Marks & Spencer Strategic Management Plan: Business Strategy Report

This report provides a strategic management plan for Marks and Spencer (M&S), a British departmental store. It analyzes the internal and external factors impacting M&S using PESTLE and SWOT analyses, evaluates the competitive environment using Porter's Five Forces model, and identifies the organization's competitive advantages through the VRIO model. The report also proposes strategies and tactical objectives to achieve overall strategic goals, critically evaluates different strategic directions available to M&S, recommends appropriate growth platforms, and suggests methods for monitoring the chosen strategy's effectiveness. The analysis covers aspects such as political and economic factors, social trends, technological advancements, legal considerations, and environmental concerns, providing a comprehensive overview of M&S's strategic position and potential future directions.

Unit 32 Business Strategy
Strategic Management Plan Part
A and B

Table of Contents
INTRODUCTION...........................................................................................................................3
PART A ..........................................................................................................................................3
Analysis of detailed PESTLE and SWOT ..................................................................................3
Evaluation of competitive environment using Porter five forces model.....................................4
Identifying and justifying the organization's existing and potential competitive advantages.....6
Providing the valid strategies and tactical objectives to achieve overall strategic objectives.....8
PART-B...........................................................................................................................................9
Critically evaluating different types of strategic direction that are available to the organisation
......................................................................................................................................................9
Recommending the most appropriate growth platforms ...........................................................12
Evaluating ways and means which chosen strategy might be monitored.................................13
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Strategic management is the process of setting objectives and goals , analyse the
competitive advantage of the firm and evaluate the strategies that would be best suited for the
firm in the future operations. Further, present report is based on Marks and Spencer that is
very well known British departmental store selling variety of goods and services . Also, the
report will discuss the factors that will impact internal environment of the business through
applying various models and theories. Moreover, the study will highlight the competitive
environment of the firm using the porter five forces model. Also, justification of the
organisations strategy will also be discussed through the VRIO model. Furthermore, the report
will identify different types of strategic directions that are available to the organisation using
the different models. Lastly the report will recommended the best growth platforms that are
available to the firm along with identifying the methods through which it is would be evaluated
in long run.
PART A
Analysis of detailed PESTLE and SWOT
PESTLE analysis
Political: Various factors such as trade restrictions, political stability , tariff rates etc.
affects the operations of the business on large scale. In context of marks and Spencer it can be
said that if there is political instability within any country than it would not be able to expand its
business operations successfully into other regions.
Economical:, The new Brexit reforms within the UK would not allow the firm to trade
various goods and services within different regions easily. Also, if the inflation rate in any
country is higher than it would create problem for the firm to sell goods at lower prices in the
target market (Marks and Spencer PESTLE Analysis, 2022) . Furthermore, if there is higher
unemployment rate after the pandemic than it would positive factor for the firm as it would be
able to hire more labour at low wage rates.
Social: Various factors such as attitudes, beliefs, norms etc. also affect the business on
large scale. Also, marks and Spencer need to ensure that all the services and goods provided are
in accordance with the current trends such as sustainability to ensure maximum sales and
continuous operations. Moreover, if the firm is not working according to the current fashion
trends than it is likely to lose the market and not increase the business.

Technological: If Mark and Spencer does not upgrade its technology on timely basis
than there are chances that it might not be able to sustain in retail industry for long time. Thus,
various new trends such as self checkout points, online shopping etc. had been implemented by
the firm to create positive impact on working operations. Also, cost of technology and the
estimated revenues need to be identified closely so that firm does not have to waste resources
on unnecessary activities.
Legal: Certain laws and regulations in UK such as health and safety laws, minimum
wages laws, labour laws etc. if not followed properly than it might create negative impact on the
business (Bindra, Parameswar and Dhir, 2019). Moreover, if these laws are followed in strict
manner than there are less chances of government intervention in the future.
Environmental: In current era people are more concern in protecting the environment
and thus firms are required that they take care of producing the nature through using methods
that are sustainable.
SWOT analysis
Strength
 Marks and Spencer also sells the
products of the private labels apart
form the premium brands.
 Also, it has established the
multichannel presences across the
world (Ongaro and et.al., 2021)
Weakness
 Poor supply chain system due to which
decline in the sales of the business.
 High cost due to more of manual
operations that limits the revenues for
the business.
Opportunities
 Expanding into newer regions through
online store
 Global expansion through joint
ventures, partnership etc.
Threats
 High competition from the other retail
sector
 Increase in the substitute products at the
lower prices (Yaakob and et.al., 2019).
Evaluation of competitive environment using Porter five forces model
It is very well known that operations of the business are affected by various factors and
to gain competitive advantage Marks and Spencer should apply the following model

Threat of new entrants : It can be said that for marks and Spencer threat of new
entrants is very low because huge cost of entry and maintenance in the clothing sector is required
which is not possible for every small business do so at the entrance level (De Moortel and
Crispeels, 2018). Also, it can be said that due to limited entrance in this sector quoted firm has
the opportunity to expand its business smoothly.
Threat of substitute: If in any market there are more number of substitute than there are
higher chances that sales of each business would be limited due to less number of buyers.
Further, in context of clothing sector it can be said that this factor is very high and thus it might
be threat to the quoted firm as buyers are able to switch to other options that are available in the
market.
Bargaining power of buyers: It can be said that this factor is also very high for Marks
and Spencer as firm need to sell goods according to the needs and wants of the customers.
Hence, in those areas where the firm is not able to the fulfil the demand than the buyers move
to sellers that are providing the high quality products at reasonable prices.
Bargaining power of suppliers : This factor is very low for Marks and Spencer as the
the firm purchase clothing products from only those retailers that are very well known in the
market (Tonelli and Cristoni, 2018). Thus, most of the suppliers wish to be added in the list of
the Marks and Spencer as it company has good brand image across various regions.
Competitive rivalry : This factor is very high for quoted firm as it can be said that
companies enter with similar products that are sold by the firm at the little lower prices that
might hugely impact the sales of the business. Also, there are higher chances that other
companies sell more design focused products at lower prices that might impact the sales of the
business.
Thus, through analysing above competitive forces Marks and Spencer would be able to
identify major strengths and weakness and would be able to determine the best corporate strategy
that might be used by the business for the same. Also, the quoted firm would be able to increase
long term profitability of the business so that competitive advantage in the market might be
maintained (Aguilar and et.al., 2021.). Furthermore, through identifying the potential risk the
firm would be able to devise better strategies and ensure the best working for the organisation.

Identifying and justifying the organization's existing and potential competitive advantages
Marks and Spencer is one of international organizational that operates in the retail sector that
gives emphasis on gaining the competitive advantages so that effective functioning can be
derived. In the current era, there are various aspects that tend to give crucial benefits to
organization which has enabled to receive the leading position in sector. From the evaluation and
conducting of VRIO model company's prevailing competitive advantages can be assessed
(Veselovsky and et.al., 2019). This aids in gaining the insights about valuable, rare, imitate and
organization so that particular resource is serving competitive edge to firm can be identified.
Resources Valuable Rare Imitate Organization Competitive
advantage
Network
flexibility of
supply chain
Yes Yes Can be imitate
by competitors
- Can give the
competitive
edge as
potential
certainty there.
Financial
resources
Yes - - Company has
sustainable
financial
position
Temporary
competitive
advantages
(VRIO
Framework,
2022).
Talent
management
Yes - Can be
imitated by
other firms
Yes Not crucial
advantage
Market
position
Yes Yes - Yes Sustainable
competitive
advantage
Awareness of
brand
Yes Yes - Yes Strong
competitive

advantage
Pricing
strategy
Yes - - Yes Temporary
competitive
edge
Leadership
team
Yes Yes - Yes Sustainable
competitive
advantage
Global and
local presence
Yes Yes Can be
imitated by
similar
organizations
n
Yes Strong
competitive
advantages
Justification:
From the evaluation of the above provided information from the VRIO analysis it can be
identified that in the preset working scenario it can be articulated that there are few distinct
benefits. It can be specified that supply chain of M&S is good which is allowed to cover the
greater market share but imitate by the other firms operating in sector. Market position is the
significant competitive merit for firm as there is appropriate level of brand image which is
permitted to gain the leading tag (Drnevich, Mahoney and Schendel, 2020). The awareness of
brand is severed as good indicator of competitive benefit which can be justified that there is
execution of relevant marketing techniques which is permitting receiving higher benefits. In the
set of current differentiation quality of firm which is enabling to get good level of performance
includes leadership team that can be validated by the targets accomplished by employees in
effectual pattern to receive higher significant outcomes as per set standards. Global and local
presence can be justified that firm is having proper presence in larger number of countries
though possessing effectual digital emergence in turn greater revenue generation has become
possible.
On the basis of this it can be interpreted that potential competitive factor that can provide
assistance to organization is having effective pricing strategy through execution of cost

leadership in turn greater financial resources that can not be easily imitated by competitors.
Having diverse supply chain can aid in getting the better position in retail industry can be the
potential competitive edge that can assist in overcoming current & upcoming threats for
achieving desirable and non financial performance in futuristic time.
Providing the valid strategies and tactical objectives to achieve overall strategic objectives
It is important for the organization to pay attention on developing significant tactics and
strategies so that effective performance by declining negative influence of lacking areas can be
derived in order to gain the competitive performance in the sector having tactical objectives that
are connected with the short term so that effective structure in firm to eliminate negative impact
can become possible (Sullivan, Thomas and Rosano, 2018). The tactical objectives which can
help M&S to receive sustainable growth via formulating suitable strategies includes formulating
diverse supply chain, reducing cost, executing technical devices to avoid the errors and
mistakes, etc.
 The one of the significant strategy that can be applicable for the business in respect to
achieve the tactical objective of reducing expenses to have higher profitability is cost
leadership (What Is Cost Leadership Strategy? 2022). In addition to this, it can be
interpreted that lowing expenditure can be exerted by eliminating the irrelevant aspects
that are leading to inappropriate h expenses. Price optimization with help of cost
leadership can be done that can as well allow meeting the overall objective of fir to have
higher profitability to effectively coordinate with changing circumstances of market.
 Market research is major technique that provides assistance to company to get ability to
obtain information about the prevailing performance such as customer satisfaction, taste
& preferences trend, etc. This information is important in respect to recognize the lacking
areas so that accomplishing appropriate insights to implement suitable course of action in
turn higher capability to avoid lacking areas can become possible (Ongaro and Ferlie,
2020). This can enable firm to execute the relevant technological devices so that
assurance of quality performance to meet the overall goal of firm to coordinate with
requirements of market can be done in effective pattern. In addition to this, inclination in
efficiency & effectiveness can become possible in respect to get the higher
productiveness to meet market forces such as supply and demand in turn attaining aim of
covering greater share with obtaining loyal customers.

 Fostering positive working environment to boost the employee engagement to derive
innovative practices to receive higher competitive position. The positive workings culture
in respective to retain employees for longer duration by having perforation appraisal
approach for inclining job satisfaction enhances brand image in market. The combination
of all these actions tends to impact firm in positive manner which allows receiving
economies of scale by attaining all predetermined tactical objectives. For being
successful enterprise, optimizing resources is crucial to get significant part of action in
turn having appropriate position to uplift the performance in turn meeting higher
competitive position by eliminating prevailing lacking areas can become possible.
On the basis of provided strategies the company can get the effective ability to attain
such competitive position in turn higher performance to build reliable management to have
distinct performance (Stoyanova and et.al., 2019). These can contribute in receiving the reliable
results to boost the growth and development in order to accomplish predetermined objectives by
executing strategies in corrective pattern.
PART-B
Critically evaluating different types of strategic direction that are available to the organisation
The strategic directions is described as the foundational ideas or the actions that used to
allow the greater consistency for the made strategy. The different types of strategic directions
available to the organization are as described below:
Bowman' Strategy clock: This is the easy and comprehensive strategic tool that helps the
organization in order to provide the options for positioning in the market based price and
perceived value. There are basically eight positions and each used to highlight different strategy
to win the marketplace which are as described below:
▪ Low price & low value added: In this position it used to have the strategy about
the quantity selling. The product and services are basically low in the value and
the price point is as low as possible (Chaudhuri, Leiblein and Reuer, 2021). By
having this combination makes it the least competitive area in the model.
▪ Low Price: In this strategy, it used to have the lowest cost option for the buyers
in the market. This strategy has the lowest margins, by this the efficiency and cost

reduction makes them successful in the market. M&S can use this strategy in
order to grow in the market by selling the high quantity at the low prices.
▪ Hybrid: This is the position between the low prices and differentiation. It is
around ensuring the price competitive and having the low perceived price from
the buyers. This will help the organization to maximize and maintaining the good
margins.
▪ Differentiation: In the differentiation strategy used to focus on the differentiating
the products and services from its competitors by having the high perceived value.
The cited organization may use this position of the strategy clock which helps
them to differentiate their products from the competitors in the market.
▪ Focused differentiation: The focused differentiation is used to provide the high
value at the high prices (Rêgo and et.al., 2021). When it is successfully adopted it
helps the organization to have the high profits but it is difficult to maintain in the
vast market.
▪ Risky high margins: The main thrust of the risky high margin is to have the high
price without adding the perceived value. In order to bring something new in the
market the organization must be sure that they may not get in the loss.
▪ Monopoly pricing: In this strategic clock the single firm used to have overall
control on the products and pricing (Tolstyakova and Batyrova, 2020). This may
be the best position as in this there are no competitors and the company enjoys the
monopoly power in the market. When the company enjoys the monopoly power it
is less concerned about the customer value and pricing of the products. As the
customer has no availability of the products because it is the single seller in the
market.
▪ Loss of market share: This is basically the worst position as it makes and suggest
the exciting company to have exited from the market by declining. The company
may choose this strategy if they have to enter the new market. This used to
involve the products having the low perceived value but having the high pricing
in the market.
Ansoff matrix

It is type of matrix that is developed to facilitate the business towards the better
business growth and it consist of following elements that are described as follows:
Product development: It is strategy that is used by the firm to develop new product to
be sold in the existing market (Aydın, Nyadera and Önder, 2020). Also, for developing the new
product it is very important that firm has the strong understanding of the market and is ready to
go for complete market research so that there is no wastage of the resources or unnecessary
cost is involved in the business. Furthermore, it might be done through forming strategic
partnerships so that access might be gained through distribution channels or brand. Thus, it
can be said that it is good strategy for the firm when the new product is to be launched in the
target market but even though the major limitation is that it involves the extra cost in operations
of the business and if strategy is not implemented in right manner than there would cause
additional losses to the firm.
Market penetration: It is method where firm uses the existing product in the existing
market. Also, this strategy might be adopted by the firm through decreasing the prices of the
products that is sold by them in the market so that more people might be attracted for the
business (De Bernardi, Bertello and Shams, 2019). Moreover, the firm might also increase
promotion and distribution efforts so that more people are aware of the services or products that
is sold by the firm so that revenues for the business might be increased . Furthermore, the firm
might also acquire the competitor in the same marketplace so that more goodwill is generated
and services are improved. However, using this strategy the firm might lose the brand image and
the missed the best opportunities that are available to the firm in all its future projects.
Market development: This is strategy where any firm enters new market using the
existing products and generally this type of approach is been adopted by the firm when the new
customer segment is to be targeted. Also, this strategy would be best suited when new areas
within the domestic market are been found out so that more sales might be generated in that
regions. Although it is good business strategy but might not work efficiently when it is small
size business as it requires lot of capital investment in expansion process to either to identify
new locations or to expand the current marketing efforts.
Diversification: It is the strategy where the firm enters new market with completely new
product and this is the most riskier and high revenues generating scheme for the business.
Furthermore, firm that uses this type of strategy have two options that are available to them such

as related diversification and unrelated diversification (Ravenda and et.al., 2019). Also, in case
of related diversification potential synergies to be realized between the existing business and
on the other hand unrelated is one where there is no potential synergies
Recommending the most appropriate growth platforms
Based on the above analysis done it can be said that for continuing the operations into
different market and to build the brand image against the competitors it is essential for the
business to identify the appropriate growth platforms so that resources are utilised in best manner
and the productivity is not impacted much. Moreover, for marks and Spencer it can be said that
best suited strategy would be market development strategy where the quoted firm would
enter the new markets that either might be expanded domestically of globally . Furthermore,
through using this type of strategy the firm would be able to improve the quality of the goods
and services so that more people might be attracted for the business (Rudaya, 2019) . Also, this
strategy would help the firm to increase the revenues in systematic manner over the years.
Moreover, through using this type of strategy the Marks and Spencer would be able to support
long term growth of the company that is not possible when other strategies are been used or
implemented within the workplace. Also, primary motive of any firm is to generate large
amount of revenues in the target market and hence using this type of strategy this objective of
the firm would be fulfilled as it would not be able to increase the sales but also enhance the
goodwill among the large numbers of buyers.
As the Marks & Spencer is the multinational retailer in the market selling the clothing,
home products and the food products so it can have the differentiation strategy of the Bowman's
strategic clock. In the differentiation strategy the cited organization used to have focus on the
differentiating the products and services from its competitors by having the high perceived value.
By using this strategic position of the strategy clock which helps them to differentiate their
products from the competitors in the market (Kryvych and Goncharenko, 2020). The goal of this
is to provide the consumers the high level of satisfaction by selling the differentiated products
and services. The quality of the product and the branding used to play the important role in this
position of the strategy. By having the high quality products and the brand awareness will help
the organization to lead with the high prices and the high perceived value. As the customers are
ready to pay the high price so it is the duty of the company to provide the best quality of
products. This will have the target market for the company by providing the high quality of