Strategic Business Report: Analyzing Marks & Spencer Environment

This report provides a detailed analysis of Marks and Spencer's business strategy, focusing on the impact of the macro and micro environments. It utilizes frameworks such as PESTLE, SWOT, Ansoff Matrix, and Stakeholder Analysis to evaluate the external and internal factors influencing the organization. The report examines political, economic, social, technological, legal, and environmental factors, as well as the company's strengths, weaknesses, opportunities, and threats. Furthermore, it applies Porter's Five Forces to assess the competitive landscape and devises strategic planning using various models and theories, offering insights into how Marks and Spencer can optimize resource allocation, enhance customer experience, and achieve sustainable growth in a dynamic market environment.

Business strategy

Table of Contents
INTRODUCTION............................................................................................................................3
TASK 1............................................................................................................................................3
P1. For analysing the impact and influence of macro environment on the organizational
environment with the application of Frameworks.......................................................................3
TASK 2............................................................................................................................................8
P2. By utilizing various frameworks for the analysis of the internal environment and its
capabilities...................................................................................................................................8
TASK 3 .........................................................................................................................................10
P3 Application of the Porter five forces for evaluating the organisation competitive force....10
TASK 4..........................................................................................................................................11
P4/D1 Devise strategic planning using range of models, concepts and theories......................11
CONCLUSION..............................................................................................................................13
REFERENCES...............................................................................................................................14

INTRODUCTION
Business strategy can be related to the term which consider those means, with the help of
which the business market can achieve its predetermined targets. It includes the company
planning where the company are engaged in functioning according to its long term planning so
that it can create the competitive level over the market. There are various prospects of the
business strategies that consider the product or services that are offered by the company, the
targeted market place, goals and ambitions which are contributing in making economical
decision making for the company in order to expand and grow the company (Ahmed, 2018). In
basic terms, for prioritizing the achievement of the goals and objective of the company, business
strategy involves assigning the organisational resources in such a way that there will be an
optimal use of it. In this report the chosen organisation is Marks and Spencer, which is a leading
British retailer and have expertise in clothing, home décor and food. It is originated in year 1884
and its head quarter is situated in UK. By using several frameworks, this report will cover
internal analysis of the organisation, external analysis with the help of several tools and models,
strategic planning and competitive evaluation.
TASK 1
P1. For analysing the impact and influence of macro environment on the organizational
environment with the application of Frameworks.
The factor which are outside the business and has a major impact on the business
operations are considered as external environment of the business. This are divided into two parts
which are micro and macro environment. Those which have direct influence on the company are
included in the former and those which are beyond the control of the businesses are considered as
latter.
Macro environment are made from several external factors. It impacts the business in
such a manner that after analysing the external factor the decision of the organisation are taken.
In context to the Marks and Spencer, several frameworks or models are discussed below through
which external environment can be analysed (Moheimany, 2021). With the help of this
frameworks the company can make such decisions which will help the company in planning it
plan of action in such a way that it lowers the impact of external environmental factors.

PESTLE Analysis
For identification of the macro environmental factor which have a major influence on the
decision making of the business, this tool or model are many used. With the reference to Marks
and Spencer, the discussion are below :- Political- The factor included in this are government stability, involvement of the
government in the business market and many other. The free trade which has been
created between several countries has a good influence on the Marks and Spencer. With
the help of these organization can import the foreign products with the purpose of its sale
in a cheap price so that a healthy profit margin can be maintained (Bojorquez-Velazquez
and et.al., 2022). Economic- Factors like inflation rate, employment rates, foreign exchange currency and
several more are included in this factor. In context to Marks and Spencer, there is a big
competition in the retail industry where one of the major factor is Price. The company has
decided to use the foreign supplies in order to provide the customers with products of
cheaper rate for getting the competitive advantage in the business market. Social- Factor which affect the customer and the society are included in this. Marks and
Spencer have a dominant position in the market which has huge demand of ready meals
and Marks and Spencer are fulfilling this demand which helping it in retaining the loyalty
towards the customer base. Technological- It consider the adaptation of the technology into the business. In context
to the Marks and Spencer, the various technology means are used for giving enhanced
experiences to the customer. It has established a dominant presence in the e-commerce
industry by providing the experience of online shopping to the consumers. The self
service system is also implemented by this organization in order to provide the easiness to
customer while shopping (Agnihotri and Bhattacharya, 2022). Legal- It is related to the Cooperation with the rules and regulation of the government.
Due to its financial dispute with the frascati landlord, the organization Marks and Spencer
has been in the highlight which affected its brand image. This non-compliance affected its
brand value in the market.

 Environment- Ecology aspects are included in it. Marks and Spencer have turned to get a
sustainable retailer, so that it can add in protecting the environment. It pledged to become
the sustainable retailer on many occasions so as to maintain its brand image.
SWOT Analysis
It is a tool that are utilized for evaluating the internal and external analysis of the
organization which consider its strengths, opportunity, threats and weakness. In context to Marks
and Spenser, details are discussed below :-
STRENGTH WEAKNESS
 The powerful presence of Marks and
Spencer at the e-commerce platform
bring it a better strength and facilitates
it in enhancing the sales of the
company. The customer desired to buy
from the online platform which helps
the company in enhancing its sales
number and net income (Petrauskas and
et.al., 2018).
 Another plus point for the company is
that it forms impelling steps to
accomplish its corporate social
obligations. By making optimum
utilization of the resources and having
minimum wastage of it, makes the
business sustainable.
 Marks and Spencer focuses on
enhancing the customer experience by
distributing such services in its system.
It usage technology such as self-service
checkout system thus provided enhance
customer experience.
 Marks and Spencer relies too much on
the UK market which affects its growth
and this is the biggest weakness of
these organization. There will be huge
impact on the business when market
condition of the local market cannot
support the business.
 Due to its poor return policy and in
store experience, the company lacks in
providing satisfaction to the customers.
 Marks and Spencer is dealing with
many issues in delivering its products
globally during online dealing due to
their poor scalability.

OPPORTUNITIES THREAT
 The major opportunity for Marks and
Spencer can be to introduce a different
portions that may pull in the
consumers. For example, it may initiate
traditional or cultural wear in Asia
where there is high demand of all these.
 Make modifications in its clothing
section by presenting brand-new things
to the customer according to the fashion
so that the customers are drawn towards
the company which could enhance its
sale. This can be consider as another
opportunity.
 By initiating e-commerce platform, by
improving its website and proper
execution for delivery to the customers
across the globe. Marks and Spencer
can expand its global presence in other
countries.
 There are end number of companies
across the UK and other countries that
deals in retail industry and clothing
segment thus creating a challenging
environment which is the biggest threat.
 With changing fashion the company has
to change its all collection in order to
retain its consumers. Thus changing
trends in fashion and clothing is another
threat for the organisation (Kaushik,
2018).
 The post Brexit effect is other threat for
Marks and Spencer as it may impact its
worldwide dealings due to unpredicted
alteration in the rules and regulations of
cross border commercialism.
Ansoff matrix
The company uses this Frameworks to expand and grow their business in the business
market. It comprises of four types of strategies which can be adopted by the
organization for the expansion of their operations. In context to Marks and Spencer, the
discussion are:- Market penetration:- In this plan of action, the company focuses on the pre-existing
market so as to increase the sales. For attracting the more costumer in the existing market
with the existing market conditions, Mark and Spenser can use this strategies. Product development:- this plan of action includes the introduction of brand new things
in the existing market so as to add a new customer segments. Mark and Spencer can

utilise this technique to provide something new to the customers and retaining the
existing customers and attracting the new potential customers. Market development:- the plan of action includes the taking of pre-existing goods and
services to the new market so as to expand the business. By introducing its existing
offering to a completely new market so as to attract the completely new segments of
consumers Marks and Spencer can use this plan of action.
 Diversification:- This plan of action is a completely different from others because the
organisation is offering a new offering to new market place. For Marks and Spencer, this
plan of action is risky because it involves bringing new product to the new market place
(Sudharshan, 2019).
Stakeholder analysis
For the success and growth of an organisation, various personnel are involved, and forb
the satisfaction of them It is necessary to analyse over this personnel. The power interest grid is
used for analysing the stakeholder which categorize them into four categories based on their
interest and power into the organization. In relation to Marks and Spencer, the discussion are as
under :- High power high interest- Stakeholder of this categories required to be managed closely.
All the top level Management and owner of Marks and Spencer are under this category
so this requires a greatest effort in making them satisfied by providing them with
excessive information about the organizational working (Yuen and et.al., 2020). High power less interest- The personnel department that are enclosed in this category are
those which are requisite to be kept satisfied by the organization. Marks and Spencer
must assure that the worker of the organisation are render with sufficient data so that they
are kept satisfied while working of the business. They are enclosed in this category due to
reason that they have less interest but have high power in the system. Less power high interest- The personnel which are required to be kept informed because
they may be helpful with the details in any project are the stakeholder which are included
in this category. The customers included in this category are very important for Marks
and Spencer due to their high interest in the organization so it is important to keep them
informed with limited information.

 Low power low interest- The personnel that are included in this category are suppliers
and government which are required to be monitored. The suppliers and government of
Marks and Spencer have low interest and power thus they must not be rendered with
excessive information instead they must be monitored on a regular basis in order to check
smooth moving of the business organisation (Pirozzi, 2019).
TASK 2
P2. By utilizing various frameworks for the analysis of the internal environment and its
capabilities
Many elements are composed under the internal environment of the business, which are
employees, management and the culture of the organization which depicts the behaviour of the
employee. Those thing which the company does like delivering effective customer service or
making innovational products so that a value is created are considered as internal capabilities of
the organisation. Analysis over the internal capabilities is very important for the business so that
it can effectively utilize the resources with minimal wastage. It helps in allotment and
prioritization of the resources so that the system can take competitive benefits. In relation to the
Mark and Spencer, several models and theories are available for analysing the internal
environment and capabilities. The discussions are below :-
Resource based view
For the functioning, there are several resources for each business are utilized. This
includes tangible as well as intangible one also. This approach provides an perception that every
resources is not equally important, instead they should be used in such a manner that they can
provide competitive benefits to the business organization (Barney, 2018).
VRIO Analysis
For differentiating the resources into four categories this tool or technique is used so that
the company are able to identify those resources which can provide sustainable benefits. In
relation to Marks and Spencer, the organisation has categorise its resources in following
categories so that It is easy to identify that resource which provide sustainable advantage. First is
Valuable, those resources which add value to the company are included in this. The brand image
of Marks and Spencer is a valuable resource for it in terms of social responsibility due to the
reason that it has been constituted by the exordium efforts of the company (Chen, 2021). The

system works hard to execute its corporate social responsibility so that it can add in protecting
the environment and do social welfare for the community. Next is Rare, the resource which are
very rare for the business are included in this. The international existence of Marks and Spencer
is a rare resource for organisation as it helps in creating a high income to the company. Another
one is Inimitable which includes those resources which are very expensive and challenging for
the organization or competitor to re-create or imitate it (Rosa, Bento and Teotónio, 2022). The
company takes large time in producing its product, so the quality of the offering product which
is offered to the customer is incomparable so that the standard quality is produced. It ensures the
repeat buy from the consumer so that they are maintained into the organization.
McKinsey 7s model
The seven internal elements of the organisation are shown in this framework which are
factored together to accomplish adequacy by the organisation. This elements are providing high
efficacy and are interconnected to each other. In context to Marks and Spenser, it is discussed
below. The first element is shared value which comprises of the core value of the company
which reflects the work ethics and culture. Marks and Spencer have Centred their Value in the
customers where the company is building trust and respect and making regular efforts to enhance
customer experience (Silva, Ribeiro and Sousa, 2021). Next one is Strategy which is a plan for
the company Which helps in maintaining the competitive advantages. Marks and Spencer
concentrate on distinguishing the products of clothing so that it can spread out. Third one is
System which includes the daily activities of the organisation which is utilized to get the work
done. Marks and Spencer focus on its international enlargement by devolving diverse schemes
such as quality control, pricing and discounts, execution evaluation and many others. Fourth one
is Structure which consist of the mode in which the working of the business organisation
divided. Marks and Spencer precedes the flat organizational structure in which there are limited
management levels. The employees are motivated to take part in decision making and have direct
connection with the administration. Fifth one is Staff which includes the number of manpower
working into the organization. Marks and Spencer has more or less 78,000 employees in its
working and each of them contributes in the development and success of the organization. Sixth
one is Skills which is concerned with the knowledge and competency of the workforce. Marks
and Spencer is involved in recruiting the talented and proficient manpower including designers
so that it can accomplish the demands of consumers. It also give regular education to the

employees so that their skills efficiencies enhanced. Last one is Style which is connected with the
leading activity and management style native to the organisation (Helmold, 2019). The
democratic style of leadership is followed by the Marks and Spencer which includes the man
power in decision making and discussion. This style respects the opinion of the employees and
plan the action accordingly.
TASK 3
P3 Application of the Porter five forces for evaluating the organisation competitive force.
This is used to evaluate the Competitive environment of the organisation where it
generally operates. With the help of this analysis model the organisation will able to understand
the competitive environment and how it can maintain the profitability at various stages (Aldea,
Iacob and Quartel, 2018). IN relation to Marks and Spencer, the discussion are below :- Threat of new entrants- It consider the capacity of the new company to enter into the
industry and compete with the existing one. The power of this force is depressed for
Marks and Spencer due to the reason that there are high obstruction for entry due to vast
capital investments. The competition is hard because of the popularity of Marks and
Spencer and its concentration on quality, therefore results in difficulty to detached the
loyal customers of the system. It is challenging for the new businesses to threaten the
market position of M&S as they have positioned themselves effectively into the market
so this form the power of this force low for M&S. Threat of substitute products- It consider the accessibility of secondary offering for the
organization. In relation to Marks and Spencer, the power of this force is moderate
because the substitutes are easily available of the product which the retail industry
consists so Marks and Spencer must continuously innovate for keeping its brand position
powerful. It is very easy to re-create the designs of clothing and trade it at low cost. So
this features more danger on the organization. Bargaining power of buyers- It considers the ability of acquisition to drive the price low.
The ability of this force for Marks and Spencer is high because there is very less shifting
cost for consumers and availability of secondary which pressurise the company to have
low prices. Nowadays, there are many alternative for the consumers are available for the

goods in which M&S is handling so the negotiation quality of consumers is advanced due
to huge competitors in the market such as Burberry, etc. Bargaining power of suppliers- It is the power of suppliers to drive the price high. This
force is low for Marks and Spencer because it has British suppliers but the pressure form
rival constrained the company to trim its cost and source it which lessened the supplier’s
power.
 Competitive rivalry- It is the number of competitors and their power to jeopardize the
market position of the organization. This force for Marks and Spencer is high because
there are very strong contest in the retail industry and the online initiation have jolted the
market orientation of Marks and Spencer. The organization has to continuously carry new
offers for holding the customers.
TASK 4
P4/D1 Devise strategic planning using range of models, concepts and theories.
The process which includes documentation and constitution of the direction in the
business by assessing the contemporary and future position of company is referred as Strategic
planning. It help the organisation to arrange the long term goal and action plan so that it easy to
take over the competitive corner over others. M&S can use several models to strategies and fight
with competitors. The discussion are below:-
Porter's generic strategy
It is used in deciding the market position of industry. It consist of 3 methods by which
Marks and Spencer can strategies in order to position itself in the market. Cost leadership- this plan of action help the company in gaining the advantage by
reducing the costs. For becoming the market leader, the organisation should become low
cost producer. Marks and Spencer can use this to enlarge its market share by focusing the
middle class people. Differentiation- This includes bringing something fresh into the market by innovation so
that a competing asset can be built. Marks and Spencer can use this strategy to enlarge its
customer base by mainly focusing on the unique characteristic of the product (Donnelly,
Gee and Silva, 2020).

 Focus- This encourages the company to focus on the resources for expansion in the
narrow targeted portions. By this the organisation will serve the particular market and
gain its competitive advantage. Marks and Spencer can offer best value and at low cost so
that needs of the targeted market are served at the lowest price.
M&S can use this plan of action and offer innovative offering so that the more customers are
attracted.
Bowman strategic clock
This framework includes 8 strategies through which the organisation can place itself in
the competitive market (Rathore and et al., 2019). Low price- In this the organisation offers their serving at low cost. M&S can attract more
consumer from middle class in order to serve their needs with the help of this strategy. low value added and low price- this strategy involves low value offering and giving low
cost products in order to increase the sale. M&S can attract a different segment which has
low income by using this method. Differentiation- this involve offering by addition of high value. M&S introduce their
products with some new feature so that the new customer is attracted. Hybrid- It is a collection of low price and differentiation plan of action in which the
goods are offered at the competitive price and also add new value to product. M&S can
use this to increase its sales. Focus differentiation- this only focus on offering the high value in goods and services at
high price. This is not suitable for long term. Loss of market share- this plan is used when the organisation want to take exit from the
market. M&S use this plan to expand its business to new market place after leaving its
existing market. Monopoly pricing- In this the organisation take the control over the price so as to
become the price leader.
 High risk margin- This includes product and services selling at high cost without any
added value. This is risky but it will generate high profits to organisation.
M&S can utilize the differentiation technique from this strategies as it can bring innovative
things in the market and attract the more customer base.

CONCLUSION
It is concluded from this that planning the strategies for the businesses is very essential in
order to achieve the business objectives. The organisation can consider the three strategies for
retaining its position in competitive marketplace. Planning a strategy concerns analysation of
internal and external surroundings , keeping in mind the efficiency of the organization. At last, a
different framework and the strategic planning can help the organization to come through and
develop in the long term.

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