Macro Environments Analysis of Marks and Spencer

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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