Evaluating Marks & Spencer's Strategic Shift to E-commerce

The report analyzes the strategic evolution of Marks & Spencer (M&S), focusing on its transition from traditional brick-and-mortar operations to prioritizing e-commerce. It begins with an introduction to M&S's history as a heritage company in the UK retail sector, known for its food and apparel offerings. The analysis includes a SWOT examination highlighting strengths such as brand reputation and weaknesses like operational costs. Additionally, Porter’s Five Forces framework assesses competitive pressures within the industry. Stakeholder impacts are discussed, with emphasis on customers, employees, suppliers, and investors. The report further explores M&S's adaptations to external changes like technological advancements and shifts in consumer behavior. Finally, a conclusion summarizes the strategic advantages of this shift, suggesting reduced operational costs and increased market reach through e-commerce.

Running head: BUSINESS STRATEGY
Business Strategy
Name of the Student
Name of the University
Author’s note

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Executive summary
In this report a detailed discussion has been conducted to understand the marketing strategy and
to develop a future plan for Marks & Spencer. As a legendary British brand the company has a
reputation for supplying products which are high in quality as well as affordable in price. The
company has focused in expansion along with sustainable development of business. This report
will help understand the mission and vision of the company along with several analysis of the
market strategy and policies taken by the company using space matrix, BCG matrix, SWOT
analysis, Ansoff matrix, Pestel and porter analysis to identify the external business environment.
This report also includes a stakeholder analysis; a new strategy has been developed and
thoroughly analyzed.

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Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................6
1.1 Business Mission...................................................................................................................6
Business Vision...........................................................................................................................6
Business goals and objectives......................................................................................................6
Core competencies.......................................................................................................................7
1.2 Factors to be considered while devising a strategic plan for Marks and Spencer.................7
1.3 Space Matrix..........................................................................................................................9
BCG Matrix...............................................................................................................................10
Task 2:...........................................................................................................................................12
2.1 SWOT analysis....................................................................................................................12
Ansoff matrix.............................................................................................................................14
2.2 PESTLE Analysis................................................................................................................16
Porter’s Five Forces analyses....................................................................................................17
2.3 Stakeholder Analysis...........................................................................................................18
2.4 Strategy................................................................................................................................19
Task 3.............................................................................................................................................20

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3.1 Market entry.........................................................................................................................20
Substantive growth....................................................................................................................20
3.2 Justification of the new strategy..........................................................................................20
Task 4.............................................................................................................................................22
4.1 Roles and Responsibilities:..................................................................................................22
4.2 Resource Requirement.........................................................................................................22
4.3 Smart Analysis.....................................................................................................................23
Conclusion.....................................................................................................................................24
Reference list:................................................................................................................................25

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Introduction
Being almost one hundred and twenty years in the business makes Marks and Spencer
one of the pioneers in the retail industry. Over the years the company has set benchmarks for
other companies in many different ways. Established in 1884, by Michael Marks from Slonim,
Russia and Thomas Spencer from Yorkshire opened a store in partnership at Manchester. Today
Marks and Spencer is one of the leading retailers in the world having almost around 454 stores
around 55 counties around the world. The company has more than 979 stores only in UK. There
are almost 84,939 people employed by the company. Over the years of operation the company
has faced several challenges and issue but the organization has always continued its growth and
has been successful in establishing a brand image and brand loyal customer base both in UK and
abroad. The company mostly deals in fashion and clothing, Home Ware, Food, Technology,
Beauty, Financial Services, Energy and Hospitality. The company has earned revenue of £10.6bn
in the financial year 2016-2017. As the establishment date of the company goes way back to the
pages of history there are several layers of interesting facts about the company. The company
archives all these facts and figures as uses them as an advantage to decide and make policies and
decisions even today. To commemorate the heritage of the organization as well as the partners
the management had decided to open a stall at Kirkgate Market in Leeds, in 2013. This is the
same place that Michael Marks began the journey of this organization in 1884. The company has
evolved over the years the aims and objective have changed the marketing strategies have
changed; the company has balanced the operations of the business with the dynamics of the
changing world and the economy (marksandspencer.com 2017). The company is more customers
centric and places the needs and requirements of the consumers before the requirements of the
company. Marks and Spencer is a company that is dedicated to creating every moment special

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for the customers. The company is committed to offer the customers premium quality, self
owned food, clothing as well as home decor items. There are 1433 stores all over the world and
the company has also recently opened the e-commerce site to keep up with the changing trends
of the business. Today sustainability and principles are two most important values that at the
company priorities over any other objective or goal. In January 2007, Marks and Spencer initiate
a project called Plan A in order to focus on some of the important and pressing environmental,
social and ethical issues. The project is now ten years old and after this span of time and two
major updates the project continues to lead the sustainable and global ethics business model of
the company. In 2017 Marks and Spencer has launched some improved policies and
commitments that have been developed to transition Plan A into a new way of working and
engaging with our customers (marksandspencer.com 2017).

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Task 1
1.1 Business Mission
To provided premium quality product in affordable but not cheap price
Business Vision
Marks and Spencer is a company that has a tradition and heritage that the company
cherish. The vision of the organization is to build a sustainable business environment and to
support the society in order to give back in return what the society and nature has offered to the
business. The values that the company cherishes are superior quality, high service, innovation in
the operations as well as trust among the stakeholders (Wilson 2015).
Business goals and objectives
The organization operates on a multinational scale and has a turnover of about £10.6bn in
the financial year 2016-17. The company boost as a pioneer in many marketing strategies and
crisis management. The objectives of the company in 2017 are:
 To maintain sustainable development and to add more layers in the project to make it
more affective
 To provide the customers with high quality customer care service
 To open more stores in international locations
 To understand the need and requirements of the customers and provide them with
necessary support
 To innovate and make creative approaches in the business operation

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 To build strong relationship with customers who are loyal as well as increase the
customer base
Core competencies
The company has over the years improved and developed the structure of the capital as well as
the supply chain. In order to improve the capital structure Marks and Spencer allocated 2 billion
pounds among the share holders to maintain the financial potency and to make the operations of
the business more flexible as well as have expansion funds. The revenue margin on the fashion
and clothing is raising and the focus is being set on the removal of replication of the products.
The company has garnered reputation by improving the performance both financially as well as
in operations; the quality, availability as well as the value for goods has also improved.
The company has 100% home brand goods which makes the organization solely responsible for
the products and services. Because the products and services are of the company itself the
organization can vouch for the quality and value of the product and can also offer efficiency
customer service. The organization has established itself over the past years as a customer centric
and the company concentrates on developing strong relationship with the cores customers. Marks
and Spencer has made a mark in the retail business in terms of trust and value for the customers
(Ho 2014).
1.2 Factors to be considered while devising a strategic plan for Marks and Spencer
The company is recently focusing on the sustainable development of the business model,
it is one of the organizations that has changed the business model from the traditional price and

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cost to the triple bottom line model. Hence the plan has to revolve not any around the price it
also has to be formulated around people and planet.
Customer service efficiency has to be given priority while coming up with a strategic
plan as the objective of the company is to build and maintain strong and viable relationship with
the customers (Rothaermel 2015).

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1.3 Space Matrix
The space matrix will help in understanding the current position and action evaluation of
the there are two aspects internal factors and external factors. Internal factors include Financial
Strength (FS) and Competitive Advantage (CA). Whereas in the external factors consists of
Environmental stability (ES) and Industry Strength (IS) (Grant 2016).
Internal Factors Categories Rate Average score
Financial strength (FS)
Revenue Growth +5
4.33Liquidity +4
ROA +4
Competitive Advantage
(CA)
Market Share -2
-1.33Brand Image -1
Product Quality -1
External Factors
Environmental Stability
(ES)
Technology -3
-4Environment -5
Demand -4
Industry Strength (IS) Barriers +3
4Growth +4
Competition +5
Total X axis score= 2.66
Total Y axis score= 0.33

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M&S
Conservative Aggressive
Defensive Competitive
Figure: Space matrix Analysis
Source: Author’s Creation
As M&S is in the conservative quadrant, the attributes that follow the analysis of the company
include market penetration, market growth and development, product development and
innovation and diversification (Grant 2016).
BCG Matrix
To understand the correlation of the relative market share and market growth rate the figure
below will illustrate the position of the company.

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Market growth rate
Relative Market Share
High
High
Low
Low
M&S
Star
Question Marks
Cash cows Dogs
Figure: BCG Matrix
Source: Author’s creation
The company has both high market growth rate and market share in the domestic as well as
international market owing to its heritage and legendary establishment history. Depending on the
products the values change but mostly they are on the high end. Therefore the company is in the
stars section (Shanbhag et al. 2016).