Marks and Spencer Strategic Management: SWOT, Issues & Innovation

This report provides a strategic analysis of Marks and Spencer, a British multinational retailer, focusing on its strengths, weaknesses, opportunities, and threats (SWOT) based on its geographical location. It identifies issues faced by the organization at national and global levels, using Porter's Five ...Read More

Strategic management

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
TASK 1......................................................................................................................................3
Overview of marks and Spencer............................................................................................3
SWOT analysis of marks and Spencer based on its geographical location...........................3
TASK 2......................................................................................................................................4
Issues faced by organisation in industry at national and global level....................................4
Innovation internal and external environment and its influence............................................6
CONCLUSION..........................................................................................................................7
REFERENCES...........................................................................................................................8
Books and journals.................................................................................................................8

INTRODUCTION
Identification of appropriate strategy is important for organisation and order to meet
its objective as well as perform the function in an appropriate manner. Strategies are
important in order to meet the objectives and perform the functions(Schilling and Shankar,
2019). In context of the current report the chosen organisations marks and spencer which is
the British multinational retailer selling its products and services under the consumer goods
category. The current report consist discussion about marks and spencer where there is
analysis of organisation strength and weakness. Along with this there is also discussion about
issues faced by organisation international environment influence as well as various other
functions.
MAIN BODY
TASK 1
Overview of marks and Spencer
Marks and Spencer is a major British multinational retailer which is headquartered in
London England. Organisation is providing number car number of products which include
selling clothes home products food products under its own label. Organisation is operating
from 1884 where it is founded by Michael marks and Thomas and Spencer. In the current
time it is listed in FTSE 250 indexes where it is performing its function in an appropriate
manner as well as also working under the London stock exchange. Organisation is operating
its function at global level where it has currently 916 stores across UK as well as more than
650 stores which sell food and allied products(Ginter, Duncan and Swayne, 2018).
SWOT analysis of marks and Spencer based on its geographical location
Marks and Spencer performing as function in UK where organisation is operating in
an appropriate manner by providing number of facilities to the individual as well as working
in an appropriate manner.it is identified that geographical location has great impact on
organisation which also improve is functioning within the market. Under this marks and
Spencer is offering appropriate number of services to the customer who generates number of
strength and weaknesses to the organisation. A proper SWOT analysis is conducted below
which shoes the functioning of marks and Spencer according to the current location:
Strength Weakness
 Market experience: Market
experience act as a major strength of
organisation this is because it helped
marks and Spencer in improving its
function under the retail industry.
This is because marksandspencer is
operating from 1884 which is a long
period and help in gaining experience.
 Decline in sales: There is continuous
decline with the sale of marks and
Spencer which are directly related to
clothing industry where the
organisation is working. in context of
this there are a number of functions
which has to be followed and must be
achieved in order to better if function

 International presence: International
presence of organisation is also acting
as strength of marks and Spencer this
is because organisation is operating
with 1463 stores at global level which
are situated across UK, Asia and
Middle East. This is helpful to the
organisation in performing its
function and improving its
international presence within the
market by adjusting its
revenue(Rothaermel, 2016).
and improve its functioning.
 Public perception: Changes in public
perception is also acting as a
weakness of organisation this is
because marksandspencer does not
match the centre for teenager and
younger people because of its old and
very improper fashion sense.
Organisation is also not using an
innovative idea which changed the
perception of different individuals as
well as impact on brand loyalty.
Opportunities Threats
 International expansion: Marks and
Spencer is reaching up biggest area
within the country which providing
organisation appropriate system.
Increasing its geographical reach act
as an opportunity for organisation
where form can also improve its
function under countries such as
Russia India and Indonesia to explore
possibilities in big economy is like
Brazil and Poland.
 Online opportunity: In the current
market, trend of online purchasing is
increasing continuously which can
also followed by marks and Spencer
in order to improve its function and
provide the products and services to
the customer according to it. Design
effective system which helps
company in matching the
performance as well as providing
relevant services to the customer to
match their function under the
clothing and sales of online products.
 Competition: The major threat in
front of marks and Spencer in the
current business environment is
competition. Competition is
impacting negatively on the
organisational performance where it
is getting competition from major
competitors such as Tesco Sainsbury
Morrison and various other who are
performing with better infrastructure
as well as facilities to the customers.
It is identified from the above that marks and Spencer is operating at appropriate level
where organisation is providing effective strategies as well as there are a number of strength
weaknesses opportunities and threats of organisation while performing at the location of UK.
Organisations are also performing its function at global level which impacted in the
profitability as a help the organisation in achieving its objectives(Lasserre, 2017).
TASK 2
Issues faced by organisation in industry at national and global level
There are number of issues which are faced by marks and Spencer while performing
its function at national and global level. These issues have to be address in order to achieve

the objectives as well as match recurrent performance by improving organisational
functioning. This is helpful in achieving better objectives as well as performing the functions
according to the requirements. In order to identify the challenges within the industry where it
is operating it is essential for the organisation to conduct appropriate analysis. Here, the use
of porter's five forces model which is discussed below:
Porter's five force model
Porter's five force model is that model which is developed in order to identify the
competition within the industry as well as factor which impact on the organisation that has to
be maintained in order to achieve the objectives. Under this organisation can improve its
function by using appropriate system and help itself by improving its function according to
the industry where it is trading. An appropriate porter's five force model of marks and
Spencer include number of factors which are elaborated below(Moutinho and Vargas-
Sanchez, 2018).
Competitive rivalry: Under this factor of porter's five forces model there is
discussion about the existing competitive rivalry within the market which can act as a
competitive challenge to the organisation(Hill, 2017). There are number of organisation
which is operating under this industry where the marks and Spencer is working. The major
organisation which is working under the same industry is Tesco, sensory and various others.
Impact on profitability of organisation as provides the competition to the firm. This factor
acts as an issue to the organisation and doesn't act as a competitive advantage.
Threats of substitute: Threat of substitute is also factor and the porter's five force
model which is related to the power of substitute within the market where the organisation is
working. In context of the current business environment, it is identified there are various
factor which are related to the organisational performance and act as a substitute to the
organisational product. It is identified that there is no perfect substitute of the products
offered by marks and Spencer because it use its own logo and packaging of the product.
Factors and competitive advantage to the organisation
Bargaining power of suppliers: Bargaining power of suppliers as a major factor
under this which identifies the industry in an appropriate manner at global level for marks
and Spencer. Under the Spectre it is identified that there are large number of supplier to the
products and services which are sold by marks and Spencer. This is helpful to the
organisation in decreasing the power of supplier because of large number of supplier which
provides benefit to the organisation and terms of bargaining power as well as various other
systems. This is an appropriate function which helps the organisation in achieving the
business objectives and performing the function in an appropriate manner(Trigeorgi and
Reuer, 2017).
Bargaining power of customers: Bargaining power of customer is also factor which
impact on the organisation at directly help the organisation in achieving its objectives. Under
this system, organisation has to achieve its objective working under appropriate manner.
There are a large number of wires to the products and services of marks and Spencer which

helped it in improving its function and managing the function and appropriate manner. This
also reduced the power of suppliers within the industry and impact on the organisational
performance.
Threats of new entrants: This factor under the porter's five force model is related to
the threats of entrants within the market. Threat of new entrant’s direct impact the
profitability of organisation this is because if there are a large number of entrants within the
industry that organisation is to make appropriate plans in accordance reducing their power at
improving the organisational function(Nickols, 2016). On the other side if there is low
number of new entrants that organisation can maintain its profitability as well as work as a
monopoly. It can be identified that marks and Spencer is working in an appropriate manner
because there is low level of new entrant with the industry because of high cost of
investment.
It can be evaluated from the above that there are a number of issues such as high level
of competition within the market in which Tesco’s working which impact the organisational
performance at national at global level.
Innovation internal and external environment and its influence
Innovation is a factor which is directly related to the performance of organisation as
well as help Organisation in order to meet the requirements of the customer in the current
business scenario in context of marks and Spencer, organisation is using appropriate and
innovative approaches which are helpful in developing its function as well as achieving better
results within the market where it is operating. This innovation is directly linked to the
research and development department where organisation more focuses in achieving the
objectives and providing innovative product to the customers.
Internal external environment of organisation is also important in order to formulation
of various strategies and building and innovative strategy so that organisation can achieve
objectives related to Innovation. Identification of internal environment is use of SWOT
analysis which is mentioned in the task first of this report. In order to identify the external
environment where is use of pest analysis which helps in identifying the external factors
which impact on the performance of organisation. Appropriate pest analysis of marks and
Spencer is discussed below:
Political factor: political factors are those which include political instability is within
the market which impact on the performance of organisation. Free trade agreement is major
system which impact on the organisation and lead to improvement in functioning. This is
because due to use of free trade agreement organisation can easily trade in different countries
which help in increasing revenue as well as decreasing the cost(Rosenberg Hansen and Ferlie,
2016).
Economic factor: economic factor include all those factors which are related to the
economic condition of the area where the organisation is working and it has impact on
organisational performance. In context of marks and Spencer, there are various functions
which have to be performed by the organisation in order to achieve its objectives. In context

of economic factor the major factor which impact on the performance of organisation is the
discounting trend within the UK.Due to use of innovative patterns there is various kind of
discounting methods which are adopted by various competitors of organisation which are
impacting on organisational performance and acting as a threat.
Social factor: social factors can be defined as factors which include the current trends
within the market and the society which can impact the performance of organisation. In
relation to the current business organisation, marks and Spencer is operating with high level
of attention on innovation. This is helpful to the organisation and matching the current trends
in the market and performing its function in an appropriate manner. This is helpful to the
organisation matching the current trends and performing in an appropriate manner(Peppard
and Ward, 2016).
Technological factor: technological factors are also impactful for the organisation in
order to meet the current performance. It includes continuous changes with the technology of
environment where the organisation is working. In context of marks and Spencer organisation
is adopting technological changes in an appropriate manner by building effective system as
well as achieving appropriate objectives under this factor. This is helpful to the organisation
improve its current position and matching it according to the needs and requirement.
It is analysed from the current information that is function which are helpful to the
organisation and achieved its objective and performing the function according to the needs
and requirements.
CONCLUSION
It can be concluded from the above-mentioned information that there are various
functions which has to be performed in order to populate an effective business strategy and
achieve results by innovative and appropriate way. This is helpful to the organisation in
matching its performance and becoming appropriate in order to achieve results according to
requirements.

REFERENCES
Books and journals
Schilling, M.A. and Shankar, R., 2019. Strategic management of technological
innovation.McGraw-Hill Education.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health
care organizations. John Wiley & Sons.
Rothaermel, F.T., 2016. Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Lasserre, P., 2017. Global strategic management.Macmillan International Higher Education.
Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts.Cabi.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing
function. Macmillan International Higher Education.
Trigeorgis, L. and Reuer, J.J., 2017. Real options theory in strategic management. Strategic
Management Journal, 38(1), pp.42-63.
Nickols, F., 2016.Strategy, strategic management, strategic planning and strategic
thinking. Management Journal, 1(1), pp.4-7.
Rosenberg Hansen, J. and Ferlie, E., 2016. Applying strategic management theories in public
sector organizations: Developing a Typology. Public Management Review, 18(1),
pp.1-19.
Peppard, J. and Ward, J., 2016. The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.