Strategic Planning Report: Analysis of M&S Business Strategies

This report provides a comprehensive analysis of strategic planning, focusing on Marks & Spencer (M&S). It begins by explaining the relationships between organizational vision, mission, strategy, and business plans, illustrating these concepts with examples from M&S. The report then examines the impact of the external environment on M&S, including political, economic, social, and technological factors, specifically within the context of Singapore. It also evaluates the influence of stakeholders' expectations on the organization's strategies. The report further discusses the importance of reviewing organizational strategies and business plans, highlighting tools like SWOT and Porter's Five Forces analysis for M&S. It explores strategy options for a smaller organization and criteria for reviewing potential strategies. Finally, the report covers the structure of a plan needed to deliver the strategy, stakeholder involvement, and dissemination processes to ensure information and commitment, concluding with a summary of key findings and recommendations for M&S's strategic planning.

STRATEGIC
PLANNING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Explanation and Relationships between organisational vision, mission, strategy and business
plans............................................................................................................................................1
Affect of external environment on organisation and its strategies..............................................2
Evaluation of influence of stakeholders' expectations on organisation......................................3
TASK 2............................................................................................................................................4
Importance of review in developing organisational strategies and business plans.....................4
Evaluation of tools used to review organisational strategies and business plans.......................5
TASK 3............................................................................................................................................7
Strategy options for organisation using modelling tools.............................................................7
Criteria for reviewing potential strategy options........................................................................8
TASK 4............................................................................................................................................9
Structure of a plan needed to deliver the strategy.......................................................................9
Stakeholder involvement in formulation of plan......................................................................10
Dissemination Process to ensure information and commitment of stakeholders......................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic Planning refers to a management activity which is adopted by an organisation to
set priorities, focus resources and energy, improve operations, etc., that helps them in gaining a
better and competitive edge within the market (Bryson, 2018)(Smith, 2017). The report below is
based on Marks & Spencer, which is one of the most recognised organisations in the UK. This
assignment focuses on a detailed explanation of vision, mission strategy and business plans and
relationships between them, along with impact of external organisation and stakeholder
expectation on organisation and its strategy. Moreover, it also deals with importance of review in
development of organisational strategies and evaluation of tools which could be used to review
the same. Additionally, it covers strategy options for a smaller organisation and criteria for
reviewing potential strategy options.
TASK 1
Explanation and Relationships between organisational vision, mission, strategy and business
plans
It is very important for an organisation to determine their vision, mission, strategy as
well as business plans which provides the company with an effective pathway to attain its
ultimate business objectives. Below is the explanation of these elements as well as their
relationships with one another. Organisational Vision: This refers to the ultimate position which the company wants to
attain in future. It means the end goal which the company wishes to achieve. For
example, the vision of M&S is to appropriately provide a standard within the market
against which the other organisation could be measured, and is inclusive of care for
customers, environment, community as well as employees (Cassidy, 2016). Organisational Mission: It means the purpose of existence of an organisation. It helps in
establishment of a framework for the organisation in order to attain the objective within
the company. M&S wishes to provide effective quality accessible to everyone by a wide
range of its products. Strategies: These are all the actions and processes which are adopted as well as
implemented within an organisation in order to achieve its business goals effectively. The
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current strategy of M&S is to adapt with change within the market and to shifts its
channels frequently, renew its stores as well as enhance its offline and online operations. Business Plan: It is a detailed and well established planning of how the firm would be
operating in order to achieve its short and long term goals. M&S plans to bring in
appropriate transformation in its clothing line, as well as its marketing strategies in order
to enhance its sales and profit margins (Bryson, 2015).
Relationships between Organisational Vision, Mission, Strategies and Business Plans
There is quite an effective relationship between these elements in context of M&S. For
instance, vision of the company plays a crucial role in influencing mission adopted by the
organisation. It lies a founding stone as to what direction the firm would be taking. In context
with the strategies and business plans, the former is formulated in context with the latter. All the
strategies adopted by the company are directly related to the business plans formulated to attain
the vision. Thus, all these elements are interlinked and each of these elements are formulated to
satisfy one another and to ultimately take the company forward.
Affect of external environment on organisation and its strategies
External environment refers to the amalgamation of several factors that are outside a
business' inner circle. There are certain pointers which impact a company as well as its strategies.
Some of these factors are mentioned below: Political Factors: Such factors undertake the political scenario prevailing in the country
and its influence on organisations. These include policies and regulations which are
essential for companies to follow in order to ensure government support. As far as M&S
is concerned, within Singapore, the political risk is very low and businesses within the
nation enjoys political stability. Thus, this would have a favourable impact on its
strategies (Kerzner, 2019). For instance, the firm plans to renew the stores, which could
be supported by the government due to stable policies.
 Economical Factors: These factors reflect the economic performance of a nation. The
per capita income of Singapore is highest in ASEAN. In addition, its GDP is highly
progressing each year, which is mentioned in the graph below:
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Illustration 1: Singapore GDP per capita
(Source: Singapore GDP per capita, 2019)
Moreover, there is positively competitive market in the country which again, works in the
favour of M&S. Such progressing conditions would allow the firm to investing more effectively
in new equipments and R&D in order to transform its clothing line as per the progressing market. Social Factors: These factors undertake the social trends prevailing within the country.
The clothing trends within the country are quite influenced by the western markets.
However, there is an inclination of social masses towards their regional and cultural
outfits (Wolf and Floyd, 2017). Thus, it is quite advantageous for the marketing strategy
of the company as the firm could modify the same which suits and promotes the cultural
practice of Singapore.
 Technological Factors: This element undertakes the technological advancements within
a country. Singapore is one of most inclined countries in the world in terms of adoption
of latest technologies. Moreover, in context with M&S, it could use technologies like
Artificial Intelligence as well as Automation within its systems that would enable the
company in enhancing its offline, along with its online operations appropriately.
Evaluation of influence of stakeholders' expectations on organisation
Stakeholders refer to the individuals who are associated with a company and are
impacted by each and every decision which organisations take. There are several stakeholders
within M&S who have a major influence on an organisation and strategies adopted by it. Some
of the key stakeholders associated with an organisation are mentioned below:
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 Employees: These refer to individuals who work within an organisation and makes it
capable to achieve its business objectives. They expect a healthy and effective
environment within the company which contributes to their personal growth as well
(Channon and Jalland, 2016). Thus, they influence the organisation in improving its
structure in a way which suits these employees an ensures their long term engagement
and loyalty with the firm. Customers: These individuals are the reason for survival of the company and are people
which buy the organisation's offerings. Customers of M&S expects them to offer
diversified products with high quality and affordable pricing. This expectation influences
the firm in indulging into appropriate and necessary market research and produce their
products as per the choice of customers.
 Shareholders: These individuals invest their financial assets in the company and are the
major influence on the firm's strategies and operations. As for M&S, they are required to
draft strategies and tactics which provides them maximum profitability, in order to
provide an impressive return on investment to the shareholders of the company.
TASK 2
Importance of review in developing organisational strategies and business plans
Developing organisational strategies is one of the most prime concerns of an
organisation. Moreover, it is also important for companies to appropriately indulge into
developing effective business plans which assist the company in doing the same.
However, it is highly important that the organisation review its strategies and business
plans as it allows the company to excel in several pointers that are discussed below:
 Reviewing the strategic plans enable the company to analyse the direction which the firm
is operating in. It would also allow the firm in enhancing the scope of improvement
within the company in order to modifying the vision and other objectives which are
realistic and attainable. This is done through appropriate and essential analysis of current
position and strategies of the organisation, along with the desired state of affairs required
by the organisation. Thus, this allows the firm to get an insight on their performances and
presents with opportunity to act accordingly.
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 Another effective importance of reviewing strategies and business plans is that it allows
the organisation to operate with effective operational efficiency. It would allow a firm
like M&S to develop a roadmap of all the processes which are being used by the
company (Kemp, 2018). This, further, would enable the company in modifying its
functionality which suits the purpose for which the strategy and business plans were
formulated at the first place. In addition to this, it enables the company in gaining
effective access to all the required targets and ways of operation to accomplish the same.
Hence, it allows the firm to work towards getting access to these techniques and work
appropriately towards accomplishing the targets.
Evaluation of tools used to review organisational strategies and business plans
There are several tools within the marketplace which are appropriate for a company to
review organisational strategies and business plans. Some of these tools in context with M&S are
discussed as under: SWOT Analysis: This method is a framework which is associated with determining the
strengths, weaknesses, opportunities as well as threats of a strategy as well as business
plan within a company. This framework is very appropriate in context with analysing the
advantage and disadvantage of the company's particular strategy or business plan and the
opportunities and threats associated with the same. Such framework is quite simple in
application and allows easy modifications to be done to reduce threats and weaknesses
and increase strengths and opportunities of a company.
 Porter's Five Forces Analysis: It is an analytical tool which allows to analyse industrial
attractiveness in context with the company which influences the strategies and business
plans of the firm (Moutinho and Vargas-Sanchez, 2018). In context with M&S, it would
help in determine where the company stands in the industry and what factors would be
required in order to reduce the impact of industrial factors and appropriately enhance the
scope of its success.
Below is the determination of the position of M&S in its current market: Buyer's Bargaining Power: Within the retail and clothing market of Singapore,
customers demand effective offerings which are high in quality and available at
affordable pricing. The customer base of the organisation is quite small within the
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country and hence, the bargaining power is high in context with Marks & Spencer.
Moreover, the switching cost within the industry is also quite low, which further
enhances their power. To reduce the same, the firm must focus on building an effective
base of consumers as well as presenting them with innovative offerings. Supplier's Bargaining Power: These entities supply the organisation with raw materials
which a company processes and convert into final offering. As for M&S, the range of
effective suppliers within the industry is quite few and thus, the bargaining power of
supplier is high in context with the company. To reduce the same, M&S must focus on
developing effective supply chain that allows the firm to acquire products at an
appropriate rate. Threat of Substitutes: The firm deals in clothing and food sector. While the clothing has
very substitutes available within the market, there are different types of food items which
could be consumed in place of the ones provided by M&S. Hence, the threat of
substitutes is moderate for the firm. Thus, to reduce the same, the firm must produce
exclusive and patented items that could not be substituted. Threat of New Entrants: It takes a very large amount of investment for a company to
enter clothing and food sector and to compete with existing companies. Thus, this threat
is low within the industry. However, M&S must innovation to further reduce any scope
of threat.
 Competitive Rivalry: There are several companies which are already present within
Singapore such as Cold Storage, and more recently, Sainsbury's, which deal in similar
products and have loyal customer base throughout the country. Hence, this threat is high
for the company within Singapore (Hübner, Kuhn and Wollenburg, 2016). Thus, this
threat is high for M&S. To decrease this, the company must modify its marketing
schemes to attract more customers and establish a loyal consumer base to reduce the
threat.
It is also necessary for the organisation to determine strengths and weaknesses of its
existing strategies within the company. Currently, the strategy of the company focuses on
marketing all its diversified products into “one brand”. Thus, there are several elements with
respect to this strategy which are mentioned below:
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BASIS DESCRIPTION
Strengths
 It allows the firm a unified way of marketing its wide product
portfolio.
 Effective brand image would help the firm in promoting its products
to the customers easily.
Weaknesses
 Diversified products require different types of marketing, which
makes the strategy ineffective.
 One strategy might fail in attracting wider markets.
Opportunities  Enhanced technologies in promotion like AI and Digital Marketing.
 Rise of inclination towards social media
Threats  Enhanced competition from companies like Sainsbury's.
 Rise in effective content marketing.
Thus, it could be said by the above analysis that the firm is risking its products through
adoption of such a marketing strategy. Moreover, the company is required to formulate new
strategies with respect to both products as well as marketing (Albrechts, 2015).
There are several other tools that must be utilised by M&S to review their business plans.
Some of these models with respect to M&S are mentioned below:
 PEST Analysis:
This framework could be used by the company in determining the forces of external
environment and how they influence the organisation and its business plans. Below is a detailed
application of this framework with respect to M&S: Political: This factor undertakes the political condition within an economy. One of the
prime markets of M&S is in the UK. Currently, due to political uncertainty, there has
been several roadblocks and challenges which could be faced by the company with
respect to their new business plan. Thus, in order to appropriately formulate and
implement their plans, the firm is required to analyse the condition and implement those
actions that could withstand the uncertain conditions of the country.
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 Economical: This factor is associated with the economic performance of a nation. Due to
uncertainty revolving around Brexit, the value of pound has seen a decline. This could be
a threat for business plans of the company. Thus, in order to ensure appropriate
implementation of their strategies, the firm must implement aspects which are not too
much costly, for the organisation to ensure appropriate functioning despite inflation and
other degrading economical factor. Social: All the social trends and preferences are covered in this category. Currently,
people are driven towards organisations that use different and innovative marketing
methods, along with production of quality apparels at lower price. Thus, it could be an
opportunity for the firm to develop clothings which are demanded by the masses as well
as adopt marketing methods that are desired by customers.
 Technological: Another factor in this analysis is related to the advancements within
technology that influence working of organisation. With ongoing improvements in the
area of Artificial Intelligence and Automation, the firm is presented with several
opportunity to include within its manufacturing and marketing processes easily.
Thus, it could be said that this analysis is quite effective in analysing the pointers that
influence strategies and business plan of the company.
TASK 3
Strategy options for organisation using modelling tools
It is highly crucial for an organisation to appropriately analyse each and every possible
strategic options which are available with the company. Reason for the same is that it would
guide the firm in adopting the most appropriate pathway in order to attain its organisation's
vision and objectives. However, as an illustration, below are the strategic options available for an
organisation in Singapore, by the name of myCK, which is an effective department store in the
country. These options are discussed below: Market Penetration: Under this, the firm would be dealing its existing products and
services in its existing market. Out of all the options, it has lowest amount of risk as the
firm is only required to appropriately channelise its resources in marketing its offerings
more effectively.
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 Product Development: It engages a company in developing new offerings for its existing
marketplace. This is advantageous in terms of gaining a wider market within the
company. Moreover, the company requires to indulge in appropriate market research for
the same in order to enhance its success criteria effectively. Market Development: In this process, myCK would be offering existing products in new
markets. It would allow the firm in covering wider geographical area within the country.
However, there is a constant threat of competitors present within that market but also
wider scope of profits available for the firm (Coates, 2016).
 Diversification: In this process, the firm would be offering new product in new markets.
Thus, myCK could deal in several other diverse products in clothing or food as per the
demand of its new markets.
Criteria for reviewing potential strategy options
For an organisation, it is crucial in order to appropriately review the potential strategy
options in order to choose the most appropriate one within the company. Below are three
prominent criteria for reviewing the options mentioned above: Suitability: Out of all the options, the most suitable one for the organisation would be
Diversification. Reason for the same is that in order to enhance presence of a company, it
is required by the firm to produce wider variety of products for customers present in other
than its niche market. Acceptability: It depends on the stakeholders of the company to accept the strategic
option which suits their interest best. Below are the three stakeholders and analysis of
their perspective towards the strategy.
▪ Employees: These individuals seek growth and exposure within a company and
thus, Diversification could help them in learning new techniques as per the
expanded markets and could help them cease their career opportunities more
effectively.
▪ Customers: They seek new and innovative products at affordable pricing. If the
company indulges in necessary market research, it would gain knowledge and
resources to product the demanded products more effectively. Thus, in such
context, Diversification fits the criteria for customers to get their desired offerings
(Elbanna, Andrews and Pollanen, 2016).
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▪ Shareholders: The risks associated with Market Development and Diversification
are high and both of them have wider scopes of profitability. However, expansion
in new markets with new offerings as per their taste provides better returns for the
organisation. Thus, Diversification seems to the strategy to be adopted to please
stakeholders.
 Feasibility: It refers to analysis of several required resources and capabilities which are
needed by the company to implement the strategy. It would require human resource for
each strategy and better equipments along with enhanced technological inputs. With
market penetration, the firm would only have to introduce new and better methods of
marketing its offerings. However, the company has effective human resources and
financial capabilities to expand in new markets and indulge in new product development.
Thus, the firm only requires advanced technical resources to implement Diversification as
its strategy.
Thus, out of all the strategies, the most apt one for myCK would be Diversification as it
would allow the firm with the opportunity to research the market and determine the gap in
offerings. Hence, it could succeed in new markets if the products are as per demands in the
market.
TASK 4
Structure of a plan needed to deliver the strategy
M&S, in order to effectively deliver the strategy, must appropriately develop a plan
which would allow the firm to develop the necessary structure required to implement the set plan
of action.
Below is a plan which must be followed by M&S:
 Defining Mission and Vision Statement
The first step for M&S is to define vision and mission statements. Doing so would
provide the company with effective familiarity with their set objectives. Moreover, this would
also help them to formulate the set of plan which makes them capable to achieve their set vision.
 Analysis of Position
Under this step, the firm is required to analyse at what position the company currently
holds in the market and where it wants to see itself after implementation of the strategy. Thus, in
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order to effectively implement diversification, the company must analyse its current industrial
position, along with the standards which it plans to achieve by this strategy.
 Communication to Stakeholders
This is a major step in the planning. M&S must communicate each and every stakeholder
group associated with the firm regarding its plan for implementing Diversification as its strategy.
This would help the company in gaining their support, that would further enhance the scope of
success of business plan of the company.
 Implementation of Strategy
The final step requires the firm to implement Diversification as its strategy. M&S would
be indulging in acquiring human and technical resources, researching marketplace for trends and
working on marketing its new division of clothes as per the need of the customers in Singapore.
 Monitoring the Strategy
The final step of the company is to monitor the implementation of their strategic plan.
M&S could monitor the same using certain processes that are discussed below:
▪ Key Performance Indicators: The first method through which the organisation
could ensure that the strategy is being implemented effectively is KPI. There are
several indicators such as certain performance standards and productivity, which
could be used by M&S to monitor the implementation of the strategy.
▪ Benchmarking: Another method that could be used to monitor the
implementation is benchmarking analysis. Under this, targets could be developed
by the firm which would then be benchmarks to be achieved by the company.
This method would be advantageous to the monitoring of business plan as
deviations could be identified if a certain benchmark is not achieved.
Stakeholder involvement in formulation of plan
In order to appropriately enhance the acceptability of strategy and a better formulation of
the plan, M&S must work towards involving stakeholders in the strategy they wish to implement.
This is a main process within strategic planning and delivery of strategy and there are certain
ways through which this could be achieved. These aspects are mentioned below:
 The first step for the firm would be to identify stakeholder groups involved in the the
strategy. This would help them in further narrowing down the identified stakeholders on
which the impact of stakeholders would be most.
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 The next step needs the firm to communicate with the stakeholders. This requires the
management to explain the strategy and possible benefits to each stakeholder in the
identified groups.
 Lastly, the firm must also focus on acquiring their feedbacks and modifying the strategy
as per their requirements, to ensure their long term engagement and commitment.
Dissemination Process to ensure information and commitment of stakeholders
Dissemination process refers to the procedure undertaken by an organisation in order to
share crucial piece of information with the stakeholders. This operation is highly crucial in order
to ensure that important data is being accessed by these individuals to ensure long-term
commitment of stakeholders. Below is the dissemination process that must be followed by M&S:
Illustration 2: Dissemination Process
(Source: Information Retrieval and Dissemination, 2019)
 The first step relates to identification and acquisition of information from various
identified sources.
 After identification, the firm must indulge in analysis of information which requires the
company to segregate useful information and analyse their validity and reliability.
 Further, the firm must organise the remaining information and communicate the same to
stakeholders, in relation to allowing them to assess the information about strategy which
is planning to be implemented within the firm.
 After the information is assessed, the next step calls for acquisition of feedback from
stakeholders. To attain that, queries are made by stakeholders, which are answered by the
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management and provided them all the necessary answers associated with their queries
about the strategy (Papke-Shields and Boyer-Wright, 2017).
This process limits the scope of any doubts in minds of stakeholders and such
transparency helps in ensuring their long term commitment with the strategies adopted by the
firm.
CONCLUSION
Thus, it is concluded that strategic planning is a crucial and effective process to be
performed by a company in order to implement appropriate and necessary strategies for growth
and sustainability of the firm. It is necessary to identify the relationship between organisational
vision, mission strategy and plans, along with affect of external environment on strategies of a
company. Furthermore, it is highly crucial to evaluate influence of stakeholders' expectations in
order to perform each activity which satisfies their interest. In addition, reviewing development
of organisational strategies and business plans is important and firms must implement certain
tools like SWOT analysis and Porter's Five Forces to enhance the scope of review. Furthermore,
Ansoff's Matrix must be used to determine the strategic direction taken by a company. Lastly, it
is important that a firm develops an effective structure of their business plan along with
stakeholder involvement and a detailed dissemination process to inform stakeholders and ensure
their commitment towards the strategy.
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