Unit 7 Business Strategy Report: M&S Strategic Plan Analysis

This report provides a comprehensive strategic analysis of Marks and Spencer (M&S), examining its vision, mission, and objectives. It delves into the formulation and effectiveness of M&S's strategic plans, employing tools such as the BCG matrix and SWOT analysis to assess its organizational positioning and environmental factors. The report conducts organizational and environmental audits, identifying potential new strategies considering stakeholder significance. It explores alternative strategies related to market entry, growth, and retrenchment, justifying selected approaches. Additionally, the report assesses the roles and responsibilities of professionals in implementing strategic plans, identifies resource requirements, and evaluates the contribution of SMART objectives in achieving targets. The report concludes with an overview of the key findings and strategic recommendations for M&S's future business development.

UNIT 7 BUSINESS
STRATEGY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1 Assessing the business vision, mission and objectives of M&S......................................1
1.2 Formulating the strategic plans for M&S.........................................................................2
1.3 Effectiveness of organisation over the strategic plans.....................................................3
TASK 2............................................................................................................................................6
2.1 Organisational Audit on the basis of Strategic positioning..............................................6
2.2 Environmental Audit of M&S with the help of various tools..........................................7
2.3 New strategies for M&S in assessing the significance of stakeholders.........................10
2.4 Organisational Audit and stakeholder analysis..............................................................11
TASK 3..........................................................................................................................................11
3.1 Alternative strategies relevant with new entrants, Substantive growth or retrenchment of
M&S.....................................................................................................................................11
3.2 Justifying the selected strategies for M&S.....................................................................12
TASK 4..........................................................................................................................................13
4.1 Assessing the role and responsibilities of the professional in implementing planned
strategies...............................................................................................................................13
4.2 Identifying the requirements of resources in implementing such plans for M&S.........13
4.3 Evaluating SMART contribution in achieving the targets.............................................13
CONCLUSIONS............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Developing or crating and identity in this rivalry world there is need of planning various
kinds of strategies that would help the organisation in having effective operational activities.
Hence, in the preset report, the study is based on the various strategic plans including BCG
matrix, SWOT analysis and PESTEL analysis over the organisation. Thus, such research will
help the firm in gaining adequate information relevant with external environment as well as
competition they are going to face. Hence, there will be suggestions given to the managerial
professionals in the organisation in accordance with such researches.
TASK 1
1.1 Assessing the business vision, mission and objectives of M&S
Businesses must have the vision or objective for the smooth run in the organisation.
Hence, there is need to make the team of the highly qualified and experience professionals who
will develop objectives or goals of Marks and Spencer as well as make effective plans in
accordance with attaining such targets (Torkkeli and et.al., 2016). Hence, the firm is known UK
oriented retail MNC which normally deals in the Luxury food article, clothing and other
household products with including various big brands such as Kellog's Corn Flakes etc. Thus, the
main vision of the entity is to design the products in accordance with the consumer preferences
as well as requirements.
Business mission: In accordance with the successful years of Marks and Spencer in the
period it can be said the firm is operating in various nations in the world as well as have obtained
the revenue approximately 10622 pounds for the 2017 annual year analysis. Hence, it can be said
the firm is having better operational strategies as well as good consumer retention techniques
which are helping them in gathering the Adequate amount of profit. Thus, they design the
products or services which brings the utmost satisfaction to their buyers as well as they can
become brand loyal (Van den Steen and et.al., 2016).
Vision: there is the motive of M&S in terms with analysing the consumers needs and
design the products which will helpful in satisfying their needs. Therefore, this vision will be
helpful for the organisation in terms of attaining the good brand image as well as it will be
fruitful for them in making the adequate increment in the profitability
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Goals and objectives: the necessity of aims and targets will help the firm in making the
effective efforts to attain such desires. Hence, it will help the executive managers in the firm to
make the effective decisions on which they could be able to make the strategies. Hence, Marks
and Spencer operating in various nations and has created the great brand image as well as have
the good consumer strength (Forte, Forte and Pinheiro, 2017).
Core competencies: In accordance with the analysing the FTSC 100 companies in which
Marks and Spencer has obtained the 55th rank which indicates that the firm has good capital
revenue as well as better investments which will help them in making the expansion of the
businesses unit throughout the world. Thus, the firm has the good Quality monitoring which
reflects the profit earning of the firm in the long run (Arditi, Burnand and Peytremann-
Bridevaux, 2016).
To have the successful growth and operational activities of the business must on the right phase
there is need to have the strong and effective strategic plan such as:
1. Determine the current strategic aims and objectives of the business.
2. Evaluate the business vision and mission such as component part of the strategic plan.
3. Identifying the factors which are affecting the strategic plan for the entity.
4. Develop a unique plan for the achieving the business goals and targets.
1.2 Formulating the strategic plans for M&S
The strategic plans for Marks and Spencer can be determined as making the effective
operational strength of the firm. Hence, there can be use of various techniques which are listed in
the steps that need to be followed by the firm.
Self assessment: To achieve the success in rivalry environment there is need to initially
analyse the internal or external strength of Marks and Spencer. Hence, these techniques will help
the professionals in examine the loopholes of the firm as well as they will be able to gain
information relevant to the areas of weaknesses (Mohapatra and Choudhury, 2016).
Strategy Formulation: After getting the information about weak points of the firm the
managerial professionals need to organise a meeting or workshops which will help them in
making adequate decisions. Hence, this will help business in having adequate strategic plan as
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well as innovative ideas that will be used in designing the products in accordance with consumer
preferences (Torkkeli and et.al., 2016).
Execution of the plan: By considering the plans or decisions made by managers, this is
necessary for Marks and Spencer in making the proper execution such plans. Hence, it will be
fruitful in analysing the requirements in such registrar as well as professionals will be able to
generate new ideas to solve such problems (Dzever and Jaussaud, eds., 2016).
Decision making: If there is any obstacle in executing the planed strategies as well as
any requirement took place such as need of funds in making the operational activities,
professional must be able to make quick and effective decision. Hence, it will help them in
improving the efforts and efficiency of Marks and Spencer and the workforce (Ferretti, 2016).
1.3 Effectiveness of organisation over the strategic plans
In accordance with developing the effective business plans for Marks and Spencer there
can be use of Two techniques which will help the professionals in the firm to make the effective
plans such as:
SPACE Matrix analysis: On the basis of such analysis there can be use of SPACE
techniques which will help the firm in evaluating the strategic targets of the firm. Thus, such
techniques will help the firm in analysing the actual position of the firm in the external
environment as well as making an effective action plan. Hence, such strategies are based on
considering the financial data set as well as demands generated by the firm in the external
environment (Nemeth, Fearnhead and Mihaylova, 2016). However, while implementing this
techniques Marks and Spencer will be benefited in having smooth running in the competitive
environment.
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Illustration 1: SAPCE Matrix Diagram
Source: (SPACE Analysis – Strategic Position
and Action Evaluation Matrix, 2011)
BCG Matrix: In accordance with these technique Marks and Spencer will be benefit in
analysing the consumer preferences and the level of the company in meeting the satisfactory
requirements of the buyers. It facilitates various techniques which will help the organisation in
analysing the actual position of the products in market (Azhar and Lin, 2017). Hence, this
method can be understand by following listed diagram:
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Illustration 2: BCG matrix analysis diagram
Source: (How to use the BCG Matrix model, 2017)
Star: In these segments the products are categorised as per the high market share as well
as high growth of the product. Hence, it can be said that the firm is able to make the profitable
earning if they invest in such products which are having huge demand in make that will result in
beneficial growth of Marks and Spencer (Van den Steen and et.al., 2016).
Cow: These are the products which belongs to the low growth in the market but has high
market share. Hence, the professionals will be able to make the better earning through such
investments. Thus, it can be said that investing in such products the there will be low growth of
the product will be less expensive for the firm (Ferretti, 2016)
Question mark: Investing in these kinds of products will lead Marks and Spencer to the
great loss because these kinds of goods will require the large amount of cost but have low market
share. Hence, it will be expensive for the firm in making investment in such articles (Bottero,
Mondini and Datola, 2017).
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Dog: In this category the products belongs to the low growth as well as required the low
market share. Hence, it can be said that such kinds of products are making drain in the resources
and not having adequate returns for such products (Dzever and Jaussaud, eds., 2016).
TASK 2
2.1 Organisational Audit on the basis of Strategic positioning
Strength:
 Most successful retail brand with lots
of brands investing in it (Fisher, Pan
and Wood, 2016).
 Operating in more than 40 countries
which approximate 1000 retail stores
 Has huge numbers of workforce nearly
80000.
Opportunities:
 Introduce the online retail store which
will help in fetching the maximum
attraction of consumers.
 Must introduce innovative ranges of
products and improve the services of
the firm.
 They need to make investments in
expanding the brand as launching new
articles.
Weaknesses:
 many rivalry firms are influencing the
business of this retail store
 Retaining the brand image which are
affected due to fake or duplicate
products (Forte, Forte and Pinheiro,
2017).
Threats:
 Availability of various substitutes in the
market which will distract its
consumers.
 Large numbers of competitors such as
Tesco, Sainsbury, Aldi etc.
 Changing government policies as well
as various political influences
Ansoff Matrix:
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Illustration 3: Ansoff matrix for Marks and Spencer
source:(Strategic Analysis of Marks and Spencers Plc (M&S), 2012)
In accordance with such organisational audit technique there can be use of various kinds
of marketing techniques that will help the firm in making the effective analysis of Marks and
Spencer barns. Hence, on the basis of Market penetration mangers in the firm need to develop a
new range of products which must be innovative and better than the competitors. Thus, on the
basis of launching a new product manager must consider about the development of such article
in the market which will help the firm in gathering the large numbers of consumers as well as
creating the unique identity of brand (Yin, 2016).
However, in accordance with Market development there are need to make strategies such
as developing the new segments, inviting more consumers with the help of promotional
techniques as well as introducing various products lines such as clothing, food article, cosmetics
which in turn give the tough competition to others.
2.2 Environmental Audit of M&S with the help of various tools
The macro environmental audit of M&S can be analysed with the help of several tools
such as:
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Political: M&S is the most successful retail store chain and serving in more than 40
countries. Hence, it can be said that, the firm has faced many political issues in such countries
such as changing currency rates, taxation polices as well as various rules and regulations for
retail stores (Ferretti, 2016).
Economical: In accordance with operational activities of M&S the firm has more than
1000 store across the globe and all are running successfully in context with achieving the targets
of the firm (Fisher, Pan and Wood, 2016). Hence, it can be said that there are variation in the
economic standard countries.
Social: There can be influence of various social factors which are affecting the
organisational performance of M&S such as cultural variations, demographic, choice and
preferences of consumers, changing trends and fashion as well as requirements of the buyers
(Mohapatra and Choudhury, 2016).
Technical: Various factors which are influencing the operational activities of the firm in
context with the technical advancement in the recent years. Hence, M&S must design an online
marketing site which will help its consumers in ordering product on the site as well as can be
able fetch the relevant information of the products offered by the firm (Torkkeli and et.al., 2016).
Environmental: In context with changes culture and environment of various countries.
The vision of the firm as it is running as the retail stores in the various countries as well as facing
the competitive challenges from various other local brands of such nations. It can be said that
such environmental factors may affect the profit gathering of the firm (Wu, 2016).
Legal: In accordance with making the effective run in this competitive world there is
need of having the effective legal authorities indulged with the firm. Hence, the firm has legally
authorised headquarter in UK and has obtained the 55th rank in FTSC100.
Porter's Five forces:
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Illustration 4: Porter's Five Forces for Marks and Spencer
source: (Strategic Analysis of Marks and Spencers Plc (M&S), 2012)
In accordance with the Porter's five force in above mentioned diagram it can be said that
the firm has the good brand image as well as threats for previously existing firms. Thus, in
accordance with clothing sector the fir is being challenged by various big brands such as Tesco,
Zari etc. so the competitive rate is high for M&S. Hence, the bargaining power of the buyers are
also high because of the regularly increasing competition buyer have many options and can
easily switch between brands (Van den Steen and et.al., 2016).
However, on the other side, the supplier's bargaining power is low because of availability
of the resources from various channels as well as here M&S can be able to choose between the
most suitable supplier for the business. Thus, there will be huge threat of new entrants as well as
substituted of products which are affecting the profit gathering of the enterprise and affecting the
brand image.
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However, in addition to this it can be said that there is need to involve Marketing mix
technique in terms with deciding the operational activities of the business. However, it can be
said that these techniques will be beneficial in attaining the targets as well as designing the
products which have the positive impacts over consumer satisfaction or revenue generation.
2.3 New strategies for M&S in assessing the significance of stakeholders
By considering the various method, models, tools and techniques to execute the better
running of M&S, there is need to develop the suitable plan for the firm. Hence, such plans can be
in accordance with achieving the effective targets of goals of the organisation these are as
follows:
 Professionals of the organisation initially took the survey in the various places as to fetch
the actual requirements of the consumers.
 Analyse the information that they have gathered from their research and communicate
with the business heads (Azhar and Lin, 2017).
 Executive directors of the entity must make the team of professionals who will generate
the action plan in accordance with designing the products as per the demands of buyers.
 Before implementing the plans there is need to analyse the costs and expenses were going
to be incurred in such operations.
 After introducing the new strategies there is need to examine the returns gained by the
firm which meet the desired target or not.
There has been various stakeholders of M&S such as Globe scan, Kellogs, and various
consumers, suppliers, managers, investors, shareholders etc. this will be beneficial for the
development of productivity and profitability. There is need to present the financial reports
which will be beneficial for such stakeholders to have the appropriate information regarding the
performances and efficiency of firm in meeting the goals and objectives. If the investor found it
most effective and attractive then they will make the capital investments in the firm and which
will reflect in having appropriate funds for the operations. In these regards there is need to have
beneficial dividend policies which will ensure the investors to have the profitable returns on the
long term basis.
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2.4 Organisational Audit and stakeholder analysis
With the help of Disclosure of the companies Financial accounts the user such as
stakeholders, investors will be able to gain the adequate information relevant with the financial
position of the firm (Forte, Forte and Pinheiro, 2017). Thus, they could be able to make the better
judgement relevant to the financial health of M&S. However, the firm cab be able to fetch the
maximum attraction of the stakeholders in such a manner:
 Accounting managers in the entity need to audit the accounts on the regular basis as well
as present the reports to stakeholders.
 These data set will help users to identify the growth of the firm by comparing the current
year's analysis with the previous year's.
 Analysing the consumers needs and taking the necessary steps to satisfy them.
 Implementing new dividend policies as well as provide the insurance cover to the
shareholders which will help the firm in fetching the trusty of them.
Therefore, in accordance with the use of financial disclosure there is need to have appropriate
business operations. It will be beneficial for the entity as they facilitate the appropriate dividend
cover to the investors which are need to be made and performed.
TASK 3
3.1 Alternative strategies relevant with new entrants, Substantive growth or retrenchment of
M&S
In accordance with the Business audit M&S is not able to meet the requirements of the
stakeholders than they need to develop the alternative plan such as:
 If the market share of the firm is getting low as well as they are nit able to make the
payments to their existing shareholders that they must change the operating policies as
well as focus over reducing the costs such activities (Bottero, Mondini and Datola, 2017).
 In case Marks and Spencer is losing the large numbers of consumers than they must make
change the product design as well as adopt marketing strategies with innovative changes
in goods.
Market Entry:
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There will be free exit and entrance in the market as well as there has been large numbers
of competitors are available which are offering the large varieties of products at the various rates.
Thus, it can be said that Marks and Spencer need to make te adequate analysis over the strength
and weaknesses of such retails giants.
Substantive growth:
There is ned to have the most attractive plans for the industrial development which in
turn helps in making the adequate growth in the business as well as helps the firm in terms of
acquiring the favourable amount of profits or turnover. Managerial professional in the firm must
plan for making reduction in the costs of the operations as well as present the fruitful forecasts of
the budgets such as sales, production or purchase.
Limited growth:
The success can be achieved by an organisation on the basis of step by step changes such
as they must present the limited amount of shares in the market. These will be beneficial for
them in terms of having the proper amount of funds and finance for the business operations.
Retrenchment:
These are the techniques which will be useful for the entity in terms of making the
adequate changes in the business operations which are meant to be made and analysed. It will be
helpful in terms of reducing the costs and speeding in relation with overcoming with the
economic obstacles in the firm. Therefore, there will be need to have the adequate changes in the
operations as well as make the appropriate analysis over the costs of the operations.
3.2 Justifying the selected strategies for M&S
By considering the new strategies, the directors in M&S will be able to gather the better
information related to changes in the trends, fashion as well as can be able to make the better
competitive changes in the products better than the competitors (Ferretti, 2016). Therefore, in
order to make the adequate growth in the retail business there is need to plan the appropriate
business strategies that help in enhancing the operational aspects of Marks and Spenser.
Managers in the firm must plan to improve the productivity as they must design the gods which
are desired by consumers. There is need to plan budgets and implicate various cost effective
strategies. Therefore, it will be helpful for them in improving the buyer's support and the
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financial stability in the business. There is need to have analysis over the previously existing
plans and make observation over the loop holes of such plans. However, there is need to have the
strategies that will be helpful in reducing the costs of the operations as well as proper execution
of the work.
TASK 4
4.1 Assessing the role and responsibilities of the professional in implementing planned strategies
Managers and executive professionals are responsible in making the effective
performance of organisation. Hence, it can be said that there is need to develop strategies and
assigning duties to various professionals in the M&S. Thus, the role of sales managers is to
analyse demands and the available goods to supply must be balanced as well as it must be in
good quality (Dzever and Jaussaud, eds., 2016). Purchase manager must consider the quality of
material they are purchasing as well as making expenses in the budgets allotted to them.
Marketing managers need to plan various advertising techniques such as through social media,
newspaper malvertisement etc. Are the methods in which they can update the consumers.
However, there has been various roles and responsibilities of the professionals in the
organisation which belongs to the different jobs and operations such as marketing manager, IT,
HR, finance, research and development as well as the production managers. Therefore, there is
need to have the skills and talent of operating various tools and operations of business.
4.2 Identifying the requirements of resources in implementing such plans for M&S
In accordance with applying the strategies they can be need of large numbers of
workforce which are highly qualified, skilled and experience to handle the consumer dealings for
M&S. Thus, for expanding the business criteria there is need to invite various clothing and food
brand to make the collaboration with the organisation (Forte, Forte and Pinheiro, 2017). There
will be requirement of appropriate amount of funds for the business operations as well as
appropriate numbers of employees to perform such tasks.
4.3 Evaluating SMART contribution in achieving the targets
The plans must be easily attainable as well as with the specific details. Thus, it will
motivate the employees to make the fruitful efforts. Hence, while considering the SMART
objectives of M&S there is need to make the better planning for the firm. Business is planning to
operate or expanding the operational areas thus, they need to manage the relationships with
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employees and the stakeholders which in turn make the valuable investments (Van den Steen and
et.al., 2016). Thus, such monitory benefits will help the firm in having suitable capital structure.
Hence, the plans must be trust worthy and reliable so the investors could able to judge the
fruitfulness of such strategies.
Specific: The new plans and policies mute be specific and have the authenticated
informations about it. Which will be helpful for the managers to make the effective efforts in
terms of achieving such targets.
Measurable: The goals and strategic plan must be measure bale as it will be
continuously provoke the professionals to make efforts and analyse the requirement.
Achievable: the goals are must be achievable and attainable so it will not distract the
employees instead of it will motivate them in favourable manner.
Reliable: The plans must be reliable as it will create faith in the mind of employees to
make efforts to achieve such targets and it will definitely help the firm to have profitability.
Time bound: The targets are need to be time bound and must help the firm and
employees in attaining it.
CONCLUSIONS
On the basis of such report it can be said that, there has been preparation of the various
strategic plans for the business which in turn helps the firm in getting the adequate information
relevant to the external and internal environment of the business. Further on the basis of Poter's
five forces it can be said that, the firm has good brand image which results in the high bargaining
power of consumers as well as exceeding competition it the threat to the entity.
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