Strategic Leadership Report: Developing Proposals for M&Co Expansion

This report analyzes the strategic challenges faced by M&Co and proposes solutions to address them. It identifies issues such as responding to changes in the macro environment and accessing untapped markets. The report explores two strategic options: forming tie-ups with other brands and opening new stores, evaluating them using the RACES framework. The analysis considers resource availability, stakeholder acceptance, consistency with existing strategies, effectiveness in achieving aims, and the potential for sustainable competitive advantage. The report concludes that M&Co can effectively utilize its resources and capabilities to develop strategies that respond to business environment threats, emphasizing the importance of implementing options like forming tie-ups and opening new stores to navigate market challenges and sustain growth. Desklib provides access to similar reports and solved assignments for students.

Strategic leadership
3/23/2019

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Contents
Introduction......................................................................................................................................2
Identification of issues and Development of Strategic Proposals...................................................3
The organisation responds to changes in the Macro environment..............................................3
Firm access the untapped market.................................................................................................3
Options.........................................................................................................................................4
Option -1 Forming tie-ups with other brands..........................................................................4
Option-2 Opening new stores..................................................................................................4
RACES framework..........................................................................................................................4
RACES framework- Forming tie-ups with other brands.............................................................4
RACES framework- Opening new stores....................................................................................5
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
The aim of the report is to explore the priority issues confronting M and Co at the end of the
case. The report is prepared considering the Chief strategic officer (CSO) of M and Co to
develop or form the strategic proposal with the motive to acknowledge at least on the issues that
are faced by the company. The issues that are majorly faced by the company are discussed in the
assessment stage 1. This assignment is linked with the previous assignment which includes the
analyses of the environment in which business perform its operations. In the previous report, this
has been found that the rise in competition is one of the major issues that are faced by M and co.
in the market. In addition to this, the rise in the changes in tax and regulations is also one of the
factors that affect the operations. The change in the needs of the customers for trendy clothes
affects the company operations as they are working with the motive to complete the needs of
customers.

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Identification of issues and Development of Strategic Proposals
The organisation responds to changes in the Macro environment
Customers present in the market are considered as one of the major factors who drives the
changes that take place in the macro environment. The demand of the customers is more towards
the trendy products due to which M and co bring new strategies and updated products. Majorly,
the brand responds in the changing macro environment by understanding the needs and wants of
the customers (David and David, 2016). The needs and desires of the customers in the clothing
industry keep changes, which are taken into consideration and accordingly M and co., bring the
new collection. Further, this strategy helps the company to deal with the competitors that are
present in the market. In addition to this, M and co. The company make use of the technology
with the motive to provide the services effectively.
Firm access to the untapped market
The apparel market of UK is growing steadily in the past seven years and in the year 2018; the
market expectation was to set the value at approx. 60.7 billion euros (Statista, 2018). The
clothing market is expanding and the company is not able to extend the reach. Further, the annual
sales of the company hit at £211.4m and it is expected to increase by 39% (Brown, 2018). The
overall growth was the fuelled by 18.3% increase in the online sales for the current year. The
sales of the company are increasing which means that the company has extended its target
market in the market of the UK to whom they can offer the products.

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Options
Option -1 Forming tie-ups with other brands
The rise in the needs of the customers towards fashion as well as the trendy clothes is one of the
reasons that make the company to form the new tie-ups with the other brands. The tie-up with the
other brands helps the company to manage the trendy stock as well as a collection for the
customers that meet their needs in the market (M and Co., 2018). In addition to this, this will
effectively contribute in improving the brand sales as well as awareness in the market.
Option-2 Opening new stores
The local streets in the UK market are becoming more attractive towards the brand and its
working due to which the company is continued to make an investment in the store portfolio.
The company have opened 18 new stores at the time of year majorly in the locations where they
are targeted and have an on-going modernisation that is a rollout to the present chain (Brown,
2018). In addition to this, the company is focusing on IT investment with driving improving the
efficiency that is must for the delight customer experience.
RACES framework
RACES framework- Forming tie-ups with other brands
R Does the firm have all the resources
that are required?
Yes, there are different brands are present in the
market with whom M and co. the company can
perform the tie-up.
A Will the proposal be acceptable to
stakeholders?
Yes, because the stakeholders include the
customers whose need will be fulfilled. In

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addition, the shareholders of the company will
accept because this leads to a rising in revenue.
C Is this option remains consistent
with the remaining of the strategy?
Yes, this strategy is consistent with the remaining
strategy.
E Will the proposal remain effective
for accomplishing the desired aims?
Yes, this option helps M and co. company to form
a good relationship with the customers that is the
primary motive of the company (Morden, 2016).
The service is formed by combining the present
technology and it is including low cost.
S Will this proposal lead to a
sustainable competitive advantage?
The sustainability will last for the long term
because the company will manage the relationship
and tie-ups with the brand. Moreover, this
sustainable competitive advantage helps the
company to deal with the competitors in the
market.
RACES framework- Opening new stores
R Does the firm have all the resources
that are required?
Maybe, the company have all the resources that
might be required for opening the stores in UK
market.
A Will the proposal be acceptable to
stakeholders?
Yes, the proposal will be accepted to the
stakeholders because they will be able to get the
easy accessibility of the products and services with

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the increased revenue.
C Is this option remains consistent
with the remaining of the strategy?
Yes, the option will remain a consistent strategy
for the company that is advantageous for the
company. The stores that are opened by the
company will always remain in the market.
E Will the proposal remain effective
for accomplishing the desired aims?
Yes, the goals and aims of the company are to
expand the operations and business. The opening
of the stores for offering the services remains
effective for the company (Pisano, 2017).
S Will this proposal lead to a
sustainable competitive advantage?
Maybe, the sustainable competitive advantage as
the competitors also expands their business in the
market. The accomplishment of options needs high
resources and many others.
The search for the potential brand partners can be identified by the company with the help of the
lens of Game theory. The potential brands who are looking to form the tie-ups with the M and
co. will present their proposal to the company. This proposal can be compared by the company
with the competitors that are present in the market.
For example, the M and co company can get the financial benefit for forming the tie-ups as well
as opening the new stores in the market. In addition to this, the company can improve its
operations as well as contribute effectively in dealing with the competitors. Further, this is the
reason due to which the brand value can be improved.

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If Then If Then
Forming tie-ups with
other brands
The financial benefit
to the company
If M and co. company
introduce forming tie-
ups with the brand
after the competitors
Competitors of the
company get the
financial benefit and
can give tough
competition to other
companies.
Forming tie-ups with
other brands by
opening new stores
Financial benefit as
well as the brand
value
If M and co. company
introduce forming tie-
ups with the brand but
it remains
unsuccessful
Less damage to brand
according to the key
learning for the future
services

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Conclusion
In the end, this can be concluded that M and Co. The company is able to research and
capabilities are making the effective use of the resources for forming the strategies. The
company need to survive in the market where they might face a threat in the business
environment. Moreover, the report summarizes how effective the company make use of the
resources as well as the capabilities for resolving the issues that are present in the business
environment. Thus, the company need to implement strategies like forming tie-ups with other
brands as well as the opening of new stores that help in responding to the business environment
threats. The options are evaluated with the help of Races Framework.

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References
Brown, H. (2018) M&Co sales rise in ‘complex’ market [Online]. Available from:
https://www.drapersonline.com/news/mco-sales-rise-in-complex-market/7031969.article
[Accessed on 3rd March 2018]
David, F.R. and David, F.R. (2016) Strategic management: A competitive advantage approach,
concepts and cases. Pearson.
M and Co. (2018) Brands [Online]. Available from: https://www.mandco.com/brands/all-
brands.html [Accessed on 3rd March 2018]
Morden, T. (2016) Principles of strategic management. New York: Routledge.
Pisano, G.P. (2017) Toward a prescriptive theory of dynamic capabilities: connecting strategic
choice, learning, and competition. Industrial and Corporate Change, 26(5), pp.747-762.
Statista (2018) Apparel market in the United Kingdom (UK) - Statistics & Facts [Online].
Available from: https://www.statista.com/topics/3348/apparel-market-in-the-uk/ [Accessed on 3rd
March 2018]