Business Strategy Report: An Analysis of Marks and Spencer

This report provides a comprehensive analysis of Marks and Spencer's business strategy, focusing on its competitive position within the retail industry. The executive summary highlights the company's objectives, which include satisfying customers through quality products and services, and achieving a competitive advantage. The report delves into strategic management, emphasizing the importance of long-term planning and the formulation of policies to guide the company towards its goals. It includes an overview of Marks and Spencer, its mission, vision, and objectives, along with a revised mission statement. The core of the analysis involves an industry analysis using Porter's Five Forces framework to assess the competitive environment. Furthermore, the report incorporates SWOT and PESTLE analyses to identify internal strengths and weaknesses, as well as external opportunities and threats. The report also discusses the bargaining power of buyers and suppliers, the threat of new entrants, and the intensity of competitive rivalry. The SWOT analysis examines the company's strengths, such as brand recognition and a wide product variety, and its weaknesses and potential threats. The PESTLE analysis evaluates the impact of political, economic, social, technological, legal, and environmental factors on Marks and Spencer's business activities.

Managing Business
Strategy

EXECUTIVE SUMMARY
Managing business strategy includes creation and implementation of plans for
achievement of goals and objectives. It includes long-term and short-term strategies of
organisation to attain desired objectives. Top management take this initiative on behalf of
business owners. This report is based on Marks and Spencer, it is a giant company in retail
industry. It offers wide range of products and services to its potential customers like clothing,
home furnishing and luxurious food products. Main purpose of this company is to satisfy its
customers by providing quality products and services. Report also cover various factors
with the purpose of attaining competitive advantage from its rivals. In this Porter's Five Forces
framework is includes which help company to determine the competitive analysis in retail
industry. This will aid in making their performance competitive. SWOT analysis and Internal
Factors Evaluation Matrix of Marks and Spencer is also includes in this report through which
company determine the opportunities and threats for attaining success at market place. At last
PESTLE analysis is also covered in this project for determining the impact of external factors on
business and its activities as well.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

INTRODUCTION
Business strategy is consider as a long term action and plan through which company can
easily attain a specific goals and objectives. Along with this, strategic management is a
continuous planning, monitoring and analyzing all the activities of business organization to
meet final goals and objectives. By managing strategy, company can easily enhance the chances
of achieving desirable results which directly contribute in establishing competitive brand image
of company at market place. Mainly, it involves implementation and formulation of all the
major goals which set by the top management with the purpose of improving overall
performance level (Achtenhagen, Melin and Naldi, 2013). Strategy management also provide
direction to company at the time of operating its activities. This will help in attaining set
objectives in appropriate time frame. Present report is based on Marks and Spencer, is a British
multinational retail company in UK. The main headquartered of company in the city of
Westminster, London. Mainly, company sell clothing, home products, and luxury food products
to large number of customers. It was established by Micheal Marks and Thomas Spencer in
1884. In this organization around 84939 workers are execute their activities. Currently company
has approx 979 stores in all over the world. In addition of this, retail industry is play vital role in
the UK economy. In 2016, retain industry generated approx £358billion sales and also consider
one of the largest private sector employer in the UK (Overview of the retail sector in the UK.
2017). It also various employment opportunities to local people which directly contribute in
enhancing economic growth of the country. In retail industry analysis various companies are
operate their business like Aldi, ASDA, Morrison, Tesco and many more. This industry is an
indicator which define that how the wider economy is performing and the overall strength of the
customers spending in the retail industry.
This report cover company mission, vision and objectives with recommend revised
mission statement. Along with this, industry analysis like Porter's five forces framework of
business organization. SWOT and PESTLE analysis of company is also mentioned in this
project.
MAIN BODY
Strategic management is consider as an important aspect which provide better direction to
the business organization and also includes policies and plans to attain set goals and objectives in
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appropriate time frame. Thus, it is vital for company to manage their business strategy because it
support firm at the time of attaining long term targets. Mainly, it involve the formulation of plans
and policies to focus on providing guidance to analyse the environment in which company is
operate their operational activities (Bentley, Omer and Sharp, 2013). In organizational context,
Marks and Spencer is biggest and famous retail company which operate their business with the
purpose of enhancing their brand image at market place. Mainly this company sell clothing,
home products and food products to large number of customers for attaining their higher
satisfaction. By managing business strategy, company easily implement and formulate plans and
policies to operate their business activities to attain long term goals and objectives in an
appropriate time frame. In context of this, business strategy is refer to the process by which
company sets out to attain its predetermined ends goals and objectives. Mainly, it can be simplify
as a long term planning which help company to improve their performance level and at the same
time also increase the chances of establishing positive brand image at market place. It is a
summary of how a company will attain its goals and also meet their expectation in upcoming
time frame. With the managing of business strategy, Marks and Spencer can easily attain
competitive advantage from its rivals.
Marks and Spencer is a famous company which operate their business in retail industry
with the aim of providing quality products to its large number of customers for attaining their
satisfaction. For this company serve quality food products, clothing and home products to
customers as per their needs and wants. This will help in enhancing positive brand image of the
company at market place (Bharadwaj and et. al., 2013). In this context, company also having
their mission, vision and objectives to promote their positive brand image. All these statement
help company to grab number of opportunities to established their competitive image at market
place.
The main mission of Marks and Spencer is “to do inspirational quality accessible to
others.”
The vision statement of Marks and Spencer is “to become standardise when others are
measured.”
Both statements are played a vital role in determine the actual growth of the company
because these are evaluate the present and future performance of business at market place.
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Furthermore, Marks and Spencer also set their objectives which is related with its day to
day activities for improving their quality performance against their rivals. In this, the main
objective of Marks and Spencer is to produce quality products for their customers for attaining
their satisfaction. For this company needs to evaluate their needs and demand towards the
company products and services (Biemans, 2018). This is the main reason that company can
easily improve their performance level and attain competitive advantage as well. For attaining
the same, company also focus on their promotions and marketing campaigns to improve their
sale within the market. With the help of this, company easily increase customer awareness
towards its products and services. This will aid in improving public relation and at the same time
also make coordination of advertising campaigns in market place.
For improving growth of the company, revised mission, vision and objectives is crucial
which will develop the brand image in-front of customers and competitors as well. In this
company should revised their mission which is “ To improve customer base by serving them
valuable and quality products as per their needs.”
On the other the revised vision of Marks and Spencer is “ To become a leading retail
company in market place by sustain their brand image for longer period of time.” With the
assistance of this, company may enhance their market share and also grab customer attention
towards its products and services.
In addition of this, objective of Marks and Spencer is to manufacture quality products and
serve it to customers at affordable cost (Blackburn, Hart and Wainwright, 2013). This will help
in inviting more and more customers within the company. By this selected company can easily
make strong customers base and at the same time also capture market share from its rivals.
Industry Analysis
It is consider as an important tool that help business organization to evaluate as well as
understand their actual performance as compare to its rivals. With the use of this tool company
can easily prepare strategic planning which contribute in attaining set long term goals and
objectives in appropriate time frame. In this context, Marks and Spencer use Porter's Five Forces
Framework with the purpose of analysing industry environment. This type of model is consider
as a strategic management tool which used by company to analyse that how it influence
profitability and strategy for attaining long term goals in market place (Porter Five Forces
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Analysis of Marks and Spencer. 2017). As it includes five components which may help in
analysing as well as measure the competition at market place. All these are as follows: Threat of new Entrants: As per retail industry, the market has low threat of new entrants
because capital investment is high to enter intro the market. Marks and Spencer has
strong brand image which may also increase customers loyalty. This is the main reason
that new entrants face high competition at market place for sustain their image. Thus, it is
important for selected company to make their products unique and valuable products and
service for their potential customers. So that they can easily improve their performance
and attain competitive advantage from its rivals as well. This will increase the
profitability level of the company at market place. Threat of substitute products: Marks and Spencer operate in retail market where
innovation is paramount to maintain their positive brand image. Along with clothing
business the threat of substitute products is high because number of companies are offer
same clothing products to customers at a low cost (Brown and Osborne, 2012). This will
negatively impact on profitability level of the selected company. Due to this, customers
are shifting their preferences to another company. Bargaining power of buyers: Marks and Spencer operate in retail industry in which
customers bargaining power is high because customers wants to buy high quality
products by paying low cost as possible. This will negatively impact on profitability level
of Marks and Spencer. Thus, it is important for company to focus on customers needs and
wants to provide them quality products as per low price. With the help of this company
can easily enhance heir market share and profitability as well. Bargaining power of suppliers: In retail market number of companies are operate their
business and buy raw material from number of suppliers. This is the main reason that
bargaining power of suppliers is high. In addition of this, suppliers in dominant position
can reduce the overall margins of Marks and Spencer in which company can earn in
market place.
 Intensity of competitive Rivalry: In retail industry competition is very high because
number of companies and supermarket sale home products, clothing and fashion
products. It increase the competition in market place (Kaplan and Mikes, 2012). In this
context, company also growing its business on online platform in order to increase their
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profitability and market share as well. By building a sustainable differentiation, Marks
and Spencer can easily tackle intense Rivalry among all the existing competitors in
market place.
SWOT analysis of Marks and Spencer: It is an important aspect which help business
organization to analysis internal environment. With the assistance of this, Marks and Spencer can
easily evaluate their overall performance at market place (Klettner, Clarke and Boersma, 2014).
For this, company undertake SWOT analysis to determine their actual as well as current
performance:
Strengths:
 High recognition of the brand: Marks and Spencer is the largest and famous retail
company in UK and also known by its quality products and services. Along with this, the
brand value is high so that customers are also prefer to buy its products and services. This
is the main reason that company easily capture larger market share form its rivals.
 Wide variety of products: In market place, Marks and Spencer had a number of products
in their stores through which customers can easily select the best one and satisfy their
needs and wants. For example, company serve home products, luxury products and
clothing as well to its customers as per their needs and wants.
 Large number of stores and outlets: Marks and Spencer has approx 900 stores in over the
world. It increase the overall sales of the company by offering quality products to large
number of customers (Schaltegger, Lüdeke-Freund and Hansen, 2012). With the
assistance of this, Marks and Spencer easily maintain their positive brand image at
market place.
 Popular design brands: Marks and Spencer has various range of brand which help them in
increasing overall performance at market place. Due to this, company enhance their
positive brand image at market place.
Weakness:
 Bad publicity as non trendy store: The main draw back of Marks and Spencer is its out
fashioned and non trendy. It reduce the market share of the company at market place and
also reduce their customers base (Schaltegger and Burritt, 2014).
 Manual working increases the costs: Marks and Spencer follow new and innovative
techniques which increase money, time and many more. Basally, implementation of new
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technologies help in increase productivity but at the same time company fail in utilising
the technologies in ineffective manner which increase the cost of manual cost.
 Strong competition: One of the main weakness of Marks and Spencer is strong
competition from other retail brand. It related with limited market share. In this context,
Tesco, ASDA, ALDI and many more companies are also having strong image at market
which may reduce the customer base within the company (Scholes, 2015).
Opportunities:
 Expanding their brand: Marks and Spencer can expand their business in India and China
which will increase the chances of attaining success in market place. As it invite new
customers towards its products and services which may aid in making brand image
competitive.
 Develop website: Marks and Spencer can develop their personal website from which they
can easily invite large number of customers towards its products and services by giving
them relevant information. This will increase the chances of attaining success at market
place.
Threats:
 Other retail stores: It is one of the biggest threat for Marks and Spencer because number
of retail stores give high competition in market place. It reduce profitability level of the
company and at the same time also decrease customers base within the company.
Internal Factors Evaluation Matrix for Marks and Spencer:
IFE matrix consider as an important strategic tool by which Marks and Spencer can easily
perform internal audit. Mainly it help in analysing internal functional areas of business
organization to improve overall performance level of the company at market place (Spender,
2014). In this context the IFE matrix of Marks and Spencer can be understood by following
description:
Key internal factors Weight Rating Weighted Score
Strength
High recognition of the brand 0.07 5 0.35
Wide variety of products 0.1 7 0.7
Large number of stores and outlets 0.09 6 0.54
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Popular design brands: 0.05 9 0.45
Weakness
Bad publicity as non trendy store 0.1 2 0.2
Manual working increases the costs 0.08 3 0.24
Strong competition 0.05 1 0.05
PESTLE analysis:
It is also an effective framework which help business organization to evaluate the impact
of external factors and its affect on business activities as well (Steers and Nardon, 2014). By
examining this factors Marks and Spencer can easily analyse their actual position at market
place. Along with this, it is also reduce the future organization related risks in order to improve
overall performance at market place.
Political factor: These are rules and policies made by government. They create different
regulations for different business and industry. It include- labour law, trade policy, tax policy,
political instability or stability etc. Marks and Spencer was first company who achieved fair
trade policy route. It has become powerful company in retail industry and makes it difficult for
other competitors to enter in industry. VAT is added tax which is paid by company to
government. If government increases rate of VAT than it would reduce income of firm.
Economic factor: It indicates performance of economy which has direct impact on
company's performance. Change in economic conditions has long-term effect on organisation. It
includes- interest rate, inflation rate, foreign exchange rate, pattern of economic growth. Marks
and Spencer is struggling with other retailers for rise in price due to impact of Brexit on
currency.
Social factor: These factors study social environment of market and these are social
beliefs and shared norms of population. These are interest of peoples which directly affect
market position of company. Marks and Spencer are receiving negative reactions from
population due to product recall. Company should appeal to different social classes and it has
modified it self according to needs and wants of their potential customers.
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Technological factor: Marks and Spencer has good strategic position at market place
which help them in improving their brand image (Trimi and Berbegal-Mirabent, 2012). Constant
evolution is technologies provide better support to business organization to improve their
efficiency level. In context of Marks and Spencer, company has strong online presence and
social media which support them at the time of serving quality products and services to its larger
customers. In addition of this, customers are technologically focused and also use mobile
commerce to purchase company products and services. It provide opportunities to Marks and
Spencer to take advantages to enhance their profitability level at market place.
Environmental factor: Marks and Spencer is one of the sustainable brand in the market.
Along with this company also offer quality services and implement Plan A. In this company has
adopted with the purpose of make environment Eco-friendly (Turner, Swart and Maylor, 2013).
This will indicate for the development of sustainable products which may help in improving the
brand image of the company at market place.
Legal factor: It is also important for Marks and Spencer to follow all the legal factors
while operating their business activities. With the help of this company can easily maintain their
ethical performance and also improve their brand image. As there are some legal factors such as
Health and Safety acts, equal pay act, discrimination act and many more. All these are
information for Marks and Spencer to follow for enhancing their performance level. With the
assistance of this, company capture larger market share and at the same time also make their
performance competitive.
Critical and integrated analysis
As per above mentioned factors it has been analysed that all the factors that implement
within the report is more important for business organization to evaluate the competition at
market place. It also support company at the time of preparing business strategy within the
organization. For attaining the same company should set their clear mission, vision and
objectives to draw a outline. By this Marks and Spencer can easily improve their performance.
Along with this, Porter's five forces framework is effective for determine the competition at
market place. In retail industry, the competition is very high because number of strong
companies operate their business in market place (Veit and et. al., 2014). Thus, company needs
to make their quality products to take competitive place. SWOT analysis of Marks and Spencer
also contribute in determine that company has strong presence in market place which help them
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in reducing the threats and weakness. Along with this opportunities are also identifying like
expanding in new market help in increasing the market share and profitability as well. For
analysing the impact of external factors, company also use PESTLE analysis. This will
contribute in reducing the chances of arising any kind of issues and at the same time also
improve the performance level. In this context, for formulation of strategy, Michael Porter's
Generic Strategies for competitive advantage. It can be understood by following points:
Cost Leadership: Company use this strategy to capture more market space by reducing
product cost. Advantage of this strategy depends industry to industry. Marks and Spencer can use
this strategy by achieving Economies of scale, innovation of new technology and access to raw
material at low cost. By this company can achieve competitive advantages and can attract more
customers by reducing their cost (Zorn and wt. al., 2014). They can provide products to their
consumers at a lower price than its competitors. By using it organisation can attain cost
leadership in industry and can outperform in industry.
Differentiation: organisations use this strategy to provide different products to their
customers than its rivals. This is very useful when target customer is less price-sensitive and
have very limited needs and the product is hard to imitate for competitors. Marks and Spencer
can use this strategy to become more profitable by providing unique products to consumers. This
strategy includes use of Intellectual properties, experts and innovative processes in order to
maintain uniqueness of its products and services. Company can set premium prices for its
products, which can increase revenue and loyalty of consumers.
Focus: This type of strategy is focus on the choice of competitive scope in industry
where company operate their business activities. Mainly, focus strategy includes two variants
like: cost ficus and differentiation as well.
These strategies are appropriate for company to attaining competitive advantage from its
rivals. In this context, Marks and Spencer can use cost leadership in which they sale their quality
products at a lower cost with the aim of attaining competitive advantage. With the use of this
strategy, company can easily improve their performance and at the same time also increase the
chances of capturing customers attention towards their products and services.
CONCLUSION
From the above mentioned report, it has been concluded that managing business strategy
is more important for Marks and Spencer to attain long term goals and objectives. Mainly,
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business strategy is relate with company mission, vision and objectives through which company
can increase the chances of establishing positive brand image at market place. For capturing
market share and customers attention, company needs to effectively implement and formulate
strategies. This will provide better support to company at the time of operating their operational
activities. With the implementation of business strategy business organization may easily
established their competitive brand image from their rivals. In context of this, Marks and Spencer
use Porter's Five Forces framework for their industry analysis with the aim of understanding the
competition in market place. It may help in evaluating the chances of attaining competitive
advantage. Along with this, SWOT analysis and internal factors evaluation matrix of Marks and
Spencer is also help in evaluating the actual strength and weakness of the company. Through
which business organization determine the opportunities to enhance their positive image.
PESTLE analysis of Marks and Spencer also contribute in determine the impact of external
factors on business activities and at the same time also reduce the risks within the company.
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strategy and owner-manager characteristics. Journal of small business and enterprise
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Scholes, M. S., 2015. Taxes and business strategy. Prentice Hall.
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Overview of the retail sector in the UK. 2017. [Online]. Available
through:<https://www.prospects.ac.uk/jobs-and-work-experience/job-sectors/retail/
overview-of-the-retail-sector-in-the-uk>.
Porter Five Forces Analysis of Marks and Spencer. 2017. [Online]. Available
through:<http://mba-lectures.com/marketing/1620/porter-five-forces-analysis-of-mark-
and-spencer-ms.html>.
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