Strategic Management Report: Analyzing M&S's Business Strategies

This report provides a comprehensive strategic analysis of Marks & Spencer (M&S), a prominent retail giant. It begins with an introduction to strategic management and its importance, followed by an examination of M&S's past strategic direction, focusing on its expansion and product range strategies. The report then applies the PESTLE model to review the external environment, assessing political, economic, social, technological, environmental, and legal factors influencing M&S. A competitive analysis is conducted, comparing M&S with competitors like Tesco and John Lewis, highlighting their strengths and weaknesses. The analysis further discusses strategic drift, its impact on M&S, and the company's mission, vision, and strategic capabilities. The report concludes with an evaluation of resource implications and strategic recommendations.

Strategic management

Table of Contents
INTRODUCTION...........................................................................................................................3
Task 1...............................................................................................................................................3
Strategic direction that the company has followed in past.....................................................3
Task 2...............................................................................................................................................4
Application of appropriate model to review external environment........................................4
TASK 3............................................................................................................................................9
Discuss analysis of strategic drift...........................................................................................9
Task 4.............................................................................................................................................12
Briefly discuss competitive strategies that company follow in order to defend its core
business.................................................................................................................................12
Task 5.............................................................................................................................................15
Analysis and evaluation of resource implication..................................................................15
CONCLUSION..............................................................................................................................17
REFERNCES.................................................................................................................................18

INTRODUCTION
Strategic management is regarded as activities that are related with planning, managing,
organising and monitoring of different resources in order to attain in the course of business
functioning. It is very helpful in formation of strategies and surviving in the highly competitive
environment. Present report is based on M&S that is a famous retail giant in London and they are
having specification on clothing, food products and home products. Present report is based on the
discussion of understand the strategy and different strategic concepts with use of concepts,
models and exploring different Competitive forces that can have a affect on the competitive
position of a organisation (Bryson, Edwards and Van Slyke, 2018). Further there is internal
analysis based on use of appropriate tools to draw relevant conclusion. There is a resource
implication of the selected strategy and there is implication on the organisation based on that
selected strategy.
Task 1
Strategic direction that the company has followed in past
M&S is a organisation that has a core objective of offering best services in terms of high
quality and according to their prices are set, in order to maximise their profits by achievement of
higher customer satisfaction level. The employees in this organisation are having high prices
because of the high quality products that they are offering to their target segment of customers
and it consist of the upper class of society. They are having a higher market share and having
presence in 41 countries apart from UK (“M&S free gifts - misleading marketing strategy,
2020”).
Strategic direction used by M&S In past five years:
M&S has been involved in using their own brand name with a wide product range, they
have expanded their business from their ongoing country UK to other different parts of the
world. Some of the strategies that have been used by M&S in this expansion phase is discussed
below:
 They have made sure that they are establishing themselves in favourable locations that is
high street areas that is attracting more customers because of its prime locations. They
have wide range of products categories that is not limited to just clothing, shoes and
accessories but they have successful established themselves in the food segment also.

 They have used strategies like providing free bottle of wine at their stories in Christmas
in Malta and on other special occasions apart from this several promotional techniques
include a gift voucher. They have opened a cafe area in their stores for their customers
which is helping them in offering wide range of options for their customers to have
recreational facilities while they are shopping.
Task 2
Application of appropriate model to review external environment.
In the present report there is discussion of M&S that is a retail brand dealing in products like
clothes, accessories, shoes etc. presently there is discussion of suitable strategies for the
organisation based on use of macro environmental analysis by use of certain theories as
mentioned below:
PESTLE analysis: In this model there is examination of different external factors that are
affecting the internal functioning and the process of strategy formulation. It can be said that there
are certain elements of this model that are mentioned below:
Political: It is the most important element as it is related with the political factors and
different regulations that have been set by the legal authorities. Government is willing to form
certain rules that are affecting the functioning of M&S (Cassidy, 2016). Such as there has been
higher trade regulations after there has been Brexit referendum this is affecting the functioning of
this retail brand. Further there are certain pricing regulations for consumer services and taxation
policies that have to be compulsorily followed by M&S.
Economic factors: There are some economic factors that are having relation with the
economy of a country it includes interest rate, inflation rate, foreign exchange rate, savings rate.
Micro environment consist of factors that are related with the competition norms of a
organisation.
Social factors: These are the factors that are concerned with the culture and shared
attitude and beliefs of people who are p[art of the target segment of Marks and Spencer. There
are certain social factors that are affecting M&S it includes class structure, education level,
leisure interests, skill level of population.
Technological factors: Technology is changing very fast and it is disrupting the way
industries are functioning. There is a need to understand different technological developments

that can be adopted by M&S such as a complete advancement in the value chain process, impact
of technology on the way products are being offered in external market. Such as bow people are
having more preferences for online purchase then offline visiting of stores so M&S is having
more focus on lunching their new collections in their e-commerce stores retailers than in physical
stores.
Environmental factors: External environment in which business are operating is full of
uncertainties and complications. There is a need to make a careful analysis of the external
environment and make sure that organisation are making some significant contribution toward it.
Such as there is a positive attitude towards green and ecological products that has been adopted
by M&S to support renewable energy (Channonand Jalland, 2016).
Legal factors: There is a specific legal framework such as anti trust law, consumer
protection law and health & safety law that has been compulsorily adopted by the top
management of M&S in the process of formulation of their organisation.

A critical discussion of the company's competitive advantage among its direct competitors
Competitive analysis is a very crucial element as it is used by many organizations. It is
very helpful in gaining of benefits by a organization (David,, David and David, 2017). This
context is used by the top management of M&S to develop certain strategies to deal with their
competitors such as major competitors of M&S includes John Lewis, Tesco, Asda, Aldi etc.
Features/Company M&S Tesco John lewis
Products This brand is mainly
dealing in product like
food, clothing,
accessories, shoes etc.
Tesco has been
successful able to
diversify their
products range in
segment such as
clothing, electronics,
furniture, toys,
financial services that
is providing them a
opportunity to offer
wide range of products
to their customers.
This brand is dealing
in product like
watches, jewellery
housewares, food
services, financial
services etc.
Strengths They are having strong
offerings because of
strong e commerce
infrastructure and a
effective structure of
corporate social
responsibility that is
helping them in
enhancement of their
brand image.
It is the biggest
grocery chains having
presence in different
parts of world and
sufficient network of
suppliers (Papke-
Shields and Boyer-
Wright, 2017). They
are also the largest
employers in UK as
they are offering 743K
John lewis has a robust
strategy that is having
a online presence and
extensive product
offering that is helping
them in attainment of a
significant position in
the market ( DIGITAL
CASE STUDY: JOHN
LEWIS’ SECRET TO
DIGITAL

job opportunities. MARKETING
SUCCESS).
Weaknesses They have to deal with
high competition from
other brands and they
have to protect
themselves from fake
imitation of products
by use of their brand
name.
Tesco is suffering
from a high
competitive pressure
and they also have to
deal with price wars.
There is lack of
international presence
and the ratio of
profitability is also
very inconsistent that
is affecting the long
term performance of
John lewis.
Price M&S is following a
competitive pricing
strategy as they are
using a marketing mix
portfolio in their
products they have
their own house brand
for clothing for men,
women and kids. Their
prices are ranging
between high to very
high range as they
believe that they are
offering a premium
quality of products and
hence they are using a
price skimming
strategy (Nickols,
2016).
Tesco is always
focussing on use of
price leadership
strategy to have adopt
the enter in new
markets.
John lewis is offering
prices according to the
quality of their product
which means they do
not has a particular
specific strategy it
varies according to
requirements (John
Lewis Social Media
Strategy, 2020).
Digital Presence M&S has launched Tesco is willing to John lewsi has used

their digital marketing
campaign for clothing
and home across
mobile, in store and
online stores. They are
also having focus on
digital channels that
consist of Google
advertising and
Instagram advertising
presence.
expand themselves
across e commerce
platforms such as they
are providing a
platform of online
shopping to their
target segment of
customers.
many digital startgeuis
such as they have
provbiede facviliteis of
digital shoppiung as a
important part of the
retail business
strategies and they
have also offered a
consistent experience
to their customers by
having high amount of
investment in digital
marketing techniques.

TASK 3
Discuss analysis of strategic drift
Market is dynamic in nature and which changes according to gradual changes of
environment. Strategic drift is defined as gradual decrease of competitive actions that leads to
enterprise failure to respond to changes that occur in business environment (Yushkova, 2019). It
decrease firms ability to cope up with challenges and to achieve objectives. This is mostly occur
because of less awareness of market and trends. It is is necessary to choose correct measures for
business so that he situation of strategic drift doe not arises. It causes problems for business to
perform in well efficient manner which is needed and required by them to accomplish their
goals. Ignoring this will leads to negative mindset of consumers and shareholders. In reference
with selected entity, they have been facing strategic drift gradually since 1990's because of
change of fashion hub, taste, preferences, etc. The profit was back to 2001 but again it failed to
cope with market. Currently, M& S provide products with simple range but due to new brands
such as Zara, H& M the chosen company has failed to meet up the changing demands of end
users. Through this, their goodwill and sales ratio have been affected at depth.
Managers and sales man need to be more active and aware about emerging market trends.
This will help them in to deal effect of strategic drift and make effective decision making.
Moreover, by focusing on their products will assist them to deal with problem.
Mission and vision statement
Mission- Main mission of company is to access and provide quality of products top
everyone. To achieve their stated mission they deliver range of products at affordable prices so
that customers are able to purchase without thinking.
Vision- Vision of organisation is to be the standard through others can be measured-
Benchmarking. The products range of M & S, have affordable prices which they compare with
other products for betterment. This reflects that to achieve their vision, they focus on quality and
prices. Furthermore, they focuses on measures which are responsible for achieving both vision
as well as mission (Gajere, 2018).
They are able to achieve mission statement as they delivery quality of service but failed
to compete with others. Current demands of customers & market is modern which also means

that selected enterprise need to be follow the trends to survive for longer period of time. They
are to be realistic in nature so that resources are used accordingly.
Strategic capabilities
 The organisation have effective supply chain management for accessing and arranging
raw materials at affordable rate.
 It invests in research & development with motive of creating a change or invention.
 They use correct leadership theories within the management through which they are able
to directs and guide personnel to achieve desired common goals.
 They target potential end users for their products & improves quality at regular period of
time.
The given strategic capabilities shows that M& S use unique strategies for development
of business.
Business Canvas Model-
It is a tool which is used by organisation to prepare and address key areas of business by
implementing visual charts and documents (Hao, 2016). It is essential for entities to use this
model because it help in understanding goals which are to be achieved in systematically manner.
Through this managers or supervisors are able to take appropriate decisions within the firm. It is
a time consuming process but is needed to be adopted with correct measures. This model
requires a implementation of charts which includes value, propositions, infrastructure etc.
Through this, crucial elements of business are also identified. It is mostly used to launch a new
product, enhance business performance, to increase sales etc. It has various forms of templates
and is used according to the users demand or preferences. Thus, this model has been further
discussed below in relation with M & S.
 Customer segments- Average income people with age of 18-28 are mainly targeted.
Also,
they aim to provide all types of products range with every income group people to access large
market share growth (Parnell, 2018).
 Value proposition- The main product of chosen company is clothes and food. For this
they focus on continuous development.
 Revenue streams- Advertisings through social media fees, charges from retailers,
suppliers , dividend revenue.

 Channels- Currently selected organisation uses social platform as way of communication
channel. As it help them to access customers at wider level.
 Customer relationship- There are many customers who are able to maintain relationship
with corporation for longer period. Furthermore, a positive trusts has been also
established between them.
 Key activities- M & S carries out the distribution of varieties of products and goods
while targeting potential end users. Another key activities are promotion, advertising etc.
 Key resources- As it is diversified company it requires resources, main resources used
by organisation are land, capital, human resource, stores, customers. Manager make
ensures that all resources are used in most efficient way.
 Key partners- TCS has been considered as key partners of firm as it assist them in
digitising of the business. They have been in contract of 5 years and will provide
technical services to company for their growth so that they can become leading fashion
retailers all over the world. TCS will also help the firm expand its customer base with the
acquisition of new digital customers which is expected to create fast growth for selected
firm. It will also introduce in innovative ideas to enhance overall customer experience to
boost their business.(Hruska, 2019 ).
Therefore, after analysing paragraph it has been seen that canvas Model and strategy
drift are to focused so that it is easier for corporation to achieve their aims. Managers need to be
active so that correct decisions can be taken. (Ojasalo, 2018)

Task 4
Briefly discuss competitive strategies that company follow in order to defend its core business.
Business and market sector is changing at rapid scale which gives rise to competition. In
context with Marks & Spencer, it has become important for them to use strategies as well as
tactics to deals with rivals in most efficient manner. Thus, manager of firm uses Porter's Generic
Strategies model which has been discussed below-
Porter Generic strategies model-
It is framework which depicts the different forms of strategies through which company
will be able to gain competitive advantage. To implement this framework it is crucial to have
appropriate knowledge of market so that decision making is done properly. It is responsibility of
manager to make ensure that correct strategies are being adopted. Thus such are mentioned
below-
 Cost leadership- This is strategy in which main focus is on cost which depict that
enterprise lower the cost of product in market with motive of profit and sales revenue at
higher level. In relevance with chosen organization, they can opt for this one as it will
assist them in gaining more customers for their product. Through this, sustainability
period of business also increases. Cost need to be lowered only on some of the products
which are higher in demand and have their prices are high (Firoz Suleman, 2019).
 Cost focus- This is another strategy which specifies that prices or cost of product are
lowered in a niche market after examining of market analysis properly. This is beneficial
at time when there is company wants customers from small market area. The selected
entity can go with this one in case of stores which are not operating well in some of the
regions to make them stable. The main focus is on small market so that more and more
profit is being earned (Hales, 2017).
 Differentiation focus- In this, it states that company try to offer new products by
differentiating it from other brands and is done on small areas. This is riskier as compared
to other types of strategies form the above stated one. This is adopted when firm wants to
access wider or international market. Main aim of this one is to enhance and access large
share of market through targeting niche one.