Strategic Management: Marks and Spencer Company Analysis Report

This report provides a detailed analysis of the strategic management approaches employed by Marks and Spencer, a prominent UK-based retail company. It begins with an introduction to strategic management and the company's background, including its history, business operations, and global presence. The main body of the report focuses on comparing strategic theory with the company's actual practices, particularly within the context of the dynamic retail sector. It utilizes analytical tools such as PESTEL analysis to examine the business environment, considering political, economic, social, technological, environmental, and legal factors influencing Marks and Spencer's operations. Furthermore, the report includes competitor analysis to assess the company's position in the market. The conclusion summarizes the key findings and insights gained from the analysis. The report aims to provide a comprehensive understanding of Marks and Spencer's strategic decisions and their impact on the company's performance.

strategic management

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Compare theory and practice..................................................................................................3
CONCLUSION........................................................................................................................11
REFERENCES.........................................................................................................................12

INTRODUCTION
Strategic management is defined as formation of strategies on the basis of the set
goals and objectives of the organisation. This report is based on the case study of Marks and
Spencer Company in respect to its strategic management approaches. Marks and Spencer
Company is a United Kingdom based retail sector organisation. Company initiated its
business operations in the year 1884 by the founders Michael Marks and Thomas Spencer.
Company offers clothing, food products and home products. Company has a worldwide
business operations comprise with more than 1400 locations all across the globe. Company is
listed in London Stock Exchange. This report will project the strategic management
approaches of the Marks and Spencer Company. Henceforth, report will emphasis on the
comparative theory and practices in respect to the Marks and Spencer Company. Competitive
analysis of Marks and Spencer Company will be conducted in this report. Analysis such as
business environment analysis, competitor analysis and competitive analysis will be
conducted ion this report.
MAIN BODY
Compare theory and practice
Retail sector is among one of the most emerging market sector across the globe.
Every year the sector is witnessing an increasing trend in the demands of the retail products.
The sector has witnessed to both online and offline retailing that has also improved the scope
of the sector all across the globe (Abosede, Obasan and Alese, 2016). With the support of
various analytical tools like business environment analysis, competitive analysis and
comparative analysis positions of the company in target market can be projected.
Business environment analysis
Business environment is considered as the environment in which companies
conducted their business operations. Retail sector is a very traditions business environment
sector as it caters the basic products requires for a living in the society. As the sector
comprises with basic products requires for living the sector has always been in a huge
demand as compare to other associated market sector. Business environment analysis
involves PESTEL Analysis tool. This is a tool comprises with all factors that influences the
company’s operations. All such factors and tools involve in business environment that put an
impact over the operations of the company are covered in this analytical tool.

PESTEL Analysis
PESTEL Analysis is a well diversified analytical tool covers all factors that influence
company’s business in the associated market. Business environment consist a volatile nature
that offers plenty of uncertainty in the market. Due to its volatility every time it offers new
challenges and factors that put a huge impact over the operations of the company. PESTEL
Analysis comprises with factors like political, economical, social, technological, environment
and legal factors. All such factors directly influence the company’s operations and business
outcomes in the market. Retail sector comprises with basic needs of human beings so all such
factors aggressively work over the business operations of the company.
Political Factor: Political factor is an important business environment factor part iof
PESTEL Analysis. This factor involve policies framed by the government in United
Kingdom and other part of the world where the Marks and Spencer Company possess its
stores or involves in any form of trading. Policies frame by government associated with the
corporate sector directly influences the company operations (Agwu, 2018). As the corporate
sector contributes in the economic growth of the country government always supports the
growth and development of the corporate sector. Retail sector comprises with basis products
requires for the peoples in society which also attracts special interest of government in the
growth and development of the retail sector. Retail sector is among such sector that generates
one of the major tax returns in indirect forms due to its heavy demands on a regular basis.
The sector offers its products to all economic background and class people and all human
belongs to any culture, religion and any social factor. The area of the sector is too vast which
also offers special interest of policy making of government in retail market. Government
restriction also impact over the business operations of the Marks and Spencer Company. In
recent times BREXIT influences the business operations of the companies like Marks and
Spencer in a negative manner. Due to BREXIT companies need to face some restriction that
also resulted into reduced demands of the retail products of the Marks and Spencer Company.
Political stability is a big element that impact over the company’s operations and business
potential. In United Kingdom government has a very stable political situation and position
due to support of the people in society. Political stability in United Kingdom allowed
government to make long term policies and strategies to improve the growth potential of the
corporate sector. Political stability also allows Marks and Spencer Company to sustain its
strategic decision making for long period of time. Longer sustainability of policies allows
company to contain the same strategies for longer period of time by making reasonable

changes in strategies on the basis of the requirements of market. Political factor directly
influences the company’s sales and business operations.
Economical Factor: Economic factor in an important business environment factor part of
PESTEL Analysis. Economic factor has a direct impact over the business potentials of the
company in market. Factors like currency exchange rate, value of currency in international
market, stability of the currency, economic policies of government, monetary policies and
different other policies frame by government to strengthen the economic environment iof the
country. All such factors directly influence the sales of the company in market. All such
factors also influence the prices of products in market. Tax reform of government also a big
factor associated with the economic factor. Taxation directly increases the prices of products.
Stable economic position of the government keeps the prices of product at lower rate. In case
of hiking in taxation over products company also requires to increase its product prices.
Marks and Spencer Company operate its business operation in more than 1400 location all
across the globe that involves economic stability of different countries (Ansoff and et.al.,
2019). All such economies that are associated with the business of Marks and Spencer
Company put an impact over the business operation of company. Inflation in economy is also
a key business environment factor influences the business operation of Marks and Spencer
Company. Inflation has a direct relation with the prices of product in retail sector. In case of
inflation the product prices increases. In United Kingdom due to healthy policies and reforms
the economic situation of country is well balanced and also the inflation in the economy
operates in controlled manner. Due to this the prices of all retail products offer by Marks and
Spence Company are in an affordable regime. Inflation directly restricts the purchasing
capacity of customers but due to effective policies of government inflation in United
Kingdom is in control of government. It can be stated that economic factor has a huge
influence over the business operation of company.
Social Factor: Social factor involve different elements that influences the operation of the
company in market. Social factor are stated as among the dominating factor part of the
business environment that influences the business operations of the company. Social factor
involves different elements that influence the decision making of the potential customer of
company (Bagheri, 2016). Elements like choice of people, religion, culture, fashion, trend
and various other factors that directly impact over the purchase decision making of the
customers. All such elements are considered by the customers while taking the buying
decision for its product. Retail sector is directly associated with the choices and various social

elements. Marks and Spencer Company deals in clothing which is highly depends upon the
fashion and current trend of the market. Fashion and trend is directly influences the sales of
company. Marketing team of Marks and Spencer Company make different promotional
campaigns to make the product of company as trendy and fashionable with the support of its
marketing campaign. Company always try to attract the decision making of buyers in retail
sector by channelizing an effective marketing campaign. It can be projected that social factor
involve in business environment is among the most dominating factor as it directly influences
the buying decision make by customer.
Technological Factor: Technological factor involve all technological advancement and
development. This tool involves in business environment guides the company about all latest
technological inclusion in the society. Technology is among the key factor that has
transformed the entire business sector. Technological advancement has guides society to
introduce online retailing that has also expanded the sales potentials of companies like Marks
and Spencer. Technological factors also supported different functional activities associated
with the organisation hierarchy of company. Functional activities of company like marketing,
finance, sales, public relation, operations and other operation functions are directly operated
with various technological developments. Technological factor also support company in
innovation and product development activity (Barney and Mackey, 2018). Marks and
Spencer Company channelizes technology in each functional activity company is engaged
with. Company in engaged with selling its products over online and offline lodes. After the
involvement of online retailing in the sector the sales potential of the company has also
increased all across the globe. It has directly expanded the growth potential of the company at
international level. Technological development has immensely supported company’s sales
and public relation along with the marketing of company. Company is utilising latest
technological equipments in operating and controlling all three functional activities. Due to
technological developments company has also improved its brand presence by channelizing
effective marketing campaigns.
Environment Factor: Environment factor involve economic values and beliefs of company.
This is among the recently developments of business environment after the social awareness
of society towards environment protection. People are keener to utilise eco friendly products
that can support environment protection as well. Marks and Spencer Company channelizes its
brand promotion in such a way that the products of company look eco friendly. Company
offers clothing, food products and home products which carry the environment friendly

nature (Berisha Qehaja, Kutllovci and Shiroka Pula, 2017). Marks and Spencer Company
also engaged in different kinds of social activities like plantation, water harvesting, energy
saving, green energy and other forms of social activities as a part of the corporate sector
responsibility. This is also a key elements associated with the environment factor in business
environment. Corporate social responsibility allows company to improve its brand value in
the market. This also allows company to improve the brand loyalty in respect to the society.
Different social activities also channelized into sales of company. Environment factor also
involve government restrictions over corporate organisation as per the environment
protection guidelines. Environment analysis also guides Marks and Spencer Company in
regards to all such guidelines issues by government and its related all latest developments.
Legal Factor: Legal factor involve laws and legal regulation company need to face. Legal
factor involve all laws and legislation implemented over corporate sector. Companies need to
cope up with all different laws and legislation applicable in order to conduct the business
operations. Different laws like equality, data protection, minimum wage payment and other
legislations are applicable on Marks and Spencer Company. Organisation needs to cope up
with all guidelines associated with such legislation in order to conduct all different functional
activities of company (Bianchi, Mingo and Fernandez, 2019). Legal factor also indicate the
different legislative requirements company needs to fulfil in case of globalisation of business.
In case of business expansion company need to take licensing and other formalities which are
guided by the legal factor involve in business environment.
The above mentions factors are associated with business environment. Different
factors of business environment influences operation activities of company along with its
growth potential in the market.
Competitor analysis
Marks and Spencer Company conduct its operations in retail market. Retail sector is
among one of the most competitive market sector associate with business environment
(Busch and Shrivastava, 2017). The sector is the traditional market sector part of the business
environment as it offers the product range contains basis needs of the society like food, cloth
and other basic needs. As the sector covers all different forms of basic needs of society the
sector contains effective demands in market. Due to heavy products demands of retail sector
competitive has also become aggressive for the Marks and Spencer Company. In United

Kingdom the retail sector is generating the growth rate of approximately 5%. This is an
effective growth rate which projects the heavy demand of the sector in market.
(Cavicchi and Vagnoni, 2018)
Marks and Spencer Company is more like a leading brand involve in retail market.
Company face tough competition from other retail brand like Asda, Wall Mart, Tesco and
other retail companies (David and David, 2017). Asda Company is among the top brand
associated with the retail sector as the company has established a huge dominance in the
market with the presence. Apart from healthy competition Marks and Spencer has entertained
a growth rate of approximately 16% in its sales turnover in the last financial year. This is an
effective statistics that projects the dominating presence of the company in the retail sector all
access the globe.

(Jalonen, Schildt and Vaara, 2018)
Apart from the different retail companies deals in offline retailing by opening up
stores at different locations. Marks and Spencer Company also involve in selling retail
products over internet. Online retailing has been proved as the transformation in the retail
sector. Online retailing contains the growth rate of almost 8% every year. As per the sales
statistics of United Kingdom of the last financial year it is projected that online retailing
contribution in the total retail turnover of United Kingdom is approximately 25% that also
project the huge demands of online retailing in the United Kingdom (Rees and Smith, 2017).
Marks and Spencer Company also engaged with online retailing. Company get huge
competition from online retail brands like Currys PC World, John Lewis & Partners, Next,
Screwfix, Asda, Tesco, Argos, e Bay and other online retail brands. It is projected that in
coming years online retailing with achieve the contribution in the sales turnover of United
Kingdom is approximately a rate of 33%.
Porter Five Forces Model
Porter Five Forces Model is among the key competitive analysis model. This model
comprises with different competitive forces impact over the business operations of Marks and
Spencer Company. On the basis of involvement of various competitive forces this tool
present different impacts over the company’s presence in market influenced with
competitiveness of such forces.

Competition in industry (High): This force is high as the retail market is very competitive.
As the sector contains heavy demands of different retail products the competition in the
market is very high for the Marks and Spencer Company. Company face competition from all
top brands like Asda, Wall Mart, Big Bazaar and other top brand along with many e-
commerce brands. Competition directly affect over the sales of company in market. Due to
heavy competition it becomes more challenging for the company to improve its growth
potentials on a constant basis. Retail sector is growth at the rate of approximately 5% in
United Kingdom which also attracts new entities to enter in the market (Kliuchnikova and
Pobegaylov, 2016). Sector also offers immense profitability opportunities which also attract
new stakeholders towards the sector. This force is relatively high as compare to other forces
part of the competitive analysis of the company. Marks and Spencer Company also face
aggressive competition from small stores that involve in selling retail products. Many small
stores in United Kingdom selling product over internet also which also increases the market
competition for the Marks and Spencer Company.
Potential of new entrants in market (High): Potential of new entrants is also the key
competitive fore company face. This force is also high for the Marks and Spencer Company.
The organisation is a part of retail sector due to growth the possibility of new entrant is huge.
The sector is among the highly competitive sector due to effective growth rate of the sector.
Industry also contains an effective growth potential in the coming year also due to increasing
demands of all retail products. Effective growth rate and increasing demands always attracts
new stakeholders and investors to entertain in the market (Lawton, 2017). This force is high
for the Marks and Spencer Company. New entrants always increase competition but mostly
for small retailers. In case of Marks and Spencer Company apart from huge possibility of new
entrants to enter in the market competition will remain same for the company. As the
company is among the well established brand part of the retail sector organisation contains an
effective and loyal customer base. This force is not much affective in business growth point
of view for the company due to its well established brand image and loyal customer base.
Power of supplier (Medium): Power of suppliers in medium in nature as per the competitive
analysis model. Marks and Spencer Company is one of the learning brand of retail sector all
across the globe. Company’s product portfolio is comprises with all top brands part of the
retail sector. As the company is associated with all top brands in the retail market the
dependency of the suppliers is more in respect to profitability as compare to the dependency
of the Marks and Spencer Company over its suppliers (Starr, Ganco and Campbell, 2018). As

the company is among the big brand associated with the retail sector the organisation always
contains effective choices of different suppliers and delivery chain network. This force create
a medium nature impact upon its supplier network as they play an important role in timely
availing all lasts trendy and fashionable products at all stores of Marks and Spencer.
Power of customer (High): Customer is among the key stakeholder associated with the
organisation. Customers play a huge role in sustainability of company along with its growth
in market. Company frame different strategies and policies to attract the customer interest in
company’s products (Yenipinar and Akgün, 2017). All marketing strategies channelizes by
company are also based on its potential customers. It can be stated that customer carry
involvement in each and every functional activity associated with the company. Due to huge
involvement of customers it can be projected that this force is relatively high as compare to
any other force associated with the competitive analysis of Marks and Spencer Company.
Threat of substitute products (Medium): Threat of substitute product can be defined as all
such product that can replace the usage of products offer by Marks and Spencer Company.
This force is medium in nature for the company. Marks and Spencer Company deals i retail
sector. The innovation plays a very limited role in product development especially in retail
sector. This force is medium in case of clothing line of company as it changes constantly. In
case of food and other product line this force is lower in range.
CONCLUSION
This report projected the competitive factors attached with company. PESTEL
Analysis projected different factors like political, social, economic factor, technological
factor and other key factors associated with business environment. All such factors influence
company’s growth and sustainability in the associated market sector. Marks and Spencer
Company is receiving huge competition from other brands like Asda, Wall Mart, Tesco and
other retail companies. The organisation also receives competition from online retailing
brands. Different forces like power of customer, supplier power, new entrants and other
power impact over company’s business.

REFERENCES
Books and Journals
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