Consultancy Report on Organisational Strategy for Marks and Spencer

This consultancy report provides a comprehensive analysis of Marks & Spencer's organizational strategy, aiming to identify strategic options for future growth. The report begins with an introduction to organizational strategy and its importance, setting the stage for an examination of Marks & Spencer. It then delves into the tools and frameworks used to develop strategic options, including the Ansoff Matrix, Porter's Generic Strategies, and Roger Martin's cascade of choices. The Ansoff Matrix is utilized to explore market penetration, product development, market development, and diversification strategies. Porter's Generic Strategies, including cost leadership, differentiation, and focus strategies, are analyzed to determine competitive advantages. Roger Martin's cascade of choices helps to define winning aspirations, playing fields, and methods for success. Furthermore, the report develops a value proposition for the company, incorporating a marketing strategy to enhance value for targeted customers, and discusses segmentation, targeting, and positioning strategies. The report concludes with a summary of findings and recommendations, offering actionable insights for Marks & Spencer's strategic planning and future success.

CONSULTANCY REPORT ON
ORGANISATIONAL STRATEGY

Table of Contents
INTRODUCTION.......................................................................................................................................3
ASSIGNMENT...........................................................................................................................................3
Tool of framework to develop strategic options for the future.................................................................3
Porters Generic Strategies........................................................................................................................5
Roger Martin’s cascade of choices..........................................................................................................7
Development of Value Proposition that company can offer to its customers.........................................10
Segmenting, targeting and positioning...................................................................................................12
CONCLUSION.........................................................................................................................................14
REFERENCES..........................................................................................................................................15

INTRODUCTION
Organizational strategy refers as sum of the actions in the organization that is intend for
achieving the long term business objectives and goals. Together these actions are helpful for
making the strategic plan for the organization. Strategic plans are helpful for the Company to
lead it towards success as it delivers competitive advantage to the organization. The study is
based on Marks and Spencer. The company is British retailer who operates on multinational
level. The company deals in clothing, home and food products. This firm is founded on 1884 by
Michael Marks and Thomas Spencer. The headquarters of the organization are located at London
in United Kingdom.
The study will determine future strategic options for the firm. It will suggest best suitable
option for the Marks and Spencer which the firm can adopt. For developing options it will use
Porters generic strategies and Ansoff Matrix. Then to provide strategic choices the report will
cover Roger Martin’s cascade of choices. Furthermore, it will develop Value Proposition for the
company and will show that this incorporated Marketing Strategy in order to increase the value
proposition for the targeted customers.
ASSIGNMENT
Tool of framework to develop strategic options for the future
Strategic tools are helpful for driving a business plan and to implement the business
strategies successfully in the organization. Strategic planning covers the vision, mission and
goals of the company. The future objective of Marks and Spencer is to do digital transformation.
This includes the innovation of the products and services, increasing social networking and
optimum use of artificial intelligence in the business for increasing the productivity of the
company (Carvalho and Madeira, 2020). Strategic choices are of three types which are explained
as follows –
 Business Strategy - It is about making choices for positioning the business in such a way
that it can take lead from its competitors.

 Strategic directions – This is about to make choices related to products, markets and
industries to pursue.
 Strategy methods – This is about how to achieve the strategies through acquisition,
alliances etc.
Here are the various tools through which the best strategic option for the company can be
evaluated -
Ansoff Matrix
The Matrix is introduced by the Igor Ansoff. Marks and Spencer use Ansoff Matrix for
analysis their business portfolio. It derives four ways through which company can achieve
higher profitability.
Market Penetration – It is more focused on growing the existing products in existing markets in
order to increase the market share. Marks and Spencer can achieve high market share through
engaging in social media advertising (Kwayu, Lal and Abubakre, 2018). Through this the
company can able to attract the large number customers as social media users are highly active.
The company can also introduce the free overnight shipping concept for penetrating the e-
commerce business.
Product Development – In this new products are developed in the existing markets. Marks and
Spencer can introduce online food delivery services for retaining their existing customers
segment. The online food delivery is high in demand. They can also supply their food products in
wedding, conferences and parties.
Market Development – In this the existing products are delivered to new markets. The firm
main objective is to find new markets internationally and domestically for their existing
products. The firm is already using this strategy (Yakis-Douglas and Meadows, 2017). They are
currently operating in 57 countries with their 1463 stores. The firm has an option to do
expansion of their business in African markets. The African markets have opportunity in food,
beverage and financial services as industrial revolution is underway (Africa’s untapped business
potential, 2019). In Africa innovations to unleash resource wealth and agriculture as the country
is known for resource abundance in agriculture. Thus, Marks and Spencer can establish their

plants in Africa and can create exciting growth opportunities. They also have to increase their
sales in emerging markets such as India, china and Russia.
Diversification – Under this the company introduce new products in new markets. The company
is very limited in their clothes sizes. Hence, they can offer clothes in new size range for the
women in African markets. The company has very low market share in African market. This is
high time for Marks and Spencer to offer plus size clothes in African market. Thus, by this the
company is able to generate high profitability.
Porters Generic Strategies
Porter's Generic strategies are as follows -
 Cost Leadership - In reference with context with the cost leadership, Marks and Spencer
sets will try to be the producer with the lowest in the market. The sources of advantages
related to price are dependent & varied with the frame of the market (Porter's Generic
Strategies, 2020). It also includes the benefits such as economies of scale, technology,
proprietorship and preference related access of initial material required and some major
issues. The lowest cost producer will analyze and use every source that lead to cost
advantage. If an organization will sustain and achieve, of course with the overall price
leadership, so the firm may considered as a performer who is above average in the market
that will control the prices near the industrial average.
 Differentiation - In this strategy the Marks and Spencer will try to become different in
the industry with some dimensions that contains a big value by the customers. It often
selects single or many attributes which almost all buyers in a firm gives importance, &
the duty of the firm is to meet that position in order to fulfill the needs. This is also
rewarded for the different look with a valuable initial price. These ways of achieving
differentiation may be different mostly in these industries, services & products. Even
then, these also include certain features, functional ability, and durability and even how
the brand of its good is sold in order to create a picture which is valued by consumers.
While developing products, the organization must focus on certain criteria’s that are
valued by customers inside the industry, and so then orient them differently to meet those
objectives.

 Cost Focus – This strategy means that organizations such as Marks and Spencer who
tries to get a low cost producing advantage, then even they tries only inside some market
segments that are small (Willis, Riley and Yessis, 2017). These products will mostly
considered as basic, but most similar to the average in the market that leads to product
generation and must accepted by some reliable customers to increase profit. Example can
be related to budget of clothing goods or some other consumer tools that are maintained
by some little, and local markets. Other may be of a lowest cost airline which only
focuses on some special routes.
Figure 1 Generic Strategies (Source: Porter's Generic Strategies, 2020)
 Differentiation Focus – It is a kind of differentiation-focus strategy, the Marks and
Spencer should try to develop products that are different, but only inside single and
within a small variety of market segment (FurnissCurzon and Blandford, 2018.). Because
the organization will have an identified and a small customer group by which it have to

focus, these will be more closely related to the needs and wants of selected group rather
than of those organizations which are trying to differentiate it for a big population.
Interactive strategies -
 Hyper competitive strategy - competitive strategies can be defined as organizations
such as Marks and Spencer, who make use of some sort of tactics related to discourage
the competitive advantage that is held by leaders in the industry. Huge competition
mostly occurs at a rapid stage. For example, let's say that you are owner of a retailing
shop and your items are priced some higher as compared to a rival retailer shop. If a
person decides to adjust its prices with close to competitors to or lower than your rival
then this is hyper competition.
 Cooperative strategy - This strategy is a planning strategy which is used by single or
more firms to work together for an objective to achieve signified objective. Many
companies use cooperative strategies in order to increase the profits through cooperation
and with some different companies which tries just opposite (Chen, Eshleman and
Soileau, 2017). A cooperative strategy will be given an advantage to Marks and Spencer,
especially when they have a lack of competition, this strategy will give the company a
possibility to fulfill the lack of competition.
 Strategy of game theory - In this game theory, the strategy of player is related to the
opinions which are chosen by the individual himself in a context in which the output is
dependent not only on the own actions of the company but also on the actions of other
players. A player's strategy is the main factor which determines the actions in which a
player will take part in any one stage of the game.
The Marks and Spencer will choose cost leadership strategy in order to become lowest cost
producer in the industry. This strategy will be successful implemented as the company is also
doing digital transformation at the same time. Digital transformation of the company will include
taking the business on digital platform and thus advertising will also be digital on platforms such
as social media and YouTube (Holotiuk and Beimborn, 2017). The communication will also
introduce new and innovative products and ideas to boost up their sales. This will also include
the use of artificial intelligence to minimize the cost and to achieve the strategy of cost
leadership to become lowest cost producer in the industry.

Roger Martin’s cascade of choices
Hilary Austen and Roger Martin have suggested the integrative thinking art. The choice
options cascade down from the higher to lower order choices (Strategic Choices, 2020). The
choices are becoming interrelated and also need to fit constraints and context from its higher
levels. It is the winning strategy. The suggestion is made by AG Lafley for the organizations
about developing cadre of strategic choice makers, there idea is about that organization should
knew what it takes in order to win.. Cascade of choices is describe as follows –
What is winning aspiration?
It is the aspiration which is comes to drive the business towards success. The idea of
aspiration is positively upward connotation. It talks about the purpose of organization or
enterprise. Marks and Spencer purpose is to serve each class people from top to middle to lower
through their general stores. The Company focus is to provide high quality products in
considerably lower prices from their competitors. This strategy is helpful for the firm to retain
their customers.
Where organization will play?
It is about the playing field shall right in terms of geographic, consumer segments,
product categories and vertical stage of production. Marks and Spencer are operating at global
level by offering fashionable clothes and award winning stylish home ware and food. The
company is operating in fifty seven countries across the world. The consumer segment of the
company is majorly categorized in three group’s occasional, top and core. The brand is more
focused on middle aged consumers or shoppers. The company is tending to offer clothing and
homeware which are stylish and contemporary of greater value.
How will they win?
In this the unique way for winning has to be established about the company’s value
proposition and need to think about gaining competitive advantage. Marks and Spencer is doing
digital transformation in which it will introduced innovative products which are be available on
their online stores and their focus is to increase the social networking. Marks and Spencer will be
able to create impactful strategies related to promotional activities in the organization. The

company can take use of artificial intelligence for driving their business towards higher
productivity (Leischnig, Woelfl and Ivens, 2016). It will help the customer’s to take smarter
decisions. It will be helpful for doing real time forecasting and with better accuracy. Marks and
Spencer will try to build sustainable business by maintaining consistent profitable growth and by
making sure that they responsibly meet their stakeholder’s requirements.
Figure 2 Strategic Choices Cascade (Source: Strategic Choices, 2020)
Capabilities which must be placed?
This refers as set of capabilities which are required to Marks and Spencer for the
winning. This is reinforcing activities. The company has various resources and core
competencies which are described as follows -

Physical resources - Marks and Spencer has same resources as their competitors have but each
firm manages its resources differently. The following resources are available in Marks and
Spencer -
 Value for money product- Through managing and using the resources appropriately the
firm has good value for their products. They have their own brand which is gaining
popularity today and also will continue to grow in near future. They are trying to develop
their products on continuously basis in order to survive in competitive retail industry.
Most of the suppliers of the company are from UK by which they are facing the cost
problems. Thus the company should develop their suppliers in global markets.
 Own brand products - The company is selling their products by using their own brand
name. They get succeed in achieving the good quality standards for their products. Marks
and Spencer are recognized as first retailer who has sale their own brands. There is also a
drawback that they do not avail other popular brands products in their stores through
which they have to face cut throat competition and some of their loyal customers are also
showing switching behavior.
 Store displays and site - The Company is expanding their stores areas. They are doing
this through converting their stock rooms into the floor areas. But their food products are
perishable in nature there is requirement of stock rooms. Hence, the company can started
using digital technology in their stores room so that their food items which are perishable
in nature can get saved from spoilage. The retail software will be helpful for the
company to notify the stock managers about the quantity and expiry date of the food
products.
Core Competence - This refer as some factors which differentiate Marks and Spencer products
from the other brands. Marks and Spencer has wide range of their own brand produces. Thus,
their quality is better in comparison to others brands.
Managements systems which are required?
In this the support systems of the firm are evaluated. It includes structures, systems and
measures that are required for supporting the choices. The organization structure of Marks and
Spencer is flatter. The employees are also participating in decision making of the firm. The

decisions are also taken on quicker basis. Thus, through this Marks and Spencer is able to take
quicker decision this will help the company to bring innovative ideas from their staff and
employees.
Development of Value Proposition that company can offer to its customers
Value proposition
It is the promise which company makes to its customers to offer high quality products for
staying on the top. It means to offer valuable products to the customers which are differentiate
from the competitors. It is the part of company's overall marketing strategy. It gives a reason to
customers that why they should purchase Marks and Spencer products.
Main customers – The core customers of Marks and Spencer are men and women of age group
up to 55. The company offers per una range which is for the women who are fashion conscious
and aged from 25 to 35 years. The company also target from 33 to 55 aged group women and
men for classic and perfect range in the company. The social and income class of the company is
not high. The company offers reasonable price of products and target low to high income group
of people. For high income group customers the company offers luxurious products which are
named as Autograph range.
Customer’s problems – By identifying customer’s problem the company is able do innovation
in their products. The company will identify problems of the customers through regularly asking
them feedbacks on their online portal. It has been determined that customers have problem in
food variety. Thus, the company can do innovation in their food products (Evans, Vladimirova
and Barlow, 2017). They can introduce new range of organic food products. By doing this the
customer satisfaction in the company will get increased.
Unique benefit – The Company is focus on latest design and style in their clothes. The design in
their clothes changes as per seasons such as summer and spring collection. They provide high
quality products in considerably lesser price than their competitors. They have variety in their
own brands products. Marks and Spencer strategy is to reduce their costs at least by 350 million
pounds in order to become more efficient and cut the wastage cost from the operations. The
company is planning to do digital transformation. The company can offer their products through
launching their own online app. The products will be offer at lower price and of high quality.

Competitive advantage – The Company can take use of artificial intelligence this will help to
do real time forecasting of the customers products and will enhance the experience of shoppers.
Good forecasting will help the retailers to optimize their supply chain. It will help to improve
their customer satisfaction. Thus, artificial intelligence has its great use in the company. This will
help the Marks and Spencer to take competitive edge.
Segmenting, targeting and positioning
Segmenting - It is a activity of seprating a huge customer market or a huge industrial market,
which consists of some potential customers, into small sub-groups of customers related to on
some sort of characteristics. The process of separating segments in the market, researchers of
Marks and Spencer hardly look for some similar characteristics like shared needs, similar
lifestyles, same interests, or some same demographic profiles. The main aim of segmenting is to
identify all the high yield segments, which are those segments which are most profitable one
which has a big potential for growth, so by which these may be easily selected for some special
and specific attention (Johnson, Whittington and Regnér, 2017). For every company such as
Marks and Spencer there are various ways of segmenting a market that is already identified.
Business-to-business sellers may differentiate the market into various type of business.
Targeting - It is considered as a vital process in segmentation, and it includes actual
determination of the selected markets and also involves the planning of the advertised media that
is used for making the segment useful. Targeting is also considered as changing business
environment. Modern practices of advertising are through print and some media sources that are
making a way for some special sources such as social media presence for companies such as
Marks and Spencer that leads to a much more web-connected focal behavior. Behavioral
targeting is also considered as key for this change, and only focus on the optimization related to
online advertising and the data collection to send a text conversation to potential segments of
some potential buyers. This process is like collection of something or similar to that , such as
small segments of information that are thus received by the consumer and are sold to a business
unit in order to identify the potential segments that are useful. While in targeting a market, there
are three types of market choices in hands of Marks and Spencer to consider, differentiated,
undifferentiated and niche marketing. While choosing which market is going to be targeted,
choice is dependent on the service offered.