Strategic Analysis of Marks and Spencer: PESTLE and Competitive Forces

This report provides a comprehensive strategic analysis of Marks and Spencer, a major player in the UK retail sector. It begins with an introduction to strategic management and its importance, followed by an examination of Marks and Spencer's past strategic directions. The report then conducts a PESTLE analysis to assess the political, economic, social, technological, legal, and environmental factors impacting the company. A critical discussion explores how Marks and Spencer can attain competitive advantages, considering Porter's Five Forces. The report also examines the probable industry scenario, the extent of strategic drift, and the alignment of mission and vision statements. It further analyzes the company's strategic capabilities, including the business canvas model and implementation strategies. Finally, the report evaluates resource implications and provides recommendations for the company's future strategic direction, concluding with a summary of key findings and references.

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Strategic directions that followed by company in past................................................................1
TASK 2............................................................................................................................................2
Analysis of the company through PESTLE.................................................................................2
Critical discussion of the company to attain competitive advantages.........................................3
Probable industry scenario which facing existing market domain..............................................5
TASK 3............................................................................................................................................6
Extent to which company facing strategic drift...........................................................................6
Mission and vision statement that aligned in the demand of marketplace..................................7
Company strategic capabilities....................................................................................................7
Business canvas model and describe that how company will implement core logic of the
delivers and captures in the market.............................................................................................8
TASK 4............................................................................................................................................9
Strategies which followed by company in the core business......................................................9
TASK 5..........................................................................................................................................11
Evaluate the resource implications and recommendations........................................................11
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic management play very important role in each business. In this aspect, there are
several consideration included to make wise decision. It is important to business owners and
managers grasp to entail to evaluate goals and plans to focus on the effectiveness and efficiency.
Strategic management also considered initiatives to maximise resources and grow its business
(Fynn, Augustine and Garine Wichatitsky, 2016). In this context, present report is based on
Marks and Spencer which is retail sector that increases profitability and productivity. In order to
gain insight information present report covers strategic directions which followed by the business
in the past. Furthermore, it includes critical discussion to attain competitive advantages in the
enterprise. Moreover, strategies are also implemented to understand creativity in the business to
focus on the goals and objectives. At last, report discusses about the recommendation and
implications of the resources that are needed to perform several activities in the business.
TASK 1
Strategic directions that followed by company in past
In respect to considered the strategic position in the company, Marks and Spencer operating
with competitive environment. There are several factors exist that create impact on the business
in the outside the environment. In this aspect, much segmentation such as cloths and home
products considered to deal with the competitors (Steinbach, Holcomb and Cannella, 2017). The
company is very sensitive to technological, social, economic elements. It keeps growing and
challenging trends in the clothing to compete in the market. Key drivers affect to the chosen
business that make changes trends and online purchasing.
Core values of the Marks and Spencer considered as quality, affordability and services
which attack under the competition. There are several retailers such as Top Shop, Warehouse,
etc. that make effective results with better fashionable and trendier designs. It also enhances
good values in the business unit. Food chain such as Tesco, Asda, Waitrose and Sainsbury who
started to froze the foods and readymade food products. They also face challenges from the
several segments to compete with other consideration (Bettis, Gambardella and Mitchell, 2015).
In the Marks and Spencer competitive elements are describes to make high profits and market
share as well. With the help of the differentiation strategy, Marks and Spencer trying to gain high
market share and retain in the market in creative manner. It makes dominance in the areas of
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business to invest money. In recent time, the company consider larger market which included
profits as well. It implies weakness to cutthroat in the world retail. Providing access to quality of
food and clothes accomplish vision. Hence, it make competitive retail environment (Hill, Jones
and Schilling, 2014).
TASK 2
Analysis of the company through PESTLE
Marks and Spencer is one of the biggest retailer businesses in UK. They are providing
several kinds of products and services in different areas of the world through offline and online
methods. In respect to considered effectiveness, it is essential to look towards the PESTLE
analysis through effectiveness of the business increasing in effective manner (Bettis, Ethiraj and
Mitchell, 2016). It also increases profitability and productivity to make systematic results. It
includes following factors:
 Political factors: In the UK, government determines several kinds of rules and
regulations regarding different perspectives such as health, safety, etc. In this way, they
are protecting country through exploitation and planning to reduce hazards, risks
assessment and risk control. When the company not following these rules and
regulations, government take actions strictly for them. Therefore, Marks and Spencer
always follow these rules and maintain standards to keep safety and considered effective
results in health as well (Nerur, Rasheed and Pandey, 2016). The selected company also
alleged to ignore guilty to this which make effective functioning in the business. It impact
positively on the customers and good value created on the products and services in the
enterprise.
 Economic factors: Economic factors also outlook in uncertain which is more likely after
the retail sales. There are several people who spare to buy luxury items such as clothing
and food as well. Marks and Spencer hit with closed number of the stores which make
job cuts 2% for their almost 70000 staff members. It also affect to recession which
overlook to the decisions. Further, the chosen company also make changes in the market
to stay away with recession (Steinbach, Holcomb and Cannella, 2017).
 Social factors: In last some years, there are several changes occurs in the social
consideration which impact on the business. In this consideration, Marks and Spencer
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stretch the brand of the business which considered for selling of the food online as the
multiple channel retailers. It is also maintain competitive business with Asda, Tesco, etc.
In addition to this, the chosen company also looking towards the different aspects which
influence on the way to respond to the current issue. In order to attract several customers,
the company also provide cheap clothing industry in the supermarket. It influence by
social, personal and psychological characteristics, etc.
 Technological factors: In the retail industry, technology is major perspective through
business able to manage their brand and functions carefully. In this consideration, first
brand position also continuously communicated to the consumers. In this way, major
marketers also spend high investment amount on the advertising to create brand
awareness which build preference and loyalty (Fynn, Augustine and Garine Wichatitsky,
2016). Marks and Spencer also considered different types of the advertisement through
they will able to attract customers. In addition to this, on the company website, they
implement bright colours advertisements.
 Legal factors: Legislations are creates positive impact on the customers and create value
in systematic manner. Marks and Spencer carry re training and upgrade it every year.
There are several new legislations and laws have been developing which helps to
maintain legal protection in the country (Hubbard, Rice and Galvin, 2014). Therefore,
business changes their enterprise through tax which makes different things development
amongst many other things. The chosen company also looking to objectives and methods
which need to be changed with new training and going for development. For instance,
Fair packaging and labelling act 1996 determines as the regulation for package contains.
 Environmental factors: At last, environmental factors considered impact on the
business. In this consideration, climate and other environmental issue need to be solved at
workplace. All businesses need to maintain protective activities in the environment which
being pressured to change their ways to the manufacturing of goods (Bettis, Ethiraj and
Mitchell, 2016). Marks and Spencer also established their green policy which develops
positive impact on the environment.
Critical discussion of the company to attain competitive advantages
In order to attain creativity and effectiveness, there are several elements exist that make
systematic promotion in the business. In respect to attain competitive advantages at workplace, it
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is essential to Marks and Spencer to look towards the porter five forces elements. In this
consideration, following are certain consideration included that assists to make innovative results
to attain strategic direction:
 Threat from new entrants (Low): In the retail sector, Marks and Spencer has low threat
of new entrants because there is high capital investment needed to enter in the new
market. This is because, in the market there are several strong brands existing that already
gained customer loyalty (Ginter, Duncan and Swayne, 2018). Marks and Spencer is also
large business in retail supermarket that focuses on the quality product and long
established with well developed network. However, there is barrier to enter other
business still different clothing and food sector exist that considered high competition.
For example, Asda, Tesco, H&M, Zara, etc. They all are considered low price for product
and services through customers could be attracted at workplace. Along with this, there
are several online website also attract customers through providing them low cost on the
product and services (Bettis, Gambardella and Mitchell, 2015).
 Threat of substitute products (High): Marks and Spencer operate their business with
several operations and innovations which helps to attract several customers with one
brand consistent. In this way, company also changing customer base with clothing
business so that threat of substitute products is very high in the market (Nerur, Rasheed
and Pandey, 2016). The company opt premium pricing method in which they charge high
price for products and services that reduce customer base in the market. In the UK
market, there are several businesses exist such as Asda, Tesco, Morrison, Sainsbury, etc.
who developed their high quality of range in the food products that provided by Marks
and Spencer previously.
 Bargaining power of customers (High): In the Marks and Spencer there are several
customers continuously buying products and services. In the several shifts consumer
market is increasing price. It enhances price sensitivity of the customers which seeking
designs and increase preferences of customers (Hill, Jones and Schilling, 2014).
 Bargaining power of suppliers (Moderate): Bargaining power of suppliers towards the
fashionable products and services. In the UK British products are generally affecting to
the retailer. Primarily products oriented strategy considered at a place which is strong
emphasis on the Marks and Spencer. It is beneficial to the time when competitors are
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employing to the customers oriented approach which invest money to building strong
customer relationship in the country (Engert, Rauter and Baumgartner, 2016). On the
other hand, weaker consumer confidence following the Brexit vote which enhance sales
growth and results to cut the price of company and focuses on the consumer needs.
 Competitive rivalry (Low): In the retail sector, Marks and Spencer operate their
functions and operations with strong brand. As results, it is the high competitive business
that growing strongly to face intensive rivalry from the supermarket chain, fashion and
home ware stores. In addition to this, food market of the company is also rivalled from
different businesses such as Tesco, Sainsbury and Asda. Along with this, competitive
retailing going through the major transformation in rising the online and catalogue
shopping (Fynn, Augustine and Garine Wichatitsky, 2016).
Probable industry scenario which facing existing market domain
Marks and Spencer is multinational company which considered several segments to grow
their business in financial consideration. These segments help to make fastest development in the
market. In this aspect, the organisation focus on the key areas such as women wears, etc. It is
significantly develop the market to develop sales. Premium brand runs in more than 63 total
stores. Marks and Spencer plans add more than 8 stores so that online presence platform also
increasing continuously. Online channels also considered as the growth of the medium for the
chosen business brand (Williams, Chen and Agarwal, 2017). On the other hand, the selected
business considered vast majority for increasing its revenue which make brick and mortar stores.
In addition to this, recently Marks and Spencer develop and enhance their functions in
different areas of the world such as India, Australia, etc. It is the largest and fastest growing that
committed to putting the customers in heart of the business. It also helps to make attractive entry
price point to access international brand as well. Brand merchandise is also available in different
nations in recent time so that it increasing effectiveness stores availability in the country (Foss
and Hallberg, 2014). Furthermore, the company also founded over the 130 years in more than
900 stores. Therefore, it can be stated that company has more than 1500 stores located recently in
more than 460 international areas including UK.
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TASK 3
Extent to which company facing strategic drift
Marks and Spencer is one of the largest retailer businesses in UK which focusing on
several kinds of products such as home wares, clothing and groceries, etc. In respect to see
towards the company it is not anything rather than the small market stall to lead the market. On
the other hand, there are good quality of goods and strong reputation serve in the market which
helps to expanding in the global areas of the world (Hubbard, Rice and Galvin, 2014). In respect
to attain successful results, the company make their great success to run their operations and
functions in the market. Increasing competition and failure of the respondents make high success
in the business which enhances external environment results. Strong organisational culture is the
important to make intangible assets o run operations and outcomes after 1990. On the other hand,
increasing competition in the market helps to deal with the several activities that make several
changes to attain creative performances at workplace. In addition to this, competition increases
to look towards fashion and place over the practicality (Gorlovskaya and Ivanova, 2016). In this
time of the aspect Marks and Spencer culture restricted to focus on the customer needs which
resulted to make high market share and effectiveness in the business. In addition to this,
appointment with the CEO considered focus on the facing competition from the high street.
Marks and Spencer currently face the issue and challenge to review core business such as
food and clothing. These sectors are currently suffering dangerous competition in the market of
UK. Clothing line recently performed very well. On the other hand, it persevered to attract
younger who is more fashionable in recently time (Nerur, Rasheed and Pandey, 2016). Beside
this, the company also considered different perspective in to hold on the more traditional
consumer demographics. It has been clear that clothing business driven by the women wear
which develop variety of brands such as indigo, portfolio, etc. In respect to consider in the food
business, difficulties are occurs which impact on the results. Therefore, there is recession and
strong competition from supermarket can be seen. Differentiation is more difficult to cuts the
price less which lends itself with ethical grey area of the supply chain power. As results, porter
five forces help to solve the problem and issue. This framework identify rapidly to make
competitive threat (Bergh, Sharp and Li, 2017).
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Mission and vision statement that aligned in the demand of marketplace
In order to develop creativity, there are several mission and vision of the chosen
organisation aligned in the marketplace. In the business environment, roles and responsibilities
of the people also increasing to attain desired results at workplace (Hill, Jones and Schilling,
2014). Following are company mission and vision considered in the business environment:
Vision: Vision helps to working in goal consideration. It is considered from outside the
business. It helps to develop target market and play several aspects in the business (Fynn,
Augustine and Garine Wichatitsky, 2016). Visions are classified in the following manner:
 Guides decision making and strategy
 Give sense of the future
 Lay down the behaviour guidelines
 Creates platform with the business purpose.
 Reflect the values
 Inspire emotions
Marks and Spencer vision considered standards which measured through the benchmarking.
As results, the business able to deliver creativity and attain more profits in the business. In
addition to this, good quality of products and services deliver that helps to attract customers in
the business in systematic manner (Ginter, Duncan and Swayne, 2018).
Mission: In respect to attain competitive advantages, the company also setting their mission
which helps to make creative results at workplace (Engert, Rauter and Baumgartner, 2016). In
this consideration, it is also reflecting that what considered key purpose of the enterprise. Main
aim and vision of the company is make inspirational quality accessible to other people.
In order to accomplish these vision and mission, Marks and Spencer need to develop
values and belief that included norms in the business. It underpins the policies, objectives and
procedures that are adopted with activity in the enterprise (Aguinis, Edwards and Bradley, 2017).
Main values in the chosen enterprise considered as quality, services, innovations and trust.
Company strategic capabilities
In respect to determines strategic capabilities of Marks and Spencer, value chain analysis
tool implemented that identify several activities and close the organisation that lead to creation of
the product and services. It includes following activities:
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Inbound logistics: Inbound logistics activities considered transport, storage and delivery
of goods into the business. In this aspect, supply chain award considered for implementing the
truly disruptive and creative supply chain. Therefore, the chosen organisation ahead in the
competition in terms of social and environmental impact on the enterprise (Rees and Smith,
2017). There are more than 180 supply chain related with the financial incentives for buying
teams including ethical trade, energy efficiency and sustainable sourcing. It provides creative
financial services in the business.
Operations: Marks and Spencer invest in the multiple brands which increases
effectiveness and considered in-stores bakeries with improve in store customer experience.
Meetings also changing its consumer trends and effectiveness (Trigeorgis and Reuer, 2017). In
the year of 2014-2015, the company is also experienced to face difficulties that can be occurred
in the operations element of the company. Further, investments are also made in the IT systems
which delivered logistic network that deliver better supply chain flexibility into the website.
Outbound logistics: Outbound logistics concern with transport, storage and delivery of
goods. In this aspect, Marks and Spencer determines their products and services in multiple
channels which allow customers flexibility in term of order and delivery options such as online
shopping. In this consideration, British retailer accelerated into the programmer to make their
effective supply chain more efficiently to save money in the business (Chen, Delmas and
Lieberman, 2015). The chosen business is also closed their activities as the smaller regional
warehoused in the National Distribution centre in 2016.
Business canvas model and describe that how company will implement core logic of the delivers
and captures in the market
Marks and Spencer is the international brand which increases their activities to deal with
several aspects in the business. With this regard, it can be stated that clothing is important
consideration in today’s time that helps to attract several customers in the business. Sustainable
consumptions assessed and developed to encompass ideas to carrying capacity (Durand, Grant
and Madsen, 2017). It is similarly equally, contested in the field of sustainable development. It
also helps to improves output of per unit to increases efficiency and considered operations in the
new areas of the world.
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In respect to look towards the above business model, it can be interpreting that the chosen
company operating in systematic manner to attract several customers at workplace. In the each
system of chain, leisure activities fulfil need of each customer through different adding unique
features (David and David, 2017). Retailers of the intermediaries between shoppers and
manufacturers considered sustainable consumption roles which proactively constructed shape
and constraints for the consumers and consumption choices. Further, gatekeeper develop their
good behaviour for attain creative results at workplace. It represents their views for consumer
needs to government. Retailers are also need to influential the link in the production and
consumption chain for the consumer goods like food and clothes. Marks and Spencer considered
long term leader in the clothes retail in the UK. With the longstanding reputation, quality of good
value considered for developing clothing of the customers (Ferlie, Crilly and Currie, 2016).
TASK 4
Strategies which followed by company in the core business
In respect to attain creativity, the chosen business adopts different kinds of strategies that
help to attain competitive advantages. Marks and Spencer is the retail industry which has own
specific competitive structure. It has been analysis that from the porter theory, low cost of
commercial retail enterprise considered which lead to the lower barriers to entry in the retail
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