Business Strategy Evaluation: Marks & Spencer (M&S) Case Study Report

This report provides a comprehensive analysis of Marks & Spencer's business strategy. It begins by examining the influence of the macro-environment through PESTLE analysis and then proceeds to assess the internal environment using the McKinsey 7S model, value chain analysis, and the VRIO framework. The report also includes a stakeholder analysis to understand the impact of various stakeholders on M&S's operations. Furthermore, Porter's Five Forces model is applied to evaluate the competitive landscape. Finally, the Ansoff Matrix is used to explore growth strategies, providing a well-rounded view of M&S's strategic approach and its application of various business theories and models. This report offers valuable insights into the strategic management practices of a major retail organization.

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Examine the influence and impact of macro environment.....................................................3
Stakeholder analysis...............................................................................................................4
TASK 2............................................................................................................................................8
Access internal environment of an organisation....................................................................8
McKinsey 7s model................................................................................................................8
Value Chain analysis..............................................................................................................9
VRIO MODEL:....................................................................................................................11
TASK 3..........................................................................................................................................13
Evaluate and apply porters five force model........................................................................13
Porter's Five Force Model:...................................................................................................13
TASK 4..........................................................................................................................................15
Application of theories and models......................................................................................15
Ansoff Matrix.......................................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
Books and journals...............................................................................................................17

INTRODUCTION
Business strategy define as set of different activities and decisions which assist an
individual person to gain their organisational goals. Main focus of a business organisation is to
attract huge amount of consumers towards the business entity by creating various strategies and
policies (Johnson 2016). In the current project, M&S is the base organisation which was
founded in the year 1884. Founder of the company is Michael Marks & Thomas Spencer and its
headquarter is located in London, UK. In this report, influence of macro environment has been
examined for which PESTLE analysis is going to be discussed. Along with this for internal
capabilities & environment SWOT as well as VRIO analysis are examined in a detail manner so
that the strategies will be formulated in an appropriate way. In addition to this, Porter Five Force
model is also included in this report so that the overall analysis of the industry will be done in an
effective manner.
TASK 1
Examine the influence and impact of macro environment
For every organisation, for maintaining long term growth & success at the marketplace, it
is quite necessary to study the macro environmental elements. With the assistance of this,
executives of the business entity will identify the impact and influence of all the external factors
on the functioning of organisation (Akter and et. al., 2016). It is very vital for the directors to
examine their mission, objectives, vision, strategies and many other factors which leads towards
the success of an organisation.
Mission statement: Marks & Spencer mission is to make aspirational quality which can
easily be accessible to every person, through the extent and wide range of is goods and services.

Vision statement: In context of vision statement, they want to be the benchmark or
standard against which different organisations are going to be measures.
Objectives of Marks & Spencer: Organisational objective is to make sure to maintain the
sustainability of business entity at the marketplace:
 To be the biggest fashion industry across the whole wide world. To improve the growth rate by doing business expansion at different international
marketplace.
Define strategy: It has been said that strategy define as the course of activities which is
undertaken by the management team of an organisation for attaining long term organisational
objectives effectively. Furthermore, strategy refers to the path of individual towards
accomplishment of pre define task.
The role of strategy to achieve business objectives: Strategies play very essential role in
the improvement and evolution of corporate entity at the marketplace. With the aid of effective
strategies, managers can accomplish their objectives & goals within given time frame and in
effective manner (Aithal, 2016). Strategies help in attaining objectives in an effective manner as
employees have clear roles and objectives working within Marks & Spencer.
Stakeholder analysis
Stakeholders are considered as the most essential and very crucial element of an
organisation who have the right and power to contribute in every decision making activity of the
company. Apart from this, they have the ability to influence the overall operations of a business
entity. For this, a stakeholder analysis matrix is used which is a strategic framework categorised
stakeholders according to the power and interest taken by them in the business functionality. In
this context, external stakeholders as well as their influence on the working of Marks & Spencer
are going to be discussed as follows:
Stakeholder Influence on Marks & Spencer
Customers It is said that consumers are one of the most essential and element for any
business entities as the whole success of organisation mainly depend on
them. It is essential for the managers of Marks & Spencer to perform their
business functions in such a manner that they can satisfy the needs and

wants of consumers. If Marks & Spencer does not satisfy the requirements
of customers, then they will be out-powered by their competitors available
at the marketplace (Akter and et. al., 2016).
Suppliers Suppliers define as the people who deliver required resources and
materials to the business entity so that they can operate their
organisational activities effectively. In reference to Marks & Spencer,
suppliers of the company wants that the management team made payments
within given time frame while they provide materials on credit.
Trade unions In context of M&S, it is said that the primary focus of trade union is to
create high wages as well as create healthy working atmosphere to their
staff members so they can produce high quality goods and services in an
effective way.
Local
communities
All the business activities performed by Marks & Spencer have essential
influence over the local communities as well as they desire to perform all
the functions in such manner that they can develop the overall society and
business environment (Bull and et. al., 2016).
Governments The Government of UK develop strategies, policies and laws which needs
to be considered by the management team of Marks & Spencer so they can
maintain long term sustainability at the competitive marketplace.

High power, high interest
All the investors who belongs to this section are the management team and owners of the
company. In this group the strategy which is adopted by them is to manage them to become more
close.
High power, low interest
In this type of section, these are the stakeholders mainly belongs to the administration &
trade unions. In this strategy adopted by Marks & Spencer is to manage them in order to keep
their needs and wants satisfied (Chatzoglou and et. al., 2018).
Low power, high interest
In reference to Marks & Spencer, it is said that it includes all those individuals who have
low control but high curiosity in the business functions of organisation. It includes investors such
Illustration 1: STAKEHOLDER MATRIX

as suppliers & customers and strategy adopted by the top management team of M&S in order to
keep them satisfied is that they provide all the information and data to them which is needed by
them.
Low power, low interest
At the end, it has been said that it includes all those stakeholder who have low power as
well as interest in the overall business operations of Marks & Spencer. It includes local
communities and strategy adopted by them is to examine and monitor all the work on a regular
basis so their interest can be develop (Dawes, 2018).
(Source: Self Generated)
Benchmarking
Benchmarking refers to a process of examining the performance of an organisation's
product, process or service against another business which is considered as one of the best
company in the sector. The main aim behind this process is to examine the internal opportunities
for further improvement (Johnson, 2016). In reference to M&S, it has been analysed that the
managers of this organisation adopt this method in order to examine different internal
Illustration 2: Stakeholder Analysis Matrix of Marks and Spencer

capabilities. Benchmarking provide external perspective on the sustainable performance as well
as transparency. It will assist in improving both in an effective manner.
TASK 2
Access internal environment of an organisation
For every business manager, it is very essential to examine internal environment and
capabilities so that they can effectively develop strategies and policies according to the
requirements.
McKinsey 7s model
It refers to a framework which help in presenting a linkage among seven different
elements of a company which assist in enhancing the efficiency and effectiveness of the
organisation. All the seven elements are going to be discussed as follows which are in context of
Marks & Spencer:-
Strategy: This component is used as a method which is used by the business organisation
as an essential portion of strategical planning which assist in accomplishing organisational goals
in an appropriate way. Marks & Spencer implement ample number of strategies with the help of
Balanced Scoreboard method so they can accomplish goals within given period of time and in
effective manner (Leonidou and et. al., 2017).
Shared Value: It is the factor which includes the basic values, thoughts and belief
which is shared by an organisation. Marks & Spencer believes in improving its sophisticated or
difficult management techniques. This will assist them in enhancing their values at greater
extend.
Structure: This is the another essential element which is highly based on the hierarchy
of the organisation. In this context of Marks & Spencer, head of the organisation thinks that
company requires capable staff members along with a well experienced leader so they can work
as a team from top to bottom structure to attain goals as well as objectives in an appropriate way.
Staff: It includes the total number of staff members work in the organisation for
attaining goals of the business entity. In the present case of M&S, total number of employees
working within the business entity across the whole wide world is around 80,000.

System: This is the factor which mainly places down the way or process on the basis of
which business relies in order to carry out their regular operations in an effective manner
(Nurlansa and Jati, 2016). Marks & Spencer uses 360 degree performance appraisal method with
the help of which appraisal and promotion of an employee is based on their overall behaviour
and performance.
Skill: It is the another essential factor which refers to the ability & potential of their
employees and company so that they can perform their job role in an effective manner. In
relation with Marks & Spencer, it has been identified that managers provide training and
development sessions to the workers on a continuous basis. This will assist them in enhancing
their knowledge and skills for the attainment of organisational objectives.
Style: It is the last element of this model which includes the way or manner on the basis
of which business operations are performed to attain their both long and short term goals (Perera,
2017).
Value Chain analysis
It refers to a model which help a business organisation in examining different activities
which includes value to the business entity and help in gaining competitive advantages at the
marketplace. In this context managers of M&S conduct value chain analysis which are going to
be discussed as follows:-
Primary Activities
Inbound logistics
It is very essential to create positive relationship with suppliers as their assistance is very
essential to develop high quality goods and services. It has been identified that without
examining in-bound logistics, managers of the company face ample number of issues in their
product development storage. Examining this requires an organisation to emphasis on every
single aspect of converting raw material into finished goods (Phadermrod, Crowder and Wills,
2019).
Operations
Operations of Marks and Spencer categorised into different sections where they
manufacture and provide services to their customers. Analysis of operations functions is quite
essential as it help in enhancing productivity, improving efficiency as well as ensuring success at

the marketplace. Operations includes machining, testing, packing as well as assembling products
and services.
Outbound logistics
It consist of the activities which deliver products to the consumer with the help of
different intermediaries. It includes material handling, transporting, warehousing and many other
factors. It has been analysed that Marks & Spencer provide home delivery facility to their
consumers in order to maximise satisfaction level of consumers (Pokras, 2017).
Marketing & sales
Marks and Spencer is an organisation mainly focuses on providing high quality products
and services to their organisation so that they can effectively retain their loyal and potential
customer’s for longer duration. Along with this, by examining all the activities on a regular basis
of time period it can easily be concluded that the company produce quality products by reducing
any kind of errors and problems (REZAEI, KHAVARIAN and GHAFURZADEH, 2016).
Service
It has been analysed by the managers of M&S, it is very necessary to maintain their loyal
customers for a longer period of time. They provide free delivery to those customers who buy
products and services which cost more than £50. this is the facility which assist managers in
retaining their potential customers for a longer period of time duration.
Secondary Activities
Procurement
It has been observed that different value chain activities are interrelated with each other
so it is necessary for the managers to consider their procurement activities in an effective
manner. Managers of Marks & Spencer develop strong relationships with their dealers in order to
definitely acquire all the equipment’s and raw materials effectively in order to conduct all the
business activities effectively.
Technology development
Marks and Spencer develop innovative products which requires regular basis research so
that they can satisfy the requirements of consumers in an effective way. Technological
development is divided into product and process technological development activities. This will
assist them in producing high quality products in an effective manner (Vargas-Hernández and
Garcia, 2019).

Human resource management
Marks and Spencer is an organisation well known for its high quality products and
services. They adopt highly advanced technology for manufacturing products. Management team
provide daily basis of training and development sessions to their employees so that they will be
able to produce high quality goods and services. This will help them in order to become more
aware about the technology.
Firm infrastructure
Marks and Spencer possesses high quality-control mechanisms and use balanced
scorecard technique in order to make it sure when their introduce new infrastructure.
VRIO MODEL:
For examining the organisational internal capabilities it is required by the managers of
Marks & Spencer to adopt VRIO Model. Detail description about this model is going to be
discussed as follows:
Factors Valuable Rarity Inimitable Organized What is the result?
Worldwide
Existence
Worldwide
Existence
- - - Competitive Disadvantage
Commodity Commodity Commodity - - Partially competitive
Network
system
Network
system
Network
system
Network
system
- Competitive advantage
Staff
members
Staff
members
Staff
members
Staff
members
Staff
members
Competitive advantage
In the present context of M&S, managers of the business entity conduct VRIO analysis
which includes mainly four resources which are worldwide existence, network system,
commodity and staff members.

Valuable: It refers to the procedure where managers of the organisation consider all those
elements which have their own global presence at the competitive marketplace (Yudhistira
2016). As per Mark and Spencer, executive of the organisation emphasis on those resources
which exploit opportunity to an organisation or prevent against the threat such as providing the
quality resources at affordable price.
Worldwide existence: Herein, Mark and Spencer considers all those elements which
includes the present across the world at the marketplace. This is one of the most valuable
resource which help managers of Marks & Spencer in order to enhance their profit margin at the
competitive marketplace.
Commodity: M&S is a well known company providing high quality product at
appropriate price that helps in satisfying the customer. This is considered as most valuable
element for the company as it will aid them in order to influence ample number of users towards
their organisation.
Network system: Mark and Spenser focuses on using high and strong network so they
can provide assistance to communicate goal or objective to staff member of an organisation.
Staff members: In the context of Marks and Spencer, the management team provide
training to staff members that helps in increasing motivation and confidence level of staff
members. Team members, human resources or employees are valuable resources for the
organisation where managers provide them training sessions to motivate them by enhancing their
skills and capabilities.
Rarity: It is said that company mainly considers all those factors which are rare and assist in
gaining competitive edge at the market. In the present relation of M&S it has been said that the
global presence of company is not as large number of organisation are there operating their
business functions at the competitive marketplace in an effective manner (Scholes, 2015).
Commodity: Mark and Spencer provided the goods is as per according to current
prevalent trend is considered as rare in the marketplace.
Network system: In this, management team of M&S adopt strong and two way
communication process. They communicate with their staff members in an effective manner and
keep all the information, data and records of customers in a systematic manner.
Staff members: In this, the staff members of Marks and Spencer execute their tasks
effectively so they can achieve predetermined targets or objectives of the organisation within a