Strategic Plan for Marks & Spencer: Competitive Analysis and Strategy

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This report provides a comprehensive strategic analysis of Marks & Spencer, a British multinational retailer. It begins with an introduction to strategic management and its importance for business success. The main body critically evaluates Marks & Spencer's performance, highlighting its competitive strengths, market position, and areas for improvement across its value chain, including its global presence and market share. The report then proposes a strategic plan for the company, utilizing tools like the Ansoff Matrix (market penetration, product development, market development, and diversification) and Porter's Generic Strategies (cost leadership, differentiation, and focus) to justify strategic choices. The analysis also includes reflections on online learning activities and their impact on the author's career development, emphasizing skills gained and knowledge acquired. The report concludes by summarizing key findings and the significance of strategic management in achieving organizational objectives.
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Strategic management
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Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
TASK 1............................................................................................................................................1
1. Critically evaluate the performance of your selected company highlighting competitive
strengths, market position and areas where improvement across the value chain may be
required........................................................................................................................................1
2. Propose a strategic plan for company using appropriate tools to explain and justify your
strategic choices...........................................................................................................................2
TASK 2............................................................................................................................................5
Online learning activities <and in class workshops> and e-activities.........................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Strategic management is considered as the utilisation of business resources strategically for
reaching and accomplishing firm’s objectives. This is vital elements for firm as it direct and
facilitates guidance to delegate various resources for executing plan in well defined way. Also,
the efficacious strategic management enable them to obtain more competitive advantage in
comparison to other rivals (Bryson and George, 2020). This report is based on Marks & Spencer
is a well known developing British multinational retailer which are specialises in selling home,
food item and clothing by their own label. Its headquarters is in London, UK. The topics which
are going to be cover in this report are analysis of entity’s performance along with their
competitive strengths, market position and areas of improvement. Moreover, strategic plan and
reflection in respect of career development is also discussed in this report.
MAIN BODY
TASK 1
1. Critically evaluate the performance of your selected company highlighting competitive
strengths, market position and areas where improvement across the value chain may be
required
Marks & Spencer is the global entity which performs its business in various countries like
Russia, Indonesia, India and many more. Moreover, this also states competitive strengths, market
position and areas of improvement aids in enhancing performance level of firm in future.
Moreover, the firm’s performance facilitates helpful insight regarding their consumer base as
well as position into marketplace. For being successful within market area, this is essential for
them to have huge consumer base which are very much satisfied with products quality as well as
their effective services as well (Certo and et. al., 2020). There are several aspects which
contribute towards whole firm performance into respective sector. This is significant for
company to maintain effective performance for firm as this may drives towards profit
enhancement and market share. Marks & Spencer is competitive retailer within UK which
operates into highly competitive marketplace.
They provide their offering in about 32 million consumers each year all over the UK. It
concentrated upon creating goods and services for targeted clients that can be reached by a
channel network of around 1,487 stores as well as online services in about 57 global market
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place. This has stronger international presence as well as their own brand homeware and clothing
is sold by 343 full line outlets and websites. The various outlets, shops and website develop its
business in boarder manner (Strategic report, 2019). In addition to this, they has stronger
offerings in line along with latest industry trends.
Market position:
Marks & Spencer is considered to be a known and growing brand within retail industry in
all over the world. Firm has started their operation from UK as well as end up while reaching at
international level. At present period, they are operating in more than 14, 000 destinations in all
over world. As per their positioning, it is regarded that they undertakes market share of approx
10.78% into the product line of clothing. While in food includes around 5% as well as the
respective firm leading rate is approx 6% which show that they are obtaining optimistic responds
upon their business functions. Moreover, it also involves in e-commerce trading which is also
leading at the rate of 10% in comparison to last year (Strategic report, 2019). They also has
stronger brand positioning which highlighted from firm’s market presence across the world
within retail industry. Rather than insistent level of market competition from some brand such as
ASDA, TESCO and many more, they have attained effective growth as well as reputation into
marketplace. It is also performing through both offline as well as online trading mode which
show that they are carrying a stronger position as brand within competitive market place.
While, Marks & Spencer has stronger international presence within retail industry by an
effectual value chain but there are few areas which has to be developed in effective and efficient
way. So, the company has to focus upon innovative products with help of advanced technology
in various stages of their value chain for assuring that there is a maximisation into overall firm.
2. Propose a strategic plan for company using appropriate tools to explain and justify your
strategic choices
Strategic plan is considered as the method which is undertaken through entity in order to
attain the pre- determined objectives in successful way. This is essential for Marks & Spencer is
to facilitate as well as develop effectual strategic plan which will achieve objective efficaciously.
This is helpful in determining as well as evaluating the relevant techniques that is advantageous
for accomplishing organisational objectives (Drnevich, Mahoney and Schendel, 2020). There are
various theories that are essential for finding appropriate as well as relevant strategy which will
drives towards business development. moreover, several models are discussed below that is
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suitable for determining strategic option which will drives to assists in obtaining competitive
edge upon other competitors firms.
Ansoff matrix
It was established through H.Igor Ansoff as well as the key intent of introducing particular
model is to support entity to develop effective decisions. Moreover, it is also useful in obtaining
competitive edge over another firm. This involves various tactics which assists in maximising
performance of Marks & Spencer and effectively accomplish pre-determined objectives. Also, it
is an efficacious model that will support firm for appropriately formulate strategic plan and attain
various opportunities of marketing (McCann and Schwab, 2020). Respective entity will become
competent to develop efficient strategy through determining effective combination among
present products as well as market. Additionally, it is also regarded as product market matrix.
Various strategies are discussed below:
Market penetration: This is considered as the strategy in which entity is facilitating their
present goods or services into existent marketplace. Respective strategy is amalgamation
of existent products or services to present market area. Within this Marks & Spencer has
to undertaken effective as well as appropriate approaches in order to grab the attention of
various existent or new consumers for enhancing sales. Moreover, there can use several
tools like offers, promotional activities advertisements and others, that are helpful in
influencing huge number of clients and enhance product sales in effective way.
Product development: Within this, Marks & Spencer is concentrating upon facilitating
new as well as different goods to clients that is essential to meet the desires of audiences.
Moreover, respective strategy is stated as the amalgamation of new product as well as
present marketplace (Ongaro and Ferlie, 2020). For adapting this particular strategy, it is
vital for Marks & Spencer to determine as well as understand the consumer base
requirements which assists them to facilitate effective products to audiences. The
appropriate as well as efficacious market investigation is crucial for forming appropriate
goods which will satisfy the client’s needs.
Market development: Within respective strategy, entity is planning to extend their
operations into new marketplace that will drive them towards enhancing business. Market
development is considered as new marketplace with present goods offering of firm. in
order to adopt particular strategy, Marks & Spencer required to identify the marketplace
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that needs present products of respective entity. It is also vital for developing firm’s
consumer base and accomplishing competitive edge.
Diversification: It is undertaken as the very much risky strategy as under it entity is
planning to explore their business operations through undertaking new marketplace along
with new goods or services. Marks & Spencer will be entering into new marketplace and
targeting new clients through providing various goods. Herein, firm requires developing
new product that can be based upon the audience’s requirements.
Marks & Spencer may utilise appropriate strategy from the above discussed one as this drives
them towards enhancing its base of consumers and market reach through providing outstanding
competitive goods to its audiences. Moreover, for respective firm product differentiation is
effective as this helps them to improve their products as per the consumer’s desires.
Porter generic model
It is considered as effectual model in order to determine the relative position of entity within
particular sector. This model aids in analysing as well as identifying whether the profit of firm is
higher, low or average (Petera and Šoljaková, 2020). In context of obtaining competitive
advantage respective model is used as this assists entity to undertaken suitable strategic for target
market. The strategies which can be applied by Marks & Spencer are described below:
Cost leadership: It states that firm formulate their goods or services at lower cost that is
helpful for them to gain huge marketplace and garb the attention of various audiences
towards them. This strategy can be used by Marks & Spencer through providing offers
and discounts that helps them to attract huge clients against rivals and attained higher
profit.
Differentiation: Respective strategy focused to targets the huge market needs by
undertaking competitive advantage through providing several goods or services to its
clients (Wenzel, Stanske and Lieberman, 2020). With assistance of this, some
modification are performed related to consumer’s desires which can be accomplished
through facilitating innovative products. It assists them to become more competitive into
market. Focus:
o Differentiation focus: Herein, firm may concentrate upon fundamental needs of
small segment clients under which it may become more competitive in respect of
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accomplishing targeted market needs. Respective strategy provides opportunity to
entity in context of facilitating various products against their rivals in competitive
market.
o Cost focus: As per it, entity try to attain cost advantage in respect of adopting
small marketplace which will be helpful in becoming cost leader into particular
market (Ylöstalo and Adkins, 2020). Also, this assists firm to be competitive into
targeted market in order to gain higher profitability.
So, in respect of Marks & Spencer, it can apply differentiation strategy in order to develop
innovative products by undertaking the desires and requirements of potential consumers.
Moreover, it is also helpful in gaining more competitive advantage.
TASK 2
Online learning activities <and in class workshops> and e-activities
Performing this module has been a inspiring as well as gathering new experiences for me
as I got to know that how can the whole entity performance will be determined. Instead of this, I
also got an effective opportunity to obtained knowledge that this is vital for firm to manage an
effective performance level as this may contribute towards their whole profit and position within
marketplace. I also learned that strategic plan is very significant for entity as it is helpful in
attaining organisational objectives effectively and efficiently. In addition to this, I also got an
opportunity to improve my knowledge as well as understanding regarding the well known retail
firms that is Marks & Spencer. My whole competencies have developed while monitoring
entity’s strategic view into their marketplace.
Along with this, respective module will effectively towards my whole development of career
in upcoming times as I want to develop my career into retail sector. Also there are various other
proficiencies which I have gained through working on this module such as my verbal and non
verbal communication skills has developed as well as I become competent to represent my ideas
in an appropriate manner. Also, I while working on respective module I has improve my
analytical competencies as well as enhancing my capabilities in order to understand various
aspects in quicker manner. Thus, this module will aids me into my career development as this
has assisted me in gaining knowledge about various new concepts and also developed my few
skills in effective and efficient way.
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CONCLUSION
As per the above report, this has been concluded that strategic management plays vital role
in almost all entities as it is very much helpful in attaining organisational objectives. Moreover,
this also enables form to improve as well as develop appropriate tactics which assist in
developing effective decisions. Various firm perform their operations for maintaining a stronger
image within competitive marketplace with help of their strengths and efficacious strategic
management. Apart from this, it is essential for entity to opt suitable strategy for retaining huge
number o customers and perform their operations in appropriate and smooth manner.
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REFERENCES
Books and Journal
Bryson, J. and George, B., 2020. Strategic management in public administration. In Oxford
Research Encyclopedia of Politics.
Certo, S. T., and et. al., 2020. Divided we fall: How ratios undermine research in strategic
management. Organizational Research Methods. 23(2). pp.211-237.
Drnevich, P. L., Mahoney, J. T. and Schendel, D., 2020. Has strategic management research lost
its way. Strategic Management Review. 1(1). pp.1119-1127.
McCann, B. T. and Schwab, A., 2020. Bayesian analysis in strategic management research: Time
to update your priors. Strategic Management Review.
Ongaro, E. and Ferlie, E., 2020. Strategic Management in Public Organizations: Profiling the
Public Entrepreneur as Strategist. The American Review of Public Administration. 50(4-
5). pp.360-374.
Petera, P. and Šoljaková, L., 2020. Use of strategic management accounting techniques by
companies in the Czech Republic. Economic research-ekonomska istraživanja. 33(1).
pp.46-67.
Wenzel, M., Stanske, S. and Lieberman, M. B., 2020. Strategic responses to crisis. Strategic
Management Journal.
Ylöstalo, H. and Adkins, L., 2020. Economizing the political: Workfare reform in strategic
management mode. Current Sociology, p.0011392120913579.
Online
Strategic report. 2019. [Online]. Available through:<
https://corporate.marksandspencer.com/documents/msar-2019/strategic-report.pdf >
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