Strategic Business Plan Analysis for Marks and Spencer

This report provides a comprehensive analysis of Marks and Spencer's business strategy, examining its mission, vision, goals, and objectives. The assignment delves into internal and external factors influencing the company's strategic plans, including an assessment of its current market position through organizational and environmental audits. Techniques such as SWOT and Ansoff matrices are employed to evaluate the effectiveness of existing strategies and identify areas for improvement. The report proposes a new business strategy, considering stakeholder analysis, and evaluates the appropriateness of alternative strategies, including resource requirements and the role of SMART targets. Overall, the assignment offers insights into M&S's strategic positioning and suggests pathways for enhanced productivity and profitability.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
1.1 Assessing Marks and Spencer mission, vision, goals and objectives ..................................2
1.2 Factors to be considered while formulating strategic plan....................................................3
1.3 Evaluation of the effectiveness of two techniques while developing strategic business plan
.....................................................................................................................................................4
TASK 2............................................................................................................................................5
2.1 Organisational audit of Marks and Spencer..........................................................................5
2.2 Environmental audit of the Marks and Spencer....................................................................6
2.3 The significance of stakeholder analysis...............................................................................8
2.4 New business strategy for Marks and Spencer.....................................................................9
TASK 3..........................................................................................................................................10
3.1 Appropriateness of alternative strategies of Marks and Spencer........................................10
3.2 Justification of Strategies....................................................................................................10
TASK 4..........................................................................................................................................12
4.1 Roles and responsibilities of personnel in charge...............................................................12
4.2 Estimation of resource required for implementation of strategies......................................13
4.3 Contribution of SMART targets to achieve the goals and objectives of Marks and Spencer
...................................................................................................................................................13
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Business Strategy is the art, science, and craft of formulating, implementing and
evaluating cross-functional decisions that will enable an organization to achieve its long-term
objectives (Rodriguez, Wilkinson and Kennedy, 2017). In accordance with this context, this
assignment will cover the strategic plans and objectives of Marks and Spencer, a major British
multinational retail organisation. The strategic intent consisting the business vision, mission,
goals, objectives and business plan will be assessed in this report. The factors that impacts on the
strategic plans of the organisation will be analysed in this assignment. The evaluation of strategic
techniques and methodologies will be made in this report in order to formulate strategic plan for
the business corporation. The present strategic positioning will be assessed and highlighted in
this assignment by conducting organisational audit. Further, the external environment of the
organisation will be scanned with the help of various models and techniques in this report. The
new business strategy will be proposed in this assignment after conducting stakeholder analysis
effectively and efficiently. Appropriate strategies will be evaluated in this assignment in order to
increase the productivity and profitability of the organisation effectively and efficiently. The
roles and responsibilities of personnel in charge will be assessed in this assignment and the
requirements of resources will be determined effectively and efficiently.
Marks and Spencer is a multinational British organisation which established in 1884. The
headquarters of the organisation is located at London, United Kingdom (Cavusgil, Rammal and
Rose, 2014). Mark and Spencer is specialised in selling of clothing, home products, and luxury
food products. The organisation have currently 979 stores across the United Kingdom and 454
international stores. This implies that the organisation is large and deals with range of customers
by delivering them ample amount and quality of goods and services. The revenue generated by
Marks and Spencer in year 2017 was approximately £10622 million (Schlesinger and Doyle,
2015). The current stakeholders of the organisations are suppliers, external partners, government,
customers, investors and shareholders. The management aims to increase the number of stores
and quality of products and services by the end of 2020. Further, the management of the
organisation is committed towards employees and customers. This leads the organisation towards
growth and development and made it to be one of the biggest multinational retailer in the
country. The motive of the management is to increase the customer base by providing them
effective and efficient quality of goods and services. From the analysis it was identified that
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organisation focusing on food products and food sales. Further, the management provides
customers online shopping facilities where customers can purchase goods and services online
from anywhere easily and effectively (Tong, 2017). The promotional strategies implemented by
the marketing management of the organisation aims to increase the sales and gain the
competitive advantage in the market economy of the country. There are more than 90000
employees which are employed in the organisation. With the help of huge manpower and
effective use of resources, the management of the organisation aim to increase their market share
and move towards growth and development effectively and efficiently.
TASK 1
1.1 Assessing Marks and Spencer mission, vision, goals and objectives
M&S is one of the UK's leading retailers. The organisation is committed to making every
moment special through the high quality, own brand food, clothing and home products the
organisation offer in our stores and internationally (Tucker and Wisbey, 2015). In accordance
with this context, the mission, vision, goals and objectives of the organisation is provided below:
Vision: The vision statement of the organisation is “To be standard against which others are
measured” The management aim to increase their productivity and standards in way that it can
survive and sustain the competitive environment and also leads to growth and development of
the organisation.
Mission: The mission of the organisation is to provide effective and efficient quality of clothes,
food, home and retail services (Rahm, Kirkland and Bozeman, 2013). Further, to increase the
customer satisfaction and loyalty by delivering them efficient quality of goods and services.
Goals: The goal of the organisation is to be the number one multinational retail store
incorporating their business activities in United Kingdom and all over the world. The
management and employees work collaboratively and collectively in order to accomplish the
desired goals and target.
Objectives: To increase the customer base and satisfaction by providing and delivering them
effective and efficient quality of products and services. The objective of the organisation is to
increase their revenue and provides benefits to their shareholder by increasing customer
satisfaction.
Plan: The business plan of Mark and Spencer is known as Plan A, in which the company focuses
on the environmental change and focus on prevention and rehabilitation of the climate. They
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implemented various strategies which helps in reducing the carbon footprints and does not affect
their productivity and profitability.
Competencies: There are about 979 stores across United Kingdom and about 454 stores
operating all around the world in which more than ninety thousands skilled and competent
employees are employed (Gibson and Thirlwall, 2016). They work abreast with management in
order to accomplish organisational goals and objectives.
1.2 Factors to be considered while formulating strategic plan
In order to formulate strategic plan, various factors are need to be considered because
they impact on the business strategies effectively and efficiently. The factors which are need to
be considered while formulating strategic plan for Marks and Spencer is provided below: Internal Factor: Internal factors includes internal elements which impact on the
productivity and profitability of the organisation (Love and Roper, 2015). These internal
elements include workforce, management, objectives, financial and resource availability.
In order to formulate effective strategic plan, internal factors must be considered by the
organisation. Influence Factor: Influence factors includes firm infrastructure and competencies of
employees and employers. In order to formulate strategic plan, the management of the
Marks and Spencer needs to focus on influencing factors. These includes equipment,
technologies and inventories. Primary Activity: The primary activity includes the quality of products and services
which are offered to the customers (Ward and Cook, 2017). In order to formulate
strategic plan, the management must focus on quality of goods and services. This will
help the management to accomplish their desired goals and objectives. External Factor: The external factors are those factors which impacts the external
environment of the organisation. These includes, governmental policies and legislation,
technological growth and development, change in societal taste and preferences, etc
(Costanzo, Servato and Perrini, 2014). Thus in order to formulate effective business
strategy, management needs to consider these factors.
 Competitors: Competitors impact on the growth and development of the organisation.
There are various competitors of Marks and Spencer such as Asda, Boden and
Debenhams plc. In order to sustain in the competitive environment, the management must
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consider the competitors strategies and formulate their strategies effectively and
efficiently.
1.3 Evaluation of the effectiveness of two techniques while developing strategic business plan
There are various techniques that helps the organisation in formulation and development
of strategic plan. These techniques not only increase the effectiveness of strategies, but also lead
the organisation on the path of growth and development (Hattam, 2014). In accordance with this
context, the evaluation of two techniques which are SPACE analysis and BCG matrix is
provided below:
SPACE analysis: This is considered as an important method for analysing the effectiveness of
the management and planning. In this approach analysis is based on internal and external
approaches. On the basis of that appropriate strategies are considered. Marks and Spencer apply
this analysis approach for identifying their market position. SPACE refers to Strategic, Position,
and Action Evaluation (Wagner, Schwens and Xi, 2015). From the analysis of the organisation, it
was identified that the customers more focus on foods rather than clothing. Thus, the
management of the organisation focus more on increasing the quality and quantity of food stores
effectively and efficiently.
BCG Matrix: The matrix developed by Boston Consulting Group. The matrix helps in
identifying and determining the market position effectively and efficiently. The classification of
business position is described below:
 Stars: From the analysis, the management of company can observed high market growth
and market position in food stores (Cuervo-Cazurra and Ramamurti, 2014). Thus, Marks
and Spencer needs to concentrate on investing more on food stores across United
Kingdom.
 Cash Cow: From the analysis of stores, it was identified that the market share is high in
clothing and home décor accessories but market growth is low. This impacts on the
profitability of the organisation. Thus, management needs to spend less in clothing and
home décor accessories.
 Dog: From the analysis of the organisation, it was identified that market growth and
market share is relatively low in child fashion and women accessories (Karim, Carter
and Zhang, 2015). Thus, management of Marks and Spencer needs to retrench and retreat
their investments.
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 Question Mark: After analysing the organisation products and services, it was identified
the market growth is high in men wears but market share is relatively low. In this case the
organisation needs invest carefully.
TASK 2
2.1 Organisational audit of Marks and Spencer
The organisational audit in order to identify the current strategic positioning of Marks
and Spencer is provided below:
SWOT Analysis:
Strength
 The goodwill and brand image.
 Wide range of products and services.
 Large number of stores within and
outside the boundary of United
Kingdom (Miller, McAdam and
McAdam, 2014).
 Effective marketing and promotional
strategies.
 High market share.
 Effective and efficient infrastructure
Opportunities
 Market capture by providing online
services to the customers.
 Focusing on establishing stores in countries
like India and China in order to increase
sales and profits.
 Acquiring food market by establishing
more food stores across United Kingdom.
Weakness
 Declining sales in clothing and home
décor leads to degradation of the
profits and revenue.
 Lack of skilled and competent
workforce.
 Weak return on invested capital
coupled with high pension and
departmental deficits.
Threats
 Competitive threats due to changing
policies and legislation of government.
 Transformation in technology affects
investment of the organisation.
 Frequent change in taste and preferences of
the consumers (Ramanathan, Poomkaew
and Nath, 2014).
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Asnoff Matrix
The Ansoff Growth matrix is another marketing planning tool that helps a business
determine its product and market growth strategy. The Asnoff matrix analysis of Marks and
Spencer is provided below:
New
Markets
Market Development Strategies
 Increasing sales into current market.
 Focus on establishing more food stores
across country (Rodriguez, Wilkinson and
Kennedy, 2017).
 Increase production of attractive men and
women wears
Diversification strategies
 New variety of
products in existing
market.
 Diversified products
and services for all
segments of customers.
Existing
Market
Market Penetration strategies
 Enter new segments
 New Territories
 New Users
 Franchising in Hong Kong
Product Development
Strategies
 Food Beauty and home
(Cavusgil, Rammal and
Rose, 2014).
Existing Product New Products
2.2 Environmental audit of the Marks and Spencer
The environmental audit of Marks and Spencer is done with the help of PESTLE analysis
and Porter Fiver Force model which is provided below:
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Illustration 1: PESTEL Analysis
(Source: Marketing theories – PESTEL Analysis, 2014)
PESTLE analysis
 Political analysis: The political environment including governmental policies and
legislation that impacts on business operations of Marks and Spencer (Schlesinger and
Doyle, 2015). The current taxation policy influences the retail industries in United
Kingdom.
 Economic analysis: Economic factors are need to be considered. The current market
economy of the country has been greatly influenced by the interference of European
Union and Brexit votes. The inflation rates are high which affects the customer purchase
behaviours.
 Social analysis: Social factors including the changing taste and preferences of society
and community of the country (Tong, 2017). Management of Marks and Spencer has
been affected by consumers expectations and they need to improve ceaselessly and
effectively in order to fulfil their demands and needs.
 Technological analysis: Technological factors influences the organisation greatly.
Management of Marks and Spencer needs to invest in appropriate technology in order to
increase product quality and effectiveness.
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 Legal analysis: Legal factors including the laws and legislation which are meant to
followed by the organisation to avoid any legal consequences. Laws like consumer rights
and safety, employment rights act must be followed by the organisation. Environmental analysis: Plan A of Marks and Spencer works in order to protect the
environment and promote sustainable growth and development adequately.
Porter Five Force Model
 Threats of New Entrants: From the analysis of market economy of United Kingdom, it
was identified that many new start-ups and organisation in retail sector are evolving
rapidly. Thus, management of Marks and Spencer has threat of new entrants (Tucker and
Wisbey, 2015).
 Bargaining power of suppliers: There are various suppliers of Marks and Spencer from
whom, the organisation purchase required raw materials. Thus, it implies that the
organisation has no threat of supplier power.
 Bargaining power of customers: Marks and Spencer has threat of buyer power or
consumer power. Due to establishment of substitution, customers can find identical
product from different store. This impacts on the profitability of the organisation.
 Threat of Substitutes: From the analysis of the market economy of the country, it was
identified that retail organisations are blooming in the country (Rahm, Kirkland and
Bozeman, 2013). Thus, it increases the threat to substitution to Marks and Spencer.
 Bargaining power of competitors: There are various competitors of Marks and Spencer
including Boden, Debenhams, Asda, etc. Thus, the management of Marks and Spencer
has been influenced by the competitors bargaining power.
2.3 The significance of stakeholder analysis
Stakeholder analysis is very important in order to identify the key people or business
entities needs and expectation. In this context, the stakeholder analysis of Marks and Spencer is
provided below:
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From the above graph, it can be understood that the key stakeholder of corporations are
customers, suppliers, government and employees. The management of Marks and Spencer
requires focusing on customers needs and expectations more in order to accomplish the desired
goals and objectives (Gibson and Thirlwall, 2016). Further, employees needs to manage closely
and adequately so that their performance can be increased effectively and efficiently. The
suppliers need to monitor with minimum efforts so that effective quality of goods and raw
materials can be acquired by the organisation. Further, the government and shareholders needs to
keep informed about the business policies, profits and growth.
2.4 New business strategy for Marks and Spencer
After analysing the market economy of United Kingdom and business operations of
Marks and Spencer, it is recommended to the management of the organisation to lay more focus
on the products' differentiation strategy and produce new and unique products and services that
helps in the growth and development of the organisation. The stakeholder mapping indicated that
customers needs and expectations must be fulfilled by the management in order to sustain in the
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Illustration 2: Stakeholder Analysis of Marks and Spencer

competitive environment (Love and Roper, 2015). Thus, it is recommended to the management
of Marks and Spencer to focus on the cost strategy and provides products and services at
affordable prices. This will help in the increase in customer base and attraction. Further,
management of Marks and Spencer increase their food stores so that the profitability of the
organisation increases rapidly and effectively.
TASK 3
3.1 Appropriateness of alternative strategies of Marks and Spencer
The appropriateness of alternative strategies of Marks and Spencer is provided below: Mergers and Acquisition: Growth strategy must be implemented by the management of
Marks and Spencer in order to acquire small and medium enterprises incorporating their
business activities in or outside United Kingdom (Ward and Cook, 2017). This will help
the management to increase their market growth and share effectively and efficiently. Organic Growth: The strategy will help the management of Marks and Spencer to
increase their sales and revenue. The organisation needs to focus on organic growth
providing effective and efficient quality of products and services. Strategic Alliance: A strategic alliance (also see strategic partnership) is an agreement
between two or more parties to pursue a set of agreed upon objectives needed while
remaining independent organizations. Market penetration: Substantive growth strategy must be implemented on food products
produced by the management of Marks and Spencer (Costanzo, Servato and Perrini,
2014). This will increase the sales and revenue of the company effectively and
efficiently. Innovation: Marks and Spencer needs to innovate their products and services in order to
sustain in the market economy of the country.
 Market Development: Management of Marks and Spencer implements retrenchment
strategy in order to eliminate the production of products and services that does not
benefits the organisation and focus on the products that helps in market development
(Hattam, 2014).
3.2 Justification of Strategies
Companies Market Share
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