Business Strategy Report: Admiral Sportswear Analysis and Plan

This report provides a comprehensive business strategy analysis for Admiral Sportswear, examining both internal and external factors influencing its performance. It begins with an introduction to business strategy and its application to Marks & Spencer (M&S), followed by a PESTLE analysis to assess the macro-environment's impact. The report then delves into internal analysis using SWOT and VRIO frameworks to evaluate M&S's strengths, weaknesses, opportunities, and threats, as well as its resources and capabilities. Porter's Five Forces analysis is employed to understand market competition. The report culminates in strategic recommendations, including the implementation of a strategic management plan with tangible objectives. The analysis includes a critique of information and data to produce strategic directions, objectives, and tactical actions, concluding with a summary of findings and references.

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK1.............................................................................................................................................1
P1: Analyse external factor's impacts and influence on Admiral Sportswear and its strategies.1
M1: Critically analyse the macro environment to determine and inform strategic management
decisions......................................................................................................................................3
TASK2.............................................................................................................................................4
P2: Provide internal analysis of respective organisation based on capacities.............................4
M2: Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set..........................................................6
TASK3.............................................................................................................................................6
P3: Consider porter's five forces analysis in order to find out market competition in context of
M&S............................................................................................................................................6
M3: Devise appropriate strategies to improve competitive edge and market position based on
the outcomes................................................................................................................................8
TASK4 ............................................................................................................................................8
P4: Implement concept of business strategies and strategic business plan of M&S...................8
M4: Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives.....................................................................................................................................9
D1: Critique and interpret information and data applying environmental and competitive
analysis to produce a set of valid strategic directions, objectives and tactical actions.............10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is considered as collecting all decisions and activities applied by
corporate and organisational entity so as to obtain business objectives and goals in effective and
efficient manner in order to protect and secure existing position of firm as well helps in
successful operation of firm as ensures future growth (Aldea, Iacob and Quartel, 2018).
Marks & Spencer is known as biggest multinational clothing brand based on Britain. The
brand was originally developed in 1884 at London, UK. It is growing brand with huge brand
image as it offers clothing, home accessories and food products and services with its own label.
This report is based on business strategy for Admiral Sportswear with considering of
external and internal environmental analysis that has prominent impact over business
performance. Furthermore competitive analysis of respective firm are also considered within
report so as to analyse competition and build effective strategy to take advantages over rivalries.
Additionally different concepts and models regarding business strategies and strategic business
plan is consist within the report so as to develop future sustainability and growth of business.
TASK1
P1: Analyse external factor's impacts and influence on Admiral Sportswear and its strategies.
Strategy is refers as the action of managers acquire to attain organisational goals , it gives
general direction to business organisation or company based on several components in order to
achieve desired or estimated stage in future (Strategy – Definition, 2020). In terms of respective
organisation the vision and mission of is “To offer standards based on customer satisfaction”. the
objectives of firm is to deliver measurable value to its customers, partners and investors through
effective quality, innovations, value services so as to build trust among users (Antamoshkina and
Zinina, 2019). In context of analysing impacts of external analysis of respective firm are
considered as follows:
PESTLE Analysis: It refers as the framework that helps to analyse key factors that influencing
organisation's performance and productivity from external side. It is important for business
organisations to analyse factors of macro environment that provide insights for professionals
towards external elements that impacts organisation. In context of M&S following are the factors
of pestle analysis that impacts its functioning and performance:
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Political: Elements consists within political factor of pestle analysis that impacts respective
organisation are discussed below:
Free trade: One of the most positive impact of modern politics is free trade that impacts
respective firm's position and competitive ability. M&S is mainly operated in United Kingdom
and also in different countries that influenced great benefits for it in terms of free trade that
allows firm to import foreign products to sell them in their own stores at lesser prices that leads
to maintain effective profit for firm.
Brexit: As per Brexit UK decides to leave European Union is reflects as political factor
that impacts operations of M&S in broader ways. This will creates negative impact over
respective organisation. For instance losses of trade policies with European suppliers results in
higher cost of products cost for end users.
Economical: This reflects as how economic conditions of a nation impacts affects business of
M&S are considered as follows:
Fiscal & monetary policies: UK's fiscal and monetary policies are probably managed as
strong finance of government that successfully maintains low rate of inflation within nation.
Thus in terms of respective organisation it impacts positively as it results in profit increments of
firm.
Discount competitors of M&S: Prices is reflects as an big issue within retail industry.
Long lasting reputation and image of M&S had unfortunate consequence , consumers are began
to associate M&S with past.
Social: This is related with values, beliefs and habits of people of society that affects business
organisations in terms of operation. With respect to M&S theses factors are consist as follows:
Non-trendy: Marks and Spencer is not a new name within retail sector of United
Kingdom. With having been around since 1800s , the retail chain is household name for young
customers within industry. Thus new and trendy retail chains pop up every year that reflects
reputation of Marks & Spencer in less trending brand in front of young customers (Anwar and
Hasnu, 2016).
Ready meals sector: From last few years, society has been changed in consumption of
ready meals that are more powerful aspect to attract than thanks to advance in technology. This
reflects huge opportunities in context of Marks and Spencer in food store.
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Technological: Another important factor that affects M&S position in significant ways based on
consideration of technological advancements of firm are discussed as follows:
Self-checkout:Modern industry wide trends designed to help retailers to save money that
might be spent on cashiers, simultaneously offering checkout experience of customers that is
usually faster. Marks and Spencer already applied a number of self checkout services system
across the world that reflects impressive impacts of technological advancements on operation b
of respective organisation.
Online shopping: Marks and Spencer uses digital technology in its production,
distribution, marketing & distribution of goods and products to end users in effective manner.
This reflects positive impacts over M&S position in positive ways which results in higher
customer base and market share of firm.
Legal: Marks and Spencer constantly conducted training sessions on the areas for instance health
and update employees in every single year so as to keep themselves updated with current laws
and legislations. Thus continuous renovation of M&S as per the requirement of situation leads to
positive impacts of legal factor of pestle analysis. This will result in constant operation of
respective business based on changes in legal policies of firm (Baraibar‐Diez, Odriozola and
Fernández Sánchez, 2017).
Environmental: In context of environmental factor of external analysis Marks and Spencer
becomes more sustainable retailer on numerous occasions. It has their own green policy that
impacts environment in significant beneficial manner so that ensures environmental safety and
pollution free of nation. Thus environmental policies of respective organisation leads to positive
impacts overs firm's position.
M1: Critically analyse the macro environment to determine and inform strategic management
decisions.
As per above consideration it is observed that macro environment has immense impact
over respective organisation's performance. The positive impacts of external environment over
M&S position includes opportunities to sustain huge brand image within industry due to
consideration of essential factors within organisational policies and procedures. It reflects
positive impacts over firm due to effective relationships with customers and immense
contribution in economic & environmental growth of nation that ensures firms position within
existing market as well as future sustainability (Cubas‐Díaz and Martinez Sedano, 2018).
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TASK2
P2: Provide internal analysis of respective organisation based on capacities.
Internal analysis reflects as factors insight of the organisation like employees, structure,
rules & policies, capabilities that affects business performance as well as market position. In
context of Marks and Spencer internal analysis are as follows based on different methods:
SWOT Analysis
Strength
 Strong e-commerce infrastructure of
M&S reflects business strength.
 Strong offering in wide variety based
on industry trend and demands.
 Greatest corporate social responsibility
that strengthen business position
towards sustainability. More focus on rising customer
experience.
Weakness
 Frequency in products leads to losing
confidence of customers.
 Financial performance of Marks and
Spencer are seen as poor.
 Less attracting in terms of food
products as customers are more likely
to have frequent ready meals (Habib
and Hasan, 2017).
Opportunities
 Successful global presence of
respective firm leads to sustainable
growth of firm in significant manner.
 Online presence of firm bolster its
market position. Company reshaping their clothing
segment that bring future opportunities
(Hart, Sharma and Halme, 2016).
Threats
 Marks and Spencer faces stiff
competition in food sector of UK that
reflects threats for future sustainability.
 Changing trends of young customers in
clothing that brings threats for business
position of M&S.
VRIO Analysis
It consist as the method of analysing impacts of internal factors and capabilities of firm
towards effective management of organisation's resources so as to make effective position within
market that has prominent impact over firm's position. In context of Marks and Spencer
resources are categorised in following ways:
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RESOURCES VALUABLE RARE INIMITABLE ORGANISABLE COMPETITIVE
ADVANTAGE
Brand
Image
Brand
reputation - - -
Temporary
Competitive
Advantage
Goods
Quality
Goods
Quality
Goods
Quality - -
Temporary
Competitive
Advantage
Innovation
Capabilities
Innovation
Capability
Innovation
Capability
Innovation
Capability
Sustainable
Competitive
Advantage
Human
Resources
Human
Resources
Human
Resources
Human
Resources
Human
Resources
Potential
Competitive
Advantage
Valuable resources: These are reflects as the resources that has significant role in terms of
rising market share and productivity of firm. Resources are called valuable when organisation
effectively compliment their business strategies that are important and holds prestige of firm. In
terms of respective organisation brand reputation is considered as valuable as per VRIO analysis
of it. Due to effective global presence of Marks and Spencer helps it to enhance global image and
goodwill of firm that reflects prestige of firm. Other valuable resources of firms are includes
innovation capabilities and trained human resources of business. For instance e-commerce
presence of firm (Leischnig, Woelfl and Ivens, 2016).
Rare resources: These resources are consist as rare when it come to use of therm are in handle
of one or few organisation that makes there uniqueness and specification. Rare resources plays
prominent role within organisation in order to raise business capabilities and enhance
competitive benefits of firm. In terms of respective organisation brand reputation and quality of
goods considered under rare resources of firm based on VRIO analysis. Marks and Spencer
offers effective quality of goods based on enhancing customers experience reflects as rare
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resources of firm. This also indulge resources such as- innovation capabilities and human
resources of firm.
Inimitable resources: This type of resources of respective organisation refers as the resources
that are unique and specific in manner that are not easy to occupied by other player as exact
similarities. Thus it is important for business organisations to use effective and innovative
business strategies so as to enhance strong competitive position of firm within industry in order
to leads industry. Based on VRIO analysis of Marks and Spencer inimitable resources of it are
represented as firm's innovation and technological advancement capabilities and well trained
employees who posses unique skills and knowledge that gives competitive advantage for
respective firm.
Organisable resources: Last phase as per VRIO analysis of Marks and Spencer consist as the
resources that are not only rare, valuable, inimitable but organised at the same time that has
prominent impact over firm's position within industry. Organisable resources are those who are
controllable by organisation and management. Here organisable resources of respective firm
includes financial resources as shown by firms profitability and market shares acquired by few
firms within industry and skilled & trained employees are also comes under organisable
resources of M&S.
M2: Critically evaluate the internal environment to assess strengths and weaknesses of an
organisation’s internal capabilities, structure and skill set.
On the basis of above discussion it is observed that there are various strengths and
weaknesses reflects by internal analysis of firm. For instance global and online presence of
respective firm are reflects as business strength that affects effective operation and growth of
firm. In term of weaknesses based on lacking consumer interest within its products due to new
trends comes within industry especially in case of young customers. Above internal analysis of
respective organisation represents effective capability of firm that affects market share in
positive manner which results in higher brand reputation and smooth functioning of business
(Leonidou and et. al., 2017).
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TASK3
P3: Consider porter's five forces analysis in order to find out market competition in context of
M&S
Porter's five force analysis: It refers as the method that helps business organisations in
analysing how much competition within market that affects current position of firm as well as
future growth of business in long run (Madhushree, Kumar and Aithal, 2018). This method helps
Marks and Spencer to analyse competitive with industry & profitability of firm. Five forces that
are addressed by Porter within competitive model are explained as follows with respect to Marks
and Spencer:
Threats of new entrants:In retail sector there are high entry barriers for new entrants due
to capital investment that is high in order to enter into market based on variety of factors that
affects new entrants. For instant market research, development of goods and products,
advertising and promotional activities all are indulge in huge capital requirements etc. Marks and
Spencer is already a well establish brand with having greater brand image that is not easy for
new entrants to occupy. Thus with respect to Marks and Spencer threats of new entrants within
industry is low and doesn't impact business performance & position of respective organisation.
Threats of substitute products: M&S constant in terms of innovations to keep strong
brand position within industry to to remain strong competitive position within market in order to
meet the demand and expectations of customers. Clothing business can be set with substitutes
due to easier to copy designs and reduction in cost as similar to competitors. In terms of food
sector there is already under attack by big stores. In terms of respective organisation there are
various competitors such as- ASDA, Tesco, Sainsbury etc.
Bargaining power of buyers: In terms of bargaining power of buyers are high in food
and retail industry due to easy availability of similar goods and services at lower effective prices.
In terms of customers it is easy to switch different brand because of low cost of switching from
one brand to another brand. Marks & Spencer needs to focus on building trust and loyalty among
customers through satisfying their needs and wants. It is needed because competitors of
respective firm are also focusing on developing effective relationships with customers (Maniora,
2018).
Bargaining power of suppliers: On the basis of competitive analysis suppliers bargaining
power is low within industry because there various suppliers of raw materials. In context of
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suppliers of Marks and Spencer were primarily British in late 20s but due to competitive force it
outsource and reduce cost of weakening power suppliers. Private label focus of Marks and
Spencer power over external suppliers. As per dependency of Marks and Spencer on outsource
suppliers are quite low.
Intensity of competitive rivalry: In terms of retail industry competition is high due to
emerging business organisation coming with new and innovative ideas that meets the new trend
within industry. In terms of M&S faces intense competition form leading firm such as- Tesco,
Sainsbury that impacts respective firm in intense manner. On the other hand Marks and Spencer
build online sells, loyalty cards to members who are loyal for firm, sparks and loyalty programs
so as to strengthen its competitive position within market.
M3: Devise appropriate strategies to improve competitive edge and market position based on the
outcomes.
As per above consideration of competitive forces that impacts market position and
profitability of firm that has prominent impact over entire business operation and growth. Based
on competitive analysis of Marks and Spencer it is observed that there are several factors that
impacts respective firm in negative manner. For instance rising competition within sector, high
bargaining power of customers etc. in terms of dealing with these factors effectively M&S
should use customer relationship business strategy in order to take competitive advantages for
enhancing customer base by building effective relationship with them. This will also helps in
gaining trusts and loyalty of customers through better offerings that leads to raise profit of firm
(McAdam, Bititci and Galbraith, 2017).
TASK4
P4: Implement concept of business strategies and strategic business plan of M&S.
Porter's generic model: Market position of firm reflect as profitability of firm that reflects
effectiveness of organisation as compared to its competitors. The profitability of firm reflects as
its position within industry in terms of above or low (Navissi and et. al., 2017). In terms of
respective organisation following are the options and business strategies are used as per
requirements of situations:
Cost leadership: As per porter's generic model cost leadership is defined as the business
strategy that helps business firms to set lower costs and prices for goods and products in order to
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become effective and efficient lowest producer and manufacturer within the industry. This is
beneficial when company wants to introduce new products with aim as to enhance customers
base and sale of business. Thus cost leadership is effective business strategy that helps seller to
attract large customers and enhance sales volume of business.
Differentiation: Another signifiant approach or business strategy as per the porter's
generic model is making goods and products unique and specific so as to gain competitive
advantages over rivalries. This strategy helps manufacturers and producers to attain higher prices
over products and services through better offering. Differentiation is important business strategy
which results in higher profits and market share of business and also promotes prominent impact
over firm in terms of attaining competitive advantages (Soltanizadeh and et. al., 2016).
Focus: This business strategy is shifts firm's concentration whether on cost
differentiation to make lower price or on making product different from other players within
industry.
Although above method of business strategies it is recommended for Marks and Spencer
to focus on differentiation business strategy so as to make effective application of business
activities and strengthen firm's position in order to fight rising competition. This will result in
higher profits and increasing market hare of M&S.
M4: Produce a strategic management plan that has tangible and tactical strategic priorities and
objectives.
Strategic business plan
Vision& mission: In terms of Marks and Spencer the vision and mission of firm is to standardise
everyone's life through effective and better quality of goods and services at affordable prices
with considering of values and desires of customers.
Objectives: In terms of establishing differentiate business strategy the main objective of
respective firm is to raise market share of firm at 10% with profit increment as about 8% need
for successful future growth and business sustainability (Suoniemi and et. al., 2020).
Customers: In terms of above business strategy the target customers of respective firm are
considered as male and female customers who have trendy buying habits and who prefer simple
and classy lifestyles.
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Resources: Based on product and services differentiation as per business strategy chosen by
respective organisation in order to make affective implementation of strategy required resources
includes raw materials, machinery and equipments.
Finance: in terms of successful implementation of above business strategy respective firm needs
40% of internal funds and 60% fund from external sources available within market for instance
bank loans, crowd funding etc.(Yuliansyah, Gurd and Mohamed, 2017).
Risk plan: It is also important to find out the availability of risk within implementation of
successful business strategy that has prominent impact based on correction of risks in order to
make plan effective. Risk may includes lack of finance, unacceptable of customers etc.
D1: Critique and interpret information and data applying environmental and competitive analysis
to produce a set of valid strategic directions, objectives and tactical actions.
Although above discussion it is observed that there are various human and financial
resources are required in order to make effective implementation of business strategy chosen on
the basis of above consideration of different tools and techniques used within organisation.
Above business plan helps in effective operation and functioning of respective organisation
which results in higher profits and market shares. This helps to make effective growth of
business based on future sustainability (Zakaria, Hashim and Ahmad, 2016).
CONCLUSION
Based on above report it is concluded that there are different factors of external
environment that impacts position of a firm in positive or negative ways. Thus it is important to
analyse influence of these factors within organisational context. Further swot analysis and VRIO
analysis is also used to evaluate internal capabilities and factors that impacts insight of
organisation. Moreover competitive analysis also considered within report in order to make
effective position within industry so as to take competitive advantages over rivalries. At last
business strategic concept and suitable business strategic plan. This will leads to enhancement of
market share as well as profit of firm.
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