Business Strategy Report: K/508/0574 - Business Strategy Analysis

This report provides a comprehensive analysis of the business strategy employed by Marks & Spencer (M&S), a UK-based retailer. The introduction sets the stage by defining business strategy and highlighting M&S's operations. Task 1 critically analyzes the macro-environment, including vision, mission, objectives, and strategic planning techniques like benchmarking and business analysis. It also includes a stakeholder analysis and a PESTLE analysis to understand the external business environment. Ansoff's Matrix is implemented to identify growth strategies. Task 2 evaluates M&S's internal environment and organizational capabilities using SWOT analysis and the Resource-Based View strategy. The McKinsey 7-S model is also utilized to assess organizational design. Task 3 implements Porter’s five force model to evaluate competitive forces in the market sector. Task 4 implements different models, concepts, and theories for strategic planning. The report concludes with a summary of findings and provides references.

Business Strategy

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Critical analyse of macro environment to determine and understand strategic management
decisions.................................................................................................................................3
TASK 2............................................................................................................................................7
P2 Evaluation of organisational capabilities and internal environment of organisation through
utilising appropriate framework.............................................................................................7
TASK 3............................................................................................................................................9
P3 Implement of Porter’s five force model for evaluate competitive force in market sector of
organisation............................................................................................................................9
TASK 4..........................................................................................................................................10
P4 Implement of different models, concept and theories for interpret of strategic planning10
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15

INTRODUCTION
Business strategy is explained as an effective course of action that aids an entrepreneur
for accomplishing specific set of business goals and objectives through designing a set of
decisions. Business strategy refers to the plan that leads management to obtain top position in
market by formulating an effective plan which undertakes all essential aspects either such as
business environment either it is internal or external. This report is written from perspective of
Marks & Spencer which is a UK based retailer and manufacture of clothes, home products and
food items. It was founded in the year, 1884 in the Leeds, UK and currently the headquarters of
organisation is situated in London (Yuliansyah, Rammal and Rose, 2016). Moreover, report
highlights on impact and influence of macro environment on business and its strategies. Micro
environment will also be included in this report. In the last, report also focused on different
models, theories and concept for devise strategic planning of organisation.
TASK 1
P1 Critical analyse of macro environment to determine and understand strategic management
decisions
Vision- The main vision of organisation is to become global leader of retail and clothes
industry by developing strategy as per international level.
Mission- Mission of company is to capture overall market of Europe by providing good
quality of products. So it is easy to enter into global market by enhancing company goodwill
through capturing large local customer base.
Objectives- In context of M&S, the main objective of organisation is to attain large market
share in clothing as well as food sector by amending company strategy according to existing
environment conditions.
Strategy is defined as an effective action that is undertaken by manager, supervisor and other
top authorities of business (Yuliansyah, Gurd and Mohamed, 2017). So all efforts of workforce
and its employees are directed towards accomplishment of organisation in managing work as per
areas that leads in making advantage over rivals that in terms of sales and revenues.

Achievement of more sales and profits that makes goals and objectives that making different
strategy that concerned company for allowing strategic direction.
Different techniques of strategic planning
 Benchmarking- It is also defined as comparing and it is also defined as a metrics that
makes a competitor and entire industry under which organisation is operating. By this,
Marks & Spencer also acknowledge its market position through compare company
performance with market leaders.
 Business analysis- With analysis of all business and there operational as well as
functional that makes its activities in an appropriate way. Marks & Spencer also
acknowledge company strength and weakness that makes strategic decisions for attaining
expected outcomes.
Framework to understand macro environment
Stakeholder analysis
The term stakeholder analysis refers to a procedure that is used in identifying individuals
that can impact on organisation for performance of organisation to initiate company project
(Yoffie and Cusumano, 2015). This also analysis the benefits of M&S in grouping stakeholders
as per interest, level of participation to understand project in proper manner.
Step 1- To determine all stakeholders through recording there work on a list or computer
programme that make management to analyse potential stakeholders for company. Sales
department, executive staff, suppliers etc. for formulate of effective strategy.
Step 2- With list of all important stakeholders, organisation also manage them in right
manner to work in an organised manner such as interest, level of participation and influence of
individuals. It is divided into four parts that are mention as follow:
 High power, high interest- Stakeholders are directly related with strategy of Marks &
Spencer and influence business activity of organisation to perform all functions in an
organised manner by utilising their power and interest.
 High power, low interest- These stakeholders influence working of organisation but not
show more interest in company activities and actions.
 Low power, low interest- In context of these stakeholders, organisations are required to
generate information so projects of M&S not generates problem for company.

 Low power, low interest- This stakeholders are less interested in company activities and
also low in power to generate impact on organisational working.
Step 3- According to this step, manager of Marks & Spencer must communicate with all
stakeholders according to organisational priority (Scholes, 2015). So support from all
stakeholders in gained that leads to implement new strategy without barrier or issue.
PESTLE Analysis
The term PESTLE work as an effective strategic tool that is used by organisation for
acknowledging and understanding external business environment and market in a proper manner.
PESTLE analysis from perspective of M&S is mention as below:
 Political factor- This factor is concerned with tariff rates, regulation and taking decision
such as Brexit which all are taken by ruling government of a country. In context of
UK, the political conditions are stable but the step taken to implement Brexit generates
few issues because it is taken by understating and asking favour from all individuals. It
results UK local business, like Marks & Spencer are not impacted. But management
must develop strategy as per new policy to generate positive influence about
organisation strategy in internal department.
 Economical factor- This factor undertakes growth rate, interest rate, spending power of
individuals. From perspective of UK, consumers are earning high rate of income but
after Brexit decisions income segment of all individuals is impacted. So the monetary
and financial policy of M&S is impacted. Moreover, inflation rate at time of recession
period of 2018, economic condition of company is impacted negatively.
 Social factor- There are various social aspect concerned as per attitude, belief and
opinion that are living in place of UK. Individuals of UK society are open-minded so
people prefer to utilise modern and advanced products (Peng, 2017). It generates a
positive impact for M&S which leads organisation to earn more revenue.
 Technological factor- Technology is changing all business operations with rapid speed
and most of individuals are performing their work with use of internet activities. So
M&S must update its technology system for completion of task as per requirements
that generate interest of customers to maintain all products of organisation.
 Legal factor- According to this macro factor all legal rules, regulations and norms of
UK government are used for securing welfare of society and also ensuring the interest

of organisational stakeholders. So the manager of organisation must follow legal
procedure so that M&S not pay high penalties due to law disobedience.
 Environmental factor- This factor is related with protection of ecology and
environment of organisation from various hazardous activities related to business firm.
Marks & Spencer follow all rules relate with environment policy that provides benefits
to organisation to operate business such as increase in organisational goodwill.
Ansoff’s Matrix
With implement of Ansoff matrix in an organisation it is used by management to utilise
respective model as a strategic tool of planning (Noe and et. al., 2017). This results potential and
existing strategy for business is formulated. Within context of M&S, framework of organisation
is mention as below:
 Product development- According to the product development strategy new product is
introduced by M&S and it is production is increases that is used to sale goods in large
numbers. So manufacture of M&S products is increased that reduces operational cost of
organisation.
 Market development- According to the market development strategy all existing products
of business are offered in company to gain right market area. This results customer base
of M&S is increased and it provides more benefits to organisation to increases sale and
profits by influencing more individuals to buy company product.
 Market penetration- With this strategy, an organisation is focused to increase its market
share with making assistance of company products in existing service areas. This results
market share for organisation is increased that also enhance revenue for business by
adding new customers or buyers of company products.
 Diversification- One of the most complex and risky strategy is recognises as diversify
strategy. This result more products are offered by organisation into new market. So there
is high probability that company fails to manage its market share or profits.
With the analysis of above strategy it is identified that M&S go with market penetration strategy
and according to this strategy products are offered with discount and other offers to increase
customer base (Nagy and et. al., 2018). The existing strategy and business of M&S is impacted at
a local level due to decisions of Brexit. So management first overcome from issue of local

market through introducing market penetration strategy that increases customers base for
organisation.
TASK 2
P2 Evaluation of organisational capabilities and internal environment of organisation through
utilising appropriate framework
Internal environment of organisation works as an important aspect that leads management to
complete work with new strategy (Maté, Trujillo and Mylopoulos, 2012). In order to perform
work with new strategy management consider for perform task as per new strategy. SWOT is
previously used by M&S to work in proper manner through new areas. The company also
provides some new strategy to manage work with new internal strategy.
SWOT framework
SWOT analysis works as an effective tool that helps M&S to acknowledge company
strength and its weakness in a detailed manner in order to implement required modifications.
Along with this threats and opportunities of business is also undertaken for complete of work as
per organisational strategy.
Strength
 Brand recognisance of M&S is high
and due to its high end quality
products. It works as a major strength
for organisation.
 The product line of organisation is wide
and the range of company products also
large. So multiple option offering work
as a organisational strength.
Weakness
 The population of UK and outer-region
believe M&S work as a non-trendy
store that provides option to work in
clothing work.
 Company use traditional methods to
manufacture its goods. It increases cost
of organisation which work as a
positive point for rival organisation.
Opportunities
 Organisation is able to expand its
presence into other countries that are at
developing stage in order to increase
customer base.
 Company is investing better amount in
Threats
 With the change in political
environment global business operations
act a hindrance in effectiveness of
organisation.
 Competitive firms such as Zara and

marketing of organisational products.
So more individuals are aware about
company existing and new products.
many more are giving tough
competition. Its works as a big threat
for company.
Resource based view strategy
With the understanding of respective strategy organisational work to formulate a
framework that is used by business to make better strategic resources. This is also used by
organisation to make exploit areas as per achievement of sustainability and competitive
advantage. In context of Marks & Spencer strategy, there are two different resources are used
that is tangible and intangible (Marx, 2015). This also consider in work according to decided
strategy with new laws and legislations.
McKinsey’s 7 Model
McKinsey’s framework work as a tool that helps to analyse organisational design for a
firm through identifying seven internal components it is also used by management to align all
task in effective and proper manner. Some of the components from point of Marks & Spencer are
mention below:
 Strategy- This work as a plan that formulates by organisation for attain competitive
advantage so work is completed in proper manner as per rival organisation. If Marks &
Spencer management generate robust strategy for complete of work properly to enhance
organisational sales.
 Structure- The term structure refers to manage all business elements as well as its
divisions in an organised manner. Moreover, inappropriate shape impact on effectiveness
of organisation which work as a weak point for management of M&S.
 System- With implement of right and transparent system for each activity organisation is
able to complete each activity in a systematic manner. It also lead management to obtain
desired goals and objective.
 Skills- Potential and capable employees are able to perform all task and objectives in
right manner. Example- by matching the job role according to employees skill all work is
completed as per decided strategy.

 Style- It demonstrate the way or method through which an organisation control and
manage the work of engaged employees. Participative style is adopted by leaders and
manager to motivate workforce for employing more efforts in organisation.
 Staff- Diverse and inclusive workforce in operations and functions of M&S so it is
essential to develop better collaboration among all employees for developing individuals
as an effective team or group.
 Shared value- All value, behaviour and culture that is followed by Marks & Spencer is
included among sharing value aspect that enhance morale of all employees to work in an
appropriate manner.
With the analyses of organisational work and internal capabilities it is used by management in
making better results for enhancing strength of company. Example- Goodwill of organisation
work as a major strength which improves brand value of products at global level. So SWOT
analysis and McKinsey model must include this as a brand feature. Along with this it is also
analyse by management that there are various task are performed by Marks & Spencer (Klettner,
Clarke and Boersma, 2014). Moreover, it also helps to overcome from threats that generate
problems for organisation to work within systematic manner.
TASK 3
P3 Implement of Porter’s five force model for evaluate competitive force in market sector of
organisation
Porter’s five forces is defined as a strategic framework that assist an organisation for taking
strategic decisions that improves organisational image in future. M&S implement Porter five
forces to analyse competitive force which are mention as follow:
 Threat of new entrants- The force related with new entrants is low in market because
management invest huge amount of money. So it is not possible for new organisation to
invest high amount among all sectors that creates challenges in managing work of
company. Along with M&S manage and control various manufacturing units in a
collaborative manner and it is learned by management through experiencing various
years so power of new entrants is low and not impact on organisation operations and
functions (Hoejmose, Brammer and Millington, 2013).

 Bargaining power of supplier- Small as well as large organisation both are dealing in
retail organisation, food and clothes. So it provides various options to seller to offer
products and services to numerous manufactures. It results bargaining power of supplier
is high due to which market position of M&S is impacted. Moreover, the evaluation of
competitive force define that supplier are in more power to sale it products because high
number of buyers exists in market.
 Bargaining power of buyers- From the perspective of bargaining power of buyers, it is
too high that generates challenge for managing business in retail sector. This refers
bargaining power of customers is high because various options are present in market to
buy company products which create challenge for organisation. Further, it is universal
that customers are more in power among all industries and companies due to
globalisation aspect in all industries.
 Threat of substitutes- It is possible for organisation to make substitution as per analyse of
areas that make substitution of products (González-Rodrígue and et. al., 2018). This also
offers products that provides areas for managing customers as per analyse of managing
work to manage better offerings. Moreover, the power of substitute is moderate but it not
impact on position of M&S because management provides high quality goods. M&S is a
British retail organisation so the power of organisation is more in market by formulating
loyal customer base.
 Rivalry among existing competitors- There are various retail organisation operate their
business in UK and it also provides good quality of products. The threat from competitor
firm is high from perspective of retail industry. It is because organisations are competing
with each other in each sector.
TASK 4
P4 Implement of different models, concept and theories for interpret of strategic planning
Porter’s generic strategy
Generic strategy of Porter provides various benefits to identify various ways that attain
competitive advantage in market. Moreover, different strategies as per analyse of market are
mention as below:

 Cost leadership- With the implement of cost leadership strategy, it is easy for
organisation to target price sensitive customers. Along with this, Marks & Spencer also
offer various products for managing business with low price. By offering organisation
products at discount to loyal customer base management is able to generate better
offerings to all customers.
 Differentiation- According to differentiation strategy, an organisation is able to generate
new and innovative products (Chu, KrishnaKumar and Khosla, 2014). These results it is
easy for management to differentiate organisation offerings in same sector. M&S also
offer new and innovative products to all of its customers so sale of products is increased.
 Focus- In focus strategy, cost and differentiation strategy both are included. According to
cost focus strategy, M&S is able to formulate its products at low price so more number of
individual buy organisational products. Similarly, according to differentiation strategy
management is able to provide innovative and modern products for offering additional
value in company products.
Bowman's strategic clock
Bowman strategic clock refers to a effective model which facilitates a commercial
enterprise agency in exploring appropriate strategic positioning Example- the manner through
which M&S can role their merchandise in order that excessive benefit over rival corporations
may be completed in a right way. Aspects related with this framework are noted below:
 Low price & low value- It is a low aggressive function for M&S because products aren't
differentiated so they are offered at less price to customers.
 Low price: With aspect of low price, M&S can position itself as a leader in marketplace
through the usage of value minimisation method. Here, earnings for every product may
be low however due to excessive sale extent, typical income can be greater.
 Hybrid- In the context of Marks & Spencer hybrid strategy is formulated by focusing on
low price aspect and product differentiation in order to attract more customers.
 Differentiation- With the innovation aspect M&S adopt differentiation aspect for
satisfying employee needs and wants. Moreover, innovation aspects help management to
design products according to customer requirements and market trends.

 Focused differentiation- Most of the global organisation which are high in brand value
implements focused differentiation strategy. This result goodwill of M&S also support
management to decide right and high price of products.
 Risk and moderate margins- According to risk aspect and strategy, business enterprise
face high challenge such as ineffective structure, less effective leadership and
management due to goals and objectives of M&S are not achieved (Chen and et. al.,
2018).
 Monopoly pricing: In a monopoly market, one of the simplest methods for enterprise is
to provide products easily among all market. In this method, a business isn't involved
approximately the fee or innovative capabilities.
 Loss of market area: This function is one of the major challenge to overcome in an
intense competitive market. In this, a corporation must develop a set of fashionable price
of middle range or price for each product that attract more customers. Due to which,
market shares earned through business enterprise are much less.
From circumstance of Marks & Spencer, there are two different models for strategic direction is
espoused by organisation. The first strategy relates with differentiation strategy in which
innovative and new products is offered to customers to attain high profits and revenue. With help
of this strategy, innovative products are offered that generates interest of customers in company
products.
Strategic management plan including strategic objective and priority
Strategic planning helps an organisation for identifying its set of activities, focus,
resources etc. for enhancing company objectives that leads to accomplish a common goal. The
strategic plan in context of M&S is mention as follow:
Vision- To work as an effective retail, food and clothes organisation management of Marks &
Spencer focus to gain better areas.
Mission- For control of employees and manage company business at global level for perform
operations and functions at international level.
Objectives- The objective of Marks & Spencer is to enhance customer base with 15% to increase
company sale in a time period of three months (Buckley and Ghauri, 2015).
Tactics- It refers to short term efforts that are made by organisation to accomplish organisational
objectives. From perspective of customers it is analysed to work as per selling directly