Strategic Management Report: Strategies for Marks and Spencer

This report provides a comprehensive strategic management analysis of Marks and Spencer, examining its strategies within the context of strategic schools and concepts. It delves into the company's competitive environment by utilizing PESTEL and Porter's Five Forces models to assess external factors and competitive dynamics. Internal analysis tools, including SWOT analysis, are employed to evaluate the company's strengths, weaknesses, opportunities, and threats. The report also explores potential strategies for defending Marks and Spencer's core business and evaluates resource implications. Furthermore, it offers recommendations for strategic implementation, incorporating various models to enhance the company's competitive position and achieve its strategic objectives. The report provides an in-depth look at how M&S can navigate the complexities of the retail market and achieve sustainable growth.

Strategic Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
Discuss the various types of strategies in context to the schools of strategy and strategic
concepts..................................................................................................................................1
TASK 2............................................................................................................................................2
Determine using concepts and relevant models along with investigating competitive drivers
and the effect on the organisational competitive position. ....................................................2
TASK 3............................................................................................................................................5
Different relevant internal analysis tools are used in order to provide appropriate
conclusions.............................................................................................................................5
TASK 4............................................................................................................................................8
Discussion of all the possible strategies that could be followed by company to defend its core
business...................................................................................................................................8
TASK 5..........................................................................................................................................11
Evaluation of the different resource implications and different recommendations that the
company should address and critical investigation and application of various strategic
implementation models........................................................................................................11

INTRODUCTION
Strategic management is a way in which company is developing as well as managing
strategies for gaining competitive advantage over other rival companies (Aguinis, Edwards and
Bradley, 2017). It is mandatory for a company to develop impelling and strong business
objective with the motive of full fill organisational requirement in more advanced and effectie
manner. It will be very helpful in accomplishing organisational goals as well as enhancing
business performance. Company should develop business strategies after completely analysing
internal and external business environment. This will be very helpful in ensuring that company is
developing plans and strategies for managing their operations. Chosen company for this report is
Marks and Spencer. It is one of the dominant company which is providing its high quantity
fashionable products to targeted customers. The company was established in 1884 and founder of
this organisation is Michael Marks and Thomas Spencer. This company is developing different
types of products such as ready to wear cloths, fashionable footwear, accessories and many other
fashionable products. Headquarter of this company is located at London, United Kingdom. This
report focus on various kinds of strategies in context to schools of strategy. In this various
relevant models has been used in order to determine the impact of competitive position of
respective company. In this internal analysis tool has been used as well as strategic choice
models in order to achieve a position at competitive level. This report also consist of resource
implications of selected strategy by using different models.
MAIN BODY
TASK 1
Discuss the various types of strategies in context to the schools of strategy and strategic concepts
Strategy can be describe as a plan of action that is specially desired to acquire specific
goals and objectives of the company. It is mandatory that respective company is building strong
strategies to conduct activities of business in better manner. Strategies play a very crucial role in
company as it affect overall functioning of organisation (Ansoff and et. al., 2018). This will help
in analysing the uncertainty and developing plan which will lead to enhance business
performance as well as increase its profits. Strategies are significant for Marks and Spencer
company as it will help in foresee of future and taking better business decisions which will lead
to deal with challenges in impelling and cost-effective manner which will cause successful
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achievement of desired goals and help all employees to work in correctly manner. Strategies
developed by respective company will be helpful influencing high range of customers towards
business. This will lead to a competitive advantage over other rival companies. Strategies can be
define as a concept through which an organisation analyse its business environment as well as
collecting appropriate data in order develop a useful in order to create a plan that will help in
accomplishing set targets (Baumgartner and Rauter, 2017). There are different types of strategies
used by Marks and Spencer company in order to conduct business operations at effective and
efficient manner. Different strategies in context of respective company is discussed below which
will lead to business development.
Transforming business – It is very useful in transforming enterprise as well as its
operations so that employee is able to perform business activities in better manner. By using this
strategies Marks and Spencer company is able to perform business in appropriate manner. In
transformational strategy respective company is developing skills and capabilities of employees
in order to enhance their overall performance. In order to successful implement these strategies
Marks and Spencer company needs to manage risk so that these strategies can be successful
executed and desired goals could be achieved.
Creating values – Marks and Spencer company is creating values in its business in order
to provide better and effective products to customers. Implementation of such strategies wil lead
to friendly environment for employees. pany is using differentiation strategies with the motive
of providing valuable as well as unique products to customers (Bettis and et. al., 2016). This
leads to increase competing advantages against different rival companies.
TASK 2
Determine using concepts and relevant models along with investigating competitive drivers and
the effect on the organisational competitive position.
It is very necessary for a respective company to perform business functions in more
efficient manner. It is important for respective company to develop necessary strategies so that
they can successful accomplish set goals. For achieving set goals respective organisation needs
to identify as well as assess business environment. Several factors of macro environment which
can have major consequence on business. In order to analyse all key factors of external business
environment respective company needs to evaluate PESTEL analysis.
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PESTEL analysis Political factor – Such factor includes all rule and polices created by government and
political organization in order to influence working style of organisation. Political factor
consist of trade policies, taxation rules, restriction, stability or instability of political party
and many other regulations. There is more stable government in UK which will have
positive impact over business. Economical factor – This factor consist of economic system, exchange rates, financial
part, economical growth rate, interest rate, inflation rate and many more. UK nation has
one of the growing GDP with can be consider as a positive impact over business of
Marks and Spencer (Certo and et. al., 2016). High economic growth will lead to improve
business performance. Social factor – Social factor consist of customers attitude, behaviour, culture, pollution
size, occupation and many more. It will have a direct impact on respective organisation.
High quality products are providing by Marks and Spenser which is helpful in satisfying
need and wants of customers. It has been identified that preference and wants of
consumers are continuously changes which cause a negative effect on Technological factor – UK market area has different advanced and creative technology
which leads to a better performance in business operations. The company is performing
in highly competitive environment and use of advance technology will help in enchaining
performance of business. Marks and Spencer company should take advantage of advance
technology in conducting business operations. Legal factor – Number of legal factors which will have direct or in direct impact over
business. There are different laws and legislation developed by government and it is
essential of respective company to consider all regulations and laws for better functioning
of respective organisation (David and David, 2019). Marks and Spencer is supplying
services and products which does not have any harm to its customers as well as
employees.
 Environmental factor – These are the factors which consists of all those elements which
are related to environment. It includes ecological system, climate, whether, impureness
and many more. It is mandatory for Marks and Spencer company to consider all
guidelines set by government of UK in order to enhance environmental factor. Respective
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company is performing various social activities in order to fulfil their responsibility for
society and environment.
Porters five force model
This is considered as an effective tool which will lead to develop better business
strategies. This will help Marks and Spencer company to understand its competitive position in
industry (Engert, Rauter and Baumgartner, 2016). Porters five force model is developed by
Michael Porter and motive of this models is to identify competitive position of business as well
as development of strategies. This includes five major forces which are mention below. Threat of new entrants – Marks and Spencer is well known company which has
developed its market image by providing high quality products. New entrant in retail
market sector which require more time to develop its image as well as attract customers.
It will have moderate effects on business of Marks and Spencer company. Bargaining power of suppliers – There are various suppliers from where respective
company is buying products. With the increase in number of suppliers it will directly
reduces their impact on business. Marks and Spencer company will not be affected by
the negotiation power of service providers and it will have low impact over enterprise. Bargaining power of Buyers – Buyers are very important for Marks and Spencer
company and this organisation is developing various strategies for attracting a range of
customers towards business. When larger number of buyer are bargaining from company
then it will have high impact on business. Customers will have high bargaining power
and will effect on performance of given business. Threat from substitute product – There are various product developed by different
companies which can substitute the products of Marks and Spencer company. It will have
a major effect on business as well as its overall performance (Flotemersch. and et. al.,
2016). This increase the chances of customers to purchase any products which can
substitute the product and services offered by respective company. Threat from
substitute product force will have high impact on business.
 Rivalry -Respective company tackle a high competitive environment. and there are many
strong companies which is dealing in fashionable retail sector. This is mandatory for
respective organisation to build strong business plans in order to gain a competitive
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advantage over other companies. Threat from rivalry will effect the performance of the
company.
As per the above analysis of business environment as well as porters fiver forces
respective company will be able to identify and measure various factors which will have negative
and positive impact over business (Fynn and et. al., 2016). By understanding porter five force
model respective company can identify its position in market environment. This company should
use new and innovative techniques or technologies in business procedures in order to attract
more customer as well as towards business.
TASK 3
Different relevant internal analysis tools are used in order to provide appropriate conclusions.
Company should analyse as well as measure all micro factor which will have impact
over business this is very important for company. Marks and Spencer company is dealing in
extremely competitive situation and it is essential to this organization to examine its internal
factors. This will be very helpful in developing better strategies. There are various internal
strength and weakness which is affecting the overall performance of respective company. There
are different type of opportunities available to Marks and Spencer company to that will lead to
enhance its market share. It is essential that company identify and analyse it various threats so
that they can develop better strategies and reduce its negative impact.
Mission statement of Marks and Spencer company
Mission of respective company is to develop and offered inspiration attribute of good to
customers. This will help in full filling their requirement and meeting with their needs or wants.
Vision statement of Marks and Spencer company
Its vision statement includes that this company wants to create and develop products and
services which lead to building standards for fashionable retail industry (Ginter, Duncan and
Swayne, 2018). This organization is creating good which matches with demand and requirement
of customers and supply advanced choice valuable commodity to customers.
SWOT analysis
It is a effective tool for study and evaluating the inside enterprise situation. This is
important for for respective organization to carefully examine its strengths, weakness,
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opportunities as well as threat in order to successful accomplish set goals. SWOT analysis is
mention below in detail. Strengths- Respective company is one of the top organization that is transaction its
products in fashionable retail sector. This organization is developing commodity and
services which is as per necessarily and requirement of targeted customers (Hitt and
Duane, 2017). Its employees are considered as its major strengths as they are working in
effectual and cost-effective way to accomplish desired goals. It has wide variety of
product line which meet with the demand of its customers. Weaknesses- This company is not able to manage its financial resources is effective
manner in order to execute enterprise activities. This is necessary for respective
organization to efficaciously succeed its all financial resources so that they can achieve
desired objectives. Marks and Spencer company is not able to use new and innovative
technology which is affecting its overall productivity and performance. Opportunities- There are different possibility available in market place area that will lead
to enhance its business activities as well as its share in market area. This company should
develop its good as per demand and wants of consumer. It should utilization fresh and
progress technology in its enterprise operations (Koseoglu, 2016). This will lead enhance
its business productivity as well as profitability. Marks and Spencer organization will be
able to increase larger industry share by developing effective business strategies.
 Threat- There are some major threat for this organization which is from its rival
companies. Marks and Spencer company is dealing highly competitive environment
which will have major impact over business. It has threat from its rival or competitors
business as any change in their strategies or decision can have negative impact over
business.
VRIO Analysis
VRIO analysis is an effectual framework that will help Marks and Spencer company to
analyse and evaluating internal resource of company in effective manner. This is very helpful for
an organisation to clearly differentiate its internal capabilities into valuable, rare, imitable as well
as organized categories. VRIO analysis model in respect of Marks and Spencer company is
mention below in detail.
Resources Valuable Rare Imitable Organized
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Design and
quality
Yes - - -
Supply Chain
networks
Yes Yes - -
Skilled
Employees
Yes Yes Yes -
Financial
resources
Yes Yes Yes Yes
 Design and quality – Marks and Spencer organization is developing advanced superior
commodity which is according to the demand and wants of consumer. Design and quality
of its products are very unique and respective company is able to offer valuable products
to company. This is helpful in offering products as per the value of their money. Supply chain network – Supply chain is one of the crucial part of business as Marks and
Spencer organization is contribution its commodity to various parts of the word.
Respective company has very strong supply chain network which lead to distribution of
products within right time (Lasserre, 2017). This company has rare network of supply
chain which is helpful as well as valuable in offering its products to target customers. Skilled employees – Marks and Spencer company has skilled and talented work forces
which is helpful in management enterprise operation in effectual and cost-efficient way.
This company has valuable employees with required skills and capabilities. Its employees
can be imitated by other rival company as there are chances that employees switch their
job. Financial resources – This company has appropriate and accurate financial resources
that is useful in management of enterprise dealings in effectual and cost-efficient manner.
Its financial resources are valuable to business and its is organized in correct manner
(Meyer, Neck and Meeks, 2017). This is will aid in using fresh and advance application
in its enterprise operations.
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TASK 4
Discussion of all the possible strategies that could be followed by company to defend its core
business
For defending, core enterprise of organisation, this is very vital for them to comply
innovative techniques as well as strategies in order to attain objectives of company in efficacious
manner (Morden, 2017). In present economy, there are high competition level among company
so that whole organisation tried to has efficacious as well as attractive strategies through which
they may influence huge number of individuals and also competent to develop potential clients in
appropriate manner. There are several potential strategies that is obeyed through Marks and
Spencer, that are described below:
Ansoff Matrix:
It is very vital model for making strategic marketing plan where this can be utilised for
seeking at various opportunities in order to develop efficacious revenue for entities by
developing new products or services within new marketplace. Few times, this is also called
product market matrix. With the assistance of this model, company can concentrate upon its
whole business development as well as able to evaluate opportunities for organisation to enhance
its sales through having alternatives integration for new market such as consumer segmentation
and geographical areas. There are some steps that briefly describe about that model and assist
Marks and Spencer to know about the market circumstances which are explained below:
 Market penetration: This is regarded as the kinds of effectively selling products or
service into particular market. On another hand, this may be measured through whole
sales volume amount of existence products as compared to overall targeted market for
that goods (Moutinho and Vargas-Sanchez, 2018). In respect of Marks & Spencer, for
effectual development they select this strategy through which it may execute one new
things as well as competent for selling their products within existent market. Through
having this kinds of strategy, it can able to acquire higher value of market share without
facing any type of problems at market area.
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 Market Development: This is defined as growth strategy in which business develop and
identifies new market segment with their same existing product. It focuses mainly on
introduction of new market with existing product. While adopting such strategy by Marks
and Spencer, it has to analyse new market, their customers, geographic, segments and
regions in an effective and efficient manner. In this strategy, respective organisation can
enter into foreign as well as domestic market. Marks and Spencer can adopt market
development strategy by entering into fresh marketplace that is Tajikistan with same
existent commodity and services. This plan of action helps in enhancement of profits and
gains of business in an effective and efficient manner.
 Product and development: As per this strategy, they firm can able to formulate as well
as develop various products with unique features which usually facilitates more as well as
extra benefits to clients at market places (Percy, 2016). In respect of Marks and Spencer,
they can utilise this particular strategy so that it can able to change procedures of existing
goods and their representation with developing new products which satisfy the new
clients. Thus, it is considered to be the effective manner to access marketing niche as well
as present circumstance of market.
 Diversification: Respective strategy is one of the most important for an organisation that
provides growth opportunities to them. By using it organisation can enlarge their business
and related projects after conducting the research and development in correct way. In
context of M&S they by expand in other markets that possess large and vast opportunities
in order to gain potential outcomes in positive manner so that competitive advantage
should be gained.
From the above model, the Marks and Spencer has to utilised the product diversification
with the assistance of this they become competent to explore their business at market area.
Moreover, they also develop new products and influence individuals in positive way and also
defend their core business.
Porter's generic strategy:
Respective model for gaining competitive advantage which based on firm's position with
the industry that helps to identify or evaluate the strategies and tactics for gaining sustainability
in marketplace (Rothaermel, 2017). In context of M&S they uses different types of plan of action
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and tactics in order to increase enterprise possibility in optimistic way and it is mention below in
detail.
Cost leadership:
It is that is one of the way to gain competitive advantage by developing the edge get the
sales at hike and away from the competitors. In context of M&S there are different sources in
front of them to reducing cost that helps in gaining competitive edge. They are expertise in their
field as they use one of most highly advance and updated tools and techniques in order to
increase economies of scale and proprietary technology that enables to become low cost
producer in marketplace for gaining competitive edge.
Differentiation:
Respective strategies or scheme includes the making of commodity or service that are
various or more charismatic than the rival product. In context of M&S they by conducting
research and development for brining uniqueness in their products with the motive of deliver
high attribute good and services to their ultimate consumer base in positive manner.
Focus strategy:
Companies by using focus strategy which which focus on the specific niche market place
after perceptive the dynamics of market and by understanding new and unique needs and wants
of consumers in positive manner (Zhao and et. al., 2017). In context of M&S with the broad
marketing strategies they only focus on the market that prefers to purchase product that are
unique and rare in nature in order to comply with the changes in positive manner for building
effective kind of relationship with consumers in positive manner.
From the above model it has been summarised that for an organisation it is very much
crucial to evaluate the market conditions and accordingly apply it into marketplace. In context of
M&S they use Differentiation strategy to create distinctive effect in their products and services
in order to survive for long time in market.
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TASK 5
Evaluation of the different resource implications and different recommendations that the
company should address and critical investigation and application of various strategic
implementation models.
It is essential for organization to evaluate and analyse its enterprise environment in order
to develop better business strategies. Marks and Spencer company has various valuable products
which needs to be identified in correct and accurate manner (Michael, Storey and Thomas,
2017). This will be very helpful in development of better and effective strategies as well as help
company to perform business task in effective manner. Respective company major strengths are
its employees and it should effective manage its employees as well as satisfy their needs and
requirement. This will have direct impact over development business operations and help in
enhancing business performance. Marks and Spencer company has strong financial resources
which will lead to have positive impact over improvement in business performance as well as
achievement of organisational objectives.
On the basis of above evaluation of business environment as well as industry analysis,
there are some recommendations provided for respective company in order to enhance its
business. Recommendation are mention below in detail.
 It is very important for Marks and Spencer company to follow all rules and regulation in
order to perform business activities in better manner. It will lead to conduct business
operation in smoothly manner in order to achieve desired goals.
 This company should provide timely training to its employees in order to enhance
performance of respective company. Training will help in improving skills and
capabilities in order to perform task and activities in correct manner. Training is crucial
part of company and this will help in improving productivity as well as profitability of
organisation.
 Marks and Spencer company should use new and innovative technology in order to
conduct its business operations. This company should take advantage of technology in its
business activities as this will help in performing business operations in effective and
efficient manner.
 This company should develop both long term and short term strategies for the
development of business. It is very important that company is creating strategies which
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will have positive impact over business. Strategies play a crucial role in overall growth
and development of business as well as accomplishment of desired goals.
 It is essential that respective company is analysing as well as evaluating internal and
external business environment. This will help in identifying different factors on the bases
positive as well as negative factor. This company should try to maximize positive impact
of business environment as well as reduce its negative impact in order to perform
business activities in effective manner.
 This company should effectively manage its financial resources as well as use it in
correct manner. This will help developing better strategies as well as manage its financial
resources in effective manner. This company should set appropriate budgets for different
functions of organisation so that they can perform business activities in effective manner.
 Marks and Spencer company should use traditional as well as modern ways of promotion
and marketing. This will help in attracting more and more customers towards business as
well as enhancing sales and profitability. Traditional methods of marketing that could be
used by respective company are T.V. advertisements, new paper advertisements and
many more. This company should also use digital and social media methods also in order
to attract as well as influence more customers in order to increase profitability.
CONCLUSION
From the above report it can be concluded that strategic management is one of the crucial
part of organisation. It is very important for company to develop effective and efficient business
strategies in order to attract more customers. For develop strong and effective business strategies,
company needs to analyse as well as evaluate business environment. There are various factor of
micro and macro business environment which will have positive as well as negative impact over
business. By analysing internal capabilities as well as external opportunities company will be
able to develop better and strong business strategies.
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