Analysis of Marks and Spencer's Business Strategy and Models

This report provides a comprehensive analysis of Marks and Spencer's business strategy. It begins with an introduction to effective business strategies and their importance, followed by an examination of the macro environment using the PESTLE framework, assessing the political, economic, social, technological, legal, and environmental factors impacting Marks and Spencer. The report then delves into an internal analysis, employing SWOT analysis to evaluate the company's strengths, weaknesses, opportunities, and threats. It also explores the resource-based view strategy and Porter's Five Forces model. The report concludes with an overview of strategic planning, providing insights into how Marks and Spencer can improve its performance in the market. The analysis aims to inform strategic management decisions and improve the company's competitive position.

Business strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Appropriate framework to analysis the impact and influence of the macro environment on
Marks and Spencer.................................................................................................................1
P2 Assessing internal environment and capabilities of Marks and Spencer..........................4
TASK 3............................................................................................................................................7
P3 Porters Five forces model.................................................................................................7
TASK 4............................................................................................................................................9
P4 Strategic plan and models.................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Effective business strategies helps to get desired target and also helps to get higher
performance in the world. There are different types of models that helps to create effective
management plan and then company can easily expand their business in the world. Marks and
Spencer provides the good quality food products and sell clothing in a world. It has good brand
image in a market because it follows different types of strategies to innovate their products for
the consumers. This report includes the organizational and environmental analysis, model that
help to expand and increase the firm performance. Manager has a responsibility to take
appropriate decisions based on the current market conditions.
TASK 1
P1 Appropriate framework to analysis the impact and influence of the macro environment on
Marks and Spencer
Marks and Spencer is the biggest multinational company in the world. It provides the
good quality product to the customers. Based on the client needs it gives innovative products to
the consumers. It also follows the appropriate and effective strategies to increase the firm
performance and productivity in the world.
Mission of the M&S Ltd. Is to create the inspirational quality accessible to the others. B
providing innovative products to the customers they can easily get higher performance and
productivity in the world.
Main vision of the firm is to create effective platform, reflects the values and instruct the
decision making and approaches to expand their business in a world.
Objective of the M&S Ltd is to maintain the brand image in the market by providing
effective and good quality products to the clients (Chen and Jermias, 2014).
PESTLE of Marks and Spencer
political
Government of UK provides the effective and efficient policies to the companies which
helps to expand their business in the world. Recently government provides new laws that is
related to the health and safety, hazard identification and risk control. Some organizations are not
following the policies to run their business in the world. M&S Ltd. Are not following theses
policies which have negative impact on a company performance. By abiding these policies which
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help to maintain relationship between the employees and also give higher performance to the
company.
M&S Ltd must need to follow the appropriate policies such as health and safety in the company
so that it will not affect the employee relation and it also helps to give higher security and
facilities to the employees.
Economic
M&S Ltd. Product has very higher rate in a market and some of the peoples are not able
to spend the spare cash on the luxury product. So company need to reduce the price of an items
and give innovative products based on the consumer needs. Recently an entity closed the higher
number of stores and have job cut of 2% of their 70,000 staff (Galpin and Lee Whittington,
2012).
Firm needs to decrease a rate of their products and services so that it will help to increase overall
economic condition and also helps to increase performance in a market. There area many
customers they are not able to spend that must money on the food products.
Social
In the last few years, there re many changes in the social environment such as M&S Ltd.
Has many competitors in the world such ass Asda. Kit also provides the good quality and
innovative products to a customer to increase overall firm performance in the world. Asda sell
online food products to the client to increase their productivity in a world. Marks ans Spencer
appeal top various marketers in terms of other demographics and social environment, this is the
major factor that influence a firm performance.
Technological
Marks and Spencer use different types of promotion strategies such TV and social media
to increase the productivity in the world. It has positive impact in the company by using
advanced technologies of the promotion they can easily get higher performance in a world and
also helps to expand their business in the world (Ghezzi, 2013).
M&S uses different types of promotion approaches such as social media and internet that helps
to attract the consumers but has negative impact on the firm because there are many advanced
technologies so company are not able to take each of them in a firm.
Legal
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UK governments provides the effective and innovative policies to the organizations to
maintain brand identification and also helps to get desired target in the world. Recently
government develop the fair packaging and labelling act 1996 that give appropriate regulations
for the packaging and labelling the client products. M&S Ltd. Follow this act to package their
products in an entity.
Environment
This factor of PESTLE has positive impact on a firm because they develop their own
policies such as green policy. Company also announced the plan of 100 point five year to re
develop itself to become a carbon neutral and health promoting business in the world.
SWOT analysis
Strength
Main strength of M&S Ltd is that it has good brand image in the world because it
provides innovative and effective products to a client. It has huge number of shareholders and
stakeholders in the world and they give more profit to the company. Another strength is that it
has many stores and supermarkets in different countries which helps to get higher performance in
the world (Grover and Kohli, 2013).
Main strength of the M&S Ltd is that it provides good quality items that helps to maintain brand
image in a market. Ur helps to get higher performance and productivity a world.
Weaknesses
Frequent items recalls in 2015 marred its brand identification and affects a client
confidence in its items. There are various changes in the consumer behaviour so company has a
responsibility to provide appropriate and innovative products to the consumers.
Opportunities
There are different types of opportunities for the firm such as they can easily create their
own website and it can easily introduce the new industry segment that gives more profit ad
higher performance in the world. Main future opportunity for M&S Ltd. Is they easily expand
their brand in china and India.
They can easily expand their business in different countries so that it helps to increase overall
firm performance in a market.
Threats
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Other retail firms provides the discounted on their products so M&S Ltd. Also need to
innovate their products and give appropriate discounts to a client. M&S Ltd. Being the global
retailer means they nee to exposed to various political and legal facts in countries they are
currently work in.
Critical analysis of the macro environment to determine and inform strategic management
decisions
Some of the macro environment has positive impact in the company. The manager has a
responsibility to take appropriate decisions based on the market conditions. In the political
factors the company are not following the laws of health and risk control so it has negative
impact on a firm so they need to take decision which are helpful for an entity. Technologies
factor has positive impact on the company they use different types of technologies for the
promotion to increase the firm performance in a world. But sometimes the technologies are
chaining day to day so it is difficult to adopt the latest technologies in an entity (Higgins, Omer
and Phillips, 2015). In legal factor UK Government provides the packaging and labelling policies
to the company to maintain the brand quality. Negative impact of this factor is that there are
various laws that are helpful for them but it is not possible to adopt and follows al the policies.
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Illustration 1: Pestle analysis
Source: (Marketing theory, 2017)

Strength of the firm is that they have god brand image in the world so that they can easily
get higher performance and productivity in a world. To overcome the weaknesses company need
to give innovative products with an appropriate discount. Opportunities has positive impact on a
firm, by opening the new store and supermarkets in china and India it helps to higher profit in a
world.
To increase the firm performance in the market they need to use different types of
promotional strategies. By innovating the products and services for the client M&S Ltd. Can
easily get higher performance in a world (Hoejmose, Brammer and Millington, 2013).
P2 Assessing internal environment and capabilities of Marks and Spencer
Swot analysis is the effective tool that can be used by Marks and Spencer in order to
identify its own internal capabilities. This technique will help firm in analysing its own strength ,
weaknesses, opportunities and threats. It provides organisation an opportunity to increase its
strength, overcome weaknesses weakness, reducing threats, exploring and capturing
opportunities. (Baird and Baird 2017)
Swot Analysis
Strength: The company is operating in global market. It has many stores worldwide that has
provided firm an opportunity to expand its business. It has strong brand image in international
market. The concept of value for money has allowed them to grow. The company serving wide
range of products at reasonable price. The firm has its own brand level. It has more than approx
79000 employees that are working at different stores worldwide.
High recognition of brand-It is located in the central area of UK and is well recognised for
offering good quality products at reasonable price. The brand value of organisation is high.
Wide variety of products-It provides wide variety of goods in every retail outlet as provides
consumer an opportunity to select the best good from wide variety of products. The organisation
relies much on farmers, this has enabled Marks and Spenser to provide variety of goods to its
clients.
Large number of stores-This has assist business entity in increasing its sales as well as
profitability.
Weaknesses-
Ineffective marketing strategy and non attractive stores- The company market share has
decreased due to out fashioned and non trendy stores. As The organisation is serving wide range
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of goods stills consumer has assumption that Marks and Spencer is delivering clothes for old age
people. This issue is faced by organisation due to ineffective marketing strategy.
Manual working rises the cost- Marks and Spencer is still depended on the old or traditional
techniques for producing and promoting their products as well as services that has lead to
increase in cost. It has great impact on working efficiency and production capacity of firm that
has further lead to decrease in profitability.
Opportunities-
Expansion of business- As Marks and Spencer has popular and well recognised brand name as
well as wide customer base it can expand its business in international market. The company can
for partnership and joint venture with internation firms that are dealing in same industry. As this
will assist organisation in gaining competitive advantage in global market. Marks and Spencer
can develop its own websites to promote or directly interacting with customer. As through this
activity the enterprise Wil be able to identify the customer needs and demands. It will also
provide firm a chance to convert customer perception by providing them complete information
about company and as well as access (Grünig and Kühn, 2015)
The organisation has opportunity to develop new products as well as services by adopting
advanced technology in order to attract more number of consumerist. By adopting effective
technology enterprise can get an opportunity to increase its efficiency and production capacity.
Resource based view strategy
Identifying the firm potential key resources-The resource based strategy of Marks and
Spencer have focus on matching firm internal resources with the competencies of external
environment in order to increase strategic capabilities. The Marks and Spencer resources can be
divided into two categories that is tangible and intangible.
Tangible resources are easily identifiable as they are physical and financial asset of the
company. Marks and Spenser tangible resources are its Approx 970 physical stores. It has approx
80 thousand employees working at different stores worldwide. The firm has technology that is
used by organisations for producing products and services (Houdet, Trommetter and Weber,
2012)
VRIN analysis
This tool or framework can be used by company for determining or identifying resources
as well as capabilities which can lead to increase in strength and weaknesses.
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It is required by manager in Marks and Spencer to formulate as well as implement
strategy ion order eliminating use of such resources that are invaluable and to establish focus on
utilisation of valuable resources.
Valuable resources- In Marks and Spencer, Employees, human resource management and
technology are the valuable resource. As employees and human resource management has
allowed firm to expand its core business activity and allowed business entity to increase its
profitability and foster growth. Technological resources has provided business entity an
opportunity to produce new product and make modification in existing product. It has allowed
enterprise to increase its efficiency and production capacity. These resources have assisted firm
in improving the quality of its products as well as services. The company has unique and
excessively high price resources.
RARE resource-The lack of advantage technology due to which organisation has to suffer short
term losses.
Intangible resources-The intangible resources are invisible. Such as consumer information, brand
name, market share, brand reputation as well as recognition and corporate culture. Markers and
Spenser has high brand value and recognition in market. It was having high market share but due
to consumer wrong perception about enterprise has lead to decrease in its market share. It is
required by organisation to adopt effective marketing channel or develop its own websites as it
will help business entity in changing consumer perception (Staake, Thiesse and Fleisch, 2012.)
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Value chain analysis
The primary activities of Marks and Spenser include production and delivery of products
and services that comprises inbound logistics, operations, outbound logistics, marketing and
sales.
Inbound Logistics- This type of activities are concerned with producing and delivery of products
as well as services. Marks and Spencer has been awarded with best supply chain award.
Operations-As Marks and Spencer customers are complaining about the quality of goods as well
as services. It is essential for firm to adopt effective as well as advance technology as this will
help in improving the quality of goods. The other initiative that is requires by organisation is to
provide training to their operation team as this will aid business unit in increasing production
capacity , efficiency and quality of various products. All over Company need to develop their
focus on operational activities.
Outbound logistics-It has strong supply chain that allow organisation to deli ever right product to
right consumer at right place. It has provided firm an opportunity to provide quick services to its
customer. Marks and Spencer company is required to increase its logistics capacity and use
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Illustration 2: VRIN analysis
Source: (Strategic analysis Marks and Spencer, 2017)

effective transportation facilities\ as it will help them at the time of expanding their business. The
company is emphasizing on small warehouse in order to reduce the cost of storing material.
Marketing and sales-It can develop its own website for interacting with customer as it will assist
firm in communicating their objectives and demonstrating the benefit of product. It can also use
digital media and other online platform for promoting their brand.
Services- It is essential for firm to have focus on time and quality of services as this can provided
company an opportunity to gain customer loyalty. It can open its more stores in order to provide
quick and quality services to its clients (Amran, Ooi and Devi,2015.)
Cost benefit analysis
Marks and Spencer is a leading company in retail market. It offers many varieties of
Products. The cost of production of such goods is not the same so, the firm is not able to sell all
products at same price. If the company adopt strategy to diversify the profit earn uin such case
also the organisation will not be able to achieve break even sales. The competitors of marks and
Spencer are taking effective initiatives in order to reduce cost of production. Rivalries of the
M&S has adopted strategy to put more value for money for their goods by achieving maximum
benefit with utilisation of less resources. Value for money can be gained by reducing the cost,
minimising use of input, improvement in quality of produce and increasing output. The marks
and Spencer is required to adopt advance technology as this will help firm in reducing the cost of
production and increasing profit margins. Marks & Spencer is to position itself as a value for
money brand, and admits it has too expensive. Prices will come down as it encourages suppliers
to source more products abroad. The organisation has suggested supplier to import raw material
from other countries.
TASK 3
P3 Porters Five forces model
Level of competition-As retail industry is very big there are many organisations the competition
level is extremely high. In order to reduce competition many firms are focusing or planning to
diversify its business into non -core field. But Due to this activity such companies may have to
face additional competition. Marks and Spencer have high competitive spirit and company is
vulnerable to competition. As the organisation sells variety of products such as food, household
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and apparels. So the business entity has to face stiff and high level of competition from
supermarkets and retailers dealing in clothing sectors.
It is required by Marks and Spencer to follow one strategy among three significant
strategies these are differentiation, low cost and Hybrid. Marks and Spenser has taken initiative
to differentiate its goods and services from that of competitors by positioning business entity
among top retailers on the basis of quality of goods. The organisation has adopted the concept of
Valuer for money. This principle has allowed enterprise to achieve its objectives and foster
growth.
Threat of substitute-There of substitute is low as there are no substitutes available for clothes and
food items. Other retailer in same industry has potential to introduce substitute of such products.
Waitrose, John Lewis and Peter Johns are the major competitors of Marks and Spensers as these
companies are offering high quality products to customer. As da and Tesco are giving
competition to Marks and Spencer in terms of pricing and variety of clothes and food items.
Tesco and Asda has introduced new product that is Dinner jacket that has increase the threat of
substitute product.
Threat of new entry-The threat of entry of new firm in the industry is low. As the Marks and
Spenser is dealing bin in retail industry that require huge capital investment. It will be difficult
for small business unit to invest huge capital. There are many big Retailers in the industries such
As these industries has already established their leading position in market, it would be difficult
for small unit to face competition with such big organisation. If small firm want to enter in such
industry it need to produce innovative products which is very difficult to execute in food and
clothing industry (Kernbach, Eppler and Bresciani,2015)
There are many big companies holding high market share and has able to gain customer
loyalty which will be more difficult for new organisation to achieve.
Such a big industry require expertise and knowledge by firm in order to gain competitive
advantage. These factors can create hurdles or barrier for new company to enter into such
industry.
Bargaining power of buyer-The bargaining power of consumer is high. This factor has the great
influence on the prices of company products and services. Consumer has high power to negotiate
the prices of products and have potential to force organisation to reduce the prices. As the
switching cost is low, customer can easily switch to another brand. UK economic growth is \slow
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it has great impact on consumer and financial stability of firm. It is required by Marks and
Spencer to emphasize on customer satisfaction and instead of increasing price of goods. The
company can adopt low pricing strategy as this will assist enterprise in gaining leadership in
market. The other strategy that will assist business entity in reducing the bargaining power is
product development or innovation strategy.
Bargaining power of suppliers- There is low bargaining power of suppliers. As marks and
Spencer is well recognised company and has high brand name many suppliers has willingness to
work with such big organisation and gain profit. As the enterprise has high turnover and
suppliers desire that their products should reach wide range of consumer. The other fact is that
Marks and Spencer is not dependent on its suppliers. The business entity has focus on selling its
own branded and labelled goods. The enterprise purchases raw material not the finished product
from suppliers. As This assist firm in ensuring customer about the quality of goods. It also
provided company an opportunity to increase profit margins (Leitner, Meissner and Martyna-
David, 2015.)
TASK 4
P4 Strategic plan and models
There are different types of models that help to expand their business in the world. Top
increase a firm overall performance and productivity in the market M&S Ltd. Need to follow
various strategies and approaches in the company. Manager has a responsibility to know the
actual condition of an entity in the market and then take appropriate decisions which helps to
increase a firm performance in a world. All the models have different characteristics and roles
which helps to expand a business in the world (Van Grembergen and De Haes, 2012). Manager
has a responsibility to find out the strategies and approaches which helps to get higher
performance in a world. Manager also give training and development to an employee to innovate
the existing products to increase the firm productivity the world. Some of the models which
helps to increase their performance and also helps to expand their business in the world as
follows:
Merger
This model is the best model to expand their business in the world. M&S Ltd can easily
combine their business with other company to expand their business in a world. Manager need to
find out the other business which helps to giver more advantages to the firm. By using this model
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the can easily get higher performance in the world. They can easily invest in the other company
and decide the price and policies which helps to maintain the brand image in a world. Manager
has a responsibility to find out the same industry business and invest in that company that helps
to get more profit. One of the essential part is that they need to promote their products and
services to attract the consumers in an industry (Khalili Shavarini and et.al., 2013).
Globalization
This model helps to the business to increase their overall performance and productivity in
the world. M&S Ltd. Has a big opportunity to expand their business in the world to open
different stores in various countries. Through this model a client can easily consume their
product ans services based on their preferences. There are different types of benefits of this
model such as free trade, free movement of labour, increment in economic scale, larger
competition, increment in the investment. Etc. the company can easily get higher performance
and easily expand their business in the world. M&S Ltd use this model to increase their
performance in the world. By using the globalization firm can easily compete with the other
business. Based on the client needs an entity can easily provide appropriate product to the
consumer. Customer can get effective product based on their preferences (Murthy, 2012).
Hybrid strategies
This model helps to increase their firm performance and productivity in the world. By
using this model M&S Ltd. it helps to increase the level of profit and also helps to create
competitive environment in an industry. To stay competitive in the market they need to provide
innovative and good quality products to the customers. Manager needs to give appropriate
training and development to use this model in the company (Oyedijo, 2012). They also ned to
give guideline and instruction to the employee to produce innovative products to increase a
productivity in the world. Basically, it includes two types of strategies such as sequential and
simultaneous strategies. Both have different roles and characteristics to get desired target and
also helps to get higher performance in the world. There are different types of factors that helps
to implement hybrid approach such as consumer needs, innovation opportunities and company
learning. M&S Ltd uses this model to get higher performance to expand their business in the
world (Oestreicher-Singer and Zalmanson, 2012).
Horizontal and vertical integration
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It gives the best way to a company to increase the firm performance and also helps to get
desired target in a world. Horizontal integration occurs when the company has decided to merge
their business with other business in the world. Main advantage of this model is that it gives the
higher profit to a firm and also an entity can easily diversify an items and services, decrease the
cost of the item. It has many benefits such as economics of scope and increment in industry
power. Vertical integration is the approach to expand their business by gaining ownership of the
company's previous supplier. There are two types of strategies in the vertical integrations such as
forward and backward (Osterwalder and Pigneur, 2013). Both have different types of
characteristics to increase a firm performance and also help to get desired target in the world.
Some of the benefits of vertical integration as follows:
 increment in competitiveness
 higher process control
 increment in the market share
 reduce the cost
These all are the models which helps to get higher performance and productivity in the
world. All have various roles and characteristics to get desired target and firm objective in a
world. M&S Ltd. Uses theses model to expand the business and get goal of an entity in an
industry. Manager needs to find out the appropriate and effective solutions and create effective
management plan that helps to get desired mission in the world. By innovating the products and
service they can easily get higher performance in a world.
CONCLUSION
It has been concluded from the report that as Marks and Spenser is operating in global
environment the macro environmental factors have great impact and influence on organisation.
Mainly Economic, social and legal factors have great impact on the profitability and growth of
company. The report has concluded that Marks and Spenser has unique and high price resources
that can be used by business entity for formulating various strategies in order to gain competitive
advantage. It has many valuable resources that has assisted enterprise in improving quality of its
products and services.
There many strategies has been suggested by study that can be used by Marks and
Spencer in order to reduce the competition or for gaining competitive advantage.
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