Business Strategy Report: Marks and Spencer Analysis and Frameworks

This report provides a comprehensive analysis of Marks and Spencer's business strategy, examining its external and internal environments. It begins with an introduction to business strategy and its importance, followed by an overview of Marks and Spencer, a UK-based retailer. The report applies various frameworks, including PESTLE analysis, to assess the macro-environmental factors influencing the company. It also utilizes Ansoff's matrix to evaluate strategic options and SWOT analysis to identify strengths, weaknesses, opportunities, and threats. The analysis delves into the company's vision, mission, and objectives, and explores the application of Porter's Five Forces to evaluate competitive forces. The report concludes with an evaluation of strategic planning and offers recommendations for Marks and Spencer's business strategies, emphasizing market penetration as a key approach.

BUSINESS
STRATGEY

Table of Contents
Introduction .....................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Apply different frameworks to analyse the influence of macro environment on a company
and their business strategies.........................................................................................................3
TASK 2............................................................................................................................................7
P2 Evaluate the capabilities and internal environment of a company by using appropriate
frameworks..................................................................................................................................7
TASK 3..........................................................................................................................................10
P3 Implement porter's five forces to evaluate competitive forces of a market sector for a firm
....................................................................................................................................................10
P4 Apply different models, theories and concepts to interpret strategic planning for a company
....................................................................................................................................................12
CONCLUSION..............................................................................................................................13
References .....................................................................................................................................15
Thompson, A., Strickland, A.J. and Gamble, J., 2015. Crafting and executing strategy: Concepts
and readings. McGraw-Hill Education..........................................................................................15

Introduction
Business strategy is a process in which organisations aim to make various strategies so that they
are able to implement them to achieve their overall set business objectives and goals in the
specified time period. It can also be defined as a master plan which can be implemented by a
individual to achieve a competitive advantage in market. This report is based on Marks and
Spencer, this is a UK based retailer & manufacturer and they are dealing in food items, clothes
and various home related products (Anwar and Hasnu, 2016). This report includes various
different aspects which happen while a organisation is willing to make decisions related to
business strategies. Such as there is analysis of external environment of business, after that
internal analysis is done as analysing internal environment is equally important for all
organisations. There are various models and theories are also applied so that a successful
business plan can be made and further it can be implemented for achievement of laid down
business objectives and mission of organisation.
TASK 1
P1 Apply different frameworks to analyse the influence of macro environment on a company and
their business strategies
Overview: In this report, Marks and Spencer is chosen as the base organisation which is
a UK based multinational retailer brand. It is the organisation which was founded in the year
1884 by Michael Marks & Thomas Spencer. Company mainly deals in high quality home and
food products along with clothing facilities along with this they have around 959 physical stores
within the marketplace of UK. This is the company which provides high quality products and
services to their customer's at the competitive marketplace.
Vision: vision of Marks and Spencer is to create quality products and provide increased
value to their customers. This will be helpful for this company in having a strong customer base
which will have a outcome in terms of increased profits for this company.
Mission: In Marks and Spencer main vision of company is that they want to become a b
rand having a exceptional quality which is not provided in the prices at which they are offering
their products.
Objective: In Marks and Spencer objective of company is that they are able to become
leader in clothing & food sector this will help this company in becoming a global brand in these

two products. Which will also helpful for them in having a competitive advantage in market in
comparison with other brands dealing in such similar products (Burlton, 2015).
Main objective of Marks and Spencer is to increase their sales by 15% in the coming
quarter by usage of exiting products only.
Strategy can be defined as a action which will be taken by manger in firms so that overall
goals can be achieved in organisation. In general sense it can also b e said that to achieve high
results and growth this strategy plays a very crucial role. When effective strategies are
formulated then it helps in having a high advantage over other competitors in terms of total
revenue and sales of company. Achievement of high profits with help if various business
strategies will be very helpful for marks and Spencer in achievement of goals set by top
management in this company. This is a key which can lead to achievement of success at
international and national level (Chang, 2016).
Various strategies in planning techniques:
 Business analysis: When analysis of business will be done then all the functions will be
taking place in a more appropriate manner. Marks and Spencer will be able to
acknowledge overall weakness and strength with efficient means which will help them in
achieving success by efficient planning of all strategic decisions in Marks and Spencer.
 Benchmarking of activities: It can be defined as a comparison which can be done of
various metrics with other competitors or also can be with the entire industry in which
company is functioning. In Marks and Spencer they will be able to understand what is
market position which company is there in present situation when they will be able to
compare their performance with other market leaders. This will help them on formulation
of various appropriate strategies of business strategies for achievement of higher profits.
PESTLE analysis
Pestle analysis is framework which is used as a strategic tool by various business
organisations so that they are able to acknowledge and understand various external forces which
are prevailing in market. In case of marks and Spencer this analysis is done below:
Political factors: This is one factor which is concerned with various different types of tariff
rates, regulations of tax and stability in relation with central government. UK is a country which
is having a politically stable government and they are having tax rates for various business
organisations who are operating there (Chen and et. al., 2018).

 Positive Impact:It has been analysed that political condition of UK is quite stable as
laws, regulations and legislations developed by authorities remains constant from past
few years. This will assist M&S in performing their business functions within the
marketplace of UK.
 Negative Impact: For an organisation who tries to expand their business function at new
marketplace, legal issues might affect the sustainability of whole entity in a negative
manner. In order to prevent from such issues, effective strategies and policies need to be
developed by the management team.
Economic factors: This is factor which involves various factors such as GDP, interest rate,
inflation rates, purchasing power posses by citizens if this country and disposable income which
people is having. All such factors actually define whether or not people are able to purchase
various products which are being offered by Marks and Spencer. Positive Impact: M&S consider all the policies developed in an effective manner which
significantly impact upon the overall price, demands, revenue of the business
organisation.
 Negative Impact: Market share of M&S might get affected if there is any kind of changes
arise within the economic system and affect the whole profitability of organisation.
Social factors: There are various social aspects which are related to opinion, attitude, and belief
of people who are living at one particular place. UK is a country which is having a broad mind
society and here people are using advanced products. If Marks and Spencer will be vale to offer
high quality products in accordance with requirements of their customers then surely this brand
will be able to achieve high success and high sales. Positive Impact: Individuals within UK have modern thinking and consider western
clothing which help M&S in order to gain more profitability at the marketplace. Reason
behind this is that they provide products according to the customers requirements.
 Negative Impact: If management team does not adopt all the requirements of customers
affect the whole profitability of the company in a negative manner.
Technological factors: UK is a advanced country in terms of technology where citizen of this
country are involved in using digital technology and also internet up to a very high extent for
their daily business operations. In Marks and Spencer as a company they have to make efforts

that they are able to update themselves with various new technological advancements in
according with changing requirements of market (Eaton. and Kilby, 2015). Positive Impact: There are various competitors available at the marketplace which might
affect the whole good will of the company. For this, managers of the company adopt new
technologies which reduces scrap and wastage and produce high quality products.
 Negative Impact: Some of the techniques used by management team are commonly
adopted by other organisation. This as a result affect the overall profitability of the
company and market share in a negative manner.
Legal factors: This is also macro factor UK is a advanced nation and they are having lot of
norms legal rules and polices which have to be implemented by various companies functioning
in this country. Positive Impact: M&S adopt all the policies and legal factors in an effective manner
which ensure them in order to maintain their good will and reputation at the competitive
marketplace.
 Negative Impact: There are various types of legislations developed by countries which
are different from other nations. If all these policies does not consider by all the
management team in an effective manner than the overall performance might get affected
in a negative way.
Environmental factors: These are some of factors which are having link with protecting
environment from various hazardous emissions which can be made by organisations. It is very
important to follow all the business environment laws which will be of great help for Marks and
Spencer in having a positive image in market. Positive Impact: Company decides to avoid consumption of all the hazardous chemicals
while manufacturing goods and services. This help them in a positive manner for
maintaining their reputation in a positive manner at the marketplace.
 Negative Impact: Individuals within UK have high level of expectations from the
customers but they do not fulfil there requirements as they use various chemicals in order
to produce high quality products which might affect the overall image of the company.
Ansoff's matrix

Ansoff matrix is a strategic tools which is used by companies for planning by managers
in firms so that right strategy can be adopted for achieving success in formation of business
strategies:
Product development: In this strategy, a company is introducing a product in external market
which can help in attracting potential and existing customers. This will help Marks and Spencer,
will lead to increase in revenue (Langabeer and Champagne, 2016).
 Market development: For achievement of growth strategy existing products of company
can be offered to new customers can be achieved in Marks and Spencer. This will benefit
company in increasing of profit margins and sales.
 Market penetration: In this strategy, company tries to achieve market share with help of
existing products. In strategy company will be making efforts to provide services to their
customers which can help them in attaining high share of market.
 Diversification: this as one of most risky strategy as new products which are offering to
their customers in new market. If organisation will fail then it will be a huge loss of
customers. If new customers will be attracted towards Marks and Spencer and they will
be achieving high share in market and profits.
 In accordance with discussion done above, Marks and Spencer it is a recommendation
made that they should adopt market penetration as a best strategy worth reference to
present business situations. This will be of great benefit for this brand as they will be able
to increase their revenue and share and no efforts have to be done in direction of
introducing any new product in market (Lehmann, 2016).
SWOT :
This is a tool which is of great help for companies in case of M & S this SWOT analysis
is a tool which they use in making an analysis of various internal factors and understand
what are strength, weakness of a company. Part from that this tool also helps in
developing an understanding of what are various threats and opportunities which are
available with the company.
Strength Weakness
 There is a brand recognition in
case f Marks and Spencer which
 In UK many people have a
mentality that Marks and Spencer

helps in having a differentiation
identity as compared to other
similar brands. This image has
been achieved by this company
because of various different
products and services which they
are offering and they are of very
high quality.
 Marks and Spencer has a wide
variety of products which they
offer to their customers. Also, they
are able to cover needs of all
different segments of market such
as men, kids, women and this has
lead to availability of multiple
varieties for all segments of
customers being offered by Marks
and Spencer.
is a store which is offering non
trendy products especially in case
of youth they feel that marks and
Spencer is dealing into outdated
clothing which affects their sales
and brand image.
 Marks and Spencer is not able to
use new advanced technology for
their production work for this they
are having high cost of production
which affects their overall profit
percentage and are not able to
achieve higher profits.
Opportunities Threats
 Company have a very good
opportunity as they are having
presence in Asian and African
countries which has made it
widely available for their potential
customers. Also, their customers
can have easy access to their
products as they have opened their
stores across various locations.
 Marks and Spencer has a
opportunity that they can invest in
various marketing activities just
 There are many changes in
political environment which is
happening and there are also many
modifications have been going on
recently in global operations of
business which has lead to increase
in threat for Marks and Spencer.
 There are many rival companies or
brands which are giving
competition to Marks and Spencer
such as Zara, H&M this is leading
to increase in threat for Marks and

like their competitors which can
make them have a competitive
advantage in products which are
being offered by them, this will
help on attracting more
prospective buyers also their brand
will get a recognition.
Spencer (Martinez-Simarro,
Devece. and Llopis-Albert, 2015).
Critical analysis: With the help of above mentioned SWOT analysis, it has been said that
management team of the company develop various strategies in order to overcome their
weaknesses. All these strategies need to be implemented by the managers in an effective manner,
so that they can reduce negative impact. With the help of effective policies and strategies
organisation will be able to reduce their overall threats available at the marketplace. Along with
this, due to strong brand image of the company at the competitive marketplace, other well known
and new companies tries to collaborate with M&S.
CONCLUSION
With the assistance of above mentioned report, it is concluded that before expanding
business functions at international marketplace it is very essential for the management team to
examine the whole market. Along with this, managers need to examine their internal capabilities
and skills with the help of which they can develop their policies accordingly. Therefore,
management team use PESTLE analysis for examining the external market and in case of
internal capabilities SWOT analysis is used by the managers.
TASK 2
P2 Evaluate the capabilities and internal environment of a company by using appropriate
frameworks
Strategic capabilities and their key components
Strategic capabilities is a process in which there are various strategies which after put in
action by many company so that they have a advantage against their various competitors. There
are many strategic capabilities which is having six main components such as key goals, tools for

analysis purpose, vision and values. These are components which are benefitting the company
and using strategy in a manner which is beneficial for organisation (Nohria, 2017).
Resource based view strategy
Resource based view refers to a managerial framework used by large number of
companies in order to identify those resources which might be adopted by the company in order
to gain sustainability as well as competitive advantage at the market place. In the context of these
strategies there are mainly two types of resources which are intangible & tangible resource. In
case of tangible resources various elements and physical resources which includes land,
machinery, capital, buildings, lands, equipment’s and many more. On the other hand intangible
resources are not in the form of physical but are associated with the organization with
companies like M&S like trademarks, intellectual property, brand reputation and so on
(Moseley .2017).
McKinsey's 7S model
McKinsey's is a tool used by organizations in order to examine organisational design of a
institution by determining seven essential internal elements. These are the components are
required to be associated in an effective and appropriate manner, this will assist in attaining goals
of a company like Marks & Spencer. All these elements are going to be discussed as follows:
 Strategy: It refers to a plan developed by an organization in order to accomplish
competitive advantage at the market place so that competition will be maintained
effectively. If M&S will not modify or robust their strategy then the organization need to
face ample number of difficulty such as reduction in customer base and sales.
 Structure: It defines the way in which an organization, units as well as divisions are
being organised, managed and share information along with data with each other in an
appropriate manner. If M&S do not have effective structure then there overall
effectiveness will be decreased which assist rival companies in order to gain various
advantages at the marketplace.
 Systems: This process of organization aims to depict daily activities as well as decision
making of a business organisation. Therefore, maintaining effective systems provide
ample number of benefits in order to implement organisational change in an appropriate
manner (Yoffie and Cusumano, 2015).

 Skills: It consist of competences as well as capabilities of staff members within M&S
while doing business operations. Capable and skilled staff members of M&S helps them
in order to deal with complex situations.
 Style: It represents the way where an organization is managed and controlled by
management as well as top level team along with the manner in which they made
interaction with their staff members. In the context of M&S, participative is the style
which is used by management team.
 Staff: This factor is associated with the kind along with the number of staff members
working in M&S. It includes the way in which employees are being hired, trained,
motivated as well as rewarded.
 Shared values: It is the last essentials element of McKinsey's 7s model which involves
the norms as well as standards which provide guidance to the company like M&S &
attitude of staff members in an appropriate manner.
VRIO framework
VRIO analysis refers to an abbreviation which stands for value, rarity, imitability as
organisation. It defines as a strategical tool mainly used by large number of organizations in
order to examine their available internal resources, capabilities, skills and knowledge of
employees. This will assist them in order to attain highly competitive advantage at the
competitive marketplace over their rival organisations (Torrent-Sellens, 2015). In the present
context of M&S, VRIO analysis model are going to be discussed in detail manner which are as
follows:
 Valuable: It is one of the most essential element for the management team of M&S in
order to effectively utilise their all valuable and high quality resources. This will assist
them in making tough competition at the marketplace by using all the resource in an
appropriate manner. It has been analysed that if a business organisation posses valuable
resources positively and effectively, they will be able to gain high amount of profitability
at the marketplace. For instance, in case of valuable resource in context of M&S is supply
chain management, employees as well as distribution channel.
 Rareness: It is most significant element or aspect which benefits an organisation in order
to understand whether the products or services developed by the company is rare or not.
In the context of M&S most rare products offered by the company in order to retain their

loyal customers for a longer period of time and assist in increasing sales as well as
profitability at the competitive marketplace. For this, rare products or elements in case of
M&S is manufacturing as well as production machines. Therefore, M&S highly believes
in developing unique & innovative goods and services to their consumers which makes
the whole firm very rare at the market area (Lehmann, 2016).
 Imitable: M&S needs to provide those goods and services which are not copied and
duplicated by any rival organisations present at the market place. If all the products
which are being offered by M&S copied by any rival firm will be sell by them in low
price which might affect the whole business functions in a negative manner at the market
place. Therefore, in the present context of M&S imitable resources for the organization
includes raw material used by them for producing food item and clothes. This as a result
make them one of the most competitive company at the marketplace as they provide high
quality products and services (Yuliansyah, Rammal and Rose, 2016)..
 Organisation: Last element which is included in this framework is business
organisations for example M&S has to manage and control their current resources in an
appropriate and effective manner. If all the resources as well as materials of an
organization need to be used in an appropriate and systematic manner which will leads to
increase their overall profitability as well as revenue of the company. But on the other
hand, if these resources are not used in an effective manner then company will not be
able to beat the competition available at the marketplace which is quite difficult for the
management team. Some of the resources in this context used by management team of
M&S such as suppliers, employees, investors as well as stakeholders of an organization
(Maté, Trujillo and Mylopoulos, 2012).
CONCLUSION
From above discussion it can be said that resource based view is a very effective strategy which
can be used in making a analysis of competitive advantage which can help a company in
surviving in the huge competitive environment. This helps a company in identification of those
resources which is necessary for them in having a differentiation advantage in the external
environment.