Strategic Management: Analysis of Marks and Spencer's Strategies

This report provides a detailed strategic management analysis of Marks and Spencer, a British multinational retailer. It begins with an introduction to strategic management and its importance, followed by an overview of relevant literature on strategic management theories and models, including SWOT analysis, Porter's Five Forces, Porter's Generic Strategies, Value Chain Analysis, and McKinsey's 7S model. The main body of the report applies these theories and models to Marks and Spencer, conducting a SWOT analysis, an analysis using Porter's Five Forces, and a Value Chain Analysis. The report then critically analyzes the success of these strategic management approaches, considering the company's strengths, weaknesses, opportunities, and threats. Finally, it concludes by summarizing the findings and offering insights into the effectiveness of Marks and Spencer's strategic decisions.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Overview of the literature relevant to strategic management theories and models.....................4
Application of theories/models of the chosen company..............................................................5
Critical analysis of the success of strategic management theories/models of the chosen
company.....................................................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................15

INTRODUCTION
Strategic management is all the necessities an organization needs to meet its goals and
objectives Strategies management is the planning, monitoring, analysing and assessment. Any
change in the surrounding of the business will require marks and Spencer’s to assess their
strategies for achieving success. Marks and Spencer’s is a British multinational retailer public
limited company with its headquarters in London England. It was found in 1884 by Michael
marks and Thomas Spenser which deals in different product lines like clothing, home and food
products. The company is also listed in the London stock exchange.
Marks and Spenser currently operates around 959 outlets across UK among which 615
stores only deals in food products. By doing its television advertising Marks and Spencer also
delivers online food. Marks and Spenser became the first British retailer to have a pre taxation
profit over one billion. Currently Marks and Spencer’s operating the number of location is 1463
(2019).
Key people of the company are Archie Norman Chairman of Marks and Spencer and
Steve Rowe chief executive of Marks and Spencer’s. Currently Marks and Spencer’s dealing in
different brands are as follows ; per Una, autograph limited, Rosie, blue harbour, M&S
collection, M&S energy. Number of employees currently working in Marks and Spencers are
around 80,000. Marks and Spencer has adopted different management strategic approaches for
the better working environment of the company which includes of better health care of the
employees and many beneficial services for the employs, which will result in the excellent
working of the company (Knight, Daymond, and Paroutis, 2020).
Marks and Spencer as a company tries to fully satisfy the needs and wants of the
customers with using high quality of material and high quality services for the satisfaction of
customer needs and wants. Marks and Spencer’s has organized a social awareness program in
which it is improving its responsibilities towards the roles and responsibilities towards the
environment. The company has better managed its marketing skills with its product line to give
advertise possible for the best promotions of the products Marks and Spencer deals in.
The company has adopted efficient ways for the promotion purpose now, with the help of
internet Marks and Spencer has been doing successful online marketing on different platforms
and with different strategies like joint venture. Marks and Spencer promote its brand value

among the customers for the better results. It has also adopted different online strategies where
the company's account is being handled on different social media platforms and give reply on
customers feedbacks, comments weather it is positive or negative, the company's strategy is to
answer it very positively to satisfy the customer and improve its goodwill and market value in
the market. Marks and Spencer has organized its functioning in such a way that it is easy to
operate the company with more productivity (Kools and George 2020).
The most effectively working department of Marks and Spencer is its food and clothing
line which is famous all over the world the quality of its clothing material is among the best
known manufacturers the brand is widely using its product to create a brand awareness among its
present and future customers. Marks and Spencer is consequently working for the betterment of
its products and service. Present report will lay emphasis on Overview of the literature relevant
to strategic management theories and models it will also cover Application of the
theories/models of the chosen company and the Critical analysis of the success of strategic
management theories/models of the chosen company.
MAIN BODY
Overview of the literature relevant to strategic management theories and models
As per the view of Dvorský and et.al. (2020) Swot analysis, it provides the information
related to the company to identify its strength weakness opportunities and threats for the better
understanding. The term swot analysis refers to the planning, building, strategic of the
organization to meet its goals.
As per the view of Ketchen and Craighead, (2020) porters five analysis, the theory
includes of five points which are as follows it is a method for analysing the competition in
business market. Potential of new entrants into the industry, power of suppliers, power of
customers and threats of substitutes.
As per the opinion Wang and et.al (2020) porter’s generic strategies, basically the theory
is used for gaining the competitive adventure in this the organization focuses on cost and their
diversification strategies this model assist company in growing and increasing profit and
revenue.
As per the opinion of Barbosa, Castañeda-Ayarzaand Ferreira, (2020) value chain analysis,
a firm operating in a specific field or industry containing a set of activities taking in use of the

activities for the better results in the market. Decision making of the company becomes better,
the logistic department works more efficiently under this analysis from importing the goods to
the final goods' consumer receive comes under this.
As stated by Shaqrah, 2018 7S model of McKinsey involves different elements of the
organisation in which Hard S and Soft S are included and they are interconnected by shared
values in organisation. This helps in identifying what are positive and strong elements and what
weak and negative factors in different elements are.
Application of theories/models of the chosen company
Swot analysis of Marks and Spencer
STRENGHT
M&S is one of the largest leading company in its field and having the higher sales in the
supermarket of UK. As M&S is leading brand in the world and compete with their competitors
with maximum profit. M&S is organizing some training and development programmes to their
employees, so that the employees can motivated to achieve the goal and contribute their 100% to
the organisation workflow. M&S is also developing new products and innovate such products so
that their market share will improve and achieve the best position in the supermarket of UK. As
in M&S the customers are highly satisfied with the services and product provided by the firm
and it takes care of the customers' relationship management. M&S is also focusing on the strong
brand portfolio so that they analysis the opportunities and can be useful for the new product
form.
M&S is successful at launching any new product in the market and having a good return on it.
WEAKNESS
Weakness are the improvement part of the company while using the SWOT analysis
strategies. As M&S is not highly successful with the integration of different work culture as it is
successful with the small companies' integration. As the ratio of profitability and net contribution
of M&S is below the average range of the industry. While launching a product there is a gap in
product range this is an advantage for the competitors for holding the position in the market
place. And also at the time of launching the new product get succeed in part of sales but can lose
the positioning which is not cleared the competitors may attack to this loophole.
OPPORTUNITIES

M&S is introducing a new business for expanding their growth. As they might have
launch the online shopping and offer home delivery services. There is a joint venture opportunity
occurred where the M&S stores are underperforming in which the local companies can help the
market performance in such regions. With the allowance of the new technologies and
government agreement M&S having an opportunity to enter into the new market. In the new
market the M&S practices the different pricing strategies for the new technologies. As M&S
having a great new opportunity for all the members of the organization to gain market share with
new technologies.
THREATS
Threat generally means change in the market, things which are affecting the business and
it depends on an external environment as threat cannot be controlled but still aware of such
threats so that new plan can be developed or established. As threat can be occurred as
development of new technologies by the competitors in the industry for long term of future. Over
the years the firm can produce or launch lots of products in the market and the supply of such
products is not regular it will create a threat to the firm for losing there high sales over the
period. With increasing the growth and performance the M&S market position is on threat as it's
the biggest competitor in the market.
Porters five forces of Marks and Spencer
Supplier power: The supplier power of M&S is low as the production of M&S is on
customer requirement and needs M&S produce limited amount of products which meets the
market and fulfil the customer requirement. The number of supplier of each essential input unit,
product and service depends on the production rate of M&S. The supply of material depends on
the needs and wants of customer because the production is done on the basis of the requirement
of the specific choice and type of product.
Buyer power : The buying power of customer is high in the comparative market as the
requirement of such products and service is high and there are competitors in the parallel market
which produces same goods and services by which there is a competitive environment in the
buying market because the number of buyers in the market for the product and service are very
high comparatively. The change in individuals buying behaviour depends on the cost of product
to the buyer of switching from one supplier to another.

Competitive rivalry : with time the rivalry has increased in the market as other leading
brand has occupied the consumers in the market. Companies like Tesco, Debenhams, john lewis
are great competition in the leading market. These companies work on same product line which
attract the customers from the price and quality point of view and breaks the market and divert
the consumers. The competitiveness in the existing firms can limit profits and lead to cost-
cutting. Improvements can be seen in the marketing, advertising and innovation.
Threat of substitution : There is thereat of substitution in the industry as the competitors
have adopted different strategies for promotion of the product by change in packing style,
attractive product design, change in product size.
Threat of new entry : new entry of competitors in the market with different type of
marketing some competitors selling product online which would affect the offline markets. The
more involvement of competitors in the market less the profit potential. Due to the low barriers
to entry new competitors are Abel to easily enter the market.
Value Chain Analysis of M&S
Value chain analysis involves discussing different primary and supportive activities that
are undertaken in an organisation. Value chain analysis of M&S is as follows-
Primary Activities
Inbound Logistics- Inbound logistics is a process through which M&S acquires and receive
material and goods from suppliers. These are those material and goods that are used to create
final and end product which is sold to customers (Mustafee and Fishwick, 2017). Once material
has been received later goods are stored in warehouse. Effective supply chain is required in order
to ensure effective inbound logistics and supply chain management of M&S is highly effective.
In addition to this M&S is also focusing in sustainable supply chain.
Operations- Operations involve practices through which raw material and goods are converted
into final goods of M&S. M&S works on providing high quality products and experience to
customers and this is why it works on creating both high quality products and services. In order
to provide high quality products and services it uses advanced technology and also uses hi-tech
distribution centres.

Outbound Logistics- Outbound logistics of M&S involves distributing goods to customers. This
involves distributing from manufacturing facilities to retail stores and in its online operations
M&S distributes products to customers and this is known as outbound logistics. Supply chain
plays important role in outbound logistics and M&S is working on sustainable supply chain.
Marketing and Sales- Marketing and sales of M&S focus on quality and style that M&S
provides to its customers. Concerned with sales, it takes place in different forms in which offline
online medium of sales are included.
Service- This involves services that are provided to customers after products have been sold.
M&S is increasingly focusing on and investing in customer service. In its online services M&S
free delivers products that are above £50.
Supportive Activities
Firm Infrastructure- M&S employs high quality and advanced infrastructure and this
infrastructure of M&S provides high quality and effective experience to customers.
Human Resource Management- In its human resource management M&S focuses on employee
training through which they can perform effectively (Dooley, 2017). M&S employs around
80000 employees and all the employees are motivated through both financial and non-financial
motivations.
Technology Development- For every organisation technology has become very important for
sauces and sustainability and M&S is focusing on technology and is highly investing in
technology development.
Procurement- Procurement is about purchasing material and resources at best prices and
ensuring best quality and M&S works with several suppliers in order to ensure effective
procurement.
Porter’s Generic model for M&S
Application of generic model for M&S is as follows-

Cost Leadership- Cost leadership strategy focuses on being lowest cost producer in industry and
in this, products are indifferent and available at low prices. This is the reason that M&S does not
adopt cost leadership strategy.
Differentiation- Differentiation strategy involves that products of company are highly different
and are of high quality (Abdolshah, Moghimi and Khatibi, 2018). M&S adopts this strategy in
which its products are of high quality and it also focuses on differentiation of its products.
Cost focus- In this strategy company adopts cost leadership strategy and its focus with this
strategy remains narrow in terms of customers and market.
Differentiation focus- Differentiation focus involves adopting differentiation strategy and
applying this strategy for a narrow market and customers. For example- M&S is a multinational
organisation and in certain country it provides specifically high quality and differentiated or
luxury products.
McKinsey’s 7S model for M&S
Structure- Structure is way in which organisation is structured and hierarchy of organisation and
chain of command in an organisation. M&S follows a flat organisation structure
Strategy- Strategy of M&S is covering wider market share only among the rich people so it
follows cost competitive strategy. This is the reason that M&S adopt high price strategy and in
order to ensure value of high price strategy it provides high quality and differentiated goods to
customers.
Systems- M&S follow a flat organisational structure and this is why decisions in M&S are
influenced by different employees at different levels (Cox, Pinfield and Rutter, 2019). In this
structure decisions are contributed by all employees of the organisation.
Skills- Skills in M&S are required on different basis because M&S is a big multinational
organisation and this is why it involves different operations and activities. This involves skills
required for finance, HR, Customer services, customer assistance and marketing operations.
Having these skills in organisation ensure its smooth and effective operations.

Staff- In relation with staff M&S requires around 80000 employees to complete organisational
activities and functions. This involves employees and staff working in different areas of the
organisation.
Style- Style is concerned with style that management and leader follow within M&S to interact
in organisation and actions that they take and their value. In M&S participative or consultative
leadership style is followed in M&S. In this style decisions made and actions taken are result of
consultation with organisational members.
Shared values- Shared values refers to those norms and behaviour that guide actions and
behaviour of employees within M&S (Gechkova and Kaleeva, 2020). These values of M&S
involve quality, value, service, innovation and trust and these guide actions and behaviour of
employees within organisation.
Critical analysis of the success of strategic management theories/models of the chosen company
SWOT Analysis
Swot Analysis of M&S helped in identifying different strengths and weaknesses of M&S.
In addition to strengths and weaknesses SWOT analysis also helps in identifying potential
opportunities and threats for an organisation in its external environment. In this model one of the
important thing to consider is that opportunities and threats are not very reliable because they are
determined on the basis of organisational strengths and market trends in which organisation
operates (Palo, Kripalini and Sanghamitra, 2020). However strengths and weaknesses are reliable
and are fixed. Strength analysis helps in identifying what are the factors that help organization in
effective achievement of its goals and objectives and what are the barriers that can affect
achievement of goals negatively. However SWOT analysis does not provide any kind of insights
about how the strengths and weaknesses can be used by organisation.
Value Chain Analysis
Value chain analysis model applied on M&S is a very important strategic management
model. This is because strategic management involves different activities and their strategic
application for achievement of organisational objectives. Value chain analysis helps in
determination of activities that are helping organisation in in achievement of its objectives. For

example, Logistic activities of M&S both inbound as well is outbound are strengths of M&S that
can help organisation in achieving its objectives (Rosales and et.al., 2017). However it is also
important to consider that value chain analysis includes several activities both primary as well as
supportive and in case supportive activities are not effective they can create barrier for using
primary activity as strength.
Porter’s 5 Forces
Porter 5 forces model is applied for inform about different comparative element in
industry affecting Marks and Spencer and its competitive position. One of the most important
drawback of porter’s five forces is that analysis and information is mainly very general. This
means that it focuses on overall industry rather than one specific organisation. In addition to this
analysis of this model is also not very suitable for organisations that are complex and specifically
organisations like M&S that operate in complicated environment of different economies and
countries (Bruijl, 2018). However there are several reasons because of which porter’s five forces
and very useful strategic management model. Porter’s five forces enables M&S to gain insights
of industry in which it operates and overall impact of organisations operating in Retail Industry
on M&S.
Porter’s Generic Strategies
This model is also important strategic management model. This is because generic
strategy that an organisation adopts becomes basis for their future strategic and action in strategic
management. Strategies that M&S adopt are differentiation strategy that focuses on high quality
and differentiation of products. There are several benefits of this strategy as it allows company to
charge higher prices on the basis of effective quality and differentiation that it provides to
customers. In addition to this differentiation strategy also helps in creating a distinct image for
brand and its products. This is why M&S is known as a brand providing high quality and
differentiated product to its customers (Islami, Mustafa and Latkovikj, 2020). However one of
the biggest disadvantages of differentiation strategy is that it charges high prices and this is why
market share of organisation remains Limited because premium products can be afforded by
certain segments of customers.
McKinsey’s 7S model

This model helps in identifying strengths and weaknesses of different elements of an
organisation and of this model for M&S helped in identifying different elements of organisation
and their impact on its competitive position and performance (Cox, Pinfield and Rutter, 2019).
This model has Organisation in enhancing its effectiveness and aligns departments and processes
within an organisation. However this model legs practical support and also ignores external
environment affecting quality of analysis.
CONCLUSION
On the basis of above discussion it can be concluded that strategic management is an
ongoing process of identifying and analysing different factors that effect achievement of
organisational goals and objectives. Through strategic management organisation can identify
both positive as well as negative sites of environment in which business operates. In order to
analyse different environment of business there are different models that organisation can utilise.
The theories and models were discussed and report and in order to analyse internal environment
of organisation and determine its opportunities and threats SWOT analysis was utilised. Another
model discussed in report was value chain analysis through this model different activities of
organisation are analysed in order to know about what are the activities that add value in practice
of business. Later porter’s five forces was discussed to know competitive environment in which
organisation operates. In order to analyse competitive position of an organisation different five
forces are analysed to understand positive as well as negative factor in each of the force affecting
competition of organisation. In addition to this report also discussed about porter’s generic
model. This model involves strategic advantage of an organisation on the basis of which it gains
competitive advantage in industry. Strategies involved in generic models are cost leadership,
differentiation, cost focus and differentiation focus. Among these strategies choices and
strategies one or most strategy is adopted by organisation to gain competitive advantage
compared to competitors in industry. This means that Tesco adopted cost leadership strategy
whereas M&S has adopted differentiation strategy for its competitive advantage. Another model
discussed in report was McKinsey 7s model and this model is used to analyse internal
environment of organisation. In this model different elements of an organisation are analysed to
know what are positive and negative sides of each of the elements of organization. It is very
important to understand different models and their application in order to ensure that every