Strategic Report: Analyzing M&S Business Environment & Strategy

This report provides a comprehensive analysis of Marks and Spencer's business strategy, focusing on the influence of the macro environment and the evaluation of internal capabilities. It employs frameworks such as stakeholder analysis, PESTLE analysis, Ansoff's matrix, and SWOT analysis to assess the external and internal factors impacting M&S. The report also implements Porter's Five Forces to analyze the competitive forces within the market sector. Furthermore, it interprets strategic planning for the organization using various models and theories, culminating in a strategic management plan that includes strategic priorities and objectives. The analysis aims to provide insights into M&S's current position and future strategic direction, highlighting key opportunities and threats within the business environment.

Business Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Apply various frameworks to evaluate the influence of macro environment on a company
& their business strategies......................................................................................................3
TASK 2............................................................................................................................................8
P2 Evaluate the capabilities & internal environment of a organisation by using right
frameworks.............................................................................................................................8
TASK 3..........................................................................................................................................10
P3 Implement porter's five forces to analyse competitive forces of a market sector for a firm.
..............................................................................................................................................10
TASK 4..........................................................................................................................................11
P4 Apply various models, theories & concepts to interpret strategic planning for a
organisation..........................................................................................................................11
M4 : Strategic management plan which includes strategic priorities & objective...............13
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy is defined as the tactics or the action plan that benefits the business
individual for the sole aim of attaining the objective and goals. This also refereed to the plan that
is being implemented by the person so that they can have the effective market position with
better approaches (Timms, 2021). This respective report is based on the Marks and Spencer, it
is the UK based retailing company which is dealing in cloths, food items & home products. This
respective report will cover the influence of macro factors on the strategy of the business of an
organisation. There are various analytical models which are furthered discussed in order to
understand the macro environment. Moreover, internal capabilities and environment of the
company along with the proper evaluation with the help of Porter's fiver forces. This also analyse
the certain theories so that they can understand the strategic direction in order to have better
planning within the organisation. Lastly it will made the strategic management plan for
expanding their business across the world.
TASK 1
P1 Apply various frameworks to evaluate the influence of macro environment on a company &
their business strategies
Vision: The core vision of Marks and Spencer is becoming global brand against that the
other national and the international company will measure the overall performance.
Mission: In order to create an mission an inspirational quality that can be accessible to
other. This will also helps in arising their customer base due to that they can have more profits.
Objective: In context to Marks and Spencer, the main goal of the organisation is to have
leadership in their products & food sector. This helps them to renown global brand that can
complete with the efficient means.
Strategy is referred as the action plan that is framed by the manager of the company so
that they can have the effective attainment of the gaols in an appropriate manner. This is the
general direction that is being followed by the company by which they can have the better results
in the attainment of the future goals. In order to have the effective business strategy, an
organisation is able to decide that they have to perform so that they can have the better advantage
over their competitors with the aim of having more profits through various business strategies.

This also allow the organisation to follow the effective strategic directions. By which they will
be able to gain the certain success at national & international market.
various strategic planning techniques
 Benchmarking: This is referred as the metrics with the competitors or the entire industry
in that the organisation is operating their function. In this, M&S will be able to have
better market position by analysing their performance with the market leaders. This also
helps them in maintaining appropriate business strategy to have more profitability.
 Business analysis: By accessing the venture & their various task in a well-defined
manner. M&S will help in knowing their strength or their weaknesses by effective means
so that they can ensure the better decisions will be accessed by M&S to have better
outcome.
Certain analytical framework to acknowledge macro environment
Stakeholder analysis
This is the process which helps in identifying those individual that can analyse the impact
with the overall performance of the company before starting or initiating any plan of the given
project (Williamson, 2021). This major analysis helps the M&S in grouping as per the
accordance with interest, level of participation and the impact in the project. There are basically
three steps to conduct the stakeholder evaluation that is explained as follows:
Step 1: This includes determining different stakeholders by framing the list of all the
possible of the person that can be potential stakeholders for the business. In context to Marks and
Spencer, potential employees will sales department, executive staff, marketing executives,
costumers, employees, public, government, shareholders and suppliers.
Step 2: After analysing all the significance stakeholders, manager in organisation will be
needed to prioritize them as per the various categories such as interest, level of participation and
influence etc.
 High power, high interest: These are the important important for M&S and prioritizing
them in the performance of the company and their certain business activities in an
appropriate manner.
 High power, low interest: These are the stakeholders which help in knowing the overall
working of the company but they do not have so much interest in the activities of M&S.

 Low power, high interest: These are required to to be informed about the business by
which the certain assignment or the projects can not create problem for them.
 Low power, low interest: These are the type of stakeholders which are not interested in
the various activities of organisation and do not hold the required power to executive
certain plan and gradually impact the overall working.
Step 3: In such step, manager of Marks and Spencer will have the effective
communication with these stakeholders as per their priority by which they can support various
stakeholder can be gain to accomplish without any major difficulty.
PESTLE analysis
This is the framework which helps in analysing the external factors which is impacting
the overall working of the company and the market in right manner. In context to Marks and
Spencer, PESTLE Analysis is given below:
 Political factors: These are the certain aspects that includes the tariff rates tax
regulations & stability of the central government. In context to UK, it is politically stable
& tax rates for business companies which is less by which they are operating their
business and generating benefits for Marks and Spencer.
 Economic factors: These are the aspects that includes the growth rate, GDP, inflation
rate & purchasing power of the people across the UK. People is having good disposable
income by that the people are capable enough to make purchase from the stores of Marks
and Spencer. Whereas, high inflation rate due to the great recession of 2018, they can get
impact in the adverse manner.
 Social factors: These are the aspects which are concerned with the opinions, beliefs and
the attitude of the people who are living in the UK. They are having open minded society
where people using the advance technology. If M&S will offer the high quality & the
modern goods to their potential customers and their overall sales and revenue will be
high.
 Technological factors: In UK, they are having advanced nation that people is having
internet and digital media by which they can perform their daily tasks. In context to
Marks and Spencer, people are referring to use modern and advance technology, machine
and distribution process in as per the requirement of the market by which they can have
the higher interest can be maintained in the products of organisation.

 Legal factors: As the macro factors includes all the legal rules the norms that is being
imposed by the government of UK in order to secure the welfare of the customer or
workers for the business companies & vice-versa. Manager of the company need to
follow all the legal producers by which they do not tends to have heavy penalties due of
law disobedience.
 Environmental factors: These are the certain aspects that are linked by protecting
ecology & the environment from hazardous activities of the venture firms. They are
following environmental laws that also benefits the organisation in sustaining a effective
positive image within the marketplace in which Marks and Spencer is operating their
business. Due to this, profits and sales of the company will be high.
Ansoff's matrix
It is the growth matrix is referred to the strategic tool for maintaining that is used by
managers of the venture and this also helps in analysing the growth strategy can adopted. In
context to Marks and Spencer, they are using various framework which are listed below:
 Product development: In this strategy, an company introducing the new products in
market by that they can increase their customer base by offering better products in the
market(Quenum and et. al., 2021). In context to Marks and Spencer, they can generate
higher revenue and profitability.
 Market development: In the given strategy, a organisation is trying to increase their
market share with the effective assistance of existing products in the new market. This
also benefits the company in increasing the sales and profitability of them.
 Market penetration: It is the strategy, an organisation is trying to enhance their market
shares with the assistance of the current products in the current market. AS per the given
strategy, an organisation can minimise their prices and also provide the complementary
services to the customers and this helps in increasing the market share due to high
revenue.
 Diversification: This is basically measured as the risky strategy in that the new
commodities is being offered to the customer in the new market segment. When the
company fails to please the customer by have better products and this can be the big loss
for the revenue of the organisation. In context to this, new customers will like to have
new products and M&S will achieve high market profits & revenue.

As per the above discussed strategies, manager in M&S is recommended to use the
market penetration strategy as the existing products can be offered with proper discount
in the given market by which they can ensures higher profits and revenue within the
organisation. This also helps the company in enhancing their revenue and share without
introducing new products or specially targeting any new market.
SWOT framework
SWOT analysis is the tool which help M&S in identifying the strength & weakness of
the company in detailed manner by which they can make the required change as well. There
are various opportunities and threat that has been known and the impact of the business in
appropriate manner(Martínez Hernández and et. al., 2021). In context to Marks and Spencer,
these aspects are explained as follows:
Strengths Weaknesses
 Marks and Spencer is having high
brand recognisance due to the high
quality in their products and services.
 An organisation is having the wide
product line & includes the clothing for
kids, women and men, food outlets and
home products by that they can have
the different options to choose the best
alternative.
 As the people of UK and other region
region believe that M&S is offering
outdated products for adults and youths
in relation to their cloths.
 They are also using outdated methods
to produce these products by which
their products are highly prices in
comparison with the other rates that are
being offered by the competitive firms.
Opportunities Threats
 An organisation can expand their
presence to the African and Asian
countries by which they are having
larger availability of potential
customers.
 They also can invest in marketing
activities by which they can have the
large number of products offered by
 Changing political environment as the
global business operation can acts as
the adverse impact in the betterment of
the company.
 There are many competitors of M&S
such as giving tough competition to
then that become the big threat for the
company.

them.
TASK 2
P2 Evaluate the capabilities & internal environment of a organisation by using right frameworks
Strategic capabilities & their key components
Strategic capabilities is referred as the procedure in that the strategies are being shaped up
& they further put into the action by the firm by which the high merits against competitors can be
attained by the company(Liu and Kong, 2021). There are various strategic capabilities and
majorly having six elements that are strategic purpose, key goals, action planning, tools for
evaluation, values & vision. These are the aspects which benefits the organisation by using their
set strategy in an appropriate manner.
Resource based view strategy
This referred to the managerial framework that is accessed by the companies in order to
analyse such strategic resources that can be exploited by them in order to ensure higher level of
sustainability & competitive advantage. In relation to this study, there are two types of resources
which are tangible and intangible resources. These tangible resources includes the plant and
machinery, building. Capital, equipments etc. on other hand, intangible resources do have their
physical appearance but they can rightly arranged by M&S that includes the trademarks,
intellectual property and reputation.
McKinsey's 7S model
This is the framework that helps in evaluating the organisational design of the company
by identifying 7 components. They are needed for maintaining effectively & properly, only then
a business organisation such as M&S will able to get their goals & objectives. These components
are given below:
 Strategy: This is the framed plan that is formulated by the organisation so that they can
established their competitive advantage by which the rivals can be competed in an proper
manner(Lin and et. al., 2021). When the Marks and Spencer do not make the effective
plan in order to have better strategy that the company might face issues such as downfall
in the customer base.

 Structure: It is the certain way in which the business is operating their functions and also
having the basic consideration to them. When the M&S is following inappropriate
structure then it leads to reduce the effectiveness of the company by which the rivals
companies can get the competitive advantage as well.
 Systems: It is the process that aim to have the effectiveness in their daily basis activities
and the decisions making of the venture. When the company is maintaining appropriate
systems which also benefits the business manager in order to implement various change
within the organisation properly.
 Skills: This includes the competences and the internal capabilities of employees in M&S
as they are following certain task within the organisation. With the help of capable staff
will allow in dealing with the adverse situation in right manner.
 Style: This shows the certain manner in that the firm is managing leadership style and in
such way they are interacting to their employees (Koneri, Green and Gilder, 2021). In
context to M&S, they are working by using participative style in which they welcome the
opinions of employees are given considerations.
 Staff: It is the element which is related to the type and the number of workers that are
working in M&S. This also includes the certain manner in that they are required to hired,
reward and trained their employees.
 Shared values: It is the core aspects of this model which includes the standards & norms
that guides the actions of companies such as M&S and the behaviour of their workers in
appropriate manner.
VRIO framework
It is the framework that is abbreviated as the valuable, rare, imitable & organisation. This
is the strategic tool which is used by the organisation to identify their available resources & the
internal capabilities. This also helps in achieving the high competitive advantages over its
competitors. In context to M&S, VRIO analysis is explained as follows:
 Valuable: This is the significant for manager in M&S to properly utilise their resources
by which they can have the tough competition to rivals in an appropriate manner. When
the company is having some of their valuable resources, they can generate more profits
from it(Kim and et. al., 2021). For example, valuable resources of M&S is their workers,
supply chain management, distribution channel.

 Rareness: These are the factors that which helps in understanding when the products is
being made by them is rare or not. In relation to M&S, this will helps them in gaining
customer loyalty by that they can increase their sales & revenue in an appropriate
manner. They are having manufacturing and production units and they also believe that
offering unique products and innovative goods to their potential customers with the help
of rareness.
 Imitable: They are required to follow those offers that can not be used or copied by the
rival company and if the product offered by M&S will be copied by any of the firms can
sold them in less amount due by which the people will not used by the buyers of their
services that are being offered by M&S. Raw material for producing food items & cloths
that are imitable resources for organisation.
 Organisation: This is the important for business such as M&S to manage their their
current resources by which they can rightly make the best utilisation of them. When the
products and the resources of the company is not fully utilised in an systematic manner.
This will increase the cost of the company. This will reduce the revenue for the company
by which they can compete against the rivals that become difficult task. Various
resources in consideration are employees, suppliers, investors & the stakeholder of the
company.
TASK 3
P3 Implement porter's five forces to analyse competitive forces of a market sector for a firm.
It is the framework which take the strategic decisions by analysing the future outcomes
rather than analysing the current competition. There are various factors related to this framework
that are given below in relation to M&S:
 Threat of new entrants: These are the aspects which is not having high threat as the
M&S is the renowned company that is operating at global level. This is also not possible
for the company to invest as much M&S is investing while performing their venture
functions & activities(Juliana, Gani and Jermias, 2021). Due to which, company is no
capable to compete with the M&S in comparison to the customer base, market share and
the various offering standardise goods to their buyers.

 Bargaining power of suppliers: there are large firms who are dealing in retailing sector
especially in the clothing and food industry. Due to this, the bargaining power of supplier
is high and the other firms will pay suppliers is also high. They may not be able to serve
the competition nor M&S will able to give the required material and resources due by
which the venture of their will not able to ear high profits and revenue.
 Bargaining power of buyers: In context to bargaining power of buyers, they are having
higher threat in context to M&S due to the huge competition in the retail sector. When
the company is charging higher prices from their customers without offering them the
satisfactory products to their customers(Habib and Hasan, 2021). This leads to shift their
preferences for the given goods will be offered by rivals.
 Threat of substitutes: As per the above report, there is possibly no substitute for cloths
and food. by this, threat from substituted products is less in context to the M&S.
However, when the company is offering goods as per the satisfaction of the consumer
which make feel reluctant in the purchasing the products of the company.
 Rivalry among existing competitors: there are certain retailing company that are
operating in UK and the global level such as Zara, H&M etc. These are the threat from
the competitors in high in case of M&S . This is due to the company rate and their
commodities as per the competitive pricing by which they are having slight high in the
product range of M&S and they further access the opportunities to their competitive
firms in increasing their customer base as well.
TASK 4
P4 Apply various models, theories & concepts to interpret strategic planning for a organisation
Porter's generic strategies
Generic strategic of porter helps them in analysing the way by that they can rightly reach
to the competitive scenario in the market place. Basically, there are three types of the strategies
such as differentiation, cost leadership and focus. In relation to M&S, these strategies are
explained as follows:
 Cost leadership: with the use of this strategy, customer who is having price sensitive can
easily targeted by the different companies. In this, M&S can offer the better products in

less prices by which they can rightly create the trust to their customers and so the
company will able to increases their sales and profitability.
 Differentiation: As per the given strategy, an organisation can offer innovative offering
to their customers by which they can easily differentiate from other ventures dealing in
the current sector. With the help of this strategy, M&S will offer the innovative and
advance products to their customers by which the overall sale of the company can be
enhanced.
 Focus: It is the strategy which includes two aspects that are cost focus and
differentiation(Gallegos-Baeza and et. al., 2021). In context to cost focus, M&S required
to provide those products in less price by which they can increase the number of people
who can buy their products. In differentiation, an organisation will be needed to offer
modern products by which they can rightly increase their customer base with being price
sensitive.
Bowman's strategic clock
It is the model which is used in business in exploring the appropriate strategic position
such as the way by which the M&S can position their products in order to have the high
advantage over its competitors in an appropriate manner. There are different aspects which are
related to these model are given below:
 Low price & low value added: It is the less competitive position for the M&S. When
the products are not differentiated the consumer is get less value for the products and
services even when the prices will be less.
 Low price: In context to the M&S, they can position itself as low cost leaders in market
by accessing cost minimisation techniques. Thus, profits for every goods will be low but
the due to high sales volume which also helps in increasing the overall profits.
 Hybrid: This strategy involves the low price & product differentiation and this strategy
will position their product of M&S.
 Differentiation: As per this strategy, M&S is needed to focus on giving innovation
offerings to their customers by which they can increase the sales of the company(Dalwai
and Salehi, 2021).
 Focused differentiation: Here, the products of the company is having the higher price
level by which they can have the higher level of purchase products due to its highly