Strategic Analysis of Mark & Spencer: Innovation, Ethics, and CSR

This report provides a comprehensive analysis of Mark & Spencer (M&S), a British company specializing in clothing and food products. It delves into the company's background, industry structure using Porter's Five Forces, and market position, emphasizing pricing, quality, customer service, and convenience. The report also examines M&S's approach to innovation and strategic innovation, highlighting the use of technology and promotion campaigns to boost productivity and customer engagement. Furthermore, it discusses the company's corporate social responsibility (CSR) initiatives, including energy reduction, charitable donations, and recycling programs, as well as its governance and ethics practices, focusing on fair treatment of employees and ethical supply chain management. The analysis concludes by summarizing M&S's market positioning strategies and overall business approach.

BUS3005 SM

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Company background.................................................................................................................4
Industry structure........................................................................................................................4
Market position...........................................................................................................................6
Determine innovation and strategic innovation..........................................................................6
Corporate Social Responsibility.................................................................................................7
Governance and ethics................................................................................................................8
CONCLUSION...............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The environment of the organization indicates the behaviour, development of the
organization by which they will evaluate the process and achieve the success in the future. It is
important for the business to enhance the market where they situated by applying such strategy
and implemented and it is also important for the organization by which they evaluate the issue
that they are facing in the environment. This report includes the information about the
organization Mark and Spencer who deals in a clothing and food products. This report includes
the organization background, industry structure and market position of the organization, also the
CSR and innovation and strategic innovation of the company and their ethics practices.
MAIN BODY
Company background
Organization has been in market for approx more than 130 years. The Mark & Spencer
organization this is a British company who deals with the apparel and home products.
Organization main headquarter situated in London and currently company has approx 959 stores
across the country and which include approx 615 food product shop. Company currently
operates in approximately 60 countries, and they handle 45 online websites in different regions,
more than 100 countries they deal with. The M&S net worth is $6.29 billion. M&S enhance their
business growth and expand the resources by expand their business internationally business.
Expand their business internationally because they focused towards the online market and
opportunity and want to set up the business for more recognition and advancement among the
customers they have and new customers as well (Esoimeme, 2020). The quality of their product
that is clothing, homeware and customers by which they stand in the market. They have the
quality of food which they produce, and the clothes that organization has also great quality, even
though organization also has many financial services included in their organization. They also
use renewable source of electricity by which organization and their customer value increases.
Industry structure
Industry structure describe the factor in the organization about the strategy and for competing
with the rivals of the firm and by the strategy formulation as well. For Mark ans Spencer
industry structure the report apply the porter's five force model by which organization analysis

evaluation of the structure can be done (Aithal, 2017). Five force analyse the current position of
the industry and their demand supply in the market.
Threat of new entrant: new entry in the market are analysed the threat for the industry and
because of this organization has to change their price according to it. The rate on investment and
cost also varied accordingly. For organization the main threat is the retail industry in a clothing
sector and also in the food industry. Organization has to manage all these threat by managing
and effective safeguards. Organization tackle this by innovation in their product and services.
The treaty of new entrant also decrease by the lower their fixed cost per unit.
Bargaining power of the supplier: as there are numerous of supplier in the retail industry and
dominant position of the industry is decreases because of this. There are many suppliers who are
popular among the industries has higher negotiating price in the industry because of this the coat
per product increase and the profit margin of the organization also decrease. M&S handle this
situation by building effective supply chain with various supplier (Dobbs, 2014). Company also
uses different material for their product to enhance the productivity of the organization.
Bargaining power of buyers: as the buyer has a lot of substitutes available in the market and
therefore the organization need to maintain their standard and price to attract the customer
towards the company and buy their product for the better advantage of the company. If company
wants make profit in the long run therefore they have to compete and maintain their price band.
M&S handle the bargaining power by building the customer base on a large scale. Create
innovation in the industry and offer discount to the organization. New products by company also
enhance the organization brand image in the market and among the customers.
Threat of substitute products: competition increases in the retail industry and company has to
maintai8n their efficiency in order to maintain the quality of the product by maintaining the
products and services offer by the organization. Company handle the substitute of product by the
understanding the customer behaviour and their core performance and also increase in their
switching cost for the consumer they have.
Rivalry : there are a lot of existing competitor of the organization in the market, and they have
to fight with them in order to maintain their position in the market for this organization need to
enhance the sustainable product and make innovation in this also collaborate with their
competitors for better advancement in the organization and recognition among the consumer.

Market position
Market positioning is a strategic process that involves the image of the organization among their
customer about the product or services they distributed. Market positioning also identify the
place where organization stand and the consumer perception for the company. As the Mark &
Spencer deals in a sustainable product and do their work in s renewable electricity which help
the environment a lot. The type of market positioning are;
Price: for the retail industry the pricing factor is the essential part and organization increasing
brand factor also depend on the price factor. Company with lower price and good quality usually
wins in the market (Wikström, and et.al, 2020).
Quality: quality can decrease the competition among the brand because when the company has
good quality product therefore they do not need to maintain the low price of their organization.
Customer service: after selling the product customer first seen the factor that how is the
customer service of the company by which the consumer attract more and this emphasizes the
organization environment among the consumer.
Convenience: this is easy for the customer to easily approachable to the organization for buying
the product this will help the organization as well (Baron, Li, and Nasirov, 2019). For this as
the M&S develop online stores and in every country their store is also had for that consumer can
easily buy the product of the organization.
Determine innovation and strategic innovation
In regard to M&S, it innovates their products and services by emphasizing technology
that boost organization productivity and efficiency in desired manner. This helps in raising
organization profitability by innovating products through taken into consideration about
consumer preference and desires in respective manner (AlQershi, 2021). They innovate by
promotion campaign through advertising by clothing technology that boost organization
productiveness in perspective manner. As innovation helps in raising organization sustainable
growth by emphasizing conduct and boost performance by smooth functioning under
organization. By implementing strategic innovation such as promoting products on different
channels of medium that attracts more and more customer towards organization. It helps in
gaining consumer satisfaction and boost productivity in desired manner through engaging more
people towards business. This conducts productive approach by making sustainability growth of
business and facilitate development of Mark and Spencer business through innovation and

strategic creativeness. As this helps in gaining sustainability of organization by making products
in innovative form and raises production in effective manner. Through innovating service by
providing customer technological products and better quality of goods and services boost
organization performance and maintains reputation in market. By implementing innovative
products into market that facilitate development of business and emphasize better approach for
business. By implementing strategy of promotion of products and uses technology for
advertising goods conducts sustainability of business (THATRAK, 2021). This facilitates by
innovating products and services through gain sustainability growth of organization in respective
manner. By achieving desired goals and objectives of organization through innovating and
creative products in new manner by considering consumer preferences in mind. It increases
sustainability growth and development of organization by raising productivity and efficiency
through attaining more and more consumer towards organization.
Corporate Social Responsibility
In accordance to organization, it emphasizes corporate social responsibility by reducing
energy and challenges that business required for changing ways by operating, packages etc. As
this help in maintaining corporate social responsibility by recognizing time, as they determine
that CSR conducts better risk management that helps in maintaining better approach of business
by removing issues and challenges in perspective manner (Bian and et.al, 2021). This conducts
sustainability of business by emphasizing growth and development of organization in effective
manner. The business performs their function in smooth manner by operating and producing
products and services by facilitate better approach for business through removing obstacle. In
order to do this, organization donates funds in charitable business that conducts through Mark
and Spencer local shops. As they have limited budget and aiming at support towards challenges
overcoming and reduces issues by emphasizing benefits in their local association. They donate
cloths and other products that are returned that donates to charity peoples. By recycling products
and other cloths helps in gaining productivity by securing environment and not waste products
by performing functions and maintains sustainability growth of organization. It conducts and
maintains smooth functioning of organization and leads productivity of organization in desired
manner. By emphasizing growth and emphasize corporate social responsibility by through
satisfying needy peoples through donating products that facilitate their reputation and gains
sustainability by raising their production and operation function in business (Choi and Choi,

2021). This helps in raising organization productivity and profitability by engaging more
customers towards organization by supporting local community through understanding their
needs and preferences by offering them products at free of cost by donating to charitable
organization or NGO. Through this make good reputation in market sector of business by
increasing growth and emphasize development of organization through raising their efficiency in
respective manner.
Governance and ethics
In respond to this, M&S operates large number of stored in market sector of UK that
governed in international area. By obtaining food, clothing and other retailing products that
aiming at satisfying needs and desires of customer (Alexander, 2021). Through this enhanced
their brand value and facilitate value of organization by emphasizing growth and maintains
sustainability of business in desired manner. As better governance is determines in organization
by assuring organization of Mark and Spencer by providing decision-making procedure in
effective manner. By taking corrective measure through overcome challenges and issues by
attracting more and more customer towards organization. This derives productive governance by
collaborating and maintains leadership that increases sustainability growth of organization by
performing function and conducts growth of organization in respective manner. The another
factor that is followed by organization through which they achieve success by maintaining
effective ethics through respect each other employees and other co-workers of M&S. This leads
towards organization profitability by performing ethics function in effective manner. As their
ethics is to follow policies and procedures by assuring fair supply of remuneration to employees
and not conduct any ethical misconduct by occurring child labour, differentiation according to
gender and many other aspects that violated people roles (Robertson, Jones and Rash, 2021).
Through maintains this ethics in Mark and Spencer organization, they achieve their desired goals
and objectives by performing functions and follow ethics in positive manner that facilitate
development of business by performing work in effective manner. The both key terms plays
significance role that helps in raising organization sustainable growth and boost productivity by
conducting governance and ethics in effective manner for satisfying needs and desires of
consumer through gaining reputation in market sector. As this helps in raising organization
profitability and by follows ethic in consideration boost productivity and increase growth of
organization in desired manner.

CONCLUSION
The report has been concluded about organization market position through segmentation,
targetting and positioning factors. It summarizes of background, organization structure and their
size that has been emphasized to determine and understanding of organization better. In this
determine key factors to ensure the closest competition of M&S in order to determine their
success that conducts by maintaining sustainability of organization in desired manner. Also, has
been described about distinctive key factors that are innovation and strategic innovation.
Furthermore, organization corporate social responsibility, governance and ethics has been
examined in the report.

REFERENCES
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