Business Strategy Report: M&S - Strategic Analysis and Planning

This report provides a comprehensive analysis of Mark & Spencer's (M&S) business strategy. It begins with an introduction to business strategy and its importance, followed by an in-depth analysis of M&S's internal and external environments using PESTLE and SWOT techniques. The report then examines the competitive landscape using Porter's Five Forces model, evaluating the industry competition, the threat of new entrants, supplier power, buyer power, and the threat of substitutes. Furthermore, the report outlines a strategic plan based on the environmental analysis, including a strategic management plan with objectives, strategies, and tactics. It also includes an application of the Ansoff Matrix model and a stakeholder analysis to provide a holistic view of the company's strategic direction. The report concludes with a summary of findings and recommendations for improving M&S's business performance.

Business strategy

Indexes and Table
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
1. Define analysis on organisation capabilities with use of PESTLE and SWOT techniques. ...3
SWOT ANALYSIS- .......................................................................................................................5
Competitive environment by using Porter's 5 forces model........................................................7
PART B ...........................................................................................................................................9
Strategic Plan on the environmental analysis..............................................................................9
Strategic management plan........................................................................................................11
Ansoff Matrix Model ................................................................................................................12
Stakeholder Analysis.................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business strategy is defined as core management function that aids to undertake effective
plan of action that guarantees the success to enterprise (Sari, Afifah and Sueb, 2019). Creation of
strategy assist to undertake business activities effectively. In addition to this, business strategy is
the working plan of the entity that aids to accomplish the business vision, aids to prioritise the
objectives, competing successfully and this also make the effective contribution to make the
performance of business appropriate.
The present study is based on the business activities of the Mark & Spencer, this is
private limited enterprise engaged as grocery retailer within UK. It is headquartered in
Westminster, London and mainly this firm engaged in to sell high quality clothing.
Furthermore, this report will undertake internal and external analyse with use of PESTLE
and SWOT techniques. Also, the study will outline analysis of competitive environment with
use of Porter's five forces model. Additionally, strategic plan needs to be undertaken with use of
environment analysis and findings. Moreover, evaluation will be undertaken on different
strategic direction of the enterprise. Lastly, strategic management plan will be formulated with
number of strategies, objectives and tactics that leads to improve business performance.
PART 1
1. Define analysis on organisation capabilities with use of PESTLE and SWOT techniques.
PESTLE analysis is termed out as the framework and tool that helps to monitor the
performance of the enterprise (Bocken, Smeke Morales and Lehner, 2020). This is strategic
management tool that helps to identify, organize, analyse the external factors of the enterprise. It
is the tool that leads to define the impact on the organisation now and in the future course of
action. Thus, outlined as following context as-:
Political- This is defined as those components that has huge impact on the working of the
enterprise. These are the components that shows the level of anticipation by the legal authorities
within the different trades and businesses. The one of the massive political advancement to the

chosen enterprise is free trade policies (Panda, 2019). Due to the Brexit, there are number of the
policies that cannot be applied to the firm. Also, quoted entity is well known for the CSR
initiatives but ineffective clarity of the United Kingdom legal authorities has negative impacts.
Political factors involve in all decision-making process of the company as it involves
government policies related to the corporate sector like taxation policies of company, foreign
policy and all associated policies that influence over company's decision-making process and
growth potential.
Economic- There are number of the factors that directly affects the economy
performance and also have long term effects. Enhancement in rate of inflation can have huge
impact on the way firm price their products and services. This can have the huge impact over the
purchasing power of the customers. Economic factors mainly inclusive with rate of inflation,
interest rate, growth pattern of economic and foreign exchange rate etc. The economy condition
of the UK has fourth ranked (Sulich and Grudziński, 2019). So, this is crucial to put the major
consideration over the state of economy in the short term and long term. Also, current economy
situation within the UK is quite favourable due to low to moderate rate of interest and this can be
termed out as the health sign of the economy. Therefore, it has also been found out that there are
majority of the population within the UK that mainly prefers local retail store rather than
premium commodities of the chosen enterprise (Cubas‐Díaz and Martinez Sedano, 2018). Thus,
store that provide budgeted product and services to the customer’s is the wider threat to chosen
entity. Thus, it can be stated that increased food and prices of fuel has an effect on disposable
income of consumer that leads to weaker demand for non-food products. Also, chosen entity
responding to it by cutting prices and thus have serious effect on sales.
Social- This is termed out as fundamentals that cannot be directly impact the business
and market strategies. Changes in preferences of customers has huge on working of enterprise.
However, the trends in social components can impact the demand of commodities and services.
Sulich and Grudziński, 2019). In addition to this, purchase of the customer can be influenced by
the cultural, social and number of psychological changes within the market. Henceforth, there is
enhancement in trade of more than 10% after credit cards came into the market. Thus, this entity
took the advantage of the opportunities and this allowed customers to pay through credit cards
and this can lead to further increase the sale. Thus, one of major concern of buyer is also
dependent on price, quality and style that attract the customer and also aids to ensure the

sustainability of the enterprise. In current era, new and trendy retail chains pop up every year due
to this competition within the firms tends to rise.
Technology- Continue innovation in the technical advancement assist the firm to operate
efficiently within competitive markets and modern IT system has also enhance the firm
productivity and lowers the cost. In the present scenario, the customers put their major focus on
to prefer the online retailing to in-store purchase (Man, 2016). Also, the enterprise is taking the
various initiatives in terms to have the effective presence in digital medium to take the full
advancement and to enhance the sale of the organization. In addition to this, enterprise needs to
understand the role of technical advancement in undertaking the successful operation of entity.
Also, it can be stated to enhance the sale the chosen firm needs to put their major focus on to
delivering the agile, flexible and simpler customer focused commodities (Cubas‐Díaz and
Martinez Sedano, 2018). Thus, chosen enterprise has already established strong e Commerce
presence that offer almost of the goods from clothing to foodstuffs to home products. This entity
do not deliver food items, unlike some major food stores within UK.
Legal factor- The legislation plays the vital role in undertaking the business activities. In
order to cope up with it, the entity is conducting training sessions to keep employee’s updates
with current laws and legislation (Man, 2016). Additionally, entity needs to address the issues
that can have wide impact on the image of entity. Over the years, chosen entity has been
involved in multiple legal disputes. Thus, legal dispute have made it hard for brand to hold it
existence within market.
Environmental conditions- This entity is considered as to luxury brand due to its highly
concerned environmental effects. Therefore, this enterprise has promoted the term as sustainable
retain industry by undertaking the careful production process. It is entity that has worked on
many areas to remove trans fats, to reduce the use of energy and also promotes the fair value of
the trade practices (Panda, 2019). This entity sell fair trade products. These allows smaller retail
business to incur less cost of production and this enable environment friendly production
techniques.
SWOT ANALYSIS-
It is tool that aids to undertake the internal and external analysis of chosen enterprise.
These are outlined in below context as-:
Strength-

 This enterprise has strong offering in line with latest industry trends.
 It follows high effective Corporate social responsibility to build high brand image.
 Quoted enterprise has string focus on enhancing experience of customer (Sulich and
Grudziński, 2019).
Weakness-
 It is the enterprise that has poor financial performance.
 This has wide reliance on the UK markets in terms to business activities more vulnerable
to market conditions within local country.
 The commodities frequent recalls leads to loss in the confidence of customers.
Opportunities-
 This entity follows online sales to boost its market position and this can aids to
accomplish the future market share.
 It is firm that is taking initiatives towards to reshaping their clothing segments.
 This entity leads to simplifying their operating models.
Threats-
 This is the enterprise that is facing the wide range of the stiff competition within food
sector of the UK.
 Changing in the trends highly affecting the working of the industry in the huge aspect.
VRIO analysis-
It is defined as technique that aids to undertake better evaluation of firm resources that
aids to gain competitive advancement.
Valuable-
 Mark and Spencer group plc reflects the financial resources of chosen entity that are
highly valuable as this assist in investing into external opportunities that increases. It
assist to quoted entity in combating external threats. The chosen enterprise distribution network is valuable resources as this assist in reaching
out to more and more customers. It aids to run higher profitability to the enterprise. This
is the things that ensures to undertake promotional activities that translates within the
sakes as commodities are easily available.
Rare-

 This enterprise has found to rare as this strong financial resources are possesses by few
firms in industry. The employees of the Mark and Spenser are rate as they ate highly trained and skilled.
With help of providing the better compensation and effective working environment the
employees do not leave from enterprise.
Imitable- Distribution network of the Marks and Spenser also not costly to imitate by competition.
This happens because this not legally allowed to imitate the patented commodity.
Therefore, rivalries have to invest the significant amount as they are imitate the similar
distribution system.
Organisation-
 Distribution network of the quoted enterprise is found to be organised as this provides the
sustainable competitive advancement. This kind of the resources are proved to be the
sources of sustained competitive advancement for chosen enterprise.
By application of VRIO analysis this has been identified that financial resources and
distribution network offers the sustained competitive advancement. Lastly, this has been
identified that the cost structure of the chosen firm is also a competitive advantage.
Competitive environment by using Porter's 5 forces model
Porter 5 Forces
Porter 5 Forces is an effective tool to analyse about the strength and weakness of
corporate organisation (Akter and et al., 2016). Analysis of various factors such as competition
in the industry, potential of new entrants in the industry, power of supplier, power of customer
and threat of substitute products. Analysis of all the five factors involved in Porter 5 Forces will
completely brief about the position of M&S as an organisation in retail market across the world
and it will also guide in making suitable market strategies based on the company's strengths and
weaknesses.
Competition in the Industry: M&S carry the consumer base world wide as the company
carry its retail outlets across the globe. The latest statistics about the market share of M&S
specified that the market share of retail sector is more than 32 trillion sterling Pound that clearly
indicate the dominance of this sector at the global level in corporate world (Cubas‐Díaz and

Martinez Sedano, 2018). Huge dominance also resulted into association of big corporates like
Puma, Sainsbury, Tesco and many others that causes to huge competition for the M&S across the
globe. M&S carry the outlets across the globe so the company management not just face
competition from the big retail corporates but the competition also addresses from the regional
level corporates that carry the retail market in specific locations or countries. In-spite of such a
competition for the M&S the retail outlets of the company in more than 400 locations apart from
UK has enabled the management to give the tough competition to all the corporates in retail
sector across the globe. The market dominance of M&S can also be justified with recent revenue
states that specifies that the company could generate more than 10 bn GBP which sufficiently
enabled the company management to deal with such a high level competition in retail market.
This force is high due to high competition in the retail market for the company which also drives
to new organisations in order to enter into the retail sector.
Potential of new entrants in industry: Retail sector is one of such sector that has
witnessed the increasing trend in revenues. Increasing trend of revenue effectively attract to
several new domestic and international companies that also improve the market competition at
both global and regional level for the M&S (Febriyanti, Samopa and Ambarwati, 2019). Apart
from the healthy revenue in retail sector the possibilities of new entrants coming into the market
is not dominating as the retail sector seek high investment for establishing the whole retail set up.
Potential of new entrants can be more dominating at regional level as the investment level is
apparently low as compare to setting up business at global level. So the threat from the new
entrants is mostly engage with M&S in the international market specifically with the regional
entities. Besides the increasing competition from the new entrants this factor of new entrants not
work aggressively as the M&S carry the huge brand name and goodwill that effectively attract
the customer’s even at various regional levels because the people across the globe prefer to use
branded cloths and other retail products that effectively cut the competition from such new
entities.
Power of supplier: M&S deals in retail market and the company management need to
deal with various suppliers of home products, food products and of clothing. Supply chain of
M&S is also huge as the company carry the business across so the management deals with
suppliers at both regional and international level (Fontana, Sastre-Merino and Baca, 2017).
Supplier play the huge role in effective operations of company as supplier assures the sufficient

availability of company's products at all the outlets across the globe. Apart from such a great
involvement of suppliers in company's business the power of supplier is relatively low for the
M&S. As the M&S is a big brand that enable company management to create dominance over
various suppliers of company by providing effective profitability from operations.
Power of customer: Customer’s play the huge role behind the success of company as
customer’s are the ultimate source of profitability for the corporate organisations. M&S initiated
business operations in the year 1884 in UK and today the company carry the world wide retail
outlets because of the great support and acceptance of company's products by customer’s.
Customers are the ultimate source of revenue for corporate organisations which play the great
role behind the sustainability of company's operations (Huang, 2019). All the marketing and
other business strategies of M&S is surrounded only around the target customers and that
effectively justifies the importance of customer’s. Huge involvement of customer’s in business
sustainability and growth specify that the power of customer is high for the business.
Threat of substitute products: Threat of substitute products is always associated with
corporate houses as it put a great impact over acceptance of company's products in the market by
target customer’s and it also reduces the target customer base for corporate organisations (Lim,
Chalmers and Hanlon, 2018). M&S deals in food products, home products and clothing so the
threat of substitute product is relatively high for the company as the company deals in three
segments. Food and home products are more like a sustainable product segments that sustain the
market demand for longer period of time but this factors effectively work in the clothing segment
for M&S. Every day new fashion and trends are coming in the market based on the customer’s
demand and expectations that also influence the company's market share not just at international
level but at regional level as well. Substitute products also impact over sustainability of the
business so the power of substitute products is high.
Porter 5 Forces is an effective tool to analyse about the strength and weaknesses of M&S.
All such forces involved in Porter 5 Forces covers the major business aspects that also guide the
company management to frame the suitable and effective market or business strategies to
achieve better and more effective revenues.

PART B
Strategic Plan on the environmental analysis
Different types of strategic direction
To identify the strategic direction available for the M&S various aspects of Porter's
generic strategies will be analysed.
Porter generic strategical tool is an effective analytical approach for taking competitive
advantage in the market. This model focus over taking competitive advantage in the market by
improving profitability of company in the market. This model guides two approaches to earn
competitive advantage in the market that involve low cost of products and differentiation of
products in the market.
Cost and Price leadership strategy: Cost and price leadership strategy is an effective tool to
improve the profitability of the M&S. Porter generic model specifies two ways to achieve
competitive advantage under cost and price leadership strategy (Varelas and Georgopoulos,
2017). The main aspect of this strategy is to reduce the selling price of the products to attract
more customer base. For reducing the selling price, the company management can either put
efforts to reduce the cost of goods sold so the profitability can be achieved eiter the set standard
mark or even beyond such set standard. In case the cost of goods sold is not reduced then still
company can take competitive advantage by reducing sales prices even the cost of goods sold is
still the same. In such a case M&S can achieve higher sales at the reduced price as compare to
other competitors and generate higher profitability. This strategies of reduced prices are largely
based on reducing selling price and achieve higher profitability.
Differentiation strategy: Differentiation strategy is specified as creating a different image of
company's products in the market. To create a different and unique image in retail market the
management can focus over launching a new product. Management of M&S is launching a
unique product that is stain less shirt and t- short line that will enable the management to
generate specific attention in retail market from target customer’s. Research and development
also conducted for analysing the market suitability for the new clothing line. Effective
marketing tool such as social media marketing, internet, you tube and other brand promotions
will be associated to project the new clothing line of M&S.
Focus strategy: Focus strategy is also an effective tool used in Porter Generic strategies. This

strategy enables the management to focus over the target customer and based on the category
and class of such target customer’s proper marketing str Porter generic strategical tool is an
effective analytical approach for taking competitive advantage in the market. This model focus
over taking competitive advantage in the market by improving profitability of company in the
market. This model guides two approaches to earn competitive advantage in the ategies frame
(Yuliansyah, Gurd and Mohamed, 2017). M&S is a luxury brand that also reflect the target
customers of the company which belongs to upper class and upper middle class so all the
marketing strategies and product line must be based on such target customer’s. This will enable
the management to attract only the target customer’s.
Bowman's strategy clock: Bowman's strategy clock is an effective tool to analyse the company
position in respect to the competition in the market. This tool focus over achieving the
competitive advantage by effective market positioning of company's products. Based on the
price and perceived value this model guided to position the products in the market. To take the
competitive advantage this model specifies various positioning for the company's products in
the market that involve hybrid, low price, differentiation and various other positioning in
market. M&S is a big brand in retail sector and the hybrid strategy of market positioning will be
an effective tool to achieve target customer’s for the company's products. Hybrid is an effective
positioning strategy that involve element of both low and affordable price and also the market
differentiation approach (Zhang, Leng and Zhou, 2020). Low cost indicates towards setting the
affordable price range for products as compare to other competitors in the retail market.
Differentiation involve branding of company's products with innovative advertisements,
initiatives and other ways to create the different image of company in market. Both the factors
sufficiently cope up with taking competitive advantage in the retail market for M&S.
Diversification: Diversification will also be a part of strategies for M&S. The marketing and
positioning of new products line stain less shirt and t-shirt will be well diversified in all the
company's locations. This will also include trading over websites and internet.
Vertical/ Horizontal Integration: Vertical and horizontal integration is also a part of
strategical tool for the M&S. This strategy guided the management to control the supply chain
management for the supply of company's products.

Strategic management plan
Balance Score Card
Balance score card involve vision of the organisation and also involve strategies related
to the market.
Vision:
 Achieve the highest level of profitability
 Provide quality products
 Achieve the highest level of consumer satisfaction
 Dominate retail sector with market share
Strategies
Management of M&S is aiming to plan the suitable market strategies by using Porter 5
Forces model, stakeholder analysis and the Ansoff matrix product / market strategy.
Ansoff Matrix Model
Ansoff Matrix is often call as Product / Market expansion grid. To achieve the higher
growth the management of M&S has prepared the suitable strategies to apply the Ansoff Matrix
Model (Arbogast, Deng and Maumbe, 2017). For effective use of Ansoff Matrix model
management of M&S will be focused over market penetration, product development, market
development and diversification. All such factors will cause to an effective strategy for the M&S
to achieve higher growth in retail market. To entertain and achieve higher growth for the
business the management is planning to launch a new products in stain less shier and t-shirt
clothing line as a part of product development and new clothing line of the company will also be
aggressively work in diversification strategy.
Vision  To achieve higher growth
Mission  Improve market share
 Improve customer satisfaction
 Improve growth potential
Objectives  Attract new customers in existing market
 Expansion of business
 Attract new customer by upgrading product quality