Strategic Choices for Mark and Spencer in the United Kingdom

This report provides a strategic management analysis of Mark and Spencer, focusing on its operations in the United Kingdom. It begins with an executive summary outlining the key aspects of strategic management, including the formulation and execution of goals. The report then delves into internal and external analysis using tools like PESTLE and SWOT to assess the environment. It explores the development and evaluation of strategic choices, particularly focusing on Porter's generic strategies, with an emphasis on the differentiation strategy. The report suggests recommendations for strategic choices, considering the limitations of the differentiation strategy, and concludes by emphasizing the importance of differentiation for Mark and Spencer's success in the UK retail market. The report also includes a table of contents, illustration index and references to support the analysis.

STRATEGIC MANAGEMENT

EXECUTIVE SUMMARY
Strategic management associates in the formulation and execution of major goals and
initiatives. These steps are taken by a top management of firm. It also provides views regarding
resources of organization. It also explains the internal and external environments which greatly help
the organization to design marketing strategies for better competitive advantages. Porter generic
strategies also provides brief introduction about the cost leadership, differentiation, focus and
differentiation focus strategies which help Mark and Spencer to select its specific approach in the
United Kingdom. Mainly, differentiation method also supports organization to make its strategical
planning in the UK. These approach also suit on this corporation due to development of innovative,
as well as low cost manufacturing of products in country. So differentiation method contribute
effective role for Mark and Spencer to earn better profit in the United Kingdom. It also aids the firm
to develop optimistic marketing strategies for promotion and select pricing strategies in the UK.
Recommendations of this approach also are helping organization to implement this method. In
addition, external and internal analysis is also aiding the firm to design its strategies in the retail
market. Suggestion of differentiation porter generic strategy also reduce time of implementation of
this approach in the Mark and Spencer.

Table of Contents
Executive Summary .............................................................................................................................2
Introduction..........................................................................................................................................5
A. Explain the internal and external analysis of organization....................................................5
B. Describe the development of strategic choices......................................................................7
C. Explain the evaluation of strategic choices............................................................................8
D. Suggest the recommendations for strategies choices.............................................................9
Conclusion..........................................................................................................................................10
References..........................................................................................................................................12

Illustration Index
Illustration 1: Porter genric strategy.....................................................................................................8

INTRODUCTION
The present report introduces internal and external factors for Mark and Spencer to make
better strategies in the UK. It also represents development and evaluation of strategic choices for
the organization (Duffy, 2000). It suggests recommendations to improve them in corporation
A. Explain the internal and external analysis of organization
There are many model and tools for improving improve strategic management of Mark and
Spencer in the United Kingdom.
Strategic Purpose
It is optimistic approach to complete objectives and goal of firm in retail market. It also
helps the organization to effective use of social media to promote products (Hill, Jones and
Schilling, 2014). In addition, it aids the corporation to define strategic parameters like target
audience, selection technologies as well as market segment which contribute effectively in earning
profit in the market.
External Analysis (PESTLE Model)
This tool also helps the Mark and Spencer to find out external impact of government of
United Kingdom with help of strategic management.
Political Factors- Political factors also provide support to the organization by providing lower
corporate tax from 30 to 28 percent in the UK (Hitt, Ireland and Hoskisson, 2012).
Economic Factors- It also supports the Mark and Spencer in Britain. Currently economy of UK is
running on optimistic mode which is providing effective opportunities to the firm for further
investment.
Social Factors- It is also good for the firm in the Britain because income and requirement of people
is higher as comparison to other nations.
Technological factors- In the urban area, government of UK provides optimistic infrastructure
through better technological equipment as comparison to rural field which is affecting the
organization to promote its products (Wheelen and Hunger, 2011).
Legal Factors- These factors also affect the strategic management of Mark and Spencer by
increasing expenses like following health care act for employees, salary rule as well as regulations.
Environmental Factors- It supports enterprise because organization does not manufacture any type

of unhealthy products for consumers in the United Kingdom
Porter Analysis
It is used to analyse level of competition in the market.
Threat of new entrants- It is also high for Mark and Spencer. Many other firms are entering into
this area to earn profit (Eden and Ackermann, 2013).
Bargaining power of suppliers and Consumers- Bargaining power of vendors are not high because
there are many buyers in the market. On the other side, negotiation power of customers is very
high due to existence of many retail companies to sell its materials at lower cost in the UK.
Internal Rivalry- It is very high for Mark and Spencer due to tough competition. Organization is
applying huge efforts in attracting people by giving various offers in the UK (Cafferky, 2005).
Threat of Substitutes- Currently, it is low in retail market due to optimistic economy of UK. So
preference of consumers and cost of products is not changed in the Britain.
Strategic Capability analysis
Threshold Resources – It is process to compete and sell more products in the retail industry. It is
necessary task for the firm to survive in retail sector of UK.
Distinctive resources- It helps Mark and Spencer to make innovation in new products and maintain
the organizational architecture and reputation in the market (Boyd and et.al., 2012).
Internal analysis
SWOT analysis also helps Mark and Spencer to make better strategies to earn better profit in the
retail market.
Strength Weakness
 High recognition
 Wide variety products
 High brand value
 Manual working enhances cost
 Conflicts between management and
employees

 Large Number stores in UK
Opportunities Threats
 Globalization of the firm in maximum
nations (Keupp, Palmié and Gassmann,
2012).
 Firm can also enter into the finance
field due to strong financial position in
the market.
 Increasing wages of employees
 High competition in the retail market
B. Describe the development of strategic choices
Organization can select porter generic strategy for developing strategic choices in United
Kingdom. This tool can be utilized to earn good profitability by reducing cost of product and
services in the retail sector of UK. This way, corporation can get help to sustain in the firm. In
addition, it can also achieve competitive advantage to increase market share in the retail industry of
United Kingdom (Priem, Li and Carr, 2012). Mainly, it is divided into four parts which is stated
below the diagram.
(Source: Doole and Lowe, 2010)
 Cost leadership- In this process, organization can manufacture and design its product and
services in low cost by utilizing concept of economy of scale, effective technology as well
as using the best raw material in the United Kingdom. Further, organization can also search
many opportunities to give cost advantages to consumers in the nation Doole and Lowe,
2010). This way, the company can achieve cost leadership in retail industry which help them
Illustration 1: Porter genric strategy

to survive for long time in this sector. In addition, organization can get profits from the
market by giving low cost services to consumers in the United Kingdom.
 Differentiation- In this method, organization can include attractive products and services to
render better facilities for the customers as per requirement of them in the UK. These
commodities should contain features like better functionality, best quality and durability
(Duffy, 2000). So these things can also help the firm to increase its brand image in the retail
market of Britain. Corporation can create better positioning in consumers mind which will
directly increase its market share in retail industry of United Kingdom.
 Focus strategy- Organization can also adopt focus strategies to concentrate on the niche
market by analysing market dynamics and requirement of consumers in the nation. This
strategy also believes in low cost products and services in the UK (MacIntosh and Maclean,
2014). This method is appropriate because they are covering only limited market segment.
Further, they can build higher brand loyalty by providing their services at low prises in the
retail market of United Kingdom. This process can also help enterprise to attract consumers
in the country. Organization can increase market share of niche market which will help them
to earn more revenues by selling its more product and services in the UK (Eden, and
Ackermann, 2013).
 Differentiation Focus- It is also another variant of focus strategy. It is combination of focus
and differentiation strategies. Organization can use both features to get competitive
advantages in the market Corporation can also add some extra value to increase sales of
product and services in the niche segment. Further, enterprise can reduce prices of product
and services in the United Kingdom. This way, firm can become market leader with the help
of these strategies (Bettis and et.al., 2015). As a result, enterprise can generate more profit
by increasing its revenues in the retail sector
C. Explain the evaluation of strategic choices
Mark and Spencer can use differentiation porter generic approach for strategic management
in the United Kingdom. It can be proved beneficial to earn optimistic income for firm in the nation.
There is also reason to utilize this strategy in the country. Organization can provide higher quality of
products in better range within market. This approach can also help the firm to attract every type of
people on basis of income, age, as well as gender in the nation (Stonehouse and et. al., 2007). So
organization can cover large segment of the consumers in the United Kingdom As a result, Mark
and Spencer can enhance its market share with help of differentiation strategies in the country. This
method can also be increased selling of products and services by covering large amount of people in
the firm (Hill, Jones and Schilling, 2014). This way, Corporation can produce more income by

following these activities in the united Kingdom. Organization also can produce more innovative
commodities to attract the more customer by using effective technology in the market. This process
can also help to increase market loyalty towards consumers in the nation. This way, Mark and
Spencer can also attract more people in its store by development of new product. Differentiation
strategies also emphasize on the market research to find out consumer needs, trend as well as
requirement in the UK (Wheelen and Hunger, 2011). So organization can get huge help of
manufacture the new material in the nation. This approach can also aid the Mark and Spencer to
enhance sales of product and services in the Britain. It can also contribute effective role for
enterprise to build optimistic trust towards customers in the country. There is also good advantages
for firm by utilizing differentiation strategies in Britain (Gee, 2013). Mark and Spencer can get
effective help to design marketing activities in the nation. This method can aid the firm to choose
better strategies to advertise its product and services for consumer in the country. Effective
promotion plan also contribute effective role to create optimistic awareness regarding commodities
of firm in the retail industry (Eden and Ackermann, 2013). This approach also help the firm to
increase its sales by providing various offers to consumers in the UK. It also emphasizes mark and
Spencer to launch various type of schemes such as club card member ship card as well as discount
offer on the particular season like Christmas. These thing can also aid the firm to become loyal and
regular consumer. This way, organization can get huge help to enhance its sales in retail market of
Britain. By using these strategies, Mark and Spencer can beat its competitors like ASDA, Tesco as
well as Sainsbury in appropriate manner in retail market of United Kingdom (Bettis and et.al.,
2015). Differentiation strategies can also help the firm to provide effective sustainability in this
sector. This way, organization can stay for long time in the market.
D. Suggest the recommendations for strategies choices
Mark and Spencer can use differentiation porter generic strategies to make its effective
strategies in the retail industry. There is also some limitation which can affect performance of firm
in the market of United Kingdom (Boyd and et.al., 2012). So necessary recommendations are
necessary to implement this approach in the Mark and Spencer. It is stated below the paragraph.
Limitation of differentiation Strategies
There are many limitations of this strategies in the market which creates bad impact on the
firm. Generally strategies of mark and Spencer can be easily copied by its rivals organization which
produces problems regarding earning profit in the market. Differentiation strategy implementation
process is critical procedure in enterprise. Mainly, it can take years to execute these strategies in the
firm. In addition, it consumes so much money of corporation (Keupp, Palmié and Gassmann,
2012). This approach can not be appropriate for niche segments due to costly implementation in the

firm premises. Differentiation strategies can also take time to make good brand image in retail
market of United Kingdom. During this time, consumer preference, taste, lifestyle and requirement
can be changed in this industry. So it can be so risky process to implement differentiation porter
generic strategy in the firm. This process can also increase the cost of products due to high inflation
which create loss in profits (Priem, Li and Carr, 2012). Company can also faces problem regarding
price and quality by using this method. As a result, Mark and Spencer can be unable to maintain
balance between price and quality due to high inflation rate which can scarifies product durability in
the United Kingdom.
Recommendations for Improvement
Mark and Spencer can use many suggestion to improve this approach. These things can give
various benefits to organization in the United Kingdom.
 Organization can follow patent process for its products after development of new
commodities in the UK. This way, Mark and Spencer can earn better profit by selling these
services in the nation (Duffy, 2000).
 Corporation can recruit and take suggestions from many marketing experts to implement
this process very fast. So management of firm can get effective information to understand
dynamic needs and requirements of consumers. These type process can greatly help the firm
to changes its strategies as per time in retail market (Eden and Ackermann, 2013). As result,
it can directly reduce risk in market which can save monetary funds in the organization.
 Mark and Spencer can also utilize the optimization techniques which directly help the to
reduce unnecessary expenses during the implementation of differentiation strategy in the
United Kingdom (Stonehouse and et. al., 2007).
 Mark and Spencer can also take suggestions from economic and financial experts. This
approach can greatly help firm to develop differentiation strategies in the nation. Firm can
also reduce its risk regarding external and internal factors (Sedlak, 2013).
CONCLUSION
From the report, it is found that PESTLE, Porter as well as SWOT analysis help the firm to
make effective strategies for Mark and Spencer. Differentiation porter generic approach also
contribute effective role to define strategic choices in the United Kingdom. It can be concluded that
recommendations of this plan greatly help firm to implementation of this strategy in the nation.