services. The company have not sustained the level of challenges form the retailers
which are such as he like Tesco, Sainsbury, gap and Zara as do market research and follow the
current trend that is in the UK.
Feasibility
There level of combinations has the strength in the strategy with the company have been using
the level of feasible strategy by the trueing out the respective threat into the particular level of
opportunities (Strategy, 2019). The firm have the need to make the proper level of
diversifications in order to have the keeping the challenges form the competitors along with
providing the proper level of satisfaction to customer.
Sustainability
The firm have the significant level of strategy in order to have the sustainable and proper level
of the in the long terms in the mainstem the longer term of choices in order to have the proper
level of valuating the customer. The firm is looking as the Rarity, inimitability. Because
customers feel they are not getting value for their money as the competitor are offering goods for
cheaper prices, their products are not rare and can be imitated by other competitors.
RECOMMEDATION
 The current level of transparency that’s is being pursued by the firm is not considered to
be effective as the few level of changes have the need to be look in order to have the
capturing the local markets.
 The firm have the need to coop with thee new quality of products in the areas of health
and home in order to have the achievement of more level of customer satisfaction on
perfect manner.
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 The firm have the try to regions the clothing level of market by having the proper level of
rerach oriented as per the needs and demand of customer base as re current level of trends
of the UK market.
 The firm should have the clear try to have term obtaining the level of customer opinion
and feedbacks with understanding the current trends in the food and home line
appliances.
 There is the need to have the significant level of improvement in the online shoo-in
which is helpful in the reduction of cost along with better level of improvement in the
walnut if service and station in the perfect manner.
 The firm have the nee to try to make the odori level arrangement improving the customer
experience to have the proper level of lookout foyer the abusively of stock in the perect
manner.
Conclusion
From the above file it can be stated as Mark and Spencer is one of the major British
multinational retailer with headquarter in London. This organization is specialises in selling the
home items, clothing and other food products. It is another important factor that plays major role
of communicating new fashion to customers. It has been established the communication to
design as well as produce better products. The company tries to have the to have the move to
more there frozen the foods and more level of readymade products. The firm is facing the level
of challenges as the business segments with it level of competing. On the other hand, the firm
have wide area of markets with the inclusion for the virality of product available at every store
which have heled out the customer to have best of it. The customer has gaining more level of
wrong assumptions which is turning to be the busines is low direction. Poor customer service can
be enhanced by entering int the e business in an effective way.The essentials product or services
which are should by the company have not any level of pressure for the substitutions, on the
other hand the business model average need to be overall level of substitution. Its part of Mark
and Spencer to attract, motivate and retain high calibre workforce to assist the transformation of
the business and deliver improved performance.
. In addition to that’s market development can have the fair level of caveman by looking at new
countries new customers and can also consider entering new segment like children’s wear and
teenagers to be competitive
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REFERENCES
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Loyalty: Marks and Spencer PLC?. Case Studies in Business and Management, 3(1),
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Islam, K., 2016. Can Ethical Business Strategy Influence Consumers’ Buying Behavior and
Loyalty: Marks and Spencer PLC?. Case Studies in Business and Management, 3(1),
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Wilson, D., 2016. Marks & Spencer: the quest to master the new millennium. The Business &
Management Collection.
Bernon, M., 2018. Sustainable supply chains: Marks & Spencer’s Plan A. The Business &
Management Collection.
Toda, Y. and Dawson, J., 2017. Marks and Spencer’s CSR Approach to Promotion of Healthy
Eating. Explorations in Globalization and Glocalization: Marketing History through the
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Chen, R., Chang, J.H. and Chen, H.Y., 2017. Journal of Asian Business Strategy. Journal of
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Tomlin, B., 2018. Intel: a case study in capacity planning and strategy. The Business &
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al Habibi, B., 2019. HR practices of Marks & Spencer, Selfridges, Primark, and Sainsbury’s
(Doctoral dissertation, University of Science & Technology).
Ahmed, U., 2016. Marks & Spencer: A Global Expansion to Acquire Lost Momentum?. In
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Strategy, B., 2019. Business Strategy.
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