Business Strategy Report: M&S Analysis, Planning, and Implementation

This report provides a comprehensive analysis of Marks & Spencer's (M&S) business strategy. It begins with an executive summary outlining the key aspects of business strategy and the importance of analyzing both internal and external environments. The report then delves into the application of various frameworks, including PESTLE analysis to assess the macro-environment's impact on M&S, SWOT analysis to evaluate its internal capabilities, and Porter's Five Forces model to evaluate competitive forces within the market. Furthermore, the report explores strategic planning for M&S, including the use of the Ansoff matrix to achieve profitability and productivity in the target market. The analysis covers political, economic, social, technological, legal, and environmental factors, as well as M&S's resources and competitive advantages, providing valuable insights into the company's strategic positioning and recommendations for future success.

Business Strategy

EXECUTIVE SUMMARY
Business strategy can be set of activities which are used by organisation in relation to
achieving its business objectives by managing resources. In relation to formulation of effective
business stagy it is important for organisation to identify internal and external environment. For
this purpose organisation can use frameworks like SWOT, VRIO and Pestle. These all are
helpful in identification of factors which impact organisation internally and externally. Along
with this, it is also essential for firm to use appropriate frameworks which helps in identification
of current market in achieving competitive advantage in business function. For this firm can use
Porter's five force model which will use to identify the factors which can impact organisation
while working in market. Organisation like M&S can use its goals, mission and objectives to
formulates effective stagy and chose one strategy from Ansoff matrix to achieve profitability and
productivity in target market.

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
TASK 1 ...........................................................................................................................................3
P1 Applying appropriate frameworks analyse the impact and influence of the macro
environment on a given organisation and its strategies..........................................................3
TASK 2 ..........................................................................................................................................5
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
framework...............................................................................................................................5
TASK 3............................................................................................................................................9
P3 Porter Five Force model to evaluate competitive forces of market..................................9
TASK 4..........................................................................................................................................10
P4 Strategic planning for organisation.................................................................................10
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business strategy can be defined as set of activities which has to be use by organisation
relation to achieving its business objectives. This is useful for organisation in achieving its
business objective by defining the goals and path to achieve these goals. The major roles of
business strategy in organisation is to manage resources and improving functioning of firm to
achieve business objectives. In relation to current project, a study is done on M&S, which is a
British multinational retail company and operates business at global level(Johnstone, 2016).
Under this report, there discussion about internal and external factors which are impacting
organisation and are important in relation to decision making process. There is also discussion
about Porters five force model which will help organisation in identification of competitive
advantage in market. In end, there is use of Ansoff matrix along with strategic management plan
to achieve business objectives.
MAIN BODY
TASK 1
Applying appropriate frameworks analyse the impact and influence of the macro environment on
a given organisation and its strategies
Today, business environment consists various outside factors which can impact on
performance and decision making ability of organisation. This is because its dynamic in nature
which includes various complex and rigid tasks, that possess challenges on firms related to
respond towards changing government policies, economic fluctuations and many more. For this
purpose, in order to respond towards such factors and run business sustainably, it is essential for
firms to adopt concept of external environment scanning. In context of Marks and Spencer,
management in organization is using PESTLE analysis. This include external environment which
can be define as environment that impact frim from outside. This is a framework which can be
use by organisation in relation to scanning the external factors which are impacting on
performance of firm in current and future time. It includes scanning of different factors to
develop better strategies ad discussed below:
Political: It include those factors which are related to political environment of area where
organisation is working. In relation to M&S, it is operating at global level where its is essential
for organisation to formulate appropriate strategy. The major political factors which impact

M&S arise due to BREXIT, open market polices of government and many more. M&S is
operating in global market in various nations where there is political stability. This helpful to
organisation in making polices according to it. BREXIT is that political factor which impacting
M&S the most. This is because due to this, Britain government is focusing on easing polices to
business. This will increase competition to M&S because of easy business polices. This has
create negative impact on its functioning, until the firm would not avail appropriate cost cutting
strategy. Changes regarding policies lead to market disbursement and fluctuation in the money
flow of the economy. This will also impact on retail function of organisation because it has to
change its polices and use more price effective strategy in firm( Li, 2019).
Economical: It includes those factors that are related with economic condition of a
market, where a company operates its business. These are growth rate of economy, employment
rate and various other factor which impact directly on performance of organization. In relation to
recent period, where most of the nations are facing problems related to economic slowdown,
arise due to vast pandemic attack of COVID-19. In context with M&S, as it operates retail
business in global market, so restrictions in trading, movement of resources across nations and
more, results in arising a high financial loss. In relation to M&S organization use those products
which are currently in demand. These are sanitizers, PPE kits, face masks. With these efforts,
M&S has its positive image into market as the company operate by taking economic concerns
into consideration which is fruitful for economic development.
Social: This includes those factors which are related to function of organisation in society
where it is trading. These are social trends, lifestyle trends and various other factors in market.
Identification of this factor is essential for enterprise in achieving its objectives and managing
function in effective manner. In relation to M&S, to retain and enhance base of customers, this
firm also focuses mainly on identification of current trends and way preferences of people
changes. In current market, there is regular changes in trends within industry in which M&S is
trading. This impacting negatively on organisation. This is because due to changes in trends, firm
has to face problem related to Dead stock (this include all those stock which get outdates and
cannot be sold until these is demand in market). This also impact on revenue of organisation
because dead stack leads to loss of money. For this organisation can use strategy in which it can
use to identify the trends in market by conducting market research. In context of current time,
M&S can use products which are related trends started due to covid-19. Under this organisation

can use designer face mask and other products. Using products and services by analysing market
preference and society value ethics, culture will Rise the impact of positivity till lifespan of the
company. Being socially active reflects the company concern regarding consumer law and
society welfare.
Technological: These are those factor which are related to organisation in working with
terotechnology changes in current business environment. It includes these changes in technology
which are useful for organisation in achieving business objectives. In context with recent
business environment, trend in retail business has largely shifted towards online channels from
offline purchasing. This is because outbreak of pandemic attack of Covid-19, where customers
are preferred to use online purchasing apps for buying clothes and other products or services.
However, it has impacted positively on M&S due to its online presence and positive feedback of
its customers regarding with delivery of high quality of its products, on amazing price rates
(Desai, Makwana and Verma, 2017). Negative impact of technology on performer of M&S is
that organization has to implement huge cost on accruing function and achieving business
objectives.
Legal: This factor includes those aspects which are related rules and regulation
formulated by legal authority to maintain ethical work practices in firm. In relation to M&S,
company is operating in various markets at global. Therefore, it is essential for enterprise to use
these functions in effective manner, this is also impactful to organisation in managing its
functions. In relation to current situation of M&S there are various rules and regulations which
impact on M&S. It is using fair working practices where it implementing all rules and
regulations in organisation. Some of these are employment regulation act, wages act and many
more. This helps business venture saving legal liabilities of firm and maintaining goodwill in
market. These factors positively affects on companies growth as it obliged by all laws and acts
and much influence on their employees well being as well as customer satisfaction.
Environmental: This is important factor for business venture , this is because it helps
organisation in maintaining good image in market and achieving goals and objectives in
appropriate manner. In addition to this, M&S using environment friendly practices. These are
zero carbon transfer in environment, using renewable energy in firm in form of solar panels for
producing electricity, using Led bulbs and no use of plastic in organisation. This helps M&S in
meeting the objectives of organisation in relation to society and environment. This also helps in

building sound image of firm in current time. These have also positive impact on M&S
productivity and success for long term prospective.
It can be evaluated from the above mentioned information that there are various factors
which are related to organisation and can use to perform its function in effective manager. There
are useful for organisation to make better decision and achieve its business objectives in timely
manner(Kamel, Rezk and Abdelkareem, 2020).
TASK 2
P2 Analyse the internal environment and capabilities of a given organisation using appropriate
framework
Resources of M&S
A business organisation work under various function and arrange them all into different
segments. As it is one of the vital function of management to organise resources into efficient
manner so that production and operation work with flow. All the operational activities are work
with the help of resources they manage to fulfil their objectives and goals. M&S has various
resources which are mentioned below:
physical resources: M&S has various physical resources which help them in finalising
production and services also regulate all the operations. These resources include building,
machinery, equipment. All these physical resources are based on capital investment which
requite huge contribution in companies assets. Marks and Spencer have many outlets by which
they have huge investment in assets and machinery. These investment are beneficial at the time
of losses on winding up of companies.
Human resources: These resources include the very important part of the organisation who are
the only doer of company. Employees, managers and leaders and labours are the human
resources which convert theoretical planning into practical aspect to achieve companies goals.
M&S has approx 80000 employees working on global level.
Intellectual resources: These resources include copyright, patent and brand value of the
company which is essential to build an unique image into the market. M&S has developed their
brand logo and copyright over their production. Which could not use by other firms into their
operations.

Financial resources: These resources include funds, investment bonds, bank deposits which is
necessary to carry out daily expenses and well ad to include assets into company. M&S has good
financial position over the years and has gross revenue of $254.8 million. These amount are not
sufficient to carry out the function of research and innovation into new product development.
All these resources are helpful in organisation and proceeding operational functions for
which company has started to to achieve its aims and objectives.
According to present business environment, it is essential for firm to scan both internal and
external environment for achieving goals and objectives. In context of Marks and Spencer, its
business strategies are mostly based on opportunities that are available in retail market, to grab
high attention of customers. For this purpose, SWOT and VRIO analysis are applied for
determining capabilities of M&S with identification of internal factors that arise problems in
achieving its business objectives, as explained below -
SWOT Analysis:
Strength Weakness
 Strong brand image is prime strength of
M&S. This is because organisation is
offering quality products to customer
which help firm in making sound image
in market.
 One more strong point of M&S is that
organisation has its presence in
international market. This is helpful in
managing revenue and increasing
profitably of firm.
 Marks and Spencer has fashionable and
designer products which attract large
number of customers because the
organisation enables their production
after doing proper research of market
 Marks and Spencer does not include
trendy clothes in their outlet which is
not feasible for the modern youth. So
that, it has impacted on companies
profit and its sales. (Parisio, Rikos and
Glielmo, 2016)
 M&S lacks with good financial
resources which makes them unable to
invest in modern technologies and
change their product appearances

trends.
 The company has pool of effective
human workforce who has expertise and
professionalism in their work. This has
became the main factor in companies
success.
Opportunities Threats
 Teaming up with local brand is that
factor which is impacting on
organisation and can be used to increase
the market opportunist. This is helpful
for firm in developing there supply
chain and using it to achieve business
objectives
 Bringing flexibility and simplicity in
firms working model is also a system
which can be use by organisation to
achieve its business objectives, under
this function organisation can use
Morden tools and techniques to achieve
its business objectives.
 Organisation is investing large amount
in food sector of UK. This is impacting
as an treat to organisation because there
are large number of competitors which
are impacting on performance of
organisation and can impact on firm,
which can leads to decrease in
profitability and loss of revenue.
 Regular changes in clothing industry is
also impacting as an threat to
organisation. This impact negatively to
organisation because of increase in
dead stock.
VRIO Model:
Resources Valuable Rarity Inimitable Organized What is the
result?
Global
presence
Global
presence
- - - Competitive
Disadvantage
Products Products Products - - Partially
competitive

technology technology technology technology - Competitive
advantage on
temporary basis
Employees Employees Employees Employees Employees Competitive
advantage
This is framework which is used by organisation to measure its business value in terms of
valuable resources, rarity and more.. In relation to M&S, value of its retail operations can be
determined via VRIO analysis in following way -
Valuable: It include those resources which are valuable to organisation and can be use to
achieve competitive edge over competitor. This is helpful to organisation in managing its
function by determining these resource. In relation to M&S, these factors are discussed below: Global presence: This is valuable resource to organisation because it helps firm in
archiving its objectives be selling products and services at global level. This also ensure
global growth to firm in achieving its objectives(He, 2018) Products: This is valuable to organisation because it helps in attracting clients to
organisation in market where its is trading. This is because M&S is offering high quality
products in market. It is the main objective of the firm to get valued product by market
and customers. Employees: Employee of organisation are also valuable asset for organisation this is
because they help firm in performing various task and achieving the objective by
maintaining profitability and productivity. Employees must get proper training
programmes to enhance their ability of critical knowledge and be creative in deciding and
planning strategies for organisation.
 Technology: This also act as an important function to organisation. Under this company
is using high performing standards to mange its technology. This make it valuable to
M&S because it provide competitive edge to organisation.
Rarity: These can be define as those resources which are rare in market and are
essentials for organisation to achieve business objectives. In relation to M&S it is there are three
type of resources which are rare in nature and act as an partial competitive advantage to
organisation. These are discussed below:

 Products: Products of M&S are rare in relation to organisation this is because
organisation is using important resource in developing these. Employees: Employees are also acting as a rare resource to enterprise because it is using
effective training and development programmes to boost skills of employees.
 Technology: In relation to technology organisation is using highly effective tools and
performance system which enable organisation achieve its business objectives. This also
use high level of investment and can be act as rarity in market (Mehrjerdi, 2019)
Inimitable: In this function those resource is included which cannot be use by competitor
of organisation. In context of M&S, there are two resources which are inimitable and are
discussed below: Employees: Employees of organisation are Inimitable resource this is because
organisation is using high level of training and development which make employee stick
to their respective job. It is also using higher pay and manage function in effective
manner to boost employee motivation.
 Technology: Organisation is high squired servers to save data of employees and manage
function in firm. This will impact on firm and will leads to achieving business objectives.
Organised: It includes those factors which has to be organized by firm . In relation to
achieving its goals and objectives.
 Employees: With the help of its highly efficient, skilled and competent employees, M&S
is able to conduct its global operations in an effective manner and ensure its sustainability
in market for a long time(Rangu, 2020).
TASK 3
P3 Porter Five Force model to evaluate competitive forces of market
PORTERS FIVE FORCES MODEL
Porters five forces model is a tool which has been formulated to examine the level of
competition in an industry. This analysis has done on retail industry. It includes the five crucial
components which are essential to examine by the marketer before entering in any industry and
allow them to create marketing strategies accordingly to sustain in the competitive market place.
Rivalry among existing competitors: This force monitors the current level of competition
in the existing market place. If the competition is high in the industry, then it is easy for the

customers to switch between the brands, where companies need to put extensive marketing and
promotional efforts to retain them. Though M&S is the market leader in the UK but it has to face
a lot of competition from its rivalries which make it essential for the M&S to create good
marketing strategies and provide lucrative promotional offers to attract the consumers. Brands
like John Lewis, Aldi are the main competitors of the the company. As retail industry has much
competition due to same kinds of products with slight different in prices. One firm make change
into their strategies influences the other firm to do the same in order to survive into market.
(Baumgarth, 2018)
Bargaining power of buyers: Consumers are the most important stakeholder for every
business entity. If the customers. number is less, competition is high and buyers can easily switch
then the bargaining power of consumers will be high. In the contrast bargaining power will be
less if the number of buyers is high and there is low competition in the market place. M&S has a
good customer base but there are multiple rivalries who are giving extensive competition to the
company and a choice to consumers to switch between the brands which is enhancing bargaining
power of buyers. Retail sector has many alternative products and services which provide
customers with choices. Change in price of one firm buyer could shift its demand very frequently
where their money gets its worth.
Bargaining power of suppliers: This force analyse bargaining power of suppliers who
provide raw materials, tools and other essential resources to produce the finish goods and has
power to increase the price of essentials they are delivering which may affect profitability of the
company. It has positive impact on companies image as they get benefited by many suppliers and
due to its high brand name suppliers would think before bargain from the company. Company
like Vodafone does not have large number of buyers and has to face cost difficulties due to
which it could not attain competitive advantage in telecom sector. M&S has multiple suppliers
which reduce their bargaining power and allows the company to receive the necessary resources
at a reasonable price which leads it towards a good profit margin(Rawat, 2019)
Threats of substitute products and services: This force examine the existence of
products and service which are identical to the company's offering and allow the consumers to
switch. Availability of more substitute products increase the competitiveness in the market and
reduce down the opportunity for organization to earn profit. M&S is facing a lot of threats of
substitute as there are various supermarket giants like Walmart and other small departmental