Mark and Spencer: A Comprehensive Report on Business Strategy

This report provides a detailed analysis of Mark and Spencer's business strategy, examining the impact of the macro environment using PESTLE analysis, evaluating the internal environment and capabilities through VRIO analysis and the McKinsey 7S model, and assessing the competitive landscape using Porter's Five Forces. The report also discusses theories and models for implementing a strategic plan, providing a comprehensive overview of the strategic management approaches employed by Mark and Spencer. It covers aspects such as political, economic, social, technological, legal, and environmental factors affecting the company, stakeholder analysis, resource valuation, organizational structure, and competitive positioning. Desklib offers a range of similar solved assignments and resources for students.

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1Frameworks to analyse the impact and influence of macro environment and strategies........3
TASK 2............................................................................................................................................5
P2 Internal environment and capabilities of an organisation......................................................5
TASK 3............................................................................................................................................8
P3 Porter’s five force model.......................................................................................................8
TASK 4............................................................................................................................................9
P4 Theories and models to implement a strategic plan...............................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is defined as a long term plan that is implemented for a company in
order to reach desired goals and objectives. In context with strategic management, it is involved
with the preparation and execution of all targets and certain initiatives on the behalf of
stakeholders. As the competition gets increased, the importance of business strategy got more
enhanced and led to the increment in the types of business strategies. In context with strategic
management plan, it refers to a document which is used to interact in concern with setting up
priorities, strengthen operations and assuring that all stakeholders are working towards common
goals (Ahmad and Krishnan, 2017). The report is based on Mark and Spencer which is a British
multinational retailer with headquarters in London. The company specialises in providing
clothing, food or home products. The report involves impact and influence of the macro
environment on organisation, analysation of internal environment and capabilities, Porter's five
forces model and usage of theories and models and interpretation of strategic planning.
TASK 1
P1Frameworks to analyse the impact and influence of macro environment and strategies
Mark and Spencer is a British multinational corporation which has around 900 stores
within entire United Kingdom and has a turnover of around 41 billion. The company is organised
within three divisions which are home care; clothing and food products.
 Vision: - The vision of Mark and Spencer has always been to provide a standard against
which their competitors may be measured and to take care of entire working environment
for employees.
 Mission: - The mission of Mark and Spencer is to make efficient and desired quality
accessible to everyone throughout the range of products.
 Core values: - The values are associated with quality, innovation and trust.
PESTLE Analysis: - It refers to a model of macro-environmental elements which are
used in the entire scanning element of strategic management. In context with the chosen
organisation, it is described below: -
 Political factors: - These factors are involved with the relation between both government
and business organisation (Alberti and Garrido, 2017). There are several political factors
like security control, legislation around employment, political stability and many more. In

context with Mark and Spencer, the government set up certain regulations for their
organisation like in the form of health and safety British standards and risk control. The
company always believed that it is significant for them to work closely with the
government and communicate with them in order to protect all their legitimate interests.
The two political factors which created on impact on their company was taxes and
political stability. If government increases taxes at a point of time, then the prices of
company products also get increased which created a negative impact on their business.
 Economic factors: - It refers to those factors which create an impact on the economy and
includes wages, interest rates and certain governmental activities also. In context with
Mark and Spencer, they made a strategy to provide best quality products to all the
customers but company got affected by financial crisis due to which they faced a
decrease in the demand for all their high quality goods and the main reason behind this
was the low income of consumers.
 Social factors: - These factors are involved with cultural standards, career attitudes,
population growth rates and many more. These factors are helpful for business
organisations to make better and efficient plans concerned with marketing analytics.
Consumer purchases are always influenced by social and psychological changes taking
place in the market. In present scenario, maximum number of people prefers to do the
payment with the help of credit cards. So, Mark and Spencer took the advantage and
allowed all their customers to do the payment from credit cards.
 Technological factors: - It refers to the variables which are in relation with the
development of technology. These factors includes internet connectivity, automation and
so on. In present scenario, it is very significant for a business organisation to adopt new
technologies in order to attract maximum number of customers (Buller and McEvoy,
2016). In context with Mark and Spencer, they introduced new and multiple check out
stores and also established an e-commerce store which is considered effective within
entire United Kingdom.
 Legal factors: - It refers to the legal forces which describes about what a business can do
or cannot do. These factors are involved with employment laws, intellectual property
laws, civil rights laws and many more. In relation with Mark and Spencer, they have been
involved with many legal disputes which became difficult for them to maintain their

brand image for long period of time. One of the legal factors which affected company
was changes in Britain trade laws after Brexit took place. In United Kingdom,
legislations gets changed on continuous basis on the basis of which Mark and Spencer
implements several training sessions on areas like health and safety laws which gets
updated with all the current laws and legislations.
 Environmental factors: - In context with these factors, they are involved with ecological
aspects like climate, weather, pollutants and many more. In context with Mark and
Spencer, they have always concerned about environmental effects which might affect
their brand in future (Gattorna 2017). There were several issues regarding climatic
conditions so the company established a new green policy in order to have a positive
impact on entire well-being and communities.
Stakeholder analysis: -
The stakeholders of a business organisation are the individuals who have an interest in
the company outcomes from all commercial activities. It refers to a process of identification of
all stakeholders of a company in accordance with their interests. In context with Mark and
Spencer, it is described below: -
 High power, high interest: - In context with section, all stakeholders has the capability to
influence decision making procedure and take interest in entire business activities of the
organisation. In accordance with Mark and Spencer, their biggest shareholders are
Parametric Portfolio associates and Cap financial partners (Hajiha, 2017). Besides this, it
also comes under the category of public investment fund.
 High power, low interest: - In this section, target customer base is included as individuals
carry on high power because the profit of company completely depends on them. On the
other hand
TASK 2
P2 Internal environment and capabilities of an organisation
Internal capabilities and talents of a business organisation plays a very important role in
the overall development of a company. It is essential that business strategy needs to be efficiently
get implemented after considering all the factors as they help in acquiring a effective position

and receiving a stable growth rate for a long period of time. In context with Mark and Spencer,
McKinsey 7 S model and VRIO analysis has been used.
VRIO Analysis: -
In accordance with this analysis, the information related to a company about all their
internal resources is provided and in a detailed way. There are several resources which are
divided on the basis of value, rarity, ability to exploit all resources and to get imitated in
accordance with highest capability. In context with Mark and Spencer, it is defined below: -
Resources Valuable Rare Inimitable Organized
Brand Value ✔
Technological
Infrastructure
✔ ✔
Market Presence ✔ ✔ ✔
HR ✔ ✔ ✔ ✔
 Valuable: - Mark and Spencer financial resources as well as its food products are highly
valuable which helped the company in enhancing their brand image. In context with
financial resources, it helped the company to make investment into all external
opportunities that might take place (Keung and Shen, 2017). The reason behind valuable
food products is that they are highly differentiated. Besides this, their distribution
network is also valuable which became helpful for them to reach out to maximum
number of customers. With the help of this, it became easy for the company to increase
their revenue and promotion in a more efficient way.
 Rare: - The employees working in Mark and Spencer are considered as a rare resources
because they are highly skilled and talented which doesn't take place in other
organisations. At the same point of time, the patents of their organisation are also
identified as a rare resource as they are not easily possessed by competitors.
 Imitable: - The food products of Mark and Spencer could be imitated because it doesn't
involve much cost and can be acquired from competitors if they do effective amount of
investment (Macchi, Savino and Roda, 2020). Besides this, the company employees

could also be imitated because other business organisations can also train their workers
and enhance their skills.
 Organisation: - In context with the chosen company, their distribution network is
organised enough as they uses their efficient network to reach out to all maximum
number of consumers. It helped the company in receiving leading position in entire
industry even while facing large competition.
McKinsey 7S Model: -
It refers to an organisational tool that assess the well-being and success of business
organisation in terms of their future aspects. In context with chosen company, it is described
below: -
 Strategy: - In context with Mark and Spencer, they use competitive pricing strategy for its
product portfolio (Krueger and et. al., 2021). This helps the company to enhance their
profits and achieve progression. Besides this, their flexibility provided the company to
achieve benefits with respect to all consumer patterns that gets modified globally.
 Structure: - Mark and Spencer follows organisational hierarchy which is entirely
supported by learning organisations. By following this structure, it help a company to
make quick decisions and enhance the organisational commitment within all the
employees.
 Systems: - In context of chosen organisation, they have well-defined system to assure that
the business organisation are being managed in an effective way and no kind of conflicts
takes place. Mark and Spencer analyses all their systems with the help of designed
control which is helpful for the company to provide proper services.
 Skills: - In context with the chosen company, employees are provided continuous training
that enhance their skills and lead to growth and development. All workers are recruited
based on their qualifications.
 Staff: - Mark and Spencer has adequate number of workers across all its global operations
and they are hired both internally as well as on external basis. All employees are provided
with efficient in-house training through which they get to know about the company and
all its values.
 Style: - In terms of selected company, they has a participative leadership style through
which they are able to get involved all their employees in the process of decision making

(Ransbotham and et.al, 2017). Besides this, a company is also able to increase their
workers motivation level and their commitment.
 Shared values: - In context with Mark and Spencer, their shared values are creativity,
quality, accountability through which they assure that all their activities are being
performed with high standards.
TASK 3
P3 Porter’s five force model
It is defined as a strategical framework that help an organisation to understand the
competitiveness level prevailing at marketplace. In addition to this, it describes why different
industries are able to survive at various levels of profitability. The higher authorities of Marks
and Spencer make adopted porter’s five force model in order to identify level of competition and
to develop strategies for attaining competitive edge at marketplace. This model involves five
aspects which are as follows:
 Threat of new entrants: It is analysed that the threat of new entrants for Marks and
Spencer is low as there is high capital requirement to enter in the market in which
company deals. In addition to this, the level of economies of scale and cost efficiencies
that company has is difficult to gain by new player (Drobyazko and et. al., 2019).
Therefore, it is important for respective organisation to ensure that its quality of offering
and relationship is maintained with customers as it help in keeping the threat of new
entrants’ low.
 Threat of substitutes: The threat of substitute for the company is moderate as there are
lot of competitors who offer the same product at less price. It is important for Marks and
Spencer to bring continuous innovation with in the offerings and process in order to
remain competitive and to fulfil requirements of customer as well. Moreover, it is
determined that food business of company is on attack of large stores such as Asda,
Sainsbury, Tesco and so on. This, it is vital for higher authorities of Marks and Spencer
to emphasis on offering its food line as a manner that help to attain competitive edge over
rivals.
 Bargaining power of buyers: Customers are the king of market and to retain them is
important for gaining growth and success in the industry. This threat of Marks and

Spencer is high as it offer the products which is similar to its competitors. In addition to
this, the switching cost of customers is also low and alternatives is easily available to
them (Putra and et. al., 2019). It is vital for Marks and Spencer to emphasis on customer
relationship that requires to be effective and vigilant. It help in retaining customers for
longer time period and also assist to minimise such threat as well.
 Bargaining power of suppliers: Marks and Spencer is a huge listed and renowned
company that have massive number of suppliers which shows that bargaining power of
suppliers is low for the company. In addition to this, it is analysed that company is not
highly dependent on suppliers as compare to others as it sells own branded goods and
services.
 Competitive rivalry: It is determined that industry in which Marks and Spencer deals
consist of high and strong competition, which state that Marks and Spencer has high
competitive rivalry. There are various competitors of respective organisation such as
Tesco, Asda and many more which provide similar offerings. For this, it is significant for
Marks and Spencer to offer quality products and service, bring innovation and ensure
customer service timely as it help in fighting with rivals in an effective and appropriate
manner.
TASK 4
P4 Theories and models to implement a strategic plan
Porter's generic strategies:- In terms of these generic strategies, they defines how an
organisation pursues competitive advantage within its market scope. It is involved with three
strategies which are cost leadership, differentiation and focus. In context with chosen company,
it is described below: -
 Cost leadership: - It refers to a strategy which mainly focus on decreasing the cost of
products and services in order to become more profitable and could add the value of
shareholders. In context with selected company, they used this strategy by targeting
middle class people and expanding the market share. Besides this, they also offer several
coupons in order to achieve all targets and increment of brand popularity.
 Differentiation: - It accordance with this strategy, the business focuses on distinguishing
their products from competitors (Syaniardi and Shihab, 2016). In context with chosen

company, they also positioned their products in such a way that they look unique from
other business organisations. So, the company used the way effective advertisements,
huge amount of investment in order to look different.
 Focus: - This strategy is related to satisfy all target customers who has different kinds of
needs and expectations. All business organisations can use this strategy by decreasing
costs or by creating differentiated products. In relation to Mark and Spencer, they also
focused on both offering unique products and low price. So, they constant changes in the
product designs in order to build up satisfaction level of customers and also increasing
the value for money.
Bowman's strategic clock: -
It is defined as a strategic tool that offers options in order to do positioning across the
market which is based on both value and price. It is involved with eight positions which are
further described below: -
 Low price and low added value: - This strategy is in relation with quantity selling. In
terms of this, the value of products are low and prices is lowest. In context with chosen
company, they always focus on providing premium priced products so they don't follow
this strategy.
 Low price: - It refers to the strategy which is related to have low cost margins and in
order to achieve success, a company follow the key of cost reduction (Tuan, Thanh and
Le Tuan, 2019). In context with Mark and Spencer, they always focus on high perceived
value and effective quality products so they focus on this strategy.
 Hybrid: - It is in accordance with both differentiation and low price. On the basis of this,
this strategy becomes successful as all customer gets effective quality products and at a
low priced value.
 Differentiation: - In this strategy, all business organisations focus on differentiating their
goods from other competitors. In context with chosen company, they distinguished their
products by enhancing women clothings and kids wear.
 Focused differentiation: - It refers to providing high value at high price through which
innovative products are offered to all customers (Yuan, Cheng and Ye, 2016). In context
with Mark and Spencer, they also implemented premium priced products and with high
profit margins.

 Risky high margins: - For a business organisation, it is a threat for them as products are
offered at high price and no value is provided to consumers due to which sales of
company gets decreased.
 Monopoly pricing: - The organisations who follow this strategy, they only controls both
their products and pricing due to absence of competition.
 Loss of market share: - In accordance with this position, it is considered effective for
those products which has low additional value as it may result into loss of market share.
CONCLUSION
From the above report it has been concluded that, in order to set up a good marketing
strategy it is important to properly determine all the internal as well as external factors which
could influence the profitability of an organisation. On the basis of this, the effective method
which is considered is following the way of Pestle analysis. Besides this, by implementing
Porter's forces model, the organisation gets effective information regarding their position in the
marketplace.
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