Strategic Issues and Analysis: A Report on Marks & Spencer (M&S)

This report provides a comprehensive analysis of Marks & Spencer's (M&S) existing strategy, taking into account both the external and internal environments. It evaluates the pros and cons of their current strategic approach, considering factors such as brand recognition, product diversification, high expense rates, and publicity problems. The report includes a SWOT and PESTLE analysis to identify opportunities and threats, such as expansion in the global market and the impact of Brexit. Furthermore, it critically analyzes how M&S can improve its strategy by addressing contemporary strategic issues and synthesizing different levels of strategy. Recommendations are justified using relevant theories like Porter’s Five Forces and Blue Ocean Strategy, ultimately aiming to enhance M&S's success in the current marketplace. This student-contributed assignment is available on Desklib, a platform offering various study tools and resources for students.

GLOBAL STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION................................................................................................................................3
TASK....................................................................................................................................................3
The existing strategy of chosen company and taking the External and Internal environments into
account. State the pros and cons of their current strategy...........................................................3
analyse how the company can improve on their strategy. What changes in their strategies and
plans would be recommended by you that could make them more successful in the marketplace
in the current environment?........................................................................................................8
Different contemporary strategic issues......................................................................................9
CONCLUSION..................................................................................................................................10
REFERENCES.....................................................................................................................................1

INTRODUCTION
A global strategic management states that the companies should operate in a mixed set of
economies to build up a business strategy that compasses them all. In other words the business
goals should reflect the growth rate and the potential of the market that the economies contain but
also stay aligned with the vision of the corporate. This strategic management covers three areas
which is global, international and multinational. Theses three regions refers to the strategies which
are basically designed to help an organisation in achieving its aim of international expansion.
Global strategic administration concept has come out from a aggregate of a globalisation and
its implications on the business firm throughout the world. It consisted of various factors such as
mix set of economies where techniques are designed by using the agency in order to reap the goals
of the enterprise with the aid of knowing the market potential. A international approach assists a
enterprise situation in getting the diverse Genius pool that harness the agency by means of
leveraging strengths which can be occur when one of a kind humans work together. A business
corporation is able to compete with the better and higher opponents in an open market having a
strong and growing presence in the economies. Globalisation has provide the agencies high quality
use of science and digitisation also impacted the world. The groups in distinctive international
locations have exceptional administration patterns which is required to attain the normal
commercial enterprise dreams in order to grant the conducive environment (Newburry, Deephouse,
and Gardberg, 2019). The agency adopted the price effectiveness strategies that are extra low cost
which enable in exploiting the possibilities such as talent mobility, workplace relocation,
manufacturing set ups, returned office operations and so on.
The company chosen in this report is marks and Spencer, which is a British multinational
retailer. This company was founded and established in 1884 by Michael marks and Thomas
Spencer. Across UK, m&s have almost about 959 stores. They serve worldwide and they been listed
on the London stock exchange. This respective report is prepared on the strategies used by marks
and Spencer and how they can improve it.
TASK
The existing strategy of chosen company and taking the External and Internal environments
into account. State the pros and cons of their current strategy.
EXISTING STRATEGY OF M&S
Marks and Spencer have launched plan A in which they setted more then 100 commitments

which they have to achieve in 5 years or so. With the help of the plan A currently m&s is working
with the customers and suppliers to overcome the challenges like the climatic change, reduce waste,
usage of more and more sustainable raw materials, trade ethically, and assist the customers to lead a
healthy lifestyle. one of the commitment in the plan a is to focus on the fair trading. There were
many campaigns launched by the m&s company like forever fish, big beach clean up, shwopping
etc. these campaigns has contributed in helping in the betterment of the external environment
(Bindra, Parameswar, and Dhir, 2019.). There are some strategic drivers that are operated via the
company which are mentioned as under:
• Differentiated brands: Tesco has adopted the method to provide their pleasant services to
the clients so that their trip can be enhanced and make them loyal to the company.
Therefore, Tesco offers wonderful satisfactory merchandise to the clients at the less
expensive prices and additionally supply them special gives that make the corporation
manufacturer differentiate from its competitors. They supply products with brand assurance
with the aid of placing their very own label on the products which offers a motive to the
customers to buy their products.
• Reduce running cost: The corporation uses the electricity efficient bulb to limit the
working cost and additionally work in partnership with the supplier to reduce the price of
the material. The agency has effective logistics and distribution via having collaboration
with them so that its merchandise is reachable to customers. Therefore, the furnish chain of
the company assists in reducing the cost and accessing the merchandise to the customers.
The distribution of the goods and meals by means of the business enterprise is actually
tremendous and also has dealer partners that approve the corporation in maintaining massive
savings.
• Generate cash from commercial enterprise operations: Tesco offers its clients their
excellent offerings so that it can enhance their satisfaction level. This will help in growing
the cash from the business. The enterprise can generate money by way of enhancing the
profitability and most excellent use of working capital. An organisation can reduce the stick
preserving and power benefits of working capital with higher forecasting. A focus has been
given upon the capital discipline with the aid of a business difficulty in order to improve free
money flow. The organization has set the obstacle fees for the allocation of the capital
through emphasising on the payback duration and maximising the returns.
• Maximise the mix: Tesco ensures the high-quality delivery of the offerings to the customers
such as the corporation have huge stores in sq. Toes which create difficulty to the clients on
buying products. For this, the enterprise took out retail areas to create rooms for tenants such

as boots and KFC. This helps the organisation in getting the extra income and attracts the
clients to purchase their products. This increases the sale and profit through investing in the
new areas for the organization and additionally ensures sustainability.
• Maximise value from property: Tesco has a property portfolio which includes the freehold
and lease preserve assets. The corporation seems for the opportunities to use these properties
for future hire which make the income bigger for the company. The employer arranges for
the house in its stores, department stores or car parks which help in enhancing their sale
awareness and offers for the customers. An organization is also exploring the opportunities
by means of working with the developer in order to build residential homes alongside the
stores.
• Innovation: Tesco makes innovation with the retailing thing and makes the PayQwiq digital
pockets and makes the checkout process easy for the customers. The organization has
accurate collaboration with the suppliers that build self assurance in them and encourage
them to make contributions for the innovation (Gileva, and et. Al, 2021).
SWOT ANALYSIS
STRENGTHS
 brand recognition – m&s have created a good name in the retail market and Irish apparel of
themselves. Which acts a strength for the company.
 Product diversification – begging as an essential player in the apparel industry, the
company m&s has developed and introduced many new products in the market such as
fruits, vegetables etc.
 success in retail – there are numerous retail outlets in the market, that people frequent quite
often.
 Low Operating Costs: Marks and Spencer invest in operations to acquire bargaining and
negotiation advantage. It reduces operating prices for excessive economies of scale and
always improves the effectivity of the company (Rudaya, 2019).
WEAKNESS
 high expense rate - because of the different supply chains, namely, process of production
which lessens the number of customers as well as sales of the company.
 publicity problems – the m&s has got the positive feedbacks as well as they have build up
an strong brand image in the Irish and the global markets. But they were not successful in

attracting the young customer base who perceive m&s as old fashioned. The company has
still didn't taken the initiative regarding this.
OPPORTUNITIES
 expansion in the global market – m&s should take an initiative for the exposure in new
markets. They have an opportunity to combine with the new organisations and expands their
supply chain and gather new and more customers.
 Attractive to the new customers - introducing the segmentation into market will assist
m&s in selling their products to more number of customers (Rêgo, and et. Al, 2021).
THREATS
 unsuccessful in building up the competitive advantage – the present competition rates in
the retail as well as the apparel industry is raising very high.
 unable to utilize the technological advantages - the inability to utilize the advanced
technological benefit and introduce the effective digital solutions for the betterment of the
supply chain.
PESTLE ANALYSIS
POLITICAL
 free trade – this allows m&s to import the foreign products to sell in their own stores at low
and reasonable prices while keeping the profit margin in the mind. But the decision of UK
to quit the European union might impact this.
 Brexit – the decision of UK for leaving the European union will highly impact the
operations of m&s. This will result in the loss of many free trade policies with the European
suppliers, resulting in the high value of the product for the customers (Fuertes, and et. Al,
2020).
ECONOMICAL
 rivals of marks and Spencer - the new rivals in the market are stealing the market share
from the known and big brands like marks and Spencer. They offer the customers same
product but on low prices, which attracts more and more customers . In 1999 m&s decided
to switch to foreign suppliers, which was unsuccessful because of these discount rivals.
SOCIAL
 non trendy – m&s is now a well known name in the market between all the generation.
This strong reputation also have its consequences. As the market and trend is dynamic, it

keeps on changing, which will make m&s a non trendy brand for the customers, especially
the young generations.
 Ready meal sector - there is an increase in the ready meal sector in the market. This new
sector is a big opportunity for many food stores like marks and Spencer . m&s can rule over
this industry (Ramaru, Garg, and Chakraborty, 2022).
TECHNOLOGICAL
 check on self – this is one of the newest and trendiest option in the retail industry to self
checkout. Marks and Spencer have already implemented the self service checkout systems at
many of their stores.
 Digital Shopping - another trend is online shopping. m&s have already a strong presence
digitally. They offer almost every product like clothing, home stuffs and many more
digitally. They have switched up from the traditional approach to digital approach.
LEGAL
 legislations – every country have its different changing laws and policies. m&s regularly
organise the session on health, which helps them in being updated the currents laws and
legislations
ENVIRONMENTAL
 sustainability – to maintain that brand reputation, m&s have decided to become more
sustainable retailer. They will try to reduce the carbon emission occurring from the
manufacturing process and the deforestation fir the farming land.
 Fair trade – the small business who are getting the advantages from fair trade. They starts
to do more and more sustainable business practices then other big firms. In relation to the
marks and Spencer, the decision to sell the fair trade products also had an environmental
advantage (Andersen, and et. Al, 2019).
PROS AND CONS OF EXISTING STRATEGY
the strategy which marks and Spencer have applied on the company have its pros and cons
which is :-
PROS – this strategy will help in saving the environment, reducing the harmful activities, produce
good quality product. This will also result in attracting more and more customers towards the
company.
CONS – implementing this strategy will take more amount of money and time. Launching different

campaigns will cost a lot (Shaulska, and et. Al, 2021.).
analyse how the company can improve on their strategy. What changes in their strategies and
plans would be recommended by you that could make them more successful in the
marketplace in the current environment?
It is very competitive environment for marks and Spencer to operate in and also there are
several factors which can cause impact to the company in the external environment. As they
operating in various sections for instance like food, cloths, home and beauty items they have to face
with many other rivals. In technological, social and economic factors, marks and spencer is very
delicate. The core values of M&S is quality, affordability and service were under the attack from its
rivals. Other Retailers such as Next, and Burton-offers the customers with many fashionable as well
as trendier designs with good value. The supply chain of food such as Tesco, and Sainsbury have
begin to supply frozen as well as ready made food products. M&S have gone through many barriers
and challenges, but they doesn't changed themsleves to be competitive, this result in M&S losing
thier profits and market share (M&S Press Releases 1999). to regain market share and dominance,
marks and Spencer needs to invest (Nayan, Nayan, and Ghosh, 2019). Though M&S takes on the
larger market share, they still have to suffer in profits, which implies weakness in a rather
competitive surroundings of retail business. Their main vision is to give right to quality food and
clothes. The rise in the price of the food and fuel has impacted on the disposable income of the
consumers, which results into weaker demand for non-food products, M&S is reacting to this trend
of cutting prices this is having a serious impact on their sales. The techniques have been
recommended via the porters five forces model in order to achieve the aggressive benefit which are
as under:
• Competition in the industry: It refers to the rivals that present in the enterprise with the
quantity of products and offerings which they provide to the customers. In relation to marks
and spencer, there are many rivals of the agency such as Sainsbury’s, Asda, Morrisons etc.
Which supply greater completion to the organisation as there is high demand of the simple
commodities in the marks. Therefore, the business enterprise have strong provide chain and
logistics community that assist the employer in accomplishing the goods to the customers.
• Threat of new entrant: The electricity of the company can be have an effect on via the new
entrant however m&s is the properly recognized manufacturer so it is impossible for the
new entrant to enter into the retail market as it require a massive investment and not able to
compete the company. A new entrant will locate difficulty providing products on reductions

and having access to the distributional channel and furnish chain. Thus, the danger of the
new entrant is low.
• Power of supplier: This refers to the value of the uncooked cloth for the items and services
that are sold by the dealer to the company. In context to m&s, the supplier have low
bargaining power as the employer have many dealer from which it buys inputs. So when the
technique of the inputs upward shove by using the dealer so Tesco have choice to change for
the different suppliers as the negotiation electricity is in the hand of the company.
• Power of buyers: It refers to the energy of negotiation for the lower procedure and higher
deal by way of the customers. In relation to m&s, there is excessive bargaining electricity of
the clients as they can without problems swap for the other company’s products when they
are not satisfies with the charge of the products. Therefore, the business enterprise can is
required to undertake differentiation method in order to attract the customers.
• Threat of substitute products: There is minimum chance for the substitute of the
merchandise as the merchandise of m&s have spherical yr demand and get replenished into
the stores. M&s presents its clients greatest merchandise line which offers it an top hand in
market (Adoli, and Kilika, 2020).
Different contemporary strategic issues
There are extraordinary cutting-edge strategic issues which impact the operations of the
enterprise organisation that enables it to reap its mission. Following are the problems which are as
under:
Technology: It has come to be a strategic issue as an organisation has to make environmental
scanning for the new improvement in order to gain competitions. As the environment gets
exchanged so the enterprise continuously makes innovation so that it can have an impact on the
clients and encourage them to buy their products. A commercial enterprise subject makes
enhancement in their merchandise and services stakeholders such as customers, suppliers,
distributors that have a wonderful influence on the innovation because they obtain from the
progressive products. Therefore, a market lookup is conducted by using an employer in order to
reap the new product thoughts so that they would be able to introduce a new product. M&s
additionally makes market lookup in order to carry revolutionary products through knowing the
preferences of the clients and existing technological know-how used with the aid of the competitors.

Environment: It is considered as a problem due to its changing nature therefore, the manager has to
display the environment in order to respond to the rapid changes. There are various elements such
as political leaders, technology, legal guidelines and guidelines and international conditions,
shoppers that are modifications unexpectedly and affect the enterprise organisation. When the
corporation is not capable of screening the environment, the desires of the organisations do not
align with the preferences of the customers which negatively have an effect on the company.
Uncertainty generally have an effect on the business enterprise because supervisors are not capable
to predict where and how the change will show up such as the covid 19 pandemic that deeply has an
impact on the all organisation (Carayannis, Ilinova, and Cherepovitsyn, , 2021.).
Politics: An organisation is impacted with the aid of the politics which is viewed as power or
authority. It is an irrational behaviour between humans at the place of job in order to take the
advantages that are beyond their control. It leads to the many issues such as it decreases the
ordinary productiveness of the organization and does not longer function well. This also smashes
the atmosphere of the organisation and brings adjustments in the attitude of the employees which
influences the organization adversely.
CONCLUSION
In conclusion, it has been stated that globalisation business management enables the agency
to discover the possibilities and take their benefits in order to make the enterprise successful. The
record has mentioned the techniques that have been adopted by m&s which make its commercial
enterprise successful and furnish earnings to the organisation. It has also discussed the strength,
weaknesses, possibilities and threat of m&s which allows it to be maintained in the competition.
Further, it explained the elements of the exterior environment such as political, social,
technological, not pricey etc. Moreover, the record has discussed the benefits and downsides of the
method that has been adopted by means of the company. The advice has also been supplied and
shown the one of a kind modern-day issues that are confronted through the enterprises nowadays.

REFERENCES
Books and journal
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