Strategic Analysis of M&S: Challenges, and Growth Strategies

This report provides a comprehensive analysis of Marks & Spencer's (M&S) organizational strategy, focusing on its operations within the UK market. It begins with an introduction to organizational strategy and its importance, followed by an examination of the external environment using PESTEL analysis, highlighting political, economic, social, technological, legal, and environmental factors impacting the company. The report then delves into an internal analysis using SWOT analysis, assessing M&S's strengths, weaknesses, opportunities, and threats. A competitive analysis evaluates the competitive landscape, identifying key competitors in the food and clothing industries. Finally, the report explores strategic options and directions for future growth, employing the Ansoff Matrix to examine market penetration and product development strategies. The report concludes with a summary of the key findings and recommendations for M&S's future growth and success in both the UK and international markets. This report is available on Desklib, a platform that provides AI-based study tools for students.

Organisational
Strategy

Table of Contents
Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Key challenges that company is facing in the external environment of UK..........................1
TASK 2............................................................................................................................................3
Analyse the internal business situation and resources in the market of UK..........................3
TASK 1............................................................................................................................................4
Analyse the competitive environment for the company in UK..............................................4
TASK3.............................................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Organizational strategy creates vision and direction to the whole organization that helps
in understanding the internal and external factors of the market. It is very important for the
people working within an organization to now the goals and objectives of the organization that
have to achieve. A business strategy provides vision and let people know what they have to do in
order to fulfil those visions of the company. This report includes information about M&S,
company severs 13 million people every year across the UK. The company deals with food,
clothing & home and other retail business that are focused on developing products and services
in their target market. In this report various topics to be covered such as, external factors that
become challenge for the company, internal business situation and resources of the company.
Furthermore, competitive analysis in the environment of UK for the company. at last the
strategic options and direction company can pursue for the future growth of the company.
TASK 1
Key challenges that company is facing in the external environment of UK.
The external factors refers to the all the elements of the markets that have an impact on
the performance of the company. There are various factors that can be a challenge for the
company to understand these factors the PESTEL analysis of M&S is explained below.
 Political factors: These factors refers to the all the changes of government or their policy
that have an impact on the business and decision making of the firm. In the context of
M&S, the company facing many challenges due to the Brexit, where the government of
UK decides to leave the European Union these situation might affect the business of
respective company. UK is also facing the COVID situation and because of the pandemic
situation there is huge loss for the market that also an impact the business of the
respective company. Thus there are many challenges for the M&S because of political
changes and the COVID situation in the UK.
 Economical factors: This includes all the changes in the market and the economy of the
country that have an impact on the business of particular industry. In the terms of M&S,
the company is facing the huge competition from the other brands. The change in the
economy and trends in the market that is affecting the business of the company, there is
various change in the trends in the UK so it is very difficult for the M&S to maintain the
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all changes in the trends. Thus, there are many external economical factors that have an
impact on the business of the firm. To deal with these challenges they needs of make new
marketing strategies for the market.
 Social factors: This factors refers to the different culture and belief of the people in UK.
This factors has huge impact on the business and industry of UK. In the context of M&S
companies facing huge challenge in UK because of different culture follow by
individuals in the country. M&S is facing non trendy challenge in among the young
consumer of the UK that have a trendy choice and preference in food and clothes. That
can become a challenge for the market of M&S. The company is facing social challenges
in UK because of becoming less trendy among the youngsters of UK. To deal with this
challenge company should follow choice and preference of their target market so that
they can attract more customers towards the brand.
 Technological factors: This factor refers to the changes and innovation in the technology
of competitors that can impact the business of particular industry or a company.
technological changes can affect the business and its productivity. in the context of M&S
there are various changes in the food and cloths industry because of Technology using
buy their competitive brands in UK. There is a self checkout services in various stores
that attracts customers towards the stores. It can be a challenge for M&S to become
innovative and follow all the technology trends in the market. it will affect the cost of
production. Customer nowadays focusing on online shopping rather than going for a
super market or shop to purchase clothes or home materials. it could affect the business
of M&S. it is a big challenge for the company to improve its technology and deal with all
technological changes in the market.
 Legal factors: it includes all the government, policies and regulations over the particular
business or Industry that can impact their business. there are various legal factors that
can affect a particular business by their rules and regulations. in the context of M&S there
are many legalization for their food and cloth industry in the UK. That can be a huge
challenge for the company. there is also pandemic situation in the overall world and
because of this situation government change its rules and regulations for many industries.
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 Environmental factor: these factors refer to the rules and regulations of the Government
of UK for protecting the environment. In the context of M&S there are various rules and
regulations of the government. In the context of food and cloth industries that can be if
you selling for the company to deal with regulations to deal with these challenges
companies producing sustainable produce products and making brand image in the
market by their clothing food home products and become sustainable retailer in the
market of UK.
TASK 2
Analyse the internal business situation and resources in the market of UK.
Internal analysis of business situation and resources refers to the all the factors of the
organisation that have impact by the internal sources of the company. to analyse the internal
business situation and resources of M&S below is The detailed examination of SWOT analysis
that can explain the internal factors of the respective company
SWOT analysis:
It refers to the all the factors of internal resources of a company that can impact the
business are helps business to go in the market.
 Strength: in the context of M&S company is well known and well established in the
market that is the biggest strength of the company. that helps its business to grow in the
market. Company is also offering line with the latest industry Trends that helps to
enhance its business. there are also stronger e commerce infrastructure that is beneficial
for the growth of the company is also focusing on Highly Effective corporate social
responsibility. that helps its business to grow in the market they are also focused on
enhancing their consumer experience so that they can increase their customer base UK.
From this strategies company is making use impact on that market and its brand images
also non compatible for their competitors.
 Weakness: In the terms of M&S company is facing many challenges in the market. that
could be a weakness for the company’s performance can we use weakness for the
company is too much relay on the market of UK. that could be a loss for the company
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due to the covid situation countries facing low market and low economy and it could be
weakness for the company to rely on the market of UK. Company also using frequent
product recalls that could be lead them to loss in consumer confidence for their brand and
it will decrease the brand identity of the company.
 Opportunities: in the context of M&S there are very is opportunities for the company in
the market of UK. The company is planning to invest in other countries and expand its
business as well. It could be a great opportunity for the company to make presence in
other countries also. they are also willing to make online presence to boost its market
position and brand identity. they are also reshaping their clothing segment in order to
gain more profit and increase their customer base in industry of UK.
 Threats: in the context of M&S there are various threats for the company in the market
of UK. such as because of high competition level in the market of UK in food sectors that
could affect the business of the company. there are also changing trends in clothing space
for youngsters it is also a threat for the company.
TASK 1
Analyse the competitive environment for the company in UK.
There are competition for market of clothes and food in UK. in the context of MS there are many
competitors in the market of Food Industry and clothes industry that gives a use competition to
the respective company in UK there are many brands that have impact on the use competition of
respective company such as asda, Tesco, next waitrose and partners. MS is multinational retail
which operates in various retail stores but there are many e competitor that can affect the
business due to the pandemic situation in our all world there are many consequences that could
be faced by the workers and employees of MS because MS announced that it was bring forward
to plan cut jobs due to the pandemic situation that could impact the people and the industry as
well so there is also situation of COVID make a huge challenge for the company to run its
business perfectly and make a growth in the market so that to deal with this competitions
company can use various marketing strategies that can help them to make a perfect marketing
strategy to maintain the balance of covid-19 competitors in the market.
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TASK3
The strategic options and directions that company can choose for the future growth both in the
UK or international market.
To understand the options and directions company can choose for the future growth and success
of its growth in the market of UK and also in below is ansoff matrix is used to understand the
situation this matrix is a tool used by the company to analyse and plan their future strategies
what the growth of its company this matrix shows for strategies that can be used to help a firm to
grow and also analyse risk associated with each strategy is described below
 Market penetration: this strategy has the business enterprise to produce new product in
existing market. the aim of this strategy is to expand the market share and increase the
growth of company in the context of M&S company can use this strategy by decreasing
the prices of their pre-existing products in order to attract new customers and gain more
customer base. They can also increase promotion and distribution efforts of company for
their particular product or service. so that they can give more information to customers
about their offerings. company is also can acquire competitors in the same Marketplace
so that they can gain competitive edges in market of UK. Also expand its business on
multinational level so that they can improve their brand identity in international
businesses also.
 Product development: in this strategy company produce a new product or make a
innovation increase existing product and services that helps them to increase profit and
growth in the market. in the context of M&S company can develop new products into
their existing market so that they can attract more customers and make more profit for the
brand. company can also expand its business on multinational level and introduce new
product and services to other countries so that they can increase their customer base and
make a growth in international level. in UK company can analyse the product and
services offered by competitors and make a new product that is better meets the needs of
existing market and give a satisfaction level to the customer and increase their customer
loyalty.
 Market development: in this strategy firm enters in a new market with pre existing
product and services that help them to expand their business in new markets and help
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them to grow and have a stable growth. in the context of M&S company can come into
International market with their product and services. and increase their customer base in
those countries also so create different customer segment in market so that they can
analyse the needs of pre-existing customers in the market for their International growth
they can enter into foreign market for better profitability.
 Diversification: in this situation company enters in New Market with the new product
and service that attracts customers and helps the business to grow. but in this situation
company also face high level of risk of becoming new marketer with new product and
service. in the context of MS they can make a potential strategies for market
segmentation where they can analyse needs and wants of customer and to make a product
according to those needs and fulfil them it will help company to grow in the market.
 MS can choose market development strategies for better growth in National and
international markets.
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CONCLUSION
From the above given information it can be conclude that the organization strategies helps the
business to analyse both internal and external factors and provide the vision to the firm. In this
report the PESTEL analysis of the company helps in analysing all the external challenges. And
the internal analysis helps in making the resources effective for the organization. Ansoff matrix
helps in development of the new strategy for the company so that they can grow in the national
and international market.
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REFERENCES
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