Impact of COVID-19 on Marks & Spencer: A Strategic Analysis Report

This report provides a comprehensive analysis of Marks & Spencer's response to the COVID-19 pandemic, examining its impact on the retail giant and the strategies employed to achieve sustainability and competitive advantage. The report begins with an introduction outlining the context of the study, followed by a literature review exploring concepts of sustainability and competitive advantage in relation to the retail sector. It identifies the significant impact of COVID-19 on Marks & Spencer, including job cuts, declines in sales, and shifts in consumer behavior. The report then investigates ways large sector organizations can achieve sustainability, focusing on aspects like workplace monitoring, supply chain management, and employee well-being. Furthermore, it analyzes the strategies Marks & Spencer can adopt to gain a competitive edge, such as digital marketing and in-store technology. The Ansoff matrix is used as a theoretical framework to assess market penetration, development, and product development strategies, and it concludes with a discussion of the challenges and opportunities faced by Marks & Spencer in the changing external environment. The report is a case study that provides valuable insights into the adaptation and strategic responses of a major retailer during a period of unprecedented global disruption.

Global Economies and
International Markets
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Table of Contents
Introduction......................................................................................................................................3
Literature review..............................................................................................................................4
RESEARCH METHODOLOGY.....................................................................................................7
Conclusion.....................................................................................................................................11
REFERENCES..............................................................................................................................12
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Introduction
The present covid situation as light to human dietary and health crisis because of which many
different industries are being affected across different parts of the world. The new reality is
leading to high amount of opportunities but increasing complexity and uncertainty. The
organisations are thriving towards more accelerating the changes and becoming agile and
resilient (Papadopoulos, Baltas and Balta, 2020). It is helping leaders and organisations for the
purpose of adapting to the new environment that is leading to changes from technology
operations people. Present report is based on analysing the way a large sector organisations can
achieve sustainability and competitive advantage in this changing scenario of covid-19 virus. For
this purpose there is use of different methods that can help in analysing the challenges and
further strategies that can help in marks and Spencer to achieve higher competitive advantage.
Background
Presently working as a senior strategist in marks and Spencer the role is to analyse
effective strategies that can be used in this present covid situation for the purpose of achieving
higher sustainable competitive advantage. There are different aspects of changing external
dynamic environment that is affecting present functioning of various large scale organisations.
Overview of organisation: Marks and Spencer is a British multinational retail brand having its
headquarters in London England. The brand is specialising in home products, food products and
clothing sector of their own label. The retail organisation is listed on stock exchange and is also
constant of ftse 250 index. Presently they are having 959 stores across different parts of UK and
among them 615 are dealing in food products. The present research will help in analysing the
different strategies that can help marks and Spencer in achievement of higher competitive and
sustainable advantage in the changing covid situation. The present report will be based on
analysing the different strategies and ways in which marks and Spencer is dealing with the
situation of covid-19. The organisation has been experiencing a substantial decline in sales in
their home and clothing sector that leads to managing of the cost so that they are able to support
their food business (Rawson and et. al 2020). All this aspect requires proper planning so that
organisation is able to survive in this situation.
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Aim: “To analyse the way large sector organisations can achieve sustainability and
competitive advantage in the present COVID scenario” A case study on Marks and Spencer.
Objectives:
1. To identify the present impact of COVID on Marks and Spencer
2. To examine ways in which large sector organizations can achieve sustainability in the
COVID situation
3. To identify challenges for Marks and Spencer associated with changing external
environment.
4. To analyse ways in which marks and Spencer can achieve a competitive advantage in
this COVID situation
Questions:
1. What is the major impact of COVID situation on Marks and Spencer?
2. What can be some of the ways that can be adopted by large sector organizations for the
purpose of aching higher sustainability?
3. Identify some of the specific challenges that can be faced by Marks and Spencer that is
related to changing external environment?
4. What are some of the measures and ways that can be used by Marks and Spencer for
achievement of competitive advantage in this COVID pandemic?
Literature review
Concept of sustainability and its relation with competitive advantage
As per view points of justice Mensah (2019), sustainable development is a concept that is
revolutionary and difficult to pragmatically define in some instances because of dynamic
environment. Sustainable development is related to having a sustainable and maintenance
utilisation of available natural resources for present and future development needs. It is a concept
that is associated with human societies must live and meet the needs without compromising the
ability for future generations. Society and customers are always willing to support organisations
that are having sustainable business practices because it gives them a belief of having adequate
resources available in the present as well as for future generation needs. In the developing
countries who are facing a near crisis situation in both environmental and economic perspectives.
Many policy makers of working difficult to formulate programs that can help in identifying
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instances where there can be sustainable development. There is a link between environmental,
social, economic gradation that has to be overlooked in order to enhance the capability and
comprehension of organisations. For retail sector organisations like Marks and Spencer it
becomes very important to identify different measures that can help them in enhancing the
present situation of maximizing the sustainable business practices (Sustainable
development: Meaning, history, principles, pillars, and implications for
human action: Literature review, 2019). The COVID 19 impact also leads towards
generation of need to maximize the present sustainable practise that can help such organisations
in achievement of required competitive advantage as compared to other major competitors like
TESCO, Sainsbury’s, Morrison’s etc.
The present impact of COVID on Marks and Spencer
As per Reuters (2020), different industries have been affected in a different manner because of
the present covid-19 virus. Marks and Spencer has cut 7,000 jobs as per data from September
2020. There has been a material swift and waste and trade that is because of the covid-19 impact
(Parker, 2020). The home and clothing sector has been affected because of the closing of
physical stores from a time period starting since March and till July in the year 2020. The
management of marks and Spencer has some words said that it has led to increasing productivity
and flexibility to some extent because and prices are becoming more competent towards
multitasking. The overall workforce is easily switching between different home divisions
clothing food sector and that has led to increasing efficiency at workplace. One of the major
impact that has been on mark Spencer is that they have plan to eliminate 7,000 jobs and
streamlining the management and stroll operations after the sales have been declined because of
covid-19 pandemic. Micro the retail organisations organisation has seen a huge increase in online
sales but there has been a massive destruction because of lockdown situations across different
parts of the world.
Many other large retail organisations have also seen a falling of revenue but in case of Marks and
Spencer there has been a falling of 13.2% in the quarter that has ended on August. There has
been also 38% drop in store sales of housewares and clothing for marks and Spencer. What does
like other retail organisations marks and Spencer have seen a high search in online sales as
customers are avoiding in store shopping experiences but have been focusing towards online
sales. Marks and Spencer also delivered 60% of its orders to customers during the quarter as
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compared to 29% in the last year (Ratten, 2020).The organisation said that there has been a
substantial uncertainty related to market conditions and the overall situations of social
distancing. This is the reason organisation is having a cautious approach for planning towards
coming balance of the year.
Examine ways in which large sector organizations can achieve sustainability in the COVID
situation
As per Cramer (2020), there are some of the sustainability issues that have to be taken
into consideration by large sector organisations. It can help them in managing of their operations
in a more sustainable manner. The present stage of covid-19 pandemic and economic aspect has
led to complete changes in the organisations are pursuing the sustainability function. In context
of marks and Spencer there are several operations that can be adopted for the purpose of having
higher sustainability across the business. There can be considering of privacy implications and
Human rights policy for the purpose of ensuring workplace monitoring. Large sector
organisations are working towards addressing the situation to balance health and safety along
with privacy of their employees. Supply chain aspect of business is under enormous pressure as
organisations have to ensure continuity to deal with the location of employees in lock down
instances (Rosen and et. al 2020). There are millions of employees that a part of global supply
chain and facing the amount of economic hardships. Many women employees are suffering
because of gender based violence increasing in some areas. The situation of executive
compensation and overall taxation practices are also coming under hire scrutiny as there have
been job losses that is reaching historic proportions. Marks and Spencer has to focus on well
being and help as one of the sustainable measures in the present covid scenario. There can be
collision with healthy business where organisations can work by investing in healthcare towards
society. Use of healthcare supply chains with more productive workforce is again one of the
sustainable measures. Customers can be served better and provided them with quality products,
so that they are able to properly deal with the changing situation. Covid-19 situation can help
marks and Spencer to get a competitive advantage by promoting sustainable business.
Analyse the ways in which marks and Spencer can achieve a competitive advantage in this
COVID situation
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As per Lauchlan (2020), organisations in this situation of covid-19 are working towards
achievement of higher competitive advantage so that they are able to survive for a longer time
period. Marks and Spencer is working to use effective digital marketing strategies that can help
in promoting their brand for their target segment of Customers. The market leading partnership
of marks and Spencer has also enabled them to have a flexible working in this pandemic
situation (Watterson, 2020). The organisation has ordered their competitive advantage in terms
of productivity and efficiency of populations the core part has been rolling of in store
technology. Organisation has been able to create substantial opportunity by saving of cost and
higher productivity. The cost effectiveness can help them an achievement of competitive
advantage has there can be more focused towards maximization of profitability. Marks and
Spencer is also assuming a major shift in their organisation approach by having a weighted
digital thinking. There is has been a turbo-charged online growth.
Theoretical framework for marks and Spencer:
Ansof matrix is one of the strategic planning tools that can help in providing a specific
framework of marks and Spencer in this covid-19 situation. Ans off matrix can be very helpful
for senior manager’s marketers and executives in devising strategies for achievement of future
growth. The external environment is constantly changing and for this there is requirement to
focus on specific issues that can be towards achievement of higher market and product
development in marks and Spencer. For this purpose there is analysis of different growth
strategies as mentioned below:
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(Source: What is the Ansoff Matrix, 2021)
Market development: In this strategy the products already exists but the target markets are new.
Marks and Spencer can make use of existing product range for the purpose of targeting a
completely different segment of customers. But this strategy requires high amount of financial
investment and a complete change in the outlook for target market. Hence is not suitable in the
present scenario of changing external environment of COVID pandemic.
Market penetration: In this particular strategy the market is also existing and the product range
is also that already exist and Mark and Spencer. This strategy is suitable in the in covid 19
situations because it will require not much higher investment and Organisation will be easily able
to approach the present customer range. There is mainly focus on use of existing product range
with the help of various digital marketing campaigns to approach the loyal customer base.
Product development: It is the strategy in which existing markets are there but the products that
are being launched are new. This strategy requires higher planning for the purpose of launching
some new and completely different product range apart from the existing ones. Because of
associated high cost and requirement of resources the strategy may not be suitable for marks and
Spencer.
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Diversification: In diversification there is a absolute new market segment and new range of
products that are to be used in the organisation. In Marks and Spencer the strategy is not suitable
because in the present covid-19 situation there is high amount of uncertainty for future customer
preferences. So, it is not appropriate for Marks and Spencer to launch their any new products in a
entirely unknown market segment.
From the above discussed different strategies that are part of ansoff growth vector Matrix
it can be summarised that penetration strategy will be one of the most suitable strategies for
Marks and Spencer to use in this covid-19 scenario. It is going to help in achievement of higher
growth and dealing with the situation of changing customer taste and preferences (What is the
Ansoff Matrix, 2021).
Another strategy that is used by marks and Spencer is related to ocado onwards that is the online
grocery store started by marks and Spencer in this situation of lock down. Ocado and Marks &
Spencer are coming together for doing a phenomenal job by working towards one business
mentality. Marks and Spencer is having a full range of products available through online
platforms that are helping and generation of better value than other suppliers (Park, Villafuerte
and Abiad, 2020). This approach can be for the expanded towards product development in key
areas. The management is working towards ensuring that home lines and selective clothing
available to customers through the online platforms and there is encouraging of initial customer
response.
There is also focus on working towards end-to-end supply chain and that is integrated with
offering seamless and convenient experiences to customers. There is supplementing of measure
towards development of new digital tools that can help in making shopping easier such as there
is book and shop app. All this is designed to enhance their present online distribution capacity
that can be increased to meet the peak demand by expansion of team by marks and Spencer.
Along with it there is mezzanine floor that is been introduced and is fully operational by to new
auto packing machines that can pack over 2,000 items in hour. These efforts are also helping
marks and Spencer in enhancing their present capacity level. Organisation is having advantages
by dealing with the restrictions and changes show that there can be complete focus on the overall
services that are being delivered to customers (Verma. and Gustafsson, 2020). The organisation
is focussing on delivering a long-term transformation for the business. This is done to reboot
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them by focusing on supercharging of the efforts. The covid situations have accelerated the
overall efforts for marks and Spencer to the online stores (Tang and et. al 2021). There is a
newfound momentum and strategic competence that can be maintained to achieve higher
competitive advantage in the situation. Marks and Spencer is having its first priority towards
supporting their colleagues and customers in this pandemic situation.
RESEARCH METHODOLOGY
Research methodology is used for the purpose of analysing different methods and techniques that
will be facilitating the research work. The main objective of investigator is to collect reliable and
authentic information so that there can be reaching towards effective conclusions. Different
methods that are part of present research methodology in the course of given research work are
mentioned below:
Research philosophy: Research philosophies define different set of actions that are to be used
by the investigator for the purpose of collecting the data, analysing the collected information and
for the drawing interpretation with respect to the laid research topic. There are different types of
research philosophies that include interpretivism research philosophy and positivism Research
philosophy.
Justification: In the present research report for the purpose of facilitating the process of
gathering and collection of data there is use of interpretivism research philosophy by the
researcher. It is going to help in analysing the present impact of covid-19 virus on sales and
competitive strategy of organisations.
Research Approach: It is defined as a method that has to be adopted in the part of the research.
There are different methods of research approaches that include deductive approach for the
purpose of analysing quantitative information on the other hand inductive approach is based on
analysing the qualitative data.
Justification: In the present research report there is use of deductive approach for the purpose of
analysing the quantitative form of information in the provided time period. Inductive approach is
used for the purpose of analysing the qualitative form of information that will be used as per
requirement of the research.
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Research strategy: It is regarded as strategy that has to be used for the purpose of collecting the
required information. There are different types of research strategies that include experimental
research, survey action research, interview and much such type of related strategies.
Justification: In the present research there will be use of survey strategy so that there can be a
collection of relevant information with respect to the laid research topic (Zoellnerand Harris,
2017). Survey method will help in collecting the few points of different target segment of
respondents who the employees are presently working in marks and Spencer. It is based on using
of interpretivism research philosophy and deductive approach to analyse the already existing
theories to further reach towards relevant conclusions and recommendations
Research Choice: It consists of different methods that can assist researcher for the purpose of
collecting numerical or theoretical form of information as per requirements.
Qualitative: Qualitative methods are used for the purpose of analysing theoretical form of
information on numerical form of information that is to be collected in the course of research
work.
Quantitative: quantitative research is dealing with statistics and numbers that have to be
expressed in graphs. It is used for the purpose of establishing generalizable facts related to a
topic. It generally includes observations in numbers and survey that are conducted by use of
close ended questions.
Justification: In the present research investigator will be using both qualitative and quantitative
form of information. Qualitative will be used to focus on exploring ideas and for the formulation
of hypothesis. Quantitative form will be used to analyse graphs, numbers and tables. It will help
in testing of overall hypothesis and theories.
Data collection: There are different data collection methods that are to be used in the course of a
research work. It includes primary method of collecting data in form of questionnaire for focus
groups or interview. It is the first hand information that is to be collected by researcher.
Secondary: Secondary form of information includes the data and information that already exists.
It includes publications, magazines and books, online available, journal articles that will be used
in present research. There is use of literature review that is prepared after collecting information
from secondary available sources.
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Justification: In present a research investigator will be using both primary and secondary
sources of information for the purpose of achieving the laid aims and objectives. In the primary
method there will be use of questionnaire for the purpose of collecting reliable and valid
information. In secondary method there will be use of literature review to analyse the impact of
covid-19 situation on the large sector organisations (Baškaradaand Koronios, 2018).
Questionnaire will be prepared based on viewpoints of various employees that are working
presently in marks and Spencer.
Sampling: Sampling is a technique that is to be used for the purpose of taking sample from the
whole population because it is not possible to use whole population for the purpose of a
particular research (Bowers, 2017).
A sampling is representative of the whole population that can be used for the purpose of
generalizing findings from a research sample to whole population. There are different sampling
methods that can be used in the research work which includes simple random sampling, stratified
sampling, convenience sampling, systematic sampling or quota sampling. In present research
there is use of simple random sampling by the researcher.
Justification: simple random sampling method is based on the viewpoint that there will be equal
chances of selection of each member from the whole workforce of marks and Spencer (Tan,
2017). There will be a total respondent of 30 in number will be taken into consideration for the
purpose of investigating the presently laid research aim and objectives.
Research instruments: There are various research instruments that include questionnaires
interview, observation and other related methods. In the present research report questionnaire is
used as an appropriate research instrument in order to collect relevant and reliable information.
Ethical considerations: It is important for the researcher to ensure that there are proper ethical
considerations to be considered in the course of research work. It includes ensuring that overall
privacy of respondents is properly protected (Litosseliti, 2018). The use of information from
online available articles and resources must be from authentic and reliable sources only. It is very
important for the purpose of ensuring that there is proper maintenance of quality standards in the
course of research.
Budgetary requirements are very important to be fulfilled in the course of present is search
work. There are different types of resources that will be required for the purpose of suitable
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