University Report: SG7250 Strategic Leadership, M and Co Analysis

This report provides a strategic analysis of M and Co, a UK-based clothing retailer, addressing issues such as slow retail growth, lack of online presence, and product diversification. The report assesses M and Co's business environment, identifies key challenges, and proposes strategic solutions, including enhancing product diversification and store expansion. These options are evaluated using the RACES framework, considering resources, stakeholder acceptance, consistency, effectiveness, and sustainable competitive advantage. The analysis considers market dynamics, competitor reactions, and customer behavior, concluding that product diversification presents a more competitive strategy for M and Co, while store expansion requires significant capital investment. The report emphasizes the importance of strategic leadership in navigating the competitive landscape and achieving sustainable growth.

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Executive summary
In the present era, the companies are dealing in the dynamic business environment that leads to
the several issues that affect the working. This report includes the strategic proposals that are
suggested to the company in order to resolve the issues that are faced by M and co. The findings
of the report shows the different strategic proposals that are formed which include enhancing the
frequency in product diversification and expansion plan with store (considering the stores based
concept). These strategic options are further evaluated with the help of Races framework.

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Contents
Introduction......................................................................................................................................3
Identification of issues and Development of Strategic Proposals...................................................4
Organisation replies to fluctuations in the Macro environment..................................................4
Firm access to the untapped market.............................................................................................4
Options.............................................................................................................................................5
Option 1.......................................................................................................................................5
Option 2.......................................................................................................................................5
RACES framework..........................................................................................................................6
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

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Introduction
The report is prepared in order to comprehend the issues that have been assessed in the previous
assignment related to the company. It also states the strategic proposal for the issues that are
clearly stated in the assessment 1. Thus, this can be said that this assessment is linked with the
previous assessment. This has been found that major issues that are faced by the company
include growth of retail growth that has slowed as the impact of brexit, lack of availability in the
shopping centres, lack of the website and online sites on the region specific and the slow in the
product diversification. The suggestion and justification of the substantive change due to the
substantial element of the strategy is done. The major solutions, which are proposed to the
company, include enhancing the product diversification and opening new stores that leads to
expansion. In addition, the strategic proposal that is presented to the company considered the
issues is evaluated with the use of RACES framework. Further, it also includes the benefits that
are attained by the company if they pursue options that are proposed to the company in the
market.

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Identification of issues and Development of Strategic Proposals
Organisation replies to fluctuations in the Macro environment
The changes in the macro environment occur due to numerous reasons that include decline or
slow growth of the company, lack of availability of shopping centres, decline in product
differentiation and lack of the website and shopping sites. Considering all the issues, the
company is willing to resolve two major issues that are lack of product differentiation as well as
lack of availability of the shopping centers. Thus, the strategic proposal for solutions has been
presented for these two issues. Currently, the companies who deal in the clothing industry are
increasing in numbers due to which the customer’s wants are expanding and they are looking for
the new things in the market (M and Co. 2018). Thus, this means that the customers who are
present in the market are getting attracted towards the different products and leads to the issue
for the company, as they need to expand their product differentiation. In the shopping centres,
the leading brand acquires their place by paying high amount of capital for the place. Thus, this
issue affects the sales as well as the profitability of the company that huddles them when it
comes to dealing in the business environment.
Firm access to the untapped market
The market of UK is vast which is clear with the current population of UK that is around
66,883,133 according to the latest update (Worldometers, 2019). Thus, the market is so wide but
the company is not able to trap the exact market due to the slow growth in the market after the
brexit. In addition to this, the company has lack of the proper and organised website through
which the customers can order the product. The market of UK is untapped, due to which the

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company is not able to reach towards the customers. This affects the sales of the company due to
which it is essential to extend the target market.
Options
Option 1
Enhancing the frequency in product diversification
The rise in competition within the market with the increase in number of diverse products has
brought the changes in the needs of the customers that are required to fulfil in order to survive in
the market. Thus, to resolve the issue in the market it is essential for the company to enhance the
frequency of the product diversification (Baker, 2014). For which the company is looking for the
other firms or wholesaler to whom they can source the products easily. Thus, this will help them
in enhancing the frequency in product diversification because of regular supply from the
wholesalers and different distributors.
Option 2
Expansion plan with store
In the research, this has been found that M and Co. are not able to get the place from where they
can sell their product and services in the market. The rise in the competition has affected the
market adversely because there are many companies who acquire the space in the central stores
from where the customers can easily make the purchase. Thus, this affects the space in the
central stores present at the prime locations. It has been found that to overcome issue, as it is
essential for the company to go with the expansion plan with the store. This can be done by

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opening of own stores of M and Co. which helps them to achieve the success in the market by
enhancing the sales with the revenue (Brown, 2018).
RACES framework
Enhancing the frequency in product diversification
R
Q: Does the company have all the resources that are required?
Ans: Yes, the company have all the resources as there are different suppliers as well as
wholesalers that are present in the market who can form the deal in order to provide the different
products.
A
Q: Will the suggestion be acceptable to stakeholders?
Ans: Yes, the stakeholders of the company will accept due to the rise in the amount of dividend
as well as profit. In addition, the customers of the company will also get the high benefit as they
can avail different services at a time.
C
Q: Is this option remains consistent with the remaining of the strategy?
Ans: Yes, this option will remain consistent with the company strategy, as there is no need to
bring any changes in the strategy (Pisano, 2017).
E
Q: Will the proposal continue effective for achieving the desired aims?
Ans: Yes, this option is effective for M and Co. company to accomplish the desired goals by

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making the product diversified.
S
Q: Will this proposal lead to a sustainable competitive advantage?
Ans: The proposal lead to the sustainable competitive advantage as diversification will help the
company in maintaining the long-term relationship with the suppliers and also with the
customers for their product and services.
Expansion plan with store
R
Q: Does the company have all the resources that are required?
Ans: No, the expansion plan include opening of the store require not only human resource but
also the capital for the expending the amount for the set-up, resources and many other.
A
Q: Will the suggestion be acceptable to stakeholders?
Ans. May be, suggestion for expansion through opening stores might not be accepted because it
include the need of funds that might be taken by issuing the share. Thus, it will share the
ownership. In addition, the customers will be able to get the physical stores (Chernev, 2018).
C
Q: Is this option remains consistent with the remaining of the strategy?
Ans: Yes, the option will remain consistent with the remaining strategy because the company
will offer the products through stores.
E

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Q: Will the proposal continue effective for achieving the desired aims?
Ans: Yes, this proposal is effective in order to accomplish the desired aims that are to expand the
business.
S
Q: Will this proposal lead to a sustainable competitive advantage?
Ans: No, the proposal might not lead to sustainable competitive advantage, as opening of store
require the use of different resources.
The success of the expansion plan for opening the stores can be best viewed through the lens of
the Game theory. When looking towards the potential reaction it is essential to look towards the
reactions of both competitors as well as customers (Frynas and Mellahi, 2015).
For example, If M and co. follow options before their competitors can get the advantage in the
market. If any one of the competitors launches this service then they will not get the effective
position in market but they can improve the same by learning from the competitors.
Furthermore, an If M and Co. follow option, which helps the customers to avail the benefit then
their sales, will increase. In case, if they launch a combined service that is not well received then
there may be slight impact on sales.
If Then If Then
Enhancing the
frequency in product
diversification
Effective
position in
market
If M and co. company
enhancing the frequency in
product diversification
Competitors of the
company get the
effective position in

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market.
Enhancing the
frequency in product
diversification by
expanding opening
stores
Sales will
increase with
effective
position
If M and co. company
introduce enhancing the
frequency in product
diversification by expanding
opening stores but it remains
unsuccessful
Damage the sales and
position in market.
Improve the same by
learning from the
competitors

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Conclusion
In the end, this can be said that M and Co. Company is able to form the effective strategies in
order to deal with the issues that are faced by them in the competitive environment. The report
summarizes the way through which the company make use of its resources and capabilities in
order to resolve the issues within the environment. The major options, which are considered by
the company, are frequency in product diversification and expansion plan with store. These
options are evaluated with the help of the Races Framework as well as with the situation that
helps in analysing the consequences that might happen with the implementation of the options.
This has been found while analysing the options that strategic proposal 1 that is frequency in the
product differentiation is more competition that helps the company not only to enhance the sales
of the company but also to form effective position in the market. In addition to this, second
option of strategic proposal includes expansion of business by opening store. However, the
company need huge amount as a capital to accomplish this strategy.

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References
Baker, M. J. (2014) Marketing strategy and management. London: Palgrave Macmillan.
Brown, H. (2018) M&Co sales rise in ‘complex’ market [Online]. Available from:
https://www.drapersonline.com/news/mco-sales-rise-in-complex-market/7031969.article
[Accessed on 3rd March 2018]
Chernev, A. (2018) Strategic marketing management. Chicago: Cerebellum Press.
Frynas, J.G. and Mellahi, K. (2015) Global strategic management. USA: Oxford University
Press.
M and Co. (2018) Brands [Online]. Available from: https://www.mandco.com/brands/all-
brands.html [Accessed on 3rd March 2018]
Pisano, G.P. (2017) Toward a prescriptive theory of dynamic capabilities: connecting strategic
choice, learning, and competition. Industrial and Corporate Change, 26(5), pp.747-762.
Worldometers (2019) U.K. Population [Online]. Available from:
http://www.worldometers.info/world-population/uk-population/ [Accessed on 3rd March 2018]