M&S Business Strategy: Environmental Analysis and Capabilities

This report provides a comprehensive analysis of Marks and Spencer's business strategy, focusing on both the macro and micro environments. It utilizes frameworks such as PESTEL, Stakeholder Analysis, Ansoff Matrix, VRIO model, and McKinsey's 7s model to evaluate the external influences and internal capabilities of the organization. The report examines political, economic, social, technological, environmental, and legal factors impacting Marks and Spencer, as well as the company's competitive advantages, resource utilization, and overall strategic decision-making. The analysis concludes by assessing the strengths and weaknesses of Marks and Spencer's internal environment and their impact on the company's market position and future growth.

Business Strategy

Table of Contents
INTRDUCTION..............................................................................................................................3
TASK...............................................................................................................................................3
Applying appropriate frameworks analyse the impact and influence of the macro environment
on a given organization and its strategies...................................................................................3
Critically analyse the macro environment to determine strategic management decisions..........6
Analyse the internal environment and capabilities of a given organization using appropriate
frameworks..................................................................................................................................7
Critically evaluate the internal environment to access strength and weaknesses of an
organizations internal capability.................................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRDUCTION
Business strategy is defined as an combination of techniques or action which is utilized
by company for achieving their vision, mission and objectives in short duration. It also helps to
increase the revenue of the organization at maximum level for long time (Ge, De Massis and
Kotlar, 2022). The chosen company is Marks and Spencer which is established by Michael
marks in 1884. The headquarter is this organization is located in United Kingdom and it is a
multinational retail based company. The main aim of this organization is to facilitate high quality
product and services to customers in time. The main products of this organization are home
appliances, grocery items, cloths and others. This report will cover applying appropriate
frameworks analyse the impact and influence of the macro environment on a given organization
and its strategies, analyse the internal environment and capabilities of a given organization using
appropriate frameworks.
TASK
Applying appropriate frameworks analyse the impact and influence of the macro environment on
a given organization and its strategies
PESTEL Analysis -
It is a strategic tool which is used by Mark and Spencer for understanding the macro
external forces which are described below -
 Political – It is defined as those factors which effects the organization politically which
includes trade regulations, various policies and others. In context to Mark and Spencer,
management must sincerely follow the trade policies of UK (Grabowska and Saniuk,
2022). Due to following the various policies of UK government operational activities of
the organization are worked in smooth manner and also good relation between
government and organization in long term.
 Economical – It refer to those factor which increasing the impact on organization
economically which includes interest rates, salaries of employees and others. In context
to Mark and Spencer it is necessary for management that they must use some specific
strategies form increasing the sale of their products effectively. It includes beneficial
schemes, discounting offers, providing vouchers and others. With help of these strategies

portfolio of organization are easily increased at maximum level. In this way the economic
growth of Mark and Spencer are sustained in positive manner for long time.
 Social – It is related to those factors which are responsible for influencing changes in
human behaviour which includes culture and subculture, family and social groups
(Hossain, 2022). In context to Mark and Spencer, management must facilitate unique
food products to all customer segments according to the current trend and culture. For
example macaroni cheese, sweet and sore chicken and due to introducing these type of
products in market their productivity are highly increased.
 Technological – It basically refers to advanced equipments and systems which is utilized
by organization for running their departmental functions smoothly. In context to Mark
and Spencer management must use artificial intelligence for enhancing the customer
convenience effectively. With help of this technology firm are able to facilitates unique
features to customers during the time of buying product. It includes self check in and
checkout system, providing digital platforms and others.
 Environmental – It is related with those factors which impact the organization naturally
and it includes pollution, population density, temperature and food (Huang, Savita, and
Zhong-jie, 2022). In context they must use remove, reuse and recyclable plan for
reducing the use of waste products and carbon footprint which is used by company.
Because carbon footprints are highly responsible for increasing pollution in air and
damaging the health of living organisms.
 Legal – It refer to those factor which effects the organization legally and directly and it
includes government norms and regulations. In context to Mark and Spencer,
management must maintain fairness and transparency in their activity. Due to this
goodwill and reputation of organization are sustained between public in long term.
Stakeholder Analysis -
It is method which is used by organization for achieving their economic growth, success
and objectives in short duration.
 High interest, high power - It is defined as those stakeholders have high power for
taking any kind of decisions regarding their business functions. In context to Marks and

Spencer, CEO or board of directors are comes under this category for controlling the
workers properly because they are the highest powerful stakeholders in organization.
 Low interest, high power – In this stage those people are involved stakeholders whose
interest are very less in the functions of business (Kaffashi and Grayson, 2022). In respect
of Marks and Spencer, investors are comes under this category within organization. Here
there interest are very less in business functions but have high authority for taking any
type of decision.
 High interest low power – Here those stakeholders are involved whose interest are high
but have low authority in the activities of business. In relation to Marks and Spencer,
customers are comes in this category. Because consumers did not have any kind of
authority for taking any king of decision but they are able purchase number of products
without facing any kind of difficulty.
 Low interest, low power - It refers to those stakeholder whose interest and authority
both are at zero level (Kumar, Nanda and Tawangar, 2022). In context to Mark and
Spencer, workers are comes under this stage because is one of the stakeholder who did
not have the permission from senior from senior for using their power at maximum level
in any situation.
Ansoff Matrix -
It is a tool which is used by the organization for achieving success and also for increasing
their future growth in short duration. This method is basically divided in to four stages which are
described below -
 Market penetration - It means enhancing the sale and popularity of existing product in
old market. In relation to Mark and Spencer, they must apply effective strategies for
increasing the demand of their product in various locations. It includes increasing of
production capacity and fixing affordable prices. Due to using this type of strategies
customers are easily attracted in large number for buy buy their product.
 Market development - It is defined as expanding the market of organization in various
areas with help of of utilizing existing products. In respect of Mark and Spencer,
management must utilize different methods which includes use of technology such as
online portals official websites and others. In this way the reach of their products and
services are effectively increased at global level.

 Product development - In this phase Mark and Spencer are highly focusing on
developing new product in existing market according to the desires and wants of
customers. In context to Mark and Spencer, management must hire talented and qualified
employees for maintaining standard and quality in their product (Moro, Cauchick-Miguel
and de Sousa Mendes, 2022). Due to maintaining standard and quality positive feedback
are highly produced by customers and their goodwill are also sustained for long time.
 Diversification – Here product and market both are newly developed by the management
of Mark and Spencer. In context Mark and Spencer, they must enhance the availability
of their product in both offline and online mode in all location. Due to using these
strategy their services and product are expand at wide range which leads to increase their
market share easily.
Critically analyse the macro environment to determine strategic management decisions
From the analysis of above strategy it is concluded that Due to operating whole business
in UK by Marks and Spencer, they easily gained competitive advantage in market. With help of
effective analysis of the PESTEL and other models company easily identify their strength and
weakness and then according to that owner of company always take right decision. Because right
decision is highly essential for increasing the market share and profit margin of organization at
maximum level. Due to high profit organization are able to maintain their goodwill between
public for long duration (Nurulloh, Simbolon and Deksino, 2022).
Analyse the internal environment and capabilities of a given organization using appropriate
frameworks
VRIO Model -
It is a method which is utilized by organization for achieving competitive advantage in
market. The elements which are essential for analysing the company effectively are -
Ability and
Resources
Valuable Rare Imitable Organised
Financial
Resource
Yes Yes No Yes
Employees Yes Yes Yes Yes

Patents Yes No No Yes
Effective global
presence
Yes Yes Yes
No
 Valuable – In context to Marks and Spencer financial resources, global presence, patents
and workers are the most valuable element. Because due to using these elements
company are able to run their departmental activities smoothly.
 Rare – In respect of above mentioned company management are focusing on those
element which are very important for achieving competitive advantage in short duration.
It includes workers , worldwide financial management and global presence .
 Imitate – In this process business activities and functions are engaged by using different
elements. It includes workers and world wide presence (Romero, Sanchez-Lite, and
Liraut, 2022). Due to applying these elements popularity of Mark and Spencer are
enhanced in low time.
 Organized - In context to Mark and Spencer, management fully focused on whole
activities of organization. Therefore, for running their functions in smooth way
authorities used various elements which includes employees and patents.
Mckensy's 7s Model -
Management of Mark and Spencer used this method for enhancing work productivity and
work efficiency workers effectively and this model is divided in seven stages -
 Style – In respect of Mark and Spencer, manager must use suitable style in organization.
Because effective style are highly important for control the lower level properly with
good communication.
 Structure – In context to Mark and Spencer, they always maintained the well established
infrastructure within and outside organization. Due to effective infrastructure work are
done systematically and roles are also clearly, defined to each employee.
 Skills -In relation to Mark and Spencer, they always utilize the talented workers in
workplace area. Due to use of talented workforce products are always produced in best
quality according to company standards.

 Strategy - The management of Mark and Spencer, must utilize strategies effectively for
run their functions smoothly at global level. Due to using various strategies products are
delivered to customers in time.
 Shared values – In this process objectives, mission and vision statement of Mark and
Spencer provides value and common purpose to workers. Shared values of company give
them a reason of doing something.
 Systems – It refers to equipments which is utilized by Mark and Spencer for measuring
the performance of all departmental employees effectively in less time.
 Staff – In this stage all categories of employee are comes under the list of staff. In
context to Mark and Spencer, workers are totally responsible for managing various
resources effectively.
Resource based view -
Resource is defined as the resources and other materials which is used by organization for
improving their performance effectively (VU, DAM and HA, 2022). In context to Marks and
Spencer resources are classified in to two categories tangible and intangible. Tangible resources
means those resources which is effectively used by organization for increasing their portfolio
which includes cash, machinery and inventory. But intangible resources is defined as those
resources which are able to only feel and it includes intellectual property and goodwill.
Critically evaluate the internal environment to access strength and weaknesses of an
organizations internal capability
From the analysis of above internal analysis it concluded that due effective internal
analysis helps to increase the popularity of their product in different areas. It also helps to
increase the effective utilization of resources by the employees. Due to optimum utilization of
resources the reach of their services and products are increased in global level. In internal
analysis the models which are used by organization are VRIO and Mckensy's model. With help
of using this models company easily understand the traditions and culture of various countries.

CONCLUSION
After the analysis of above data it is concluded that business strategy is very important
for running the business activities smoothly in any situation. With help of using effective
business strategy company easily achieved the competitive advantage in market with low time.
The techniques which are used by Mark and Spencer for analysing the market and also for
sustaining their productivity in long term are PESTEL, Stakeholder, Ansoff and VRIO analysis.

REFERENCES
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