Business Strategy Project: Analyzing M&S's Strategic Position

This report provides a comprehensive business strategy analysis of Marks & Spencer (M&S). It begins with an executive summary outlining the key aspects of business strategy, including the importance of internal and external environment analysis using frameworks like SWOT, VRIO, and PESTLE. The report then delves into the application of these frameworks to analyze M&S's macro environment, focusing on political, economic, social, technological, legal, and environmental factors. It also examines M&S's internal environment, identifying its resources and capabilities. The report further utilizes Porter's Five Forces model to evaluate the competitive forces within the market. Finally, it explores strategic planning for M&S, including the use of the Ansoff matrix to achieve business objectives. The report concludes with a summary of findings and references, providing a detailed overview of M&S's strategic position and recommendations for future development.

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Unit Title and Number: Business Strategy (Unit 32)
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BUSINESS STRATEGY
(UNIT 32)

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.

BUSINESS STRATEGY (UNIT 32)
Table of Contents
Table of contents. ……………………………………………………………………………1
Introduction…………………………………………………………………………………….2
Applying approptiate frameworks analyse the impact and influence of the macro
environment …………………………………………………………………………………...3
Analyse the internal environment and capabilities of a given organisation using appropriate
framework………………………………………………………………………...6
Porter Five Force model to evalute competitive forces of market………………………11
Strategic planning for organisation………………………………………………………...12
Conclusion…………………………………………………………………………………...17
References…………………………………………………………………………………...18
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BUSINESS STRATEGY (UNIT 32)
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.
Applying appropriate frameworks analyse the impact and influence of the macro
environment
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BUSINESS STRATEGY (UNIT 32)
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 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,
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BUSINESS STRATEGY (UNIT 32)
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,
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BUSINESS STRATEGY (UNIT 32)
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).
Analyse the internal environment and capabilities of a given organisation using
appropriate framework
Explain the meaning of internal environment of an organisation
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:
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BUSINESS STRATEGY (UNIT 32)
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 –
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BUSINESS STRATEGY (UNIT 32)
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 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.
M & S clothing is perceived to be out of date
and does not appeal to the young people and
this has affected the sale of its products and
acting as weakness of business firm. (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
One of the major weakness of this firm is there
supply chain. This is because firm is going to
access global supply chain but it is not able to
perform its function at global level.
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
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
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BUSINESS STRATEGY (UNIT 32)
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.
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:
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BUSINESS STRATEGY (UNIT 32)
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
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